Document:

<PAGE>   1
                                                                   EXHIBIT 10.12

Explanatory Note: Pursuant to Instruction 2 to Item 601 of Regulation S-K, the
Registrant is filing a form of promissory note with the attached Schedule A
setting forth the material details of each promissory note.

                             FORM OF PROMISSORY NOTE

                                                                   $------------

                                                                January 31, 2000

     For value received, __________, a ________ corporation (the "Maker"),
hereby promises to pay to the order of ___________, a _______ corporation (the
"Payee"), in lawful money of the United States, (i) the principal amount of
_______________, or the aggregate unpaid and outstanding principal amount of
this Promissory Note, if less, (ii) accrued and unpaid interest through December
31, 1999 in the amount of ________ and (iii) any additional accrued and unpaid
interest incurred after December 31, 1999, and until the outstanding principal
amount of this Promissory Note shall be paid in full. Interest shall accrue on
the unpaid principal amount at a rate of _____ (__%) per annum. Interest shall
be calculated on the basis of a 360-day year and will be accrued daily for each
day that any principal amount is outstanding under this Promissory Note. The
principal of this Promissory Note as well as all accrued and unpaid interest
shall be payable by Maker upon demand by Payee.

     This Promissory Note and the rights and obligations of Maker and Payee
shall be construed in accordance with and governed by the laws of the State of
New York.

                                                 By:__________________________
                                                 Name:
                                                 Title:

<PAGE>   2

SCHEDULE A

                          BEASLEY BROADCAST GROUP, INC.

                     SCHEDULE OF RELATED PARTY INDEBTEDNESS

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
                                                          OUTSTANDING              RATE OF               ACCRUED INTEREST
LENDER                  BORROWER                          PRINCIPAL                INTEREST              @ 12/31/99
----------------------------------------------------------------------------------------------------------------------------
<S>                    <C>                               <C>                      <C>                   <C>
George G. Beasley       Beasley FM                        $248,965                 9.25%                 $142,915
                        Acquisition Corp.
----------------------------------------------------------------------------------------------------------------------------
George G. Beasley       W & B Media, Inc.                 $434,805                 9.25%                 $163,158
----------------------------------------------------------------------------------------------------------------------------
George G. Beasley       Beasley                           $111,015                 9.25%                 $41,448
                        Broadcasting of
                        Southwest Florida,
                        Inc.
----------------------------------------------------------------------------------------------------------------------------
George G. Beasley       Beasley                           $603,500                 9.25%                 $225,156
                        Broadcasting of
                        Southwest Florida,
                        Inc.
----------------------------------------------------------------------------------------------------------------------------
George G. Beasley       Beasley Radio,                    $70,226                  9.25%                 $6,543
                        Inc.
----------------------------------------------------------------------------------------------------------------------------
George G. Beasley       C S R A                           $1,166,550               9.25%                 $728,016
                        Broadcasters, Inc.
----------------------------------------------------------------------------------------------------------------------------
George G. Beasley       Beasley                           $696,053                 8.0%                  $156,957
                        Communications,
                        Inc.
----------------------------------------------------------------------------------------------------------------------------
George G. Beasley       Beasley                           $608,462                 9.25%                 $139,490
                        Communications,
                        Inc.
----------------------------------------------------------------------------------------------------------------------------
George G. Beasley       Beasley                           $1,087,437               9.25%                 $307,114
                        Broadcasting of
                        Augusta, Inc.
----------------------------------------------------------------------------------------------------------------------------
George G. Beasley       Beasley FM                        $1,500,000               N/A                   N/A
                        Acquisition Corp.
----------------------------------------------------------------------------------------------------------------------------
George G. Beasley       Beasley Radio,                    N/A                      N/A                   $38,537
                        Inc.
----------------------------------------------------------------------------------------------------------------------------
George G. Beasley       C S R A                           N/A                      N/A                   $78,128
                        Broadcasters, Inc.
----------------------------------------------------------------------------------------------------------------------------
Beasley                 Beasley FM                        $1,765,385               7.67%                 $802,277
Broadcasting            Acquisition Corp.
Management Corp.
----------------------------------------------------------------------------------------------------------------------------
Beasley                 Beasley FM                        $496,646                 7.67%                 $190,567
Broadcasting            Acquisition Corp.
Management Corp.
----------------------------------------------------------------------------------------------------------------------------
Beasley                 Beasley FM                        $138,242                 9.25%                 $60,649
Broadcasting            Acquisition Corp.
Management Corp.
----------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>   3

<TABLE>
--------------------------------------------------------------------------------------------------------------
<S>                    <C>                        <C>                      <C>                   <C>
Beasley                 Beasley Radio,             $154,988                 9.25%                 $138,505
Broadcasting            Inc.
Management Corp.
--------------------------------------------------------------------------------------------------------------
Beasley                 C S R A                    $628,629                 9.25%                 $579,091
Broadcasting            Broadcasters, Inc.
Management Corp.
--------------------------------------------------------------------------------------------------------------
Brian E. Beasley        C S R A                    N/A                      N/A                   $6,454
                        Broadcasters, Inc.
--------------------------------------------------------------------------------------------------------------
Beasley                 Beasley                    $16,325                  N/A                   N/A
Broadcasting of         Broadcasting
New Jersey, Inc.        Management Corp.
--------------------------------------------------------------------------------------------------------------
Beasley                 Beasley                    $540,471                 N/A                   N/A
Broadcasting of         Broadcasting of
Coastal Carolina,       Greenville, Inc.
Inc.
--------------------------------------------------------------------------------------------------------------
Beasley FM              B. Caroline                $608,455                 9.25%                 $97,624
Acquisition Corp.       Beasley
--------------------------------------------------------------------------------------------------------------
Beasley FM              B. Caroline                $84,031                  9.25%                 $31,091
Acquisition Corp.       Beasley
--------------------------------------------------------------------------------------------------------------
Beasley                 George G. Beasley          $750                     9.25%                 $524
Broadcasting of
New Jersey, Inc.
--------------------------------------------------------------------------------------------------------------
Beasley                 George G. Beasley          $120,352                 9.25%                 $113,876
Broadcasting of
Eastern North
Carolina,
Incorporated
--------------------------------------------------------------------------------------------------------------
Beasley FM              George G. Beasley          $3,638,657               9.25%                 $336,576
Acquisition Corp.
--------------------------------------------------------------------------------------------------------------
Beasley FM              Bruce G. Beasley           $701,464                 9.25%                 $108,240
Acquisition Corp.
--------------------------------------------------------------------------------------------------------------
Beasley FM              Bruce G. Beasley           $86,864                  9.25%                 $32,140
Acquisition Corp.
--------------------------------------------------------------------------------------------------------------
Beasley FM              Bradley C.                 $848,464                 9.25%                 $110,664
Acquisition Corp.       Beasley
--------------------------------------------------------------------------------------------------------------
Beasley FM              Bradley C.                 $55,373                  9.25%                 $20,489
Acquisition Corp.       Beasley
--------------------------------------------------------------------------------------------------------------
Beasley FM              Brian E. Beasley           $101,096                 9.25%                 $37,406
Acquisition Corp.
--------------------------------------------------------------------------------------------------------------
Beasley FM              Brian E. Beasley           $633,470                 9.25%                 $101,182
Acquisition Corp.
--------------------------------------------------------------------------------------------------------------
Beasley FM              Robert E. Beasley          $582,608                 9.25%                 $94,837
Acquisition Corp.
--------------------------------------------------------------------------------------------------------------
Beasley Radio, Inc.     George G. Beasley          $263,876                 9.25%                 $93,558
--------------------------------------------------------------------------------------------------------------
</TABLE><PAGE>   1
                                                                   EXHIBIT 10.13

                              THE 2000 EQUITY PLAN

                                       OF

                          BEASLEY BROADCAST GROUP, INC.

                  Beasley Broadcast Group, Inc., a Delaware corporation, has
adopted The 2000 Equity Plan of Beasley Broadcast Group, Inc. (the "Plan"),
effective as of the IPO Date (as defined below), for the benefit of its eligible
employees, consultants and directors.

                  The purposes of the Plan are as follows:

                  (1) To provide an additional incentive for directors, key
Employees (as defined below) and consultants to further the growth, development
and financial success of the Company by personally benefiting through the
ownership of Company stock and/or rights which recognize such growth,
development and financial success.

                  (2) To enable the Company to obtain and retain the services of
directors, key Employees and consultants considered essential to the long range
success of the Company by offering them an opportunity to own stock in the
Company and/or rights which will reflect the growth, development and financial
success of the Company.

                                   ARTICLE I.
                                   DEFINITIONS

                  1.1 General. Wherever the following terms are used in the Plan
they shall have the meanings specified below, unless the context clearly
indicates otherwise.

                  1.2 Administrator. "Administrator" shall mean the entity that
conducts the general administration of the Plan as provided in Article X. With
reference to the administration of the Plan with respect to Options granted to
Independent Directors or Independent Director Nominees, the term "Administrator"
shall refer to the Board. With reference to the administration of the Plan with
respect to any other Award, the term "Administrator" shall refer to the
Committee unless the Board has assumed the authority for administration of the
Plan generally as provided in Section 10.2.

                  1.3 Award. "Award" shall mean an Option, a Restricted Stock
award, a Performance Award, a Dividend Equivalents award, a Deferred Stock
award, a Stock Payment award or a Stock Appreciation Right which may be awarded
or granted under the Plan (collectively, "Awards").

                  1.4 Award Agreement. "Award Agreement" shall mean a written
agreement executed by an authorized officer of the Company and the Holder which
shall contain such terms and conditions with respect to an Award as the
Administrator shall determine, consistent with the Plan.
<PAGE>   2
                  1.5  Award Limit. "Award Limit" shall mean five hundred
thousand (500,000) shares of Class A Common Stock, as adjusted pursuant to
Section 11.3 of the Plan.

                  1.6  Board. "Board" shall mean the Board of Directors of the
Company.

                  1.7  Change in Control. "Change in Control" shall mean a
change in ownership or control of the Company effected through either of the
following transactions:

                       (a) any person or related group of persons (other than
                  the Company or a person that directly or indirectly controls,
                  is controlled by, or is under common control with, the
                  Company) directly or indirectly acquires beneficial ownership
                  (within the meaning of Rule 13d-3 under the Exchange Act) of
                  securities possessing more than fifty percent (50%) of the
                  total combined voting power of the Company's outstanding
                  securities pursuant to a tender or exchange offer made
                  directly to the Company's stockholders which the Board does
                  not recommend such stockholders to accept; or

                       (b) there is a change in the composition of the Board
                  over a period of thirty-six (36) consecutive months (or less)
                  such that a majority of the Board members (rounded up to the
                  nearest whole number) ceases, by reason of one or more proxy
                  contests for the election of Board members, to be comprised of
                  individuals who either (i) have been Board members
                  continuously since the beginning of such period or (ii) have
                  been elected or nominated for election as Board members during
                  such period by at least a majority of the Board members
                  described in clause (i) who were still in office at the time
                  such election or nomination was approved by the Board.

                  1.8  Code. "Code" shall mean the Internal Revenue Code of
1986, as amended.

                  1.9  Committee. "Committee" shall mean the Compensation
Committee of the Board, or another committee or subcommittee of the Board,
appointed as provided in Section 11.1.

                  1.10 Class A Common Stock. "Class A Common Stock" shall mean
the Class A Common Stock of the Company, par value $.001 per share, and any
equity security of the Company issued or authorized to be issued in the future,
but excluding any preferred stock and any warrants, options or other rights to
purchase Class A Common Stock. Debt securities of the Company convertible into
Class A Common Stock shall be deemed equity securities of the Company.

                  1.11 Company. "Company" shall mean Beasley Broadcast Group,
Inc., a Delaware corporation.

                  1.12 Corporate Transaction. "Corporate Transaction" shall mean
any of the following stockholder-approved transactions to which the Company is a
party:

                                        2
<PAGE>   3
                       (a) a merger or consolidation in which the Company is not
                  the surviving entity, except for a transaction the principal
                  purpose of which is to change the State in which the Company
                  is incorporated, form a holding company or effect a similar
                  reorganization as to form whereupon the Plan and all Options
                  are assumed by the successor entity;

                       (b) the sale, transfer, exchange or other disposition of
                  all or substantially all of the assets of the Company, in
                  complete liquidation or dissolution of the Company in a
                  transaction not covered by the exceptions to clause (a),
                  above; or

                       (c) any reverse merger in which the Company is the
                  surviving entity but in which securities possessing more than
                  fifty percent (50%) of the total combined voting power of the
                  Company's outstanding securities are transferred or issued to
                  a person or persons different from those who held such
                  securities immediately prior to such merger.

                  1.13 Deferred Stock. "Deferred Stock" shall mean Class A
Common Stock awarded under Article VIII of the Plan.

                  1.14 Director. "Director" shall mean a member of the Board.

                  1.15 Dividend Equivalent. "Dividend Equivalent" shall mean a
right to receive the equivalent value (in cash or Class A Common Stock) of
dividends paid on Class A Common Stock, awarded under Article VIII of the Plan.

                  1.16 Employee. "Employee" shall mean any officer or other
employee (as defined in accordance with Section 3401(c) of the Code) of the
Company, or of any corporation which is a Subsidiary.

                  1.17 Exchange Act. "Exchange Act" shall mean the Securities
Exchange Act of 1934, as amended.

                  1.18 Fair Market Value. "Fair Market Value" of a share of
Class A Common Stock as of a given date shall be (i) the closing price of a
share of Class A Common Stock on the principal exchange on which shares of Class
A Common Stock are then trading, if any (or as reported on any composite index
which includes such principal exchange), on the trading day previous to such
date, or if shares were not traded on the trading day previous to such date,
then on the next preceding date on which a trade occurred, or (ii) if Class A
Common Stock is not traded on an exchange but is quoted on NASDAQ or a successor
quotation system, the mean between the closing representative bid and asked
prices for the Class A Common Stock on the trading day previous to such date as
reported by NASDAQ or such successor quotation system; or (iii) if Class A
Common Stock is not publicly traded on an exchange and not quoted on NASDAQ or a
successor quotation system, the Fair Market Value of a share of Class A Common
Stock as established by the Administrator acting in good faith; provided,
however, that with respect to any Award granted as of the IPO Date, Fair Market
Value shall mean the initial public

                                       3
<PAGE>   4
offering price (net of underwriting discounts and commissions) per share of
Class A Common Stock.

                  1.19 Grantee. "Grantee" shall mean an Employee or consultant
granted a Performance Award, Dividend Equivalent, Stock Payment or Stock
Appreciation Right, or an award of Deferred Stock, under the Plan.

                  1.20 Holder. "Holder" shall mean a person who has been granted
or awarded an Award.

                  1.21 Incentive Stock Option. "Incentive Stock Option" shall
mean an option which conforms to the applicable provisions of Section 422 of the
Code and which is designated as an Incentive Stock Option by the Committee.

                  1.22 Independent Director. "Independent Director" shall mean a
member of the Board who is not an Employee of the Company. "Independent Director
Nominee" shall mean a person who is nominated to become a member of the Board
who is not an Employee of the Company.

                  1.23 IPO Date. "IPO Date" shall mean the effective date of the
initial public offering of Class A Common Stock pursuant to a registration
statement filed with the Securities and Exchange Commission.

                  1.24 Non-Qualified Stock Option. "Non-Qualified Stock Option"
shall mean an Option which is not designated as an Incentive Stock Option by the
Committee.

                  1.25 Option. "Option" shall mean a stock option granted under
Article IV of the Plan. An Option granted under the Plan shall, as determined by
the Committee, be either a Non-Qualified Stock Option or an Incentive Stock
Option; provided, however, that Options granted to Independent Directors,
Independent Director Nominees and consultants shall be Non-Qualified Stock
Options.

                  1.26 Optionee. "Optionee" shall mean an Employee, consultant ,
Independent Director or Independent Director Nominee granted an Option under the
Plan.

                  1.27 Performance Award. "Performance Award" shall mean a cash
bonus, stock bonus or other performance or incentive award that is paid in cash,
Class A Common Stock or a combination of both, awarded under Article VIII of the
Plan.

                  1.28 Performance Criteria. "Performance Criteria" shall mean
the following business criteria with respect to the Company or any Subsidiary:
(i) net income, (ii) pre-tax income, (iii) operating income, (iv) cash flow, (v)
earnings per share, (vi) return on equity, (vii) return on invested capital or
assets, (viii) cost reductions or savings, (ix) funds from operations, (x)
appreciation in the fair market value of Class A Common Stock and (xi) earnings
before any one or more of the following items: interest, taxes, depreciation or
amortization.

                                       4
<PAGE>   5
                  1.29 Plan. "Plan" shall mean The 2000 Equity Plan of Beasley
Broadcast Group, Inc.

                  1.30 QDRO. "QDRO" shall mean a qualified domestic relations
order as defined by the Code or Title I of the Employee Retirement Income
Security Act of 1974, as amended, or the rules thereunder.

                  1.31 Restricted Stock. "Restricted Stock" shall mean Class A
Common Stock awarded under Article VII of the Plan.

                  1.32 Restricted Stockholder. "Restricted Stockholder" shall
mean an Employee or consultant granted an award of Restricted Stock under
Article VII of the Plan.

                  1.33 Rule 16b-3. "Rule 16b-3" shall mean that certain Rule
16b-3 under the Exchange Act, as such Rule may be amended from time to time.

                  1.34 Section 162(m) Participant. "Section 162(m) Participant"
shall mean any key Employee designated by the Committee as a key Employee whose
compensation for the fiscal year in which the key Employee is so designated or a
future fiscal year may be subject to the limit on deductible compensation
imposed by Section 162(m) of the Code.

                  1.35 Securities Act. "Securities Act" shall mean the
Securities Act of 1933, as amended.

                  1.36 Stock Appreciation Right. "Stock Appreciation Right"
shall mean a stock appreciation right granted under Article IX of the Plan.

                  1.37 Stock Payment. "Stock Payment" shall mean (i) a payment
in the form of shares of Class A Common Stock, or (ii) an option or other right
to purchase shares of Class A Common Stock, as part of a deferred compensation
arrangement, made in lieu of all or any portion of the compensation, including
without limitation, salary, bonuses and commissions, that would otherwise become
payable to a key Employee or consultant in cash, awarded under Article VIII of
the Plan.

                  1.38 Subsidiary. "Subsidiary" shall mean any corporation in an
unbroken chain of corporations beginning with the Company if each of the
corporations other than the last corporation in the unbroken chain then owns
stock possessing fifty percent (50%) or more of the total combined voting power
of all classes of stock in one of the other corporations in such chain.

                  1.39 Termination of Consultancy. "Termination of Consultancy"
shall mean the time when the engagement of a Holder as a consultant to the
Company or a Subsidiary is terminated for any reason, with or without cause,
including, but not by way of limitation, by resignation, discharge, death or
retirement; but excluding terminations where there is a simultaneous
commencement of employment with the Company or any Subsidiary. The Committee, in
its absolute discretion, shall determine the effect of all matters and questions
relating to Termination of Consultancy, including, but not by way of limitation,
the question of whether a Termination of Consultancy resulted from a discharge
for good cause, and all

                                       5
<PAGE>   6
questions of whether a particular leave of absence constitutes a Terminations of
Consultancy. Notwithstanding any other provision of the Plan, the Company or any
Subsidiary has an absolute and unrestricted right to terminate a consultant's
service at any time for any reason whatsoever, with or without cause, except to
the extent expressly provided otherwise in writing.

                  1.40 Termination of Directorship. "Termination of
Directorship" shall mean the time when an Optionee who is an Independent
Director ceases to be a Director for any reason, including, but not by way of
limitation, a termination by resignation, failure to be elected, death or
retirement. The Board, in its sole and absolute discretion, shall determine the
effect of all matters and questions relating to Termination of Directorship with
respect to Independent Directors.

                  1.41 Termination of Employment. "Termination of Employment"
shall mean the time when the employee-employer relationship between a Holder and
the Company or any Subsidiary is terminated for any reason, with or without
cause, including, but not by way of limitation, a termination by resignation,
discharge, death, disability or retirement; but excluding (i) terminations where
there is a simultaneous reemployment or continuing employment of a Holder by the
Company or any Subsidiary, (ii) at the discretion of the Committee, terminations
which result in a temporary severance of the employee-employer relationship, and
(iii) at the discretion of the Committee, terminations which are followed by the
simultaneous establishment of a consulting relationship by the Company or a
Subsidiary with the former employee. The Committee, in its absolute discretion,
shall determine the effect of all matters and questions relating to Termination
of Employment, including, but not by way of limitation, the question of whether
a Termination of Employment resulted from a discharge for good cause, and all
questions of whether a particular leave of absence constitutes a Termination of
Employment; provided, however, that, with respect to Incentive Stock Options,
unless otherwise determined by the Committee in its discretion, a leave of
absence, change in status from an employee to an independent contractor or other
change in the employee-employer relationship shall constitute a Termination of
Employment if, and to the extent that, such leave of absence, change in status
or other change interrupts employment for the purposes of Section 422(a)(2) of
the Code and the then applicable regulations and revenue rulings under said
Section. Notwithstanding any other provision of the Plan, the Company or any
Subsidiary has an absolute and unrestricted right to terminate an Employee's
employment at any time for any reason whatsoever, with or without cause, except
to the extent expressly provided otherwise in writing.

                                  ARTICLE II.
                             SHARES SUBJECT TO PLAN

                  2.1 Shares Subject to Plan.

                      (a) The shares of stock subject to Awards shall be Class
                  A Common Stock, initially shares of the Company's Class A
                  Common Stock, par value $.001 per share. The aggregate number
                  of such shares which may be issued upon exercise of such
                  Options or rights or upon any such awards under the Plan shall
                  not exceed three million (3,000,000). The shares of Class A
                  Common Stock

                                       6
<PAGE>   7
                  issuable upon exercise of such Options or rights or upon any
                  such awards may be either previously authorized but unissued
                  shares or treasury shares.

                      (b) The maximum number of shares which may be subject to
                  Awards, granted under the Plan to any individual in any
                  calendar year shall not exceed the Award Limit. To the extent
                  required by Section 162(m) of the Code, shares subject to
                  Options which are canceled continue to be counted against the
                  Award Limit and if, after grant of an Option, the price of
                  shares subject to such Option is reduced, the transaction is
                  treated as a cancellation of the Option and a grant of a new
                  Option and both the Option deemed to be canceled and the
                  Option deemed to be granted are counted against the Award
                  Limit. Furthermore, to the extent required by Section 162(m)
                  of the Code, if, after grant of a Stock Appreciation Right,
                  the base amount on which stock appreciation is calculated is
                  reduced to reflect a reduction in the Fair Market Value of the
                  Class A Common Stock, the transaction is treated as a
                  cancellation of the Stock Appreciation Right and a grant of a
                  new Stock Appreciation Right and both the Stock Appreciation
                  Right deemed to be canceled and the Stock Appreciation Right
                  deemed to be granted are counted against the Award Limit.

                  2.2 Add-back of Options and Other Rights. If any Option, or
other right to acquire shares of Class A Common Stock under any other Award
under the Plan, expires or is canceled without having been fully exercised, or
is exercised in whole or in part for cash as permitted by the Plan, the number
of shares subject to such Option or other right but as to which such Option or
other right was not exercised prior to its expiration, cancellation or exercise
may again be optioned, granted or awarded hereunder, subject to the limitations
of Section 2.1. Furthermore, any shares subject to Awards which are adjusted
pursuant to Section 11.3 and become exercisable with respect to shares of stock
of another corporation shall be considered cancelled and may again be optioned,
granted or awarded hereunder, subject to the limitations of Section 2.1. Shares
of Class A Common Stock which are delivered by the Holder or withheld by the
Company upon the exercise of any Award under the Plan, in payment of the
exercise price thereof or tax withholding thereon, may again be optioned,
granted or awarded hereunder, subject to the limitations of Section 2.1. If any
share of Restricted Stock is forfeited by the Holder or repurchased by the
Company pursuant to Section 7.5 hereof, such share may again be optioned,
granted or awarded hereunder, subject to the limitations of Section 2.1.
Notwithstanding the provisions of this Section 2.2, no shares of Class A Common
Stock may again be optioned, granted or awarded if such action would cause an
Incentive Stock Option to fail to qualify as an incentive stock option under
Section 422 of the Code.

                                  ARTICLE III.
                               GRANTING OF AWARDS

                  3.1 Award Agreement. Each Award shall be evidenced by an Award
Agreement. Award Agreements evidencing Awards intended to qualify as
performance-based compensation as described in Section 162(m)(4)(C) of the Code
shall contain such terms and conditions as may be necessary to meet the
applicable provisions of Section 162(m) of the Code.

                                       7
<PAGE>   8
Award Agreements evidencing Incentive Stock Options shall contain such terms and
conditions as may be necessary to meet the applicable provisions of Section 422
of the Code.

                                       8
<PAGE>   9
                  3.2  Provisions Applicable to Section 162(m) Participants.

                       (a) The Committee, in its discretion, may determine
                  whether an Award is to qualify as performance-based
                  compensation as described in Section 162(m)(4)(C) of the Code.

                       (b) Notwithstanding anything in the Plan to the contrary,
                  the Committee may grant any Award to a Section 162(m)
                  Participant, including Restricted Stock the restrictions with
                  respect to which lapse upon the attainment of performance
                  goals which are related to one or more of the Performance
                  Criteria and any performance or incentive award described in
                  Article VIII that vests or becomes exercisable or payable upon
                  the attainment of performance goals which are related to one
                  or more of the Performance Criteria.

                       (c) To the extent necessary to comply with the
                  performance-based compensation requirements of Section
                  162(m)(4)(C) of the Code, with respect to any Award granted
                  under Articles VII and VIII which may be granted to one or
                  more Section 162(m) Participants, no later than ninety (90)
                  days following the commencement of any fiscal year in question
                  or any other designated fiscal period or period of service (or
                  such other time as may be required or permitted by Section
                  162(m) of the Code), the Committee shall, in writing, (i)
                  designate one or more Section 162(m) Participants, (ii) select
                  the Performance Criteria applicable to the fiscal year or
                  other designated fiscal period or period of service, (iii)
                  establish the various performance targets, in terms of an
                  objective formula or standard, and amounts of Restricted Stock
                  or bonus amounts, as applicable, which may be earned for such
                  fiscal year or other designated fiscal period or period of
                  service and (iv) specify the relationship between Performance
                  Criteria and the performance targets and the amounts of
                  Restricted Stock or bonus amounts, as applicable, to be earned
                  by each Section 162(m) Participant for such fiscal year or
                  other designated fiscal period or period of service. Following
                  the completion of each fiscal year or other designated fiscal
                  period or period of service, the Committee shall certify in
                  writing whether the applicable performance targets have been
                  achieved for such fiscal year or other designated fiscal
                  period or period of service. In determining the amount earned
                  by a Section 162(m) Participant, the Committee shall have the
                  right to reduce (but not to increase) the amount payable at a
                  given level of performance to take into account additional
                  factors that the Committee may deem relevant to the assessment
                  of individual or corporate performance for the fiscal year or
                  other designated fiscal period or period of service.

                  3.3  Consideration. In consideration of the granting of an
Award under the Plan, the Holder shall agree, in the Award Agreement, to remain
in the employ of (or to consult for or to serve as an Independent Director of,
as applicable) the Company or any Subsidiary for a period of at least one year
(or such shorter period as may be fixed in the Award Agreement or by

                                       9
<PAGE>   10
action of the Administrator following grant of the Award) after the Award is
granted (or, in the case of an Independent Director or Independent Director
Nominee, until the next annual meeting of stockholders of the Company).

                  3.4  At-Will Employment. Nothing in the Plan or in any Award
Agreement hereunder shall confer upon any Holder any right to continue in the
employ of, or as a consultant for, the Company or any Subsidiary, or as a
director of the Company, or shall interfere with or restrict in any way the
rights of the Company and any Subsidiary, which are hereby expressly reserved,
to discharge any Holder at any time for any reason whatsoever, with or without
cause, except to the extent expressly provided otherwise in a written employment
agreement between the Holder and the Company and any Subsidiary.

                                  ARTICLE IV.
                        GRANTING OF OPTIONS TO EMPLOYEES,
                     CONSULTANTS, INDEPENDENT DIRECTORS AND
                          INDEPENDENT DIRECTOR NOMINEES

                  4.1  Eligibility. Any Employee or consultant selected by the
Committee pursuant to Section 4.4(a)(i) shall be eligible to be granted an
Option. Each Independent Director and Independent Director Nominee of the
Company shall be eligible to be granted Options at the times and in the manner
set forth in Section 4.5.

                  4.2  Disqualification for Stock Ownership. No person may be
granted an Incentive Stock Option under the Plan if such person, at the time the
Incentive Stock Option is granted, owns stock possessing more than ten percent
(10%) of the total combined voting power of all classes of stock of the Company
or any then existing Subsidiary or parent corporation (within the meaning of
Section 422 of the Code) unless such Incentive Stock Option conforms to the
applicable provisions of Section 422 of the Code.

                  4.3  Qualification of Incentive Stock Options. No Incentive
Stock Option shall be granted to any person who is not an Employee.

                  4.4  Granting of Options to Employees and Consultants.

                       (a) The Committee shall from time to time, in its
                  absolute discretion, and subject to applicable limitations of
                  the Plan:

                           (i) Determine which Employees are key Employees and
                  select from among the key Employees or consultants (including
                  Employees or consultants who have previously received Awards
                  under the Plan) such of them as in its opinion should be
                  granted Options;

                           (ii) Subject to the Award Limit, determine the number
                  of shares to be subject to such Options granted to the
                  selected key Employees or consultants;

                                       10
<PAGE>   11
                           (iii) Subject to Section 4.3, determine whether such
                  Options are to be Incentive Stock Options or Non-Qualified
                  Stock Options and whether such Options are to qualify as
                  performance-based compensation as described in Section
                  162(m)(4)(C) of the Code; and

                           (iv) Determine the terms and conditions of such
                  Options, consistent with the Plan; provided, however, that the
                  terms and conditions of Options intended to qualify as
                  performance-based compensation as described in Section
                  162(m)(4)(C) of the Code shall include, but not be limited to,
                  such terms and conditions as may be necessary to meet the
                  applicable provisions of Section 162(m) of the Code.

                       (b) Upon the selection of a key Employee or consultant to
                  be granted an Option, the Committee shall instruct the
                  Secretary of the Company to issue the Option and may impose
                  such conditions on the grant of the Option as it deems
                  appropriate. Without limiting the generality of the preceding
                  sentence, the Committee may, in its discretion and on such
                  terms as it deems appropriate, require as a condition on the
                  grant of an Option to an Employee or consultant that the
                  Employee or consultant surrender for cancellation some or all
                  of the unexercised Options, any other Award or other rights
                  which have been previously granted to him under the Plan or
                  otherwise. An Option, the grant of which is conditioned upon
                  such surrender, may have an Option price lower (or higher)
                  than the exercise price of such surrendered Option or other
                  award, may cover the same (or a lesser or greater) number of
                  shares as such surrendered Option or other award, may contain
                  such other terms as the Committee deems appropriate, and shall
                  be exercisable in accordance with its terms, without regard to
                  the number of shares, price, exercise period or any other term
                  or condition of such surrendered Option or other award.

                       (c) Any Incentive Stock Option granted under the Plan may
                  be modified by the Committee, with the consent of the
                  Optionee, to disqualify such Option from treatment as an
                  "incentive stock option" under Section 422 of the Code.

                  4.5  Granting of Options to Independent Directors or
                       Independent Director Nominees.

                       (a) Each person who is an Independent Director or
                  Independent Director Nominee as of the IPO Date automatically
                  shall be granted an Option to purchase twenty thousand
                  (20,000) shares of Class A Common Stock (subject to adjustment
                  as provided in Section 11.3) on the IPO Date, subject to
                  forfeiture pursuant to Section 4.5(d).

                       (b) Following the IPO Date, each person who is initially
                  elected to the Board during the term of the Plan and who is an
                  Independent Director at the time of such initial election
                  automatically shall be granted an option to purchase twenty

                                       11
<PAGE>   12
                  thousand (20,000) shares of Class A Common Stock (subject to
                  adjustment as provided in Section 11.3) on the date of such
                  initial election.

                       (c) In addition to Options granted to Independent
                  Directors and Independent Director Nominees pursuant to
                  Section 4.5(a) and 4.5(b), during the term of the Plan the
                  Board may from time to time, in its absolute discretion, and
                  subject to applicable limitations of the Plan:

                           (i) Select from among the Independent Directors
                  (including Independent Directors who have previously received
                  Options under the Plan) such of them as in its opinion should
                  be granted Options;

                           (ii) Subject to the Award Limit, determine the number
                  of shares to be subject to such Options granted to the
                  selected Independent Directors;

                           (iii) Subject to the provisions of Article V,
                  determine the terms and conditions of such Options, consistent
                  with the Plan.

                  All the foregoing Option grants authorized by this Section 4.5
are subject to stockholder approval of the Plan.

                       (d) If an Independent Director Nominee fails to become an
                  Independent Director of the Company within 90 days of the
                  initial public offering of the Company's Class A Common Stock,
                  he forfeits all Options granted to him pursuant to this Plan.

                  4.6  Options in Lieu of Cash Compensation. Options may be
granted under the Plan to Employees and consultants in lieu of cash bonuses
which would otherwise be payable to such Employees and consultants and to
Independent Directors in lieu of directors' fees which would otherwise be
payable to such Independent Directors, pursuant to such policies which may be
adopted by the Administrator from time to time.

                                   ARTICLE V.
                                TERMS OF OPTIONS

                  5.1  Option Price. The price per share of the shares subject
to each Option granted to Employees and consultants shall be set by the
Committee; provided, however, that such price shall be no less than the par
value of a share of Class A Common Stock, unless otherwise permitted by
applicable state law, and (i) in the case of Options intended to qualify as
performance-based compensation as described in Section 162(m)(4)(C) of the Code,
such price shall not be less than 100% of the Fair Market Value of a share of
Class A Common Stock on the date the Option is granted; (ii) in the case of
Incentive Stock Options such price shall not be less than 100% of the Fair
Market Value of a share of Class A Common Stock on the date the Option is
granted (or the date the Option is modified, extended or renewed for purposes of
Section 424(h) of the Code); (iii) in the case of Incentive Stock Options
granted to an individual then owning (within the meaning of Section 424(d) of
the Code) more than 10% of the total combined voting power of all classes of
stock of the Company or any Subsidiary or parent corporation

                                       12
<PAGE>   13
thereof (within the meaning of Section 422 of the Code), such price shall not be
less than 110% of the Fair Market Value of a share of Class A Common Stock on
the date the Option is granted (or the date the Option is modified, extended or
renewed for purposes of Section 424(h) of the Code).

                  5.2 Option Term. The term of an Option granted to an Employee
or consultant shall be set by the Committee in its discretion; provided,
however, that, in the case of Incentive Stock Options, the term shall not be
more than ten (10) years from the date the Incentive Stock Option is granted, or
five (5) years from such date if the Incentive Stock Option is granted to an
individual then owning (within the meaning of Section 424(d) of the Code) more
than 10% of the total combined voting power of all classes of stock of the
Company or any Subsidiary or parent corporation thereof (within the meaning of
Section 422 of the Code). Except as limited by requirements of Section 422 of
the Code and regulations and rulings thereunder applicable to Incentive Stock
Options, the Committee may extend the term of any outstanding Option in
connection with any Termination of Employment or Termination of Consultancy of
the Optionee, or amend any other term or condition of such Option relating to
such a termination.

                  5.3 Option Vesting.

                      (a) The period during which the right to exercise, in
                  whole or in part, an Option granted to an Employee or a
                  consultant vests in the Optionee shall be set by the Committee
                  and the Committee may determine that an Option may not be
                  exercised in whole or in part for a specified period after it
                  is granted; provided, however, that, unless the Committee
                  otherwise provides in the terms of -------- ------- the Award
                  Agreement or otherwise, no Option shall be exercisable by any
                  Optionee who is then subject to Section 16 of the Exchange Act
                  within the period ending six months and one day after the date
                  the Option is granted. At any time after grant of an Option,
                  the Committee may, in its sole and absolute discretion and
                  subject to whatever terms and conditions it selects,
                  accelerate the period during which an Option granted to an
                  Employee or consultant vests.

                      (b) No portion of an Option granted to an Employee or
                  consultant which is unexercisable at Termination of Employment
                  or Termination of Consultancy, as applicable, shall thereafter
                  become exercisable, except as may be otherwise provided by the
                  Committee either in the Award Agreement or by action of the
                  Committee following the grant of the Option.

                      (c) To the extent that the aggregate Fair Market Value of
                  stock with respect to which "incentive stock options" (within
                  the meaning of Section 422 of the Code, but without regard to
                  Section 422(d) of the Code) are exercisable for the first time
                  by an Optionee during any calendar year (under the Plan and
                  all other incentive stock option plans of the Company and any
                  parent or subsidiary corporation (within the meaning of
                  Section 422 of the Code) of the Company) exceeds $100,000,
                  such Options shall be treated as Non-Qualified Options to the
                  extent required by Section 422 of the Code. The rule set forth
                  in the preceding

                                       13
<PAGE>   14
                  sentence shall be applied by taking Options into account in
                  the order in which they were granted. For purposes of this
                  Section 5.3(c), the Fair Market Value of stock shall be
                  determined as of the time the Option with respect to such
                  stock is granted.

                  5.4 Terms of Options Granted to Independent Directors or
Independent Director Nominees. The price per share of the shares subject to each
Option granted to an Independent Director or Independent Director Nominees shall
equal 100% of the Fair Market Value of a share of Class A Common Stock on the
date the Option is granted. Subject to Section 6.6, the term of each Option
granted to an Independent Director or Independent Director Nominees shall be ten
(10) years from the date the Option is granted, without variation or
acceleration hereunder. Options granted to Independent Directors or Independent
Director Nominees pursuant to Sections 4.5(a) and 4.5(b) shall be exercisable
with respect to 50% of the shares covered thereby on the date of grant and shall
become exercisable with respect to the remainder of the shares covered thereby
in two cumulative annual installments of 25% each on each of the first two
anniversaries of the date of Option grant, without variation or acceleration
hereunder except as provided in Section 11.3(b). Any Options granted to
Independent Directors or Independent Director Nominees pursuant to Section
4.5(c) shall become exercisable at such times as provided by the Board, in its
sole discretion, at the time of grant. No portion of an Option which is
unexercisable at Termination of Directorship shall thereafter become
exercisable.

                                  ARTICLE VI.
                               EXERCISE OF OPTIONS

                  6.1 Partial Exercise. An exercisable Option may be exercised
in whole or in part. However, an Option shall not be exercisable with respect to
fractional shares and the Administrator may require that, by the terms of the
Option, a partial exercise be with respect to a minimum number of shares.

                  6.2 Manner of Exercise. All or a portion of an exercisable
Option shall be deemed exercised upon delivery of all of the following to the
Secretary of the Company or his office:

                      (a) A written notice complying with the applicable rules
                  established by the Administrator stating that the Option, or a
                  portion thereof, is exercised. The notice shall be signed by
                  the Optionee or other person then entitled to exercise the
                  Option or such portion of the Option;

                      (b) Such representations and documents as the
                  Administrator, in its absolute discretion, deems necessary or
                  advisable to effect compliance with all applicable provisions
                  of the Securities Act and any other federal or state
                  securities laws or regulations. The Administrator may, in its
                  absolute discretion, also take whatever additional actions it
                  deems appropriate to effect such compliance including, without
                  limitation, placing legends on share certificates and issuing
                  stop-transfer notices to agents and registrars;

                                       14
<PAGE>   15
                      (c) In the event that the Option shall be exercised
                  pursuant to Section 11.1 by any person or persons other than
                  the Optionee, appropriate proof of the right of such person or
                  persons to exercise the Option; and

                      (d) Full cash payment to the Secretary of the Company for
                  the shares with respect to which the Option, or portion
                  thereof, is exercised. However, the Administrator, may in its
                  discretion (i) allow a delay in payment up to thirty (30) days
                  from the date the Option, or portion thereof, is exercised;
                  (ii) allow payment, in whole or in part, through the delivery
                  of shares of Class A Common Stock which have been owned by the
                  Optionee for at least six months, duly endorsed for transfer
                  to the Company with a Fair Market Value on the date of
                  delivery equal to the aggregate exercise price of the Option
                  or exercised portion thereof; (iii) allow payment, in whole or
                  in part, through the surrender of shares of Class A Common
                  Stock then issuable upon exercise of the Option having a Fair
                  Market Value on the date of Option exercise equal to the
                  aggregate exercise price of the Option or exercised portion
                  thereof; (iv) allow payment, in whole or in part, through the
                  delivery of property of any kind which constitutes good and
                  valuable consideration; (v) allow payment, in whole or in
                  part, through the delivery of a full recourse promissory note
                  bearing interest (at no less than such rate as shall then
                  preclude the imputation of interest under the Code) and
                  payable upon such terms as may be prescribed by the Committee
                  or the Board; (vi) allow payment, in whole or in part, through
                  the delivery of a notice that the Optionee has placed a market
                  sell order with a broker with respect to shares of Class A
                  Common Stock then issuable upon exercise of the Option, and
                  that the broker has been directed to pay a sufficient portion
                  of the net proceeds of the sale to the Company in satisfaction
                  of the Option exercise price; or (vii) allow payment through
                  any combination of the consideration provided in the foregoing
                  subparagraphs (ii), (iii), (iv), (v) and (vi). In the case of
                  a promissory note, the Administrator may also prescribe the
                  form of such note and the security to be given for such note.
                  The Option may not be exercised, however, by delivery of a
                  promissory note or by a loan from the Company when or where
                  such loan or other extension of credit is prohibited by law.

                  6.3 Conditions to Issuance of Stock Certificates. The Company
shall not be required to issue or deliver any certificate or certificates for
shares of stock purchased upon the exercise of any Option or portion thereof
prior to fulfillment of all of the following conditions:

                      (a) The admission of such shares to listing on all stock
                  exchanges or automated quotation systems on which such class
                  of stock is then listed or quoted;

                      (b) The completion of any registration or other
                  qualification of such shares under any state or federal law,
                  or under the rulings or regulations of the Securities and
                  Exchange Commission or any other governmental regulatory body
                  which the Administrator shall, in its absolute discretion,
                  deem necessary or advisable;

                                       15
<PAGE>   16
                      (c) The obtaining of any approval or other clearance from
                  any state or federal governmental agency which the
                  Administrator shall, in its absolute discretion, determine to
                  be necessary or advisable;

                      (d) The lapse of such reasonable period of time following
                  the exercise of the Option as the Committee (or Board, in the
                  case of Options granted to Independent Directors and
                  Independent Director Nominees) may establish from time to time
                  for reasons of administrative convenience; and

                      (e) The receipt by the Company of full payment for such
                  shares, including payment of any applicable withholding tax,
                  which in the discretion of the Committee or the Board may be
                  in the form of consideration used by the Optionee to pay for
                  such shares under Section 6.2(d).

                  6.4 Rights as Stockholders/ Dividend Equivalents. Optionees
shall not be, nor have any of the rights or privileges of, stockholders of the
Company in respect of any shares purchasable upon the exercise of any part of an
Option unless and until certificates representing such shares have been issued
by the Company to such Optionees. Notwithstanding the foregoing, any Optionee
who is an Employee or consultant selected by the Committee may be granted
Dividend Equivalents based on the dividends declared on Class A Common Stock, to
be credited as of dividend payment dates, during the period between the date an
Option is granted, and the date such Option is exercised, vests or expires, as
determined by the Committee. Such Dividend Equivalents shall be converted to
cash or additional shares of Class A Common Stock by such formula and at such
time and subject to such limitations as may be determined by the Committee. With
respect to Dividend Equivalents granted with respect to Options intended to be
qualified performance-based compensation for purposes of Section 162(m) of the
Code, such Dividend Equivalents shall be payable regardless of whether such
Option is exercised.

                  6.5 Ownership and Transfer Restrictions. The Administrator, in
its absolute discretion, may impose such restrictions on the ownership and
transferability of the shares purchasable upon the exercise of an Option as it
deems appropriate. Any such restriction shall be set forth in the respective
Award Agreement and may be referred to on the certificates evidencing such
shares. The Committee may require the Employee to give the Company prompt notice
of any disposition of shares of Class A Common Stock acquired by exercise of an
Incentive Stock Option within (i) two years from the date of granting (including
the date the Option is modified, extended or renewed for purposes of Section
424(h) of the Code) such Option to such Employee or (ii) one year after the
transfer of such shares to such Employee. The Committee may direct that the
certificates evidencing shares acquired by exercise of any such Option refer to
such requirement to give prompt notice of disposition.

                  6.6 Limitations on Exercise of Options Granted to Independent
Directors or Independent Director Nominees. No Option granted to an Independent
Director or Independent Director Nominee may be exercised to any extent by
anyone after the first to occur of the following events:

                                       16
<PAGE>   17

         (a)      The expiration of twelve (12) months from the date of the
                  Optionee's death;

         (b)      the expiration of twelve (12) months from the date of the
                  Optionee's Termination of Directorship by reason of his
                  permanent and total disability (within the meaning of Section
                  22(e)(3) of the Code);

         (c)      the expiration of three (3) months from the date of the
                  Optionee's Termination of Directorship for any reason other
                  than such Optionee's death or his permanent and total
                  disability, unless the Optionee dies within said three-month
                  period; or

         (d)      The expiration of ten (10) years from the date the Option was
                  granted.

         6.7 Additional Limitations on Exercise of Options. Optionees may be
required to comply with any timing or other restrictions with respect to the
settlement or exercise of an Option, including a window-period limitation, as
may be imposed in the discretion of the Administrator.

                                  ARTICLE VII.
                            AWARD OF RESTRICTED STOCK

         7.1 Eligibility. Subject to the Award Limit, Restricted Stock may be
awarded to any Employee who the Committee determines is a key Employee or any
consultant who the Committee determines should receive such an Award.

         7.2 Award of Restricted Stock

         (a)      The Committee may from time to time, in its absolute
                  discretion:

                  (i)      Determine which Employees are key Employees and
                           select from among the key Employees or consultants
                           (including Employees or consultants who have
                           previously received other awards under the Plan) such
                           of them as in its opinion should be awarded
                           Restricted Stock; and

                  (ii)     Determine the purchase price, if any, and other terms
                           and conditions applicable to such Restricted Stock,
                           consistent with the Plan.

         (b)      The Committee shall establish the purchase price, if any, and
                  form of payment for Restricted Stock; provided, however, that
                  such purchase price shall be no less than the par value of the
                  Class A Common Stock to be purchased, unless otherwise
                  permitted by applicable state law. In all cases, legal
                  consideration shall be required for each issuance of
                  Restricted Stock.

         (c)      Upon the selection of a key Employee or consultant to be
                  awarded Restricted Stock, the Committee shall instruct the
                  Secretary of the Company to

                                       17
<PAGE>   18

                  issue such Restricted Stock and may impose such conditions on
                  the issuance of such Restricted Stock as it deems appropriate.

         7.3 Rights as Stockholders. Subject to Section 7.4, upon delivery of
the shares of Restricted Stock to the escrow holder pursuant to Section 7.6, the
Restricted Stockholder shall have, unless otherwise provided by the Committee,
all the rights of a stockholder with respect to said shares, subject to the
restrictions in his Award Agreement, including the right to receive all
dividends and other distributions paid or made with respect to the shares;
provided, however, that in the discretion of the Committee, any extraordinary
distributions with respect to the Class A Common Stock shall be subject to the
restrictions set forth in Section 7.4.

         7.4 Restriction. All shares of Restricted Stock issued under the Plan
(including any shares received by holders thereof with respect to shares of
Restricted Stock as a result of stock dividends, stock splits or any other form
of recapitalization) shall, in the terms of each individual Award Agreement, be
subject to such restrictions as the Committee shall provide, which restrictions
may include, without limitation, restrictions concerning voting rights and
transferability and restrictions based on duration of employment with the
Company, Company performance and individual performance; provided, however,
that, unless the Committee otherwise provides in the terms of the Award
Agreement or otherwise, no share of Restricted Stock granted to a person subject
to Section 16 of the Exchange Act shall be sold, assigned or otherwise
transferred until at least six months and one day have elapsed from the date on
which the Restricted Stock was issued, and provided, further, that, except with
respect to shares of Restricted Stock granted to Section 162(m) Participants, by
action taken after the Restricted Stock is issued, the Committee may, on such
terms and conditions as it may determine to be appropriate, remove any or all of
the restrictions imposed by the terms of the Award Agreement. Restricted Stock
may not be sold or encumbered until all restrictions are terminated or expire.
If no consideration was paid by the Restricted Stockholder upon issuance, a
Restricted Stockholder's rights in unvested Restricted Stock shall lapse upon
Termination of Employment or, if applicable, upon Termination of Consultancy
with the Company; provided, however, that the Committee in its sole and absolute
discretion may provide that such rights shall not lapse in the event of a
Termination of Employment following a "change of ownership control" (within the
meaning of Treasury Regulation Section 1.62-27(e)(2)(v) or any successor
regulation thereto) of the Company or because of the Restricted Stockholder's
death or disability; provided, further, except with respect to shares of
Restricted Stock granted to Section 162(m) Participants, the Committee in its
sole and absolute discretion may provide that no such right of repurchase shall
exist in the event of a Termination of Employment, or a Termination of
Consultancy, without cause or following any Change in Control of the Company or
because of the Restricted Stockholder's retirement, or otherwise.

         7.5 Repurchase of Restricted Stock. The Committee shall provide in the
terms of each individual Award Agreement that the Company shall have the right
to repurchase from the Restricted Stockholder the Restricted Stock then subject
to restrictions under the Award Agreement immediately upon a Termination of
Employment or, if applicable, upon a Termination of Consultancy between the
Restricted Stockholder and the Company, at a cash price per share equal to the
price paid by the Restricted Stockholder for such Restricted Stock; provided,
however, that the Committee in its sole and absolute discretion may provide that
no such right of repurchase shall exist in the event of a Termination of
Employment following a "change of ownership or control" (within the meaning of
Treasury Regulation Section 1.162-27(e)(2)(v) or any successor regulation
thereto) of the Company or because of the Restricted Stockholder's death or
disability; provided, further, that, except with respect to shares of Restricted
Stock granted to Section 162(m) Participants, the Committee in its sole and
absolute discretion may provide that no

                                       18
<PAGE>   19

such right of repurchase shall exist in the event of a Termination of Employment
or a Termination of Consultancy without cause or following any Change in Control
of the Company or because of the Restricted Stockholder's retirement, or
otherwise. 7.6 Escrow. The Secretary of the Company or such other escrow holder
as the Committee may appoint shall retain physical custody of each certificate
representing Restricted Stock until all of the restrictions imposed under the
Award Agreement with respect to the shares evidenced by such certificate expire
or shall have been removed.

         7.7 Legend. In order to enforce the restrictions imposed upon shares of
Restricted Stock hereunder, the Committee shall cause a legend or legends to be
placed on certificates representing all shares of Restricted Stock that are
still subject to restrictions under Award Agreements, which legend or legends
shall make appropriate reference to the conditions imposed thereby.

         7.8 Section 83(b) Election. If a Restricted Stockholder makes an
election under Section 83(b) of the Code, or any successor section thereto, to
be taxed with respect to the Restricted Stock as of the date of transfer of the
Restricted Stock rather than as of the date or dates upon which the Restricted
Stockholder would otherwise be taxable under Section 83(a) of the Code, the
Restricted Stockholder shall deliver a copy of such election to the Company
immediately after filing such election with the Internal Revenue Service.

                                 ARTICLE VIII.
                    PERFORMANCE AWARDS, DIVIDEND EQUIVALENTS,
                         DEFERRED STOCK, STOCK PAYMENTS

         8.1 Eligibility. Subject to the Award Limit, one or more Performance
Awards, Dividend Equivalents, awards of Deferred Stock, and/or Stock Payments
may be granted to any Employee whom the Committee determines is a key Employee
or any consultant whom the Committee determines should receive such an Award.

         8.2 Performance Awards. Any key Employee or consultant selected by the
Committee may be granted one or more Performance Awards. The value of such
Performance Awards may be linked to any one or more of the Performance Criteria
or other specific performance criteria determined appropriate by the Committee,
in each case on a specified date or dates or over any period or periods
determined by the Committee. In making such determinations, the Committee shall
consider (among such other factors as it deems relevant in light of the specific
type of award) the contributions, responsibilities and other compensation of the
particular key Employee or consultant.

                                       19
<PAGE>   20

         8.3 Dividend Equivalents. Any key Employee or consultant selected by
the Committee may be granted Dividend Equivalents based on the dividends
declared on Class A Common Stock, to be credited as of dividend payment dates,
during the period between the date a Stock Appreciation Right, Deferred Stock or
Performance Award is granted, and the date such Stock Appreciation Right,
Deferred Stock or Performance Award is exercised, vests or expires, as
determined by the Committee. Such Dividend Equivalents shall be converted to
cash or additional shares of Class A Common Stock by such formula and at such
time and subject to such limitations as may be determined by the Committee.

         8.4 Stock Payments. Any key Employee or consultant selected by the
Committee may receive Stock Payments in the manner determined from time to time
by the Committee. The number of shares shall be determined by the Committee and
may be based upon the Performance Criteria or other specific performance
criteria determined appropriate by the Committee, determined on the date such
Stock Payment is made or on any date thereafter.

         8.5 Deferred Stock. Any key Employee or consultant selected by the
Committee may be granted an award of Deferred Stock in the manner determined
from time to time by the Committee. The number of shares of Deferred Stock shall
be determined by the Committee and may be linked to the Performance Criteria or
other specific performance criteria determined to be appropriate by the
Committee, in each case on a specified date or dates or over any period or
periods determined by the Committee. Class A Common Stock underlying a Deferred
Stock award will not be issued until the Deferred Stock award has vested,
pursuant to a vesting schedule or performance criteria set by the Committee.
Unless otherwise provided by the Committee, a Holder of Deferred Stock shall
have no rights as a Company stockholder with respect to such Deferred Stock
until such time as the Award has vested and the Class A Common Stock underlying
the Award has been issued.

         8.6 Term. The term of a Performance Award, Dividend Equivalent, award
of Deferred Stock and/or Stock Payment shall be set by the Committee in its
discretion.

         8.7 Exercise or Purchase Price. The Committee may establish the
exercise or purchase price of a Performance Award, shares of Deferred Stock, or
shares received as a Stock Payment; provided, however, that such price shall not
be less than the par value for a share of Class A Common Stock, unless otherwise
permitted by applicable state law.

         8.8 Exercise Upon Termination of Employment or Termination of
Consultancy. A Performance Award, Dividend Equivalent, award of Deferred Stock
and/or Stock Payment is exercisable or payable only while the Holder is an
Employee or consultant; provided, however, that the Committee in its sole and
absolute discretion may provide that the Performance Award, Dividend Equivalent,
award of Deferred Stock and/or Stock Payment may be exercised or paid subsequent
to a Termination of Employment following a "change of control or ownership"
(within the meaning of Treasury Regulation Section 1.162-27(e)(2)(v) or any
successor regulation thereto) of the Company; provided, further, that except
with respect to Performance Awards granted to Section 162(m) Participants, the
Committee in its sole and absolute discretion may provide that the Performance
Awards may be exercised or paid following a Termination of Employment or a
Termination of Consultancy without cause, or following a

                                       20
<PAGE>   21

Change in Control of the Company, or because of the Grantee's retirement, death
or disability, or otherwise.

         8.9 Payment on Exercise. Payment of the amount determined under Section
8.1 or 8.2 above shall be in cash, in Class A Common Stock or a combination of
both, as determined by the Committee. To the extent any payment under this
Article VIII is effected in Class A Common Stock, it shall be made subject to
satisfaction of all provisions of Section 6.3.

                                  ARTICLE IX.
                            STOCK APPRECIATION RIGHTS

         9.1 Grant of Stock Appreciation Rights. A Stock Appreciation Right may
be granted to any key Employee or consultant selected by the Committee. A Stock
Appreciation Right may be granted (i) in connection and simultaneously with the
grant of an Option, (ii) with respect to a previously granted Option, or (iii)
independent of an Option. A Stock Appreciation Right shall be subject to such
terms and conditions not inconsistent with the Plan as the Committee shall
impose and shall be evidenced by an Award Agreement. Without limiting the
generality of the foregoing, the Committee may, in its discretion and on such
terms as it deems appropriate, require as a condition of the grant of a Stock
Appreciation Right to an Employee or consultant that the Employee or consultant
surrender for cancellation some or all of the unexercised Options, awards of
Restricted Stock or Deferred Stock, Performance Awards, Stock Appreciation
Rights, Dividend Equivalents or Stock Payments, or other rights which have been
previously granted to him under the Plan or otherwise. A Stock Appreciation
Right, the grant of which is conditioned upon such surrender, may have an
exercise price lower (or higher) than the exercise price of the surrendered
Option or other award, may cover the same (or a lesser or greater) number of
shares as such surrendered Option or other award, may contain such other terms
as the Committee deems appropriate, and shall be exercisable in accordance with
its terms, without regard to the number of shares, price, exercise period or any
other term or condition of such surrendered Option or other award.

         9.2 Coupled Stock Appreciation Rights.

                  (a) A Coupled Stock Appreciation Right ("CSAR") shall be
         related to a particular Option and shall be exercisable only when and
         to the extent the related Option is exercisable.

                  (b) A CSAR may be granted to the Grantee for no more than the
         number of shares subject to the simultaneously or previously granted
         Option to which it is coupled.

                  (c) A CSAR shall entitle the Grantee (or other person entitled
         to exercise the Option pursuant to the Plan) to surrender to the
         Company unexercised a portion of the Option to which the CSAR relates
         (to the extent then exercisable pursuant to its terms) and to receive
         from the Company in exchange therefor an amount determined by
         multiplying the difference obtained by subtracting the Option exercise
         price from the Fair Market Value of a share of Class A Common

                                       21
<PAGE>   22

         Stock on the date of exercise of the CSAR by the number of shares of
         Class A Common Stock with respect to which the CSAR shall have been
         exercised, subject to any limitations the Committee may impose.

         9.3 Independent Stock Appreciation Rights.

                  (a) An Independent Stock Appreciation Right ("ISAR") shall be
         unrelated to any Option and shall have a term set by the Committee. An
         ISAR shall be exercisable in such installments as the Committee may
         determine. An ISAR shall cover such number of shares of Class A Common
         Stock as the Committee may determine; provided, however, that unless
         the Committee otherwise provides in the terms of the ISAR or otherwise,
         no ISAR granted to a person subject to Section 16 of the Exchange Act
         shall be exercisable until at least six months have elapsed from (but
         excluding) the date on which the Option was granted. The exercise price
         per share of Class A Common Stock subject to each ISAR shall be set by
         the Committee. An ISAR is exercisable only while the Grantee is an
         Employee or consultant; provided that the Committee may determine that
         the ISAR may be exercised subsequent to Termination of Employment or
         Termination of Consultancy without cause, or following a Change in
         Control of the Company, or because of the Grantee's retirement, death
         or disability, or otherwise.

                  (b) An ISAR shall entitle the Grantee (or other person
         entitled to exercise the ISAR pursuant to the Plan) to exercise all or
         a specified portion of the ISAR (to the extent then exercisable
         pursuant to its terms) and to receive from the Company an amount
         determined by multiplying the difference obtained by subtracting the
         exercise price per share of the ISAR from the Fair Market Value of a
         share of Class A Common Stock on the date of exercise of the ISAR by
         the number of shares of Class A Common Stock with respect to which the
         ISAR shall have been exercised, subject to any limitations the
         Committee may impose.

         9.4 Payment and Limitations on Exercise.

                  (a) Payment of the amount determined under Section 9.2(c) and
         9.3(b) above shall be in cash, in Class A Common Stock (based on its
         Fair Market Value as of the date the Stock Appreciation Right is
         exercised) or a combination of both, as determined by the Committee. To
         the extent such payment is effected in Class A Common Stock it shall be
         made subject to satisfaction of all provisions of Section 6.3 above
         pertaining to Options.

                  (b) Grantees of Stock Appreciation Rights may be required to
         comply with any timing or other restrictions with respect to the
         settlement or exercise of a Stock Appreciation Right, including a
         window-period limitation, as may be imposed in the discretion of the
         Committee.

                                       22
<PAGE>   23

                                   ARTICLE X.
                                 ADMINISTRATION

         10.1 Compensation Committee. Prior to the Company's initial
registration of Class A Common Stock under Section 12 of the Exchange Act, the
Compensation Committee shall consist of the entire Board. Following such
registration, The Compensation Committee (or another committee or a subcommittee
of the Board assuming the functions of the Committee under the Plan) shall
consist solely of two or more Independent Directors appointed by and holding
office at the pleasure of the Board, each of whom is both a "non-employee
director" as defined by Rule 16b-3 and an "outside director" for purposes of
Section 162(m) of the Code. Appointment of Committee members shall be effective
upon acceptance of appointment or as otherwise provided by the Board. Committee
members may resign at any time by delivering written notice to the Board.
Vacancies in the Committee may be filled by the Board.

         10.2 Duties and Powers of Committee. It shall be the duty of the
Committee to conduct the general administration of the Plan in accordance with
its provisions. The Committee shall have the power to interpret the Plan and the
agreements pursuant to which Awards are granted or awarded, and to adopt such
rules for the administration, interpretation, and application of the Plan as are
consistent therewith and to interpret, amend or revoke any such rules.
Notwithstanding the foregoing, the full Board, acting by a majority of its
members in office, shall conduct the general administration of the Plan with
respect to Options granted to Independent Directors or Independent Director
Nominees. Any such grant or award under the Plan need not be the same with
respect to each Holder. Any such interpretations and rules with respect to
Incentive Stock Options shall be consistent with the provisions of Section 422
of the Code. In its absolute discretion, the Board may at any time and from time
to time exercise any and all rights and duties of the Committee under the Plan
except with respect to matters which under Rule 16b-3 or Section 162(m) of the
Code, or any regulations or rules issued thereunder, are required to be
determined in the sole discretion of the Committee.

         10.3 Majority Rule; Unanimous Written Consent. The Committee shall act
by a majority of its members in attendance at a meeting at which a quorum is
present or by a memorandum or other written instrument signed by all members of
the Committee.

         10.4 Compensation; Professional Assistance; Good Faith Actions. Members
of the Committee shall receive such compensation, if any, for their services as
members as may be determined by the Board. All expenses and liabilities which
members of the Committee incur in connection with the administration of the Plan
shall be borne by the Company. The Committee may, with the approval of the
Board, employ attorneys, consultants, accountants, appraisers, brokers, or other
persons. The Committee, the Company and the Company's officers and Directors
shall be entitled to rely upon the advice, opinions or valuations of any such
persons. All actions taken and all interpretations and determinations made by
the Committee or the Board in good faith shall be final and binding upon all
Holders, the Company and all other interested persons. No members of the
Committee or Board shall be personally liable for any action, determination or
interpretation made in good faith with respect to the Plan or Awards, and all
members of the Committee and the Board shall be fully protected by the Company
in respect of any such action, determination or interpretation.

                                       23
<PAGE>   24

                                  ARTICLE XI.
                            MISCELLANEOUS PROVISIONS

         11.1 Not Transferable.

                  (a) Except as otherwise provided in Section 11.1(b):

                           (i) No Award under the Plan may be sold, pledged,
         assigned or transferred in any manner other than by will or the laws of
         descent and distribution or, subject to the consent of the
         Administrator, pursuant to a QDRO, unless and until such Award has been
         exercised, or the shares underlying such Award have been issued, and
         all restrictions applicable to such shares have lapsed;

                           (ii) No Option, Restricted Stock award, Deferred
         Stock award, Performance Award, Stock Appreciation Right, Dividend
         Equivalent or Stock Payment or interest or right therein shall be
         liable for the debts, contracts or engagements of the Holder or his
         successors in interest or shall be subject to disposition by transfer,
         alienation, anticipation, pledge, encumbrance, assignment or any other
         means whether such disposition be voluntary or involuntary or by
         operation of law by judgment, levy, attachment, garnishment or any
         other legal or equitable proceedings (including bankruptcy), and any
         attempted disposition thereof shall be null and void and of no effect,
         except to the extent that such disposition is permitted by the
         preceding sentence; and

                           (iii) During the lifetime of the Holder, only he may
         exercise an Option or other Award (or any portion thereof) granted to
         him under the Plan, unless it has been disposed of pursuant to a QDRO;
         after the death of the Holder, any exercisable portion of an Option or
         other Award may, prior to the time when such portion becomes
         unexercisable under the Plan or the applicable Award Agreement, be
         exercised by his personal representative or by any person empowered to
         do so under the deceased Holder's will or under the then applicable
         laws of descent and distribution.

                  (b) Notwithstanding Section 11.1(a), the Administrator, in its
         sole discretion, may determine to permit a Holder to transfer a
         Non-Qualified Stock Option to any one or more Permitted Transferees (as
         defined below), subject to the following terms and conditions: (i) a
         Non-Qualified Stock Option transferred to a Permitted Transferee shall
         not be assignable or transferable by the Permitted Transferee other
         than by will or the laws of descent and distribution; (ii) any
         Non-Qualified Stock Option which is transferred to a Permitted
         Transferee shall continue to be subject to all the terms and conditions
         of the Non-Qualified Stock Option as applicable to the original Holder
         (other than the ability to further transfer the Non-Qualified Stock
         Option); and (iii) the Holder and the Permitted Transferee shall
         execute any and all documents requested by the Administrator,
         including, without limitation documents to (A) confirm the status of
         the transferee

                                       24
<PAGE>   25

         as a Permitted Transferee, (B) satisfy any requirements for an
         exemption for the transfer under applicable federal and state
         securities laws and (C) evidence the transfer. For purposes of this
         Section 11.1(b), "Permitted Transferee" shall mean, with respect to a
         Holder, any child, stepchild, grandchild, parent, stepparent,
         grandparent, spouse, former spouse, sibling, niece, nephew,
         mother-in-law, father-in-law, son-in-law, daughter-in-law,
         brother-in-law, or sister-in-law, including adoptive relationships, any
         person sharing the Holder's household (other than a tenant or
         employee), a trust in which these persons have more than fifty percent
         of the beneficial interest, a foundation in which these persons (or the
         Holder) control the management of assets, and any other entity in which
         these persons (or the Holder) own more than fifty percent of the voting
         interests, or any other transferee specifically approved by the
         Committee after taking into account any state or federal tax or
         securities laws applicable to transferable Non-Qualified Stock Options.

         11.2 Amendment, Suspension or Termination of the Plan. Except as
otherwise provided in this Section 11.2, the Plan may be wholly or partially
amended or otherwise modified, suspended or terminated at any time or from time
to time by the Board or the Committee. However, without approval of the
Company's stockholders given within twelve months before or after the action by
the Board or the Committee, no action of the Board or the Committee may, except
as provided in Section 11.3, increase the limits imposed in Section 2.1 on the
maximum number of shares which may be issued under the Plan. No amendment,
suspension or termination of the Plan shall, without the consent of the Holder
alter or impair any rights or obligations under any Award theretofore granted or
awarded, unless the Award itself otherwise expressly so provides. No Awards may
be granted or awarded during any period of suspension or after termination of
the Plan, and in no event may any Incentive Stock Option be granted under the
Plan after the first to occur of the following events:

                  (a) The expiration of ten years from the date the Plan is
         adopted by the Board; or

                  (b) The expiration of ten years from the date the Plan is
         approved by the Company's stockholders under Section 11.4.

In addition, if the Board determines that Awards other than Options or Stock
Appreciation Rights which may be granted to Section 162(m) Participants should
continue to be eligible to qualify as performance-based compensation under
Section 162(m)(4)(C) of the Code, the Performance Criteria must be disclosed to
and approved by the Company's stockholders no later than the first stockholder
meeting that occurs in the fifth year following the year in which the Company's
stockholders previously approved the Performance Criteria.

         11.3 Changes in Class A Common Stock or Assets of the Company,
Acquisition or Liquidation of the Company, Change in Control and Other Corporate
Events.

                  (a) Subject to Section 11.3(d), in the event that the
         Administrator determines that any dividend or other distribution
         (whether in the form of cash,

                                       25
<PAGE>   26

         Class A Common Stock, other securities, or other property),
         recapitalization, reclassification, stock split, reverse stock split,
         reorganization, merger, consolidation, split-up, spin-off, combination,
         repurchase, liquidation, dissolution, or sale, transfer, exchange or
         other disposition of all or substantially all of the assets of the
         Company (including, but not limited to, a Corporate Transaction), or
         exchange of Class A Common Stock or other securities of the Company,
         issuance of warrants or other rights to purchase Class A Common Stock
         or other securities of the Company, or other similar corporate
         transaction or event, in the Administrator's, affects the Class A
         Common Stock such that an adjustment is determined by the Administrator
         to be appropriate in order to prevent dilution or enlargement of the
         benefits or potential benefits intended to be made available under the
         Plan or with respect to an Award, then the Administrator shall, in such
         manner as it may deem equitable, adjust any or all of:

                           (i) the number and kind of shares of Class A Common
         Stock (or other securities or property) with respect to which Awards
         may be granted or awarded (including, but not limited to, adjustments
         of the limitations in Section 2.1 on the maximum number and kind of
         shares which may be issued and adjustments of the Award Limit),

                           (ii) the number and kind of shares of Class A Common
         Stock (or other securities or property) subject to outstanding Options,
         Performance Awards, Stock Appreciation Rights, Dividend Equivalents, or
         Stock Payments, and in the number and kind of shares of outstanding
         Restricted Stock or Deferred Stock, and

                           (iii) the grant or exercise price with respect to any
         Award.

                  (b) Subject to Sections 11.3(b)(vii) and 11.3(d), in the event
         of any Corporate Transaction or other transaction or event described in
         Section 11.3(a) or any unusual or nonrecurring transactions or events
         affecting the Company, any affiliate of the Company, or the financial
         statements of the Company or any affiliate, or of changes in applicable
         laws, regulations, or accounting principles, the Administrator, in its
         sole and absolute discretion, and on such terms and conditions as it
         deems appropriate, either by the terms of the Award or by action taken
         prior to the occurrence of such transaction or event and either
         automatically or upon the Holder's request, is hereby authorized to
         take any one or more of the following actions whenever the
         Administrator determines that such action is appropriate in order to
         prevent dilution or enlargement of the benefits or potential benefits
         intended to be made available under the Plan or with respect to any
         Award under the Plan, to facilitate such transactions or events or to
         give effect to such changes in laws, regulations or principles:

                           (i) To provide for either the purchase of any such
         Award for an amount of cash equal to the amount that could have been
         attained upon the exercise of such Award or realization of the Holder's
         rights had such Award been

                                       26
<PAGE>   27

         currently exercisable or payable or fully vested or the replacement of
         such Award with other rights or property selected by the Administrator
         in its sole discretion;

                           (ii) To provide that the Award cannot vest, be
         exercised or become payable after such event;

                           (iii) To provide that such Award shall be exercisable
         as to all shares covered thereby, notwithstanding anything to the
         contrary in (i) Section 5.3 or 5.4 or (ii) the provisions of such
         Award;

                           (iv) To provide that such Award be assumed by the
         successor or survivor corporation, or a parent or subsidiary thereof,
         or shall be substituted for by similar options, rights or awards
         covering the stock of the successor or survivor corporation, or a
         parent or subsidiary thereof, with appropriate adjustments as to the
         number and kind of shares and prices; and

                           (v) To make adjustments in the number and type of
         shares of Class A Common Stock (or other securities or property)
         subject to outstanding Awards, and in the number and kind of
         outstanding Restricted Stock or Deferred Stock and/or in the terms and
         conditions of (including the grant or exercise price), and the criteria
         included in, outstanding options, rights and awards and options, rights
         and awards which may be granted in the future.

                           (vi) To provide that, for a specified period of time
         prior to such event, the restrictions imposed under an Award Agreement
         upon some or all shares of Restricted Stock or Deferred Stock may be
         terminated, and, in the case of Restricted Stock, some or all shares of
         such Restricted Stock may cease to be subject to repurchase under
         Section 7.5 or forfeiture under Section 7.4 after such event.

                           (vii) None of the foregoing discretionary actions
         taken under this Section 11.3(b) shall be permitted with respect to
         Options granted under Section 4.5 to Independent Directors or
         Independent Director Nominees to the extent that such discretion would
         be inconsistent with the applicable exemptive conditions of Rule 16b-3.
         In the event of a Change in Control or a Corporate Transaction, to the
         extent that the Board does not have the ability under Rule 16b-3 to
         take or to refrain from taking the discretionary actions set forth in
         Section 11.3(b)(iii) above, each Option granted to an Independent
         Director or Independent Director Nominees shall be exercisable as to
         all shares covered thereby upon such Change in Control or during the
         five days immediately preceding the consummation of such Corporate
         Transaction and subject to such consummation, notwithstanding anything
         to the contrary in Section 5.4 or the vesting schedule of such Options.
         In the event of a Corporate Transaction, to the extent that the Board
         does not have the ability under Rule 16b-3 to take or to refrain from
         taking the discretionary actions set forth in Section 11.3(b)(ii)
         above, no Option granted to an Independent Director or Independent
         Director Nominee may be exercised following such

                                       27
<PAGE>   28

         Corporate Transaction unless such Option is, in connection with such
         Corporate Transaction, either assumed by the successor or survivor
         corporation (or parent or subsidiary thereof) or replaced with a
         comparable right with respect to shares of the capital stock of the
         successor or survivor corporation (or parent or subsidiary thereof).

                  (c) Subject to Section 11.3(d) and 11.8, the Administrator
         may, in its discretion, include such further provisions and limitations
         in any Award, agreement or certificate, as it may deem equitable and in
         the best interests of the Company.

                  (d) With respect to Awards described in Article VII or VIII
         which are granted to Section 162(m) Participants and are intended to
         qualify as performance-based compensation under Section 162(m)(4)(C),
         no adjustment or action described in this Section 11.3 or in any other
         provision of the Plan shall be authorized to the extent that such
         adjustment or action would cause such Award to fail to so qualify under
         Section 162(m)(4)(C), or any successor provisions thereto. No
         adjustment or action described in this Section 11.3 or in any other
         provision of the Plan shall be authorized to the extent that such
         adjustment or action would cause the Plan to violate Section 422(b)(1)
         of the Code. Furthermore, no such adjustment or action shall be
         authorized to the extent such adjustment or action would result in
         short-swing profits liability under Section 16 or violate the exemptive
         conditions of Rule 16b-3 unless the Administrator determines that the
         Award is not to comply with such exemptive conditions. The number of
         shares of Class A Common Stock subject to any Award shall always be
         rounded to the next whole number.

         11.4 Approval of Plan by Stockholders. The Plan will be submitted for
the approval of the Company's stockholders within twelve months after the date
of the Board's initial adoption of the Plan. Awards may be granted or awarded
prior to such stockholder approval, provided that such Awards shall not be
exercisable nor shall such Awards vest prior to the time when the Plan is
approved by the stockholders, and provided further that if such approval has not
been obtained at the end of said twelve-month period, all Awards previously
granted or awarded under the Plan shall thereupon be canceled and become null
and void.

         11.5 Tax Withholding. The Company shall be entitled to require payment
in cash or deduction from other compensation payable to each Holder of any sums
required by federal, state or local tax law to be withheld with respect to the
issuance, vesting, exercise or payment of any Award. The Administrator may in
its discretion and in satisfaction of the foregoing requirement allow such
Holder to elect to have the Company withhold shares of Class A Common Stock
otherwise issuable under such Award (or allow the return of shares of Class A
Common Stock) having a Fair Market Value equal to the sums required to be
withheld.

         11.6 Loans. The Committee may, in its discretion, extend one or more
loans to key Employees in connection with the exercise or receipt of an Award
granted or awarded under

                                       28
<PAGE>   29

the Plan, or the issuance of Restricted Stock or Deferred Stock awarded under
the Plan. The terms and conditions of any such loan shall be set by the
Committee.

         11.7 Forfeiture Provisions. Pursuant to its general authority to
determine the terms and conditions applicable to Awards under the Plan, the
Administrator shall have the right (to the extent consistent with the applicable
exemptive conditions of Rule 16b-3) to provide, in the terms of Awards made
under the Plan, or to require a Holder to agree by separate written instrument,
that (i) any proceeds, gains or other economic benefit actually or
constructively received by the Holder upon any receipt or exercise of the Award,
or upon the receipt or resale of any Class A Common Stock underlying the Award,
must be paid to the Company, and (ii) the Award shall terminate and any
unexercised portion of the Award (whether or not vested) shall be forfeited, if
(a) a Termination of Employment, Termination of Consultancy or Termination of
Directorship occurs prior to a specified date, or within a specified time period
following receipt or exercise of the Award, or (b) the Holder at any time, or
during a specified time period, engages in any activity in competition with the
Company, or which is inimical, contrary or harmful to the interests of the
Company, as further defined by the Committee (or the Board, as applicable) or
the Holder incurs a Termination of Employment, Termination of Consultancy or
Termination of Directorship for cause.

         11.8 Limitations Applicable to Section 16 Persons and Performance-Based
Compensation. Notwithstanding any other provision of the Plan, the Plan, and any
Award granted or awarded to any individual who is then subject to Section 16 of
the Exchange Act, shall be subject to any additional limitations set forth in
any applicable exemptive rule under Section 16 of the Exchange Act (including
any amendment to Rule 16b-3 of the Exchange Act) that are requirements for the
application of such exemptive rule. To the extent permitted by applicable law,
the Plan and Awards granted or awarded hereunder shall be deemed amended to the
extent necessary to conform to such applicable exemptive rule. Furthermore,
notwithstanding any other provision of the Plan or any Award described in
Article VII or VIII which is granted to a Section 162(m) Participant and is
intended to qualify as performance-based compensation as described in Section
162(m)(4)(C) of the Code shall be subject to any additional limitations set
forth in Section 162(m) of the Code (including any amendment to Section 162(m)
of the Code) or any regulations or rulings issued thereunder that are
requirements for qualification as performance-based compensation as described in
Section 162(m)(4)(C) of the Code, and the Plan shall be deemed amended to the
extent necessary to conform to such requirements.

         11.9 Effect of Plan Upon Options and Compensation Plans. The adoption
of the Plan shall not affect any other compensation or incentive plans in effect
for the Company or any Subsidiary. Nothing in the Plan shall be construed to
limit the right of the Company (i) to establish any other forms of incentives or
compensation for Employees, Directors or Consultants of the Company or any
Subsidiary or (ii) to grant or assume options or other rights or awards
otherwise than under the Plan in connection with any proper corporate purpose
including but not by way of limitation, the grant or assumption of options in
connection with the acquisition by purchase, lease, merger, consolidation or
otherwise, of the business, stock or assets of any corporation, partnership,
limited liability company, firm or association.

                                       29
<PAGE>   30

         11.10 Compliance with Laws. The Plan, the granting and vesting of
Awards under the Plan and the issuance and delivery of shares of Class A Common
Stock and the payment of money under the Plan or under Awards granted or awarded
hereunder are subject to compliance with all applicable federal and state laws,
rules and regulations (including but not limited to state and federal securities
law and federal margin requirements) and to such approvals by any listing,
regulatory or governmental authority as may, in the opinion of counsel for the
Company, be necessary or advisable in connection therewith. Any securities
delivered under the Plan shall be subject to such restrictions, and the person
acquiring such securities shall, if requested by the Company, provide such
assurances and representations to the Company as the Company may deem necessary
or desirable to assure compliance with all applicable legal requirements. To the
extent permitted by applicable law, the Plan and Awards granted or awarded
hereunder shall be deemed amended to the extent necessary to conform to such
laws, rules and regulations.

         11.11 Titles. Titles are provided herein for convenience only and are
not to serve as a basis for interpretation or construction of the Plan.

         11.12 Governing Law. The Plan and any agreements hereunder shall be
administered, interpreted and enforced under the internal laws of the State of
Delaware without regard to conflicts of laws thereof.

              [THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

                                       30
<PAGE>   31

                                     * * * *

                  I hereby certify that the foregoing Plan was duly adopted by
the Board of Directors of Beasley Broadcast Group, Inc. on February 10, 2000.

                  Executed on this 10th day of February, 2000.

                                 /s/ CAROLINE BEASLEY
                                 -----------------------------------------------
                                 Name:  B. Caroline Beasley

                                 Title: Vice President, Chief Financial Officer,
                                        Secretary and Treasurer

                                       31

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