Document:

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                                                                     Exhibit 4.3

                          Certificate of Designations,
                    Voting Powers, Preferences, Limitations,
                      Restrictions, and Relative Rights of
                              Series A Convertible
                        Preferred Stock, $.0001 Par Value

                         Pursuant to Section 151 of the
                General Corporation Law of the State of Delaware

         Hugo International Telecom, Inc., a Delaware corporation (the
"Corporation"), does hereby certify that the following resolution has been duly
adopted by the Board of Directors of the Corporation (the "Board"):

         RESOLVED, that, pursuant to the authority expressly granted to and
vested in the Board by the provisions of the Certificate of Incorporation (the
"Certificate of Incorporation") of the Corporation, there hereby is created a
series of Preferred Stock, $.0001 par value, which series shall have the
following designations, powers, preferences, rights, qualifications, limitations
and restrictions (in addition to the designations, powers, preferences, rights,
qualifications, limitations and restrictions set forth in the Certificate of
Incorporation which are applicable to the Preferred Stock).

         1.       Designation; Number of Shares.

         The designation of said series of Preferred Stock shall be Series A
Convertible Preferred Stock (the "Series A Preferred Stock"). The number of
shares of Series A Preferred Stock shall initially be 400,000, subject to
adjustment for stock dividends, combinations or splits with respect to such
shares. Each share of Series A Preferred Stock shall have a stated value equal
to $5.00 (as adjusted for any stock dividends, combinations or splits with
respect to such shares) (the "Stated Value"). The date on which any share of
Series A Preferred Stock is issued shall hereinafter be referred to as the
"Original Issue Date" with respect to each such share.

         2.       Dividends.

         Except as required by any applicable law, shares of Series A Preferred
Stock shall not entitle their holders to any dividend rights.
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         3.       Liquidation Rights.

         (a) Upon the dissolution, liquidation or winding-up of the Corporation,
whether voluntary or involuntary, the holders of the Series A Preferred Stock
shall be entitled to receive, before any payment or distribution shall be made
on any shares of Common Stock or other class of stock junior to the Series A
Preferred Stock (the Common Stock and such junior stock being hereinafter
collectively the "Junior Stock"), out of the assets of the Corporation available
for distribution to stockholders, the Stated Value per share of Series A
Preferred Stock. Upon the payment in full of all amounts due to holders of the
Series A Preferred Stock, the holders of the Common Stock of the Corporation and
any other shares of Junior Stock shall receive all remaining assets of the
Corporation legally available for distribution. If the assets of the Corporation
available for distribution to the holders of the Series A Preferred Stock shall
be insufficient to permit payment in full of the amounts payable as aforesaid to
the holders of Series A Preferred Stock upon such liquidation, dissolution or
winding-up, whether voluntary or involuntary, then all such assets of the
Corporation shall be distributed, to the exclusion of the holders of shares of
Junior Stock, ratably among the holders of the Series A Preferred Stock and any
other stock of equal ranking.

         (b) Neither the purchase nor the redemption by the Corporation of
shares of any class of stock, nor the merger or consolidation of the Corporation
with or into any other corporation or corporations, nor the sale or transfer by
the Corporation of all or any part of its assets, shall be deemed to be a
liquidation, dissolution or winding-up of the Corporation for the purposes of
this paragraph 3. Holders of the Series A Preferred Stock shall not be entitled,
upon the liquidation, dissolution or winding-up of the Corporation, to receive
any amounts with respect to such stock other than the amounts referred to in
this paragraph 3.

         4.       Redemption.

         (a) At any time after the second anniversary of the Original Issue Date
or, if the shares of Common Stock issuable upon conversion of the Shares can be
resold without restriction under the Securities Act of 1933, or at any time if
the market price of the Company's Common Stock shall exceed $7.50 per share for
15 consecutive trading days, the Corporation shall have the right to redeem all
shares of Series A Preferred Stock (such redeemed shares being referred to as
the "Redemption Shares"), by paying in cash, out of funds legally available
therefor, a sum per share equal to the Stated Value plus all accrued but unpaid
dividends payable with respect to the Series A Preferred Stock (the "Redemption
Amount").

         (b) Notice of the redemption of the Series A Preferred Stock by the
Corporation shall be given to the holders thereof specifying the number of
shares to be redeemed, the date fixed for redemption (the "Redemption Date"),
the Redemption Amount per share and the address where payment of the Redemption
Amount per share is to be paid upon the surrender of certificates representing
shares of Series A Preferred Stock.

         (c) On and after the applicable Redemption Date and notwithstanding
that any certificate for shares of Series A Preferred Stock so called for
redemption shall not have been surrendered for cancellation, the Redemption
Shares shall no longer be deemed outstanding and

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all rights of the holders thereof as stockholders of the Corporation shall cease
and terminate to the extent of such redeemed shares, except the right to receive
the Redemption Amount per share as hereinafter provided and except any
conversion rights not theretofore expired. Such Redemption Shares shall not be
reissued, and the Corporation may from time to time take such appropriate action
as may be necessary to reduce the authorized Series A Preferred Stock
accordingly.

         (d) The holders of record of the Series A Preferred Stock shall receive
the Redemption Amount per share upon actual delivery of the certificates for the
Redemption Shares to the place so specified in the redemption notice, such
certificates, if required, to be duly endorsed in blank or accompanied by proper
instruments of assignment and transfer, or duly endorsed in blank.

         (e) Any partial redemption of the Series A Preferred Stock shall be
made pro rata among the holders of the shares of Series A Preferred Stock in
accordance with the number of shares held by each of them on the stock transfer
records of the Corporation.

         5.       Conversion into Common Stock.

         (a) Rights to Convert. Subject to subparagraph (d) of this Section 5,
each share of Series A Preferred Stock shall be convertible, at the option of
the holder thereof, at any time after the date of issuance of such share, at the
office of the Corporation or any transfer agent for the Series A Preferred
Stock, into such number of fully paid and nonassessable shares of Common Stock
as is determined by dividing the Stated Value by the then effective conversion
price, as last adjusted and then currently in effect. The initial conversion
price per share at which shares of Common Stock shall be issuable upon
conversion of shares of the Series A Preferred Stock after the date hereof shall
be $5.00 (the "Conversion Price"); provided, however, that such Conversion Price
shall be subject to adjustment as set forth in subparagraph (d) of this Section
5.

         (b) Mandatory Conversion. Subject to subparagraph (d) of this Section
5, on the third anniversary of the Original Issue Date each share of Series A
Preferred Stock shall be automatically converted into such number of fully paid
and nonassessable shares of Common Stock as is determined by dividing the Stated
Value by the then effective Conversion Price, as last adjusted and then
currently in effect.

         (c) Mechanics of Conversion. Before any holder of Series A Preferred
Stock shall be entitled to convert the same into shares of Common Stock, such
holder shall surrender the certificate or certificates therefor, duly endorsed,
at the office of the Corporation or of any transfer agent for the Series A
Preferred Stock, and shall give written notice by mail, postage prepaid, to the
Corporation at its principal corporate office, of the election to convert the
same and shall state therein the name or names in which the certificate or
certificates for shares of Common Stock are to be issued. The Corporation shall,
as soon as practicable thereafter, issue and deliver at such office to such
holder of Series A Preferred Stock, or to the nominee or nominees of such
holder, a certificate or certificates for the number of shares of Common Stock
to which such holder shall be entitled as aforesaid. Such conversion shall be
deemed to have

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been made immediately prior to the close of business on the date of such
surrender of the shares of Series A Preferred Stock to be converted, and the
person or persons entitled to receive the shares of Common Stock issuable upon
such conversion shall be treated for all purposes as the record holder or
holders of such shares of Common Stock on such date.

         (d) Adjustments to Conversion Price for Certain Other Events.

                  (i) Adjustments for Subdivisions, Combinations or
Consolidation of Common Stock. In the event the outstanding shares of Common
Stock shall be subdivided (by stock split, stock dividend, or otherwise) into a
greater number of shares of Common Stock, the Conversion Price then in effect
shall, concurrently with the effectiveness of such subdivision, be
proportionately decreased. In the event the outstanding shares of Common Stock
shall be combined or consolidated, by reclassification or otherwise, into a
lesser number of shares of Common Stock, the Conversion Price then in effect
shall, concurrently with the effectiveness of such combination or consolidation,
be proportionately increased.

                  (ii) Adjustments for Other Distributions. In the event the
Corporation at any time or from time to time makes, or fixes a record date for
the determination of holders of Common Stock entitled to receive, any
distribution payable in securities of the Corporation other than shares of
Common Stock and other than as otherwise adjusted in this Section 5, then and in
each such event provision shall be made so that the holders of Series A
Preferred Stock shall receive upon conversion thereof, in addition to the number
of shares of Common Stock receivable thereupon, the amount of securities of the
Corporation which such holders would have received had their respective Series A
Preferred Stock been converted into Common Stock on the date of such event and
had they thereafter, during the period from the date of such event to and
including the date of conversion, retained such securities receivable by them as
aforesaid during such period, subject to all other adjustments called for during
such period under this Section 5 with respect to the rights of the holders of
the Series A Preferred Stock.

                  (iii) Adjustments for Reclassification, Exchange and
Substitution. If the Common Stock issuable upon conversion of the Series A
Preferred Stock shall be changed into the same or a different number of shares
of any other class or classes of stock, whether by capital reorganization,
reclassification or otherwise (other than a subdivision or combination of shares
provided for above), the Conversion Price then in effect shall, concurrently
with the effectiveness of such reorganization or reclassification, be
proportionately adjusted such that the respective Series A Preferred Stock shall
be convertible into, in lieu of the number of shares of Common Stock which the
holders would otherwise have been entitled to receive, a number of shares of
such other class or classes of stock equivalent to the number of shares of
Common Stock that would have been subject to receipt by the holders upon
conversion of the respective shares of Series A Preferred Stock immediately
before that change.

         (e) No Impairment. The Corporation will not, by amendment of its
Certificate of Incorporation or through any reorganization, recapitalization,
transfer of assets, consolidation, merger, dissolution, issue or sale of
securities or any other voluntary action, avoid or seek to avoid the observance
or performance of any of the terms to be observed or performed hereunder by the
Corporation, but will at all times in good faith assist in the carrying out of
all the

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provisions of this Section 5 and in the taking of all such action as may be
necessary or appropriate in order to protect the conversion rights of the
holders of the Series A Preferred Stock against impairment.

         (f) No Fractional Shares and Certificate as to Adjustments.

                  (i) No fractional shares shall be issuable upon conversion of
any share or shares of Series A Preferred Stock; and the number of shares of
Common Stock to be issued shall be rounded down to the nearest whole share. If
any fractional interest in a share of Common Stock would, except for the
provisions of this subparagraph (f), be deliverable upon conversion of the
Series A Preferred Stock then being converted by a stockholder, the Corporation
shall pay to the holders of such converted stock an amount in cash equal to the
current market value of such fractional interest, as determined by the Board of
Directors.

                  (ii) Upon the occurrence of each adjustment or readjustment of
the Conversion Price pursuant to this Section 5, the Corporation, at its
expense, shall promptly compute such adjustment or readjustment in accordance
with the terms hereof and prepare and furnish to each holder of Series A
Preferred Stock a certificate of its Chief Financial Officer setting forth such
adjustment or readjustment and showing in detail the facts upon which such
adjustment or readjustment is based. The Corporation shall, upon the written
request at any time of any holder of Series A Preferred Stock, furnish or cause
to be furnished to such holder a like certificate setting forth (A) such
adjustment and readjustment, (B) the Conversion Price at the time in effect, and
(C) the number of shares of Common Stock and the amount, if any, of other
property which at the time would be received upon the conversion of Series A
Preferred Stock.

         (g) Notices of Record Date. Any notice required by the provisions of
this Section 5 to be given to the holders of shares of Series A Preferred Stock
shall be deemed given three days after deposit in the United States first class,
certified or registered mail, postage prepaid, and addressed to each holder of
record at his address appearing on the books of the Corporation.

         In case at any time the Corporation shall propose:

                  (i) to pay any dividend or distribution payable in shares upon
its Common Stock or make any distribution (other than cash dividends) to the
holders of its Common Stock or other class of preferred stock other than in
accordance with the terms thereof; or

                  (ii) to offer for subscription to the holders of its Common
Stock or Preferred Stock, other than in accordance with the terms thereof, any
additional shares of any class or any other rights; or

                  (iii) any capital reorganization or reclassification of its
shares, or the consolidation or merger of the Corporation with another
corporation; or

                  (iv) the voluntary dissolution, liquidation or winding-up of
the Corporation;

then, and in any one or more of said cases, the Corporation shall cause at least
fifteen (15) days prior notice of the date on which (A) the books of the
Corporation shall close, or a record be

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taken for such stock dividend, distribution or subscription rights, or (B) such
capital reorganization, reclassification, consolidation, merger, dissolution,
liquidation or winding-up shall take place, as the case may be, to be mailed to
the transfer agent for the Series A Preferred Stock and for the Common Stock and
to the holders of record of the Series A Preferred Stock.

         (h) Reservation of Stock Issuable Upon Conversion. The Corporation
shall at all times reserve and keep available out of its authorized but unissued
shares of Common Stock solely for the purpose of effecting the conversion of the
shares of the Series A Preferred Stock such number of its shares of Common Stock
as shall from time to time be sufficient to effect the conversion of all
outstanding shares of the Series A Preferred Stock; and if at any time the
number of authorized but unissued shares of Common Stock shall not be sufficient
to effect the conversion of all then outstanding shares of the Series A
Preferred Stock, the Corporation will take such corporate action as may, in the
opinion of its counsel, be necessary to increase its authorized but unissued
shares of Common Stock to such number of shares as shall be sufficient for such
purpose.

         (i) The Corporation shall pay the amount of any and all issue taxes
which may be imposed in respect of any issue or delivery of stock upon the
conversion of any shares of Series A Preferred Stock, but all transfer taxes
that may be payable in respect of any change of ownership of Series A Preferred
Stock, or any rights represented thereby, or of stock receivable upon conversion
thereof, shall be paid by the person or persons surrendering such stock for
conversion.

         6.       Voting Rights.

         The holders of Series A Preferred Stock shall have the right to one
vote for each share of Common Stock into which such Series A Preferred Stock
could then be converted and, with respect to such vote, such holders shall have
full voting rights and powers equal to the voting rights and powers of the
holders of Common Stock, and shall be entitled to notice of any stockholders'
meetings in accordance with the By-laws of the Corporation, and shall be
entitled to vote, together with holders of Common Stock, with respect to any
question upon which holders of Common Stock have the right to vote.

         7.       Status of Converted Stock.

         In case any shares of Series A Preferred Stock shall be converted
pursuant to Paragraph 5 hereof, the shares so converted shall resume the status
of authorized but unissued shares of Preferred Stock and shall no longer be
designated as Series A Preferred Stock.

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         IN WITNESS WHEREOF, the Corporation has caused this Certificate to be
duly executed on its behalf by its Chief Executive Officer this ____ day of
June, 2001.

                                       HUGO INTERNATIONAL TELECOM, INC.

                                       By:
                                          --------------------------------------
                                            David W. Foden
                                            Chief Executive Officer

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                                                                   EXHIBIT 10.16

                         HUGO INTERNATIONAL TELECOM INC.
                            2001 STOCK INCENTIVE PLAN

1.       ESTABLISHMENT, PURPOSE AND TYPES OF AWARDS

         HUGO INTERNATIONAL TELECOM INC. a Delaware corporation (the "Company"),
hereby establishes the 2001 STOCK INCENTIVE PLAN (the "Plan"). The purpose of
the Plan is to promote the long-term growth and profitability of the Company by
(i) providing key people with incentives to improve stockholder value and to
contribute to the growth and financial success of the Company, and (ii) enabling
the Company to attract, retain and reward the best-available persons.

         The Plan permits the granting of stock options (including incentive
stock options qualifying under Code Section 422 and nonqualified stock options),
stock appreciation rights, restricted or unrestricted stock awards, phantom
stock, performance awards, other stock-based awards, or any combination of the
foregoing.

2.       DEFINITIONS

         Under this Plan, except where the context otherwise indicates, the
following definitions apply:

         (a) "Affiliate" shall mean any entity, whether now or hereafter
existing, which controls, is controlled by, or is under common control with, the
Company (including, but not limited to, joint ventures, limited liability
companies, and partnerships). For this purpose, "control" shall mean ownership
of 50% or more of the total combined voting power or value of all classes of
stock or interests of the entity.

         (b) "Award" shall mean any stock option, stock appreciation right,
stock award, phantom stock award, performance award, or other stock-based award.

         (c)      "Board" shall mean the Board of Directors of the Company.

         (d)      "Change in Control" means:

                  (i) an acquisition (other than from the Company) in a
         transaction, or a series of related transactions, by any person, entity
         or "group," within the meaning of Section 13(d)(3) or 14(d)(2) of the
         Securities Exchange Act of 1934 (the "Exchange Act"), (excluding for
         this purpose, (A) the Company or its subsidiaries, (B) any employee
         benefit plan of the Company or its subsidiaries which acquires
         beneficial ownership of voting securities of the Company, (C) an
         underwriter temporarily holding securities pursuant to an offering of
         such securities, or (D) any corporation owned, directly or
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         indirectly, by the stockholders of the Company in substantially the
         same proportions as their ownership of the then outstanding voting
         securities of the Company entitled to vote generally in the election of
         directors) of beneficial ownership, within the meaning of Rule 13d-3
         promulgated under the Exchange Act, of 50% or more of either the then
         outstanding shares of common stock or the combined voting power of the
         Company's then outstanding voting securities entitled to vote generally
         in the election of directors (the "Company Voting Stock");

                  (ii) the effective time of any merger, share exchange,
         consolidation or other reorganization or business combination of the
         Company if immediately after such transaction persons who hold a
         majority of the outstanding voting securities entitled to vote
         generally in the election of directors of the surviving entity (or the
         entity owning 100% of such surviving entity) are not persons who held
         the Company Voting Stock immediately prior to such transaction;

                  (iii) the closing of a sale or conveyance of all or
         substantially all of the assets of the Company;

                  (iv) individuals who were the Board's nominees for election as
         directors immediately prior to a meeting of the stockholders of the
         Company involving an actual or threatened election contest relating to
         the election of the directors of the Company, as such terms are used in
         Rule 14a-11 of Regulation 14A promulgated under the Exchange Act, cease
         to constitute a majority of the Board following the election; or

                  (v) the dissolution or liquidation of the Company;

         provided, however, that the term "Change in Control" does not include a
public offering of capital stock of the Company that is effected pursuant to a
registration statement filed with, and declared effective by, the Securities and
Exchange Commission under the Securities Act of 1933.

         (e) "Code" shall mean the Internal Revenue Code of 1986, as amended,
and any regulations promulgated thereunder.

         (f) "Common Stock" shall mean shares of common stock of the Company,
par value $0.0001 per share.

         (g) "Fair Market Value" shall mean, with respect to a share of the
Company's Common Stock for any purpose on a particular date, the value
determined by the Administrator in good faith. However, if the Common Stock is
registered under Section 12(b) or 12(g) of the Securities Exchange Act of 1934,
as amended, and listed for trading on a national exchange or market, "Fair
Market Value" shall mean, as applicable, (i) either the closing price or the
average of the high and low sale price on the relevant date, as determined in
the Administrator's discretion, quoted on the New York Stock Exchange, the
American Stock Exchange, or the Nasdaq National Market; (ii) the last sale price
on the relevant date quoted on the Nasdaq SmallCap Market; (iii) the average of
the high bid and low asked prices on the relevant date

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quoted on the Nasdaq OTC Bulletin Board Service or by the National Quotation
Bureau, Inc. or a comparable service as determined in the Administrator's
discretion; or (iv) if the Common Stock is not quoted by any of the above, the
average of the closing bid and asked prices on the relevant date furnished by a
professional market maker for the Common Stock, or by such other source,
selected by the Administrator. If no public trading of the Common Stock occurs
on the relevant date, then Fair Market Value shall be determined as of the next
preceding date on which trading of the Common Stock does occur. For all purposes
under this Plan, the term "relevant date" as used in this Section 2.1(g) shall
mean either the date as of which Fair Market Value is to be determined or the
next preceding date on which public trading of the Common Stock occurs, as
determined in the Administrator's discretion.

         (h) "Stock Option Agreement" shall mean a written document
memorializing the terms and conditions of an Award granted pursuant to the Plan
and shall incorporate the terms of the Plan.

3.       ADMINISTRATION

         (a) Administration of the Plan. The Plan shall be administered by the
Board or by such committee or committees as may be appointed by the Board from
time to time (the Board, committee or committees hereinafter referred to as the
"Administrator").

         (b) Powers of the Administrator. The Administrator shall have all the
powers vested in it by the terms of the Plan, such powers to include authority,
in its sole and absolute discretion, to grant Awards under the Plan, prescribe
Stock Option Agreements evidencing such Awards and establish programs for
granting Awards.

         The Administrator shall have full power and authority to take all other
actions necessary to carry out the purpose and intent of the Plan, including,
but not limited to, the authority to: (i) determine the eligible persons to
whom, and the time or times at which Awards shall be granted; (ii) determine the
types of Awards to be granted; (iii) determine the number of shares to be
covered by or used for reference purposes for each Award; (iv) impose such
terms, limitations, restrictions and conditions upon any such Award as the
Administrator shall deem appropriate; (v) modify, amend, extend or renew
outstanding Awards, or accept the surrender of outstanding Awards and substitute
new Awards (provided however, that, except as provided in Section 7(d) of the
Plan, any modification that would materially adversely affect any outstanding
Award shall not be made without the consent of the holder); (vi) accelerate or
otherwise change the time in which an Award may be exercised or becomes payable
and to waive or accelerate the lapse, in whole or in part, of any restriction or
condition with respect to such Award, including, but not limited to, any
restriction or condition with respect to the vesting or exercisability of an
Award following termination of any grantee's employment or other relationship
with the Company; and (vii) establish objectives and conditions, if any, for
earning Awards and determining whether Awards will be paid after the end of a
performance period.

         The Administrator shall have full power and authority, in its sole and
absolute discretion, to administer and interpret the Plan and to adopt and
interpret such rules, regulations,

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agreements, guidelines and instruments for the administration of the Plan and
for the conduct of its business as the Administrator deems necessary or
advisable.

         (c) Non-Uniform Determinations. The Administrator's determinations
under the Plan (including without limitation, determinations of the persons to
receive Awards, the form, amount and timing of such Awards, the terms and
provisions of such Awards and the Stock Option Agreements evidencing such
Awards) need not be uniform and may be made by the Administrator selectively
among persons who receive, or are eligible to receive, Awards under the Plan,
whether or not such persons are similarly situated.

         (d) Limited Liability. To the maximum extent permitted by law, no
member of the Administrator shall be liable for any action taken or decision
made in good faith relating to the Plan or any Award thereunder.

         (e) Indemnification. To the maximum extent permitted by law and by the
Company's charter and by-laws, the members of the Administrator shall be
indemnified by the Company in respect of all their activities under the Plan.

         (f) Effect of Administrator's Decision. All actions taken and decisions
and determinations made by the Administrator on all matters relating to the Plan
pursuant to the powers vested in it hereunder shall be in the Administrator's
sole and absolute discretion and shall be conclusive and binding on all parties
concerned, including the Company, its stockholders, any participants in the Plan
and any other employee, consultant, or director of the Company, and their
respective successors in interest.

4.       SHARES AVAILABLE FOR THE PLAN

         Subject to adjustments as provided in Section 7(d) of the Plan, the
shares of Common Stock that may be issued with respect to Awards granted under
the Plan shall not exceed an aggregate of 2,500,000 shares of Common Stock. The
Company shall reserve such number of shares for Awards under the Plan, subject
to adjustments as provided in Section 7(d) of the Plan. If any Award, or portion
of an Award, under the Plan expires or terminates unexercised, becomes
unexercisable or is forfeited or otherwise terminated, surrendered or canceled
as to any shares, or if any shares of Common Stock are surrendered to the
Company in connection with any Award (whether or not such surrendered shares
were acquired pursuant to any Award), or if any shares are withheld by the
Company, the shares subject to such Award and the surrendered and withheld
shares shall thereafter be available for further Awards under the Plan;
provided, however, that any such shares that are surrendered to or withheld by
the Company in connection with any Award or that are otherwise forfeited after
issuance shall not be available for purchase pursuant to incentive stock options
intended to qualify under Code section 422.

5.       PARTICIPATION

         Participation in the Plan shall be open to all employees, officers, and
directors of, and other individuals providing bona fide services to or for, the
Company, or of any Affiliate of the Company, as may be selected by the
Administrator from time to time. The Administrator may

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also grant Awards to individuals in connection with hiring, retention or
otherwise, prior to the date the individual first performs services for the
Company or an Affiliate provided that such Awards shall not become vested prior
to the date the individual first performs such services.

6.       AWARDS

         The Administrator, in its sole discretion, establishes the terms of all
Awards granted under the Plan. Awards may be granted individually or in tandem
with other types of Awards. All Awards are subject to the terms and conditions
provided in the Stock Option Agreement. The Administrator may permit or require
a recipient of an Award to defer such individual's receipt of the payment of
cash or the delivery of Common Stock that would otherwise be due to such
individual by virtue of the exercise of, payment of, or lapse or waiver of
restrictions respecting, any Award. If any such payment deferral is required or
permitted, the Administrator shall, in its sole discretion, establish rules and
procedures for such payment deferrals.

         (a) Stock Options. The Administrator may from time to time grant to
eligible participants Awards of incentive stock options as that term is defined
in Code section 422 or nonqualified stock options; provided, however, that
Awards of incentive stock options shall be limited to employees of the Company
or of any current or hereafter existing "parent corporation" or "subsidiary
corporation," as defined in Code sections 424(e) and (f), respectively, of the
Company. Options intended to qualify as incentive stock options under Code
section 422 must have an exercise price at least equal to Fair Market Value as
of the date of grant, but nonqualified stock options may be granted with an
exercise price less than Fair Market Value. No stock option shall be an
incentive stock option unless so designated by the Administrator at the time of
grant or in the Stock Option Agreement evidencing such stock option.

         (b) Stock Appreciation Rights. The Administrator may from time to time
grant to eligible participants Awards of Stock Appreciation Rights ("SAR"). An
SAR entitles the grantee to receive, subject to the provisions of the Plan and
the Stock Option Agreement, a payment having an aggregate value equal to the
product of (i) the excess of (A) the Fair Market Value on the exercise date of
one share of Common Stock over (B) the base price per share specified in the
Stock Option Agreement, times (ii) the number of shares specified by the SAR, or
portion thereof, which is exercised. Payment by the Company of the amount
receivable upon any exercise of an SAR may be made by the delivery of Common
Stock or cash, or any combination of Common Stock and cash, as determined in the
sole discretion of the Administrator. If upon settlement of the exercise of an
SAR a grantee is to receive a portion of such payment in shares of Common Stock,
the number of shares shall be determined by dividing such portion by the Fair
Market Value of a share of Common Stock on the exercise date. No fractional
shares shall be used for such payment and the Administrator shall determine
whether cash shall be given in lieu of such fractional shares or whether such
fractional shares shall be eliminated.

         (c) Stock Awards. The Administrator may from time to time grant
restricted or unrestricted stock Awards to eligible participants in such
amounts, on such terms and conditions, and for such consideration, including no
consideration or such minimum consideration as may be required by law, as it
shall determine. A stock Award may be paid in Common Stock, in cash, or

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in a combination of Common Stock and cash, as determined in the sole discretion
of the Administrator.

         (d) Phantom Stock. The Administrator may from time to time grant Awards
to eligible participants denominated in stock-equivalent units ("phantom stock")
in such amounts and on such terms and conditions as it shall determine. Phantom
stock units granted to a participant shall be credited to a bookkeeping reserve
account solely for accounting purposes and shall not require a segregation of
any of the Company's assets. An Award of phantom stock may be settled in Common
Stock, in cash, or in a combination of Common Stock and cash, as determined in
the sole discretion of the Administrator. Except as otherwise provided in the
applicable Stock Option Agreement, the grantee shall not have the rights of a
stockholder with respect to any shares of Common Stock represented by a phantom
stock unit solely as a result of the grant of a phantom stock unit to the
grantee.

         (e) Performance Awards. The Administrator may, in its discretion, grant
performance awards which become payable on account of attainment of one or more
performance goals established by the Administrator. Performance awards may be
paid by the delivery of Common Stock or cash, or any combination of Common Stock
and cash, as determined in the sole discretion of the Administrator. Performance
goals established by the Administrator may be based on the Company's or an
Affiliate's operating income or one or more other business criteria selected by
the Administrator that apply to an individual or group of individuals, a
business unit, or the Company or an Affiliate as a whole, over such performance
period as the Administrator may designate.

         (f) Other Stock-Based Awards. The Administrator may from time to time
grant other stock-based awards to eligible participants in such amounts, on such
terms and conditions, and for such consideration, including no consideration or
such minimum consideration as may be required by law, as it shall determine.
Other stock-based awards may be denominated in cash, in Common Stock or other
securities, in stock-equivalent units, in stock appreciation units, in
securities or debentures convertible into Common Stock, or in any combination of
the foregoing and may be paid in Common Stock or other securities, in cash, or
in a combination of Common Stock or other securities and cash, all as determined
in the sole discretion of the Administrator.

7.       MISCELLANEOUS

         (a) Withholding of Taxes. Grantees and holders of Awards shall pay to
the Company or its Affiliate, or make provision satisfactory to the
Administrator for payment of, any taxes required to be withheld in respect of
Awards under the Plan no later than the date of the event creating the tax
liability. The Company or its Affiliate may, to the extent permitted by law,
deduct any such tax obligations from any payment of any kind otherwise due to
the grantee or holder of an Award. In the event that payment to the Company or
its Affiliate of such tax obligations is made in shares of Common Stock, such
shares shall be valued at Fair Market Value on the applicable date for such
purposes.

         (b) Loans. The Company or its Affiliate may make or guarantee loans to
grantees to assist grantees in exercising Awards and satisfying any withholding
tax obligations.

                                      -6-
<PAGE>   7
         (c) Transferability. Except as otherwise determined by the
Administrator, and in any event in the case of an incentive stock option or a
stock appreciation right granted with respect to an incentive stock option, no
Award granted under the Plan shall be transferable by a grantee otherwise than
by will or the laws of descent and distribution. Unless otherwise determined by
the Administrator in accord with the provisions of the immediately preceding
sentence, an Award may be exercised during the lifetime of the grantee, only by
the grantee or, during the period the grantee is under a legal disability, by
the grantee's guardian or legal representative.

         (d) Adjustments for Corporate Transactions and Other Events.

         (i) Stock Dividend, Stock Split and Reverse Stock Split. In the event
of a stock dividend of, or stock split or reverse stock split affecting, the
Common Stock, (A) the maximum number of shares of such Common Stock as to which
Awards may be granted under this Plan, as provided in Section 4 of the Plan, and
(B) the number of shares covered by and the exercise price and other terms of
outstanding Awards, shall, without further action of the Board, be adjusted to
reflect such event unless the Board determines, at the time it approves such
stock dividend, stock split or reverse stock split, that no such adjustment
shall be made. The Administrator may make adjustments, in its discretion, to
address the treatment of fractional shares and fractional cents that arise with
respect to outstanding Awards as a result of the stock dividend, stock split or
reverse stock split.

         (ii) Non-Change in Control Transactions. Except with respect to the
transactions set forth in Section 7(d)(i), in the event of any change affecting
the Common Stock, the Company or its capitalization, by reason of a spin-off,
split-up, dividend, recapitalization, merger, consolidation or share exchange,
other than any such change that is part of a transaction resulting in a Change
in Control, the Administrator, in its discretion and without the consent of the
holders of the Awards, shall make (A) appropriate adjustments to the maximum
number and kind of shares reserved for issuance or with respect to which Awards
may be granted under the Plan, as provided in Section 4 of the Plan; and (B) any
adjustments in outstanding Awards, including but not limited to reducing the
number, kind and price of securities subject to Awards.

         (iii) Change in Control Transactions. In the event of any transaction
resulting in a Change in Control, outstanding stock options and SAR's under this
Plan will terminate upon the effective time of such Change in Control unless
provision is made in connection with the transaction for the continuation or
assumption of such Awards by, or for the substitution of the equivalent awards
of, the surviving or successor entity or a parent thereof. In the event of such
termination, the holders of stock options and SAR's under the Plan will be
permitted, for a period of at least twenty (20) days prior to the effective time
of the Change in Control, to exercise all portions of such Awards that are then
exercisable or which become exercisable upon or prior to the effective time of
the Change in Control; provided, however, that any such exercise of any portion
of such an Award which becomes exercisable as a result of such Change in Control
shall be deemed to occur immediately prior to the effective time of such Change
in Control.

         (iv) Pooling of Interests Transactions. In connection with any business
combination authorized by the Board, the Administrator, in its sole discretion
and without the consent of the

                                      -7-
<PAGE>   8
holders of the Awards, may make any modifications to any Awards, including but
not limited to cancellation, forfeiture, surrender or other termination of the
Awards, in whole or in part, regardless of the vested status of the Award, but
solely to the extent necessary to facilitate the compliance of such transaction
with requirements for treatment as a pooling of interests transaction for
accounting purposes under generally accepted accounting principles.

         (v) Unusual or Nonrecurring Events. The Administrator is authorized to
make, in its discretion and without the consent of holders of Awards,
adjustments in the terms and conditions of, and the criteria included in, Awards
in recognition of unusual or nonrecurring events affecting the Company, or the
financial statements of the Company or any Affiliate, or of changes in
applicable laws, regulations, or accounting principles, whenever the
Administrator determines that such adjustments are appropriate in order to
prevent dilution or enlargement of the benefits or potential benefits intended
to be made available under the Plan.

         (e) Substitution of Awards in Mergers and Acquisitions. Awards may be
granted under the Plan from time to time in substitution for Awards held by
employees, officers, consultants or directors of entities who become or are
about to become employees, officers, consultants or directors of the Company or
an Affiliate as the result of a merger or consolidation of the employing entity
with the Company or an Affiliate, or the acquisition by the Company or an
Affiliate of the assets or stock of the employing entity. The terms and
conditions of any substitute Awards so granted may vary from the terms and
conditions set forth herein to the extent that the Administrator deems
appropriate at the time of grant to conform the substitute Awards to the
provisions of the awards for which they are substituted.

         (f) Termination, Amendment and Modification of the Plan. The Board may
terminate, amend or modify the Plan or any portion thereof at any time.

         (g) Non-Guarantee of Employment or Service. Nothing in the Plan or in
any Stock Option Agreement thereunder shall confer any right on an individual to
continue in the service of the Company or shall interfere in any way with the
right of the Company to terminate such service at any time with or without cause
or notice and whether or not such termination results in (i) the failure of any
Award to vest; (ii) the forfeiture of any unvested or vested portion of any
Award; and/or (iii) any other adverse effect on the individual's interests under
the Plan.

         (h) Compliance with Securities Laws; Listing and Registration. If at
any time the Administrator determines that the delivery of Common Stock under
the Plan is or may be unlawful under the laws of any applicable jurisdiction, or
federal or state securities laws, the right to exercise an Award or receive
shares of Common Stock pursuant to an Award shall be suspended until the
Administrator determines that such delivery is lawful. The Company shall have no
obligation to effect any registration or qualification of the Common Stock under
federal or state laws.

         The Company may require that a grantee, as a condition to exercise of
an Award, and as a condition to the delivery of any share certificate, make such
written representations (including representations to the effect that such
person will not dispose of the Common Stock so acquired in violation of federal
or state securities laws) and furnish such information as may, in the

                                      -8-
<PAGE>   9
opinion of counsel for the Company, be appropriate to permit the Company to
issue the Common Stock in compliance with applicable federal and state
securities laws. The stock certificates for any shares of Common Stock issued
pursuant to this Plan may bear a legend restricting transferability of the
shares of Common Stock unless such shares are registered or an exemption from
registration is available under the Securities Act of 1933, as amended, and
applicable state securities laws.

         (i) No Trust or Fund Created. Neither the Plan nor any Award shall
create or be construed to create a trust or separate fund of any kind or a
fiduciary relationship between the Company and a grantee or any other person. To
the extent that any grantee or other person acquires a right to receive payments
from the Company pursuant to an Award, such right shall be no greater than the
right of any unsecured general creditor of the Company.

         (j) Governing Law. The validity, construction and effect of the Plan,
of Grant Agreements entered into pursuant to the Plan, and of any rules,
regulations, determinations or decisions made by the Administrator relating to
the Plan or such Stock Option Agreements, and the rights of any and all persons
having or claiming to have any interest therein or thereunder, shall be
determined exclusively in accordance with applicable federal laws and the laws
of the State of Delaware, without regard to its conflict of laws principles.

         (k) Effective Date; Termination Date. The Plan is effective as of the
date on which the Plan is adopted by the Board, subject to approval of the
stockholders within twelve (12) months before or after such date. No Award shall
be granted under the Plan after the close of business on the day immediately
preceding the tenth anniversary of the effective date of the Plan, or if
earlier, the tenth anniversary of the date this Plan is approved by the
stockholders. Subject to other applicable provisions of the Plan, all Awards
made under the Plan prior to such termination of the Plan shall remain in effect
until such Awards have been satisfied or terminated in accordance with the Plan
and the terms of such Awards.

Date Approved by the Board:  January 2, 2001

Date Approved by the Stockholders:  ___________________

                                      -9-

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