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                                  EXHIBIT 10.1

                       HORIZON PHARMACEUTICAL CORPORATION
                      1997 NON-QUALIFIED STOCK OPTION PLAN

                   AS AMENDED BY BOARD OF DIRECTOR RESOLUTIONS
        ADOPTED ON DECEMBER 4, 1997, DECEMBER 7, 1998, AND MARCH 17, 1999

1.       Purposes of the Plan: The purposes of this Stock Plan are:

         *        to attract and retain the best available personnel for
                  positions of substantial responsibility,

         *        to provide additional incentive to Eligible Participants, and

         *        to promote the success of the Company's business.

2.       Definitions. As used herein, the following definitions shall apply:

         (a)      "Administrator" means the Board or any of its Committees as
shall be administering the Plan, in accordance with Section 4 of the Plan.

         (b)      "Applicable Laws" means the legal requirements relating to the
administration of stock option plans under state corporate and securities laws
and the Code.

         (c)      "Board" means the Board of Directors of the Company.

         (d)      "Code" means the Internal Revenue Code of 1986, as amended.

         (e)      "Committee" means a Committee appointed by the Board in
accordance with Section 4 of the Plan.

         (f)      "Common Stock" means the Common Stock of the Company.

         (g)      "Company" means Horizon Pharmaceutical Corporation, a Delaware
corporation.

         (h)      "Continuous Status as an Employee" means that the employment
relationship with the Company, any Parent, or Subsidiary, is not interrupted or
terminated. Continuous Status as an Employee shall not be considered interrupted
in the case of (i) any leave of absence approved by the Company or (ii)
transfers between locations of the Company or between the Company, any Parent,
any Subsidiary, or any successor. A leave of absence approved by the Company
shall include sick leave, military leave, or any other personal leave approved
by an authorized representative of the Company.

         (i)      "Director" means a member of the Board.

         (j)      "Disability" means total and permanent disability as defined
in the Company's long-term disability plan or, in the event the Company does not
have a long-term disability plan, as defined in Section 22(e)(3) of the Code.

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         (k)      "Eligible Participant" means any Employee, Director (Employee
or non-employee), or Independent Contractor. If and to the extent any state
and/or federal securities laws, rules or regulations limit the eligible
participants to Employees of the Company or otherwise limits the eligible
participants, then the Eligible Participants in such jurisdiction shall be so
limited under this Plan.

         (l)      "Employee" means any person employed by the Company or any
Parent or Subsidiary of the Company. Each Officer is an Employee. A Director is
not necessarily an Employee; serving as a Director (including receiving a
director's fee from the Company) does not by itself constitute "employment" by
the Company.

         (m)      "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

         (n)      "Fair Market Value" means, as of any date, the value of Common
Stock determined as follows:

                  (i)      If the Common Stock is fisted on any established
stock exchange or a national market system, including without limitation the
Nasdaq National Market of the National Association of Securities Dealers, Inc.
Automated Quotation ("NASDAQ") System, the Fair Market Value of a Share of
Common Stock shall be the closing sales price for such stock (or the closing
bid, if no sales were reported) as quoted on such system or exchange (or the
exchange with the greatest volume of trading in Common Stock) on the last market
trading day prior to the day of determination, as reported in The Wall Street
Journal or such other source as the Administrator deems reliable;

                  (ii)     If the Common Stock is quoted on the NASDAQ System
(but not on the Nasdaq National Market thereof) or is regularly quoted by a
recognized securities dealer but selling prices are not reported, the Fair
Market Value of a Share of Common Stock shall be the mean between the high bid
and low asked prices for the Common Stock on the last market trading day prior
to the day of determination, as reported in The Wall Street Journal or such
other source as the Administrator deems reliable;

                  (iii)    In the absence of an established market for the
Common Stock, the Fair Market Value shall be determined in good faith by the
Administrator.

         (o)      "Independent Contractor" means any person who is an advisor or
consultant to the Company, but who is not an Employee.

         (p)      "Notice of Grant" means a written notice evidencing certain
terms and conditions of an individual Option grant. The Notice of Grant is part
of the Option Agreement.

         (q)      "Officer" means a person who is an officer of the Company
within the meaning of Section 16 of the Exchange Act and the rules and
regulations promulgated thereunder.

         (r)      "Option" means a stock option granted pursuant to the Plan.

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         (s)      "Option Agreement" means a written agreement between the
Company and an Optionee evidencing the terms and conditions of an individual
Option grant. The Option Agreement is subject to the terms and conditions of the
Plan.

         (t)      "Option Exchange Program" means a program whereby outstanding
options are surrendered in exchange for options with a lower exercise price.

         (u)      "Optioned Stock" or "Option Shares" means the Common Stock
subject to an Option.

         (v)      "Optionee" means an Eligible Participant who holds an
outstanding Option.

         (w)      "Parent" means a `parent corporation', whether now or
hereafter existing, as defined in Section 424(e) of the Code.

         (x)      "Plan" means this 1997 Non-Qualified Stock Option Plan.

         (y)      "Rule 16b-3" means Rule 16b-3 of the Exchange Act or any
successor to Rule 16b-3, as in effect when discretion is being exercised with
respect to the Plan.

         (z)      "Section 16 Insider" means an insider who is subject to
Section 16 of the Securities Exchange Act of 1934, as amended.

         (aa)     "Securities Act" means the Securities Act of 1933, as amended.

         (bb)     "Share" means a share of the Common Stock, as adjusted in
accordance with Section 12 of the Plan.

         (cc)     "Subsidiary" means a `subsidiary corporation', whether now or
hereafter existing, as defined in Section 424(f) of the Code.

3.       Stock Subject to the Plan. Subject to the provisions of Section 12 of
the Plan, the maximum aggregate number of Shares which may be optioned and sold
under the Plan is 4,000,000 Shares. The Shares may be authorized, but unissued,
or reacquired Common Stock.

         If an Option expires or becomes unexcerisable without having been
exercised in full, or is surrendered pursuant to an Option Exchange Program, the
unpurchased Shares which were subject thereto shall become available for future
grant or sale under the Plan (unless the Plan has terminated); provided,
however, that Shares that have actually been issued under the Plan shall not be
returned to the Plan and shall not become available for future distribution
under the Plan.

4.       Administration of the Plan.

         (a)      Procedure.

                  (i)      Multiple Administrative Bodies. If permitted by Rule
16b-3, if applicable, the Plan may be administered by different bodies with
respect to Directors, non-Employee

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Directors, Officers who are not Directors, Employees who are neither Directors
nor Officers, and Independent Contractors.

                  (ii)     Administration with Respect to Directors and Officers
Subject to Section 16(b). With respect to Option grants made to Employees who
are also Officers or Directors subject to Section 16(b) of the Exchange Act, the
Plan shall be administered by (A) the Board, if the Board may administer the
Plan in compliance with the rules governing a plan intended to qualify as a
discretionary plan under Rule 16b-3, or (B) a committee designated by the Board
to administer the Plan, which committee shall be constituted to comply with the
rules governing a plan intended to qualify as a discretionary plan under Rule
16b-3. Once appointed, such Committee shall continue to serve in its designated
capacity until otherwise directed by the Board. From time to time the Board may
increase the size of the Committee and appoint additional members, remove
members (with or without cause) and substitute new members, fill vacancies
(however caused), and remove all members of the Committee and thereafter
directly administer the Plan, all to the extent permitted by the rules governing
a plan intended to qualify as a discretionary plan under Rule 16b-3.

                  (iii)    Administration with Respect to Directors and Officers
Not Subject to Section 16(b) and with Respect to Other Persons. With respect to
Option grants made to Directors and Officers not subject to Section 16(b),
Employees who are neither Directors nor Officers of the Company, and Independent
Contractors, the Plan shall be administered by (A) the Board or (B) a committee
designated by the Board, which committee shall be constituted to satisfy
Applicable Laws. Once appointed, such Committee shall serve in its designated
capacity until otherwise directed by the Board. The Board may increase the size
of the Committee and appoint additional members, remove members (with or without
cause) and substitute new members, fill vacancies (however caused), and remove
all members of the Committee and thereafter directly administer the Plan, all to
the extent permitted by Applicable Laws.

         (b)      Powers of the Administrator. Subject to the provisions of the
Plan, and in the case of a Committee, subject to the specific duties delegated
by the Board to such Committee, the Administrator shall have authority, in its
discretion:

                  (i)      to determine the Fair Market Value of the Common
Stock, in accordance with Section 2(m) of the Plan;

                  (ii)     to select the Eligible Participants to whom Options
may be granted hereunder;

                  (iii)    to determine whether and to what extent Options are
granted hereunder;

                  (iv)     to determine the number of shares of Common Stock to
be covered by each Option granted hereunder;

                  (v)      to approve forms of agreement for use under the Plan;

                  (vi)     to determine the terms and conditions, not
inconsistent with the terms of the Plan, of any award granted hereunder. Such
terms and conditions include, but are not limited

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to, the exercise price, the time or times when Options may be exercised (which
may be based on performance criteria), any vesting acceleration or waiver of
forfeiture restrictions, any right to repurchase Option Shares by the Company,
and any restriction or limitation regarding any Option or the shares of Common
Stock relating thereto, based in each case on such factors as the Administrator,
in its sole discretion, shall determine;

                  (vii)    to reduce the exercise price of any Option to the
then current Fair Market Value if the Fair Market Value of the Common Stock
covered by such Option shall have declined since the date the Option was
granted;

                  (viii)   to construe and interpret the terms of the Plan and
awards granted pursuant to the Plan;

                  (ix)     to prescribe, amend and rescind rules and regulations
relating to the Plan, including rules and regulations relating to sub-plans
established for the purpose of qualifying for preferred tax treatment under
foreign tax laws;

                  (x)      to modify or amend each Option (subject to Section
14(c) of the Plan), including the discretionary authority to extend the
post-termination exercisability period of Options longer than is otherwise
provided for in the Plan;

                  (xi)     to authorize any person to execute on behalf of the
Company any instrument required to effect the grant of an Option previously
granted by the Administrator;

                  (xii)    to institute an Option Exchange Program;

                  (xiii)   to determine the terms and restrictions applicable to
                           Options; and

                  (xiv)    to make all other determinations deemed necessary or
advisable for administering the Plan.

         (c)     Effect of Administrator's Decision. The Administrator's
decisions, determinations and interpretations shall be final and binding on all
Optionees and any other holders of Options.

5.       Eligibility. Options may be granted to Eligible Participants. Employees
must also meet the eligibility requirements set forth in Section 21 of the Plan.
If otherwise eligible, an Eligible Participant who has been granted an Option
may be granted additional Options.

6.       Limitations.

         (a)      Each Option shall be designated in the Notice of Grant.

         (b)      Neither the Plan nor any Option shall confer upon an Optionee
who is an Employee any right with respect to continuing such Optionee's
employment with the Company, nor shall they interfere in any way with such
Optionee's right or the Company's right to terminate such employment at any
time, with or without cause.

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         (c)      The following limitations shall apply to grants of Options to
Eligible Participants:

                  (i)      The foregoing limitations shall be adjusted
proportionately in connection with any change in the Company's capitalization as
described in Section 12.

                  (ii)     If an Option is canceled in the same fiscal year of
the Company in which it was granted (other than in connection with a transaction
described in Section 12), the canceled Option will be counted against the limit
set forth in Section 6(c)(i). For this purpose, if the exercise price of an
Option is reduced, the transaction will be treated as a cancellation of the
Option and the grant of a new Option.

7.       Term of Plan. Subject to Section 18 of the Plan, the Plan shall become
effective upon the earlier to occur of its adoption by the Board or its approval
by the shareholders of the Company as described in Section 18 of the Plan. It
shall continue in effect for a term of ten (10) years unless terminated earlier
under Section 14 of the Plan.

8.       Term of Option. The term of each Option shall be stated in the Notice
of Grant.

9.       Option Exercise Price and Consideration.

         (a)      Exercise Price. The per share exercise price for the Shares to
be issued pursuant to exercise of an Option shall be determined by the
Administrator.

         (b)      Waiting Period and Exercise Dates. At the time an Option is
granted, the Administrator shall fix the period within which the Option may be
exercised and shall determine any conditions which must be satisfied before the
Option may be exercised. In so doing, the Administrator may specify that an
Option may not be exercised until the completion of a service period.

         (c)      Form of Consideration. The Administrator shall determine the
acceptable form of consideration for exercising an Option, including the method
of payment. Such consideration may consist entirely of.

                  (i)      cash;

                  (ii)     check;

                  (iii)    other Shares, with the certificate(s) therefor
registered in the Optionee's name, which (A) in the case of an Optionee who is a
Section 16 Insider, have been owned by the Optionee for more than six (6) months
on the date of surrender, and (B) have a Fair Market Value on the date of
surrender equal to the aggregate exercise price of the Shares as to which said
Option shall be exercised;

                  (iv)     delivery of a properly executed exercise notice
together with such other documentation as the Administrator and the broker, if
applicable, shall require to effect an exercise of the Option and delivery to
the Company of the sale or loan proceeds required to pay the exercise price;

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                  (v)      a reduction in the amount of any Company liability to
the Optionee, including any liability attributable to the Optionee's
participation in any Company-sponsored deferred compensation program or
arrangement;

                  (vi)     a written instruction by the Optionee to the Company
to withhold from the Shares otherwise issuable upon the exercise of the Option
that number of Shares having a Fair Market Value as of the date of exercise
equal to the cash exercise price of the Shares being purchased; provided,
however, that in the case of an Optionee who is a Section 16 Insider, such
written instruction is received either (A) within ten (10) business days
beginning on the third (3rd) business day following release of the Company's
quarterly or annual summary of earnings and ending on the twelfth (12th)
business day following such day or (B) at least six (6) months prior to the date
of exercise of such Option;

                  (vii)    any combination of the foregoing methods of payment;
or

                  (viii)   such other consideration and method of payment for
the issuance of Shares to the extent permitted by Applicable Laws.

10.      Exercise of Option.

         (a)      Procedure for Exercise; Rights as a Shareholder. Any Option
granted hereunder shall be exercisable according to the terms of the Plan and at
such times and under such conditions as determined by the Administrator and set
forth in the Option Agreement.

         An Option may not be exercised for a fraction of a Share.

         An Option shall be deemed exercised when the Company receives: (i)
written notice of exercise (in accordance with the Option Agreement) from the
person entitled to exercise the Option, and (ii) full payment for the Shares
with respect to which the Option is exercised. Full payment may consist of any
consideration and method of payment authorized by the Administrator and
permitted by the Option Agreement and the Plan. Shares issued upon exercise of
an Option shall be issued in the name of the Optionee. Until the stock
certificate evidencing such Shares is issued (as evidenced by the appropriate
entry on the books of the Company or of a duly authorized transfer agent of the
Company), no rights to vote or receive dividends or any other rights as a
shareholder shall exist with respect to the Optioned Stock, notwithstanding the
exercise of the Option. The Company shall issue (or cause to be issued) such
stock certificate promptly after the Option is exercised. No adjustment will be
made for a dividend or other right for which the record date is prior to the
date the stock certificate is issued, except as provided in Section 12 of the
Plan.

         Exercising an Option in any manner shall decrease the number of Shares
thereafter available, both for purposes of the Plan and for sale under the
Option, by the number of Shares as to which the Option is exercised.

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         (b)      Termination of Employment.

         The following provisions of this subsection (b) apply only to Optionees
who are Employees on the date of an Option grant. Unless otherwise specified by
the Administrator in writing at or subsequent to the grant, upon termination of
employment for any reason other than upon the Optionee's Disability, death or
retirement at or after age 65, the Option shall terminate and the Optionee's
right to exercise any Option shall end immediately upon the termination of
employment. For purposes of this Section 10(b), "termination of employment"
shall be deemed to have occurred at the close of business on the last day on
which the Optionee is carried as an active employee on the records of the
Company.

         If the Optionee is given the right in writing to exercise such option
for a specified period of time following termination of employment, the Optionee
may exercise such Option, but only within such period of time as is specified in
such writing, and only to the extent that the Optionee was entitled to exercise
it at the date of termination of employment (but in no event later than the
expiration of the term of such Option as set forth in the Notice of Grant). If,
at the date of termination of employment, the Optionee is not entitled to
exercise the entire Option, the Shares covered by the unexercisable portion of
the Option shall revert to the Plan. If, after termination of employment, the
Optionee does not exercise the Option within the time specified, the Option
shall terminate, and the Shares covered by such Option shall revert to the Plan.

         (c)      Disability of Optionee. The following provisions of this
subsection (c) apply only to Optionees who are Employees on the date of an
Option grant. In the event that an Optionee's Continuous Status as an Employee
terminates as a result of the Optionee's Disability, the Optionee may exercise
the Option at any time within twelve (12) months from the date of such
termination, but only to the extent that the Optionee was entitled to exercise
it at the date of such termination (but in no event later than the expiration of
the term of such Option as set forth in the Notice of Grant). If, at the date of
termination, the Optionee is not entitled to exercise the entire Option, the
Shares covered by the unexercisable portion of the Option shall revert to the
Plan. If, after termination, the Optionee does not exercise the Option within
the time specified herein, the Option shall terminate, and the Shares covered by
such Option shall revert to the Plan.

         (d)      Death Of Optionee. In the event of death of an Optionee, the
Option may be exercised at any time within twelve (12) months following the date
of death (but in no event later than the expiration of the term of such Option
as set forth in the Notice of Grant), by the Optionee's estate or by a person
who acquired the right to exercise the Option by bequest or inheritance, but
only the extent that the Optionee was entitled to exercise the Option at the
date of death. If, at the time of death, the Optionee was not entitled to
exercise the entire Option, the Shares covered by the unexercisable portion of
the Option shall immediately revert to the Plan. If, after death, the Optionee's
estate or a person who acquired the right to exercise the Option by bequest or
inheritance does not exercise the Option within the time specified herein, the
Option shall terminate, and the Shares covered by such Option shall revert to
the Plan.

         (e)      Rule 16b-3. Options granted to Section 16 Insiders must comply
with the applicable provisions of Rule 16b-3 and shall contain such additional
conditions or restrictions as may be required thereunder to qualify for the
maximum exemption from Section 16 of the Exchange Act with respect to Plan
transactions.

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         (f)      Retirement At or After Age 65. The following provisions of
this subsection (f) apply only to Optionees who are Employees on the date of an
Option grant. Upon retirement from the Company at or after age 65, the Option
may be exercised by the retired Employee at any time during the Option's term as
set forth in the Notice of Grant. In the event of the death of such retired
Employee prior to the expiration of the term of such Option as set forth in the
Notice of Grant, the provisions of Paragraph (d) of this Section 10 shall apply.

11.      Non-Transferability of Options. An Option may not be sold, pledged,
assigned, hypothecated, transferred, or disposed of in any manner other than by
will or by the laws of descent or distribution and may be exercised, during the
lifetime of the Optionee, only by the Optionee.

12.      Adjustments upon Changes in Capitalization, Dissolution, Merger or
Asset Sale.

         (a)      Changes in Capitalization. Subject to any required action by
the shareholders of the Company, the number of shares of Common Stock covered by
each outstanding Option, and the number of shares of Common Stock which have
been authorized for issuance under the Plan but as to which no Options have yet
been granted or which have been returned to the Plan upon cancellation or
expiration of an Option, as well as the price per share of Common Stock covered
by each such outstanding Option, shall be proportionately adjusted for any
increase or decrease in the number of issued shares of Common Stock resulting
from a stock split, reverse stock split, stock dividend, combination or
reclassification of the Common Stock, or any other increase or decrease in the
number of issued shares of Common Stock effected without receipt of
consideration by the Company; provided, however, that conversion of any
convertible securities of the Company shall not be deemed to have been "effected
without receipt of consideration." Such adjustment shall be made by the Board,
whose determination in that respect shall be final, binding and conclusive.
Except as expressly provided herein, no issuance by the Company of shares of
stock of any class, or securities convertible into shares of stock of any class,
shall affect, and no adjustment by reason thereof shall be made with respect to,
the number or price of shares of Common Stock subject to an Option.

         (b)      Dissolution or Liquidation. In the event of the proposed
dissolution or liquidation of the Company, to the extent that an Option has not
been previously exercised, it will terminate immediately prior to the
consummation of such proposed action. The Board may, in the exercise of its sole
discretion in such instances, declare that any Option shall terminate as of a
date fixed by the Board and give each Optionee the right to exercise the Option
as to all or any part of the Optioned Stock, including Shares as to which the
Option would not otherwise be exercisable.

         (c)      Merger, Reorganization Asset Sale. For purposes of this
Section 12, "Reorganization of the Company" shall mean a merger of the Company
with or into another corporation, a reorganization or consolidation in which the
Company is not the surviving or acquiring company, a sale of securities of the
Company whereby the Company becomes a wholly-owned subsidiary of another
company, or the sale of substantially all of the assets of the Company. In the
event of a Reorganization of the Company, each outstanding Option may be assumed
or an equivalent option or right may be substituted by the successor corporation
or a Parent of the successor corporation. For purposes of this paragraph, the
term "successor corporation" shall include the acquiring company, the purchaser
of substantially all of the assets

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of the Company, and any successor company in a merger, reorganization or
consolidation, as the case may be. In the event each outstanding Option is not
so assumed or any equivalent option or right not so substituted, then (i) any
vesting period shall end and any unvested Options shall become immediately
exercisable, and (ii) the Administrator shall notify the Optionee that the
Option shall be fully exercisable to the extent not exercised for a period of
twenty (20) days from the date such notice is given, and the Option will
terminate upon the expiration of such period. For the purposes of this
paragraph, the Option shall be considered assumed it following the
Reorganization of the Company, the option confers the right to purchase, for
each Share of Optioned Stock subject to the Option immediately prior to the
Reorganization of the Company, the consideration (whether stock, cash or other
securities or property) received in the Reorganization of the Company by holders
of Common Stock for each Share held on the effective date of the transaction
(and if holders were offered a choice of consideration, the type of
consideration chosen by the holders of a majority of the outstanding Shares);
provided, however, that if such consideration received in the Reorganization of
the Company was not solely common stock of the successor corporation or its
Parent, the Administrator may, with the consent of the successor corporation,
provide for the consideration to be received upon the exercise of the Option,
for each Share of Optioned Stock subject to the Option, to be solely common
stock of the successor corporation or its Parent equal in fair market value to
the per share consideration received by holders of Common Stock in the
Reorganization of the Company.

13.      Date of Grant. The date of grant of an Option shall be, for all
purposes, the date on which the Administrator makes the determination granting
such Option, or such other later date as is determined by the Administrator.
Notice of the determination shall be provided to each Optionee within a
reasonable time after the date of such grant.

14.      Amendment and Termination of the Plan.

         (a)      Amendment and Termination. The Board may at any time amend,
alter, suspend or terminate the Plan, except the following amendments shall
require majority shareholder approval:

                  (i)      increase in the total number of shares subject to the
Plan, except under Section 12 of the Plan relating to Adjustments; or

                  (ii)     change in the term of the Plan set forth in Section 7
hereof

         (b)      Shareholder Approval. The Company shall obtain shareholder
approval of any Plan amendment to the extent necessary and desirable to comply
with Rule 16b-3 (or any successor rule or statute or other applicable law, rule
or regulation, including the requirements of any exchange or quotation system on
which the Common Stock is fisted or quoted). Such shareholder approval, if
required, shall be obtained in such a manner and to such a degree as is required
by the applicable law, rule or regulation.

         (c)      Effect of Amendment or Termination. No amendment, alteration,
suspension or termination of the Plan shall impair the rights of any Optionee,
unless mutually agreed otherwise between the Optionee and the Administrator,
which agreement must be in writing and signed by the Optionee and the Company.

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15.      Conditions upon Issuance of Shares.

         (a)      Legal Compliance. Shares shall not be issued pursuant to the
exercise of an Option unless the exercise of such Option and the issuance and
delivery of such Shares shall comply with all relevant provisions of law,
including, without limitation, the Securities Act of 1933, as amended, the
Exchange Act, the rules and regulations promulgated thereunder, Applicable Laws,
and the requirements of any stock exchange or quotation system upon which the
Shares may then be listed or quoted, and shall be further subject to the
approval of counsel for the Company with respect to such compliance.

         (b)      Investment Representations. As a condition to the exercise of
an Option, the Company may require the person exercising such Option to
represent and warrant at the time of any such exercise that the Shares are being
purchased only for investment and without any present intention to sell or
distribute such Shares if, in the opinion of counsel for the company, such a
representation is required.

         (c)      Restrictions. Restrictions may be imposed on Shares issued
pursuant to an Option and a legend may be stamped or otherwise imprinted on the
Share certificates.

         (d)      Other Conditions. If the Company determines that listing,
registration or qualification of Shares (or attempt to obtain an exemption
therefrom) of any regulatory body is necessary or desirable, the Option may not
be exercised in whole or in part until such listing, registration,
qualification, consent or approval is effected free of any conditions not
acceptable to the Company.

16.      Liability of Company.

         (a)      Inability to Obtain Authority. The inability of the Company to
obtain authority from any regulatory body having jurisdiction, which authority
is deemed by the Company's counsel to be necessary to the lawful issuance and
sale of any Shares hereunder, shall relieve the Company of any liability in
respect of the failure to issue or sell such Shares as to which such requisite
authority shall not have been obtained.

         (b)      Grants Exceeding Allotted Shares. If the Optioned Stock
covered by an Option exceeds, as of the date of grant, the number of Shares
which may be issued under the Plan without additional shareholder approval, such
Option shall be void with respect to such excess Optioned Stock, unless
shareholder approval of an amendment sufficiently increasing the number of
Shares subject to the Plan is timely obtained in accordance with Section 14 of
the Plan.

17.      Reservation of Shares. The Company, during the term of this Plan, will
at all times reserve and keep available such number of Shares as shall be
sufficient to satisfy the requirements of the Plan.

18.      Shareholder Approval. Continuance of the Plan shall be subject to
approval by the shareholders of the Company within twelve (12) months before or
after the date the Plan is adopted. Such shareholder approval shall be obtained
in the manner and to the degree required

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under applicable Federal and state law. An Option shall not be exercisable in
whole or in part prior to the date of approval of the Plan by the shareholders
of the Company.

19.      Exchange Act. At the time of adoption of the Plan, it is not
anticipated that the Company will be subject to the Exchange Act, but provisions
relating to the Exchange Act are included herein to be applicable at such time,
if any, as the Company becomes subject to the Exchange Act.

20.      Taxes Withheld. At the time of the exercise of any Option, the Company
may require, as a condition of the exercise of such Option, the Optionee to pay
the Company an amount equal to the amount of the tax the Company may be required
to (A) withhold to obtain a deduction for federal and state income tax purposes
as a result of the exercise of such Option by the Optionee or to comply with
Applicable Laws, or (B) collect from the Optionee and pay to the applicable
taxing authorities. An Optionee may, with the approval of the Administrator,
make an election to satisfy the tax withholding obligation by either (1)
tendering to the Company shares of Common Stock owned by the Optionee, with the
certificates therefor registered in the Optionee's name, having a Fair Market
Value equal to the tax withholding obligation, and, in the case of an Optionee
who is a Section 16 Insider, which have been owned by the Optionee for more than
six (6) months on the date of surrender; or (2) instructing the Company to
withhold from the Shares otherwise issuable upon the exercise of the Option that
number of shares having a Fair Market Value equal to the tax withholding
obligation; provided, however, that in the case of an Optionee who is a Section
16 Insider, such instruction is in writing and is received either (A) within ten
(10) business days beginning on the third (3rd) business day following release
of the Company's quarterly or annual summary of earnings and ending on the
twelfth (12th) business day following such day or (B) at least six (6) months
prior to the date of exercise of such Option. The value of the shares of Common
Stock to be delivered or withheld shall be based on the Fair Market Value of the
shares of Common Stock on the date of exercise.

21.      Eligibility for Consideration. Only the following Employees shall be
eligible to be considered to receive grant(s) of Options under the Plan:

         (a)      Employees who were in the employment of the Company before
January 1, 1996 and who have Continuous Status as an Employee as of the date of
grant.

         (b)      Employees who are employed by the Company on or after January
1, 1996, upon expiration of twelve (12) months' employment with the Company, and
who have Continuous Status as an Employee as of the date of grant.

22.      Determinations of Administrator or Board. All determinations of the
Administrator and the Board in connection with the Plan or Options hereunder
shall be evidenced by minutes or other written documentation setting forth such
determinations.

23.      Documentation with Respect to Options. Each Option granted hereunder
shall be evidenced by a written Stock Option Agreement dated as of the date of
grant and executed by the Company and the Optionee, in such form as the
Administrator shall approve from time to time.

                                      -12-
<PAGE>   13

24.      Temporary or Permanent Suspension of Grant of Options. The
Administrator in its discretion may decide not to grant any Options at any time
or from time to time.

25.      No Right to Continued Employment. Nothing in the Plan or in any Option
granted hereunder or in any Stock Option Agreement relating thereto shall confer
upon any Employee the right to continue in the employ of the Company.

26.      Other Plans. The adoption of the Plan shall not affect any other stock
option, stock purchase, incentive or other compensation plans in effect for the
Company, nor shall the Plan preclude the Company from establishing any other
plans or forms of incentive or other compensation for Employees.

27.      Miscellaneous.

         (a)      Whenever used herein, nouns in the singular shall include the
plural, and pronouns shall include the masculine and feminine gender as the
meaning shall require.

         (b)      Headings of Sections and Paragraphs hereof are inserted for
convenience of reference only and do not constitute a part of the Plan.

         (c)      All notices to be given pursuant to the terms of the Plan
shall be in writing. Notices required or permitted to be given under the Plan by
the Administrator or the Company under Sections 12 or 27 of the Plan shall be
deemed to have been given on the date which is five (5) days following deposit
of same in the U.S. mail, registered or certified mail or Express Mail, postage
prepaid, or with a nationally or internationally recognized courier service,
prepaid, for no more than five (5)-day delivery, addressed to the addressee at
the last address shown on the records of the Company.

                                  [END OF PLAN]

                                      -13-<PAGE>   1
                                                                    EXHIBIT 10.2

adopted by the Board of Directors and the stockholders on February 14, 2000

                    FIRST HORIZON PHARMACEUTICAL CORPORATION

                                 2000 STOCK PLAN

         1.       PURPOSE. The purpose of the 2000 Stock Plan (the "Plan") is to
(a) attract and retain persons eligible to participate in the Plan; (b) motivate
participants, by means of appropriate incentives, to achieve long-range goals;
and (c) further identify participants' interests with those of the Company's
shareholders through compensation that is based on the Company's common stock to
promote the long-term financial interest of the Company, including the growth in
value of the Company's equity and the enhancement of shareholder return. The
term "Company" means First Horizon Pharmaceutical Corporation and its
Subsidiaries. The term "Code" shall mean the Internal Revenue Code of 1986, as
amended, and any successor statute. The term "Subsidiary" shall have the meaning
set forth in Section 424(f) of the Code.

         2.       TYPES OF GRANTS. The Plan Committee (as defined below) may,
from time to time, take the following action separately or in combination under
the Plan:

                  (a)      grant INCENTIVE STOCK OPTIONS, as defined in Section
422 of the Code, as provided in Section 7 hereof;

                  (b)      grant NONQUALIFIED STOCK OPTIONS as provided in
Section 8 hereof;

                  (c)      grant STOCK AWARDS as provided in Section 9 hereof;
or

                  (d)      SELL SHARES as provided in Section 10 hereof.

         3.       ELIGIBILITY; MAXIMUM ANNUAL GRANTS TO ANY INDIVIDUAL.
Officers, directors employees, advisors and consultants of the Company shall be
eligible to participate in the Plan at the discretion of the Plan Committee;
provided, however, that if and to the extent any state or federal securities
laws, rules or regulations limit the eligible participants to employees of the
Company or otherwise, then the eligible participants in such jurisdiction shall
be so limited under this Plan; and further provided that only full-time
employees of the Company may receive incentive stock options. To comply with
Section 162(m) of the Code, the maximum number of shares that may be covered by
grants under this Plan to any one individual during any calendar year is no more
than 500,000 shares.

         4.       ADMINISTRATION. The Plan shall be administered by a plan
committee (the "Plan Committee") established by the Board of Directors of First
Horizon Pharmaceutical Corporation (the "Board"), which shall appoint and remove
members of the Plan Committee in its discretion subject only to the requirements
set forth herein. The Plan Committee shall consist of two or more members of the
Board who are nonemployee directors within the meaning of Rule 16b-3 under the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), and, if deemed

<PAGE>   2

appropriate are outside directors within the meaning of Section 162(m) of the
Code. The Plan Committee shall determine the meaning and application of the
provisions of the Plan and all grant agreements executed pursuant thereto, and
its decisions shall be conclusive and binding upon all interested persons.
Subject to the provisions of the Plan, the Plan Committee shall have the sole
authority to determine: (a) the persons to whom grants shall be made; (b) the
amount and nature of the grants; (c) the price to be paid for the Stock upon the
exercise of each option; (d) the period within which each option may be
exercised; and (e) the other terms and conditions of the grants.

         5.       NUMBER OF SHARES RESERVED UNDER PLAN. The Company shall
reserve for issuance under the Plan 2,000,000 shares of Common Stock of First
Horizon Pharmaceutical Corporation ("Stock") or the number of shares of Stock,
which, in accordance with the provisions of Section 6 below, shall be
substituted therefor. If an option, stock award or stock sale granted under the
Plan shall expire or terminate for any reason without having been exercised in
full or without having been vested, shares subject to the unexercised, unvested
or forfeited portion thereof shall again be available for the purposes of the
Plan; provided, however, that the availability of any such shares shall be
subject to the provisions of Section 162(m) of the Code.

         6.       ADJUSTMENT TO NUMBER OF SHARES AND EXERCISE PRICE. In the
event of changes in the outstanding Stock by reason of stock dividends,
split-ups, consolidations, recapitalizations, reorganizations or similar events
(as determined by the Plan Committee), an appropriate adjustment shall be made
by the Plan Committee in the number of shares reserved under the Plan, in the
number of shares set forth in Section 5 above, in the number of shares and the
option price per share specified in any stock option agreement with respect to
any unpurchased shares, and the maximum number of shares that may be covered by
grants under this Plan to any one individual during any calendar year. The
determination of the Plan Committee as to what adjustments shall be made shall
be conclusive. Adjustments for any options to purchase fractional shares shall
also be determined by the Plan Committee. The Plan Committee shall give prompt
notice to all grantees of any adjustment pursuant to this Section.

         7.       INCENTIVE STOCK OPTIONS. It is intended that options granted
pursuant to this Section 7 qualify as incentive stock options as defined in
Section 422 of the Code. Incentive stock options shall be granted only to
employees of the Company. Each stock option shall be subject to the following
terms and conditions and to such other terms and conditions not inconsistent
therewith as the Plan Committee may deem appropriate and may be set forth in the
grant agreement:

                  (a)      Limitation on Amount of Incentive Stock Options
Becoming Exercisable in Any One Calendar Year. The aggregate Fair Market Value
(determined as of the time the option is granted) of Stock with respect to which
incentive stock options are exercisable for the first time by the grantee during
any calendar year (under the Plan and all other incentive stock option plans of
the Company) shall not exceed $100,000.

                  (b)      Incentive Stock Option Price. The price to be paid
for each share of Stock upon the exercise of each incentive stock option shall
be determined by the Plan Committee at the time the option is granted, but shall
in no event be less than 100% of the Fair Market Value (as defined below) of the
shares on the date the option is granted, or not less than 110% of the Fair
Market Value of such shares on the date such option is granted in the case of 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 of its parent or Subsidiaries. The "date the

                                      -2-
<PAGE>   3

option is granted" means the date on which the Plan Committee authorizes the
grant of an option under this Plan. For purposes of determining the "Fair Market
Value" of a share of Stock under this Plan, the following rules shall apply:

                           (i)      If the Stock is at the time listed or
                                    admitted to trading on any stock exchange
                                    (including the Nasdaq National Stock
                                    Market), then the "Fair Market Value" shall
                                    be the mean between the lowest and highest
                                    reported sale prices of the Stock on the
                                    date in question on the principal exchange
                                    on which the Stock is then listed or
                                    admitted to trading. If no reported sale of
                                    Stock takes place on the date in question on
                                    the principal exchange, then the reported
                                    closing sale price of the Stock on such date
                                    on the principal exchange shall be
                                    determinative of "Fair Market Value."

                           (ii)     If the Stock is not at the time listed or
                                    admitted to trading on a stock exchange, the
                                    "Fair Market Value" shall be the mean
                                    between the closing reported sale price of
                                    the Stock on the date in question in the
                                    over-the-counter market.

                           (iii)    In the absence of an established market for
                                    the Common Stock, the Fair Market Value
                                    thereof shall be determined in good faith by
                                    the Committee.

                  (d)      Limitation on Duration of Incentive Stock Options.
The period within which an incentive stock option may be exercised shall be
determined by the Plan Committee at the time the option is granted; provided,
however, that in no event shall any incentive stock option granted hereunder be
exercisable more than ten years from the date the option was granted nor more
than five years from the date the option was granted in the case of 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.

                  (e)      Payment for Stock upon Exercise of Option. The option
exercise price for each share of Stock purchased under a stock option shall be
paid in full at the time of purchase. The payment of the exercise price of an
incentive stock option granted shall be subject to the following:

                           (i)      The full exercise price for shares of Stock
                                    purchased upon the exercise of any stock
                                    option shall be paid at the time of such
                                    exercise (except that, in the case of an
                                    exercise arrangement approved by the Plan
                                    Committee and described in paragraph
                                    6(e)(iii) below, payment may be made as soon
                                    as practicable after the exercise).

                           (ii)     The exercise price shall be payable in cash
                                    or by tendering (either actually or, if and
                                    so long as the Common Stock is registered
                                    under Section 12(b) or 12(g) of the Exchange
                                    Act, by attestation) or constructively
                                    surrendering Stock already owned by the
                                    grantee of the stock option for at least six
                                    months (or any shorter or longer period
                                    necessary to avoid a charge to the Company's
                                    earnings for financial reporting purposes)
                                    having a Fair Market Value on the

                                      -3-
<PAGE>   4

                                    day prior to the stock option's exercise
                                    date equal to the aggregate exercise price.

                           (iii)    The Plan Committee may permit a participant
                                    to elect to pay the exercise price upon the
                                    exercise of a stock option by authorizing a
                                    third party to sell shares of Stock (or a
                                    sufficient portion of the shares) acquired
                                    upon exercise of the stock option and remit
                                    to the Company a sufficient portion of the
                                    sale proceeds to pay the entire exercise
                                    price and any tax withholding resulting from
                                    such exercise, or the Company may choose to
                                    retain such shares in satisfaction of the
                                    exercise price and any tax withholding.

         8.       NONQUALIFIED STOCK OPTIONS. Each nonqualified stock option
granted under the Plan shall be evidenced by a stock option agreement between
the person to whom such option is granted and the Company. Such stock option
agreement shall provide that the option is subject to the following terms and
conditions and to such other terms and conditions not inconsistent therewith as
the Plan Committee may deem appropriate and may be set forth in the grant
agreement:

                  (a)      Nonqualified Stock Option Price. The price to be paid
for each share of Stock upon the exercise of a nonqualified stock option shall
be determined by the Plan Committee at the time the option is granted. To the
extent that the Fair Market Value of Stock is relevant to the pricing of the
option by the Plan Committee, Fair Market Value of the Stock shall be determined
as set forth in Section 7(b) above.

                  (b)      Limitation on Duration of Nonqualified Stock Option.
The period within which a nonqualified stock option may be exercised shall be
determined by the Plan Committee at the time the option is granted, but in no
event shall such period exceed 10 years from the date the option is granted.

                  (c)      Payment for Stock upon Exercise of Nonqualified Stock
Option. The option exercise price for each share of Stock purchased under a
nonqualified stock option shall be paid in full at the time of purchase and
shall be subject to the terms and provisions of Section 7(e) above.

         9.       STOCK AWARDS. The Plan Committee may award Stock under the
Plan as stock bonuses. Stock awarded as a bonus shall be subject to the terms,
conditions, and restrictions determined by the Plan Committee. The restrictions
may include restrictions concerning transferability, voting, repurchase by the
Company and forfeiture of the shares of Stock awarded, together with such other
restrictions as may be determined by the Plan Committee. If shares of Stock are
subject to forfeiture, all dividends or other distributions paid by the Company
with respect to the shares of Stock shall be retained by the Company until the
shares of Stock are no longer subject to forfeiture, at which time all
accumulated amounts shall be paid to the recipient. The Plan Committee may
require the recipient to sign an agreement as a condition of the award, but may
not require the recipient to pay any monetary consideration other than amounts
necessary to satisfy tax withholding requirements. The agreement may contain any
terms, conditions, restrictions, representations and warranties required by the
Plan Committee. The certificates representing the shares awarded shall bear any
legends required by the Plan Committee. Unless otherwise determined by the Plan
Committee, shares awarded as a stock bonus to an officer or director may not be
sold until six months after the date of the award. Upon the issuance of a stock
award, the

                                      -4-
<PAGE>   5

number of shares of Stock reserved for issuance under the Plan shall be reduced
by the number of shares of Stock issued.

         10.      SALE OF STOCK. The Plan Committee may issue Stock under the
Plan for such consideration (including promissory notes and services) as
determined by the Plan Committee. Stock issued under the Plan shall be subject
to the terms, conditions and restrictions determined by the Plan Committee. The
restrictions may include restrictions concerning transferability, voting,
repurchase by the Company and forfeiture of the shares issued, together with
such other restrictions as may be determined by the Plan Committee. If shares of
Stock are subject to forfeiture or repurchase by the Company, all dividends or
other distributions paid by the Company with respect to the shares of Stock
shall be retained by the Company until the shares of Stock are no longer subject
to forfeiture or repurchase, at which time all accumulated amounts shall be paid
to the recipient. All Stock issued pursuant to this Section 10 shall be subject
to a purchase or subscription agreement, which shall be executed by the Company
and the prospective recipient of the shares prior to the delivery of
certificates representing such shares to the recipient. The purchase agreement
may contain any terms, conditions, restrictions, representations and warranties
required by the Plan Committee. The certificates representing the shares of
Stock shall bear any legends required by the Plan Committee. Upon the issuance
of Stock under this Section 10, the number of shares of Stock reserved for
issuance under the Plan shall be reduced by the number of shares of Stock
issued.

         11.      NONTRANSFERABILITY. The options granted pursuant to the Plan
shall be nontransferable except by will or the laws of descent and distribution
of the state or county of the grantee's domicile at the time of death, or,
except in the case of incentive stock options, pursuant to a qualified domestic
relations order defined under the Code or Title I of the Employee Retirement
Income Security Act, and shall be exercisable during the grantee's lifetime only
by him (or, except with respect to incentive stock options, in the case of a
transfer pursuant to a qualified domestic relations order, by the transferee
under such qualified domestic relations order) and after grantee's death, by
grantee's personal representative or by the person entitled thereto under
grantee's will or the laws of intestate succession.

         12.      EFFECT OF TERMINATION OF GRANTEE'S EMPLOYMENT OR OTHER
RELATIONSHIP WITH COMPANY. Upon termination of the grantee's employment or other
relationship with the Company, grantee's rights to exercise vested options then
held by grantee shall be as follows, except that to the extent such periods are
more restrictive in the grantee's agreement with the Company the shorter period
specified in the agreement shall apply:

                  (a)      Death of Grantee. Upon the death of a grantee, any
vested option may be exercised (to the extent exercisable on the date of death)
within 12 months following the date of death or within such shorter period as
the Plan Committee as the Plan Committee shall prescribe in the option
agreement, by the grantee's representative or by the person entitled thereto
under grantee's will or the laws of intestate succession.

                  (b)      Disability of Grantee. Upon the disability (within
the meaning of Section 22(e)(3) of the Code) of a grantee, any vested option may
be exercised (to the extent exercisable as of the date of disability), within 12
months following disability, or within such shorter period as the Plan Committee
shall prescribe in the option agreement.

                                      -5-
<PAGE>   6

                  (c)      Other Termination. In the event an officer, director
or employee ceases to serve as an officer or director or employee of the Company
or a nonemployee ceases to provide services to the Company for any reason other
than as set forth in (a) and (b), above, any option which grantee holds shall
terminate at either (i) 60 days after the date a grantee-employee employment
terminates or a grantee-nonemployee ceases providing services to the Company or
(ii) such later date as determined by the Plan Committee and set forth in the
grant agreement for any grants other than incentive stock options. The foregoing
shall not extend any option or beyond the term specified in the grant agreement
and such option shall be exercisable only to the extent exercisable at the date
of termination of employment or cessation of services. The Plan Committee may in
its sole discretion permit the grantee of incentive stock options in whole or in
part to convert such options into nonqualified stock options prior to expiration
of the incentive stock options.

         13.      CHANGE OF CONTROL. Upon the occurrence of a Change in Control
(as hereinafter defined): All outstanding options granted under this Plan shall
become fully vested and exercisable and all Stock awarded or sold under this
Plan shall become fully vested. "Change of Control" means a change in the
beneficial ownership of the Company's voting stock or a change in the
composition of the Board which occurs as follows:

                  (a)      The acquisition (other than by a direct purchase of
shares from First Horizon Pharmaceutical Corporation ("Horizon")) by any
"person," including a "syndication" or "group", as those terms are used in
Section 13(d)(3) or 14(d)(2) of the Exchange Act, of securities of representing
20% or more of the combined voting power of Horizon's then outstanding voting
securities, which is any security that ordinarily possesses the power to vote in
the election of the Board of Directors of a corporation without the happening of
any precondition or contingency;

                  (b)      Horizon is merged or consolidated with another
corporation and immediately after giving effect to the merger or consolidation
either (i) less than 80% of the outstanding voting securities of the surviving
or resulting entity are then beneficially owned in the aggregate by (x) the
stockholders of Horizon immediately prior to such merger or consolidation, or
(y) if a record date has been set to determine the stockholders of Horizon
entitled to vote on such merger or consolidation, the stockholders of Horizon as
of such record date;

                  (c)      If at any time during a calendar year a majority of
the directors of Horizon are not persons who were directors at the beginning of
the calendar year; or

                  (d)      Horizon transfers substantially all of its assets to
another corporation which is a less than 80% owned subsidiary of Horizon.

         14.      SECURITIES LAW REQUIREMENTS. The Company's obligation to issue
shares of its Stock upon exercise of an option upon the grant of Stock awards,
or upon the sale of Stock is expressly conditioned upon the completion by the
Company of any registration or other qualification of such shares under any
state or federal law or rulings and regulations of any government regulatory
body or the making of such investment representations or other representations
and undertakings by the grantee or the recipient, as the case may be (or
grantee's legal representative, heir or legatee, as the case may be), in order
to comply with the requirements of any exemption from any such registration or
other qualification of such shares which the Company

                                      -6-
<PAGE>   7

in its sole discretion shall deem necessary or advisable. The Company may refuse
to permit the sale or other disposition of any shares acquired pursuant to any
such representation until it is satisfied that such sale or other disposition
would not be in contravention of applicable state or federal securities law.

         15.      TAX MATTERS. As a condition to the exercise of an option, the
vesting or award of a Stock bonus or the vesting or sale of shares of Stock, the
Company may require the grantee to pay over to the Company all applicable
federal, state and local taxes which the Company is required to withhold. At the
discretion of the Plan Committee and upon the request of an grantee, the minimum
statutory withholding tax requirements may be satisfied by the withholding of
shares of Stock otherwise issuable to the grantee upon the exercise of an
option. In the event grantee makes an 83(b) election under Code with respect to
any grant under the Plan, or disposes of an incentive stock option in a
transaction deemed to be a disqualifying disposition under Section 421 of the
Code, then, within 30 days of such 83(b) election or disqualifying disposition,
the grantee shall inform the Company of such actions.

         16.      AMENDMENTS TO PLAN. The Board of Directors may amend the Plan
at any time, except that:

                  (a)      The number of shares of Stock which may be reserved
for issuance under the Plan shall not be increased except as provided in Section
6 above without shareholder approval;

                  (b)      The option price per share of Stock subject to
incentive options may not be fixed at less than 100% of the Fair Market Value of
a share of Stock on the date the option is granted;

                  (c)      The expiration date of this Plan may not be extended;

                  (d)      The maximum period of ten (10) years during which the
options may be exercised may not be extended;

                  (e)      The class of persons eligible to receive grants under
the Plan as set forth in Section 3 shall not be changed without shareholder
approval; and

                  (f)      The benefits accruing to participants under this Plan
may not be materially increased.

Except as otherwise provided in this Plan, in no event may action by the Board
or shareholders to amend this Plan alter or impair the rights of a then existing
grantee, without grantee's consent, under any stock option, award or right
previously granted to him hereunder.

         17.      EFFECTIVE DATE OF PLAN; DURATION OF PLAN. This Plan shall
become effective upon the approval of the stockholders of the Company (the
"Effective Date"); provided, however, that to the extent that grants are made
under this Plan prior to its approval by the stockholders, the grants shall be
contingent on approval of the Plan by the stockholders of the Company at such
meeting. The Plan shall have a duration of ten years from the Effective Date;
provided that in the event of Plan termination, the Plan shall remain in effect
as long as any unexercised or

                                      -7-
<PAGE>   8

unvested grants under it are outstanding. No grant may be made under the Plan on
a date that is more than ten years from the Effective Date.

         18.      GRANT AGREEMENTS. Each option granted and each Stock award or
sale of shares of Stock under the Plan shall be evidenced by a written agreement
("Agreement") executed by the Company and accepted by the grantee, which (i)
shall contain each of the provisions and agreements herein specifically required
to be contained therein or a copy of this Plan attached as an exhibit to the
Agreement, (ii) if applicable, shall indicate whether such option is to be an
incentive stock option or a nonqualified stock option, and if it is to be an
incentive stock option, such Agreement shall contain terms and conditions
permitting such option to qualify for treatment as an incentive stock option
under Section 422 of the Code (by reference to the Plan or otherwise), (iii) may
contain the agreement of the grantee to remain in the employ of, or to render
services to, the Company for a period of time to be determined by the Plan
Committee (or such terms may be included in a separate agreement with the
Company), and (iv) may contain such other terms and conditions as the Plan
Committee deems desirable that are consistent with the Plan.

         19.      NO IMPLIED RIGHT OF EMPLOYMENT. Nothing in this Plan or in any
grant hereunder shall confer upon any recipient any right to continue in the
employ of the Company or to continue to perform services for the Company, or
shall interfere with or restrict in any way the rights of the Company to
discharge or terminate any officer, director, employee, advisor, independent
contractor or consultant at any time for any reason whatsoever, with or without
good cause.

                                      -8-

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