Document:

<PAGE>

                                                                    Exhibit 10.2

                                 LOAN AGREEMENT

     The undersigned, HOMESEEKERS.COM, INCORPORATED, a Nevada corporation
(hereinafter called "Borrower") to induce E-HOME.COM, INC. D/B/A HOMEMARK
(hereinafter called "Lender") to lend (but only to the extent provided herein
and otherwise in accordance with the terms and provisions hereof) sums not
exceeding in the aggregate ONE MILLION and 00/100 DOLLARS ($1,000,000.00)
(hereinafter called the "Loan"), hereby agree as follows:

     1.   LOAN AMOUNT. The principal amount of the Loan shall be a sum not
exceeding in the aggregate One Million and 00/100 Dollars ($1,000,000.00).
Lender shall make the following advances to the Borrower: $500,000.00 on June 6,
2001 and $500,000.00 on or before June 19, 2001.

     2.   LOAN DOCUMENTS. Borrower agrees to execute (and cause to be executed)
and deliver to, procure for and deposit with Lender the following (all of which
must be in form and substance reasonably acceptable to Lender):

          (a)  PROMISSORY NOTE. A Promissory Note (the "Note") executed by
Borrower in substantially the form as Exhibit "A" attached hereto and
incorporated herein by reference, evidencing the advances pursuant to this Loan,
on such terms and bearing such rate of interest as outlined below.

          (i)  Borrower agrees to pay accrued interest on the Maturity Date.

          (ii) Borrower agrees to pay principal on the Maturity Date.

          (iii) Interest shall accrue from the date of the Notes at the rate of
eight percent (8%) per annum simple interest.

          (b)  SECURITY AGREEMENT. Borrower shall execute and deliver to Lender
Security Agreements securing the payment of the Notes and Loan in substantially
the form as Exhibit "B" attached hereto and incorporated herein by reference.

          (c)  OTHER DOCUMENTS. Borrower shall execute such other documents and
instruments as Lender may reasonably require:

               (i)  to evidence the status, organization or authority of
Borrower to enter into, consummate and secure the Loan;

               (ii) to evidence the existence and perfection of a security
interest in the collateral.

LOAN AGREEMENT - PAGE 1
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     3.   NOTICE. Any notice or demand required or permitted to be given in
connection with the Loan shall be deemed to have been given, delivered and
received (whether actually received or not) five (5) days after deposited in any
official depository under the regular care and custody of the United States
Postal Service and sent by registered or certified mail, postage prepaid, return
receipt requested, addressed to the respective parties as follows:

          If to Lender:            E-Home.com, Inc. d/b/a Homemark
                                   17826 Davenport Road, Suite B
                                   Dallas, Texas 75252
                                   Fax: (972) 713-0291

          If to Borrower:          Homeseekers.com Incorporated
                                   6490 S. McCarran Blvd., Suite D-28
                                   Reno, Nevada 89509
                                   Fax: (775) 827-8182

Upon Borrower's compliance with the provisions of Paragraph 2 of this Loan
Agreement, Lender shall advance and disburse the first advance of $500,000.00
under Loan.

     4.   APPLICATION OF PROCEEDS. Application of the June 6, 2001 advance shall
be restricted to meeting the payroll obligations of Borrower for the payroll due
to employees on or about June 6, 2001.

     5.   MATURITY. All principal and interest under the Note for the June 6,
2001 advance shall be due and payable September 30, 2001 and all principal and
interest under the Note for the June 19, 2001 advance shall be immediately due
and payable on or before December 31, 2001.

     6.   REPRESENTATIONS AND WARRANTIES OF BORROWER. Borrower warrants,
represents, covenants, and agrees as follows:

          (a)  Borrower will permit Lender or Lender's representatives at any
and all times, to inspect and examine and copy all of Borrower's books and
records relating to the Loan and Notes.

          (b)  Borrower may not assign or otherwise transfer this Loan Agreement
or any right hereunder, and this Loan Agreement shall be binding upon Borrower
and the representatives and successors of Borrower.

          (c)  Borrower shall use its best efforts to protect and preserve the
fiscal integrity of the collateral for this loan and will not do or suffer to be
done any act whereby the value of any part of the collateral may be lessened.

LOAN AGREEMENT - PAGE 2
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     7.   SAVINGS CLAUSE. All agreements between Borrower and Lender, whether
now existing or hereafter arising, are expressly limited so that in no
contingency or event whatsoever, whether by reason of deferment in accordance
with this Loan Agreement or advancement of the Loan proceeds, acceleration of
maturity of the Loan, or otherwise, shall the amount paid or agreed to be paid
to Lender for the use, forbearance or detention of the money to be loaned
hereunder or otherwise, or for the performance or payment of any covenant or
obligation contained herein or in any other document evidencing, securing or
pertaining to the Loan, exceed the maximum permissible under applicable law. All
sums paid or agreed to be paid to Lender for the use, forbearance, or detention
of the Loan shall, to the extent permitted by applicable law, be amortized,
prorated, allocated and spread throughout the full stated term of such
indebtedness until payment in full so that the actual rate of interest on
account of such indebtedness is uniform throughout the full stated term thereof.
The terms and provisions of this Paragraph shall control every other provision
of all agreements between Borrower and Lender.

     8.   SURVIVAL. All agreements, representations and warranties made in this
Loan Agreement and in any other collateral documents evidencing or securing
payment of the Note or in any way related thereto shall survive the making of
any and all advances hereunder.

     This Loan Agreement is entered into at Reno, Nevada, effective on the 6th
day of June, 2001.

                                   BORROWER:

                                   HOMESEEKERS.COM, INCORPORATED
                                   a Nevada corporation

                                   By: /s/ John Giaimo
                                      ------------------------------------------
                                   Printed Name: John Giaimo
                                                --------------------------------
                                   Title: CEO
                                         ---------------------------------------

                                   LENDER:

                                   E-HOME.COM, INC. D/B/A HOMEMARK
                                   a Texas corporation

                                   By: /s/ Joseph B. Harker
                                      ------------------------------------------
                                   Printed Name: Joseph B. Harker
                                                --------------------------------
                                   Title: CEO
                                         ---------------------------------------

LOAN AGREEMENT - PAGE 3
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                                                                       EXHIBIT A

                                 PROMISSORY NOTE

$500,000.00                      Dallas, Texas                      June 6, 2001

          FOR VALUE RECEIVED, the undersigned, HOMESEEKERS.COM, INCORPORATED, a
Nevada corporation ("Maker"), hereby unconditionally promises to pay to the
order of E-HOME.COM, INC. D/B/A HOMEMARK, a Texas corporation ("Payee"), at such
address holder hereof may designate in writing to Maker, the principal sum of
FIVE HUNDRED THOUSAND AND NO/100S DOLLARS ($500,000.00), bearing simple interest
at the rate of eight percent (8%) per annum on any and all amounts from time to
time remaining unpaid hereon from the date hereof until maturity, howsoever such
maturity may be brought about.

          This Note shall be due and payable as follows: all principal and
accrued but unpaid interest shall be due and payable in full in one (1)
installment on or before September 30, 2001.

          Payments of principal and interest shall be made in legal and lawful
money of the United States of America at the address of Payee.

          It is the intention of Maker and Payee to conform strictly to the
usury laws in force in the State of Texas and the United States of America. It
is therefore agreed that (i) in the event that the maturity hereof is
accelerated by reason of an election by Payee, or if the same is prepaid prior
to maturity, all unearned interest, if any, shall be cancelled automatically, or
if theretofore paid, shall either be refunded to Maker or credited on the unpaid
principal amount of the Note, whichever remedy is chosen by Payee, (ii) the
aggregate of all interest and other charges constituting interest under
applicable law and contracted for, chargeable or receivable under this Note or
otherwise in connection with this loan transaction shall never exceed the
maximum amount of interest, nor produce a rate in excess of the maximum rate of
interest, which Payee may charge Maker under applicable law and in regard to
which Maker may not successfully assert the claim or defense of usury and (iii)
if any excess interest is provided for, it shall be deemed a mistake and the
same shall either be refunded to Maker or credited on the unpaid principal
amount hereof, and this Note shall be automatically deemed reformed so as to
permit only the collection of the maximum non-usurious rate and amount of
interest allowed by applicable law. All sums paid or agreed to be paid to the
holder or holders hereof for the use, forbearance or detention of the
indebtedness evidenced hereby shall, to the full extent permitted by applicable
law, be amortized, prorated, allocated and spread through the fullest term of
this Note.

                                       1
<PAGE>

          If any payment of principal or interest on this Note shall become due
on a Saturday, Sunday or other day on which Payee is not open for business in
Dallas, Texas such payment shall be made on the next business day on which Payee
is open for business.

          In the event of default in the payment of any installment of principal
when due hereunder, or upon the occurrence of any event of default under the
Security Agreement executed in connection herewith or any document or instrument
executed as security for this Note or otherwise in connection herewith, Payee
may declare the entirety of this Note, immediately due and payable, and failure
on the part of Payee to exercise said option and/or any other of its options,
rights and/or remedies shall not constitute a waiver on the part of Payee to
exercise the same at any other time.

          Time is of the essence with respect to this Note.

          If default is made in the payment of this Note and it is placed in the
hands of an attorney for collection, or collected through probate, bankruptcy or
other proceedings, or if suit is brought on this Note, Maker promises to pay to
Payee reasonable attorneys' fees in addition to all other amounts owing
hereunder.

          The indebtedness evidenced by this Note is secured by a certain
Security Agreement ("Security Agreement") of even date herewith, executed by
Maker in favor of Payee . The terms and conditions of the Security Agreement are
incorporated herein by reference.

          This Note shall be governed and construed in accordance with the laws
of the State of Texas, and, when and where applicable, the laws of the United
States of America. In the event any one or more provisions contained herein
should be invalid, illegal or unenforceable in any respect, the validity,
legality and enforceability of the remaining provisions contained herein shall
not in any way be affected thereby.

          EXECUTED AND EFFECTIVE the day and year first written above.

                                        MAKER:

                                        HOMESEEKERS.COM, INCORPORATED
                                        a Nevada corporation

                                        By:
                                           -------------------------------------
                                        Printed Name:
                                                     ---------------------------
                                        Title:
                                              ----------------------------------

                                       2
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                                                                       EXHIBIT B

                   SECURITY AGREEMENT AND FINANCING STATEMENT

          This SECURITY AGREEMENT AND FINANCING STATEMENT (the "Security
Agreement"), is executed to be effective as of the 6th day of June, 2001, by and
between E-HOME.COM, INC. D/B/A HOMEMARK, a Texas corporation (hereinafter
referred to as the "Secured Party"), and HOMESEEKERS.COM, INCORPORATED, a Nevada
corporation (hereinafter referred to as the "Secured Party").

                                P R E M I S E S:

     WHEREAS, Debtor has requested that Secured Party extend credit to and loan
Debtor pursuant to a Loan Agreement the amount of $500,000 (the "Indebtedness");
and

     WHEREAS, Secured Party is willing to extend credit to Debtor and make the
loan upon the terms and conditions as may be agreed and set forth from time to
time (hereinafter together with any and all amendments, modifications and
supplements thereto and thereof this arrangement is referred to as the "Credit
Agreement");

     WHEREAS, Debtor will benefit materially from Secured Party's extension of
credit as contemplated by the Credit Agreement; and

     WHEREAS, the Credit Agreement requires, among other things, as a condition
to the effectiveness thereof that this Security Agreement be in effect, pursuant
to which Debtor, shall grant Creditor a security interest in certain properties
of Debtor.

                               A G R E E M E N T:

     NOW, THEREFORE, in consideration of the foregoing premises and the mutual
covenants herein contained and other good and valuable consideration, the
receipt and sufficiency of which are hereby expressly acknowledged and
confessed, the parties hereto hereby agree as follows:

     1.   DEFINITIONS. The capitalized terms used herein shall have the meanings
respectively ascribed to each of said terms hereinbelow:

          "COLLATERAL" shall mean the Security and all other personal property
of Debtor in which Secured Party otherwise has a security interest.

          "CREDIT AGREEMENT" shall have the meaning ascribed to it in the
opening recitals hereof.

          "DEBTOR" shall have the meaning ascribed to it in the opening recitals
hereof.

SECURITY AGREEMENT AND FINANCING STATEMENT - Page 1
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          "DOCUMENTS" shall mean all documents, instruments and chattel paper of
every nature, whether now existing or hereafter acquired or created, and shall
include, in any event, all documents within the meaning of the Uniform
Commercial Code in effect in any applicable jurisdiction.

          "EVENT OF DEFAULT" shall have the meaning ascribed to it in SECTION
14(e) of this Security Agreement.

          "INSURANCE POLICIES" shall mean all policies of insurance of every
kind and nature, whether the same are presently existing or are hereafter
acquired, including, without limitation, all claims or rights to payment and
proceeds heretofore or hereafter arising from such policies with respect to any
of the Collateral.

          "LOAN DOCUMENTS" shall mean invoices, statements of account, work
orders, this Security Agreement and any and all other documents and instruments
related thereto or executed as security for the indebtedness governed thereby or
otherwise in connection therewith, as each of said documents and instruments may
be amended, modified or supplemented from time to time.

          "PROCEEDS" shall mean (i) any and all proceeds of any insurance,
indemnity, warranty or guaranty payable to Debtor from time to time with respect
to any of the Collateral, (ii) any and all payments (in any form whatsoever)
made or due and payable to Debtor, from time to time in connection with the
requisition, confiscation, condemnation, seizure or forfeiture of all or any
part of the Collateral by any governmental body, authority, bureau or agency (or
any person acting under color of governmental authority), (iii) any and all
other amounts from time to time paid or payable under or in connection with any
of the Collateral and (iv) shall include, in any event, all proceeds within the
meaning of the Uniform Commercial Code in effect in any applicable jurisdiction.

          "RECORDS" shall mean all books, correspondence, credit files, records
and other documents, whether presently existing or hereafter acquired or
created, including, without limitation, all computer programs, computer tapes,
cards, and other paper and documents in the possession or control of Debtor or
in the possession or control of any affiliate or computer service bureau
relating specifically to the Collateral.

          "SECURED OBLIGATIONS" shall have the meaning ascribed to it in SECTION
2 of this Security Agreement; it being expressly agreed and understood that
without in any way whatsoever limiting the generality of such definition
contained in said SECTION 2, Secured Obligations shall include, as of any date,
(i) the unpaid principal of and accrued interest on the Indebtedness governed by
the Credit Agreement and (ii) expenses and charges (including, without
limitation, indemnification or reimbursement obligation and attorneys' fees)
arising under the Credit Agreement, this Security Agreement and/or any other of
the Loan Documents.

          "SECURED PARTY" shall have the meaning ascribed to it in the opening
recitals hereof.

SECURITY AGREEMENT AND FINANCING STATEMENT - Page 2
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          "SECURITY" has the meaning assigned in SECTION 2 of this Security
Agreement.

     2.   GRANT OF SECURITY INTEREST. As security for the prompt and complete
payment, performance and discharge of all indebtedness and covenants,
conditions, agreements and other obligations of Debtor to Secured Party
(hereinafter collectively called the "Secured Obligations"), including, but not
limited to, all such indebtedness (including principal, interest and expenses
and costs), covenants, conditions, agreements and other obligations under or by
reason of the Indebtedness, the Credit Agreement, this Security Agreement and/or
any and all other Loan Documents or obligations of Debtor to Secured Party,
Debtor hereby assigns and pledges to Secured Party, and grants to Secured Party
a security interest in the following: (all of which are hereinafter collectively
called the "Security"):

          (a)  all Personal Property of Debtor wherever located.

          (b)  all Documents;

          (c)  all Insurance Policies;

          (d)  all additions, accessions, accessories, enlargements,
substitutions and replacements to and of each and every of the foregoing; and

          (e)  all Proceeds and products of any and/or all of the foregoing.

     3.   REPRESENTATIONS AND WARRANTIES. Debtor does hereby warrant and
represent to Secured Party as follows:

          (a)  Debtor has full power and authority to enter into this Security
Agreement and to grant to Secured Party the assignments, liens, pledges and
security interests contained herein;

          (b)  Debtor is, or in the case only of items hereinafter acquired
comprising part of the Collateral will be, the legal and equitable owner of each
item of Collateral;

          (c)  The security interest granted by this Security Agreement will be,
subject to prior security interests, liens, charges, right of setoff,
restriction, charge, and many of such items has been previously assigned,
pledged, or otherwise encumbered by the granting of a security interest in favor
of other parties, all of which Secured Party acknowledges and accepts;

          (d)  None of the Collateral is affixed to nor will become affixed to
real estate nor is any of the Collateral a fixture nor will any of the
Collateral become a fixture.

     4.   FUTURE ASSURANCES. Debtor agrees to execute and deliver, immediately
upon the request of Secured Party, all such further assurances, assignments,
financing statements and

SECURITY AGREEMENT AND FINANCING STATEMENT - Page 3
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other documents and writings and to do all such further acts and things as
Secured Party may from time to time require to protect, assure defend and/or
enforce its interests, rights and remedies created by, provided in or emanating
from this Security Agreement and to collect the Collateral, all at Debtor's sole
cost and expense.

     5.   LOCATIONS. Without the express prior written consent of Secured Party,
Debtor shall not remove any item comprising the security outside the states in
which they are located.

     6.   USE. Debtor hereby agrees that it shall not misuse, abuse, waste or
allow to deteriorate, except for the ordinary wear and tear of its intended
primary use, if applicable, any item compromising the Collateral nor allow or
permit the same to be misused, abused, wasted or to deteriorate, except for the
ordinary wear and tear of its intended primary use, if applicable. Nor shall
Debtor use any item comprising the Collateral, or permit the use thereof, in
violation of any applicable law nor of any term or provision of the Credit
Agreement. Debtor further agrees that it shall not permit the Collateral to
become attached to any real property or to become a fixture.

     7.   INSURANCE. Debtor shall insure the Collateral with companies
acceptable to Secured Party against such casualties and in such amounts as
Secured Party shall require. All insurance policies shall name Secured Party as
its interests may appear as loss payee and such policies evidencing same shall
be furnished to Secured Party. All insurance policies shall provide for written
notice to Secured Party at least thirty (30) days prior to cancellation.

     8.   PARTIES LIABLE ON COLLATERAL. Debtor will preserve the liability of
all account debtors and other persons liable with respect to any of the
collateral and will preserve the priority of all security therefor. Secured
Party shall have no duty to preserve such liability or security, but may do so
at the expense of Debtor.

     9.   OTHER ENCUMBRANCES. Except as otherwise acknowledge by Secured Party
that prior security interests exist on much of the Collateral, Debtor shall
attempt to maintain the Collateral free from any security interest, lien,
charge, encumbrance or other charge adverse to Secured Party, whether superior
or inferior, and shall defend the Collateral against all claims and demands of
all persons at any time claiming any interest therein adverse to Secured Party.

     10.  DISCHARGE OF TAXES, LIENS, ETC. BY SECURED PARTY. At its sole option,
Secured Party may discharge any taxes, liens, security interests or other
encumbrances at any time levied or placed on any item comprising the Collateral,
may pay for insurance thereon and may pay for the maintenance and preservation
thereof, and Debtor agrees to reimburse Secured Party pursuant to the foregoing
authorization, plus interest thereon at the rate specified in Section 12 of this
Security Agreement.

     11.  POWER OF ATTORNEY. Debtor hereby appoints Secured Party as its agent
and attorney-in-fact with full power in Debtor's name and behalf to do each and
every act and thing which Debtor may or is required to do under this Agreement;
however, Secured Party shall in no event be required to take any action
whatsoever hereunder. Without limiting the generality of the foregoing, Secured
Party may execute, sign, endorse, transfer or deliver in the name of

SECURITY AGREEMENT AND FINANCING STATEMENT - Page 4
<PAGE>

Debtor or otherwise notes, checks, drafts and/or other instruments for the
payment of money and receipts, certificates of origin, applications for
certificates of title or any other documents appropriate to evidence, perfect or
realize upon the security interest and obligations created by this Security
Agreement.

     12.  SECURED PARTY'S RIGHTS AND REMEDIES.

          (a)  (i)  Secured Party may at any time, notify any one or more of the
account debtors of Debtor and other persons whose obligations to Debtor have
been assigned, or in which Secured Party is granted a security interest,
hereunder and any other party Secured Party deems appropriate of this Security
Agreement, of the security interests and assignments contained herein, and that
payments under such obligations or in respect thereof shall be made directly to
Secured Party and/or to a lock box designated by Secured Party. If requested by
Secured Party, debtor will so notify such account debtors and other persons.
Secured Party may in its own name or in the name of Debtor communicate with such
account debtors and other persons.

          Secured Party shall also have the right at any time to collect any
money or property attributable to the interests of Debtor in the Collateral and
to enforce, whether judicially or non-judicially, any and all of Debtor's rights
and remedies respecting such money or property and to apply the same and/or the
proceeds thereof as security for or in reduction of the Secured Obligations. The
foregoing notwithstanding and without in any way limiting the generality of the
provisions of this Security Agreement, Debtor and Secured Party agree that
Secured Party shall not be liable in the collection of any such money or
property, except that Secured Party shall be obligated to apply the same as and
when received for the account of Debtor and/or as security for or in reduction
of the Secured Obligations, and it shall not be obligatory upon Secured Party to
file suit or take other action to enforce any rights of Debtor hereby assigned
or in which Secured Party is granted a security interest hereunder, unless
Secured Party is requested so to do by Debtor and unless and until Secured Party
is, to its satisfaction, indemnified by Debtor against costs of court,
attorney's fees, other expenses of collection and any and all other exposure of
Secured Party in connection therewith. If pursuant to the terms hereof Secured
Party obtains possession of any property, including money, and the same is held
as security for the Secured Obligations, same shall be deemed part of the
Collateral and subject to the terms hereof.

               (ii) All payments received by Debtor under or in connection with
any of the Collateral shall be held by Debtor in trust for Secured Party, shall
be segregated from all other funds of Debtor and shall, forthwith upon receipt
by Debtor, be turned over to the Secured Party, in the same form as received by
Debtor (duly endorsed to Secured Party, if appropriate), and Secured Party shall
apply the same as security for, or in reduction of, the Secured Obligations.
Debtor further agrees that upon the request of Secured Party, Debtor will
deposit, immediately upon receipt and in the form received, and properly
endorsed all payments received on the Collateral in a special account with and
designated by Secured Party. Any funds in such account shall be applied by
Secured Party as security for, or in reduction of, the Secured Obligations.

SECURITY AGREEMENT AND FINANCING STATEMENT - Page 5
<PAGE>

          (b)  Upon the occurrence of an Event of Default and at any time
thereafter, Secured Party, without in any way whatsoever waiving such Event of
Default, may, at its sole option, take possession of any one or more items
comprising the Collateral (of which it does not previously have possession) and
have, hold, manage, lease, and/or operate, the same on such terms and for such
period of time as Secured Party may deem proper; and further may collect and
receive all rents, issues, products, proceeds and profits therefrom, with full
power to make from time to time all alterations, renovations, repairs and
replacements thereto and thereof as may seem appropriate to Secured Party, and
to apply such rents, issues, products, proceeds and profits to the payment of
(1) the cost of all such alterations, renovations, repairs and replacements and
expenses incident to taking and retaining possession of such one or more items
of Security and the management and operation thereof and/or the discharge of all
taxes, charges, claims, assessments and any other encumbrances which may exist
thereon and the cost of keeping said property insured together with interest
thereon at the lesser of eighteen percent (18%) or the highest nonusurious rate
of interest allowed by applicable law or (2) the Secured Obligations together
with all costs and attorneys fees, all in such order of priority as to any of
such items as Secured Party in its discretion may determine, any statute, law,
custom or use to the contrary notwithstanding.

          (c)  Upon the occurrence of an Event of Default and at any time
thereafter, Secured Party may exercise, in addition to all other rights and
remedies granted to it in this Security Agreement, all rights and remedies of a
secured party under the Uniform Commercial Code as in effect in any jurisdiction
in which any of the Collateral may at the time be located and all rights and
remedies which Secured Party may have pursuant to the terms of the Credit
Agreement. Without limiting the generality of the foregoing, Debtor hereby
expressly agrees that in any such event, Secured Party, without demand of
performance or other demand, advertisement or notice of any kind (except the
notice specified below of time and place of public or private sale) to or upon
Debtor or any other person (all and each of which demands, advertisements and/or
notices are hereby expressly waived), may forthwith collect, receive,
appropriate and/or realize upon the Collateral, or any part thereof, and/or may
forthwith sell, lease assign, give option or options to purchase, or sell or
otherwise dispose of and deliver the Collateral, or any part thereof, (or
contract to do so), or any part thereof, in one or more parcels at public or
private sale or sales, at any exchange, broker's board or at any of Secured
Party's offices or elsewhere at such prices as Secured Party may deem best, for
cash or on credit or for future delivery without assumption of any credit risk.
Secured Party shall have the right upon such public sale or sales, and to the
fullest extent permitted by law, upon any such private sale or sales, to
purchase the whole or any part of the Collateral so sold, free of any right or
equity of redemption in Debtor, which right is hereby expressly waived and
released. Debtor further agrees, at the request of Secured Party, to assemble
the Collateral, and to make it available to Secured Party at places which
Secured Party shall reasonably select, whether at Debtor's premises or
elsewhere. Secured Party shall apply the net proceeds, if any, of any such
collection, recovery, receipt, appropriation, realization or sale, to the
payment of the Secured Obligations. To the extent permitted by applicable law,
Debtor waives all claims, damages and demands against Secured Party arising out
of the repossession, retention or sale of the Collateral. Debtor agrees that
Secured Party need not give more than 10 days' notice (which notification shall
be deemed given when mailed, postage prepaid, addressed to Debtor at its address
determined pursuant to SECTION 14 hereof) of the time and place of any public
sale or of the time after which

SECURITY AGREEMENT AND FINANCING STATEMENT - Page 6
<PAGE>

a private sale may take place and that such notice is reasonable notification of
such matters; provided however, no notification need be given to Debtor if it
has signed after default a statement renouncing or modifying any right to
notification of sale or other intended disposition. Secured Party shall not be
liable for any depreciation in the value of the Collateral or any part thereof.

          (d)  Debtor hereby expressly waives grace, notice, demand,
presentment, protest, notice of protest, notice of intention to accelerate,
notice of acceleration and all other notice of any kind whatsoever, in
connection with this Security Agreement and the Collateral, or any part thereof,
to the fullest extent permitted by applicable law.

          (e)  The following events, acts or occurrences shall constitute
"Events of Default" hereunder:

               (i)  The Debtor shall default in the payment of its obligations
to Secured Party pursuant to the Credit Agreement; or

               (ii) The Debtor shall default in the performance or observance of
any term, covenant, condition or agreement on its part to be performed or
observed under the Credit Agreement; or

               (iii) The Debtor shall default in the performance or observance
of any term, covenant, condition or agreement on its part to be performed or
observed hereunder (and not constituting an Event of Default under any other
clause of this Section), and such default shall continue unremedied for ten (10)
days after the earlier of the date on which (a) the Debtor knows or reasonably
should have known thereof, or (b) the Secured Party has given the Debtor notice
thereof; or

               (iv) Either (a) the Debtor or any of its Subsidiaries shall
become insolvent or generally fail to pay, or admit in writing its inability to
pay, its debts as they become due, or shall voluntarily commence any proceeding
or file any petition under any bankruptcy, insolvency or similar law or seeking
dissolution or reorganization or the appointment of a receiver, trustee,
custodian or liquidator for itself or a substantial portion of its property,
assets or business or to effect a plan or other arrangement with its creditors,
or shall file any answer admitting the jurisdiction of the court and the
material allegations of an involuntary petition filed against it in any
bankruptcy, insolvency or similar proceeding, or shall be adjudicated bankruptcy
or shall make a general assignment for the benefit of creditors, or shall
consent to, or acquiesce in the appointment or, a receiver, trustee, custodian
or liquidator for itself or a substantial portion of its property, assets or
business; or (b) an order for relief is entered against the Debtor or any of its
Subsidiaries; or (c) corporate action shall be taken by the Debtor or any of its
Subsidiaries for the purpose of effectuating any of the foregoing; or

               (v)  Involuntary proceedings or an involuntary petition shall be
commenced or filed against the Debtor or any of its Subsidiaries under any
bankruptcy, insolvency or similar law or seeking the dissolution or
reorganization of the Debtor or any of its Subsidiaries or the appointment of a
receiver, trustee, custodian or liquidator for the Debtor or

SECURITY AGREEMENT AND FINANCING STATEMENT - Page 7
<PAGE>

any of its Subsidiaries or of a substantial part of the property, assets or
business of the Debtor or any of its Subsidiaries, or any writ, judgment,
warrant of attachment, execution or similar process shall be issued or levied
against a substantial part of the property assets or business of the Debtor or
any of its Subsidiaries, and such proceedings or petition shall not be dismissed
or such writ, judgment, warrant of attachment, execution or similar process
shall not be released, vacated or fully bonded, within thirty (30) days after
commencement, filing or levy, as the case may be; or

     13.  NOTICES. Except where telephone instructions or notices are authorized
hereby to be given, all notices, demands, instructions and other communications
required or permitted to be given to or made upon any party hereto or any other
Person shall be in writing and shall be personally delivered or sent by
registered or certified mail, postage prepaid, return receipt requested, or by
courier (with messenger delivery specified in the case of a telegram),
nationally recognized overnight delivery service, or by telecopier. Unless
otherwise specified in a notice sent or delivered in accordance with the
foregoing provisions of this Section, notices, demands, instructions and other
communications in writing shall be given to or made upon the respective parties
hereto at their respective addresses (or to their respective telecopier numbers)
indicated below, and, in the case of telephonic instructions or notices, by
calling the telephone number or numbers indicated for such party below:

          If to Secured Party:          E-Home.com, Inc. d/b/a Homemark
                                        17826 Davenport Road, Suite B
                                        Dallas, Texas 75252
                                        Fax: (972) 713-0291

          If to Debtor:                 Homeseekers.com, Incorporated
                                        6490 S. McCarran Blvd., Suite D-28
                                        Reno, Nevada 89509
                                        Fax: (775) 827-8182

     All written notices, demands, instructions and other communications
hereunder shall be deemed to have been given and received (i) if mailed, four
Business Days after deposit with the United States Postal Service in the manner
set forth above or when receipted for at the address set forth above for the
Person to whom it is sent, whichever is earlier or (ii) if given by any other
method, when received.

     14.  SEVERABILITY. Any provision of this Security Agreement which is
prohibited or unenforceable in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

     15.  NO WAIVER; CUMULATIVE REMEDIES. Secured Party shall not by any act,
delay, omission, indulgence, release of security, release of any person
(including any endorser, guarantor or surety), or otherwise be deemed to have
waived any of its rights or remedies hereunder or available to Secured Party at
law or equity or otherwise, and no waiver shall be valid unless in writing,
signed by Secured Party, and then only to the extent therein set forth. A waiver
by Secured Party of any right or remedy hereunder on any one occasion shall not
be

SECURITY AGREEMENT AND FINANCING STATEMENT - Page 8
<PAGE>

construed as a bar to any right or remedy which Secured Party would otherwise
have had on any future occasion. No failure to exercise, nor any delay in
exercising, on the part of Secured Party, any right, power or privilege or at
law hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise of any right, power or privilege hereunder preclude any other or
further exercise thereof or the exercise of any other right, power or privilege.
The rights, remedies, powers and recourses hereunder provided are cumulative and
may be exercised singly or concurrently, and are not exclusive of any rights,
remedies, powers and recourses provided by law or elsewhere granted to Secured
Party, such that this Security Agreement is made and accepted without prejudice
to any of the rights remedies, powers and recourses possessed by Secured Party.
Further, the right of Secured Party to collect the indebtedness secured hereby
and to enforce any other security therefor may be exercised by Secured Party
either prior to, simultaneous with, or subsequent to any action taken by it
hereunder.

     16.  WAIVERS; AMENDMENTS. None of the terms and provisions of this Security
Agreement may be waived, altered, modified or amended except by an instrument in
writing executed by the parties hereto.

     17.  LIMITATION BY LAW. All rights, remedies, powers and resources provided
in this Security Agreement may be exercised only to the extent that the exercise
thereof does not violate any applicable provision of law, and all such
provisions are intended to be subject to all applicable mandatory provisions of
law which may be controlling and to be limited to the extent necessary so that
they will not render this Security Agreement invalid, unenforceable in whole or
in part, or not entitled to be recorded, registered, or filed under the
provisions of any applicable law.

     18.  WAIVER OF MARSHALLING. All rights to marshalling of assets of Debtor,
including any such right with respect to the Collateral, are hereby waived by
Debtor.

     19.  SECURITY AGREEMENT AS FINANCING STATEMENT. Secured Party is authorized
to file this Security Agreement or a photocopy hereof as a financing statement
with respect to any one or more items comprising the Collateral.

     20.  NOTICE OF CHANGES, ETC. Debtor will notify Secured Party immediately
(i) of any material change in the Collateral, (ii) of a change in Debtor's chief
place of business and (iii) of the occurrence of any Event of Default.

     21.  SUCCESSORS AND ASSIGNS. Secured Party may assign this Security
Agreement and its rights hereunder and/or the indebtedness secured hereby from
time to time. Further, this Security Agreement shall be binding upon Debtor and
its successors and assigns and shall inure to the benefit of Secured Party and
its successors and assigns; provided, however, (i) that the foregoing shall not
imply or be construed to imply that Debtor may dispose of any item comprising
the Collateral except as specifically allowed in the Credit Agreement and (ii)
that nothing contained herein, the Credit Agreement, any other of the Loan
Documents or elsewhere is intended or shall be construed to give any other
person any right, remedy or claim under, to or in respect of any of the
foregoing documents or the Collateral or any part thereof.

SECURITY AGREEMENT AND FINANCING STATEMENT - Page 9
<PAGE>

     22.  APPLICABLE LAW. This Security Agreement shall be governed by, and be
construed and interpreted in accordance with, the laws of the State of Texas in
force at the date of this instrument, except as required by mandatory provisions
of law and except to the extent that remedies provided under the laws of any
state other than Texas are governed by the laws of such state.

     23.  GENDER. Where appropriate, the use of one gender shall be construed as
the others or any of them; and the singular number shall be construed to include
the plural and vice versa.

     24.  COUNTERPARTS. This Security Agreement may be executed in several
counterparts, and by the parties hereto on separate counterparts, and each
counterpart, when so executed and delivered, shall constitute an original
instrument, and all such counterparts shall constitute but one and the same
instrument.

     IN WITNESS WHEREOF, Debtor and Secured Party have caused this Security
Agreement and Financing Statement to be executed and delivered by their duly
authorized officers as of the date first set forth above.

                                        DEBTOR:

                                        HOMESEEKERS.COM,  INCORPORATED
                                        a Nevada company

                                        By:
                                           -------------------------------------
                                        Printed Name:
                                                     ---------------------------
                                        Title:
                                              ----------------------------------

                                        SECURED PARTY:

                                        E-HOME.COM, INC. D/B/A HOMEMARK
                                        a Texas corporation

                                        By:
                                           -------------------------------------
                                        Printed Name:
                                                     ---------------------------
                                        Title:
                                              ----------------------------------

SECURITY AGREEMENT AND FINANCING STATEMENT - Page 10Prepared by MERRILL CORPORATION

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Exhibit 4.1    
  

TITAN PHARMACEUTICALS, INC.  

AMENDED 1998 STOCK OPTION PLAN  

1. Purpose.  

    The purpose of this plan (the "Plan") is to secure for Titan Pharmaceuticals, Inc. (the "Company") and its stockholders the benefits arising from
capital stock ownership by employees, officers and directors of, and consultants or advisors to, the Company who are expected to contribute to the Company's future growth and success. Except where the
context otherwise requires, the term "Company" shall include all present and future subsidiaries of the Company as defined in Sections 424(e) and 424(f) of the Internal Revenue Code of 1986, as
amended or replaced from time to time (the "Code"). Those provisions of the Plan which make express reference to Section 422 shall apply only to Incentive Stock Options (as that term is defined
in the Plan). 

2. Type of Options and Administration.  

    (a)  Types of Options.  Options granted pursuant to the Plan shall be authorized by action of the Board
of Directors of the Company (or a Committee designated by the Board of Directors) and may be either
incentive stock options ("Incentive Stock Options") meeting the requirements of Section 422 of the Code or non-statutory options which are not intended to meet the requirements of
Section 422 of the Code. 

    (b)  Administration.  The Plan will be administered by a committee (the "Committee") appointed by the
Board of Directors of the Company, whose construction and interpretation of the terms and provisions of the Plan shall be final and conclusive. The delegation of powers to the Committee shall be
consistent with applicable laws or regulations (including, without limitation, applicable state law and Rule 16b-3 promulgated under the Securities Exchange Act of 1934 (the
"Exchange Act"), or any successor rule ("Rule 16b-3")). The Committee may in its sole discretion grant options to purchase shares of the Company's Common Stock, $.001 par value per
share ("Common Stock") and issue shares upon exercise of such options as provided in the Plan. The Committee shall have authority, subject to the express provisions of the Plan, to construe the
respective option agreements and the Plan, to prescribe, amend and rescind rules and regulations relating to the Plan, to determine the terms and provisions of the respective option agreements, which
need not be identical, and to make all other determinations in the judgment of the Committee necessary or desirable for the administration of the Plan. The Committee may correct any defect or supply
any omission or reconcile any inconsistency in the Plan or in any option agreement in the manner and to the extent it shall deem expedient to carry the Plan into effect and it shall be the sole and
final judge of such expediency. No director or person acting pursuant to authority delegated by the Board of Directors shall be liable for any action or determination under the Plan made in good
faith. 

    (c)  Applicability of Rule 16b-3.  Those provisions of the Plan which make express
reference to Rule 16b-3 shall apply to the Company only at such time as the Company's Common Stock is registered under the Exchange Act, subject to the last sentence of
Section 3(b), and then only to such persons as are required to file reports under Section 16(a) of the Exchange Act (a "Reporting Person"). 

3. Eligibility.  

    (a)  General.  Options may be granted to persons who are, at the time of grant, employees, officers or
directors of, or consultants or advisors to, the Company or any subsidiaries of the Company as defined in Sections 424(e) and 424(f) of the Code ("Participants")  provided, that Incentive Stock Options
may only be granted to individuals who are employees of the Company (within the meaning of 

 

Section 3401(c) of the Code). A person who has been granted an option may, if he or she is otherwise eligible, be granted additional options if the Committee shall so determine. 

    (b)  Grant of Options to Reporting Persons.  The selection of a director or an officer who is a Reporting
Person (as the terms "director" and "officer" are defined for purposes of Rule 16b-3) as a recipient of an option, the timing of the option grant, the exercise price of the option
and the number of shares subject to the option shall be determined either (i) by the Board of Directors, (ii) by a committee consisting of two or more directors having full authority to
act in the matter, each of whom shall be an "Independent Director" as defined by Rule 1.62-27 of the Code or (iii) pursuant to provisions for automatic grants set forth in
Section 3(c) below. 

    (c)  Directors' Options.  Directors of the Company who are not stockholders of the Company owning in
excess of 10% of the outstanding Common Stock of the Company ("Eligible Directors") will be granted a Director Option to purchase 10,000 shares of Common Stock on the date that such person is first
elected or appointed a director ("Initial Director Option"). Commencing on the day immediately following the later of (i) the date of the annual meeting of stockholders for the Company's fiscal
year ending December 31, 1999, or (ii) the first annual meeting of stockholders following their election to the Board, each Eligible Director will receive an automatic
bi-annual (i.e. every two years) grant ("Automatic Bi-Annual Grant") of a Director Option to purchase 15,000 shares of Common Stock. In addition, each Eligible Director will
receive an automatic annual grant of an option to purchase 5,000 shares of Common Stock on the day immediately following the date of the annual meeting of stockholders for each committee of the Board
on which they serve ("Committee Grant"). The exercise price for each share subject to a Director Option shall be equal to the fair market value of the Common Stock on the date of grant. Initial
Director Options shall become exercisable in full twelve months from the date such options are granted and Automatic Bi-Annual Grants shall vest in 48 equal monthly installments commencing
on the date of grant. Committee Grants shall vest in 12 equal monthly installments commencing on the date of grant. All Director Options will expire the earlier of 10 years after the date of
grant or 90 days after the termination of the director's service on the Board. 

4. Stock Subject to Plan.  

    The stock subject to options granted under the Plan shall be shares of authorized but unissued or reacquired Common Stock. Subject to adjustment as provided in
Section 15 below, the maximum number of shares of Common Stock of the Company which may be issued and sold under the Plan is 2,500,000 shares. If an option granted under the Plan shall expire,
terminate or is cancelled for any reason without having been exercised in full, the unpurchased shares subject to such option shall again be available for subsequent option grants under the Plan. 

5. Forms of Option Agreements.  

    As a condition to the grant of an option under the Plan, each recipient of an option shall execute an option agreement in such form not inconsistent with the
Plan as may be approved by the Board of Directors. Such option agreements may differ among recipients. 

6. Purchase Price.  

    (a)  General.  The purchase price per share of stock deliverable upon the exercise of an option shall be
determined by the Board of Directors at the time of grant of such option; provided, however, that in the case of an Incentive Stock Option, the exercise
price shall not be less than 100% of the Fair Market Value (as hereinafter defined) of such stock, at the time of grant of such option, or less than 110% of such Fair Market Value in the case of
options described in Section 11(b). "Fair Market Value" of a share of Common Stock of the Company as of a specified date for the purposes of the Plan shall mean the lower of (i) the
average of the Closing Prices (as defined below) for the five (5) trading days 

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immediately preceding the date of grant or (ii) the Closing Price on the date of grant. "Closing Price" for purposes of the Plan shall mean the closing price of a share of the Common Stock on
the principal securities exchange (including the Nasdaq National Market) on which such shares are traded on the relevant date for which Fair Market Value is being determined, or on the next preceding
date on which such shares are traded if no shares were traded on such date, or if the shares are not traded on a securities exchange, Fair Market Value shall be deemed to be the average of the high
bid and low asked prices of the shares in the over-the-counter market on the relevant date for which Fair Market Value is being determined or on the next preceding date on
which such high bid and low asked prices were recorded. If the shares are not publicly traded, Fair Market Value of a share of Common Stock (including, in the case of any repurchase of shares, any
distributions with respect thereto which would be repurchased with the shares) shall be determined in good faith by the Board of Directors. In no case shall Fair Market Value be determined with regard
to restrictions other than restrictions which, by their terms, will never lapse. 

    (b)  Payment of Purchase Price.  Options granted under the Plan may provide for the payment of the
exercise price by delivery of cash or a check to the order of the Company in an amount equal to the exercise price of such options, by surrender of shares having a Fair Market Value equal to the
purchase price, or by any other means, including pursuant to provisions for cashless exercise, which the Board of Directors or Committee determines are consistent with the purpose of the Plan and with
applicable laws and regulations (including, without limitation, the provisions of Rule 16b-3 and Regulation T promulgated by the Federal Reserve Board). 

7. Option Period.  

    Subject to earlier termination as provided in the Plan, each option and all rights thereunder shall expire on such date as determined by the Board of Directors
and set forth in the applicable option
agreement, provided, that such date shall not be later than 10 years after the date on which the option is granted. 

8. Exercise of Options.  

    Each option granted under the Plan shall be exercisable either in full or in installments at such time or times and during such period as shall be set forth in
the option agreement evidencing such option, subject to the provisions of the Plan. Subject to the requirements in the immediately preceding sentence, if an option is not at the time of grant
immediately exercisable, the Board of Directors may (i) in the agreement evidencing such option, provide for the acceleration of the exercise date or dates of the subject option upon the
occurrence of specified events, and/or (ii) at any time prior to the complete termination of an option, accelerate the exercise date or dates of such option. 

9. Nontransferability of Options.  

    No option granted under this Plan shall be assignable or otherwise transferable by the optionee except by will or by the laws of descent and distribution or
pursuant to a qualified domestic relations order as defined in the Code or Title I of the Employee Retirement Income Security Act, or the rules thereunder. An option may be exercised during the
lifetime of the optionee only by the optionee. In the event an optionee dies during his employment by the Company or any of its subsidiaries, or during the three-month period following the date of
termination of such employment, his option shall thereafter be exercisable, during the period specified in the option agreement, by his executors or administrators to the full extent to which such
option was exercisable by the optionee at the time of his death during the periods set forth in Section 10 or 11(d). 

3

 

10. Effect of Termination of Employment or Other Relationship.  

    Except as provided in Section 11(d) with respect to Incentive Stock Options and except as otherwise determined by the Committee at the date of grant of
an Option, and subject to the provisions of the Plan, an optionee may exercise an option at any time within three months following the termination of the optionee's employment or other relationship
with the Company or within one year if such termination was due to the death or disability of the optionee but, except in the case of the optionee's death, in no event later than the expiration date
of the Option. If the termination of the optionee's employment is for cause or is otherwise attributable to a breach by the optionee of an employment or confidentiality or non-disclosure
agreement, the option shall expire immediately upon such termination. The Board of Directors shall have the power to determine what constitutes a termination for cause or a breach of an employment or
confidentiality or non-disclosure agreement, whether an optionee has
been terminated for cause or has breached such an agreement, and the date upon which such termination for cause or breach occurs. Any such determinations shall be final and conclusive and binding upon
the optionee. 

11. Incentive Stock Options.  

    Options granted under the Plan which are intended to be Incentive Stock Options shall be subject to the following additional terms and conditions: 

    (a)  Express Designation.  All Incentive Stock Options granted under the Plan shall, at the time of
grant, be specifically designated as such in the option agreement covering such Incentive Stock Options. 

    (b)  10% Shareholder.  If any employee to whom an Incentive Stock Option is to be granted under the Plan
is, at the time of the grant of such option, the owner of stock possessing more than 10% of the total combined voting power of all classes of stock of the Company (after taking into account the
attribution of stock ownership rules of Section 424(d) of the Code), then the following special provisions shall be applicable to the Incentive Stock Option granted to such individual: 

     (i) The
purchase price per share of the Common Stock subject to such Incentive Stock Option shall not be less than 110% of the Fair Market Value of one share of Common
Stock at the time of grant; and 

    (ii) The
option exercise period shall not exceed five years from the date of grant. 

    (c)  Dollar Limitation.  For so long as the Code shall so provide, options granted to any employee under
the Plan (and any other incentive stock option plans of the Company) which are intended to constitute Incentive Stock Options shall not constitute Incentive Stock Options to the extent that such
options, in the aggregate, become exercisable for the first time in any one calendar year for shares of Common Stock with an aggregate Fair Market Value, as of the respective date or dates of grant,
of more than $100,000. 

    (d)  Termination of Employment, Death or Disability.  No Incentive Stock Option may be exercised unless,
at the time of such exercise, the optionee is, and has been continuously since the date of grant of his or her option, employed by the Company, except that: 

     (i) an
Incentive Stock Option may be exercised within the period of three months after the date the optionee ceases to be an employee of the Company (or within such
lesser period as may be specified in
the applicable option agreement), provided, that the agreement with respect to such option may designate a longer exercise period and that the exercise
after such three-month period shall be treated as the exercise of a non-statutory option under the Plan; 

    (ii) if
the optionee dies while in the employ of the Company, or within three months after the optionee ceases to be such an employee, the Incentive Stock Option may be
exercised by the person to whom it is transferred by will or the laws of descent and distribution within the period of 

4

 

one year after the date of death (or within such lesser period as may be specified in the applicable option agreement); and 

    (iii) if
the optionee becomes disabled (within the meaning of Section 22(e)(3) of the Code or any successor provisions thereto) while in the employ of the
Company, the Incentive Stock Option may be exercised within the period of one year after the date the optionee ceases to be such an employee because of such disability (or within such lesser period as
may be specified in the applicable option agreement). 

For
all purposes of the Plan and any option granted hereunder, "employment" shall be defined in accordance with the provisions of Section 1.421-7(h) of the Income Tax Regulations
(or any successor regulations). Notwithstanding the foregoing provisions, no Incentive Stock Option may be exercised after its expiration date. 

12. Additional Provisions.  

    (a)  Additional Option Provisions.  The Board of Directors may, in its sole discretion, include
additional provisions in option agreements covering options granted under the Plan, including without limitation restrictions on transfer, repurchase rights, rights of first refusal, commitments to
pay cash bonuses, to make, arrange for or guaranty loans or to transfer other property to optionees upon exercise of options, or such other provisions as shall be determined by the Board of Directors;  provided, that such additional provisions shall not be inconsistent with any other term or condition of the Plan and such additional provisions shall
not cause any Incentive Stock Option granted under the Plan to fail to qualify as an Incentive Stock Option within the meaning of Section 422 of the Code. 

    (b)  Acceleration, Extension, Etc.  The Board of Directors may, in its sole discretion,
(i) accelerate the date or dates on which all or any particular option or options granted under the Plan may be exercised or (ii) extend the dates during which all, or any particular,
option or options granted under the Plan may be exercised; provided, however, that no such extension shall be permitted if it would cause the Plan to
fail to comply with Section 422 of the Code or with Rule 16b-3 (if applicable). 

13. General Restrictions.  

    (a)  Investment Representations.  The Company may require any person to whom an Option is granted, as a
condition of exercising such option, to give written assurances in substance and form satisfactory to the Company to the effect that such person is acquiring the Common Stock subject to the option or
award, for his or her own account for investment and not with any present intention of selling or otherwise distributing the same, and to such other effects as the Company deems necessary or
appropriate in order to comply with federal and applicable state securities laws, or with covenants or representations made by the Company in connection with any public offering of its Common Stock,
including any "lock-up" or other restriction on transferability. 

    (b)  Compliance With Securities Law.  Each Option shall be subject to the requirement that if, at any
time, counsel to the Company shall determine that the listing, registration or qualification of the shares subject to such option upon any securities exchange or automated quotation system or under
any state or federal law, or the consent or approval of any governmental or regulatory body, or that the disclosure of non-public information or the satisfaction of any other condition is
necessary as a condition of, or in connection with the issuance or purchase of shares thereunder, such option may not be exercised, in whole or in part, unless such listing, registration,
qualification, consent or approval, or satisfaction of such condition shall have been effected or obtained on conditions acceptable to the Board of Directors. Nothing herein shall be deemed to require
the Company to apply for or to obtain such listing, registration or qualification, or to satisfy such condition. 

5

 

14. Rights as a Stockholder.  

    The holder of an option shall have no rights as a stockholder with respect to any shares covered by the option (including, without limitation, any rights to
receive dividends or non-cash distributions with respect to such shares) until the date of issue of a stock certificate to him or her for such shares. No adjustment shall be made for
dividends or other rights for which the record date is prior to the date such stock certificate is issued. 

15. Adjustment Provisions for Recapitalizations, Reorganizations and Related Transactions.  

    (a)  Recapitalizations and Related Transactions.  If, through or as a result of any recapitalization,
reclassification, stock dividend, stock split, reverse stock split or other similar transaction, (i) the outstanding shares of Common Stock are increased, decreased or exchanged for a different
number or kind of shares or other securities of the Company, or (ii) additional shares or new or different shares or other non-cash assets are distributed with respect to such
shares of Common Stock or other securities, an appropriate and proportionate adjustment shall be made in (x) the maximum number and kind of shares reserved for issuance under or otherwise
referred to in the Plan, (y) the number and kind of shares or other securities subject to any then outstanding options under the Plan, and (z) the price for each share subject to any
then outstanding options under the Plan, without changing the aggregate purchase price as to which such options remain exercisable. Notwithstanding the foregoing, no adjustment shall be made pursuant
to this Section 15 if such adjustment (i) would cause the Plan to fail to comply with Section 422 of the Code or with Rule 16b-3 or (ii) would be
considered as the adoption of a new plan requiring stockholder approval. 

    (b)  Reorganization, Merger and Related Transactions.  All outstanding Options under the Plan shall
become fully exercisable for a period of sixty (60) days following the occurrence of any Trigger Event, whether or not such Options are then exercisable under the provisions of the applicable
agreements relating thereto. For purposes of the Plan, a "Trigger Event" is any one of the following events: 

     (i) the
date on which shares of Common Stock are first purchased pursuant to a tender offer or exchange offer (other than such an offer by the Company, any Subsidiary,
any employee benefit plan of the Company or of any Subsidiary or any entity holding shares or other securities of the Company for or pursuant to the terms of such plan), whether or not such offer is
approved or opposed by the Company and regardless of the number of shares purchased pursuant to such offer; 

    (ii) the
date the Company acquires knowledge that any person or group deemed a person under Section 13(d)-3 of the Exchange Act (other than the
Company, any Subsidiary, any employee benefit plan of the Company or of any Subsidiary or any entity holding shares of Common Stock or other securities of the Company for or pursuant to the terms of
any such plan or any individual or entity or group or affiliate thereof which acquired its beneficial ownership interest prior to the date the Plan was adopted by the Board), in a transaction or
series of transactions, has become the beneficial owner, directly or indirectly (with beneficial ownership determined as provided in Rule 13d-3, or any successor rule, under the
Exchange Act), of securities of the Company entitling the person or group to 30% or more of all votes (without consideration of the rights of any class or stock to elect directors by a separate class
vote) to which all stockholders of the Company would be entitled in the election of the Board of Directors were an election held on such date; and 

6

 

    (iii) the date of approval by the stockholders of the Company of an agreement (a "reorganization agreement") providing for: 

    (A) The
merger of consolidation of the Company with another corporation where the stockholders of the Company, immediately prior to the merger or consolidation, do not
beneficially own, immediately after the merger or consolidation, shares of the corporation issuing cash or securities in the merger or consolidation entitling such stockholders to 80% or more of all
votes (without consideration of the rights of any class of stock to elect directors by a separate class vote) to which all stockholders of such corporation would be entitled in the election of
directors or where the members of the Board of Directors of the Company, immediately prior to the merger or consolidation, do not, immediately after the merger or consolidation, constitute a majority
of the Board of Directors of the corporation issuing cash or securities in the merger or consolidation; or 

    (B) The
sale or other disposition of all or substantially all the assets of the Company. 

    (c)  Board Authority to Make Adjustments.  Any adjustments under this Section 15 will be made by
the Board of Directors, whose determination as to what adjustments, if any, will be made and the extent thereof will be final, binding and conclusive. No fractional shares will be issued under the
Plan on account of any such adjustments. 

16. Merger, Consolidation, Asset Sale, Liquidation, etc.  

    (a)  General.  In the event of any sale, merger, transfer or acquisition of the Company or substantially
all of the assets of the Company in which the Company is not the surviving corporation, and provided that after the Company shall have requested the acquiring or succeeding corporation (or an
affiliate thereof), that equivalent options shall be substituted and such successor corporation shall have refused or failed to assume all options outstanding under the Plan or issue substantially
equivalent options, then any or all outstanding options under the Plan shall accelerate and become exercisable in full immediately prior to such event. The Committee will notify holders of options
under the Plan that any such options shall be fully exercisable for a period of fifteen (15) days from the date of such notice, and the options will terminate upon expiration of such notice. 

    (b)  Substitute Options.  The Company may grant options under the Plan in substitution for options held
by employees of another corporation who become employees of the Company, or a subsidiary of the Company, as the result of a merger or consolidation of the employing corporation with the Company or a
subsidiary of the Company, or as a result of the acquisition by the Company, or one of its subsidiaries, of property or stock of the employing corporation. The Company may direct that substitute
options be granted on such terms and conditions as the Board of Directors considers appropriate in the circumstances. 

17. No Special Employment Rights.  

    Nothing contained in the Plan or in any option shall confer upon any optionee any right with respect to the continuation of his or her employment by the
Company or interfere in any way with the right of the Company at any time to terminate such employment or to increase or decrease the compensation of the optionee. 

18. Other Employee Benefits.  

    Except as to plans which by their terms include such amounts as compensation, the amount of any compensation deemed to be received by an employee as a result
of the exercise of an option or the sale of shares received upon such exercise will not constitute compensation with respect to which any other employee benefits of such employee are determined,
including, without limitation, benefits under 

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any bonus, pension, profit-sharing, life insurance or salary continuation plan, except as otherwise specifically determined by the Board of Directors. 

19. Amendment of the Plan.  

    (a) The
Board of Directors may at any time, and from time to time, modify or amend the Plan in any respect; provided, however, that if at any time the approval of the
stockholders of the Company is required under Section 422 of the Code or any successor provision with respect to Incentive Stock Options, the Board of Directors may not effect such modification
or amendment without such approval; and provided, further, that the provisions of Section 3(c) hereof shall not be amended more
than once every six months, other than to comport with changes in the Code, the Employer Retirement Income Security Act of 1974, as amended, or the rules thereunder. 

    (b) The
modification or amendment of the Plan shall not, without the consent of an optionee, affect his or her rights under an option previously granted to him or her.
With the consent of the optionee affected, the Board of Directors may amend outstanding option agreements in a manner not inconsistent with the Plan. The Board of Directors shall have the right to
amend or modify (i) the terms and provisions of the Plan and of any outstanding Incentive Stock Options granted under the Plan to the extent necessary to qualify any or all such options for
such favorable federal income tax treatment (including deferral of taxation upon exercise) as may be afforded incentive stock options under Section 422 of the Code and (ii) the terms and
provisions of the Plan and of any outstanding option to the extent necessary to ensure the qualification of the Plan under Rule 16b-3. 

20. Withholding.  

    (a) The
Company shall have the right to deduct from payments of any kind otherwise due to the optionee any federal, state or local taxes of any kind required by law to
be withheld with respect to any shares issued upon exercise of options under the Plan. Subject to the prior approval of the Company, which may be withheld by the Company in its sole discretion, the
optionee may elect to satisfy such obligations, in whole or in part, (i) by causing the Company to withhold shares of Common Stock otherwise issuable pursuant to the exercise of an option or
(ii) by delivering to the Company shares of Common Stock already owned by the optionee. The shares so delivered or withheld shall have a Fair Market Value equal to such withholding obligation
as of the date that the amount of tax to be withheld is to be determined. An optionee who has made an election pursuant to this Section 20(a) may only satisfy his or her withholding obligation
with shares of Common Stock which are not subject to any repurchase, forfeiture, unfulfilled vesting or other similar requirements. 

    (b) The
acceptance of shares of Common Stock upon exercise of an Incentive Stock Option shall constitute an agreement by the optionee (i) to notify the Company
if any or all of such shares are disposed of by the optionee within two years from the date the option was granted or within one year from the date the shares were issued to the optionee pursuant to
the exercise of the option, and (ii) if required by law, to remit to the Company, at the time of and in the case of any such disposition, an amount sufficient to satisfy the Company's federal,
state and local withholding tax obligations with respect to such disposition, whether or not, as to both (i) and (ii), the optionee is in the employ of the Company at the time of such
disposition. 

    (c) Notwithstanding
the foregoing, in the case of a Reporting Person whose options have been granted in accordance with the provisions of Section 3(b) herein, no
election to use shares for the payment of withholding taxes shall be effective unless made in compliance with any applicable requirements of Rule 16b-3. 

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21. Cancellation and New Grant of Options, Etc.  

    The Board of Directors shall have the authority to effect, at any time and from time to time, with the consent of the affected optionees, (i) the
cancellation of any or all outstanding options under the Plan and the grant in substitution therefor of new options under the Plan covering the same or different numbers of shares of Common Stock and
having an option exercise price per share which may be lower or higher than the exercise price per share of the cancelled options or (ii) the amendment of the terms of any and all outstanding
options under the Plan to provide an option exercise price per share which is higher or lower than the then-current exercise price per share of such outstanding options;  provided, however, that the
Board of Directors shall not take any of the actions described in (i) or (ii) hereof unless (a) a
committee composed entirely of independent members of the Board of Directors has determined that such actions fulfill a legitimate corporate purpose; (b) the total number of options subject to
action under this Section 21 shall be no more than 25% of the shares authorized for issuance under the Plan; and (c) such actions shall be limited to instances in which the Board of
Directors believes it is necessary or desirable to maintain option value due to extraordinary circumstances beyond the control of the Company's management. 

22. Effective Date and Duration of the Plan.  

    (a)  Effective Date.  The Plan shall become effective when adopted by the Board of Directors, but no
Incentive Stock Option granted under the Plan shall become exercisable unless and until the Plan shall have been approved by the Company's stockholders. If such stockholder approval is not obtained
within twelve months after the date of the Board's adoption of the Plan, no options previously granted under the Plan shall be deemed to be Incentive Stock Options and no Incentive Stock Options shall
be granted thereafter. Amendments to the Plan not requiring stockholder approval shall become effective when adopted by the Board of Directors; amendments requiring shareholder approval (as provided
in Section 21) shall become effective when adopted by the Board of Directors, but no Incentive Stock Option granted after the date of such amendment shall become exercisable (to the extent that
such amendment to the Plan was required to enable the Company to grant such Incentive Stock Option to a particular optionee) unless and until such amendment shall have been approved by the Company's
stockholders. If such stockholder approval is not obtained within twelve months of the Board's adoption of such amendment, any Incentive Stock Options granted on or after the date of such amendment
shall terminate to the extent that such amendment to the Plan was required to enable the Company to grant such option to a particular optionee. Subject to this limitation, options may be granted under
the Plan at any time after the effective date and before the date fixed for termination of the Plan. 

    (b)  Termination.  Unless sooner terminated in accordance with Section 16, the Plan shall
terminate upon the earlier of (i) the close of business on the day next preceding the tenth anniversary of the date of its adoption by the Board of Directors, or (ii) the date on which
all shares available for issuance under the Plan shall have been issued pursuant to the exercise or cancellation of options granted under the Plan. If the date of termination is determined under
(i) above, then options outstanding on such date shall continue to have force and effect in accordance with the provisions of the instruments evidencing such options. 

23. Provision for Foreign Participants.  

    The Board of Directors may, without amending the Plan, modify awards or options granted to participants who are foreign nationals or employed outside the
United States to recognize differences in laws, rules, regulations or customs of such foreign jurisdictions with respect to tax, securities, currency, employee benefit or other matters. 

9

 

24. Governing Law.  

    The provisions of this Plan shall be governed and construed in accordance with the laws of the State of Delaware without regard to the principles of conflicts
of laws. 

Adopted
by the Board of Directors on June 10, 1998 and amended February 2, 2001. 

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QuickLinks

Exhibit 4.1

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