Document:

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                                                                    Exhibit 4.02

                                                                  EXECUTION COPY

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                          SECOND SUPPLEMENTAL INDENTURE

                            Dated as of March 6, 2001

                                     between

                               HARTFORD LIFE, INC.

                                    AS ISSUER

                                       and

                            WILMINGTON TRUST COMPANY,

                                   AS TRUSTEE

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                                TABLE OF CONTENTS

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                                    ARTICLE I
                                   DEFINITIONS

SECTION 1.1    Definition of Terms.....................................     2

                                   ARTICLE II
                 GENERAL TERMS AND CONDITIONS OF THE DEBENTURES

SECTION 2.1    Designation and Principal Amount........................     3
SECTION 2.2    Maturity................................................     3
SECTION 2.3    Form and Payment........................................     3
SECTION 2.4    Global Debenture........................................     3
SECTION 2.5    Interest................................................     5
SECTION 2.6    Authorized Denominations................................     6
SECTION 2.7    Redemption..............................................     6
SECTION 2.8    Appointment of Agents...................................     6
SECTION 2.9    Depositary..............................................     6

                                   ARTICLE III
                          REDEMPTION OF THE DEBENTURES

SECTION 3.1    Special Event Redemption................................     6
SECTION 3.2    Optional Redemption by Company..........................     7
SECTION 3.3    No Sinking Fund.........................................     8

                                   ARTICLE IV
                      EXTENSION OF INTEREST PAYMENT PERIOD

SECTION 4.1    Extension of Interest Payment Period....................     8
SECTION 4.2    Notice of Extension.....................................     9
SECTION 4.3    Limitation of Transactions..............................     9

                                    ARTICLE V
                                    EXPENSES

SECTION 5.1    Payment of Expenses....................................     10
SECTION 5.2    Payment Upon Resignation or Removal....................     11

                                   ARTICLE VI
                                     NOTICE

SECTION 6.1    Notice by the Company..................................     11
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                                   ARTICLE VII
                          COVENANT TO LIST ON EXCHANGE

SECTION 7.1    Listing on an Exchange.................................     12

                                  ARTICLE VIII
                                FORM OF DEBENTURE

SECTION 8.1    Form of Debenture......................................     12

                                   ARTICLE IX
                          ORIGINAL ISSUE OF DEBENTURES

SECTION 9.1    Original Issue of Debentures...........................     12

                                    ARTICLE X
                                    COVENANTS

SECTION 10.1   Covenants as to Trust..................................     12

                                   ARTICLE XI
                                  MISCELLANEOUS

SECTION 11.1   Ratification of Indenture..............................     13
SECTION 11.2   Trustee Not Responsible for Recitals...................     13
SECTION 11.3   Governing Law..........................................     13
SECTION 11.4   Separability...........................................     13
SECTION 11.5   Counterparts...........................................     14
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      SECOND SUPPLEMENTAL INDENTURE, dated as of March 6, 2001 (the "Second
Supplemental Indenture"), between Hartford Life, Inc., a corporation duly
organized and existing under the laws of the State of Delaware, having its
principal office at 200 Hopmeadow Street, Simsbury, Connecticut 06089, (the
"Company"), and Wilmington Trust Company, as trustee (the "Trustee").

      WHEREAS, the Company executed and delivered the indenture dated as of June
1, 1998 (the "Indenture") to the Trustee to provide for the future issuance of
the Company's unsecured debentures, notes or other evidence of indebtedness (the
"Securities"), to be issued from time to time in one or more series as might be
determined by the Company under the Indenture;

      WHEREAS, pursuant to the terms of the Indenture, the Company desires to
provide for the establishment of a new series of its Securities to be known as
its 7.625% Junior Subordinated Deferrable Interest Debentures, due 2050 (the
"Debentures"), the form and substance of such Debentures and the terms,
provisions and conditions thereof to be set forth as provided in the Indenture
and this Second Supplemental Indenture;

      WHEREAS, Hartford Life Capital II, a Delaware statutory business trust
(the "Trust"), has offered to the public $200,000,000 aggregate liquidation
amount of its 7.625% Trust Preferred Securities (the "Preferred Securities"),
representing undivided beneficial interests in the assets of the Trust and
proposes to invest the proceeds from such offering, together with the proceeds
of the issuance and sale by the Trust to the Company of $6,186,000 aggregate
liquidation amount of its 7.625% Trust Originated Common Securities (the "Common
Securities" and together with the Preferred Securities, the "Trust Securities"),
in $206,186,000 aggregate principal amount of the Debentures;

      WHEREAS, the Company has requested that the Trustee execute and deliver
this Second Supplemental Indenture;

      WHEREAS, all requirements necessary to make this Second Supplemental
Indenture a valid instrument in accordance with its terms, and to make the
Debentures, when executed by the Company and authenticated and delivered by the
Trustee, the valid obligations of the Company, have been performed; and

      WHEREAS, the execution and delivery of this Second Supplemental Indenture
has been duly authorized in all respects:

      NOW THEREFORE, in consideration of the purchase and acceptance of the
Debentures by the Holders thereof, and for the purpose of setting forth, as
provided in the Indenture, the form and substance of the Debentures and the
terms, provisions and conditions thereof, the Company covenants and agrees with
the Trustee as follows:
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                                    ARTICLE I
                                   DEFINITIONS

SECTION 1.1. Definition of Terms.

      Unless the context otherwise requires:

      (a) each term defined in the Indenture has the same meaning when used in
this Second Supplemental Indenture;

      (b) each term defined anywhere in this Second Supplemental Indenture has
the same meaning throughout;

      (c) the singular includes the plural and vice versa;

      (d) headings are for convenience of reference only and do not affect
interpretation;

      (e) the following terms have the meanings given to them in the
Declaration: (i) Business Day; (ii) Clearing Agency; (iii) Delaware Trustee;
(iv) Preferred Security Certificate; (v) Institutional Trustee; (vi) Regular
Trustees; (vii) Special Event; and (viii) Underwriting Agreement;

      (f) the following terms have the meanings given to them in this Section
1.1(f):

      "Additional Interest" shall have the meaning set forth in Section 2.5.

      "Compounded Interest" shall have the meaning set forth in Section 4.1.

      "Declaration" means the Amended and Restated Declaration of Trust of
Hartford Life Capital II, a Delaware statutory business trust, dated as of March
6, 2001.

      "Deferred Interest" shall have the meaning set forth in Section 4.1.

      "Dissolution Event" means that the Trust is to be dissolved in accordance
with the Declaration, and the Debentures held by the Institutional Trustee are
to be distributed to the holders of the Trust Securities issued by the Trust pro
rata in accordance with the Declaration.

      "Extended Interest Payment Period" shall have the meaning set forth in
Section 4.1.

      "Global Debenture" shall have the meaning set forth in Section 2.4.

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      "Maturity Date" means the date on which the Debentures mature and on which
the principal shall be due and payable together with all accrued and unpaid
interest thereon including Compounded Interest and Additional Interest, if any.

      "Non Book-Entry Preferred Securities" shall have the meaning set forth in
Section 2.4.

      "Optional Redemption Price" shall have the meaning set forth in Section
3.2.

                                   ARTICLE II
                 GENERAL TERMS AND CONDITIONS OF THE DEBENTURES

SECTION 2.1. Designation and Principal Amount.

      There is hereby authorized a series of Securities designated the "7.625%
Junior Subordinated Deferrable Interest Debentures, Series B, due 2050," limited
in aggregate principal amount to $206,186,000, which amount shall be as set
forth in any written order of the Company for the authentication and delivery of
Debentures pursuant to Section 3.3 of the Indenture.

SECTION 2.2. Maturity.

      The Maturity Date will be February 15, 2050.

SECTION 2.3. Form and Payment.

      Except as provided in Section 2.4, the Debentures shall be issued in fully
registered certificated form without interest coupons. Principal and interest on
the Debentures issued in certificated form will be payable, the transfer of such
Debentures will be registrable and such Debentures will be exchangeable for
Debentures bearing identical terms and provisions at the office or agency of the
Institutional Trustee; provided, however, that payment of interest may be made
at the option of the Company by check mailed to the Holder at such address as
shall appear in the Security Register. Notwithstanding the foregoing, so long as
the Holder of any Debentures is the Institutional Trustee, the payment of the
principal of and interest (including Compounded Interest and Additional
Interest, if any) on such Debentures held by the Institutional Trustee will be
made at such place and to such account as may be designated by the Institutional
Trustee.

SECTION 2.4. Global Debenture.

      (a) In connection with a Dissolution Event,

            (i) the Debentures in certificated form may be presented to the
Trustee by the Institutional Trustee in exchange for a global Debenture in an
aggregate principal amount equal to the aggregate principal amount of all
outstanding Debentures (a "Global

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Debenture"), to be registered in the name of the Depositary, or its nominee, and
delivered by the Institutional Trustee to the Depositary for crediting to the
accounts of its participants pursuant to the instructions of the Regular
Trustees. The Company upon any such presentation shall execute a Global
Debenture in such aggregate principal amount and deliver the same to the Trustee
for authentication and delivery in accordance with the Indenture and this Second
Supplemental Indenture. Payments on the Debentures issued as a Global Debenture
will be made to the Depositary; and

            (ii) if any Preferred Securities are held in non book-entry
certificated form, the Debentures in certificated form may be presented to the
Trustee by the Institutional Trustee and any Preferred Security Certificate
which represents Preferred Securities other than Preferred Securities held by
the Clearing Agency or its nominee ("Non Book-Entry Preferred Securities") will
be deemed to represent beneficial interests in Debentures presented to the
Trustee by the Institutional Trustee having an aggregate principal amount equal
to the aggregate liquidation amount of the Non Book-Entry Preferred Securities
until such Preferred Security Certificates are presented to the Security
Registrar for transfer or reissuance at which time such Preferred Security
Certificates will be cancelled and a Debenture, registered in the name of the
holder of the Preferred Security Certificate or the transferee of the holder of
such Preferred Security Certificate, as the case may be, with an aggregate
principal amount equal to the aggregate liquidation amount of the Preferred
Security Certificate cancelled, will be executed by the Company and delivered to
the Trustee for authentication and delivery in accordance with the Indenture and
this Second Supplemental Indenture. On issue of such Debentures, Debentures with
an equivalent aggregate principal amount that were presented by the
Institutional Trustee to the Trustee will be deemed to have been cancelled.

      (b) Unless and until it is exchanged for the Debentures in registered
form, a Global Debenture may be transferred, in whole but not in part, only to
another nominee of the Depository, or to a successor Depositary selected or
approved by the Company or to a nominee or such successor Depositary.

      (c) If at any time the Depositary notifies the Company that it is
unwilling or unable to continue as Depositary or if at any time the Depositary
for such series shall no longer be registered or in good standing under the
Securities Exchange Act of 1934, as amended, or other applicable statute or
regulation, and a successor Depositary for such series is not appointed by the
Company within 90 days after the Company receives such notice or becomes aware
of such condition, as the case may be, the Company will execute, and, subject to
Article III of the Indenture, the Trustee, upon written notice from the Company,
will authenticate and deliver the Debentures in definitive registered form
without coupons, in authorized denominations, and in an aggregate principal
amount equal to the principal amount of the Global Debenture in exchange for
such Global Debenture. In addition, the Company may at any time determine that
the Debentures shall no longer be represented by Global Debenture. In such event
the Company will execute, and subject to Section 3.1 of the Indenture, the
Trustee, upon receipt of an Officers' Certificate evidencing such determination
by the Company, will authenticate and deliver

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the Debentures in definitive registered form without coupons, in authorized
denominations, and in an aggregate principal amount equal to the principal
amount of the Global Debenture in exchange for such Global Debenture. Upon the
exchange of the Global Debenture for such Debentures in definitive registered
form without coupons, in authorized denominations, the Global Debenture shall be
cancelled by the Trustee. Such Debentures in definitive registered form issued
in exchange for the Global Debenture shall be registered in such name and in
such authorized denominations as the Depositary pursuant to instructions from
its direct or indirect participants or otherwise, shall instruct the Trustee.
The Trustee shall deliver such Securities to the Depositary for delivery to the
Persons in whose names such Securities are so registered.

SECTION 2.5. Interest.

      (a) Each Debenture will bear interest at the rate of 7.625% per annum (the
"Coupon Rate") from and including the original date of issuance until the
principal thereof becomes due and payable, and on any overdue principal and (to
the extent that payment of such interest is enforceable under applicable law) on
any overdue installment of interest at the Coupon Rate, compounded quarterly,
payable (subject to the provisions of Article IV) quarterly in arrears on
January 15, April 15, July 15 and October 15 of each year (each, an "Interest
Payment Date"), commencing on April 15, 2001, to the Person in whose name such
Debenture or any predecessor Debenture is registered, at the close of business
on the regular record date for such interest installment, which, in respect of
(i) Debentures of which the Institutional Trustee is the Holder and the
Preferred Securities are in book-entry only form or (ii) a Global Debenture,
shall be the close of business on the Business Day next preceding that Interest
Payment Date. Notwithstanding the foregoing sentence, if (i) the Debentures are
held by the Institutional Trustee and the Preferred Securities are no longer in
book-entry only form or (ii) the Debentures are not represented by a Global
Debenture, the Company may select a regular record date for such interest
installment which shall be more than 14 days but less than 60 days prior to an
Interest Payment Date.

      (b) The amount of interest payable for any period will be computed on the
basis of a 360-day year of twelve 30-day months. Except as provided in the
following sentence, the amount of interest payable for any period shorter than a
full quarterly period for which interest is computed, will be computed on the
basis of the actual number of days elapsed during such period in relation to the
deemed 90 days in such quarterly period. In the event that any date on which
interest is payable on the Debentures is not a Business Day, then payment of
interest payable on such date will be made on the next succeeding day which is a
Business Day (and without any interest or other payment in respect of any such
delay), except that, if such Business Day is in the next succeeding calendar
year, such payment shall be made on the immediately preceding Business Day, in
each case with the same force and effect as if made on the relevant Interest
Payment Date.

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      (c) If, at any time while the Institutional Trustee is the Holder of any
Debentures, the Trust or the Institutional Trustee is required to pay any taxes,
duties, assessments or governmental charges of whatever nature (other than
withholding taxes) imposed by the United States, or any other taxing authority,
then, in any case, the Company will pay as additional interest ("Additional
Interest") on the Debentures held by the Institutional Trustee, such additional
amounts as shall be required so that the net amounts received and retained by
the Trust and the Institutional Trustee after paying such taxes, duties,
assessments or other governmental charges will be not less than the amounts the
Trust and the Institutional Trustee would have received had no such taxes,
duties, assessments or other government charges been imposed.

SECTION 2.6. Authorized Denominations.

      The Debentures shall be issuable in denominations of $25 and integral
multiples of $25 in excess thereof.

SECTION 2.7. Redemption.

      The Debentures are not subject to redemption at the option of the Holder
and are subject to redemption at the option of the Issuer or otherwise as
provided in Article III hereof.

SECTION 2.8. Appointment of Agents.

      The Company hereby appoints, or confirms the appointment of, Wilmington
Trust Company as the initial Trustee, Securities Registrar and Paying Agent with
respect to the Debentures, subject to the provisions of the Indenture with
respect to the resignation, removal and succession, and subject, further, to the
right of the Company to appoint additional agents.

SECTION 2.9. Depositary.

      The Depository Trust Company (or its nominee) shall act as the initial
Depositary for any Global Debenture which may be issued pursuant to this Second
Supplemental Indenture.

                                  ARTICLE III.
                          REDEMPTION OF THE DEBENTURES

SECTION 3.1. Special Event Redemption.

      If a Special Event has occurred and is continuing, then, notwithstanding
Section 3.2(a) but subject to Section 3.2(c), the Company shall have the right
upon not less than 30 days nor more than 60 days notice to the Holders of the
Debentures to redeem the Debentures, in whole but not in part, for cash within
90 days following the occurrence of such Special Event (the "90 Day Period") at
a redemption price equal to

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100% of the principal amount to be redeemed plus any accrued and unpaid interest
thereon to the date of such redemption (the "Redemption Price"). The Redemption
Price shall be paid prior to 12:00 noon, New York time, on the date of such
redemption or such earlier time as the Company determines, provided that the
Company shall deposit with the Trustee an amount sufficient to pay the
Redemption Price by 10:00 a.m., New York time, on the date such Redemption Price
is to be paid.

SECTION 3.2. Optional Redemption by Company.

      (a) Subject to the provisions of Section 3.2(c) and to the provisions of
Article XI of the Indenture, except as otherwise may be specified in this Second
Supplemental Indenture, the Company shall have the right to redeem the
Debentures, in whole or in part, from time to time, on or after March 6, 2006,
at a redemption price equal to 100% of the principal amount to be redeemed plus
any accrued and unpaid interest thereon to the date of such redemption (the
"Optional Redemption Price"); provided that, prior to March 6, 2006, the Company
shall also have the right to redeem the Debentures at any time, in whole or in
part, at a redemption price equal to the accrued and unpaid interest on the
Debentures so redeemed to the date fixed for redemption, plus the greater of (a)
the principal amount thereof or (b) an amount equal to the Discounted Remaining
Payments to Initial Optional Prepayment Date (as defined herein).

            "Discounted Remaining Payments to Initial Optional Prepayment Date"
means an amount equal to the sum of the Current Values of the amounts of
interest and principal that would have been payable by the Company pursuant to
the terms of the Debentures on each Interest Payment Date after the redemption
date through and including March 6, 2006, assuming optional redemption of the
Debentures on March 6, 2006.

            "Current Value" means, (i) in respect of any payment of interest,
the present value of that amount on the redemption date after discounting that
amount on a quarterly basis from the originally scheduled date for payment, and
(ii) in respect of any payment of principal, the present value of that amount on
the redemption date after discounting that amount on a quarterly basis from
March 6, 2006. In each case, the discount rate shall be the Treasury Rate plus
10 basis points.

            "Treasury Rate" means a per annum rate (expressed as a decimal and,
in the case of United States Treasury bills, converted to a per annum yield)
determined on the redemption date to be the per annum rate equal to the
semiannual bond equivalent yield to maturity (adjusted to reflect quarterly
compounding in the case of the Debentures) for United States Treasury securities
maturing at March 6, 2006, as determined by reference to the weekly average
yield to maturity for United States Treasury securities maturing on March 6,
2006, if reported in the most recent Statistical Release H. 15(519) of the Board
of Governors of the Federal Reserve, or, if no such securities mature at March
6, 2006, by interpolation between the most recent weekly average yields to
maturity for two series of United States Treasury securities, (i) one

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maturing as close as possible to, but earlier than, March 6, 2006 and (ii) the
other maturing as close as possible to, but later than, March 6, 2006, in each
case as published in the most recent Statistical Release H. 15(519) of the Board
of Governors of the Federal Reserve.

      (b) Any redemption pursuant to this paragraph will be made upon not less
than 30 days nor more than 60 days notice to the Holder of the Debentures, at
the Optional Redemption Price. If the Debentures are only partially redeemed
pursuant to this Section 3.2, the Debentures will be redeemed pro rata or by lot
or by any other method utilized by the Trustee; provided, that if at the time of
redemption the Debentures are registered as a Global Debenture, the Depositary
shall determine, in accordance with its procedures, the principal amount of such
Debentures held by each Holder of Debenture to be redeemed. The Optional
Redemption Price shall be paid prior to 12:00 noon, New York time, on the date
of such redemption or at such earlier time as the Company determines provided
that the Company shall deposit with the Trustee an amount sufficient to pay the
Optional Redemption Price by 10:00 a.m., New York time, on the date such
Optional Redemption Price is to be paid.

      (c) If a partial redemption of the Debentures would result in the
delisting of the Preferred Securities issued by the Trust from any national
securities exchange or other organization on which the Preferred Securities are
then listed, the Company shall not be permitted to effect such partial
redemption and may only redeem the Debentures in whole.

SECTION 3.3. No Sinking Fund.

      The Debentures are not entitled to the benefit of any sinking fund.

                                   ARTICLE IV
                      EXTENSION OF INTEREST PAYMENT PERIOD

SECTION 4.1. Extension of Interest Payment Period.

      The Company shall have the right, at any time and from time to time during
the term of the Debentures, to defer payments of interest by extending the
interest payment period of such Debentures for a period not exceeding 20
consecutive quarters (the "Extended Interest Payment Period"), during which
Extended Interest Payment Period no interest shall be due and payable; provided
that no Extended Interest Payment Period may extend beyond the Maturity Date. To
the extent permitted by applicable law, interest, the payment of which has been
deferred because of the extension of the interest payment period pursuant to
this Section 4.1, will bear interest thereon at the Coupon Rate compounded
quarterly for each quarter of the Extended Interest Payment Period ("Compounded
Interest"). At the end of the Extended Interest Payment Period, the Company
shall pay all interest accrued and unpaid on the Debentures, including any
Additional Interest and Compounded Interest (together, "Deferred Interest") that
shall be payable to the Holders of the Debentures in whose names the Debentures
are registered in

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the Security Register on the first record date after the end of the Extended
Interest Payment Period. Before the termination of any Extended Interest Payment
Period, the Company may further extend such period, provided that such period
together with all such further extensions thereof shall not exceed 20
consecutive quarters, or extend beyond the maturity date of the Debentures. Upon
the termination of any Extended Interest Payment Period and upon the payment of
all Deferred Interest then due, the Company may commence a new Extended Interest
Payment Period, subject to the foregoing requirements. No interest shall be due
and payable during an Extended Interest Payment Period, except at the end
thereof, but the Company may prepay at any time all or any portion of the
interest accrued during an Extended Interest Payment Period.

SECTION 4.2. Notice of Extension.

      (a) If the Institutional Trustee is the only registered Holder of the
Debentures at the time the Company selects an Extended Interest Payment Period,
the Company shall give written notice to the Regular Trustees, the Institutional
Trustee and the Trustee of its selection of such Extended Interest Payment
Period one Business Day before the earlier of (i) the next succeeding date on
which Distributions on the Trust Securities issued by the Trust are payable, or
(ii) the date the Regular Trustee is required to give notice of the record date,
or the date such Distributions are payable, to the New York Stock Exchange or
other applicable self-regulatory organization or to holders of the Preferred
Securities issued by the Trust, but in any event at least one Business Day
before such record date.

      (b) If the Institutional Trustee is not the only Holder of the Debentures
at the time the Company selects an Extended Interest Payment Period, the Company
shall give the Holders of the Debentures and the Trustee written notice of its
selection of such Extended Interest Payment Period at least 10 Business Days
before the earlier of (i) the next succeeding Interest Payment Date, or (ii) the
date the Company is required to give notice of the record or payment date of
such interest payment to the New York Stock Exchange or other applicable
self-regulatory organization or to Holders of the Debentures.

      (c) The quarter in which any notice is given pursuant to paragraphs (a) or
(b) of this Section 4.2 shall be counted as one of the 20 quarters permitted in
the maximum Extended Interest Payment Period permitted under Section 4.1.

SECTION 4.3. Limitation of Transactions.

      If (i) the Company shall exercise its right to defer payment of interest
as provided in Section 4.1, or (ii) there shall have occurred any Event of
Default, as defined in the Indenture, then (a) the Company shall not declare or
pay any dividend on, make any distributions with respect to, or redeem,
purchase, acquire or make a liquidation payment with respect to, any of its
capital stock or make any guarantee payment with respect thereto (other than (i)
repurchases, redemptions or other acquisitions of shares of capital stock of the
Company in connection with any employment contract, benefit plan or other

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similar arrangement with or for the benefit of employees, officers, directors or
consultants, (ii) as a result of an exchange or conversion of any class or
series of the Company's capital stock for any other class or series of the
Company's capital stock, (iii) the purchase of fractional interests in shares of
the Company's capital stock pursuant to the conversion or exchange provisions of
such capital stock or the security being converted or exchanged or (iv)
distributions of rights under any shareholder rights plan adopted by the
Company), (b) the Company shall not make any payment of interest on or principal
of (or premium, if any, on) or repay, repurchase or redeem any debt securities
issued by the Company or its subsidiaries which rank pari passu with or junior
to the Debentures. The foregoing, however, will not apply to any stock dividends
paid by the Company where the dividend stock is the same stock as that on which
the dividend is being paid.

                                   ARTICLE V
                                    EXPENSES

SECTION 5.1. Payment of Expenses.

      In connection with the offering, sale and issuance of the Debentures to
the Institutional Trustee and in connection with the sale of the Trust
Securities by the Trust, the Company, in its capacity as borrower with respect
to the Debentures, shall:

      (a) pay all costs and expenses relating to the offering, sale and issuance
of the Debentures, including commissions to the underwriters payable pursuant to
the Underwriting Agreement and compensation and expenses of the Trustee under
the Indenture in accordance with the provisions of Section 6.07 of the
Indenture;

      (b) pay all costs and expenses of the Trust (including, but not limited
to, costs and expenses relating to the organization of the Trust, the offering,
sale and issuance of the Trust Securities (including commissions to the
underwriters in connection therewith), the fees and expenses of the
Institutional Trustee and the Delaware Trustee, the costs and expenses relating
to the operation of the Trust, including without limitation, costs and expenses
of accountants, attorneys, statistical or bookkeeping services, expenses for
printing and engraving and computing or accounting equipment, paying agent(s),
registrar(s), transfer agent(s), duplicating, travel and telephone and other
telecommunications expenses and costs and expenses incurred in connection with
the acquisition, financing, and disposition of Trust assets);

      (c) be primarily liable for any indemnification obligations arising with
respect to the Declaration; and

      (d) pay any and all taxes (other than United States withholding taxes
attributable to the Trust or its assets) and all liabilities, costs and expenses
with respect to such taxes of the Trust.

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SECTION 5.2. Payment Upon Resignation or Removal.

      Upon termination of this Second Supplemental Indenture or the Indenture or
the removal or resignation of the Trustee pursuant to this Section 5.2, the
Company shall pay to the Trustee all amounts accrued to the date of such
termination, removal or resignation. Upon termination of the Declaration or the
removal or resignation of the Delaware Trustee or the Institutional Trustee, as
the case may be, pursuant to Section 5.6 of the Declaration, the Company shall
pay to the Delaware Trustee or the Institutional Trustee, as the case may be,
all amounts accrued to the date of such termination, removal or resignation.

                                   ARTICLE VI
                                     NOTICE

SECTION 6.1. Notice by the Company.

      The Company shall give prompt written notice to a Responsible Officer of
the Trustee of any fact known to the Company that would prohibit the making of
any payment of monies to or by the Trustee in respect of the Debentures pursuant
to the provisions of this Article VI. Notwithstanding the provisions of Article
XIV of the Indenture or any other provision of the Indenture and this Second
Supplemental Indenture, the Trustee shall not be charged with knowledge of the
existence of any facts that would prohibit the making of any payment of monies
to or by the Trustee in respect of the Debentures pursuant to the provisions of
Article XIV of the Indenture, unless and until a Responsible Officer of the
Trustee shall have received written notice thereof from the Company or a holder
or holders of Senior Indebtedness or from any trustee therefor; and before the
receipt of any such written notice, the Trustee, subject to the provisions of
Section 6.01 of the Indenture, shall be entitled in all respects to assume that
no such facts exist; provided, however, that if the Trustee shall not have
received the notice provided for in this Article VI at least two Business Days
prior to the date upon which by the terms hereof any money may become payable
for any purpose (including, without limitation, the payment of the principal of
(or premium, if any) or interest on any Debenture), then, anything herein
contained to the contrary notwithstanding, the Trustee shall have full power and
authority to receive such money and to apply the same to the purposes for which
they were received, and shall not be affected by any notice to the contrary that
may be received by it within two Business Days prior to such date.

      The Trustee, subject to the provisions of Section 6.01 of the Indenture,
shall be entitled to conclusively rely on the delivery to it of a written notice
by a Person representing himself to be a holder of Senior Indebtedness of the
Company, as the case may be (or a trustee on behalf of such holder), to
establish that such notice has been given by a holder of such Senior
Indebtedness or a trustee on behalf of any such holder or holders. In the event
that the Trustee determines in good faith that further evidence is required with
respect to the right of any Person as a holder of such Senior Indebtedness to
participate in any payment or distribution pursuant to this Article VI, the
Trustee may

                                      -11-
<PAGE>   15

request such Person to furnish evidence to the reasonable satisfaction of the
Trustee as to the amount of such Senior Indebtedness held by such Person, the
extent to which such Person is entitled to participate in such payment or
distribution and any other facts pertinent to the rights of such Person under
this Article VI, and, if such evidence is not furnished, the Trustee may defer
any payment to such Person pending judicial determination as to the right of
such Person to receive such payment.

                                  ARTICLE VII.
                          COVENANT TO LIST ON EXCHANGE

SECTION 7.1. Listing on an Exchange.

      If the Debentures are to be issued as a Global Debenture in connection
with the distribution of the Debentures to the holders of the Preferred
Securities issued by the Trust upon a Dissolution Event, the Company will use
its best efforts to list such Debentures on the New York Stock Exchange, Inc. or
on such other exchange as the Preferred Securities are then listed.

                                  ARTICLE VIII
                                FORM OF DEBENTURE

SECTION 8.1. Form of Debenture.

      The Debentures and the Trustee's Certificate of Authentication to be
endorsed thereon are to be substantially in the forms set forth in Exhibit A.

                                   ARTICLE IX
                          ORIGINAL ISSUE OF DEBENTURES

SECTION 9.1. Original Issue of Debentures.

      Debentures in the aggregate principal amount of $206,186,000 may, upon
execution of this Second Supplemental Indenture, be executed by the Company and
delivered to the Trustee for authentication, and the Trustee shall thereupon
authenticate and deliver said Debentures to or upon the written order of the
Company, signed by its Chairman, its Vice Chairman, its President, or any Vice
President and its Treasurer or an Assistant Treasurer, without any further
action by the Company.

                                    ARTICLE X
                                    COVENANTS

SECTION 10.1 Covenants as to Trust.

      In the event Debentures are issued and sold to the Institutional Trustee
in connection with the issuance of Trust Securities by the Trust, for so long as
the Trust Securities remain outstanding, the Company will (i) maintain 100%
direct or indirect

                                      -12-
<PAGE>   16

ownership of the Common Securities of the Trust; provided,
however, that any permitted successor of the Company under the Indenture may
succeed to the Company's ownership of the Common Securities, (ii) not
voluntarily dissolve, wind-up or terminate the Trust, except in connection with
the distribution of Debentures upon a Dissolution Event or otherwise, and in
connection with certain mergers, consolidations or amalgamations permitted by
the Declaration, (iii) timely perform its duties as sponsor of the Trust, (iv)
use its reasonable efforts to cause the Trust (a) to remain a business trust,
except in connection with the distribution of Debentures as provided in the
Declaration, the redemption of the Trust Securities or in connection with
certain mergers, consolidations or amalgamations as permitted by the
Declaration, and (b) to remain a grantor trust and otherwise continue not to be
treated as an association taxable as a corporation or partnership for United
States federal income tax purposes, and (v) use its reasonable efforts to cause
each holder of Trust Securities to be treated as owning an individual beneficial
interest in the Debentures. This covenant is intended solely for the benefit of
the Holders of the Debentures issued pursuant to this Second Supplemental
Indenture and shall not be applicable to the Securities of any other series
issued pursuant to the Indenture.

                                   ARTICLE XI
                                  MISCELLANEOUS

SECTION 11.1 Ratification of Indenture.

      The Indenture, as supplemented by this Second Supplemental Indenture, is
in all respects ratified and confirmed, and this Second Supplemental Indenture
shall be deemed part of the Indenture in the manner and to the extent herein and
therein provided.

SECTION 11.2 Trustee Not Responsible for Recitals.

      The recitals herein contained are made by the Company and not by the
Trustee, and the Trustee assumes no responsibility for the correctness thereof.
The Trustee makes no representation as to the validity or sufficiency of this
Second Supplemental Indenture.

SECTION 11.3 Governing Law.

      This Second Supplemental Indenture and each Debenture shall be deemed to
be a contract made under the internal laws of the State of New York, and for all
purposes shall be construed in accordance with the internal laws of said State.

SECTION 11.4 Separability.

      In case any one or more of the provisions contained in this Second
Supplemental Indenture or in the Debentures shall for any reason be held to be
invalid, illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provisions of this Second
Supplemental Indenture or of the Debentures,

                                      -13-
<PAGE>   17

but this Second Supplemental Indenture and the Debentures shall be construed as
if such invalid or illegal or unenforceable provision had never been contained
herein or therein.

SECTION 11.5 Counterparts.

      This Second Supplemental Indenture may be executed in any number of
counterparts each of which shall be an original; but such counterparts shall
together constitute but one and the same instrument.

                                      -14-
<PAGE>   18

      IN WITNESS WHEREOF, the parties hereto have caused this Second
Supplemental Indenture to be duly executed, and their respective corporate seals
to be hereunto affixed and attested, on the date or dates indicated in the
acknowledgments and as of the day and year first above written.

                                        HARTFORD LIFE, INC.

                                        By: /s/ David Foy
                                           -------------------------------------
                                           Name:  David Foy
                                           Title: Senior Vice President
                                                  and Chief Financial Officer

Attest:

By: /s/ C. Michael O'Halloran
   --------------------------------
   Secretary

                                        WILMINGTON TRUST COMPANY
                                        as Trustee

                                        By: /s/  W. Chris Sponenberg
                                           -------------------------------------
                                           Name:  W. Chris Sponenberg
                                           Title: Trust Officer

Attest:

By: /s/  Donald G. MacKelcan
   --------------------------------

                                      -15-
<PAGE>   19

                                                                       EXHIBIT A

                           (FORM OF FACE OF DEBENTURE)

      [IF THE DEBENTURE IS TO BE A GLOBAL DEBENTURE, INSERT - This Debenture is
a Global Debenture within the meaning of the Indenture hereinafter referred to
and is registered in the name of a Depositary or a nominee of a Depositary. This
Debenture is exchangeable for Debentures registered in the name of a person
other than the Depositary or its nominee only in the limited circumstances
described in the Indenture, and no transfer of this Debenture (other than a
transfer of this Debenture as a whole by the Depositary to a nominee of the
Depositary or by a nominee of the Depositary to the Depositary or another
nominee of the Depositary) may be registered except in limited circumstances.

      Unless this Debenture is presented by an authorized representative of The
Depository Trust Company (55 Water Street, New York, New York) to the issuer or
its agent for registration of transfer, exchange or payment, and any Debenture
issued is registered in the name of Cede & Co. or such other name as requested
by an authorized representative of The Depository Trust Company and any payment
hereon is made to Cede & Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE
OR OTHERWISE BY A PERSON IS WRONGFUL since the registered owner hereof, Cede &
Co., has an interest herein.]

No.___________________                                      $___________________

                               HARTFORD LIFE, INC.

            7.625% JUNIOR SUBORDINATED DEFERRABLE INTEREST DEBENTURE,
                               SERIES A, DUE 2050

      HARTFORD LIFE, INC., a Delaware corporation (the "Company", which term
includes any successor corporation under the Indenture hereinafter referred to),
for value received, hereby promises to pay to, Wilmington Trust Company, or
registered assigns, the principal sum of o Dollars ($o) on February 15, 2050,
and to pay interest on said principal sum from o, o, or from the most recent
interest payment date (each such date, an "Interest Payment Date") to which
interest has been paid or duly provided for, quarterly (subject to deferral as
set forth herein) in arrears on January 15, April 15, July 15 and October 15 of
each year commencing, April 15, 2001 at the rate of 7.625% per annum until the
principal hereof shall have become due and payable, and on any overdue principal
and premium, if any, and (without duplication and to the extent that payment of
such interest is enforceable under applicable law) on any overdue installment of
interest at the same rate per annum compounded quarterly. The amount of interest
payable on any Interest Payment Date shall be computed on the basis of a 360-day
year of twelve 30-day months. In the event that any date on which interest is
payable on this

                                      A-1
<PAGE>   20

Debenture is not a Business Day, then payment of interest payable on such date
will be made on the next succeeding day that is a Business Day (and without any
interest or other payment in respect of any such delay), except that, if such
Business Day is in the next succeeding calendar year, such payment shall be made
on the immediately preceding Business Day, in each case with the same force and
effect as if made on the relevant Interest Payment Date. The interest
installment so payable, and punctually paid or duly provided for, on any
Interest Payment Date will, as provided in the Indenture, be paid to the person
in whose name this Debenture (or one or more Predecessor Securities, as defined
in said Indenture) is registered at the close of business on the regular record
date for such interest installment, which shall be the close of business on the
Business Day next preceding such Interest Payment Date. [IF PURSUANT TO THE
PROVISIONS OF THE INDENTURE THE DEBENTURES ARE NO LONGER REPRESENTED BY A GLOBAL
DEBENTURE -- which shall be the close of business on the o Business Day next
preceding such Interest Payment Date.] Any such interest installment not
punctually paid or duly provided for shall forthwith cease to be payable to the
registered Holders on such regular record date and may be paid to the Person in
whose name this Debenture (or one or more Predecessor Securities) is registered
at the close of business on a special record date to be fixed by the Trustee for
the payment of such defaulted interest, notice whereof shall be given to the
registered Holders of this series of Debentures not less than 10 days prior to
such special record date, or may be paid at any time in any other lawful manner
not inconsistent with the requirements of any securities exchange on which the
Debentures may be listed, and upon such notice as may be required by such
exchange, all as more fully provided in the Indenture. The principal of (and
premium, if any) and the interest on this Debenture shall be payable at the
office or agency of the Trustee maintained for that purpose in any coin or
currency of the United States of America that at the time of payment is legal
tender for payment of public and private debts; provided, however, that payment
of interest may be made at the option of the Company by check mailed to the
registered Holder at such address as shall appear in the Security Register.
Notwithstanding the foregoing, so long as the Holder of this Debenture is the
Institutional Trustee, the payment of the principal of (and premium, if any) and
interest on this Debenture will be made at such place and to such account as may
be designated by the Institutional Trustee.

      The indebtedness evidenced by this Debenture is, to the extent provided in
the Indenture, subordinate and junior in right of payment to the prior payment
in full of all Senior Indebtedness, and this Debenture is issued subject to the
provisions of the Indenture with respect thereto. Each Holder of this Debenture,
by accepting the same, (a) agrees to and shall be bound by such provisions, (b)
authorizes and directs the Trustee on his or her behalf to take such action as
may be necessary or appropriate to acknowledge or effectuate the subordination
so provided and (c) appoints the Trustee his or her attorney-in-fact for any and
all such purposes. Each Holder hereof, by his or her acceptance hereof, hereby
waives all notice of the acceptance of the subordination provisions contained
herein and in the Indenture by each holder of Senior Indebtedness, whether now
outstanding or hereafter incurred, and waives reliance by each such holder upon
said provisions.

                                      A-2
<PAGE>   21

      This Debenture shall not be entitled to any benefit under the Indenture
hereinafter referred to, be valid or become obligatory for any purpose until the
Certificate of Authentication hereon shall have been signed by or on behalf of
the Trustee.

      The provisions of this Debenture are continued on the reverse side hereof
and such continued provisions shall for all purposes have the same effect as
though fully set forth at this place.

      IN WITNESS WHEREOF, the Company has caused this instrument to be executed.

Dated______________________________

                                        HARTFORD LIFE, INC.

                                        By:_____________________________________
                                           Name:
                                           Title:

Attest:

By:________________________________
   Secretary

                                      A-3
<PAGE>   22

                     (FORM OF CERTIFICATE OF AUTHENTICATION)

                          CERTIFICATE OF AUTHENTICATION

      This is one of the Debentures of the series of Debentures described in the
within-mentioned Indenture.

Dated______________________________
     WILMINGTON TRUST COMPANY
     as Trustee

By_________________________________
      Authorized Signatory

                                      A-4
<PAGE>   23

                         (FORM OF REVERSE OF DEBENTURE)

      This Debenture is one of a duly authorized series of Securities of the
Company (herein sometimes referred to as the "Securities"), specified in the
Indenture, all issued or to be issued in one or more series under and pursuant
to an Indenture dated as of June 1, 1998 ("the Base Indenture"), duly executed
and delivered between the Company and Wilmington Trust Company, as Trustee (the
"Trustee"), as supplemented by a Second Supplemental Indenture dated as of March
6, 2001, between the Company and the Trustee (the Base Indenture as so
supplemented, the "Indenture"), to which Indenture and all indentures
supplemental thereto reference is hereby made for a description of the rights,
limitations of rights, obligations, duties and immunities thereunder of the
Trustee, the Company and the Holders of the Securities. By the terms of the
Indenture, the Securities are issuable in series that may vary as to amount,
date of maturity, rate of interest and in other respects as provided in the
Indenture. This series of Securities is limited in aggregate principal amount as
specified in said Second Supplemental Indenture.

      The Company shall have the right to redeem this Debenture at its option,
without premium or penalty, in whole or in part at any time and from time to
time on or after March 6, 2006 (an "Optional Redemption"), at a redemption price
equal to 100% of the principal amount plus any accrued but unpaid interest,
including any Compounded Interest, if any, to the date of such redemption (the
"Optional Redemption Price"); provided that, prior to March 6, 2006, the Company
shall also have the right to redeem the Debentures at any time, in whole or in
part, at a redemption price equal to the accrued and unpaid interest on the
Debentures so redeemed to the date fixed for redemption, plus the greater of (a)
the principal amount thereof or (b) an amount equal to the Discounted Remaining
Payments to Initial Optional Prepayment Date (as defined herein). Any redemption
pursuant to this paragraph will be made upon not less than 30 nor more than 60
days' notice, at the Optional Redemption Price.

      "Discounted Remaining Payments to Initial Optional Prepayment Date" means
an amount equal to the sum of the Current Values of the amounts of interest and
principal that would have been payable by the Company pursuant to the terms of
the Debentures on each Interest Payment Date after the redemption date through
and including March 6, 2006, assuming optional redemption of the Debentures on
March 6, 2006.

      "Current Value" means, (i) in respect of any payment of interest, the
present value of that amount on the redemption date after discounting that
amount on a quarterly basis from the originally scheduled date for payment, and
(ii) in respect of any payment of principal, the present value of that amount on
the redemption date after discounting that amount on a quarterly basis from
March 6, 2006. In each case, the discount rate shall be the Treasury Rate plus
10 basis points.

      "Treasury Rate" means a per annum rate (expressed as a decimal and, in the
case of United States Treasury bills, converted to a per annum yield) determined
on the

                                      A-5
<PAGE>   24

redemption date to be the per annum rate equal to the semiannual bond equivalent
yield to maturity (adjusted to reflect quarterly compounding in the case of the
Debentures) for United States Treasury securities maturing at March 6, 2006, as
determined by reference to the weekly average yield to maturity for United
States Treasury securities maturing on March 6, 2006, if reported in the most
recent Statistical Release H.15(519) of the Board of Governors of the Federal
Reserve, or, if no such securities mature at March 6, 2006, by interpolation
between the most recent weekly average yields to maturity for two series of
United States Treasury securities, (i) one maturing as close as possible to, but
earlier than, March 6, 2006 and (ii) the other maturing as close as possible to,
but later than, March 6, 2006, in each case as published in the most recent
Statistical Release H.15(519) of the Board of Governors of the Federal Reserve.

      If, at any time, a Special Event (as defined below) shall occur or be
continuing, the Company shall have the right at any time, upon not less than 30
nor more than 60 days' notice, to redeem the Debentures in whole or in part for
cash at the Optional Redemption Price within 90 days following the occurrence of
such Special Event.

      "Special Event" means a Tax Event or an Investment Company Event.

      "Tax Event" means that the Regular Trustees shall have received an opinion
of a nationally recognized independent tax counsel experienced in such matters
to the effect that, as a result of (a) any amendment to, or change (including
any announced prospective change) in the laws (or any regulations thereunder) of
the United States or any political subdivision or taxing authority thereof or
therein or (b) any interpretation or application of, or pronouncement with
respect to, such laws or regulations by any legislative body, court,
governmental agency or regulatory authority (including the enactment of any
legislation and the publication of any judicial decision or regulatory
determination), which amendment or change is effective or which interpretation,
application or pronouncement is announced on or after February 27, 2001, there
is more than an insubstantial risk that (i) the Trust would be subject to United
States federal income tax with respect to income accrued or received on the
Debentures, (ii) interest payable to the Trust on the Debentures would not be
deductible in whole or in part by the Company for United States federal income
tax purposes or (iii) the Trust would be subject to more than a de minimis
amount of other taxes, duties or other governmental charges.

      "Investment Company Event" means that the Regular Trustees shall have
received an opinion of nationally recognized independent counsel experienced in
practice under the Investment Company Act of 1940, as amended (the "1940 Act"),
to the effect that, as a result of the occurrence of a change in law or
regulation or a written change in interpretation or application of law or
regulation by any legislative body, court, governmental agency or regulatory
authority, there is more than an insubstantial risk that the Trust is or will be
considered an investment company which is required to be registered under the
1940 Act, which change becomes effective on or after February 27, 2001.

                                      A-6
<PAGE>   25

      Any redemption pursuant to the occurrence of a Special Event will be made
upon not less than 30 days' nor more than 60 days' notice, at the Optional
Redemption Price. If the Debentures are only partially redeemed by the Company
pursuant to an Optional Redemption, the Debentures will be redeemed pro rata or
by lot or by any other method utilized by the Trustee; provided that if, at the
time of redemption, the Debentures are registered as a Global Debenture, the
Depositary shall determine the principal amount of such Debentures held by each
Debenture holder to be redeemed in accordance with its procedures.

      In the event of redemption of this Debenture in part only, a new Debenture
or Debentures of this series for the unredeemed portion hereof will be issued in
the name of the Holder hereof upon the cancellation hereof.

      In case an Event of Default, as defined in the Indenture, shall have
occurred and be continuing, the principal of all of the Debentures may be
declared, and upon such declaration shall become, due and payable, in the
manner, with the effect and subject to the conditions provided in the Indenture.

      The Indenture contains provisions permitting the Company and the Trustee,
with the consent of the Holders of not less than a majority in aggregate
principal amount of the Debentures of each series affected at the time
outstanding, as defined in the Indenture, to execute supplemental indentures for
the purpose of adding any provisions to or changing in any manner or eliminating
any of the provisions of the Indenture or of any supplemental indenture or of
modifying in any manner the rights of the Holders of the Debentures; provided,
however, that no such supplemental indenture shall (i) reduce the principal
amount thereof, or reduce the rate or extend the time of payment of interest
thereon, or reduce any premium payable upon the redemption thereof, without the
consent of the Holder of each Debenture so affected, or (ii) reduce the
aforesaid percentage of Debentures, the Holders of which are required to consent
to any such supplemental indenture, without the consent of the Holders of each
Debenture then outstanding and affected thereby. The Indenture also contains
provisions permitting the Holders of a majority in aggregate principal amount of
the Securities of any series at the time outstanding affected thereby, on behalf
of all of the Holders of the Debentures of such series, to waive a Default or
Event of Default with respect to such series, and its consequences, except a
Default or Event of Default in the payment of the principal of or premium, if
any, or interest on any of the Securities of such series. Any such consent or
waiver by the registered Holder of this Debenture (unless revoked as provided in
the Indenture) shall be conclusive and binding upon such Holder and upon all
future Holders and owners of this Debenture and of any Debenture issued in
exchange herefor or in place hereof (whether by registration of transfer or
otherwise), irrespective of whether or not any notation of such consent or
waiver is made upon this Debenture.

      No reference herein to the Indenture and no provision of this Debenture or
of the Indenture shall alter or impair the obligation of the Company, which is
absolute and

                                      A-7
<PAGE>   26

unconditional, to pay the principal of and premium, if any, and interest on this
Debenture at the time and place and at the rate and in the money herein
prescribed.

      The Company shall have the right at any time during the term of the
Debentures from time to time to extend the interest payment period of such
Debentures for up to 20 consecutive quarters (an "Extended Interest Payment
Period"), at the end of which period the Company shall pay all interest then
accrued and unpaid (together with the interest thereon at the rate specified for
the Debentures to the extent that payment of such interest is enforceable under
applicable law). In the event that the Company exercises this right, then (a)
the Company shall not declare or pay dividends on, make distributions with
respect to, or redeem, purchase or acquire, or make a liquidation payment with
respect to, any of its capital stock or make any guarantee payments with respect
to the foregoing (other than (i) repurchases, redemptions or other acquisitions
of shares of capital stock of the Company in connection with any employment
contract, benefit plan or other similar arrangement with or for the benefit of
employees, officers, directors or consultants, (ii) as a result of an exchange
or conversion of any class or series of the Company's capital stock for any
other class or series of the Company's capital stock, (iii) the purchase of
fractional interests in shares of the Company's capital stock pursuant to the
conversion or exchange provisions of such capital stock or the security being
converted or exchanged or (iv) distributions of rights under any shareholders'
rights plan adopted by the Company), and (b) the Company shall not make any
payment of interest on principal of (or premium, if any, on) or repay,
repurchase or redeem any debt securities (including guarantees) issued by the
Company or its subsidiaries that rank pari passu with or junior to such
Debentures. The foregoing, however, will not apply to any stock dividends paid
by the Company where the dividend stock is the same stock as that on which the
dividend is being paid. Prior to the termination of any such Extended Interest
Payment Period, the Company may further extend the interest payment period;
provided, that such Extended Interest Payment Period, together with all such
previous and further extensions thereof, may not exceed 20 consecutive quarters
or extend beyond the maturity date of the Debenture. At the termination of any
such Extended Interest Payment Period and upon the payment of all accrued and
unpaid interest and any additional amount then due, the Company may commence a
new Extended Interest Payment Period, subject to the above requirements.

      As provided in the Indenture and subject to certain limitations therein
set forth, this Debenture is transferable by the registered Holder hereof on the
Security Register of the Company, upon surrender of this Debenture for
registration of transfer at the Corporate Trust Office of the Trustee in the
City of Wilmington and State of Delaware accompanied by a written instrument or
instruments of transfer in form satisfactory to the Company or the Trustee duly
executed by the registered Holder hereof or his attorney duly authorized in
writing, and thereupon one or more new Debentures of authorized denominations
and for the same aggregate principal amount and series will be issued to the
designated transferee or transferees. No service charge will be made for any
such transfer, but the Company may require payment of a sum sufficient to cover
any tax or other governmental charge payable in relation thereto.

                                      A-8
<PAGE>   27

      Prior to due presentment for registration of transfer of this Debenture,
the Company, the Trustee, any paying agent and the Security Registrar may deem
and treat the registered holder hereof as the absolute owner hereof (whether or
not this Debenture shall be overdue and notwithstanding any notice of ownership
or writing hereon made by anyone other than the Security Registrar) for the
purpose of receiving payment of or on account of the principal hereof and
premium, if any, and interest due hereon and for all other purposes, and neither
the Company nor the Trustee nor any paying agent nor any Security Registrar
shall be affected by any notice to the contrary.

      No recourse shall be had for the payment of the principal of or the
interest on this Debenture, or for any claim based hereon, or otherwise in
respect hereof, or based on or in respect of the Indenture, against any
incorporator, stockholder, officer or director, past, present or future, as
such, of the Company or of any predecessor or successor corporation, whether by
virtue of any constitution, statute or rule of law, or by the enforcement of any
assessment or penalty or otherwise, all such liability being, by the acceptance
hereof and as part of the consideration for the issuance hereof, expressly
waived and released.

      The Debentures of this series are issuable only in registered form without
coupons in denominations of $25 and any integral multiple thereof. This Global
Debenture is exchangeable for Debentures in definitive form only under certain
limited circumstances set forth in the Indenture. Debentures of this series so
issued are issuable only in registered form without coupons in denominations of
$25 and any integral multiple thereof. As provided in the Indenture and subject
to certain limitations therein set forth, Debentures of this series so issued
are exchangeable for a like aggregate principal amount of Debentures of this
series of a different authorized denomination, as requested by the Holder
surrendering the same.

      All terms used in this Debenture that are defined in the Indenture shall
have the meanings assigned to them in the Indenture.

                                      A-9<PAGE>   1
                                                                    EXHIBIT 10.8

                       SHEFFIELD MEDICAL TECHNOLOGIES INC.

                             1993 STOCK OPTION PLAN
                       (as amended through July 15, 1998)

1.       Purposes of the Plan. The purposes of this 1993 Stock Option Plan are
         to attract and retain the best available personnel for positions of
         responsibility within the Company, to provide additional incentive to
         Employees of the Company, and to promote the success of the Company's
         business through the grant of options to purchase shares of the
         Company's Common Stock. Options granted hereunder may be either
         Incentive Stock or Non-Statutory Stock Options, at the discretion of
         the Board. The type of options granted shall be reflected in the terms
         of written Stock Option agreements. The Company intends that the Plan
         meet the requirements of Rule 16b-3 and that transactions of the type
         specified in subparagraphs (c) to (f) inclusive of Rule 16b-3 by
         officers and directors of the Company pursuant to the Plan will be
         exempt from the operation of Section 16(b) of the Exchange Act.
         Further, the Plan is intended to satisfy the performance-based
         compensation exception to the limitation on the Company's tax
         deductions imposed by Section 162(m) of the Code. In all cases, the
         terms, provisions, conditions and limitations of the Plan shall be
         construed and interpreted consistent with the Company's intent as
         stated in this Section 1.

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

         (a)      "Board" shall mean the Board of Directors of the Company or,
                  when appropriate, the Committee administering the Plan, if one
                  has been appointed.

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

         (c)      "Common Stock" shall mean the common stock of the Company
                  described in the Company's Certificate of Incorporation, as
                  amended.

         (d)      "Company" shall mean SHEFFIELD MEDICAL TECHNOLOGIES INC., a
                  Delaware corporation, and shall include any parent or
                  subsidiary corporation of the Company as defined in Sections
                  425(e) and (f), respectively, of the Code.

         (e)      "Committee" shall mean the Stock Option Committee composed of
                  two or more directors who are Non-Employee Directors and
                  Outside Directors and who shall be elected by and shall serve
                  at the pleasure of the Board and shall be responsible for
                  administering the Plan in accordance with paragraph (a) of
                  Section 4 of the Plan.

         (f)      "Employee" shall mean key employees, including salaried
                  officers and directors and other key individuals employed by
                  the Company. The payment of a director's fee by the Company
                  shall not be sufficient to constitute "employment" by the
                  Company.

         (g)      "Exchange Act" shall mean the Securities and Exchange Act of
                  1934, as amended.

         (h)      "Fair Market Value" shall mean, with respect to the date a
                  given Option is granted or exercised, the value of the Common
                  Stock determined by the Board in such manner as it may deem
                  equitable for Plan purposes but, in the case of an Incentive
                  Stock Option, no less than is required by applicable laws or
                  regulations; provided, however, that where there is a public
                  market for the Common Stock, the Fair Market Value per Share
                  shall be the mean of the bid and asked prices of the Common
                  Stock on the date of grant, as reported in the Wall Street
                  Journal (or, if not so reported, as otherwise reported in the
                  National Association of Securities Dealers Automated Quotation
                  System) or, in the event the Common Stock is listed on the New
                  York Stock Exchange or the NASDAQ Stock Market, the American
                  Stock Exchange, the NASDAQ/National Market System, the Fair
                  Market Value per Share shall be the closing price on such
                  exchange on the date of grant of the Option, as reported in
                  the Wall Street Journal.

                                       1
<PAGE>   2

         (i)      "Incentive Stock Option" shall mean an Option which is
                  intended to qualify as an incentive stock option within the
                  meaning of Section 422 of the Code.

         (j)      "Non-Employee Director" shall mean a non-employee director as
                  defined in Rule 16b-3.

         (k)      "Non-statutory Stock Option" shall mean an Option which is not
                  an Incentive Stock Option.

         (l)      "Option" shall mean a stock option granted under the Plan.

         (m)      "Optioned Stock" shall mean the Common Stock subject to an
                  Option.

         (n)      "Optionee" shall mean an Employee of the Company who has been
                  granted one or more Options.

         (o)      "Outside Director" shall mean an outside director as defined
                  in Section 162(m) of the Code or the rules and regulations
                  promulgated thereunder.

         (p)      "Parent" shall mean a "parent corporation," whether now or
                  hereafter existing, as defined in Section 425(e) of the Code.

         (q)      "Plan" shall mean this 1993 Stock Option Plan.

         (r)      "Share" shall mean a share of the Common Stock, as adjusted in
                  accordance with Section 11 of the Plan.

         (s)      "Stock Option Agreement" shall mean the written agreement
                  between the Company and the Optionee relating to the grant of
                  an Option.

         (t)      "Subsidiary" shall mean a "subsidiary corporation," whether
                  now or hereafter existing, as defined in Section 425(f) of the
                  Code.

         (u)      "Tax Date" shall mean the date an Optionee is required to pay
                  the Company an amount with respect to tax withholding
                  obligations in connection with the exercise of an option.

3.       Common Stock Subject to the Plan. Subject to the provisions of Section
         11 of the Plan, the maximum aggregate number of shares which may be
         optioned and sold under the Plan is Four Million (4,000,000) Shares of
         Common Stock. The Shares may be authorized, but unissued, or previously
         issued Shares acquired by the Company and held in treasury.

         If an Option should expire or become unexercisable for any reason
         without having been exercised in full, the unpurchased Shares covered
         by such Option shall, unless the Plan shall have been terminated, be
         available for future grants of Options. The maximum number of Shares
         that may be subject to options granted under the Plan to any individual
         in any calendar year shall not exceed 500,000 Shares and the method of
         counting such Shares shall conform to any requirements applicable to
         performance-based compensation under Section 162(m) of the Code or the
         rules and regulations promulgated thereunder.

4.       Administration of the Plan.

         (a)      Procedure.

                  (i)      The Plan shall be administered by the Board in
                  accordance with Rule 16b-3 under the Exchange Act ("Rule
                  16b-3"); provided, however, that the Board may appoint a
                  Committee to administer the Plan at any time or from time to
                  time, and, provided further, that if the Board is not
                  "disinterested" within the meaning of Rule 16b-3, the Plan
                  shall be administered by a Committee in accordance with Rule
                  16b-3.

                  (ii)     Once appointed, the Committee shall continue to serve
                  until otherwise directed by the Board. From time to time the
                  Board may increase the size of the Committee and appoint
                  additional members thereof, remove members (with or without
                  cause), appoint new members in

                                       2
<PAGE>   3

                  substitution therefor, and fill vacancies however caused:
                  provided, however, that at no time may any person serve on the
                  Committee if that person's membership would cause the
                  Committee not to satisfy the "disinterested administration"
                  requirements of Rule 16b-3.

         (b)      Powers of the Board. Subject to the provisions of the Plan,
                  the Board shall have the authority, in its discretion: (i) to
                  grant Incentive Stock Options and Nonstatutory Stock Options;
                  (ii) to determine, upon review of relevant information and in
                  accordance with Section 2 of the Plan, the Fair Market Value
                  of the Common Stock; (iii) to determine the exercise price per
                  Share of Options to be granted, which exercise price shall be
                  determined in accordance with Section 8(a) of the Plan; (iv)
                  to determine the Employees to whom, and the time or times at
                  which, Options shall be granted and the number of Shares to be
                  represented by each Option; (v) to interpret the Plan; (vi) to
                  prescribe, amend and rescind rules and regulations relating to
                  the Plan; (vii) to determine the terms and provisions of each
                  Option granted including, without limitation, the terms of
                  exercise (including the period of exercisability) or
                  forfeiture of Options granted hereunder upon termination of
                  the employment of an Employee; (viii) to accelerate or defer
                  (with the consent of the Optionee) the exercise date of any
                  Option; (ix) to authorize any person to execute on behalf of
                  the Company any instrument required to effectuate the grant of
                  an Option previously granted by the Board; (x) to accept or
                  reject the election made by an Optionee pursuant to Section 17
                  of the Plan; and (xi) to make all other determinations deemed
                  necessary or advisable for the administration of the Plan.

         (c)      Effect of Board's Decision. All decisions, determinations and
                  interpretations of the Board shall be final and binding on all
                  Optionees and any other holders of any Options granted under
                  the Plan.

         (d)      Inability of Committee to Act. In the event that for any
                  reason the Committee is Unable to act or if the Committee at
                  the time of any grant, award or other acquisition under the
                  Plan of options or Shares does not consist of two or more
                  Non-Employee Directors, then any such grant, award or other
                  acquisition may be approved or ratified in any other manner
                  contemplated by subparagraph (d) of Rule 16b-3.

5.       Eligibility.

         (a)      Consistent with the Plan's purposes, Options may be granted
                  only to Employees of the Company as determined by the Board.
                  An Employee who has been granted an Option may, if he is
                  otherwise eligible, be granted an additional Option or
                  Options. Incentive Stock Options may be granted only to those
                  Employees who meet the requirements applicable under Section
                  422 of the Code.

         (b)      Unless otherwise provided in the applicable Stock Option
                  Agreement, all Options granted to Employees of the Company
                  under the Plan will be subject to forfeiture until such time
                  as the Optionee has been continuously employed by the Company
                  for one year after the date of the grant of the Options, and
                  may not be exercised prior to such time. At such time as the
                  Optionee has been continuously employed by the Company for one
                  year, the foregoing restriction shall lapse and the Optionee
                  may exercise the Options at any time otherwise consistent with
                  the Plan.

         (c)      With respect to Incentive Stock Options, the aggregate Fair
                  Market Value (determined at the time the Incentive Stock
                  Option is granted) of the Common Stock with respect to which
                  Incentive Stock Options are exercisable for the first time by
                  the employee during any calendar year (under all employee
                  benefit plans of the Company) shall not exceed One Hundred
                  Thousand Dollars ($100,000).

6.       Stockholder Approval and Effective Dates. The Plan became effective
         upon approval by the Board. No Option may be granted under the Plan
         after August 30, 2003 (ten years from the effective date of the Plan);
         provided, however that the Plan and all outstanding Options shall
         remain in effect until such Options have expired or until such Options
         are canceled.

7.       Term of Option. Unless otherwise provided in the Stock Option
         Agreement, the term of each Option shall be five (5) years from the
         date of grant thereof. In no case shall the term of any Option exceed
         ten (10)

                                       3
<PAGE>   4

         years from the date of grant thereof. Notwithstanding the above, in the
         case of an Incentive Stock Option granted to an Employee who, at the
         time the Incentive Stock Option is granted, owns ten percent (10%) or
         more of the Common Stock as such amount is calculated under Section
         422(b)(6) of the Code ("Ten Percent Stockholder"), the term of the
         Incentive Stock Option shall be five (5) years from the date of grant
         thereof or such shorter time as may be provided in the Stock Option
         Agreement. If an option granted to the Company's chief executive
         officer or to any of the Company's other four most highly compensated
         officers is intended to qualify as "performance-based" compensation
         under Section 162(m) of the Code, the exercise price of such option
         shall not be less than 100% of the Fair Market Value of a Share on the
         date such option is granted.

8.       Exercise Price and Payment.

         (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 Board, but in the case of an Incentive Stock
                  Option shall be no less than one hundred percent (100%) of the
                  Fair Market Value per share on the date of grant, and in the
                  case of a Nonstatutory Stock Option shall be no less than
                  eighty-five percent (85%) of the Fair Market Value per share
                  on the date of grant. Notwithstanding the foregoing, in the
                  case of an Incentive Stock Option granted to an Employee who,
                  at the time of the grant of such Incentive Stock Option, is a
                  Ten Percent Stockholder, the per Share exercise price shall be
                  no less than one hundred ten percent (110%) of the Fair Market
                  Value per Share on the date of grant.

         (b)      Payment. The price of an exercised Option and the Employee's
                  portion of any taxes attributable to the delivery of Common
                  Stock under the Plan, or portion thereof, shall be paid:

                  (i)      In United States dollars in cash or by check, bank
                  draft or money order payable to the order of the Company; or

                  (ii)     At the discretion of the Board, through the delivery
                  of shares of Common Stock with an aggregate Fair Market Value
                  equal to the option price and withholding taxes, if any; or

                  (iii)    At the election of the Optionee pursuant to Section
                  17 and with the consent of the Board pursuant to Section
                  4(b)(x), by the Company's retention of such number of shares
                  of Common Stock subject to the exercised Option which have an
                  aggregate Fair Market Value on the exercise date equal to the
                  Employee's portion of the Company's aggregate federal, state,
                  local and foreign tax withholding and FICA and FUTA
                  obligations with respect to income generated by the exercise
                  of the Option by Optionee;

                  (iv)     By a combination of (i), (ii) and (iii) above; or

                  (v)      In the manner provided in subsection (c) below.

                  The Board shall determine acceptable methods for tendering
                  Common Stock as payment upon exercise of an Option and may
                  impose such limitations and prohibitions on the use of Common
                  Stock to exercise an Option as it deems appropriate.

         (c)      Financial Assistance to Optionees. The Board may assist
                  Optionees in paying the exercise price of Options granted
                  under this Plan in the following manner:

                  (i)      The extension of a loan to the Optionee by the
                  Company; or

                  (ii)     Payment by the Optionee of the exercise price in
                  installments; or

                  (iii)    A guaranty by the Company of a loan obtained by the
                  Optionee from a third party.

         The terms of any loans, installment payments or guarantees, including
         the interest rate and terms of repayment, and collateral requirements,
         if any, shall be determined by the Board, in its sole discretion.
         Subject to applicable margin requirements, any loans, installment
         payments or guarantees authorized by the Board pursuant to the Plan may
         be granted without security, but the maximum credit available shall

                                       4
<PAGE>   5

         not exceed the exercise price for the Shares for which the Option is to
         be exercised, plus any federal and state income tax liability incurred
         in connection with the exercise of the Option.

9.       Exercise of Option.

         (a)      Procedure for Exercise; Rights as a Stockholder. Any Option
                  granted hereunder shall be exercisable at such times and under
                  such conditions as determined by the Board, including
                  performance criteria with respect to the Company and/or the
                  Optionee, and as shall be permissible under the terms of the
                  Plan. Unless otherwise determined by the Board at the time of
                  grant, an Option may be exercised in whole or in part. An
                  Option may not be exercised for a fraction of a Share.

                  An Option shall be deemed to be exercised when written notice
                  of such exercise has been given to the Company in accordance
                  with the terms of the Option by the person entitled to
                  exercise the Option and full payment for the Shares with
                  respect to which the Option is exercised has been received by
                  the company. Full payment may, as authorized by the Board,
                  consist of any consideration and method of payment allowable
                  under Section 8(b) of the Plan. Until the issuance (as
                  evidenced by the appropriate entry on the books of the Company
                  or of a duly authorized transfer agent of the Company) of the
                  stock certificate evidencing such Shares, no right to vote or
                  receive dividends or any other rights as a stockholder shall
                  exist with respect to the Optioned Stock, notwithstanding the
                  exercise of the Option. 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 11 of the Plan.

                  Exercise of an Option in any manner shall result in a decrease
                  in the number of Shares which thereafter may be available,
                  both for purposes of the Plan and for sale under the Option,
                  by the number of Shares to which the Option is exercised.

         (b)      Termination of Status as an Employee. Unless otherwise
                  provided in the applicable Stock Option Agreement, if an
                  Employee's employment by the Company is terminated for cause,
                  then any Option held by the Employee shall be immediately
                  canceled upon termination of employment and the Employee shall
                  have no further rights with respect to such Option. Unless
                  otherwise provided in the Stock Option Agreement, if an
                  Employee's employment by the Company is terminated for reasons
                  other than cause, and does not occur due to death or
                  disability, then the Employee may, with the consent of the
                  Board, for ninety (90) days after the date he ceases to be an
                  Employee of the Company, exercise his Option to the extent
                  that he was entitled to exercise it at the date of such
                  termination. To the extent that he was not entitled to
                  exercise the Option at the date of such termination, or if he
                  does not exercise such Option (which he was entitled to
                  exercise) within the time specified herein or in the
                  applicable Stock Option Agreement, the Option shall terminate.

         (c)      Disability. Unless otherwise provided in the applicable Stock
                  Option Agreement, notwithstanding the provisions of Section
                  9(b) above, in the event an Employee is unable to continue his
                  employment with the Company as a result of his permanent and
                  total disability (as defined in Section 22(e)(3) of the Code),
                  he may, but only within twelve (12) months from the date of
                  termination, exercise his Option to the extent he was entitled
                  to exercise it at the date of such termination. To the extent
                  that he was not entitled to exercise the Option at the date of
                  termination, or if he does not exercise such Option (which he
                  was entitled to exercise) within the time specified herein or
                  in the applicable Stock Option Agreement, the Option shall
                  terminate.

         (d)      Death. Unless otherwise provided in the Stock Option
                  Agreement, if an Employee dies during the term of the Option
                  and is at the time of his death an Employee of the Company who
                  shall have been in continuous status as an Employee since the
                  date of grant of the Option, the Option may be exercised at
                  any time within twelve (12) months following the date of death
                  (or such other period of time as is determined by the Board)
                  by the Employee's estate or by a person who acquired the right
                  to exercise the Option by bequest or inheritance, but only to
                  the extent that an Employee was entitled to exercise the
                  Option on the date of death. To the extent the Employee was
                  not entitled to exercise the Option on the date of death, or
                  if the Employee's estate, or person who acquired the right to
                  exercise the Option by bequest or inheritance, does not
                  exercise such

                                       5
<PAGE>   6

                  Option (which he was entitled to exercise) within the time
                  specified herein or in the applicable Stock Option Agreement,
                  the Option shall terminate.

10.      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, or pursuant to
         a "qualified domestic relations order" under the Code and ERISA, and
         may be exercised, during the lifetime of the Optionee, only by the
         Optionee.

11.      Adjustments Upon Changes in Capitalization or Merger. Subject to any
         required action by the stockholders 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.

         In the event of the proposed dissolution or liquidation of the Company,
         the Option will terminate immediately prior to the consummation of such
         proposed action, unless otherwise provided by the Board. 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 his Option as to all or any part of
         the Optioned Stock, including Shares as to which the Option would not
         otherwise be exercisable. In the event of a proposed sale of all or
         substantially all of the assets of the Company, or the merger of the
         Company with or into another corporation, the Option shall be assumed
         or an equivalent option shall be substituted by such successor
         corporation or a parent or subsidiary of such successor corporation,
         unless the Board determines, in the exercise of its sole discretion and
         in lieu of such assumption or substitution, that the Optionee shall
         have the right to exercise the option as to all of the Optioned Stock,
         including Shares as to which the Option would not otherwise be
         exercisable. If the Board makes an Option fully exercisable in lieu of
         assumption or substitution in the event of a merger of`sale of assets,
         the Board shall notify the Optionee that the Option shall be fully
         exercisable for a period of sixty (60) days from the date of such
         notice (but not later than the expiration of the term of the Option
         under the Option Agreement), and the Option will terminate upon the
         expiration of such period.

12.      Time of Granting Options. The date of grant of an Option shall, for all
         purposes, be the date on which the Board makes the determination
         granting such Option. Notice of the determination shall be given to
         each Employee to whom an Option is so granted within a reasonable time
         after the date of such grant.

13.      Amendment and Termination of the Plan.

         (a)      Amendment and Termination. The Board may amend or terminate
                  the Plan from time to time in such respects as the Board may
                  deem advisable; provided, however, that the following
                  revisions or amendments shall require approval of the
                  Stockholders of the Company, to the extent required by law,
                  rule or regulation:

                  (i)      Any material increase in the number of Shares subject
                           to the Plan, other than in connection with an
                           adjustment under Section 11 of the Plan;

                  (ii)     Any material change in the designation of the
                           Employees eligible to be granted Options; or

                  (iii)    Any material increase in the benefits accruing to
                           participants under the Plan.

                                       6
<PAGE>   7

         (b)      Effect of Amendment or Termination. Any such amendment or
                  termination of the Plan shall not affect Options already
                  granted and such Options shall remain in full force and effect
                  as if this Plan had not been amended or terminated, unless
                  mutually agreed otherwise between the Optionee and the Board,
                  which agreement must be in writing and signed by the Optionee
                  and the Company.

14.      Conditions Upon Issuance of Shares. 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 pursuant thereto 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, and the requirements of any stock
         exchange upon which the Shares may then be listed, and shall be further
         subject to the approval of counsel for the Company with respect to such
         compliance.

         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 by any of the aforementioned relevant
         provisions of law.

         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.

         In the case of an Incentive Stock Option, any Optionee who disposes of
         Shares of Common Stock acquired upon the exercise of an Option by sale
         or exchange (a) either within two (2) years after the date of the grant
         of the Option under which the Common Stock was acquired or (b) within
         one (1) year after the acquisition of such Shares of Common Stock shall
         notify the Company of such disposition and of the amount realized upon
         such disposition.

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

16.      Option Agreement. Options shall be evidenced by Stock Option Agreements
         in such form as the Board shall approve.

17.      Withholding Taxes. Subject to Section 4(b)(x) of the Plan and prior to
         the Tax Date, the Optionee may make an irrevocable election to have the
         Company withhold from those Shares that would otherwise be received
         upon the exercise of any Option, a number of Shares having a Fair
         Market Value equal to the minimum amount necessary to satisfy the
         Company's federal, state, local and foreign tax withholding obligations
         and FICA and FUTA obligations with respect to the exercise of such
         Option by the Optionee.

         An Optionee who is also an officer of the Company must make the above
         described election:

         (a)      at least six months after the date of grant of the Option
                  (except in the event of death or disability); and

         (b)      either:

                  (i)      six months prior to the Tax Date, or

                  (ii)     prior to the Tax Date and during the period beginning
                  on the third business day following the date the Company
                  releases its quarterly or annual statement of sales and
                  earnings and ending on the twelfth business day following such
                  date.

18.      Miscellaneous Provisions.

         (a)      Plan Expense. Any expense of administering this Plan shall be
                  borne by the Company.

                                       7
<PAGE>   8

         (b)      Use of Exercise Proceeds. The payment received from Optionees
                  from the exercise of Options shall be used for the general
                  corporate purposes of the Company.

         (c)      Construction of Plan. The place of administration of the Plan
                  shall be in the State of Wyoming, and the validity,
                  construction, interpretation, administration and effect of the
                  Plan and of its rules and regulations, and rights relating to
                  the Plan, shall be determined in accordance with the laws of
                  the State of Wyoming without regard to conflict of law
                  principles and, where applicable, in accordance with the Code.

         (d)      Taxes. The Company shall be entitled if necessary or desirable
                  to pay or withhold the amount of any tax attributable to the
                  delivery of Common Stock under the Plan from other amounts
                  payable to the Employee after giving the person entitled to
                  receive such Common Stock notice as far in advance as
                  practical, and the Company may defer making delivery of such
                  Common Stock if any such tax may be pending unless and until
                  indemnified to its satisfaction.

         (e)      Indemnification. In addition to such other rights of
                  indemnification as they may have as members of the Board, the
                  members of the Board shall be indemnified by the Company
                  against all costs and expenses reasonably incurred by them in
                  connection with any action, suit or proceeding to which they
                  or any of them may be party by reason of any action taken or
                  failure to act under or in connection with the Plan or any
                  Option, and against all amounts paid by them in settlement
                  thereof (provided such settlement is approved by independent
                  legal counsel selected by the Company) or paid by them in
                  satisfaction of a judgment in any such action, suite or
                  proceeding, except a judgment based upon a finding of bad
                  faith; provided that upon the institution of any such action,
                  suit or proceeding a Board member shall, in writing, give the
                  Company notice thereof and an opportunity, at its own expense,
                  to handle and defend the same before such Board member
                  undertakes to handle and defend it on her or his own behalf.

         (f)      Gender. For purposes of this Plan, words used in the masculine
                  gender shall include the feminine and neuter, and the singular
                  shall include the plural and vice versa, as appropriate.

         (g)      No Employment Agreement. The Plan shall not confer upon any
                  Optionee any right with respect to continuation of employment
                  with the Company, nor shall it interfere in any way with his
                  right or the Company's right to terminate his employment at
                  any time.

                                       8

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