Document:

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                                                                     EXHIBIT 4.6
                                                                [EXECUTION COPY]

NEITHER THIS WARRANT NOR THE SECURITIES ISSUABLE UPON ITS EXERCISE HAVE BEEN
REGISTERED UNDER EITHER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
ACT"), OR THE SECURITIES LAWS OF ANY STATE, AND MAY NOT BE SOLD, OFFERED FOR
SALE, TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN
EFFECTIVE REGISTRATION STATEMENT WITH RESPECT TO THE SECURITIES UNDER THE
SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF
COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

                          QUALITY CARE SOLUTIONS, INC.
                             (A NEVADA CORPORATION)

                              WARRANT TO PURCHASE
                             SHARES OF COMMON STOCK

No. 1999-1

     THIS CERTIFIES THAT, for value received, Aztore Holdings, Inc. or
registered assigns (hereinafter, the "Holder"), is entitled to purchase, subject
to the conditions set forth below, at any time or from time to time during the
Exercise Period (as defined below), 450,000 shares (the "Shares") of fully paid
and nonassessable Common Stock, $0.01 par value (the "Common Stock"), of QUALITY
CARE SOLUTIONS, INC., a Nevada corporation (the "Company"), or such other number
of Shares as equals the aggregate amount of all "Advances" made by Holder to the
Company pursuant to the terms of, and as defined in, that certain Convertible
Note of even date herewith executed by the Company in favor of Holder,
multiplied by 50%, at the per share purchase price (the "Warrant Price") set
forth in subsection 1.1, subject to the further provisions of this Warrant. The
term "Warrants" as used herein shall mean this Warrant and all instruments
issued by the Company which are substantially identical to this Warrant (except
for the name of the Holder and the number of securities purchasable by the
Holder).

1. EXERCISE OF WARRANT

     The terms and conditions upon which this Warrant may be exercised, and the
Common Stock covered hereby may be purchased, are as follows:

     1.1 WARRANT PRICE. The Warrant Price shall be One Dollar and 25/100
($1.25) per Share, subject to adjustment as provided in Section 4, below.
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     1.2  Method of Exercise. The Holder of this Warrant, may at any time prior
to September 1, 2004, (the "Exercise Period"), exercise in whole or in part the
purchase rights evidenced by this Warrant. Such exercise shall be effected by:

          (a)  the surrender of the Warrant, together with a duly executed copy
     of the form of subscription attached hereto, to the Secretary of the
     Company at its principal offices;

          (b)  the payment to the Company, by certified check or bank draft
     payable to its order, of an amount equal to the aggregate Warrant Price for
     the number of Shares for which the purchase rights hereunder are being
     exercised; and

          (c)  the delivery to the Company, if necessary, to assure compliance
     with federal and state securities laws, of an instrument executed by the
     Holder certifying that the Shares are being acquired for the sole account
     of the Holder and not with a view to any resale or distribution.

     1.3  Satisfaction with Requirements of Securities Act of 1933.
Notwithstanding the provisions of subsection 1.2(c) and Section 7, each and
every exercise of this Warrant is contingent upon the Company's satisfaction
that the issuance of Common Stock upon the exercise is exempt from the
requirements of the Securities Act and all applicable state securities laws. The
Holder of this Warrant agrees to execute any and all documents deemed necessary
by the Company to effect the exercise of this Warrant.

     1.4  Issuance of Shares and New Warrant. In the event the purchase rights
evidenced by this Warrant are exercised in whole or in part, one or more
certificates for the purchased Shares shall be issued as soon as practicable
thereafter to the person exercising such rights. Such Holder shall also be
issued at such time a new Warrant representing the number of Shares (if any) for
which the purchase rights under this Warrant remain unexercised and continuing
in force and effect.

2   TRANSFERS

     2.1  Restrictions on Transfers. Neither this Warrant nor the Shares of
Common Stock may be disposed of, directly or indirectly, except in accordance
with the provisions of the Securities Act and the provisions of any applicable
state securities laws and the rules and regulations thereunder.

     2.2  Registered Holder. The Holder agrees that until such time as any
permitted transfer of this Warrant is recorded on the books of the Company, the
Company may treat the registered Holder of this Warrant as the absolute owner.

     2.3  Form of New Warrants. All Warrants issued in connection with
transfers of this Warrant shall bear the same date as this Warrant and shall be
substantially identical in form and provision to this Warrant, with the
possible exception of the number of Shares purchasable thereunder.

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3.   FRACTIONAL SHARES

     Notwithstanding that the number of Shares purchasable upon the exercise of
this Warrant may have been adjusted pursuant to the terms hereof, the Company
shall nonetheless not be required to issue fractions of Shares upon exercise of
this Warrant or to distribute certificates that evidence fractional shares nor
shall the Company be required to make any cash payments in lieu thereof upon
exercise of this Warrant. If a fractional Share shall result from adjustments
in the number of Shares purchasable hereunder, the number of Shares purchasable
hereunder shall, on an aggregate basis taking into account all adjustments
hereunder, be rounded down to the next whole number.

4.   ANTIDILUTION PROVISIONS

     The provisions of this Section 4 shall apply in the event that any of the
events described in this Section 4 shall occur with respect to the Common Stock
of the Company at any time on or after the original issuance date of this
Warrant.

     4.1  Stock Splits and Combinations. If the Company shall at any time
subdivide or combine its outstanding shares of Common Stock, this Warrant
shall, after that subdivision or combination, evidence the right to purchase
the number of shares of Common Stock that would have been issuable as a result
of that change with respect to the Shares of Common Stock which were
purchasable under this Warrant immediately before that subdivision or
combination. If the Company shall at any time subdivide the outstanding shares
of Common Stock, the Warrant Price then in effect immediately before that
subdivision shall be proportionately decreased, and, if the Company shall at
any time combine the outstanding shares of Common Stock, the Warrant Price then
in effect immediately before that combination shall be proportionately
increased. Any adjustment under this section shall become effective at the
close of business on the date the subdivision or combination becomes effective.

     4.2  Reclassification, Exchange and Substitution. If the Common Stock
issuable upon exercise of this Warrant shall be changed into the same or a
different number of shares of any other class or classes of stock, whether by
capital reorganization, reclassification, or other otherwise (other than a
subdivision or combination of shares provided for above), the Holder of this
Warrant shall, on its exercise, be entitled to purchase for the same aggregate
consideration, in lieu of the Common Stock which the Holder would have become
entitled to purchase but for such change, a number of shares of such other
class or classes of stock equivalent to the number of shares of Common Stock
that would have been subject to purchase by the Holder on exercise of this
Warrant immediately before that change.

     4.3  Reorganizations, Mergers, Consolidations or Sale of Assets. If at any
time there shall be a capital reorganization of the Company's Common Stock
(other than a combination, reclassification, exchange, or subdivision of shares
provided for elsewhere above) or merger or consolidation of the Company with or
into another corporation, or the sale of the Company's properties and assets
as, or substantially as, an entirety to any other person, then, as a part of
such reorganization, merger, consolidation or sale, lawful provision shall be
made so that the Holder of this Warrant shall thereafter be entitled to receive
upon exercise of this Warrant, during the period

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specified in this Warrant and upon payment of the Warrant Price then in effect,
the number of shares of Common Stock or other securities or property of the
Company, or of the successor corporation resulting from such merger or
consolidation, to which a holder of the Common Stock deliverable upon exercise
of this Warrant would have been entitled in such capital reorganization,
merger, or consolidation or sale if this Warrant had been exercised immediately
before that capital reorganization, merger, consolidation, or sale. In any such
case, appropriate adjustment (as determined in good faith by the Company's
Board of Directors) shall be made in the application of the provisions of this
Warrant with respect to the rights and interests of the Holder of this Warrant
after the reorganization, merger, consolidation, or sale to the end that the
provisions of this Warrant (including adjustment of the Warrant Price then in
effect and number of Shares purchasable upon exercise of this Warrant) shall be
applicable after that event, as near as reasonably may be, in relation to any
shares or other property deliverable after that event upon exercise of this
Warrant. The Company shall, within five business days after making such
adjustment, give written notice (by first class mail, postage prepaid) to the
registered Holder of this Warrant at the address of that Holder shown on the
Company's books. That notice shall set forth, in reasonable detail, the event
requiring the adjustment and the method by which the adjustment was calculated
and specify the Warrant Price then in effect after the adjustment and the
increased or decreased number of Shares purchasable upon exercise of this
Warrant. When appropriate, that notice may be given in advance and included as
part of the notice required under other provisions of this Warrant.

     4.4  Common Stock Dividends; Distributions.  In the event the Company
should at any time prior to the expiration of this Warrant fix a record date
for the determination of the holders of Common Stock entitled to receive a
dividend or other distribution payable in additional shares of Common Stock or
other securities or rights convertible into or entitling the holder thereof to
receive, directly or indirectly, additional shares of Common Stock (hereinafter
referred to as the "Common Stock Equivalents") without payment of any
consideration by such holder for the additional shares of Common Stock or
Common Stock Equivalents (including the additional shares of Common Stock
issuable upon conversion or exercise thereof), then, as of such record date (or
the date of such distribution, split or subdivision if no record date is
fixed), the Warrant Price shall be appropriately decreased and the number of
shares of Common Stock issuable upon exercise of the Warrant shall be
appropriately increased in proportion to such increase of outstanding shares.

     4.5  Adjustments on Other Distributions.  In the event the Company shall
declare a distribution payable in securities of other persons, evidences of
indebtedness issued by the Company or other persons, assets (excluding cash
dividends) or options or rights not referred to in subsection 4.4, then, in
each such case for the purpose of this subsection 4.5, upon exercise of this
Warrant the Holder hereof shall be entitled to a proportionate share of any
such distribution as though such Holder was the holder of the number of shares
of Common Stock of the Company into which this Warrant may be exercised as of
the record date fixed for the determination of the holders of Common Stock of
the Company entitled to receive such distribution.

     4.6  Adjustment Upon Dilutive Issuance.

               (a)  Issuances Below Warrant Price.  Except as provided in
Section 4.6(c) below, in the event the Company shall issue additional shares
of Common Stock or securities or options convertible into shares of Common
Stock without consideration or for a

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consideration per share of Common Stock (on an as-converted to Common Stock
basis, if applicable) less than the effective Warrant Price in effect on the
date of and immediately prior to such issuance, then, and in each such event,
such Warrant Price shall be reduced concurrently with such issue to the Warrant
Price determined as follows: (i) the number of shares of Common Stock
outstanding immediately prior to the issuance that results in the adjustment,
(ii) shall be multiplied by such Warrant Price in effect immediately prior to
such issuance, (iii) to the result of (ii) shall be added the actual
consideration received for the additional shares of Common Stock, (iv) the
resulting total shall be divided by the sum of (A) the number of shares of
Common Stock outstanding immediately prior to the issuance that results in the
adjustment and (B) the number of additional shares of Common Stock resulting in
the adjustment. If the quotient thus obtained is less than the Warrant Price
then in effect, such quotient shall be the adjusted Warrant Price until further
adjusted as provided herein.

               (b) Determination of Consideration. For purposes of Section
4.6(a) above, the consideration received by the Company for the issuance of any
additional shares of Common Stock shall be computed as follows:

               (i) Such consideration shall:

               (A) insofar as it consists of cash, be computed at the aggregate
          amount of cash received by the Company excluding amounts paid or
          payable for accrued interest or accrued dividends;

               (B) insofar as it consists of property other than cash, be
          computed at the fair value thereof at the time of such issue, as
          determined in good faith by the Board; and

               (C) in the event additional shares of Common Stock are issued
          together with other shares of securities or other assets of the
          Company for consideration which covers both, be the proportion of
          such consideration so received, computed as provided in (A) and (B)
          above, as determined in good faith by the Board.

               (ii)  For the purpose of computing the initial adjustment of the
Warrant Price in the event the Company issues securities or options convertible
into Common Stock, the consideration per share received by the Company for such
securities or options shall be determined by dividing:

               (A)  the total amount, if any, received or receivable by the
          Company as consideration for the issue of such securities or options,
          plus the minimum aggregate amount of additional consideration payable
          to the Company upon the exercise or the conversion or exchange of such
          securities or options, or in the case of options for convertible
          securities, the exercise of such options for convertible securities
          and the conversion or exchange of such convertible securities, by

               (B)  the maximum number of shares of Common Stock issuable upon
          the exercise of or the conversion or exchange of such options or
          securities.

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Any commission, fees, costs or other expenses related to the issuance of any
additional shares of Common Stock or securities or options convertible into
shares of Common Stock shall be included in the consideration received by the
Company.

               (c) Exceptions. The foregoing provisions of this Section 4.6
notwithstanding, no adjustment to the Warrant Price shall be made upon the
issuance of (i) up to 4,500,000 shares of Common Stock or options therefor
issued or reserved for issuance to employees, directors, consultants or advisors
of the Company pursuant to stock purchase, stock option or other agreements
approved by the Board since the Company's inception, (ii) any Common Stock or
other securities or options issued or issuable with approval of Holder, (iii)
the issuance of Common Stock upon conversion of the Series A Preferred Stock,
Series B Preferred Stock, Series C Preferred Stock and any Series D Preferred
Stock that may be issued, (iv) Common Stock underlying other options or
convertible securities as to which an adjustment to the Warrant Price has been
made pursuant to Section 4.6(a) or (v) up to 585,844 shares of Common Stock
issued upon exercise of warrants outstanding as of the date hereof.

               4.7 Certificate as to Adjustments. In the case of each adjustment
or readjustment of the Warrant Price pursuant to this Section 4, the Company
will promptly compute such adjustment or readjustment in accordance with the
terms hereof and cause a certificate setting forth such adjustment or
readjustment and showing in detail the facts upon which such adjustment or
readjustment is based, to be delivered to the Holder of this Warrant. The
Company will, upon the written request at any time of the Holder of this
Warrant, furnish or cause to be furnished to such Holder a certificate setting
forth:

                    (a)  Such adjustments and readjustments:

                    (b)  The purchase price at the time in effect; and

                    (c)  The number of shares of Common Stock issuable upon
               exercise of the Warrant and the amount, if any, of other property
               at the time receivable upon the exercise of the Warrant.

               4.8 Reservation of Stock Issuable Upon Exercise. The Company
shall at all times reserve and keep available out of its authorized but unissued
shares of Common Stock solely for the purpose of effecting the exercise of this
Warrant such number of its shares of Common Stock as shall from time to time be
sufficient to effect the exercise of this Warrant and if at any time the number
of authorized but unissued shares of Common Stock shall not be sufficient to
effect the exercise of this Warrant, in addition to such other remedies as shall
be available to the Holder of this Warrant, the Company will use its best
efforts to take such corporate action as may, in the opinion of its counsel, be
necessary to increase its authorized but unissued shares of Common Stock to such
number of shares as shall be sufficient for such purposes.

5.   RIGHTS PRIOR TO EXERCISE OF WARRANT

     This Warrant does not entitle the Holder to any of the rights of a
stockholder of the Company, including without limitation, the right to receive
dividends or other distributions, to

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exercise any preemptive rights, to vote, or to consent or to receive notice as
a stockholder of the Company. If, however, at any time prior to the expiration
of this Warrant and prior to its exercise, any of the following events shall
occur:

          (a)  the Company shall declare any dividend payable in any securities
     upon its shares of Common Stock or make any distribution (other than a
     regular cash dividend) to the holders of its shares of Common Stock; or

          (b)  the Company shall offer to the holders of its shares of Common
     Stock any additional shares of Common Stock or securities convertible into
     or exchangeable for shares of Common Stock or any right to subscribe for or
     purchase any thereof; or

          (c)  a dissolution, liquidation or winding up of the Company (other
     than in connection with a consolidation, merger, sale, transfer or lease of
     all or substantially all of its property, assets, and business as an
     entirety) shall be proposed and action by the Company with respect thereto
     has been approved by the Company's Board of Directors;

then in any one or more of said events the Company shall give notice in writing
of such event to the Holder at his last address as it shall appear on the
Company's records at least fifteen (15) days prior to the date fixed as a
record date or the date of closing the transfer books for the determination of
the stockholders entitled to such dividends, distribution, or subscription
rights, or for the determination of stockholders entitled to vote on such
proposed dissolution, liquidation or winding up. Such notice shall specify such
record date or the date of closing the transfer books, as the case may be.
Failure to publish, mail or receive such notice or any defect therein or in the
publication or mailing thereof shall not affect the validity of any action
taken in connection with such dividend, distribution or subscription rights, or
such proposed dissolution, liquidation or winding up. Each person in whose name
any certificate for Shares is to be issued shall for all purposes be deemed to
have become the holder of record of such Shares on the date on which this
instrument was surrendered and payment of the Warrant Price was made,
irrespective of the date of delivery of such stock certificate, except that, if
the date of such surrender and payment is a date when the stock transfer books
of the Company are closed, such person shall be deemed to have become the
holder of such Shares at the close of business on the next succeeding date on
which the stock transfer books are open.

6.   REGISTRATION RIGHTS

     (a)  If at any time (provided that Holder continues to hold this Warrant
or any of the Shares) the Company shall determine to register any of its
securities under the Securities Act in connection with a public offering solely
for cash, whether such offering shall be for the benefit of one or more
shareholders of the Company, the Company or any combination of the foregoing,
the Company will:

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          (i) promptly give to Holder written notice thereof (which shall
     include a list of the jurisdictions in which the Company intends to attempt
     to qualify such securities under the applicable blue sky or other state
     securities laws); and

          (ii) include in such registration (an "Incidental Registration"), and
     any related qualification under blue sky laws, and in any underwriting
     involved therein, all Shares acquired by Holder pursuant to the exercise of
     this Warrant (collectively, the "Registrable Securities") specified in a
     written request made by Holder within 30 days after receipt of such written
     notice from the Company, except as set forth in Section 6(b).

     (b) If the Incidental Registration of which the Company gives notice is for
a registered public offering involving an underwriting, the Company shall so
advise Holder pursuant to the written notice given pursuant to Section 6(a)(i).
In such event, the right of Holder to registration pursuant to this Section 6
shall be conditioned upon Holder's participation in such underwriting and the
inclusion of Holder's Registrable Securities in the underwriting to the extent
provided herein. Holder, together with the Company and the other parties
distributing their securities through such underwriting, shall enter into an
underwriting agreement in customary form with the underwriter or underwriters
selected for such underwriting by the Company. Notwithstanding any other
provision of this Section 6, if the managing underwriter determines that
marketing factors require a limitation of the number of shares or type of
securities to be underwritten, the managing underwriter may limit the number of
Registrable Securities to be included in such registration (i) in the case of
the Company's initial public offering, to zero, and (ii) in the case of any
other offering, to an amount no less than 30% of all shares to be included in
such offering, provided that if other selling shareholders who are employees,
officers, directors or other affiliates of the Company have requested
registration of securities in the proposed offering, the Company will reduce or
eliminate such other selling shareholders' securities before any reduction or
elimination of Registrable Securities to be included in such registration. The
Company shall so advise all Holders requesting to be included in the
registration and underwriting and the number of shares of Registrable Securities
that may be included in the registration and underwriting shall be allocated
among all the Holders requesting to be included in the registration and
underwriting in proportion, as nearly as practicable, to the respective amounts
of Registrable Securities held by them at the time of filing the registration
statement. To facilitate the allocation of shares in accordance with the above
provisions, the Company or the underwriters may round the number of shares
allocated to any Holder to the nearest 100 shares. In the event that the number
of Holder's shares to be included in an Incidental Registration is limited by
the managing underwriter as provided herein, such excluded shares shall remain
subject to this Section 6 and may be included in subsequent Incidental
Registration in accordance with the provisions hereof. If Holder disapproves of
the terms of the underwriting, it may elect to withdraw therefrom by written
notice to the Company and the managing underwriter. The Registrable Securities
so withdrawn shall also be withdrawn from registration. Any securities excluded
or withdrawn from such underwriting shall be withdrawn from such registration,
but the Holder shall continue to be bound by Section 6(c) hereof and such
Registrable Securities shall not be transferred in a public distribution prior
to ninety (90) days after the effective date of such registration statement, or
such other period of time as the underwriters may require, but in no event shall
such period exceed one hundred and eighty (180) days.

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     (c) Holder shall furnish in writing to the Company such information
regarding Holder and the distribution proposed by Holder as the Company may
reasonably request in writing and as shall be reasonably required in connection
with any registration or qualification referred to in this Section 6.

     (d) All Registration Expenses incurred in connection with any
registration, qualification or compliance with this Section 6 (other than
Selling Expenses, which shall be borne by Holder) shall be borne by the
Company. As used herein, "Registration Expenses" shall mean all expenses,
except Selling Expenses, incurred by the Company in complying with this Section
6, including, without limitation, all registration, qualification and filing
fees, printing expenses, escrow fees, fees and disbursements of legal counsel
and accountants for the Company, blue sky fees and expenses, and the expense of
any special audits incident to or required by any such registration (but
excluding the compensation of regular employees of the Company which shall be
paid in any event by the Company). As used herein "Selling Expenses" shall mean
all underwriting fees, discounts, selling commissions and stock transfer taxes
applicable to the Registrable Securities registered by Holder.

     (e) Notwithstanding any provision of this Section 6 to the contrary,
Holder hereby acknowledges that the registration rights granted herein shall at
all times be entirely inferior and subordinate to those granted pursuant to the
Shareholder Rights Agreement dated as of May 29, 1998 by and among the Company
and the holders of its capital stock and other securities identified therein.
To the extent the provisions of this Agreement are not specifically in conflict
with those of the Company's Shareholder Rights Agreement dated as of May 29,
1998 (the "Rights Agreement"), the registration procedures set forth in Section
5 of the Rights Agreement are incorporated herein by reference.

     (f) Subject to Section 6(e) above, Holder shall have the right to one
demand registration in accordance with the terms and subject to the provisions
of Section 5(a)(1) of the Rights Agreement.

7.   SUCCESSORS AND ASSIGNS

     The terms and provisions of this Warrant shall inure to the benefit of,
and be binding upon, the Company and the holder thereof and their respective
successors and permitted assigns.

8.   RESTRICTED SECURITIES

     In order to enable the Company to comply with the Securities Act and
applicable state laws, the Company may require the Holder as a condition of the
transfer or exercise of this Warrant, to give written assurance satisfactory to
the Company that the Warrant, or in the case of an exercise hereof the Shares
subject to this Warrant, are being acquired for his own account, for investment
only, with no view to the distribution of the same, and that any disposition of
all or any portion of this Warrant or the Shares issuable upon the due exercise
of this Warrant shall not be made, unless and until:

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                    (a)  There is then in effect a registration statement under
               the Securities Act covering such proposed disposition and such
               disposition is made in accordance with such registration
               statement; or

                    (b)  (i) The Holder has notified the Company of the
               proposed disposition and shall have furnished the Company with a
               detailed statement of the circumstances surrounding the proposed
               disposition, and (ii) the Holder has furnished the Company with
               an opinion of counsel, reasonably satisfactory to the Company,
               that such disposition will not require registration of such
               securities under the Securities Act and applicable state law.

     The Holder acknowledges that this Warrant is, and each of the shares of
Common Stock issuable upon the due exercise hereof will be, a restricted
security, that he understands the provisions of Rule 144 of the Securities and
Exchange Commission, and that the certificate or certificates evidencing such
shares of Common Stock will bear a legend substantially similar to the
following:

     "The shares represented by this certificate have not been registered under
     the Securities Act of 1933, as amended, or under the securities laws of any
     state. They may not be sold, transferred or otherwise disposed of in the
     absence of an effective registration statement covering these securities
     under the said Act or laws, or an opinion of counsel satisfactory to the
     Company and its counsel that registration is not required thereunder."

9.   LOSS OR MUTILATION

     Upon receipt by the Company of satisfactory evidence of the ownership of
and the loss, theft, destruction, or mutilation of any Warrant, and (i) in the
case of loss, theft, or destruction, upon receipt by the Company of indemnity
satisfactory to it, or (ii) in the case of mutilation, upon receipt of such
Warrant and upon surrender and cancellation of such Warrant, the Company shall
execute and deliver in lieu thereof a new Warrant representing the right to
purchase an equal number of shares of Common Stock.

10.  NOTICES

     All notices, requests, demands and other communications under this Warrant
shall be in writing and shall be deemed to have been duly given on the date of
service if served personally on the party to whom notice is to be given, or on
the date of mailing if mailed to the party to whom notice is to be given, by
first class mail, registered or certified, postage prepaid, and properly
addressed as follows: if to the Holder, at his address as shown in the Company
records; and if to the Company, at its principal office. Any party may change
its address for the purposes of this subsection by giving the other party
written notice of the new address in the manner set forth above.

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11.  GOVERNING LAW AND SUBMISSION TO JURISDICTION

     The rights and obligations of the parties hereto shall be construed and
enforced in accordance with and governed by the internal laws (and not the
conflict of laws principles) of the State of Arizona. Any action or proceeding
arising out of, relating to or concerning this Warrant, including, without
limitation, any claim of breach of contract, shall be filed in the State and
Federal courts located in Maricopa County, Arizona, which courts shall have
exclusive jurisdiction over the parties hereto and be the exclusive venue for
all such actions or proceedings.

     DATED: October 29, 1999.

                                             QUALITY CARE SOLUTIONS, INC.

                                             By:   /s/ Robert F. Theilmann
                                                _______________________________

                                             Title:  CFO
                                                   ____________________________

ATTEST:

/s/ illegible signature
___________________________
Secretary

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                              SUBSCRIPTION
           (to be completed and executed upon exercise of Warrant)

QUALITY CARE SOLUTIONS, INC.
5030 East Sunrise Drive
Phoenix, Arizona 85044

Gentlemen:

The undersigned hereby irrevocably elects to purchase, pursuant to the
provisions of the within Warrant held by the undersigned, ________ shares of
Common Stock of Quality Care Solutions, Inc.

Payment of the purchase price per Share required under such Warrant accompanies
this subscription.

The undersigned hereby represents and warrants that the undersigned is
acquiring such stock for the account of the undersigned and not for resale or
with a view to distribution of such Common Stock or any part hereof; that the
undersigned is fully aware of the transfer restrictions affecting restricted
securities under the pertinent securities laws and the undersigned understands
that the shares purchased hereby are restricted securities and that the
certificate or certificates evidencing the same will bear a legend to that
effect.

DATED: ________________ , _____.

                                       Signature: __________________________

                                       Address: ____________________________

                                       _____________________________________

                                       12<PAGE>   1
                                                                 Exhibit 10.1(a)

                          QUALITY CARE SOLUTIONS, INC.
                              A NEVADA CORPORATION

                             1996 STOCK OPTION PLAN
               (AS AMENDED AND RESTATED THROUGH JANUARY 13, 2000)

         1. Purposes of the Plan. The purposes of this Plan are to attract and
retain the best available personnel for positions of substantial responsibility
and to serve as Directors of the Company, to provide additional incentive to
Employees, Directors and Consultants and to promote the success of the business
of Quality Care Solutions, Inc., a Nevada corporation (the "Company"). Options
granted under the Plan may be Incentive Stock Options or Nonstatutory Stock
Options, as determined by the Administrator at the time of grant. Stock Purchase
Rights may also be granted under the Plan.

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

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

                  b. "Applicable Laws" means the requirements relating to the
administration of stock option plans under U.S. state corporate laws, U.S.
federal and state securities laws, the Code, any stock exchange or quotation
system on which the Common Stock is listed or quoted and the applicable laws of
any other country or jurisdiction where Options or Stock Purchase Rights are
granted under the Plan.

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

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

                  e. "Committee" means a committee of Directors appointed by the
Board in accordance with Section 4 hereof.

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

                  g. "Company" means Quality Care Solution, Inc., a Nevada
Corporation.

                  h. "Consultant" means any person who is engaged by the Company
or any Parent or Subsidiary to render consulting or advisory services to such
entity.

                  i. "Director" means a member of the Board of Directors of the
Company.

                  j. "Disability" means total and permanent disability as
defined in Company policy then in effect, provided, however, that in the case of
an Optionee who has entered into an Employment Agreement with the Company, any
definition of "Disability" in such agreement shall govern and be incorporated
herein by this reference.
<PAGE>   2
                  k. "Employee" means any person, including Officers and
Directors, employed by the Company or any Parent or Subsidiary of the Company. A
Service Provider shall not cease to be an Employee in the case of (i) any leave
of absence approved by the Company or (ii) transfers between locations of the
Company or between the Company, its Parent, any Subsidiary, or any successor.
For purposes of Incentive Stock Options, no such leave may exceed ninety days,
unless reemployment upon expiration of such leave is guaranteed by statute or
contract. If reemployment upon expiration of a leave of absence approved by the
Company is not so guaranteed, on the 181st day of such leave any Incentive Stock
Option held by the Optionee shall cease to be treated as an Incentive Stock
Option and shall be treated for tax purposes as a Nonstatutory Stock Option.
Neither service as a Director nor payment of a director's fee by the Company
shall be sufficient to constitute "employment" by the Company.

                  l. "Employment Agreement" shall mean an agreement between the
Optionee and the Company which is valid and in force on the date of any action
or determination required hereunder.

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

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

                           (i) If the Common Stock is listed on any established
         stock exchange or a national market system, including without
         limitation the Nasdaq National Market or The Nasdaq SmallCap Market of
         The Nasdaq Stock Market, its Fair Market Value shall be the closing
         sales price for such stock (or the closing bid, if no sales were
         reported) as quoted on such exchange or system for the last market
         trading day prior to the time of determination, as reported in The Wall
         Street Journal or such other source as the Administrator deems
         reliable;

                           (ii) If the Common Stock is regularly quoted by a
         recognized securities dealer but selling prices are not reported, its
         Fair Market Value shall be the mean between the high bid and low asked
         prices for the Common Stock on the last market trading day prior to the
         day of determination; or

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

                  o. "Incentive Stock Option" means an Option intended to
qualify as an incentive stock option within the meaning of Section 422 of the
Code.

                  p. "Nonstatutory Stock Option" means an Option not intended to
qualify as an Incentive Stock Option.

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

                                       2
<PAGE>   3
                  r. "Option" means a stock option granted pursuant to the Plan.

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

                  t. "Option Exchange Program" means a program whereby
outstanding Options are exchanged for Options with a lower exercise price.

                  u. "Optioned Stock" means the Common Stock subject to an
Option or a Stock Purchase Right.

                  v. "Optionee" means the holder of an outstanding Option or
Stock Purchase Right granted under the Plan.

                  w. "Outside Director" means a director of the Company who is
not an Employee.

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

                  y. "Plan" means this 1996 Amended and Restated Stock Option
Plan.

                  z. "Restricted Stock" means shares of Common Stock acquired
pursuant to a grant of a Stock Purchase Right under Section 11 below.

                  aa. "Section 16(b)" means Section 16(b) of the Securities
Exchange Act of 1934, as amended.

                  bb. "Service Provider" means an Employee, Director or
Consultant.

                  cc. "Share" means a share of the Common Stock, as adjusted in
accordance with Section 12 below.

                  dd. "Stockholders Agreement" shall have the meaning set forth
in Section 20 of this Plan.

                  ee. "Stock Purchase Right" means a right to purchase Common
Stock pursuant to Section 11 below.

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

         3. Stock Subject to the Plan. Subject to the provisions of Section 12
of the Plan, the maximum aggregate number of Shares which may be subject to
option and sold under the Plan is 4,500,000 Shares. The Shares may be authorized
but unissued, or reacquired Common Stock.

                  If an Option or Stock Purchase Right granted pursuant to the
Plan expires or

                                       3
<PAGE>   4
becomes unexercisable without having been exercised in full, or is surrendered
pursuant to an Option Exchange Program, the unpurchased Shares which were
subject thereto shall become available for future grant or sale under the Plan
(unless the Plan has terminated). However, Shares that have actually been issued
under the Plan, upon exercise of either an Option or Stock Purchase Right, shall
not be returned to the Plan and shall not become available for future
distribution under the Plan, except that if Shares of Restricted Stock are
repurchased by the Company at their original purchase price, such Shares shall
become available for future grant under the Plan.

         4. Administration of the Plan.

                  a. Administrator. The Plan shall be administered by the Board,
which shall be the Administrator. The Board may appoint a Committee with the
power to make recommendations to the Board for its approval with respect to any
matter delegated by the Board to the Committee. The initial Administrator of the
Plan shall be the Compensation Committee of the Board of Directors.

                  b. Powers of the Administrator. Subject to the provisions of
the Plan, the Administrator shall have the authority, in its discretion to:

                           (i) determine the Fair Market Value;

                           (ii) select the Service Providers to whom Options and
         Stock Purchase Rights may from time to time be granted hereunder;

                           (iii) determine the number of Shares to be covered by
         each such award granted hereunder;

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

                           (v) determine the terms and conditions, of any Option
         or Stock Purchase Right granted hereunder. Such terms and conditions
         include, but are not limited to, the exercise price, the time or times
         when Options or Stock Purchase Rights may be exercised (which may be
         based on performance criteria), any vesting acceleration or waiver of
         forfeiture restrictions, and any restriction or limitation regarding
         any Option or Stock Purchase Right or the Common Stock relating
         thereto, based in each case on such factors as the Administrator, in
         its sole discretion, shall determine;

                           (vi) determine whether and under what circumstances
         to make an offer that an Option may be settled in cash under subsection
         9(e) instead of Common Stock;

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

                           (viii) initiate an Option Exchange Program;

                                       4
<PAGE>   5
                           (ix) prescribe, amend and rescind rules and
         regulations relating to the Plan, including rules and regulations
         relating to sub-plans established for the purpose of qualifying for
         preferred tax treatment under foreign tax laws;

                           (x) allow Optionees to satisfy withholding tax
         obligations by electing to have the Company withhold from the Shares to
         be issued upon exercise of an Option or Stock Purchase Right that
         number of Shares having a Fair Market Value equal to the amount
         required to be withheld. The Fair Market Value of the Shares to be
         withheld shall be determined on the date that the amount of tax to be
         withheld is to be determined. All elections by Optionees to have Shares
         withheld for this purpose shall be made in such form and under such
         conditions as the Administrator may deem necessary or advisable; and

                           (xi) construe and interpret the terms of the Plan and
         awards granted pursuant to the Plan.

                  c. Effect of Administrator's Decision. Subject to any contrary
provisions in any Stock Option Agreement or Employment Agreement, all decisions,
determinations and interpretations of the Administrator shall be final and
binding on all Optionees.

         5. Eligibility.

                  a. Nonstatutory Stock Options and Stock Purchase Rights may be
granted to Service Providers, provided, however, that only Nonstatutory Stock
Options may be granted to Outside Directors. Incentive Stock Options may be
granted only to Employees.

                  b. Each Option shall be designated in the Option Agreement as
either an Incentive Stock Option or a Nonstatutory Stock Option. However,
notwithstanding such designation, to the extent that the aggregate Fair Market
Value of the Shares with respect to which Incentive Stock Options are
exercisable for the first time by the Optionee during any calendar year (under
all plans of the Company and any Parent or Subsidiary) exceeds $100,000, such
Options shall be treated as Nonstatutory Stock Options. For purposes of this
Section 5(b), Incentive Stock Options shall be taken into account in the order
in which they were granted. The Fair Market Value of the Shares shall be
determined as of the time the Option with respect to such Shares is granted.

                  c. Neither the Plan nor any Option or Stock Purchase Right
shall confer upon any Optionee any right with respect to continuing the
Optionee's relationship as a Service Provider with the Company, nor shall it
interfere in any way with his or her right or the Company's right to terminate
such relationship at any time, with or without cause, subject to the terms and
conditions of any Employment Agreements.

                  d. The maximum number of Shares of Common Stock with respect
to which Options may be granted to any single Optionee during any three year
period shall be 50% of all Shares reserved for issuance pursuant to the Plan.

                                       5
<PAGE>   6
                  e. On June 1 of each calendar year during the term of the
Plan, each person who is then serving as a Outside Director on such date, shall
be granted automatically and without any further action by the Board or the
Administrator, a Nonstatutory Stock Option to purchase 10,000 shares of the
Common Stock of the Company, provided, that:

                           (i) such person is serving as an Outside Director on
         the date of the grant;

                           (ii) such person has not declined to participate in
         the Plan; and

                           (iii) such person has attended seventy-five percent
         (75%) of all Board meetings and meetings of Board committees to which
         such person is assigned during that portion of the year prior to which
         they served as an Outside Director.

         6. Term of Plan. The Plan shall become effective upon its adoption by
the Board. It shall continue in effect for a term of ten (10) years unless
sooner terminated under Section 14 of the Plan.

         7. Term of Option. The term of each Option shall be stated in the
Option Agreement; provided, however, that the term shall be no more than ten
(10) years from the date of grant thereof. In the case of an Incentive Stock
Option granted to an Optionee who, at the time the Option is granted, owns stock
representing more than ten percent (10%) of the voting power of all classes of
stock of the Company or any Parent or Subsidiary, the term of the Option shall
be five (5) years from the date of grant or such shorter term as may be provided
in the Option Agreement.

         8. Option Exercise Price and Consideration.

                  a. The per share exercise price for the Shares to be issued
upon exercise of an Option shall be such price as is determined by the
Administrator, but shall be subject to the following:

                           (i) In the case of an Incentive Stock Option

                                    (A) granted to an Employee who, at the time
                  of grant of such Option, owns stock representing more than ten
                  percent (10%) of the voting power of all classes of stock of
                  the Company or any Parent or Subsidiary, the exercise price
                  shall be no less than 110% of the Fair Market Value per Share
                  on the date of grant.

                                    (B) granted to any other Employee, the per
                  Share exercise price shall be not less than 100% of the Fair
                  Market Value per Share on the date of grant.

                           (ii) In the case of a Nonstatutory Stock Option

                                       6
<PAGE>   7
                                    (A) granted to a Service Provider who, at
                  the time of grant of such Option, owns stock representing more
                  than ten percent (10%) of the voting power of all classes of
                  stock of the Company or any Parent or Subsidiary, the exercise
                  price shall be no less than 110% of the Fair Market Value per
                  Share on the date of grant.

                                    (B) granted to any other Service Provider,
                  the per Share exercise price shall be no less than 85% of the
                  Fair Market Value per Share on the date of grant.

                                    (C) granted to an Outside Director, the same
                  exercise price shall be 100% of the Fair Market Value per
                  share on the date of grant.

                           (iii) Notwithstanding the foregoing, Options may be
         granted with a per Share exercise price other than as required above
         pursuant to a merger or other corporate transaction.

                           b. The consideration to be paid for the Shares to be
issued upon exercise of an Option, including the method of payment, shall be
determined by the Administrator (and, in the case of an Incentive Stock Option,
shall be determined at the time of grant). Such consideration may consist of (1)
cash, (2) check, (3) promissory note, (4) other Shares which (x) in the case of
Shares acquired upon exercise of an Option, have been owned by the Optionee for
more than six months on the date of surrender, and (y) have a Fair Market Value
on the date of surrender equal to the aggregate exercise price of the Shares as
to which such Option shall be exercised, (5) consideration received by the
Company under a cashless exercise program implemented by the Company in
connection with the Plan, or (6) any combination of the foregoing methods of
payment. In making its determination as to the type of consideration to accept,
the Administrator shall consider if acceptance of such consideration may be
reasonably expected to benefit the Company.

                           c. The Administrator may provide for such additional
terms and conditions in the grant of the Option as it deems appropriate, which
terms shall be set forth in a written Option Agreement to be executed by the
Company and the Optionee.

         9. Exercise of Option; Vesting; Termination.

                           a. Procedure for Exercise; Vesting; Rights as a
Shareholder. Any Option granted hereunder shall be exercisable according to the
terms hereof at such times and under such conditions, including vesting
conditions, as determined by the Administrator and set forth in the Option
Agreement. Unless the Administrator provides otherwise, vesting of Options
granted hereunder shall be tolled during any unpaid leave of absence. An Option
may not be exercised for a fraction of a Share.

                           An Option shall be deemed exercised when the Company
receives: (i) written or electronic notice of exercise (in accordance with the
Option Agreement) from the person entitled to exercise the Option, and (ii) full
payment for the Shares with respect to which

                                       7
<PAGE>   8
the Option is exercised. Full payment may consist of any consideration and
method of payment authorized by the Administrator and permitted by the Option
Agreement and the Plan. Shares issued upon exercise of an Option shall be issued
in the name of the Optionee or, if requested by the Optionee, in the name of the
Optionee and his or her spouse. Until the Shares are issued (as evidenced by the
appropriate entry on the books of the Company or of a duly authorized transfer
agent of the Company), no right to vote or receive dividends or any other rights
as a shareholder shall exist with respect to the Shares, notwithstanding the
exercise of the Option. The Company shall issue (or cause to be issued) such
Shares promptly after the Option is exercised. No adjustment will be made for a
dividend or other right for which the record date is prior to the date the
Shares are issued, except as provided in Section 12 of the Plan.

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

     b. Termination of Relationship as a Service Provider. If an Optionee ceases
to be a Service Provider, such Optionee may exercise his or her Option within
such period of time as is specified in the Option Agreement (of at least ninety
(90) days) to the extent that the Option is vested on the date of termination
(but in no event later than the expiration of the term of the Option as set
forth in the Option Agreement). In the absence of a specified time in the Option
Agreement, the Option shall remain exercisable for three (3) months following
the Optionee's termination. If, on the date of termination, the Optionee is not
vested as to his or her entire Option, the Shares covered by the unvested
portion of the Option shall revert to the Plan. If, after termination, the
Optionee does not exercise his or her Option within the time specified by the
Administrator, the Option shall terminate, and the Shares covered by such Option
shall revert to the Plan.

     c. Disability of Optionee. If an Optionee ceases to be a Service Provider
as a result of the Optionee's Disability, the Optionee may exercise his or her
Option within such period of time as is specified in the Option Agreement (of at
least twelve (12) months) to the extent the Option is vested on the date of
termination (but in no event later than the expiration of the term of such
Option as set forth in the Option Agreement). In the absence of a specified time
in the Option Agreement, the Option shall remain exercisable for twelve (12)
months following the Optionee's termination. If, on the date of termination, the
Optionee is not vested as to his or her entire Option, the Shares covered by the
unvested portion of the Option shall revert to the Plan. If, after termination,
the Optionee does not exercise his or her Option within the time specified
herein, the Option shall terminate, and the Shares covered by such Option shall
revert to the Plan.

     d. Death of Optionee. If an Optionee dies while a Service Provider, the
Option may be exercised within such period of time as is specified in the Option
Agreement (of at least twelve (12) months) to the extent that the Option is
vested on the date of death (but in no event later than the expiration of the
term of such Option as set forth in the Option Agreement) by the Optionee's
estate or by a person who acquires the right to exercise the Option by bequest
or inheritance. In the absence of a specified time in the Option Agreement, the
Option shall remain exercisable for twelve (12) months following the Optionee's
termination. If, at the time

                                       8
<PAGE>   9
of death, the Optionee is not vested as to the entire Option, the Shares covered
by the unvested portion of the Option shall immediately revert to the Plan. If
the Option is not so exercised within the time specified herein, the Option
shall terminate, and the Shares covered by such Option shall revert to the Plan.

                  e. Buyout Provisions. The Administrator may at any time offer
to buy out for a payment in cash or Shares, an Option previously granted, based
on such terms and conditions as the Administrator shall establish and
communicate to the Optionee at the time that such offer is made, provided,
however, that, subject to the provisions of any Employment Agreement or Option
Agreement, the Optionee shall have no obligation by virtue of this provision to
accept the offer.

         10. Transferability of Options and Stock Purchase Rights. Without the
express consent of the Administrator, which may be granted or withheld in the
Administrator's sole discretion at the time of the grant or thereafter, the
Options and Stock Purchase Rights may not be sold, pledged, assigned,
hypothecated, transferred, or disposed of in any manner other than by will or by
the laws of descent or distribution and may be exercised, during the lifetime of
the Optionee, only by the Optionee. Notwithstanding the foregoing, Incentive
Stock Options shall not be transferable unless transfers are permitted under
then-applicable provisions of the Code.

         11. Stock Purchase Rights.

                  a. Rights to Purchase. Stock Purchase Rights may be issued
either alone, in addition to, or in tandem with other awards granted under the
Plan and/or cash awards made outside of the Plan. After the Administrator
determines that it will offer Stock Purchase Rights under the Plan, it shall
advise the offeree in writing or electronically of the terms, conditions and
restrictions related to the offer, including the number of Shares that such
person shall be entitled to purchase, the price to be paid, and the time within
which such person must accept such offer. The offer shall be accepted by
execution of a Restricted Stock purchase agreement in the form determined by the
Administrator.

                  b. Repurchase Option. Unless the Administrator determines
otherwise, the Restricted Stock purchase agreement shall grant the Company a
repurchase option exercisable upon the voluntary or involuntary termination of
the purchaser's service with the Company for any reason (including death or
disability). The purchase price for Shares repurchased pursuant to the
Restricted Stock purchase agreement shall be the original price paid by the
purchaser and may be paid by cancellation of any indebtedness of the purchaser
to the Company. The repurchase option shall lapse at such rate as the
Administrator may determine. Except with respect to Shares purchased by
Officers, Directors and Consultants, the repurchase option shall in no case
lapse at a rate of less than 20% per year over five (5) years from the date of
purchase.

                  c. Other Provisions. The Restricted Stock purchase agreement
shall contain such other terms, provisions and conditions, including vesting
provisions, not inconsistent with the Plan as may be determined by the
Administrator in its sole discretion.

                                       9
<PAGE>   10
                  d. Rights as a Shareholder. Once the Stock Purchase Right is
exercised, the purchaser shall have rights equivalent to those of a shareholder
and shall be a shareholder when his or her purchase is entered upon the records
of the duly authorized transfer agent of the Company. No adjustment shall be
made for a dividend or other right for which the record date is prior to the
date the Stock Purchase Right is exercised, except as provided in Section 12 of
the Plan.

         12. Adjustments Upon Changes in Capitalization, Merger or Asset Sale.

                  a. Changes in Capitalization. Subject to any required action
by the shareholders of the Company, the number of shares of Common Stock covered
by each outstanding Option or Stock Purchase Right, and the number of shares of
Common Stock which have been authorized for issuance under the Plan but as to
which no Options or Stock Purchase Rights have yet been granted or which have
been returned to the Plan upon cancellation or expiration of an Option or Stock
Purchase Right, as well as the price per share of Common Stock covered by each
such outstanding Option or Stock Purchase Right, 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. The 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 or Stock Purchase Right.

                  b. Dissolution or Liquidation. In the event of the proposed
dissolution or liquidation of the Company, the Administrator shall notify each
Optionee as soon as practicable prior to the effective date of such proposed
transaction. The Administrator in its discretion may provide for an Optionee to
have the right to exercise his or her Option or Stock Purchase Right until
fifteen (15) days prior to such transaction as to all of the Optioned Stock
covered thereby, including Shares as to which the Option or Stock Purchase Right
would not otherwise be exercisable. In addition, the Administrator may provide
that any Company repurchase option applicable to any Shares purchased upon
exercise of an Option or Stock Purchase Right shall lapse as to all such Shares,
provided the proposed dissolution or liquidation takes place at the time and in
the manner contemplated. To the extent it has not been previously exercised, an
Option or Stock Purchase Right will terminate immediately prior to the
consummation of such proposed action.

                  c. Merger or Asset Sale. The Option Agreement with any
Optionee may, but need not, in the discretion of the Administrator, contain
provisions regarding acceleration of vesting or other arrangements in the event
of a merger of the Company, the sale of substantially all of its assets, other
business combination or change of control.

                                       10
<PAGE>   11
         13. Time of Granting Options and Stock Purchase Rights. The date of
grant of an Option or Stock Purchase Right shall, for all purposes, be the date
on which the Administrator makes the determination granting such Option or Stock
Purchase Right, or such other date as is determined by the Administrator. Notice
of the determination shall be given to each Service Provider to whom an Option
or Stock Purchase Right is so granted within a reasonable time after the date of
such grant.

         14. Amendment and Termination of the Plan.

                  a. Amendment and Termination. Subject to any restrictions
under Applicable Laws, the Board may at any time amend the Plan to increase or
decrease any benefits under the Plan, but not to reduce the total number of
Shares subject to grants under Section 3 hereof.

                  b. Shareholder Approval. The Board shall obtain shareholder
approval of any Plan amendment to the extent necessary and desirable to comply
with Applicable Laws.

                  c. Effect of Amendment or Termination. No amendment,
alteration, suspension or termination of the Plan shall impair the rights of any
Optionee, unless mutually agreed otherwise between the Optionee and the
Administrator, which agreement must be in writing and signed by the Optionee and
the Company. Termination of the Plan shall not affect the Administrator's
ability to exercise the powers granted to it hereunder with respect to Options
granted under the Plan prior to the date of such termination.

         15. Conditions Upon Issuance of Shares.

                  a. Legal Compliance. Shares shall not be issued pursuant to
the exercise of an Option unless the exercise of such Option and the issuance
and delivery of such Shares shall comply with Applicable Laws and shall be
further subject to the approval of counsel for the Company with respect to such
compliance.

                  b. Investment Representations. As a condition to the exercise
of an Option, the Administrator 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.

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

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

                                       11
<PAGE>   12
         18. Shareholder Approval. The Plan shall be subject to approval by the
shareholders of the Company within twelve (12) months after the date the Plan is
adopted. Such shareholder approval shall be obtained in the degree and manner
required under Applicable Laws.

         19. Information to Optionees and Purchasers. The Company shall provide
to each Optionee and to each individual who acquires Shares pursuant to the
Plan, not less frequently than annually during the period such Optionee or
purchaser has one or more Options or Stock Purchase Rights outstanding, and, in
the case of an individual who acquires Shares pursuant to the Plan, during the
period such individual owns such Shares, copies of annual financial statements.
The Company shall not be required to provide such statements to key employees
whose duties in connection with the Company assure their access to equivalent
information.

         20. History of Plan. On January 5, 1996, the Board and the shareholders
adopted this 1996 Stock Option Plan with respect to 2,000,000 shares of Common
Stock. On April 8, 1998, the Board and the shareholders amended the Plan
increasing the amount of shares under the Plan to 2,500,000. On April 22, 1999
the Board approved an amendment to the Plan increasing the shares to 4,500,000.
The shareholders approved this amendment on May 28, 1999. On January 13, 2000,
the Board approved the Plan to reflect its current status.

         21. Effect on Outstanding Options. This Plan amends in its entirety the
Company's 1996 Stock Option Plan previously adopted, including all amendments
thereto made prior to the date hereof. All shares previously granted to any
Service Provider pursuant to the terms of the Company's 1996 Stock Option Plan
shall be deemed, for all purposes, to have been granted pursuant to the terms of
the Plan as amended to date, provided, however, that: (i) no provision of this
Plan shall be deemed to amend terms of any option previously granted in any
manner that would adversely affect the rights of any Service Provider or be
deemed to result in a new "measurement date" for purposes of generally accepted
accounting principles; or (ii) no Service Provider having previously entered
into a written agreement with respect to the grant of any options prior to the
adoption of this Plan as amended to date shall be required to enter into a new
agreement containing different or varying terms.

                                       12

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