Document:

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                                                                     EXHIBIT 4.3

                               LEARNINGSTAR CORP.

                  2001 NON-EMPLOYEE DIRECTOR STOCK OPTION PLAN

                1. Purpose. This 2001 Non-Employee Director Stock Option Plan
(the "Plan") is intended to promote the interests of LearningStar Corp. (the
"Company") by providing an inducement to obtain and retain the services of
qualified persons who are not employees or officers of the Company to serve as
members of its Board of Directors (the "Board").

                2. Available Shares. The total number of shares of Common Stock,
par value $.01 per share, of the Company (the "Common Stock") for which Options
(as defined below) may be granted under the Plan shall not exceed 300,000
shares, subject to adjustment in accordance with paragraph 10 of the Plan.
Shares subject to the Plan are authorized but unissued shares or shares that
were previously issued and subsequently reacquired by the Company. If any
Options granted under the Plan are surrendered or lapse without exercise, in
whole or in part, the shares reserved therefor shall continue to be available
under the Plan.

                3. Administration. The Plan shall be administered by the Board
or by a committee appointed by the Board (the "Committee"). In the event the
Board fails to appoint or refrains from appointing a Committee, the Board shall
have all power and authority to administer the Plan. In such event, the word
"Committee" wherever used herein shall be deemed to mean the Board. The
Committee shall, subject to the provisions of the Plan, have the power to
construe the Plan, to determine all questions hereunder, and to adopt and amend
such rules and regulations for the administration of the Plan as it may deem
desirable. No member of the Board or the Committee shall be liable for any
action or determination made in good faith with respect to the Plan or any
Option granted under it.

                4. Automatic Grant of Options. The Plan shall first become
effective on the date that the Plan is approved by the Board (the "Effective
Date"). Subject to the availability of shares under the Plan, (a) each person
who first becomes a member of the Board after the Effective Date and who is not
an employee or officer of the Company (each a "Non-Employee Director" and,
collectively, "Non-Employee Directors") shall be automatically granted on the
date such person is first elected to the Board, without further action by the
Board, an option to purchase 40,000 shares of the Common Stock, provided, that
the grant described in this clause (a) shall not be made to any person who
served as a non-employee director of Smarterkids.com, Inc. prior to the
Effective Date, and (b) each Non-Employee Director (whether or not such person
was elected initially before or after the Effective Date) upon reelection to the
Board of Directors during the term of the Plan, shall be automatically granted
on each such date an option to purchase an additional 2,000 shares of Common
Stock (each an, "Option" and, collectively, the "Options"). The Options to be
granted under this paragraph 4 shall be the only Options granted at any time to
any Non-Employee Director (each an "Optionee" and, collectively, the
"Optionees") under the Plan. The number of shares covered by Options granted
under this paragraph 4 shall be subject to adjustment pursuant to paragraph 10
of the Plan. Notwithstanding anything to the contrary set forth herein, if the
Plan is not approved by a majority of the Company's stockholders present, or
represented, and voting on such matter at the first meeting of stockholders of
the Company following the Effective Date,
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then the Plan and the Options granted pursuant to this Section 4 shall terminate
and become void, and no further Options shall be granted under the Plan.

                5. Option Price. The purchase price of the shares of stock
covered by an Option granted pursuant to the Plan shall be 100% of the fair
market value of such shares (the "Exercise Price") on the day the Option is
granted (the "Grant Date"), subject to adjustments pursuant to paragraph 10 of
the Plan. For purposes of the Plan, if, at the time an option is granted under
the Plan, the Company's Common Stock is publicly traded, "fair market value"
shall be determined as of the last business day for which the prices or quotes
discussed in this sentence are available prior to the Grant Date and shall mean
(i) the average (on that date) of the high and low prices of the Common Stock on
the principal national securities exchange on which the Common Stock is traded,
if the Common Stock is then traded on a national securities exchange; or (ii)
the last reported sale price (on that date) of the Common Stock on the Nasdaq
National Market, if the Common Stock is not then traded on a national securities
exchange; or (iii) the closing bid price (or average of bid prices) last quoted
(on that date) by an established quotation service for over- the-counter
securities, if the Common Stock is not traded on the Nasdaq National Market.
However, if the Common Stock is not publicly traded at the time an option is
granted under the Plan, "fair market value" shall be deemed to be the fair value
of the Common Stock as determined by the Committee after taking into
consideration all factors which it deems appropriate, including, without
limitation, recent sale and offer prices of the Common Stock in private
transactions negotiated at arm's length.

                6. Period of Option. Unless sooner terminated in accordance with
the provisions of paragraph 8 of the Plan, an Option granted hereunder shall
expire on the date which is ten (10) years after the date of grant of the
Option.

                7. Vesting of Shares and Non-Transferability of Options.

                        (a) Vesting of Shares. Subject to paragraphs 8 and 10 of
        the Plan, Options held by each Optionee shall vest and become
        exercisable in accordance with the following schedule, provided that the
        Optionee has continuously served as a member of the Board through the
        following vesting dates:

<TABLE>
<CAPTION>
        Percentage                               Date of Vesting
        ----------                               ---------------
<S>                                              <C>
        33 1/3%                                  One year from the date of grant
        66 2/3%                                  Two years from the date of grant
        100%                                     Three years from the date of grant
</TABLE>

        The number of shares as to which Options may be exercised shall be
        cumulative, so that once the Option becomes exercisable as to any shares
        it shall continue to be exercisable as to such shares, until expiration
        or termination of the Option as provided in the Plan.

                        (b) Non-transferability. Any Option granted pursuant to
        the Plan shall not be assignable or transferable other than by will or
        the laws of descent and distribution or

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        pursuant to a domestic relations order and, subject to this paragraph
        7(b), shall only be exercisable during the Optionee's lifetime.

                8. Termination of Option Rights.

                        (a) In the event an Optionee ceases to be a member of
        the Board for any reason other than death or permanent disability, any
        unexercised portion of Options granted to such Optionee shall, to the
        extent not then vested, immediately terminate and become void; any
        portion of an Option which is then vested but has not been exercised at
        the time the Optionee so ceases to be a member of the Board may be
        exercised by the Optionee within 90 days after the date the Optionee
        ceased to be a member of the Board; and all Options shall terminate
        after such 90 days have expired.

                        (b) In the event that an Optionee ceases to be a member
        of the Board by reason of his or her death or permanent disability, any
        Option granted to such Optionee shall be immediately and automatically
        accelerated and become fully vested and exercisable by the Optionee (or
        by the Optionee's personal representative, heir or legatee, in the event
        of death) until the scheduled expiration date of the Option.

                        (c) No portion of an Option may be exercised if the
        Optionee is removed from the Board of Directors for any one of the
        following reasons: (i) disloyalty, gross negligence, dishonesty or
        breach of fiduciary duty to the Company; or (ii) the commission of an
        act of embezzlement, fraud or deliberate disregard of the rules or
        policies of the Company which results in loss, damage or injury to the
        Company, whether directly or indirectly; or (iii) the unauthorized
        disclosure of any trade secret or confidential information of the
        Company; or (iv) the commission of an act which constitutes unfair
        competition with the Company, or which induces any customer of the
        Company to break a contract with the Company; or (v) any activity on
        behalf of any organization or entity which is a competitor of the
        Company, unless such conduct is approved by a majority of the members of
        the Board of Directors.

                9. Exercise of Option. Subject to the terms and conditions of
the Plan and the option agreements, an Option granted hereunder shall, to the
extent then exercisable, be exercisable in whole or in part by giving written
notice addressed to the Company at its principal office address, stating the
number of shares with respect to which the Option is being exercised,
accompanied by payment in full for such shares. Payment may be (a) in United
States dollars in cash or by check, (b) in whole or in part in shares of the
Common Stock of the Company already owned by the person or persons exercising
the Option or shares subject to the Option being exercised (subject to such
restrictions and guidelines as the Board may adopt from time to time), valued at
fair market value determined in accordance with the provisions of paragraph 5 or
(c) consistent with applicable law, through the delivery of an assignment to the
Company of a sufficient amount of the proceeds from the sale of the Common Stock
acquired upon exercise of the Option and an authorization to the broker or
selling agent to pay that amount to the Company, which sale shall be at the
Optionee's direction at the time of exercise. There shall be no such exercise at
any one time as to fewer than the lesser of one hundred (100) shares or the
total number of shares that the Optionee may exercise under his or her
respective Option. The

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Company's transfer agent shall, on behalf of the Company, prepare a certificate
or certificates representing such shares acquired pursuant to exercise of the
Option, shall register the Optionee as the owner of such shares on the books of
the Company and shall cause the fully executed certificate(s) representing such
shares to be delivered to the Optionee as soon as practicable after payment of
the Exercise Price in full. The holder of an Option shall not have any rights of
a stockholder with respect to the shares covered by the Option, except to the
extent that certificates for such shares are delivered to him or her upon the
due exercise of the Option.

                10. Adjustments Upon Changes in Capitalization and Other Events.
Upon the occurrence of any of the following events, an Optionee's rights with
respect to Options granted to him or her hereunder shall be adjusted as
hereinafter provided:

                        (a) Stock Dividends and Stock Splits. If the shares of
        Common Stock shall be subdivided or combined into a greater or smaller
        number of shares or if the Company shall issue any shares of Common
        Stock as a stock dividend on its outstanding Common Stock, the number of
        shares of Common Stock deliverable upon the exercise of Options shall be
        appropriately increased or decreased proportionately, and appropriate
        adjustments shall be made in the purchase price per share to reflect
        such subdivision, combination or stock dividend.

                        (b) Recapitalization Adjustments. In the event of a
        reorganization, recapitalization, merger, consolidation, or any other
        change in the corporate structure or shares of the Company, to the
        extent permitted by Rule 16b-3 under the Securities Exchange Act of
        1934, the Committee shall make adjustments in the number and kind of
        shares authorized by the Plan and in the number and kind of shares
        covered by the Plan, and in the Exercise Price of outstanding Options
        under the Plan necessary to maintain the proportionate interest of the
        Optionee and preserve, without exceeding, the value of such Option.
        Notwithstanding the foregoing, no such adjustment shall be made which
        would, within the meaning of any applicable provisions of the Internal
        Revenue Code of 1986, as amended, constitute a modification, extension
        or renewal of any Option or a grant of additional benefits to the holder
        of any Option.

                        (c) Issuances of Securities. 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 Exercise Price of shares subject to Options.
        No adjustments shall be made for dividends paid in cash or in property
        except as set forth in subsection (a) above.

                        (d) Adjustments. The Board shall determine the specific
        adjustments to be made under this paragraph 10 and its determination
        shall be conclusive.

                11. Restrictions on Issuance of Shares. Notwithstanding the
provisions of paragraphs 4 and 9 of the Plan, the Company shall have no
obligation to deliver any certificate or certificates upon exercise of an Option
until one of the following conditions shall be satisfied:

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                        (i) The shares subject to the Option are effectively
        registered under applicable Federal and state securities laws as now in
        force or hereafter amended; or

                        (ii) Counsel for the Company shall have given an opinion
        that the issuance of such shares is exempt from registration under
        Federal and state securities laws as now in force or hereafter amended;
        and that the Company has complied with all applicable laws and
        regulations with respect thereto, including without limitation all
        regulations required by any stock exchange upon which the Company's
        outstanding Common Stock is then listed.

                12. Legend on Certificates. The certificates representing shares
issued pursuant to the exercise of an Option granted hereunder shall include
such appropriate legends, and such written instructions to the Company's
transfer agent, as may be deemed necessary or advisable by counsel to the
Company in order to comply with the requirements of the Securities Act of 1933,
as amended (the "Securities Act") or any state securities laws.

                13. Representation of Optionee. If requested by the Company, the
Optionee shall deliver to the Company written representations and warranties
upon exercise of the Option that are necessary to show compliance with Federal
and state securities laws, including representations and warranties to the
effect that a purchase of shares under the Option is made for investment and not
with a view to their distribution (as that term is used in the Securities Act).

                14. Option Agreement. Each Option granted under the provisions
of the Plan shall be evidenced by an option agreement, which agreement shall be
duly executed and delivered on behalf of the Company and by the Optionee to whom
such Option is granted. The option agreement shall contain such terms,
provisions and conditions not inconsistent with the Plan as may be determined by
the officer executing such option agreement.

                15. Termination and Amendment of Plan. Options may no longer be
granted under the Plan after the tenth (10th) anniversary of the closing, and
the Plan shall terminate when all Options granted or to be granted hereunder are
no longer outstanding.

                (a) The Board may at any time wholly or partially amend, alter,
suspend or terminate the Plan. However, without approval of the Company's
stockholders given within twelve (12) months before or after the action by the
Board, no action of the Company's Board of Directors may, except as provided in
paragraph 10, increase the limits imposed in paragraph 2 on the maximum number
of shares which may be issued under the Plan or extend the term of the Plan
under paragraph 15.

                (b) The Board shall obtain stockholder approval of any Plan
amendment to the extent necessary and desirable to comply with applicable tax
laws.

                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 Company, which agreement must be in writing and
signed by the Optionee and the Company. Termination of the Plan shall not affect
the Committee's ability to exercise the powers granted to it hereunder with
respect to Options granted or awarded under the Plan prior to the date of such
termination.

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                16. Withholding of Income Taxes. Upon the exercise of an Option,
the Committee at its sole discretion may either require payment in cash or a
deduction from other compensation payable to each Optionee of any sums required
by federal, state or local tax law to be withheld with respect to the issuance,
vesting, exercise or payment of any Option. The Committee may also in its sole
discretion and in satisfaction of the foregoing requirement allow such Optionee
to elect to have the Company withhold shares of Common Stock otherwise issuable
under such Option (or allow the return of shares of Common Stock) having a fair
market value equal to the sums required to be withheld. Notwithstanding any
other provision of the Plan, the number of shares of Common Stock which may be
withheld upon the exercise or vesting of any right under the Plan, or which may
be repurchased from the Optionee within six months after such shares were
acquired by the Optionee from the Company, in order to satisfy the Optionee's
federal and state income and payroll tax liabilities with respect to the
exercise or vesting of the right shall be limited to the number of shares which
have a fair market value equal to the aggregate amount of such liabilities based
on the minimum statutory withholding rates for federal and state income tax and
payroll tax purposes that are applicable to such supplemental taxable income.

                17. Compliance with Regulations. It is the Company's intent that
the Plan comply in all respects with Rule 16b-3 under the Securities Exchange
Act of 1934 (or any successor or amended provision thereof) and any applicable
Securities and Exchange Commission interpretations thereof. If any provision of
the Plan is deemed not to be in compliance with Rule 16b-3, the provision shall
be null and void.

                18. Governing Law. The validity and construction of the Plan and
the instruments evidencing Options shall be governed by the laws of the state of
Delaware, without giving effect to its principles of conflicts of law thereof.

                19. Approval of Stockholders of the Company. The Plan shall be
submitted for the approval of the Company's stockholders within twelve months
after the date of the Board of Director's initial approval of the Plan.

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                                                                     EXHIBIT 4.3

                               LEARNINGSTAR CORP.

                        2001 EMPLOYEE STOCK PURCHASE PLAN

ARTICLE 1 - PURPOSE.

        This 2001 Employee Stock Purchase Plan (the "Plan") is intended to
encourage stock ownership by all eligible employees of LearningStar Corp, a
Delaware corporation, (the "Company"), and its participating subsidiaries (as
defined in Article 17) so that they may share in the growth of the Company by
acquiring or increasing their proprietary interest in the Company. The Plan is
designed to encourage eligible employees to remain in the employ of the Company
and its participating subsidiaries. The Plan is intended to constitute an
"employee stock purchase plan" within the meaning of Section 423(b) of the
Internal Revenue Code of 1986, as amended (the "Code").

ARTICLE 2 - ADMINISTRATION OF THE PLAN.

        The Plan may be administered by a committee appointed by the Board of
Directors of the Company (the "Committee"). The Committee shall consist of not
less than two members of the Company's Board of Directors. The Board of
Directors may from time to time remove members from, or add members to, the
Committee. Vacancies on the Committee, howsoever caused, shall be filled by the
Board of Directors. The Committee may select one of its members as Chairman, and
shall hold meetings at such times and places as it may determine. Acts by a
majority of the Committee, or acts reduced to or approved in writing by a
majority of the members of the Committee, shall be the valid acts of the
Committee.

        The interpretation and construction by the Committee of any provisions
of the Plan or of any option granted under it shall be final, unless otherwise
determined by the Board of Directors. The Committee may from time to time adopt
such rules and regulations for carrying out the Plan as it may deem best,
provided that any such rules and regulations shall be applied on a uniform basis
to all employees under the Plan. No member of the Board of Directors or the
Committee shall be liable for any action or determination made in good faith
with respect to the Plan or any option granted under it.

        In the event the Board of Directors fails to appoint or refrains from
appointing a Committee, the Board of Directors shall have all power and
authority to administer the Plan. In such event, the word "Committee" wherever
used herein shall be deemed to mean the Board of Directors.

ARTICLE 3 - ELIGIBLE EMPLOYEES.

        All employees of the Company or any of its participating subsidiaries
whose customary employment with the Company is more than 20 hours per week and
for more than five months in any calendar year and who have completed at least
one (1) day of employment, shall be eligible to receive options under the Plan
to purchase common stock of the Company, and all eligible employees shall have
the same rights and privileges hereunder. Persons who are eligible employees on
the first business day of any Payment Period (as defined in Article 5) shall
receive their options as of such day. Persons who become eligible employees
after any date on which options are granted under the Plan shall be granted
options on the first day of the next succeeding Payment Period on which options
are granted to eligible employees under the Plan. In no event, however, may an
employee be granted an option if such employee, immediately after the option was
granted, would be treated as owning stock possessing five percent or more of the
total combined voting power or value of all classes of stock of the Company or
of any parent corporation or

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subsidiary corporation, as the terms "parent corporation" and "subsidiary
corporation" are defined in Section 424(e) and (f) of the Code. For purposes of
determining stock ownership under this paragraph, the rules of Section 424(d) of
the Code shall apply, and stock which the employee may purchase under
outstanding options shall be treated as stock owned by the employee.

ARTICLE 4 - STOCK SUBJECT TO THE PLAN.

        The stock subject to the options under the Plan shall be shares of the
Company's authorized but unissued common stock, par value $.01 per share (the
"Common Stock"), or shares of Common Stock reacquired by the Company, including
shares purchased in the open market. The aggregate number of shares which may be
issued pursuant to the Plan is 125,000, subject to adjustment as provided in
Article 12. If any option granted under the Plan shall expire or terminate for
any reason without having been exercised in full or shall cease for any reason
to be exercisable in whole or in part, the unpurchased shares subject thereto
shall again be available under the Plan.

ARTICLE 5 - PAYMENT PERIOD AND STOCK OPTIONS.

        Payment Periods shall consist of the six-month periods commencing on
March 1 and September 1 and ending on August 31 and February 28 of each calendar
year.

        On the first business day of each Payment Period, the Company will grant
to each eligible employee who is then a participant in the Plan an option to
purchase on the last day of such Payment Period, at the Option Price hereinafter
provided for, a maximum of 2,000 shares, on condition that such employee remains
eligible to participate in the Plan throughout the remainder of such Payment
Period. The participant shall be entitled to exercise the option so granted only
to the extent of the participant's accumulated payroll deductions on the last
day of such Payment Period. If the participant's accumulated payroll deductions
on the last day of the Payment Period would enable the participant to purchase
more than 2,000 shares except for the 2,000-share limitation, the excess of the
amount of the accumulated payroll deductions over the aggregate purchase price
of the 2,000 shares shall be promptly refunded to the participant by the
Company, without interest. The Option Price per share for each Payment Period
shall be the lesser of (i) 85% of the average market price of the Common Stock
on the first business day of the Payment Period and (ii) 85% of the average
market price of the Common Stock on the first business day of the Payment
Period, in either event rounded up to the nearest cent. The foregoing limitation
on the number of shares subject to option and the Option Price shall be subject
to adjustment as provided in Article 12.

        For purposes of the Plan, the term "average market price" on any date
means (i) the average (on that date) of the high and low prices of the Common
Stock on the principal national securities exchange on which the Common Stock is
traded, if the Common Stock is then traded on a national securities exchange; or
(ii) the last reported sale price (on that date) of the Common Stock on the
Nasdaq National Market, if the Common Stock is not then traded on a national
securities exchange; or (iii) the average of the closing bid and asked prices
last quoted (on that date) by an established quotation service for
over-the-counter securities, if the Common Stock is not reported on the Nasdaq
National Market; or (iv) if the Common Stock is not publicly traded, the fair
market value of the Common Stock as determined by the Committee after taking
into consideration all factors which it deems appropriate, including, without
limitation, recent sale and offer prices of the Common Stock in private
transactions negotiated at arm's length.

        For purposes of the Plan, the term "business day" means a day on which
there is trading on the Nasdaq National Market or the aforementioned national
securities exchange, whichever is applicable

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pursuant to the preceding paragraph; and if neither is applicable, a day that is
not a Saturday, Sunday or legal holiday in the State of Delaware.

        No employee shall be granted an option which permits the employee's
right to purchase stock under the Plan, and under all other Section 423(b)
employee stock purchase plans of the Company and any parent or subsidiary
corporations, to accrue at a rate which exceeds $25,000 of fair market value of
such stock (determined on the date or dates that options on such stock were
granted) for each calendar year in which such option is outstanding at any time.
The purpose of the limitation in the preceding sentence is to comply with
Section 423(b)(8) of the Code. If the participant's accumulated payroll
deductions on the last day of the Payment Period would otherwise enable the
participant to purchase Common Stock in excess of the Section 423(b)(8)
limitation described in this paragraph, the excess of the amount of the
accumulated payroll deductions over the aggregate purchase price of the shares
actually purchased shall be promptly refunded to the participant by the Company,
without interest.

ARTICLE 6 - EXERCISE OF OPTION.

        Each eligible employee who continues to be a participant in the Plan on
the last day of a Payment Period shall be deemed to have exercised his or her
option on such date and shall be deemed to have purchased from the Company such
number of full shares of Common Stock reserved for the purpose of the Plan as
the participant's accumulated payroll deductions on such date will pay for at
the Option Price, subject to the 2,000-share limit of the option and the Section
423(b)(8) limitation described in Article 5. If the individual is not a
participant on the last day of a Payment Period, then he or she shall not be
entitled to exercise his or her option. Only full shares of Common Stock may be
purchased under the Plan. Unused payroll deductions remaining in a participant's
account at the end of a Payment Period by reason of the inability to purchase a
fractional share shall be carried forward to the next Payment Period.

ARTICLE 7 - AUTHORIZATION FOR ENTERING THE PLAN.

        An employee may elect to enter the Plan by filling out, signing and
delivering to the Company an authorization:

                A. Stating the percentage to be deducted regularly from the
        employee's pay;

                B. Authorizing the purchase of stock for the employee in each
        Payment Period in accordance with the terms of the Plan; and

                C. Specifying the exact name or names in which stock purchased
        for the employee is to be issued as provided under Article 11 hereof.

Such authorization must be received by the Company at least ten days before the
first day of the next succeeding Payment Period and shall take effect only if
the employee is an eligible employee on the first business day of such Payment
Period.

        Unless a participant files a new authorization or withdraws from the
Plan, the deductions and purchases under the authorization the participant has
on file under the Plan will continue from one Payment Period to succeeding
Payment Periods as long as the Plan remains in effect.

        The Company will accumulate and hold for each participant's account the
amounts deducted from his or her pay. No interest will be paid on these amounts.

ARTICLE 8 - MAXIMUM AMOUNT OF PAYROLL DEDUCTIONS.

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        An employee may authorize payroll deductions in an amount (expressed as
a whole percentage) not less than one percent (1%) but not more than ten percent
(10%) of the employee's total compensation, including base pay or salary and any
overtime, bonuses or commissions.

ARTICLE 9 - CHANGE IN PAYROLL DEDUCTIONS.

        Deductions may not be increased or decreased during a Payment Period.
However, a participant may withdraw in full from the Plan.

ARTICLE 10 - WITHDRAWAL FROM THE PLAN.

        A participant may withdraw from the Plan (in whole but not in part) at
any time prior to the last day of a Payment Period by delivering a withdrawal
notice to the Company.

        To re-enter the Plan, an employee who has previously withdrawn must file
a new authorization at least ten days before the first day of the next Payment
Period in which he or she wishes to participate. The employee's re-entry into
the Plan becomes effective at the beginning of such Payment Period, provided
that he or she is an eligible employee on the first business day of the Payment
Period.

ARTICLE 11 - ISSUANCE OF STOCK.

        Certificates for stock issued to participants shall be delivered as soon
as practicable after each Payment Period by the Company's transfer agent.

        Stock purchased under the Plan shall be issued only in the name of the
participant, or if the participant's authorization so specifies, in the name of
the participant and another person of legal age as joint tenants with rights of
survivorship.

ARTICLE 12 - ADJUSTMENTS.

        Upon the happening of any of the following described events, a
participant's rights under options granted under the Plan shall be adjusted as
hereinafter provided:

                A. In the event that the shares of Common Stock shall be
        subdivided or combined into a greater or smaller number of shares or if,
        upon a reorganization, split-up, liquidation, recapitalization or the
        like of the Company, the shares of Common Stock shall be exchanged for
        other securities of the Company, each participant shall be entitled,
        subject to the conditions herein stated, to purchase such number of
        shares of Common Stock or amount of other securities of the Company as
        were exchangeable for the number of shares of Common Stock that such
        participant would have been entitled to purchase except for such action,
        and appropriate adjustments shall be made in the purchase price per
        share to reflect such subdivision, combination or exchange; and

                B. In the event the Company shall issue any of its shares as a
        stock dividend upon or with respect to the shares of stock of the class
        which shall at the time be subject to option hereunder, each participant
        upon exercising such an option shall be entitled to receive (for the
        purchase price paid upon such exercise) the shares as to which the
        participant is exercising his or her option and, in addition thereto (at
        no additional cost), such number of shares of the class or classes in
        which such stock dividend or dividends were declared or paid, and such
        amount of cash in lieu of fractional shares, as is equal to the number
        of shares thereof and the amount of cash in lieu of fractional shares,
        respectively, which the participant would have received if the
        participant had been the holder of the

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        shares as to which the participant is exercising his or her option at
        all times between the date of the granting of such option and the date
        of its exercise.

        Upon the happening of any of the foregoing events, the class and
aggregate number of shares set forth in Article 4 hereof which are subject to
options which have been or may be granted under the Plan and the limitations set
forth in the second paragraph of Article 5 shall also be appropriately adjusted
to reflect the events specified in paragraphs A and B above. Notwithstanding the
foregoing, any adjustments made pursuant to paragraphs A or B shall be made only
after the Committee, based on advice of counsel for the Company, determines
whether such adjustments would constitute a "modification" (as that term is
defined in Section 424 of the Code). If the Committee determines that such
adjustments would constitute a modification, it may refrain from making such
adjustments.

        If the Company is to be consolidated with or acquired by another entity
in a merger, a sale of all or substantially all of the Company's assets or
otherwise (an "Acquisition"), the Committee or the board of directors of any
entity assuming the obligations of the Company hereunder (the "Successor Board")
shall, with respect to options then outstanding under the Plan, either (i) make
appropriate provision for the continuation of such options by arranging for the
substitution on an equitable basis for the shares then subject to such options
either (a) the consideration payable with respect to the outstanding shares of
the Common Stock in connection with the Acquisition, (b) shares of stock of the
successor corporation, or a parent or subsidiary of such corporation, or (c)
such other securities as the Successor Board deems appropriate, the fair market
value of which shall not materially exceed the fair market value of the shares
of Common Stock subject to such options immediately preceding the Acquisition;
or (ii) terminate each participant's options in exchange for a cash payment
equal to the excess of (a) the fair market value on the date of the Acquisition,
of the number of shares of Common Stock that the participant's accumulated
payroll deductions as of the date of the Acquisition could purchase, at an
option price determined with reference only to the first business day of the
applicable Payment Period and subject to the 2,000-share limit, Code Section
423(b)(8) and fractional-share limitations on the amount of stock a participant
would be entitled to purchase, over (b) the result of multiplying such number of
shares by such option price.

        The Committee or Successor Board shall determine the adjustments to be
made under this Article 12, and its determination shall be conclusive.

ARTICLE 13 - NO TRANSFER OR ASSIGNMENT OF EMPLOYEE'S RIGHTS.

        An option granted under the Plan may not be transferred or assigned and
may be exercised only by the participant.

ARTICLE 14 - TERMINATION OF EMPLOYEE'S RIGHTS.

        Whenever a participant ceases to be an eligible employee because of
retirement, voluntary or involuntary termination, resignation, layoff,
discharge, death or for any other reason, his or her rights under the Plan shall
immediately terminate, and the Company shall promptly refund, without interest,
the entire balance of his or her payroll deduction account under the Plan.
Notwithstanding the foregoing, eligible employment shall be treated as
continuing intact while a participant is on military leave, sick leave or other
bona fide leave of absence, for up to 90 days, or for so long as the
participant's right to re-employment is guaranteed either by statute or by
contract, if longer than 90 days.

        If a participant's payroll deductions are interrupted by any legal
process, a withdrawal notice will be considered as having been received from the
participant on the day the interruption occurs.

ARTICLE 15 - TERMINATION AND AMENDMENTS TO PLAN.

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<PAGE>   6

        Unless terminated sooner as provided below, the Plan shall terminate on
April 30, 2011. The Plan may be terminated at any time by the Company's Board of
Directors but such termination shall not affect options then outstanding under
the Plan. It will terminate in any case when all or substantially all of the
unissued shares of stock reserved for the purposes of the Plan have been
purchased. If at any time shares of stock reserved for the purpose of the Plan
remain available for purchase but not in sufficient number to satisfy all then
unfilled purchase requirements, the available shares shall be apportioned among
participants in proportion to the amount of payroll deductions accumulated on
behalf of each participant that would otherwise be used to purchase stock, and
the Plan shall terminate. Upon such termination or any other termination of the
Plan, all payroll deductions not used to purchase stock will be refunded,
without interest.

        The Committee or the Company's Board of Directors may at any time wholly
or partially amend, alter or suspend the Plan. However, without approval of the
Company's shareholders given within twelve (12) months before or after the
action by the Board, no action of the Committee or the Company's Board of
Directors may, except as provided in paragraph 12, increase the limits imposed
in paragraph 4 on the maximum number of shares which may be issued under the
Plan or extend the term of the Plan under paragraph 15.

        The Company's Board of Directors shall obtain shareholder approval of
any Plan amendment to the extent necessary and desirable to comply with
applicable tax laws.

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

ARTICLE 16 - LIMITS ON SALE OF STOCK PURCHASED UNDER THE PLAN.

        The Plan is intended to provide shares of Common Stock for investment
and not for resale. The Company does not, however, intend to restrict or
influence any employee in the conduct of his or her own affairs. An employee
may, therefore, sell stock purchased under the Plan at any time the employee
chooses, subject to compliance with any applicable federal or state securities
laws and subject to any restrictions imposed under Article 21 to ensure that tax
withholding obligations are satisfied. THE EMPLOYEE ASSUMES THE RISK OF ANY
MARKET FLUCTUATIONS IN THE PRICE OF THE STOCK. ARTICLE 17 - PARTICIPATING
SUBSIDIARIES.

        The term "participating subsidiary" shall mean any present or future
subsidiary of the Company, as that term is defined in Section 424(f) of the
Code, which is designated from time to time by the Board of Directors to
participate in the Plan. The Board of Directors shall have the power to make
such designation before or after the Plan is approved by the stockholders.

ARTICLE 18 - OPTIONEES NOT STOCKHOLDERS.

        Neither the granting of an option to an employee nor the deductions from
his or her pay shall constitute such employee as a stockholder of the shares
covered by an option until such shares have been actually purchased by the
employee.

ARTICLE 19 - APPLICATION OF FUNDS.

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<PAGE>   7

        The proceeds received by the Company from the sale of Common Stock
pursuant to options granted under the Plan will be used for general corporate
purposes.

ARTICLE 20 - NOTICE TO COMPANY OF DISQUALIFYING DISPOSITION.

        By electing to participate in the Plan, each participant agrees to
notify the Company in writing immediately after the participant transfers Common
Stock acquired under the Plan, if such transfer occurs within two years after
the first business day of the Payment Period in which such Common Stock was
acquired. Each participant further agrees to provide any information about such
a transfer as may be requested by the Company or any subsidiary corporation in
order to assist it in complying with the tax laws. Such dispositions generally
are treated as "disqualifying dispositions" under Sections 421 and 424 of the
Code, which have certain tax consequences to participants and to the Company and
its participating subsidiaries.

ARTICLE 21 - WITHHOLDING OF ADDITIONAL INCOME TAXES.

        By electing to participate in the Plan, each participant acknowledges
that the Company and its participating subsidiaries are required to withhold
taxes with respect to the amounts deducted from the participant's compensation
and accumulated for the benefit of the participant under the Plan, and each
participant agrees that the Company and its participating subsidiaries may
deduct additional amounts from the participant's compensation, when amounts are
added to the participant's account, used to purchase Common Stock or refunded,
in order to satisfy such withholding obligations. Each participant further
acknowledges that when Common Stock is purchased under the Plan the Company and
its participating subsidiaries may be required to withhold taxes with respect to
all or a portion of the difference between the fair market value of the Common
Stock purchased and its purchase price, and each participant agrees that such
taxes may be withheld from compensation otherwise payable to such participant.
It is intended that tax withholding will be accomplished in such a manner that
the full amount of payroll deductions elected by the participant under Article 7
will be used to purchase Common Stock. However, if amounts sufficient to satisfy
applicable tax withholding obligations have not been withheld from compensation
otherwise payable to any participant, then, notwithstanding any other provision
of the Plan, the Company may withhold such taxes from the participant's
accumulated payroll deductions and apply the net amount to the purchase of
Common Stock, unless the participant pays to the Company, prior to the exercise
date, an amount sufficient to satisfy such withholding obligations. Each
participant further acknowledges that the Company and its participating
subsidiaries may be required to withhold taxes in connection with the
disposition of stock acquired under the Plan and agrees that the Company or any
participating subsidiary may take whatever action it considers appropriate to
satisfy such withholding requirements, including deducting from compensation
otherwise payable to such participant an amount sufficient to satisfy such
withholding requirements or conditioning any disposition of Common Stock by the
participant upon the payment to the Company or such subsidiary of an amount
sufficient to satisfy such withholding requirements. Notwithstanding any other
provision of the Plan, the number of shares of Common Stock which may be
withheld upon the exercise or vesting of any right under the Plan, or which may
be repurchased from the Participant within six months after such shares were
acquired by the participant from the Company, in order to satisfy the
participant's federal and state income and payroll tax liabilities with respect
to the exercise or vesting of the right shall be limited to the number of shares
which have a fair market value equal to the aggregate amount of such liabilities
based on the minimum statutory withholding rates for federal and state income
tax income and payroll tax purposes that are applicable to such supplemental
taxable income.

ARTICLE 22 - GOVERNMENTAL REGULATIONS.

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<PAGE>   8

        The Company's obligation to sell and deliver shares of Common Stock
under the Plan is subject to the approval of any governmental authority required
in connection with the authorization, issuance or sale of such shares.

        Government regulations may impose reporting or other obligations on the
Company with respect to the Plan. For example, the Company may be required to
identify shares of Common Stock issued under the Plan on its stock ownership
records and send tax information statements to employees and former employees
who transfer title to such shares.

ARTICLE 23 - GOVERNING LAW.

        The validity and construction of the Plan shall be governed by the laws
of Delaware, without giving effect to the principles of conflicts of law
thereof.

ARTICLE 24 - APPROVAL OF BOARD OF DIRECTORS AND STOCKHOLDERS OF THE COMPANY.

        The Plan was adopted by the Board of Directors on March 14, 2001 and was
approved by the stockholders of the Company on March 14, 2001.

                                       8

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