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                                                                     EXHIBIT 4.1

                               FINDWHAT.COM, INC.

                            1999 STOCK INCENTIVE PLAN
                        (AS AMENDED ON DECEMBER 15, 2003)

SECTION 1. PURPOSES; DEFINITIONS.

        The purpose of this Plan is to enable the Company to offer to its key
        employees and to key employees of its Subsidiaries and other persons who
        are expected to contribute to the success of the Company, long term
        performance-based stock and/or other equity interests in the Company,
        thereby enhancing their ability to attract, retain and reward such key
        employees or other persons, and to increase the mutuality of interest
        between those employees or other persons and the stockholders of the
        Company.

For purposes of this Plan, the following terms shall be defined as set forth
below:

        (a)     "Board" means the Board of Directors of BeFirst.com.

        (b)     "Cause" shall have the meaning ascribed thereto in Section
                5(b)(ix) below.

        (c)     "Change of Control" shall have the meaning ascribed thereto in
                Section 9 below.

        (d)     "Code" means the Internal Revenue Code of 1986, as amended from
                time to time, and any successor thereto.

        (e)     "Committee" means the Stock Incentive Committee of the Board or
                any other committee of the Board which the Board may designate.

        (f)     "Company" means BeFirst.com, a corporation organized under the
                laws of the State of Nevada.

        (g)     "Deferred Stock" means Stock to be received, under an award made
                pursuant to Section 7 below, at the end of a specified deferral
                period.

        (h)     "Disability" means disability as determined under procedures
                established by the Committee for purposes of this Plan.

        (i)     "Early Retirement" means retirement from active employment with
                the Company or any Parent or Subsidiary prior to age 65, with
                the approval of the Board or the Committee, for purposes of one
                or more award(s) under this Plan.

        (j)     "Exchange Act" means the Securities Exchange Act of 1934, as
                amended, as in effect from time to time.

        (k)     "Fair Market Value" of a share of Stock means, as of any given
                date: (i) if the Stock is listed on a national securities
                exchange or quoted on the National Association of

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                Securities Dealers, Inc. Automated Quotation System ("NASDAQ"),
                the last sale price of a share of Stock on the last preceding
                day on which the Common Stock was traded, as reported by such
                exchange or NASDAQ, or on a composite tape reflecting
                transactions on such exchange or by NASDAQ, as the case may be;
                (ii) if the Stock is not listed on a national securities
                exchange or quoted on the NASDAQ, but is traded in the
                over-the-counter market, the average of the high bid and asked
                prices for a share of Stock on the last preceding day for which
                such quotations are reported by the National Quotation Bureau,
                Inc.; and (iii) if the fair market value of a share of Stock
                cannot be determined pursuant to clause (i) or (ii) above, such
                price as the Board of Directors or the Committee, as the case
                may be, shall determine, which determination shall be conclusive
                as to the Fair Market Value of the Stock.

        (1)     "Incentive Stock Option" means any Stock Option which is
                intended to be and is designated as an "incentive stock option"
                within the meaning of Section 422 of the Code.

        (m)     "Non-Qualified Stock Option" means any Stock Option that is not
                an Incentive Stock Option.

        (n)     "Normal Retirement" means retirement from active employment with
                the Company or any Subsidiary on or after age 65.

        (o)     "Other Stock-Based Award" means an award under Section 8 below
                that is valued in whole or in part by reference to, or is
                otherwise based upon Stock.

        (p)     "Parent" means any present or future parent of the Company, as
                such term is defined in Section 424(e) of the Code, or any
                successor thereto.

        (q)     "Performance Objectives" means performance objectives adopted by
                the Committee pursuant to the Plan for key employees who have
                received awards under the Plan. With respect to any award to a
                key employee who is, or is determined by the Committee to be
                likely to become a "covered employee" within the meaning of
                Section 162(m) of the Code, the Performance Objectives shall be
                limited to specified levels of growth in or peer company
                comparisons based upon (i) appreciation in the price of Stock
                plus reinvested dividends over a specified period of time, (ii)
                return on assets or (iii) book value per share, as the Committee
                may determine, and the attainment of such Performance Objectives
                shall not be deemed to have occurred until certified by the
                Committee. Except in the case of a covered employee, if the
                Committee determines that a change in business, operations,
                corporate structure or capital structure of the Company, or the
                manner in which it conducts it business, or other events or
                circumstances under the Performance Objectives to be unsuitable,
                the Committee may modify such Performance Objectives or the
                related minimum acceptable level of achievement, in whole or in
                part, as the Committee deems appropriate.

        (r)     "Plan" means this BeFirst.com 1999 Stock Incentive Plan, as
                hereinafter amended from time to time.

        (s)     Restricted Stock' means Stock, received under an award made
                pursuant to Section 6 below, that is subject to restrictions
                imposed pursuant to said Section 6.

        (t)     "Retirement" means Normal Retirement or Early Retirement.
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            (u)   "Rule 16b-3" means Rule 16b-3 of the General Rules and
                  Regulations under the Exchange Act, as in effect from time to
                  time, and any successor thereto.

            (v)   "Section 162(m)" means Section 162(m) of the Code, as in
                  effect from time to time, and any successor thereto.

            (w)   "Securities Act" means the Securities Act of 1933, as amended,
                  as in effect from time to time.

            (x)   "Stock" means the Common Stock of the Company, par value $.001
                  per share.

            (y)   "Stock Option" or "Option" means any option to purchase shares
                  of Stock which is granted pursuant to the Plan.

            (z)   "Subsidiary" means any present or future (A) subsidiary
                  corporation of the Company, as such term is defined in Section
                  424(f) of the Code, or (B) unincorporated business entity in
                  which the Company owns, directly or indirectly, 50% or more of
                  the voting rights, capital or profits.

SECTION 2.  ADMINISTRATION.

         The Plan shall be administered by the Board, or at its discretion, the
Committee, the membership of which shall consist solely of two more members of
the Board, each of whom shall serve at the pleasure of the Board and shall be a
"Non-Employee Director," as defined in Rule l6b-3, and an "outside director," as
defined in Section 162(m) of the Code, and shall be at all times constituted so
as not to adversely affect the compliance of the Plan with the requirements of
Rule 16b-3 or with the requirements of any other applicable law, rule or
regulation.

         The Board or the Committee, as the case may be, shall have the
authority to grant, pursuant to the terms of the Plan, to officers and other key
employees or other persons eligible under Section 4 below: (i) Stock Options,
(ii) Restricted Stock, (iii) Deferred Stock and/or (iv) Other Stock-Based
Awards.

         For purposes of illustration and not of limitation, the Board or the
         Committee, as the case may be, shall have the authority (subject to the
         express provisions of this Plan):

                  (i)   to select the officers and other key employees of the
                        Company or any Parent or Subsidiary and other persons to
                        whom Stock Options, Restricted Stock, Deferred Stock
                        and/or Other Stock-Based Awards may be from time to time
                        granted hereunder;

                  (ii)  to determine the Incentive Stock Options, Non-Qualified
                        Stock Options, Restricted Stock, Deferred Stock and/or
                        Other Stock-Based Awards, or any combination thereof, if
                        any, to be granted hereunder to one or more eligible
                        persons;

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

                  (iv)  to determine the terms and conditions, not inconsistent
                        with the terms of the Plan, of any award granted
                        hereunder (including, but not limited to, share price,
                        any

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                        restrictions or limitations, and any vesting
                        acceleration, exercisability and/or forfeiture
                        provisions);

                  (v)   to determine the terms and conditions under which awards
                        granted hereunder are to operate on a tandem basis
                        and/or in conjunction with or apart from other awards
                        made by the Company or any Parent or Subsidiary outside
                        of this Plan;

                  (vi)  to determine the extent and circumstances under which
                        Stock and other amounts payable with respect to an award
                        hereunder shall be deferred; and

                  (vii) to substitute (A) new Stock Options for previously
                        granted Stock Options, including previously granted
                        Stock Options which have higher option exercise prices
                        and/or containing other less favorable terms, and (B)
                        new awards of any other type for previously granted
                        awards of the same type, including previously granted
                        awards which contain less favorable terms.

         Subject to Section 10 hereof, The Board or the Committee, as the case
may be, shall have the authority to (i) adopt, alter and repeal such
administrative rules, guidelines and practices governing this Plan as it shall,
from time to time, deem advisable, (ii) interpret the terms and provisions of
this Plan and any award issued under this Plan (and to determine the form and
substance of all agreements relating thereto), and (iii) to otherwise supervise
the administration of the Plan.

         Subject to the express provisions of the Plan, all decisions made by
         the Board or the Committee, as the case may be, pursuant to the
         provisions of the Plan shall be made in the Board or the Committee's
         sole and absolute discretion and shall be final and binding upon all
         persons, including the Company, its Parent and Subsidiaries and the
         Plan participants.

SECTION 3.  STOCK SUBJECT TO PLAN.

         The total number of shares of Stock reserved and available for
distribution under this Plan shall be 6,200,000 shares. Such shares may consist,
in whole or in part, of authorized and unissued shares or treasury shares.

         If any shares of Stock that have been optioned cease to be subject to a
Stock Option for any reason, or if any shares of Stock that are subject to any
Restricted Stock award, Deferred Stock award or Other Stock-Based Award are
forfeited or any such award otherwise terminates without the issuance of such
shares, such shares shall again be available for distribution under the Plan.

         In the event of any merger, reorganization, consolidation,
recapitalization, stock dividend, stock split, extraordinary distribution with
respect to the Stock or other change in corporate structure affecting the Stock,
such substitutions or adjustments shall be made in the (A) aggregate number and
kind of shares reserved for issuance under this Plan, (B) number, kind and
exercise price of shares of Stock subject to outstanding Options granted under
this Plan, and (C) number, kind, purchase price and/or appreciation base of
shares of Stock subject to other outstanding awards granted under this Plan, as
may be determined to be appropriate by the Board or the Committee, as the case
may be, in its sole discretion, in order to prevent dilution or enlargement of
rights; provided, however, that the number of shares subject to any award shall
always be a whole number. Such adjusted exercise price shall also be used to
determine the amount which is payable to the optionee upon the exercise by the
Board or the Committee, as the case may be, of the alternative settlement right
which is set forth in Section 5(b)(xi) below.
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      Subject to the provisions of the immediately preceding paragraph, the
maximum numbers of shares subject to Options Restricted Stock awards, Deferred
Stock other Stock-Based awards to any employee who is employed by the Company or
any Parent or Subsidiary on the last day of any taxable year of the Company,
shall be 1,000,000 shares during the term of the Plan.

SECTION 4.  ELIGIBILITY.

      Officers and other key employees of the Company or any Parent or
Subsidiary (but excluding any person whose eligibility would adversely affect
the compliance of the Plan with the requirements of Rule 16b-3) who are at the
time of the grant of an award under this Plan employed by the Company or any
Parent or Subsidiary and who are responsible for or contribute to the
management, growth and/or profitability of the business of the Company or any
Parent or Subsidiary, are eligible to be granted Options and awards under this
Plan. In addition, Non-Qualified Stock Options may be granted under the Plan to
any person, including, but not limited to, independent agents, consultants and
attorneys who the Board or the Committee, as the case may be, believes has
contributed or will contribute to the success of the Company. Eligibility under
the Plan shall be determined by the Board or the Committee, as the case may be.

      The grants of Restricted Stock, Deferred Stock and Other Stock-Based
Awards under this Plan shall be earned by a participant on the basis of the
Company's financial performance over the period or periods for which the grants
were awarded on the basis of pre-established performance goals determined by the
Board or the Committee, as the case may be, in its sole discretion. The
performance measurement criteria used for such grants shall be limited to one or
more of: earnings per share, return on stockholders' equity, return on assets,
growth in earnings, growth in sales revenue, and stockholder returns. Such
criteria may be measured by the Company's results or the Company's performance
as measured against a group of comparable companies selected by the Committee.
In applying such criteria, earnings may be calculated based on the exclusion of
discontinued operations and extraordinary items. The Board or the Committee, as
the case may be, may, in its sole discretion, include additional conditions and
restrictions in the agreement entered into in connection with awards under this
Plan.

SECTION 5.  STOCK OPTIONS.

      (a)   GRANT AND EXERCISE. Stock Options granted under this Plan may be of
            two types: (i) Incentive Stock Options and (ii) Non-Qualified Stock
            Options. Any Stock Option granted under this Plan shall contain such
            terms as the Board or the Committee, as the case may be, may from
            time to time approve. The Board or the Committee, as the case may
            be, shall have the authority to grant to any optionee Incentive
            Stock Options, Non-Qualified Stock Options, or both types of Stock
            Options, and they may be granted alone or in addition to other
            awards granted under this Plan. To the extent that any Stock Option
            is not designated as an Incentive Stock Option or does not qualify
            as an Incentive Stock Option, it shall constitute a Non-Qualified
            Stock Option. The grant of an Option shall be deemed to have
            occurred on the date on which the Board or the Committee, as the
            case may be, by resolution, designates an individual as a grantee
            thereof, and determines the number of shares of Stock subject to,
            and the terms and conditions of, said Option.

            Anything in this Plan to the contrary notwithstanding, no term of
            this Plan relating to Incentive Stock Options or any agreement
            providing for Incentive Stock Options shall be interpreted, amended
            or altered, nor shall any discretion or authority granted under the
            Plan be exercised, so as to disqualify this Plan under Section 422
            of the Code, or, without the consent of the Optionee(s) affected, to
            disqualify any Incentive Stock Option under Section 422.

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      (b)   TERMS AND CONDITIONS. Stock Options granted under this Plan shall be
            subject to the following terms and conditions:

            (i)   OPTION PRICE. The option price per share of Stock purchasable
                  under a Stock Option shall be determined by the Board or the
                  Committee, as the case may be, at the time of grant but shall
                  be not less than 100% (110% in the case of an Incentive Stock
                  Option granted to an optionee ("10% Stockholder") who, at the
                  time of grant, owns Stock possessing more than 10% of the
                  total combined voting power of all classes of stock of the
                  Company or its Parent, if any, or its Subsidiaries) of the
                  Fair Market Value of the Stock at the time of grant.

            (ii)  OPTION TERM. The term of each Stock Option shall be fixed by
                  the Board or the Committee, as the case may be, but no
                  Incentive Stock Option shall be exercisable more than ten
                  years (five years, in the, case of an Incentive Stock Option
                  granted to a 10% Stockholder) after the date on which the
                  Option is granted.

            (iii) EXERCISABILITY. Stock Options shall be exercisable at such
                  time or times and subject to such terms and conditions as
                  shall be determined by the Board or the Committee, as the case
                  may be, at the time of grant; provided, however, that except
                  as otherwise provided in this Section 5 and Section 9 below,
                  unless waived by the Board or the Committee, as the case may
                  be, at or after the time of grant, no Stock Option shall be
                  exercisable prior to the first anniversary date of the grant
                  of the Option. If the Board or the Committee, as the case may
                  be, provides, in its discretion, that any Stock Option is
                  exercisable only in installments, the Board or the Committee,
                  as the case may be, may waive such installment exercise
                  provisions at any time at or after the time of grant in whole
                  or in part, based upon such factors as the Board or the
                  Committee, as the case may be, shall determine.

            (iv)  METHOD OF EXERCISE. Subject to whatever installment, exercise
                  and waiting period provisions are applicable in a particular
                  case, Stock Options may be exercised in whole or in part at
                  any time during the option period by giving written notice of
                  exercise to the Company specifying the number of shares of
                  Stock to be purchased. Such notice shall be accompanied by
                  payment in full of the purchase price which shall be in cash
                  unless otherwise provided in this clause (iv) or in Section
                  5(b)(xi) below or, unless otherwise provided in the Stock
                  Option agreement referred to in Section 5(b)(xii) below, in
                  whole shares of Stock which are already owned by the holder of
                  the Option or unless otherwise provided in the Stock Option
                  agreement referred to in Section 5(b)(xii) below, partly in
                  cash and partly in such Stock, Cash payments shall be made by
                  wire transfer, certified or bank check or personal check, in
                  each case payable to the order of the Company; provided,
                  however, that the Company shall not be required to deliver
                  certificates for shares of Stock with respect to which an
                  Option is exercised until the Company has confirmed the
                  receipt of good and available funds in payment of the purchase
                  price thereof. Payments in the form of Stock (which shall be
                  valued at the Fair Market Value of a share of Stock on the
                  date of exercise) shall be made by delivery of stock
                  certificates in negotiable form which are effective to
                  transfer good and valid title thereto to the Company, free of
                  any liens or encumbrances. In addition to the foregoing,
                  payment of the

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                  exercise price may be made by delivery to the Company by the
                  optionee of an executed exercise form, together with
                  irrevocable instructions to a broker-dealer to sell or margin
                  a sufficient portion of the shares covered by the option and
                  deliver the sale or margin loan proceeds directly to the
                  Company. Except as otherwise expressly provided in this Plan,
                  no Option which is granted to a person who is at the time of
                  grant an employee of the Company or a Subsidiary or Parent of
                  the Company may be exercised at any time unless the holder
                  thereof is then an employee of the Company or of a Parent or a
                  Subsidiary. The holder of an Option shall have none of the
                  rights of a stockholder with respect to the shares subject to
                  the Option until the optionee has given written notice of
                  exercise, has paid in full for those shares of Stock and, if
                  requested by the Board or Committee, as the case may be, has
                  given the representation described in Section 12(a) below.

            (v)   TRANSFERABILITY; EXERCISABILITY. No Stock Option shall be
                  transferable by the optionee other than by will or by the laws
                  of descent and distribution; provided, however, that a
                  Non-Qualified Stock Option shall be transferable pursuant to a
                  qualified domestic relations order, and except as may be
                  otherwise required with respect to a Non-Qualified Option
                  pursuant to a qualified domestic relations order, all Stock
                  Options shall be exercisable, during the optionee's lifetime,
                  only by the optionee or his or her guardian or legal
                  representative.

            (vi)  TERMINATION BY REASON OF DEATH. Subject to Section 5(b)(x)
                  below, if an optionee's employment by the Company or any
                  Parent or Subsidiary terminates by reason of death, any Stock
                  Option held by such optionee may thereafter be exercised, to
                  the extent then exercisable or on such accelerated basis as
                  the Board or Committee, as the case may be, may determine at
                  or after the time of grant, for a period of one year (or such
                  other period as the Board or the Committee, as the case may
                  be, may specify at or after the time of grant) from the date
                  of death or until the expiration of the stated term of such
                  Stock Option, whichever period is the shorter.

            (vii) TERMINATION BY REASON OF DISABILITY. Subject to Section
                  5(b)(x) below, if an optionee's employment by the Company or
                  any Subsidiary terminates by reason of Disability, any Stock
                  Option held by such optionee may thereafter be exercised by
                  the optionee, to the extent it was exercisable at the time of
                  termination or on such accelerated basis as the Board or the
                  Committee, as the case may be, may determine at or after the
                  time of grant, for a period of three years (or such other
                  period as the Board or the Committee, as the case may be, may
                  specify at or after the time of grant) from the date of such
                  termination of employment or until the expiration of the
                  stated term of such Stock Option, whichever period is the
                  shorter; provided, however, that if the optionee dies within
                  such three-year period (or such other period as the Board or
                  the Committee, as the case may be, shall specify at or after
                  the time of grant), any unexercised Stock Option held by such
                  optionee shall thereafter be exercisable to the extent to
                  which it was exercisable at the time of death for a period of
                  one year from the date of death or until the expiration of the
                  stated term of such Stock Option, whichever period is the
                  shorter.

            (viii) TERMINATION BY REASON OF RETIREMENT. Subject to Section
                  5(b)(x) below, if an optionee's employment by the Company or
                  any Parent or Subsidiary terminates

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                  by reason of Normal Retirement, any Stock Option held by such
                  optionee may thereafter be exercised by the optionee, to the
                  extent it was exercisable at the time of termination or on
                  such accelerated basis as the Board or the Committee, as the
                  case may be, may determine at or after the time of grant, for
                  a period of three years (or such other period as the Board or
                  the Committee, as the case may be, may specify at or after the
                  time of grant) from the date of such termination of employment
                  or the expiration of the stated terms of such Stock Option,
                  whichever period is the shorter; provided, however, that if
                  the optionee dies within such three-year period (or such other
                  period as the Board or the Committee, as the case may be,
                  shall specify at or after the time of grant), any unexercised
                  Stock Option held by such optionee shall thereafter be
                  exercisable to the extent to which it was exercisable at the
                  time of death for a period of one year from the date of death
                  or until the expiration of the stated terms of such Stock
                  Option, whichever period is the shorter. If an optionee's
                  employment with the Company or any Parent or Subsidiary
                  terminates by reason of Early Retirement, the Stock Option
                  shall thereupon terminate; provided, however, that if the
                  Board or the Committee, as the case may be, so approves at the
                  time of Early Retirement, any Stock Option held by the
                  optionee may thereafter be exercised by the optionee as
                  provided above in connection with termination of employment by
                  reason of Normal Retirement.

            (ix)  OTHER TERMINATION. Subject to the provisions of Section 12(g)
                  below and unless otherwise determined by the Committee at or
                  after the time of grant, if an optionee's employment by the
                  Company or any Parent or Subsidiary terminates for any reason
                  other than death, Disability or Retirement, the Stock Option
                  shall thereupon automatically terminate, except that if the
                  optionee is involuntarily terminated by the Company or any
                  Parent or a Subsidiary without cause (as hereinafter defined)
                  such Stock Option may be exercised for a period of six months
                  from the date of such termination or until the expiration of
                  the stated terms of such Stock Option, whichever period is the
                  shorter. For purposes of this Plan, "Cause" shall mean (1) the
                  conviction of the optioned of a felony under Federal law or
                  the law of the state in which such action occurred, (2)
                  dishonesty by the optionee in the course of fulfilling his or
                  her employment duties, or (3) the willful and deliberate
                  failure on the part of the optionee to perform his or her
                  employment duties in any material-respect. In addition, with
                  respect to an option granted to an employee of the Company, a
                  Parent or a Subsidiary, for purposes of this Plan, "Cause"
                  shall also include any definition of "Cause" contained in any
                  employment agreement between the optionee and the Company,
                  Parent or Subsidiary, as the case may be.

            (x)   ADDITIONAL INCENTIVE STOCK OPTION LIMITATION. In the case of
                  an Incentive Stock Option, the aggregate Fair Market Value of
                  Stock (determined at the time of grant of the Option) with
                  respect to which Incentive Stock Options are exercisable for
                  the first time by an optionee during any calendar year (under
                  all such plans of optionee's employer corporation and its
                  Parent, if any, and Subsidiaries) shall not exceed $100,000.

            (xi)  ALTERNATIVE SETTLEMENT OF OPTION. Upon the receipt of written
                  notice of exercise, the Board or the Committee, as the case
                  may be, may elect to settle all or part of any Stock Option by
                  paying to the optionees an amount, in cash or Stock (valued at
                  Fair Market Value on the date of exercise), equal to the
                  excess

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                  of the Fair Market Value of one share of Stock, on the date of
                  exercise over the Option exercise price, multiplied by the
                  number of shares of Stock with respect to which the optionee
                  proposes to exercise the Option. Any such settlements which
                  relate to Options which are held by optionees who are subject
                  to Section 16(b) of the Exchange Act shall comply with the
                  "window period" provisions of Rule 16b-3, to the extent
                  applicable and with such other conditions as the Board or
                  Committee may impose. No such discretion may be exercised
                  unless the option agreement permits the payment of the
                  purchase price in that manner.

            (xii) STOCK OPTION AGREEMENT. Each grant of a Stock Option shall be
                  confirmed by, and shall be subject to the terms of, an
                  agreement executed by the Company and the participant.

SECTION 6.  RESTRICTED STOCK.

      (a)   GRANT AND EXERCISE. Shares of Restricted Stock may be issued either
            alone or in addition to or in tandem with other awards granted under
            this Plan. The Board or the Committee, as the case may be, shall
            determine the eligible persons to whom, and the time or times at
            which, grants of Restricted Stock will be made, the number of shares
            to be awarded, the price (if any) to be paid by the recipient, the
            time or times within which such awards may be subject to forfeiture
            (the "Restriction Period"), the vesting schedule and rights to
            acceleration thereof, and all other terms and conditions of the
            awards. The Board or the Committee, as the case may be, may
            condition the grant of Restricted Stock upon the attainment of
            specified Performance Objectives or such other factors as the Board
            or the Committee, as the case may be, may determine.

      (b)   TERMS AND CONDITIONS. Each Restricted Stock award shall be subject
            to the following terms and conditions:

            (i)   Restricted Stock, when issued, will be represented by a stock
                  certificate or certificates registered in the name of the
                  holder to whom such Restricted Stock shall have been awarded.
                  During the Restriction Period, certificates representing the
                  Restricted Stock and any securities constituting Retained
                  Distributions (as defined below) shall bear a restrictive
                  legend to the effect that ownership of the Restricted Stock
                  (and such Retained Distributions), and the enjoyment of all
                  rights appurtenant thereto, are subject to the restrictions,
                  terms and conditions provided in this Plan and the Restricted
                  Stock agreement referred to in Section 6(b)(iv) below. Such
                  certificates shall be deposited by the holder with the
                  Company, together with stock powers or other instruments of
                  assignment, endorsed in blank, which will permit transfer to
                  the Company of all or any portion of the Restricted Stock and
                  any securities constituting Retained Distributions that shall
                  be forfeited or that shall not become vested in accordance
                  with this Plan and the applicable Restricted Stock agreement.

            (ii)  Restricted Stock shall constitute issued and outstanding
                  shares of Common Stock for all corporate purposes, and the
                  issuance thereof shall be made for at least the minimum
                  consideration (if necessary) to permit the shares of
                  Restricted Stock to be deemed to be fully paid and
                  nonassessable. The holder will have the right to vote such
                  Restricted Stock, to receive and retain all regular cash
                  dividends and other cash equivalent distributions as the Board
                  may in its sole discretion designate, pay or distribute on
                  such Restricted Stock and to exercise all other

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                  rights, powers and privileges of a holder of Stock with
                  respect to such Restricted Stock, with the exceptions that (A)
                  the holder will not be entitled to delivery of the stock
                  certificate or certificates representing such Restricted Stock
                  until the Restriction Period shall have expired and unless all
                  other vesting requirements with respect thereto shall have
                  been fulfilled; (B) the Company will retain custody of the
                  stock certificate or certificates representing the Restricted
                  Stock during the Restriction Period; (C) other than regular
                  cash dividends and other cash equivalent distribution as the
                  Board may in its sole discretion designate, pay or distribute,
                  the Company will retain custody of all distributions
                  ("Retained Distributions") made or declared with respect to
                  the Restricted Stock (and such Retained Distributions will be
                  subject to the same restrictions, terms and conditions as are
                  applicable to the Restricted Stock) until such time, if ever,
                  as the Restricted Stock with respect to which such Retained
                  Distributions shall have been made, paid or declared shall
                  have become vested and with respect to which the Restriction
                  Period shall have expired; (D) the holder may not sell,
                  assign, transfer, pledge, exchange, encumber or dispose of the
                  Restricted Stock or any Retained Distributions during the
                  Restriction Period; and (E) a breach of any of the
                  restrictions, terms or conditions contained in this Plan or
                  the Restricted Stock agreement referred to in Section 6(b)(iv)
                  below, or otherwise established by the Committee with respect
                  to any Restricted Stock and Retained Distributions will cause
                  a forfeiture of such Restricted Stock and any Retained
                  Distributions with respect thereto.

            (iii) Upon the expiration of the Restriction Period with respect to
                  each award of Restricted Stock and the satisfaction of any
                  other applicable restrictions, terms and conditions (A) all or
                  part of such Restricted Stock shall become vested in
                  accordance with the terms of the Restricted Stock agreement
                  referred to in Section 6(b)(iv) below, and (B) any Retained
                  Distributions with respect to such Restricted Stock shall
                  become vested to the extent that the Restricted Stock related
                  thereto shall have become vested. Any such Restricted Stock
                  and Retained Distributions that do not vest shall be forfeited
                  to the Company and the holder shall not thereafter have any
                  rights with respect to such Restricted Stock and Retained
                  Distributions that shall have been so forfeited.

            (iv)  Each Restricted Stock award shall be confirmed by, and shall
                  be subject to the terms of, an agreement executed by the
                  Company and the participant.

SECTION 7.  DEFERRED STOCK.

      (a)   GRANT AND EXERCISE. Deferred Stock may be awarded either alone or in
            addition to or in tandem with other awards granted under the Plan.
            The Board or the Committee, as the case may be, shall determine the
            eligible persons to whom and the time or times at which Deferred
            Stock shall be awarded, the number of shares of Deferred Stock to be
            awarded to any person, the duration of the period (the "Deferral
            Period") during which, and the conditions under which, receipt of
            the Deferred Stock will be deferred, and all the other terms and
            conditions of the awards. The Board or the Committee, as the case
            may be, may condition the grant of the Deferred Stock upon the
            attainment of specified Performance Objectives or such other factors
            or criteria as the Board or the Committee, as the case may be, shall
            determine.

<PAGE>

      (b)   TERMS AND CONDITIONS. Each Deferred Stock award shall be subject to
            the following terms and conditions:

            (i)   Subject to the provisions of this Plan and Deferred Stock
                  agreement referred to in Section 7(b)(vii) below, Deferred
                  Stock awards may not be sold, assigned, transferred, pledged
                  or otherwise encumbered during the Deferral Period. At the
                  expiration of the Deferral Period (or the Additional Deferral
                  Period referred to in Section 7(b)(vi) below, where
                  applicable), share certificates shall be delivered to the
                  participant, or his legal representative, in a number equal to
                  the shares of Stock covered by the Deferred Stock award.

            (ii)  As determined by the Committee at the time of award, amounts
                  equal to any dividends declared during the Deferral Period (or
                  the Additional Deferral Period referred to in Section 7(b)(vi)
                  below, where applicable) with respect to the number of shares
                  covered by a Deferred Stock award may be paid to the
                  participant currently or deferred and deemed to be reinvested
                  in additional Deferred Stock.

            (iii) Subject to the provisions of the Deferred Stock agreement
                  referred to in Section 7(b)(vii) below and this Section 7 and
                  Section 12(g) below, upon termination of participant's
                  employment with the Company or any Subsidiary for any reason
                  during the Deferral Period (or the Additional Deferral Period
                  referred to in Section 7(b)(vi) below, where applicable) for a
                  given award, the Deferred Stock in question will vest or be
                  fortified in accordance with the terms and conditions
                  established by the Board or the Committee, as the case may be,
                  at the time of grant.

            (iv)  The Board or the Committee, as the case may be, may, after
                  grant, accelerate the vesting of all or any part of any
                  Deferred Stock award and/or waive the deferral limitations for
                  all or any part of a Deferred Stock award.

            (v)   In the event of hardship or other special circumstances of a
                  participant whose employment with the Company or any Parent or
                  Subsidiary is involuntarily terminated (other than for Cause),
                  the Board or the Committee, as the case may be, may waive in
                  whole or in part any or all of the remaining deferral
                  limitations imposed hereunder or pursuant to the Deferred
                  Stock agreement referred to in Section 7(b)(vii) below with
                  respect to any or all of the participant's Deferred Stock.

            (vi)  A participant may request to, and the Board or the Committee,
                  as the case may be, may at any time, defer the receipt of an
                  award (or an installment of an award) for an additional
                  specified period or until a specified period or until a
                  specified event (the "Additional deferral Period"). Subject to
                  any exceptions adopted by the Board or the Committee, as the
                  case may be, such request must be made at least one year prior
                  to expiration of the Deferral Period for such Deferred Stock
                  award (or such installment).

            (vii) Each Deferred Stock award shall be confirmed by, and shall be
                  subject to the terms of, an agreement executed by the Company
                  and the participant.

<PAGE>

SECTION 8.  OTHER STOCK-BASED AWARDS.

      (a)   GRANT AND EXERCISE. Other Stock-Based Awards, which may include
            performance shares and shares valued by reference to the performance
            of the Company or any Subsidiary, may be granted either alone or in
            addition to or in tandem with Stock Options, Restricted Stock or
            Deferred Stock. The Board or the Committee, as the case may be,
            shall determine the eligible persons to whom, and the time or times
            at which, such awards shall be made, the number of shares of Stock
            to be awarded pursuant to such awards, and all other terms and
            conditions of the awards. The Board or the Committee, as the case
            may be, may also provide for the grant of Stock under such awards
            upon the attainment of specified Performance Objectives and/or
            completion of a specified performance period.

      (b)   TERMS AND CONDITIONS. Each Other Stock-Based Award shall be subject
            to the following terms and conditions:

            (i)   Shares of Stock subject to an Other Stock-Based may not be
                  sold, assigned, transferred, pledged or otherwise encumbered
                  prior to the date on which the shares are issued, or, if
                  later, the date on which any applicable restriction or period
                  of deferral lapses.

            (ii)  The recipient of Other Stock-Based Award shall be entitled to
                  receive, currently or on a deferred basis, dividends or
                  dividend equivalents with respect to the number of shares
                  covered by the award, as determined by the Board or the
                  Committee, as the case may be, at the time of the award. The
                  Board or the Committee, as the case may be, may provide that
                  such amounts (if any) shall be deemed to have been reinvested
                  in additional Stock.

            (iii) Any Other Stock-Based Award and any Stock covered by any Other
                  Stock-Based Award shall vest or be forfeited to the extent so
                  provided in the award agreement referred to in Section 8(b)(v)
                  below, as determined by the Board or the Committee, as the
                  case may be.

            (iv)  In the event of the participant's Retirement, Disability or
                  death, or in case of special circumstances, the Board or the
                  Committee, as the case may be, may waive in whole or in part
                  any or all of the limitations imposed hereunder (if any) with
                  respect to any or all of an Other Stock-Based Award.

            (v)   Each Other Stock-Based Award shall be confirmed by, and shall
                  be subject to the terms of, an agreement executed by the
                  Company and by the participant.

SECTION 9.  CHANGE OF CONTROL PROVISIONS.

      (a)   A "Change of Control" shall be deemed to have occurred on the tenth
            day after:

            (i)   any individual, entity or group (as defined in Section
                  13(d)(3) of the Exchange Act), becomes, directly or
                  indirectly, the beneficial owner (within the meaning of Rule
                  l3d-3 promulgated under the Exchange Act) of more than 25% of
                  the then outstanding shares of the Company's capital stock
                  entitled to vote generally in the election of directors of the
                  Company; or

<PAGE>

              (ii)   the commencement of, or the first public announcement of
                     the intention of any individual, firm, corporation or other
                     entity or of any group (as defined in Section 13(d)(3) of
                     the Exchange Act) to commence, a tender or exchange offer
                     subject to Section 14(d)(1) of the Exchange Act for any
                     class of the Company's capital stock; or

              (iii)  the stockholders of the Company approve (A) a definitive
                     agreement for the merger or other business combination of
                     the Company with or into another corporation pursuant to
                     which the stockholders of the Company immediately prior to
                     the transaction do not own, immediately after the
                     transaction, more than 50% of the voting power of the
                     corporation that survives, or (B) a definitive agreement
                     for the sale, exchange or other disposition of all or
                     substantially all of the assets of the Company, or (C) any
                     plan or proposal for the liquidation or dissolution of the
                     Company;

                     Provided, however, that a "Change of Control" shall not be
                     deemed to have taken place if beneficial ownership is
                     acquired (A) directly from the Company, other than an
                     acquisition by virtue of the exercise or conversion of
                     another security unless the security so converted or
                     exercised was itself acquired directly from the Company, or
                     (B) by, or a tender or exchange offer is commenced or
                     announced by, the Company, any profit-sharing, employee
                     ownership or other employee benefit plan sponsored or
                     maintained by the Company; or any trustee of or fiduciary
                     with respect to any such plan when acting in such capacity.

       (b)    In the event of a "Change of Control" as defined in Section 9(a)
              above, awards granted under this Plan shall be subject to the
              following provisions, unless the provisions of this Section 9 are
              suspended or terminated by the Board prior to the occurrence of
              such a "Change of Control":

              (i)    all outstanding Stock Options which have been outstanding
                     for at least six months shall become exercisable in full,
                     whether or not otherwise exercisable at such time, and any
                     such Stock Option shall remain exercisable in full
                     thereafter until it expires pursuant to its terms; and

              (ii)   all restrictions and deferral limitations contained in
                     Restricted Stock awards, Deferred Stock awards and Other
                     Stock-Based Awards granted under the Plan shall lapse.

SECTION 10. AMENDMENTS AND TERMINATION.

       The Board may at any time, and from time to time, amend any of the
provisions of this Plan, and may at any time suspend or terminate the Plan;
provided, however, that no such amendment shall be effective unless and until it
has been duly approved by the holders of the outstanding shares of Stock if the
failure to obtain such approval would adversely affect the compliance of the
Plan with the requirements of Rule 16b-3, Section 162(m) or any other applicable
law, rule or regulation. The Board or the Committee, as the case may be, may
amend the terms of any Stock Option or other award theretofore granted under the
Plan; provided, however, that subject to Section 3 above, no such amendment may
be made by the Board or the Committee, as the case may be, which in any material
respect impairs the rights of the optionee or participant without the optionee's
or participant's consent, except for such amendments which are made to cause
this Plan to qualify for the exemption provided by Rule 16b-3 or to be in
compliance with the provisions of Section 162(m).

<PAGE>

SECTION 11. UNFUNDED STATUS OF PLAN.

       The Plan is intended to constitute an "unfunded" plan for incentive and
deferred compensation. With respect to any payments not yet made to a
participant or optionee by the Company, nothing contained herein shall give any
such participant or optionee any rights that are greater than those creditor of
the Company.

SECTION 12. GENERAL PROVISIONS.

       (a)    The Board or the Committee, as the case may be, may require each
              person acquiring shares of Stock Option or other award under this
              Plan to represent to and agree with the Company in writing that
              the optionee or participant is acquiring the shares for investment
              without a view towards the distribution thereof.

              All certificates for shares of Stock delivered under this Plan
              shall be subject to such stop transfer orders and other
              restrictions as the Board or the Committee, as the case may be,
              may deem to be advisable in order to assure compliance with the
              rules, regulations, and other requirements of the Securities and
              Exchange Commission, any stock exchange or association upon which
              the Stock is then listed or quoted, any applicable Federal or
              state securities law, and any applicable corporate law, and the
              Board or the Committee, as the case may be, may cause a legend or
              legends to be put on any such certificates to make appropriate
              reference to such restrictions.

       (b)    Nothing contained in the Plan shall prevent the Board from
              adopting such other or additional incentive arrangements as it may
              deem desirable, including, but not limited to, the granting of
              stock options and the awarding of stock and cash otherwise than
              under this Plan; and such arrangements may be either generally
              applicable or applicable only in specific cases.

       (c)    Nothing contained in this Plan or in any award hereunder shall be
              deemed to confer upon any employee of the Company or any Parent or
              Subsidiary any right to continued employment with the Company or
              any Parent or Subsidiary, nor shall it interfere in any way with
              the right of the Company or any Parent or Subsidiary to terminate
              the employment of any of its employees at any time.

       (d)    No later than the date as of which an amount first becomes
              includable in the gross income of the participant for Federal
              income tax purposes with respect to any Option or other award
              under this Plan, the participant shall pay to the Company, or make
              arrangements satisfactory to the Board or the Committee, as the
              case may be, regarding the payment of, any Federal, state and
              local taxes of any kind required by law to be withheld or paid
              with respect to such amount. If permitted by the Board or the
              Committee, as the case may be, tax withholding or payment
              obligations may be settled with Stock, including Stock that is
              part of the award that gives rise to the withholding requirement.
              The obligations of the Company under this Plan shall be
              conditional upon such payment or arrangements, and the Company and
              any Subsidiary shall, to the extent permitted by law, have the
              right to deduct any such taxes from any payment of any kind
              otherwise due to the participant from the Company or any Parent or
              Subsidiary.

<PAGE>

       (e)    This Plan and all awards made and actions taken thereunder shall
              be governed by and construed in accordance with the laws of the
              State of Delaware (without regard to choice of law provisions).

       (f)    Any Stock Option granted or other award made under this Plan shall
              not be deemed compensation for purposes of computing benefits
              under any retirement plan of the Company or any Parent or
              Subsidiary and shall not affect any benefits under any other
              benefit plan now or subsequently in effect under which the
              availability or amount of benefits is related to the level of
              compensation (unless required by specific reference in any such
              other plan to awards under this Plan).

       (g)    A leave of absence, unless otherwise determined by the Committee
              prior to the commencement thereof, shall not be considered a
              termination of employment. Any Stock Option granted or awards made
              under this Plan shall not be affected by any change of employment,
              so long as the holder continues to be an employee of the Company
              or any Parent or Subsidiary.

       (h)    Except as otherwise expressly provided in this Plan, no right or
              benefit under this Plan may be alienated, sold, assigned,
              hypothecated, pledged, exchanged, transferred, encumbranced or
              charged, and any attempt to alienate, sell, assign, hypothecate,
              pledge, exchange, transfer, encumber or charge the same shall be
              void. No right or benefit hereunder shall in any manner be subject
              to the debts, contracts or liabilities of the person entitled to
              such benefit.

       (i)    The obligations of the Company with respect to all Stock Options
              and awards under this Plan shall, be subject to (A) all applicable
              laws, rules and regulations, and such approvals by any
              governmental agencies as may be required, including, without
              limitation, the effectiveness of a registration statement under
              the Securities Act, and (B) the rules and regulations of any
              securities exchange or association on which the Stock may be
              listed or quoted.

       (j)    It is the intention of the Company that this Plan complies with
              the requirements of Rule 16b-3, Section 162(m) and all other
              applicable laws, rules and regulations, and any ambiguities or
              inconsistencies in the construction of any of the provisions of
              this Plan shall be interpreted to give effect to such intention.
              If any of the terms or provisions of this Plan conflict with the
              requirements of Rule 16b-3, or with the requirements of Section
              162(m) or any other applicable law, rule or regulation, and with
              respect to Incentive Stock Options under Section 422 of the Code,
              then such terms or provisions shall be deemed inoperative to the
              extent they so conflict. With respect to Incentive Stock Options,
              if this Plan does not contain any provision required to be
              included herein under Section 422 of the Code, such provision
              shall be deemed to be incorporated herein with the same force and
              effect as if such provision had been set out at length herein.

       (k)    The Board or the Committee, as the case may be, may terminate any
              Stock Option or other award made under this Plan if a written
              agreement relating thereto is not executed and returned to the
              Company within 30 days after such agreement has been delivered to
              the optionee or participant for his or her execution.

       (1)    The grant of awards pursuant to this Plan shall not in any way
              effect the right or power of the Company to make
              reclassifications, reorganizations or other changes of or to its

<PAGE>

              capital or business structure or to merge, consolidate, liquidate,
              sell or otherwise dispose of all or any part of its business or
              assets.

SECTION 13. EFFECTIVE DATE OF PLAN.

       The Plan shall be effective as of the date of the approval and adoption
thereof at a meeting of the stockholders of the Company.

SECTION 14. TERM OF PLAN.

       This Plan shall terminate on the tenth anniversary of its effective date,
and no Stock Option, Restricted Stock Award, Deferred Stock award or Other
Stock-Based Award shall be granted pursuant to this Plan after said date. Awards
granted on or prior to such date may extend beyond that date.<PAGE>

                                                                   EXHIBIT 10.40

                    NOTE AND MORTGAGE MODIFICATION AGREEMENT

         This agreement made this 15th day of October 2003 by and among EDAC
Technologies Corporation, a Connecticut Corporation, having an office at 1806
New Britain Avenue, Farmington, Connecticut (hereinafter "Mortgagor") and
Farmington Savings Bank, duly authorized and existing under the laws of the
State of Connecticut and having an office at 32 Main Street, Farmington,
Connecticut (hereinafter "Mortgagee").

                                   WITNESSETH:

         WHEREAS, Mortgagor is indebted to Mortgagee in the original amount of
$2,000,000.00 as evidenced by a certain Mortgage Note dated February 5, 2001,
the "Note"; and

         WHEREAS, to secure the repayment of said Note, Mortgagor has granted to
Mortgagee a mortgage on premises located in Farmington, Connecticut, more
particularly described in the said mortgage which is dated February 5, 2001 and
recorded in Volume 644 at Page 585 of the Farmington Land Records, the
"Mortgage", a Conditional Assignment of Leases and Rentals recorded in Volume
644 at Page 601 of the Farmington Land Records, the "Conditional Assignment" and
UCC-1 Financing Statement recorded in Volume 644 at Page 608 of the Farmington
Land Records, the "Financing Statement"; and

         Whereas, the parties wish to modify said Note, Mortgage, Conditional
Assignment and Financing Statement

         NOW THEREFORE, in consideration of the mutual covenants and agreements
herein contained and for One ($1.00) Dollar and other valuable consideration the
parties agree as follows:

         1.       Interest Rate. The interest rate set forth in paragraph 3 of
                  the Note is hereby amended to be seven and one half (7.50)
                  percent per annum effective on October 1, 2003 until March 1,
                  2006, the first Change Date.

         2.       Repayment. Paragraph 3 of the Note is further amended and
                  modified to provide for repayment in equal monthly
                  installments of principal and interest, commencing on November
                  1, 2003 of Sixteen Thousand Four Hundred Twenty Three and
                  21/100ths ($16,423.21) Dollars.

         3.       Except as modified the rights, privileges, duties and
                  obligations of the parties hereto under the Note and Mortgage
                  referred to above shall remain unchanged and in full force and
                  effect.

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have set their hands and seals
         as of the day and year first written above.

Signed, sealed and delivered
In the presence of:                                MORTGAGOR
                                                   EDAC Technologies Corporation

/s/ Irene Yeski                                    /s/ Glenn L. Purple
Irene Yeski                                        Glenn L. Purple
                                                   Its  V.P. Finance
/s/ Carol S. Foley                                 Duly Authorized
Carol S. Foley

                                                   MORTGAGEE
/s/ Elizabeth J. Letendre                          Farmington Savings Bank
Elizabeth J. Letendre

/s/ Richard King                                   /s/ Bryan Bowerman
Richard King                                       By Bryan P. Bowerman
                                                   President

STATE OF CONNECTICUT          )
                              ) ss: Farmington                  October 15, 2003
COUNTY OF HARTFORD            )

         Personally appeared Glenn L. Purple, its V. P. Finance, Signer of the
foregoing instrument, and acknowledge the same to be his free act and deed, and
the free act and deed of said Company, before me.

                                                   /s/ Carol S. Foley
                                                   Notary Public

STATE OF CONNECTICUT          )
                              ) ss: Farmington                  October 16 2003

COUNTY OF HARTFORD            )

         Personally appeared, Bryan P. Bowerman, President of Farmington Savings
Bank, Signer of the foregoing instrument, and acknowledge the same to be his
free act and deed as such officer, and the free act and deed of said Bank,
before me.

                                                   /s/ Elizabeth J. Letendre
                                                   Notary Public

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