Document:

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                                                                    EXHIBIT 10.2

                                AUTONATION, INC.
                         1995 EMPLOYEE STOCK OPTION PLAN
                   (As Amended and Restated on April 17, 2000)

         1. STATEMENT OF PURPOSE. This Amended and Restated 1995 Employee Stock
Option Plan (the "Plan") is to benefit AutoNation, Inc., a Delaware corporation
(the "Company"), and its subsidiaries through the maintenance and development of
their respective businesses by offering certain present and future key employees
and officers, and independent contractors providing services to the Company, a
favorable opportunity to become holders of stock in the Company over a period of
years, thereby giving them a permanent stake in the growth and prosperity of the
Company and encouraging the continuance of their involvement with the Company or
its subsidiaries.

         2. ADMINISTRATION. The Plan shall be administered by a committee (the
"Committee"), consisting of two or more outside directors (as defined under
Section 162(m) of the Internal Revenue Code of 1986, as amended (the "Code"),
appointed by the Board of Directors, whose interpretation of the terms and
provisions of the Plan shall be final and conclusive. The selection of
employees, officers and consultants for participation in the Plan and all
decisions concerning the timing, pricing and amount of any grant or award under
the Plan shall be made solely by the Committee.

         3. ELIGIBILITY. Options shall be granted only to key employees of the
Company and its subsidiaries (including officers of the Company and its
subsidiaries but excluding non-employee directors of the Company and its
subsidiaries) and independent contractors performing services for the Company
and its subsidiaries selected initially and from time to time by the Committee
on the basis of their importance to the business of the Company and its
subsidiaries.

         4. GRANTING OF OPTIONS. The Committee may grant options under which a
total of not in excess of 20,000,000 shares of the $.01 par value common stock
of the Company ("Common Stock") may be purchased from the Company, subject to
adjustment as provided in Section 10. In the event that an option expires or is
terminated or canceled unexercised as to any shares, such released shares may
again be optioned (including a grant in substitution for a canceled option).
Shares subject to options may be made available from unissued or reacquired
shares of Common Stock. Nothing contained in the Plan or in any option granted
pursuant thereto shall confer upon any optionee any right to be continued in the
employment of the Company or any subsidiary of the Company or as a consultant to
the Company or any subsidiary of the Company, or interfere in any way with the

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right of the Company or its subsidiaries to terminate his employment or
consulting relationship at any time. The maximum number of shares of Common
Stock subject to options that may be granted during any calendar year under the
Plan to any executive officer or other employee of the Company or any subsidiary
whose compensation is or may be subject to Section 162(m) of the Code is
2,000,000 shares (subject to adjustment as provided in Section 10 hereof).

         5. OPTION PRICE. The option price shall be determined by the Committee
and, subject to the provisions of Section 10 hereof, shall be not less than the
fair market value, at the time the option is granted, of the shares of Common
Stock subject to the option.

         6. DURATION OF OPTIONS, INCREMENTS AND EXTENSIONS. Subject to the
provisions of Section 8 hereof, each option shall be for such a term of not less
than five years nor more than ten years, as shall be determined by the Committee
at the time the option is granted. Each option shall become exercisable with
respect to 25% of the total number of shares subject to the option twelve months
after the date of its grant and with respect to each additional 25% at the end
of each twelve-month period thereafter during the succeeding three years.
Notwithstanding the foregoing, the Committee may in its discretion (i)
specifically provide for another time or times of exercise at the time the
option is granted; (ii) accelerate the exercisability of any option subject to
such terms and conditions as the Committee deems necessary and appropriate; or
(iii) at any time prior to the expiration or termination of any option
previously granted, extend the term of any option (including such options held
by officers) for such additional period as the Committee in its discretion shall
determine. In no event, however, shall the aggregate option period with respect
to any option, including the original term of the option and any extensions
thereof, exceed ten years. Subject to the foregoing, all or any part of the
shares to which the right to purchase has accrued may be purchased at the time
of such accrual or at any time or times thereafter during the option period.

         In the event of a Change of Control (as defined below), all outstanding
options shall become immediately exercisable. Notwithstanding any other
provision in the Plan during the period of thirty (30) days after such Change of
Control, each optionee who is an officer or a director (and also an employee or
consultant) of the Company shall have the right to require the Company to
purchase for him any option granted under the Plan at a purchase price equal to
(i) the excess of fair market value per share over the option price (ii)
multiplied by the number of option shares specified by such individual for
purchase in a written notice to the Company, attention of the Secretary. For
purposes of this Plan, a "Change in Control" shall be deemed to occur if any
person shall (a) acquire direct or indirect beneficial ownership of at least 50%

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of the issued and outstanding Common Stock of the Company, or (b) has the power
(whether such power arises as a result of the ownership of capital stock, by
contract or otherwise), or ability to elect or cause the election of directors
consisting at the time of such election of a majority of the board of directors
of the Company. As used herein, "person" shall mean any person, corporation,
partnership, joint venture or other entity or any group (as such term is defined
in Section 13(d) of the Securities Exchange Act of 1934, as amended, and the
rules promulgated thereunder). For purposes of this paragraph, "fair market
value per share" shall mean the average of the highest sales price per share of
the Company's Common Stock as quoted on The Nasdaq Stock Market or by the
principal exchange upon which the Company's Common Stock is listed on each of
the five trading days immediately preceding the date on which such individual so
notifies the Company. The amount payable to each such individual by the Company
shall be in cash or by certified check and shall be reduced by any taxes
required to be withheld.

         7. EXERCISE OF OPTION. As a condition to the exercise of any option,
the "Quoted Price" (as defined below) per share of Common Stock on the date of
exercise must be equal or exceed the option price referred to in Section 5
hereof. An option may be exercised by giving written notice to the Company,
attention of the Secretary, specifying the number of shares to be purchased,
accompanied by the full purchase price for the shares to be purchased either (i)
in cash, (ii) by check, (iii) by a promissory note in a form specified by the
Company and payable to the Company no later than fifteen business days after the
date of exercise of the option, (iv) if so approved by the Committee, by shares
of the Common Stock of the Company or (v) by a combination of these methods of
payment. The "Quoted Price" and the per share value of Common Stock for purposes
of paying the option price in accordance with the immediately preceding sentence
shall equal the closing selling price per share of Common Stock on the date in
question on The Nasdaq Stock Market or the principal stock exchange upon which
the Company's Common Stock is listed (the "Exchange").

         At the time of any exercise of an option, the Company may, if it shall
determine it necessary or desirable for any reason, require the optionee (or his
or her heirs, legatees, or legal representatives, as the case may be), as a
condition upon the exercise thereof, to deliver to the Company a written
representation of present intention to purchase the shares for investment and
not for distribution. In the event such representation is required to be
delivered, an appropriate legend may be placed upon each certificate delivered
to the optionee upon his or her exercise of part or all of the option and a stop
transfer order may be placed with the transfer agent. Each option shall also be
subject to the requirement that, if at any time the Company determines, in its
discretion, that the listing, registration or qualification of the shares

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subject to the option upon any securities exchange or under any state or federal
law, or the consent or approval of any governmental regulatory body is necessary
or desirable as a condition of or in connection with, the issue or purchase of
shares thereunder, the option may not be exercised in whole or in part unless
such listing, registration, qualification, consent or approval shall have been
effected or obtained free of any conditions not acceptable to the Company.

         At the time of the exercise of any option the Committee may require, as
a condition of the exercise of such option, the optionee to (x) pay the Company
an amount equal to the amount of tax the Company may be required to withhold to
obtain a deduction for federal income tax purposes as a result of the exercise
of such option by the optionee or (y) make such other arrangements with the
Company which would enable the Company to pay such withholding tax, including,
without limitation, holding back a number of shares issuable upon exercise of
the option equal to the amount of such withholding tax, or permitting the
optionee to deliver a promissory note in a form specified by the Committee or
withhold taxes from other compensation payable to the optionee by the Company,
or (z) a combination of the foregoing.

         8. TERMINATION OF RELATIONSHIP - EXERCISE THEREAFTER. Except as
provided below or as may otherwise be provided by the Committee, upon the
termination of employment or other service of an optionholder with the Company
for any reason, all options held by such optionholder at the time of such
termination shall immediately terminate and such optionholder shall have no
further right to purchase shares of Common Stock pursuant to such option;
provided, however, that, unless such termination is by the Company for "Cause,"
all such options, to the extent exercisable on the date of such termination,
shall remain exercisable until the earlier of (a) the expiration date of such
option as fixed by the Committee pursuant to Section 6 and (b) the 60th day
following the date of such termination. For purposes of the foregoing, "Cause"
shall mean (1) the optionholder's conviction for commission of a felony or other
crime; (2) the commission by the optionholder of any act against the Company
constituting willful misconduct, dishonesty, fraud, theft or embezzlement; (3)
the optionholder's failure, inability or refusal to perform any of the material
services, duties or responsibilities required of him by the Company, or to
materially comply with the policies or procedures established from time to time
by the Company, for any reason other than his illness or physical or mental
incapacity; (4) the optionholder's dependence, as determined in good faith by
the Company, on any addictive substance, including, but not limited to, alcohol
or any illegal or narcotic drugs; (5) the destruction of or material damage to
Company property caused by the optionholder's willful or grossly negligent

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conduct; and (6) the willful engaging by the optionholder in any other conduct
which is demonstrably injurious to the Company or its subsidiaries, monetarily
or otherwise. Determination of Cause shall be made by the Committee in its sole
discretion. Notwithstanding the foregoing, if the optionholder is a party to an
employment agreement with the Company, "Cause" with respect to such optionholder
shall have the meaning set forth therein.

         Except as otherwise provided by the Committee and notwithstanding
anything in this Section 8 to the contrary, if an optionholder's termination of
employment is by reason of the death, "permanent and total disability" (within
the meaning of Section 22(e)(3) of the Code) or "Retirement"of such
optionholder, all options held by such optionholder at the time of such
termination shall become immediately vested and exercisable in full and shall
remain exercisable until the earlier of (a) the expiration date of such option
as fixed by the Committee pursuant to Section 6 and (b) the 3rd anniversary of
the date of such termination. Whether a termination of employment or service is
to be considered by reason of "permanent and total disability" for purposes of
this Plan shall be determined by the Committee, which determination shall be
final and conclusive. For purposes of the foregoing, "Retirement" shall mean the
optionholder's termination of employment or other service from the Company after
attainment of age 55 and completion of at least 6 years of service with the
Company. For purposes of the preceding sentence, employment or other service
with an entity prior to its becoming a subsidiary or after its ceasing to be a
subsidiary shall be disregarded.

         9. TRANSFERABILITY OF OPTIONS. No option shall be assignable or
transferable by the optionee to whom it is granted, other than by will or the
laws of descent and distribution, except that, upon approval by the Board, the
optionee may transfer an option that is not intended to constitute an Incentive
Stock Option (a) pursuant to a qualified domestic relations order as defined for
purposes of the Employee Retirement Income Security Act of 1974, as amended, or
(b) by gift: to a member of the "Family" (as defined below) of the optionee, to
or for the benefit of one or more organizations qualifying under Code
ss.501(c)(3) and 170(c)(2) (a "Charitable Organization") or to a trust for the
exclusive benefit of the optionee, one or more members of the optionee's Family,
one or more Charitable Organizations, or any combination of the foregoing,
provided that any such transferee shall enter into a written agreement to be
bound by the terms of this Plan. For this purpose, "Family" shall mean the
ancestors, spouse, siblings, spouses of siblings, lineal descendants and spouses
of lineal descendants of the optionee. During the lifetime of an optionee to
whom an Incentive Stock Option is granted, only such optionee (or, in the event
of legal incapacity of incompetence, the optionee's guardian or legal

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representative) may exercise the Incentive Stock Option. Following the
optionee's death, options held by such optionee, to the extent exercisable, may
be exercised by the executors or administrators or legatees or distributees of
such optionee's estate.

         10. ADJUSTMENTS. The number of shares subject to this Plan and to
options granted under this Plan shall be adjusted as follows: (a) in the event
that the outstanding shares of Common Stock of the Company is changed by any
stock dividend, stock split or combination of shares, the number of shares
subject to the Plan and to options granted hereunder shall be proportionately
adjusted; (b) in the event of any merger, consolidation or reorganization of
the Company with any other corporation or corporations, these shall be
substituted, on an equitable basis as determined by the Committee, for each
share of Common Stock then subject to the Plan whether or not at the time
subject to outstanding options, the number and kind of shares of stock or other
securities to which the holders of shares of Common Stock of the Company will be
entitled pursuant to the transaction; and (c) in the event of any other relevant
change in the capitalization of the Company, the Committee shall provide for an
equitable adjustment in the number of shares of Common Stock then subject to the
Plan, whether or not then subject to outstanding options. In the event of any
such adjustment, the purchase price per share shall be proportionately adjusted.

         11. NO IMPAIRMENT OF RIGHTS. Nothing contained in the Plan or any
option granted pursuant to the Plan shall confer upon any optionee any right to
be continued in the employment of the Company or any subsidiary of the Company
or to be continued as a consultant to the Company or any subsidiary of the
Company to interfere in any way with the right of the Company and its
subsidiaries to terminate such employment or consulting relationship and/or to
remove any optionee who is a director from service on the Board of Directors of
the Company at any time in accordance with the provisions of applicable law.

         12. AMENDMENT OF PLAN. The Board of Directors of the Company may amend
or discontinue the Plan at any time. However, no such amendments or
discontinuance shall be made without the requisite stockholder approval of the
stockholders of the Company if stockholder approval is required as a condition
to the Plan continuing to comply with the provisions of Rule 16b-3 of the 1934
Act or Section 162(m) of the Code.

         13. GOVERNANCE BY RULE 16B-3. The Plan is intended to and shall be
governed by Rule 16b-3 promulgated under the 1934 Act.

         14. EFFECTIVE DATE. This Plan is effective as of February 12, 1996.

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         This Plan was duly approved and adopted by the stockholders of the
Company at a meeting held the 10th day of May, 1996.

         This Plan was duly amended by the Board of Directors of the Company on
the 3rd day of February, 1998, which amendment was duly approved and adopted by
the stockholders of the Company at a meeting held the 20th day of May, 1998.

         This Plan was duly amended by the Board of Directors of the Company
effective as of the 20th day of May, 1998.

         This Plan was duly amended and restated by the Board of Directors of
the Company effective as of April 17, 2000.

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                                                                    EXHIBIT 10.3

                       AUTONATION ENTERPRISES INCORPORATED
                         1995 EMPLOYEE STOCK OPTION PLAN
                   (As Amended and Restated on April 17, 2000)

         1. STATEMENT OF PURPOSE. This Employee Stock Option Plan (the Plan") is
to benefit AutoNation Enterprises Incorporated, a Florida corporation (the
"Company"), and its subsidiaries through the maintenance and development of
their respective businesses by offering certain present and future key employees
and officers, and independent contractors providing services to the Company and
its subsidiaries, a favorable opportunity to become holders of stock in the
Company over a period of years, thereby giving them a permanent stake in the
growth and prosperity of the Company and its subsidiaries and encouraging the
continuance of their involvement with the Company and its subsidiaries.

         2. ADMINISTRATION. The Plan shall be administered by the Board of
Directors of the Company (the "Board"), whose construction and interpretation of
the terms and provisions of the Plan shall be final and conclusive. The
selection of employees, officers and consultants for participation in the Plan
and all decisions concerning the timing, pricing and amount of any grant or
award under the Plan shall be made by the Board. The Board may in its sole
discretion grant options to purchase shares of the Company's $.001 per share
par value common stock ("Common Stock") and issue shares upon exercise of such
options as provided in the Plan. The Board shall have authority, subject to the
express provisions of the Plan, to construe the respective option agreements and
the Plan, to prescribe, amend and rescind rules and regulations relating to the
Plan, to determine the terms and provisions of the respective option agreements,
which need not be identical, and to make all other determinations in the
judgment of the Board necessary or desirable for the administration of the
Plan. The Board may correct any defect or supply any omission or reconcile any
inconsistency in the Plan or in any option agreement in the manner and to the
extent it shall deem expedient to carry the Plan into effect and it shall be the
sole and final judge of such expediency. No director shall be liable for any
action or determination made in good faith. The Board may, to the full extent
permitted by law, delegate any or all of its powers under the Plan to a
committee (the "Committee") appointed by the Board, and if the Committee is so
appointed, all references to the Board in the Plan shall mean and relate to such
Committee.

         From and after the registration of the Common Stock of the Company
under Section 12 of the Securities Exchange Act of 1934 (the "Exchange Act"),
the selection of an officer or director as a participant in the Plan and the
timing, price and number of shares for which an option or options may be granted
to such officer or director shall be determined either (i) by the Board or (ii)
by a committee of two or more directors having full authority to act in the
matter, each of which members shall be a "nonemployee director" (within the

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meaning of Rule 16b-3 under the Exchange Act (or any successor rule)) and an
"outside director" (as defined under Section 162(m) of the Internal Revenue Code
of 1986, as amended (the "Code") (or any successor rule)), as such terms are
interpreted from time to time.

         3. ELIGIBILITY. Options shall be granted only to key employees of the
Company and its subsidiaries (including officers and directors of the Company
and its subsidiaries) and independent contractors performing services for the
Company and its subsidiaries selected initially and from time to time by the
Board on the basis of their importance and contribution to the business of the
Company or its subsidiaries.

         As a condition to the grant of an option under the Plan, each recipient
of an option shall execute an option agreement not inconsistent with the Plan as
may be determined by the Board.

         4. GRANTING OF OPTIONS. The Board may grant options under which a total
of not in excess of 3,200,000 shares of the Common Stock may be purchased from
the Company, subject to adjustment as provided in Section 10. Options granted
under the Plan are intended not to be treated as incentive stock options as
defined in Section 422 of the Code. The maximum number of shares subject to
options that can be granted under the Plan to any executive officer of the
Company or its subsidiaries, or to any other person eligible for a grant of an
option under Section 3, is 1,000,000 during the first ten years after the
effective date of the Plan and 500,000 shares per year thereafter (in each case,
subject to adjustment as provided in Section 10 hereof).

         In the event that an option expires or is terminated or canceled
unexercised as to any shares, such released shares may again be optioned
(including a grant in substitution for a canceled option). With respect to any
individual, however, in the case of an option that is terminated or canceled
unexercised as to any shares, such released shares shall continue to count
against the maximum number of shares that may be offered such individual under
the Plan. Shares subject to options may be made available from unissued or
reacquired shares of Common Stock.

         5. OPTION PRICE. The option price shall be determined by the Board in
its sole discretion, subject to the provisions of Section 10 hereof, but shall
not be less than the fair market value, at the time the option is granted, of
the shares of Common Stock subject to the option.

         6. DURATION OF OPTIONS, INCREMENTS AND EXTENSIONS. Subject to the
provisions of Section 8 hereof, each option shall be for such term of not less
than five (5) years nor more than ten (10) years, as shall be determined by the
Board. Each option shall become exercisable with respect to 25% of the total
number of shares subject to the option twelve (12) months after the date of its
grant and with respect to an additional 25% at the end of each twelve-month
period thereafter during the succeeding three (3) years. Notwithstanding the
foregoing, the Board may in its discretion (i) specifically provide for another
time or times of vesting or exercise; (ii) accelerate the exercisability of any
option subject to such terms and conditions as the Board deems necessary and

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appropriate; or (iii) at any time prior to the expiration or termination of any
option previously granted, extend the term of any option (including such
options held by officers or directors) for such additional period as the Board
in its discretion shall determine. In no event, however, shall the aggregate
option period with respect to any option, including the original term of the
option and any extensions thereof, exceed ten (10) years. Subject to the
foregoing, all or any part of the option which has become exercisable may be
exercised at any time during the option period prior to its expiration.

         From and after the registration of the Common Stock under Section 12 of
the Exchange Act, in the event of a Change in Control (as defined below), all
outstanding options shall became immediately exercisable. Notwithstanding any
other provision in the Plan, during the period of thirty (30) days after such
Change of Control each optionee who is an officer or a director (or an employee
or consultant) of the Company shall have the right to require the Company to
purchase from him any option granted under the Plan at a purchase price equal to
(i) the excess of fair market value per share over the option price (ii)
multiplied by the number of option shares specified by such individual for
purchase in a written notice to the Company, attention of the Secretary. For
purposes of this Plan, a "Change in Control" shall be deemed to occur if any
person shall (a) acquire direct or indirect beneficial ownership of at least
50% of the issued and outstanding Common Stock, or (b) has the power (whether
such power arises as a result of the ownership of capital stock, by contract or
otherwise), to elect or cause the election of directors consisting at the time
of such election of a majority of the Board. As used herein, "person" shall mean
any person, corporation, partnership, joint venture or other entity or any group
(as such term is defined in Section 13(d) of the Exchange Act and the rules
promulgated thereunder). For purposes of this paragraph, "fair market value per
share" shall mean the average of the highest sales price per share of the Common
Stock as quoted on the NASD National Market or by the principal exchange upon
which the Common Stock is listed on each of the five trading days immediately
preceding the date on which such individual so notifies the Company. The amount
payable to each such individual by the Company shall be in cash or by certified
check and shall be reduced by any taxes required to be withheld.

         7. EXERCISE OF OPTION. From and after the registration of the Common
Stock under Section 12 of the Exchange Act, as a condition to the exercise of
any option, the "Quoted Price" (as defined below) per share of Common Stock on
the date of exercise must equal or exceed the option price referred to in
Section 5 hereof. An option may be exercised by giving written notice to the
Company, attention of the Secretary, specifying the number of shares to be
purchased, accompanied by the full purchase price for the shares to be purchased
either in cash, by check by a promissory note in a form specified by the Company
and payable (or delivered, in the case a note) to the Company no later than ten
business, days after the date of exercise of the option or, if so approved by
the Board, by shares of the Common Stock or by a combination of these methods of
payment. The "Quoted Price" and the per share value of Common Stock for purposes
of paying the option price in accordance with the immediately preceding
sentence shall equal the closing selling price per share of Common Stock on the

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date in question on the NASD National Market or the principal stock exchange
upon which the Common Stock is listed. From and after the registration of the
Common Stock under Section 12 of the Exchange Act., the right to pay the
purchase price of shares by delivery of a promissory note shall not be available
to any optionee who is a person described in Section 16(a) of the Exchange Act.

         At the time of any exercise of any option, the Company may, if it shall
determine it necessary or desirable for any reason, require the optionee (or his
heirs, legatees, or legal representative, as the case may be), as a condition
upon the exercise thereof, to deliver to the Company a written representation of
present intention to purchase the shares for investment and not for
distribution. In the event such representation is required to be delivered, an
appropriate legend may be placed upon each certificate delivered to the optionee
upon his exercise of part or all of the option and a stop transfer order may be
placed with the transfer agent. Each option shall also be subject to the
requirement that, if at any time the Company determines, in its discretion, that
the listing, registration or qualification of the shares subject to the option
upon any securities exchange or under any state or federal law, or the consent
or approval of any governmental regulatory body is necessary or desirable as a
condition of or in connection with, the issuance or purchase of shares
thereunder, the option may not be exercised in whole or in part unless such
listing, registration, qualification, consent or approval shall have been
effected or obtained, free of any conditions not acceptable to the Company.

         At the time of the exercise of any option, the Board may require, as a
condition of the exercise of such option, the optionee to (x) pay the Company
an amount equal to the amount of tax the Company may be required to withhold in
respect of any applicable federal, state or local tax as a result of the
exercise of such option by the optionee, or (y) make such other arrangements
with the Company which would enable the Company to pay such withholding tax,
including, without limitation, holding back a number of shares issuable upon
exercise of the option equal to the amount of such withholding tax, or
permitting the optionee to deliver a promissory note in a form specified by the
Board, or (z) a combination of the foregoing.

         8. TERMINATION OF RELATIONSHIP-EXERCISE THEREAFTER. Except as provided
below or as may otherwise be provided by the Board, upon the termination of
employment or other service of an optionee with the Company for any reason, all
options held by such optionee at the time of such termination shall immediately
terminate and such optionee shall have no further right to purchase shares of
Common Stock pursuant to such option; provided, however, that, unless such
termination is by the Company for "Cause," all such options, to the extent
exercisable on the date of such termination, shall remain exercisable until the
earlier of (a) the expiration date of such option as fixed by the Board pursuant
to Section 6 and (b) the 60th day following the date of such termination. For
purposes of the foregoing, "Cause" shall mean (1) the optionee's conviction for
commission of a felony or other crime; (2) the commission by the optionee of any
act against the Company constituting willful misconduct, dishonesty, fraud,
theft or embezzlement; (3) the optionee's failure, inability or refusal to

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perform any of the material services, duties or responsibilities required of him
by the Company, or to materially comply with the policies or procedures
established from time to time by the Company, for any reason other than his
illness or physical or mental incapacity; (4) the optionee's dependence, as
determined in good faith by the Company, on any addictive substance, including,
but not limited to, alcohol or any illegal or narcotic drugs; (5) the
destruction of or material damage to Company property caused by the optionee's
willful or grossly negligent conduct; and (6) the willful engaging by the
optionee in any other conduct which is demonstrably injurious to the Company or
its subsidiaries, monetarily or otherwise. Determination of Cause shall be made
by the Board in its sole discretion. Notwithstanding the foregoing, if the
optionee is a party to an employment agreement with the Company, "Cause" with
respect to such optionee shall have the meaning set forth therein.

         Except as otherwise provided by the Board and notwithstanding anything
in this Section 8 to the contrary, if an optionee's termination of employment is
by reason of the death, "permanent and total disability" (within the meaning of
Section 22(e)(3) of the Code) or "Retirement"of such optionee, all options held
by such optionee at the time of such termination shall become immediately vested
and exercisable in full and shall remain exercisable until the earlier of (a)
the expiration date of such option as fixed by the Board pursuant to Section 6
and (b) the 3rd anniversary of the date of such termination. Whether a
termination of employment or service is to be considered by reason of "permanent
and total disability" for purposes of this Plan shall be determined by the
Board, which determination shall be final and conclusive. For purposes of the
foregoing, "Retirement" shall mean the optionee's termination of employment or
other service from the Company after attainment of age 55 and completion of at
least 6 years of service with the Company. For purposes of the preceding
sentence, employment or other service with an entity prior to its becoming a
subsidiary or after its ceasing to be a subsidiary shall be disregarded.

         9. NON-TRANSFERABILITY OF OPTIONS. During the lifetime of the optionee,
options shall be exercisable only by the optionee, and options shall not be
assignable or transferable by the optionee otherwise than by will or by the laws
of descent and distribution. Following the optionee's death, options held by
such optionee, to the extent exercisable, may be exercised by the executors or
administrators or legatees or distributees of such optionee's estate.

         10. ADJUSTMENT. The number of shares subject to the Plan and to options
granted under the Plan shall be adjusted as follows: (a) in the event that the
number of outstanding shares of Common Stock is changed by any stock dividend,
stock split or combination of shares the number of shares subject to the Plan
and to options granted hereunder shall be proportionately adjusted; (b) in the
event of any merger, consolidation or reorganization of the Company with any
other corporation of corporations, there shall be substituted, on an equitable
basis as determined by the Board, for each share of Common Stock then subject to
the Plan, whether or not at the time subject to outstanding options, the number
and kind of shares of stock or other securities to which the holders of shares

                                       5
<PAGE>   6

of Common Stock will be entitled pursuant to the transaction; and (c) in the
event of any other relevant change in the capitalization of the Company, the
Board shall provide for an equitable adjustment in the number of shares of
Common Stock then subject to the Plan, whether or not then subject to
outstanding options. In the event of any such adjustment, the purchase price per
share shall be proportionately adjusted.

         11. NO IMPAIRMENT OF RIGHTS. Nothing contained in the Plan or any
option granted pursuant to the Plan shall confer upon any optionee any right to
be continued in the employment of the Company or any subsidiary of the Company
or to be continued as a consultant to the Company or any subsidiary of the
Company or interfere in any way with the right of the Company or its
subsidiaries to terminate such employment or consulting relationship and/or to
remove any optionee who is a director from service on the Board or any of it's
subsidiaries at any time in accordance with the provisions of applicable law.

         12. AMENDMENT OF PLAN. The Board may amend or discontinue the Plan at
any time. However, no such amendments or discontinuance shall be made without
the requisite approval of the stockholders of the Company if stockholder
approval is required as a condition to the Plan continuing to comply with the
provisions of Rule 16b-3 or Section 162(m) of the Code.

         13. GOVERNANCE BY RULE 16B-3. The Plan is intended to comply with all
applicable conditions of Rule 16b-3 and its successors promulgated under the
Exchange Act, regardless of whether such conditions are set forth in the Plan.
To the extent any provision of the Plan or action of the Plan administrators
fails to so comply, it shall be deemed null and void, to the extent permitted by
law and deemed advisable by the Plan administrators.

         14. HOLDING PERIOD. From and after the registration of the Common Stock
under Section 12 of the Exchange Act, anything contained in the Plan to the
contrary notwithstanding, any disposition of an option otherwise permitted by
the terms of the Plan, or of the Common Stock acquired upon exercise of an
option, shall be subject to compliance with the requirements of Rule 16b-3 or
its successors promulgated under the Exchange Act, applicable to such
disposition, and any date, period or procedure specified or referred to in the
Plan with respect to any such disposition shall be adjusted, if necessary so as
to give effect to this Section 1.4.

         15. EFFECTIVE DATE. On November 22, 1995, this Plan was adopted and
authorized by the Board and approved by the stockholders of the Company, This
plan shall be deemed to have become effective on November 22, 1995.

                                       6

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