Document:

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                                                                    Exhibit 4(a)

                           BLUEGILL TECHNOLOGIES,INC.

                             1997 STOCK OPTION PLAN

         1. PURPOSES OF THE PLAN. The purposes of this Plan are to attract and
retain the best available personnel for positions of substantial responsibility,
to provide additional incentive to Employees and Consultants of the Company and
its Subsidiaries and to promote the success of the Company's business. Options
granted under the Plan shall be non-statutory stock options, not incentive stock
options as defined under Section 422 of the Code.

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

                  a. "ADMINISTRATOR" means the Board or any of its Committees
         appointed pursuant to Section 4 of the Plan.

                  b. "APPLICABLE LAWS" means the legal requirements relating to
         the administration of stock option plans under U.S. state corporate
         laws, U.S. federal and state securities laws, the Code and applicable
         laws of any foreign country or jurisdiction.

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

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

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

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

                  g. "COMPANY" means BlueGill Technologies, Inc.

                  h. "CONSULTANT" means any person who is engaged by the Company
         or any Subsidiary to render consulting or advisory services, and is
         compensated for such services, and any director of the Company whether
         compensated for such services or not.

                  i. "CONTINUOUS STATUS AS AN EMPLOYEE OR CONSULTANT" means that
         the employment or consulting relationship with the Company, any Parent,
         or any Subsidiary is not interrupted or terminated. Continuous Status
         as an Employee or Consultant shall not be considered interrupted in the
         case of (i) any leave of absence approved by the Company or (ii)
         transfers between locations of the Company or between the Company and
         any Subsidiary or successor. A leave of absence approved by the Company
         shall include sick leave, military leave, or any other personal leave
         approved by an authorized representative of the Company.

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                  j. "EMPLOYEE" means any person, including officers and
         directors, employed by the Company or any Subsidiary of the Company.

                  k. "FAIR MARKET VALUE OF COMMON STOCK" means:

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

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

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

                  l. "OPTION" means a stock option granted pursuant to the Plan.

                  m. "OPTIONED STOCK" means the Common Stock subjected to an
         Option.

                  n. "OPTIONEE" means an Employee or Consultant who receives an
         Option.

                  o. "PLAN" means this 1997 Stock Option Plan.

                  p. "SHARE" means a share of the Common Stock, adjusted in
         accordance with Section 11 below.

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

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         3. STOCK SUBJECT TO THE PLAN. Subject to the provisions of Section 11
of the Plan, the maximum aggregate number of Shares which may be optional and
sold under the Plan is Three Thousand (3,000) shares. The shares may be
authorized, but unissued, or reacquired Common Stock. If an Option expires or
becomes unexercisable without having been exercised in full, or is surrendered
pursuant to an option exchange program, the unpurchased Shares which were
subject thereto shall become available for future grant or sale under the Plan
(unless the Plan has terminated); provided, however, that Shares that have
actually been issued under the Plan shall not be returned to the Plan and shall
not become available for future distribution under the Plan, except that if
unvested Shares are repurchased by the Company at the original price, and the
original purchaser of such Shares did not receive any benefits of ownership of
such Shares, such Shares shall become available for future grant under the Plan.
For purposes of the preceding sentence, voting rights shall not be considered a
benefit of Share ownership.

         4. ADMINISTRATION OF THE PLAN. The Plan shall be administered by the
Board or a Committee appointed by the Board. Subject to the provisions of the
Plan and, in the case of a Committee, the specific duties delegated by the Board
to such Committee, and subject to the approval of any relevant authorities, the
Administrator shall have the authority, in its discretion:

                  (i)      to determine the Fair Market Value of the Common
                           Stock, in accordance with Section 2(1) of the Plan;

                  (ii)     to select the Consultants and Employees to whom
                           Options may from time to time be granted hereunder;

                  (iii)    to determine whether and to what extent Options are
                           granted hereunder;

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

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

                  (vi)     to determine the terms and conditions of any award
                           granted hereunder;

                  (vii)    to determine whether and under what circumstances an
                           Option may be settled in cash under subsection 9(f)
                           instead of Common Stock;

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

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

Determinations and interpretations of the Administrator shall be final and
binding on all Optionees and any other holders of any Options.

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         5. ELIGIBILITY. Options may be granted to Employees and Consultants as
determined by the Administrator in its discretion. The Plan shall not confer
upon any Optionee any right with respect to continuation of employment or
consulting relationship with the Company, nor shall it interfere in any way with
his or her right or the Company's right to terminate his or her employment or
consulting relationship at any time, with or without cause.

         6. TERM OF PLAN. The Plan shall become effective upon its adoption by
the Board of Directors. It shall continue in effect for a term of ten (10) years
unless sooner terminated under Section 13 of the Plan.

         7. TERM OF OPTION. The term of each Option shall be the term stated in
the Option Agreement; provided, however, that the term shall be no more than ten
(10) years from the date of grant thereof.

         8. OPTION EXERCISE PRICE AND CONSIDERATION. The per share exercise
price for the Shares to be issued pursuant to exercise of an Option shall be
such price as is determined by the Administrator, but shall be subject to the
following:

                  (i)      The Administrator may grant Options for up to 1,600
                           Shares with an exercise price of $1.00 per Share to
                           not more than seven persons who were Employees of, or
                           Consultants to, the Company prior to November 1, 1996
                           and who provided assistance or advice in connection
                           with the design and development of the Company's
                           products and the formation of the Company.

                  (ii)     The exercise price for any Shares issued pursuant to
                           the Plan that are not covered by subparagraph (i)
                           above shall not be less than $250.00 per Share.

                  (iii)    The consideration to be paid for the Shares to be
                           issued upon exercise of an Option, including the
                           method of payment, shall be determined by the
                           Administrator and may consist entirely of (1) cash,
                           (2) check, (3) promis-sory note, (4) delivery of a
                           properly executed exercise notice together with such
                           other documentation as the Administrator and the
                           broker, if applicable, shall require to effect an
                           exercise of the Option and delivery to the Company of
                           the sale or loan proceeds required to pay the
                           exercise price, or (5) any combination of the
                           foregoing methods of payment. In making its
                           determination as to the type of consideration to
                           accept, the Administrator shall consider if
                           acceptance of such consideration may be reasonably
                           expected to benefit the Company.

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         9. EXERCISE OF OPTION.

                  a. PROCEDURE FOR EXERCISE; RIGHTS AS A SHAREHOLDER. Any Option
         granted hereunder shall be exercisable at such times and under such
         conditions as determined by the Administrator, including performance
         criteria with respect to the Company and/or the Optionee, and as shall
         be permissible under the terms of the Plan, the date the Option is
         granted. An Option may not be exercised for a fraction of a Share. An
         Option shall be deemed to be exercised when written notice of such
         exercise has been given to the Company in accordance with the terms of
         the Option by the person entitled to exercise the Option and full
         payment for the Shares with respect to which the Option is exercised
         has been received by the Company. Full payment may, as authorized by
         the Administrator, consist of any consideration and method of payment
         allowable under Section 8(b) of the Plan. Until the issuance of the
         shares (as evidenced by the appropriate entry on the books of the
         Company), no right to vote or receive dividends or any other rights as
         a shareholder shall exist with respect to the Optioned Stock,
         notwithstanding the exercise of the Option. No adjustment will be made
         for a dividend or other right for which the record date is prior to the
         date the stock certificate is issued, except as provided in Section 11
         of the Plan. Exercise of an Option in any manner shall result in a
         decrease in the number of Shares which thereafter may be available,
         both for purposes of the Plan and for sale under the Option, by the
         number of Shares as to which the Option is exercised.

                  b. TERMINATION OF EMPLOYMENT OR CONSULTING RELATIONSHIP. In
         the event of termination of an Optionee's continuous Status as an
         Employee or Consultant (but not in the event of an Optionee's change of
         status from Employee to Consultant), such Optionee may, but only within
         such period of time as determined by the Administrator and set forth in
         the Notice of Grant (but in no event later that the expiration date of
         the term of such Option as set forth in the Option Agreement), exercise
         his or her Option to the extent that Optionee was entitled to exercise
         it at the date of such termination. To the extent that Optionee was not
         entitled to exercise the Option at the date of such termination, or if
         Optionee does not exercise such Option to the extent so entitled within
         the time specified herein, the Option shall terminate.

                  c. DISABILITY OF OPTIONEE. In the event of an Optionee's
         Continuous Status as an Employee or Consultant as a result of his or
         her disability, Optionee may, but only within six (6) months from the
         date of such termination (and in no event later than the expiration
         date of the term of such Option as set forth in the Option Agreement),
         exercise the Option to the extent otherwise entitled to exercise it at
         the date of such termination. To the extent that Optionee is not
         entitled to exercise the Option at the date of termination, or if
         Optionee does not exercise such Option to the extent so entitled within
         the time specified herein, the Option shall terminate and the Shares
         covered by such Option shall revert to the Plan.

                  d. DEATH OF OPTIONEE. In the event of the death of an
         Optionee, the Option may be exercised at any time within six (6) months
         following the date of death (but in no event later than the expiration
         of the term of such Option as set forth in the Notice of Grant), by the
         Optionee's estate or by a person who acquired the right to exercise the
         Option by bequest or inheritance, but only to the extent that the
         Optionee was entitled to exercise the Option at the date of death. If,
         at the time of death, the Optionee was not entitled to exercise his or
         her entire Option, the Shares covered by the unexercisable portion of
         the Option shall immediately revert to the Plan. If, after death, the
         Optionee's estate or a person who acquired the right to exercise the
         Option by bequest or inheritance does not exercise the option within
         the time specified herein, the Option shall terminate, and the Shares
         covered by such Option shall revert to the Plan.

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                  e. BUYOUT PROVISIONS. The Administrator may at any time offer
         to buy out for a payment in cash or Shares any Option previously
         granted, based on such terms and conditions as the Administrator shall
         establish and communicate to the Optionee at the time that such offer
         is made.

         10. NON-TRANSFERABILITY OF OPTIONS. Options may not be sold, pledged,
assigned, hypothecated, transferred, or disposed of in any manner other than by
will or by the laws of descent or distribution and may be exercised, during the
lifetime of the Optionee, only by the Optionee.

         11. ADJUSTMENTS UPON CHANGES IN CAPITALIZATION OR MERGER.

                  a. CHANGES IN CAPITALIZATION. Subject to any required action
         by the shareholders of the Company, the number of shares of Common
         Stock covered by each outstanding Option, and the number of shares of
         Common Stock which have been authorized for issuance under the Plan but
         as to which no Options have yet been granted or which have been
         returned to the Plan upon cancellation or expiration of an Option, as
         well as the price per share of Common Stock covered by each such
         outstanding Option, shall be proportionately adjusted for any increase
         or decrease in the number of issued shares of Common Stock resulting
         from a stock split, reverse stock split, stock dividend, combination or
         reclassification of the Common Stock, or any other increase or decrease
         in the number of issued shares of Common Stock effected without receipt
         of consideration by the Company; provided, however, that conversion of
         any convertible securities of the Company shall not be deemed to have
         been "effected without receipt of consideration." Such adjustments
         shall be made by the Administrator, whose determination in that respect
         shall be final, binding and conclusive. Except as expressly provided
         herein, no issuance by the Company of shares of stock of any class, or
         securities convertible into shares of stock of any class, shall affect,
         and no adjustments by reason thereof shall be made with respect to, the
         number or price of shares of Common Stock subject to an option.

                  b. DISSOLUTION OR LIQUIDATION. In the event of the proposed
         dissolution or liquidation of the Company, the Administrator shall
         notify the Optionee at least fifteen (15) days prior to such proposed
         action. To the extent it has not been previously exercised, the Option
         will terminate immediately prior to the consummation of such proposed
         action.

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                  c. MERGER. In the event of a merger of the Company with or
         into another corporation, the Option may be assumed, or an equivalent
         option may be substituted, by such successor corporation or a parent or
         subsidiary of such successor corporation. If, in such event, the Option
         is not assumed or substituted, the Option shall terminate as of the
         date of closing of the merger; provided, however, the Administrator, in
         its sole discretion, may provide in any Option Agreement that unvested
         options shall vest prior to the closing date of the merger. For the
         purpose of this paragraph, the Option shall be considered assumed if,
         following the merger, the option confers the right to purchase, for
         each Share of Optioned Stock subject to the Option immediately prior to
         the merger, the consideration (whether stock, cash, or other securities
         or property) received in the merger by holders of Common Stock for each
         Share held on the effective date of the transaction (and if holders
         were offered a choice of consideration, the type of consideration
         chosen by the holders of a majority of the outstanding Shares);
         provided, however, that if such consideration received in the merger
         was not solely common stock of the successor corporation or its Parent,
         the Administrator may, with the consent of the successor corporation,
         provide for the consideration to be received upon the exercise of the
         Option for each Share of Optioned Stock subject to the Option to be
         solely common stock of the successor corporation or its Parent equal in
         fair market value to the per share consideration received by holders of
         Common Stock in the merger.

         12. TIME OF GRANTING OPTIONS. The date of grant of an Option shall, for
all purposes, be the date on which the Administrator makes the determination
granting such Option, or such other date as is determined by the Board. Notice
of the determination shall be given to each Employee or Consultant to whom an
Option is so granted within a reasonable time after the date of such grant.

         13. AMENDMENT AND TERMINATION OF THE PLAN.

                  a. AMENDMENT AND TERMINATION. The Board may at any time amend,
         alter, suspend or discontinue the Plan, but no amendment, alteration,
         suspension or discontinuation shall be made which would impair the
         rights of any Optionee under any grant theretofore made, without his or
         her consent.

                  b. EFFECT OF AMENDMENT OR TERMINATION. Any such amendment or
         termination of the Plan shall not affect Options already granted, and
         such Options shall remain in full force and effect as if this Plan had
         not even amended or terminated, unless mutually agreed otherwise
         between the Optionee and the Administrator, which agreement must be in
         writing and signed by the Optionee and the Company.

         14. CONDITIONS UPON ISSUANCE OF SHARES. Shares shall not be issued
pursuant to the exercise of an Option unless the exercise of such Option and the
issuance and delivery of such Shares pursuant thereto shall comply with all
relevant provisions of law, including, without limitation, the Securities Act of
1933, as amended, the Exchange Act, the rules and regulations promulgated
thereunder, and the requirements of any stock exchange upon which the Shares may
then be listed, and shall be further subject to the approval of counsel for the
Company with respect to such compliance. As a condition to the exercise of an
Option, the Company may require the person exercising such Option to represent
and warrant at the time of any such exercise that the Shares are being purchased
only for investment and without any present intention to sell or distribute such
Shares if, in the opinion of counsel for the Company, such a representation is
required by any of the aforementioned relevant provisions of law.

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<PAGE>   8
         15. RESERVATION OF SHARES. The Company, during the term of this Plan,
will at all times reserve and keep available such number of Shares as shall be
sufficient to satisfy the requirements of the Plan. The inability of the Company
to obtain authority from any regulatory body having jurisdiction, which
authority is deemed by the Company's counsel to be necessary to the lawful
issuance and sale of any Shares hereunder, shall relieve the Company of any
liability for the failure to issue or sell such shares as to which such
requisite authority shall not have been obtained.

         16. AGREEMENTS. Options shall be evidenced by written agreements in
such form as the Administrator shall approve from time to time.

         17. SHAREHOLDER APPROVAL. Continuance of the Plan shall be subject to
approval by the shareholders of the Company within twelve (12) months before or
after the date the Plan is adopted. Such shareholder approval shall be obtained
in the degree and manner required under Applicable Laws.

         18. INFORMATION TO OPTIONEES AND PURCHASERS. The Company shall provide
to each Optionee, not less frequently than annually, copies of annual financial
statements. The Company shall also provide such statements to each individual
who acquires Shares pursuant to the plan while such individual owns such Shares.
The Company shall not be required to provide such statements to key employees
whose duties in connection with the Company assure their access to equivalent
information.

                                       8<PAGE>   1
                                                                    Exhibit 4(a)

                              AMENDED AND RESTATED
                           BLUEGILL TECHNOLOGIES, INC.
                        1998 INCENTIVE AND NON-QUALIFIED
                                STOCK OPTION PLAN
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<TABLE>
<CAPTION>
                                Table of Contents
                                -----------------

                                                                                                                Page
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<S>                                                                                                             <C>
Section 1.  Name and Purposes.....................................................................................1

Section 2.  Definitions...........................................................................................1

Section 3.  Administration........................................................................................4

Section 4.  Eligibility...........................................................................................6

Section 5.  Stock Subject to the Plan.............................................................................7

Section 6.  Terms and Conditions of Options.......................................................................7

Section 7.  Fair Market Value of Common Stock....................................................................10

Section 8.  Adjustments..........................................................................................11

Section 9.  Rights as a Shareholder..............................................................................11

Section 10.  Forfeiture..........................................................................................11

Section 11.  Time of Granting Options............................................................................12

Section 12.  Modification, Extension, Renewal of Option..........................................................12

Section 13.  Transferability.....................................................................................12

Section 14.  Power of Board if Change of Control or Sale of the Company..........................................12

Section 15.  Amendment or Termination of the Plan................................................................13

Section 16.  Application of Funds................................................................................13

Section 17.  No Obligation to Exercise Option....................................................................13

Section 18.  Approval of Shareholders............................................................................13

Section 19.  Conditions Upon Issuance of Shares..................................................................14

Section 20.  Reservation of Shares...............................................................................14
</TABLE>

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<TABLE>
<S>                                                                                                            <C>
Section 21.  Other Agreements....................................................................................14

Section 22.  Taxes, Fees, Expenses and Withholding...............................................................15

Section 23.  Notices.............................................................................................15

Section 24.  No Enlargement of Employee Rights...................................................................15

Section 25.  Information to Optionees............................................................................16

Section 26.  Availability of Plan................................................................................16

Section 27.  Invalid Provisions..................................................................................16

Section 28.  Applicable Law......................................................................................16

Section 29.  Board Action........................................................................................16

Section 30.  Miscellaneous.......................................................................................16
</TABLE>

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<PAGE>   4
                              AMENDED AND RESTATED
                           BLUEGILL TECHNOLOGIES, INC.
                        1998 INCENTIVE AND NON-QUALIFIED
                                STOCK OPTION PLAN

         Section 1.  Name and Purposes of the Plan.

         (a) Name. The Plan will be known as the Amended and Restated BlueGill
Technologies, Inc. 1998 Incentive and Non-Qualified Stock Option Plan.

         (b)Purposes. The purpose of the Plan is to provide key Employees and
Consultants with an opportunity to share in the capital appreciation of the
Common Stock of the Company. The Options granted pursuant to the Plan are
intended to constitute either Incentive Stock Options or Non-Qualified Stock
Options, as determined by the Administrator of the Plan at the time of grant.

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

         (a) "Administrator" shall be the Board or a Committee appointed by the
Board pursuant to Section 3 of the Plan, which shall administer the Plan.

         (b) "Affiliate" shall mean, whether now or hereafter existing, a person
or entity that directly, or indirectly controls or is controlled by, or is under
common control with, the Company, except that when used in connection with an
Incentive Stock Option, "Affiliate" shall mean a Subsidiary.

         (c) "Board" shall mean the Board of Directors of the Company, as
constituted from time to time.

         (d) "Change of Control" shall mean the happening of an event (excluding
a Public Offering) that shall be deemed to have occurred upon the earliest to
occur of the following events: (i) the date the shareholders of the Company (or
the Board, if shareholder action is not required) approve a plan or other
arrangement pursuant to which the Company will be dissolved or liquidated; (ii)
the date the stockholders of the Company (or the Board, if stockholder action is
not required) approve a definitive agreement to sell or otherwise dispose of all
or substantially all of the assets of the Company; (iii) the date the
stockholders of the Company (or the Board, if stockholder action is not
required) and the stockholders of the other constituent corporations (or their
respective boards of directors, if and to the extent that stockholder action is
not required) have approved a definitive agreement to merge or consolidate the
Company with or into another corporation, other than, in either case, a merger
or consolidation of the Company in which holders of shares of the Company's
voting capital stock immediately prior to the merger or consolidation will have
at least fifty percent (50%) of the ownership of voting capital stock of the
surviving corporation immediately after the

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merger or consolidation (on a fully diluted basis), which voting capital stock
is to be held by each such holder in the same or substantially similar
proportion (on a fully diluted basis) as such holder's ownership of voting
capital stock of the Company immediately before the merger or consolidation;
(iv) the date any entity, person or group (within the meaning of Section
13(d)(3) or Section 14(d)(2) of the Exchange Act), other than (A) the Company,
(B) any of its Subsidiaries, (C) any of the holders of the capital stock of the
Company, as determined on the date that this Plan is adopted by the Board, (D)
any employee benefit plan (or related trust) sponsored or maintained by the
Company or any of its Subsidiaries or (E) any Affiliate of any of the foregoing,
shall have acquired beneficial ownership of, or shall have acquired voting
control over more than fifty percent (50%) of the outstanding shares of the
Company's voting capital stock (on a fully diluted basis), unless the
transaction pursuant to which such person, entity or group acquired such
beneficial ownership or control resulted from the original issuance by the
Company of shares of its voting capital stock and was approved by at least a
majority of directors who shall have been members of the Board for at least
twelve (12) months prior to the date of such approval; (v) the first day after
the date of this Plan when directors are elected such that there shall have been
a change in the composition of the Board such that a majority of the Board shall
have been members of the Board for less than twelve (12) months, unless the
nomination for election of each new director who was not a director at the
beginning of such twelve (12) month period was approved by a vote of at least
sixty percent (60%) of the directors then still in office who were directors at
the beginning of such period; or (vi) the date upon which the Board determines
(in its sole discretion) that based on then current available information, the
events described in clause (iv) are reasonably likely to occur.

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

         (f) "Committee" shall mean the Committee appointed by the Board in
accordance with Section 3(a) of the Plan, if one is appointed, in which event
the Committee shall possess the power and authority of the Board with respect to
the Plan as set forth in Section 3(b) of the Plan.

         (g) "Common Stock" shall mean the common stock of the Company, [no] par
value per share.

         (h) "Company" shall mean BLUEGILL TECHNOLOGIES, INC., a Delaware
corporation, and any successor in interest that agrees to assume and maintain
the Plan.

         (i) "Consultant" shall mean: (i) any person associated with the Company
or any Subsidiary of the Company who is engaged by the Company or the Subsidiary
to render services and is compensated by the Company or the Subsidiary for such
services, including but not limited to, an advisor or independent contractor;
and (ii) any director of the Company or any Subsidiary of the Company whether or
not compensated for such services in person's capacity as a director; provided,
however, that in the event the Company registers any class of an equity security
pursuant to the Exchange Act, the term "Consultant" will thereafter not include
any director who is not compensated for his services or is paid only a
director's fee by the Company.

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         (j) "Disability" or "Disabled" with respect to an Optionee shall mean
(i) when the Optionee is determined to be disabled within the meaning of any
long-term disability policy or program sponsored by the Company covering the
Optionee, as in effect as of the date of such determination, or (ii) if no such
policy or program shall be in effect, (A) if the Optionee is an employee of the
Company, when the Optionee is unable to resume full-time employment with the
Company for a continuous period of six (6) consecutive months or six (6) months
in any twelve (12) consecutive month period by reason of a physical or mental
impairment, or (B) if the Optionee is not an employee of the Company, when the
Optionee is unable to engage in any substantial gainful activity by reason of a
physical or mental impairment that can be expected to result in death or that
has lasted or can be expected to last for a continuous period of not less than
six (6) months or six (6) months in any twelve (12) consecutive month period.
The determination of whether an Optionee is Disabled pursuant to subparagraph
(ii) shall be determined by the Board of Directors, whose determination shall be
conclusive; provided that, (A) if an Optionee is bound by the terms of an
employment agreement between the Optionee and the Company, then whether the
Optionee is "Disabled" for purposes of the Plan shall be determined in
accordance with the procedures set forth in said employment agreement, if such
procedures are therein provided; and (B) an Optionee bound by such an employment
agreement shall not be determined to be Disabled under the Plan any earlier than
he or she would be determined to be disabled under his or her employment
agreement.

         (k) "Disinterested Person" shall have the meaning set forth in Rule
16(b)-3(c)(2)(i), as amended, promulgated under Section 16 of the Exchange Act.

         (l) "Employee" shall mean any person, including but not limited to,
officers and directors, employed by the Company or any Subsidiary of the
Company. The payment of directors' fees by the Company shall not be sufficient
to constitute "employment" by the Company.

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

         (n) "Fair Market Value" shall mean, as of any date, the fair market
value of a share of Common Stock as determined pursuant to Section 7 hereof.

         (o) "Incentive Stock Option" shall mean any Option that is intended to
be and is designated as an incentive stock option within the meaning of Section
422 of the Code.

         (p) "Non-Qualified Stock Option" shall mean any Option that is not
intended to qualify as an Incentive Stock Option.

         (q) "Option" shall mean an Incentive Stock Option or a Non-Qualified
Stock Option as the case may be, granted pursuant to the Plan.

         (r) "Option Agreement" shall mean the written agreement by and between
the Company and an Optionee under which Optionee may purchase the Shares
pursuant to the exercise of an Option.

                                      -3-

<PAGE>   7
         (s) "Optionee" shall mean an Employee or Consultant to whom an Option
is granted.

         (t) "Plan" shall mean this Amended and Restated BlueGill Technologies,
Inc. 1998 Incentive and Non-Qualified Stock Option Plan, as amended from time to
time.

         (u) "Public Offering" shall mean the consummation of a firm commitment
underwritten public offering of equity securities of the Company registered
under the Securities Act.

         (v) "Sale of the Company" shall mean the earliest of: (i) the closing
of a sale, transfer or other disposition of all or substantially all of the
shares of the capital stock then outstanding of the Company (except if such
transferee is then an Affiliate); (ii) the closing of a sale, transfer or other
disposition of all or substantially all of the assets of the Company (except if
such transferee is then an Affiliate); or (iii) the merger or consolidation of
the Company with or into another corporation (except an Affiliate), other than a
merger or consolidation of the Company in which the holders of shares of the
Company's voting capital stock outstanding immediately before such merger or
consolidation hold greater than fifty percent (50%) of the surviving entity's
voting capital stock after such consolidation or merger.

         (w) "Securities Act" shall mean the Securities Act of 1933, as amended.

         (x) "Securities Broker" means a registered securities broker acceptable
to the Board who agrees to effect the cashless exercise of an Option.

         (y) "Share" or "Shares" shall mean a share or shares of Common Stock,
as adjusted in accordance with Section 8 of the Plan, that is allocated to the
Plan.

         (z) "Stock Purchase and Restriction Agreement" shall mean an agreement
in such form or forms as the Board (subject to the terms and conditions of this
Plan) may from time to time approve, which an Optionee shall be required to
execute as a condition of purchasing Shares upon the exercise of an Option.

         (aa) "Subsidiary" shall mean, whether now or hereafter existing, a
subsidiary or parent corporation of the Company as such term is defined in
Sections 424(e), (f) and (g) of the Code. Subsidiary shall also mean BlueGill
Technologies Corp., an Ontario corporation.

         (bb) "Vested Amount" shall mean, with respect to each Option, a
percentage of the shares for which the Option has become exercisable (subject to
the further terms of the Plan) by application of the schedule set forth in
Section 4(b).

         Section 3.  Administration.

         (a) Procedure. The Plan shall be administered by the Board or a
Committee consisting of not less than two (2) persons appointed by the Board,
which shall be the Administrator. Members

                                      -4-

<PAGE>   8
of the Board or the Committee who are eligible for Options or who have been
granted Options may vote on any matters affecting the administration of the Plan
or the grant of any Options pursuant to the Plan, except that no such member
shall act upon the granting of an Option to himself or herself, but any such
member may be counted in determining the existence of a quorum at any meeting of
the Board or the Committee during which action is taken with respect to the
granting of Options to such member. In the event the Company has a class of
equity securities registered under the Exchange Act and, unless the Board
determines otherwise, from the effective date of such registration until six (6)
months after the termination of such registration, all grants of options to
eligible officers or directors of the Company shall be made solely by the Board,
only if each member is a Disinterested Person or, otherwise, by a Committee of
two (2) or more directors, each of whom is a Disinterested Person.

         (b) Committee. If a Committee is appointed by the Board, then the
Committee shall possess the power and authority of the Board in administering
the Plan on behalf of the Board, subject to the terms and conditions as the
Board may prescribe. Members of the Committee may or may not be members of the
Board and shall serve for such period of time as the Board may determine. From
time to time, the Board may increase the size of the Committee and appoint
additional members thereto, remove members (with or without cause) and appoint
new members in substitution therefor, fill vacancies however caused, or remove
all members of the Committee and thereafter directly administer the Plan.

         (c) Powers of the Administrator. Subject to the provisions of the Plan
(and, in the case of the Committee, the specific duties delegated by the Board
to such Committee), the Administrator shall have the authority, in its sole
discretion:

                  (1) to determine whether and to what extent Options are
         granted hereunder;

                  (2) to determine the Fair Market Value of the Common Stock
         based upon review of relevant information and in accordance with
         Section 7 of the Plan;

                  (3) to determine the exercise price of the Options in
         accordance with Section 6(b) of the Plan;

                  (4) to select the Optionees to whom Options may from time or
         time be granted;

                  (5) to determine the number of Shares to be subject to each
         Option granted hereunder;

                  (6) to prescribe, amend and rescind rules and regulations
         relating to the Plan;

                  (7) to determine the terms and provisions of each Option
         granted under the Plan, each Option Agreement and each other agreement
         that in the sole discretion of the Administrator

                                      -5-

<PAGE>   9
         may be required (all of which agreements need not be identical with the
         terms of other Options, Option Agreements or other agreements);

                  (8) to determine the circumstances under which the vesting or
         exercise date of an Option will be accelerated;

                  (9) to interpret the Plan or any agreement entered into with
         respect to the grant or exercise of Options;

                  (10) to authorize any person to execute on behalf of the
         Company any instrument required to effectuate the grant of an Option
         previously granted by the Board or to take such other actions as may be
         necessary or appropriate with respect to the Company's rights pursuant
         to Options or agreements relating to the granting or exercise thereof;

                  (11) to determine whether and under what circumstances an
         Option may be exercised without a payment of cash under Section 6(c)
         hereof;

                  (12) to terminate the Plan in the event of a Change of Control
         or Sale of the Company; and

                  (13) to make such other determinations and establish such
         other procedures as it deems necessary or advisable for the
         administration of the Plan.

         (d) Effect of the Administrator's Decision. All decisions,
determinations and interpretations of the Administrator pursuant to the
provisions of the Plan shall be final and binding on all Optionees and any other
holders of Options.

         (e) Limitation of Liability. Notwithstanding anything herein to the
contrary, no member of the Board or the Committee shall be liable for any good
faith determination, act or failure to act in connection with the Plan or any
Option awarded hereunder.

         Section 4.  Eligibility.

         (a) Eligible Persons. Options may be granted at any time and from time
to time to any Employee or Consultant who shall be selected by the
Administrator. Any grant of Options may include or exclude any Employee or
Consultant as the Administrator shall determine in its sole discretion.
Consultants who are not also Employees of the Company are eligible to be granted
Non-Qualified Stock Options under the Plan but are not eligible to be granted
Incentive Stock Options under the Plan.

         (b) Vesting and Exercisability of Options. Subject to the provisions of
Section 6 hereof and except to the extent the Board provides otherwise, each
Option shall not be exercisable until

                                      -6-

<PAGE>   10
vested and shall vest as follows: twenty percent (20%) on the first anniversary
of the date of grant and five percent (5%) on each three month anniversary
following that first anniversary.

         The Vested Amount of each Option shall be exercisable on and after that
portion of the Option becomes vested. The unvested portion of each Option may
not be exercised.

         (c) Effect Upon Engagement. The Plan will not and does not confer upon
any Optionee any right with respect to the continuation of any employment,
consulting or any other relationship with the Company nor will it interfere in
any way with such Optionee's right or the Company's right to terminate that
Optionee's employment, consulting or other relationship with the Company at any
time, whether with or without cause.

         Section 5.  Stock Subject to the Plan.

         (a) Maximum Number of Shares. Subject to the provisions of Section 8 of
the Plan, the maximum aggregate number of Shares which may be optioned and sold
under the Plan is four million (4,000,000) Shares. The Shares may be authorized,
but unissued or reacquired, Common Stock.

         (b) Return of Shares to the Plan. If an Option expires, is terminated
or become unexercisable for any reason without having been exercised in full,
then the unpurchased Shares subject thereto shall, unless the Plan shall have
been terminated, return to the Plan and become available for future grants under
the Plan.

         Section 6. Terms and Conditions of Options. Each Option granted under
the Plan shall be authorized by the Administrator and shall be evidenced by an
Option Agreement, which shall state or incorporate by reference all other terms
and conditions of the Plan including, without limitation, the following terms
and conditions:

         (a) Number of Shares. The Option Agreement shall state the number of
Shares subject to the Option.

         (b) Option Exercise Price. The per Share exercise price for the Shares
to be issued pursuant to the exercise of an Incentive Stock Option shall be
stated in the Option Agreement and shall be no less than the Fair Market Value
per share of the Common Stock on the date such Option is granted, without regard
to any restriction other than a restriction that by its terms will never lapse;
provided, however, that any Incentive Stock Option granted under this Plan to an
Employee who, at the time such Option is granted, owns more than ten percent
(10%) of the current total combined voting power of all classes of the capital
stock of the Company, shall have an exercise price per Share of not less than
one hundred ten percent (110%) of the Fair Market Value of the Common Stock on
the date such Option is granted. The per Share exercise price for the Shares to
be issued pursuant to the exercise of a Non-Qualified Stock Option shall be
stated in the Option Agreement and shall be determined by the Administrator.

                                      -7-

<PAGE>   11
         (c) Consideration. The consideration to be paid for the Shares to be
issued upon the exercise of an Option, including the method of payment, shall be
determined by the Administrator and may consist entirely of: (i) cash; (ii)
check; (iii) authorization from the Company to retain, from the total number of
Shares for which the Option is exercised, that number of Shares having a Fair
Market Value on the date of exercise equal to the exercise price for the total
Shares for which the Option is exercised; (iv) to the extent permitted under the
Exchange Act, the delivery of a properly executed exercise notice together with
irrevocable instructions to a Securities Broker to promptly deliver to the
Company the amount of sale or loan proceeds required to pay the exercise price;
or (v) such other consideration and method of payment as the Administrator may
from time to time determine. In making its determination as to the type of
consideration to accept, the Administrator shall consider if the acceptance of
such consideration may be reasonably expected to benefit the Company.

         (d) Form of Option. The Option Agreement shall state whether the Option
granted thereunder is intended to be an Incentive Stock Option or a
Non-Qualified Stock Option and shall, subject to the terms of the Option
Agreement, constitute a binding determination as to the form of Option granted
thereunder.

         (e) Exercise of an Option.

                  (1) Unless otherwise provided by the Administrator, the Vested
         Amount of any Option granted hereunder shall be exercisable, in whole
         or in part, at such times and under such further conditions as may be
         determined by the Administrator and as set forth in the Option
         Agreement.

                  (2) An Option may not be exercised for a fraction of a Share.
         In the event of a "cashless exercise" as permitted under Section 6(c)
         hereof, the Company shall issue shares for the whole number of shares
         acquired through such cashless exercise and cash for the value of any
         fractional share.

                  (3) An Option may not be exercised after the date of
         expiration of its term as shall be set forth in the Option Agreement.

                  (4) An Option shall be deemed to have been exercised when
         written notice of such exercise has been received by the Company at its
         principal executive office in accordance with the terms of the Option
         Agreement by the person entitled to exercise the Option, and full
         payment for the Shares with respect to which the Option is to be
         exercised has been received by the Company, accompanied by an executed
         Stock Purchase and Restriction Agreement and any other agreements
         required by the Administrator or the terms of the Plan and/or Option
         Agreement. An Optionee shall have no right to vote or receive dividends
         and shall have no other rights as a shareholder with respect to the
         Shares, notwithstanding the exercise of the Option, until the issuance
         (as evidenced by the appropriate entry on the books of the Company or
         of a duly authorized transfer agent of the Company) of the stock
         certificate evidencing such Shares. No adjustment shall be made for a

                                      -8-

<PAGE>   12

         dividend or other right for which the record date is prior to the date
         stock certificate with respect to the Shares is issued.

                  (5) As soon as practicable after the proper exercise of an
         Option in accordance with the provisions of the Plan, the Company
         shall, without transfer or issue tax to the Optionee, deliver to the
         Optionee at the principal executive office of the Company or such other
         place as shall be mutually agreed upon between the Company and the
         Optionee, a certificate or certificates representing the Shares for
         which the Option shall have been exercised. The time of issuance and
         delivery of the certificate(s) representing the Shares for which the
         Option shall have been exercised may be postponed by the Company for
         such period as may be required by the Company, with reasonable
         diligence, to comply with any applicable listing requirements of any
         national or regional securities exchange or any law or regulation
         applicable to the issuance or delivery of such Shares.

                  (6) The exercise of an Option in any manner shall result in a
         decrease in the number of Shares that thereafter may be available both
         for purposes of the Plan and for sale under the Option by the number of
         Shares as to which the Option is exercised.

         (f) Termination of Options.

                  (1) Termination in General. Unless sooner terminated as
         provided in this Plan, each Option shall be exercisable for the period
         of time as shall be determined by the Administrator and set forth in
         the Option Agreement and shall be void and unexercisable thereafter.

                  (2) Termination of Relationship with the Company. Unless
         sooner terminated as provided in this Plan, in the event of the
         termination of an Optionee's employment or consulting relationship with
         the Company (as the case may be) for any reason other than the death or
         Disability of the Optionee, such Optionee may, within three (3) months
         (or such other period of time as is determined by the Administrator)
         from the date of such termination (but in no event later than the
         expiration date of the term of such Option as set forth in the Option
         Agreement), exercise the Option up to the Vested Amount as of the date
         of termination, but only to the extent that the Optionee was entitled
         to exercise the Option on the date of such termination. To the extent
         the Optionee was not entitled to exercise the Option on the date of
         such termination, or if the Optionee does not exercise such Option to
         the extent so entitled within the time specified herein, the Option
         will terminate.

                  (3) Death or Disability. Unless sooner terminated as provided
         in this Plan, in the event of the death or Disability of an Optionee
         while employed or engaged by the Company (as the case may be), Options
         held by such Optionee that are exercisable on the date of Disability or
         death shall be exercisable up to the Vested Amount as of the date of
         Disability or death for a period of twelve (12) months commencing on
         the date of the Optionee's Disability or death. Such Options may be
         exercisable by the Optionee or his or her legal guardian or
         representative or, in the case of death, by his or her executor(s) or
         administrator(s); provided, however, if such disabled Optionee shall
         commence any employment or engagement during such twelve (12) month
         period with or by a competitor of the Company (including, but not
         limited to, full or part-time employment or

                                      -9-

<PAGE>   13

         independent consulting work), as determined solely in the judgment of
         the Administrator, then all Options held by such Optionee that have not
         yet been exercised shall terminate immediately upon the commencement
         thereof.

                  (4) Agreement to Terminate. Options may be terminated at any
         time by agreement between the Company and the Optionee.

         (g) Other Provisions.

                  (1) Notwithstanding any provision in this Plan or an Option
         Agreement to the contrary, no Option granted to any Optionee under this
         Plan shall be treated as an Incentive Stock Option to the extent that
         such Option would cause the aggregate Fair Market Value of all Shares
         with respect to which Incentive Stock Options are exercisable by such
         Optionee for the first time during any calendar year (determined as of
         the date of grant of each such Option) to exceed $100,000. For purposes
         of determining whether an Incentive Stock Option granted to an Optionee
         would cause the aggregate Fair Market Value to exceed the $100,000
         limitation, such Incentive Stock Options shall be taken into account in
         the order granted. For purposes of this subsection, Incentive Stock
         Options granted to an Optionee shall include all incentive stock
         options under all plans of the Company that are incentive stock option
         plans within the meaning of Section 422 of the Code. Options may be
         exercised in any order elected by the Optionee, whether or not the
         Optionee holds any unexercised Options under this Plan or any other
         plan of the Company.

                  (2) Notwithstanding any other provision of this Plan or an
         Option Agreement to the contrary, no Incentive Stock Option shall be
         (A) granted under this Plan after ten (10) years from the date on which
         this Plan is adopted by the Board, or (B) exercisable more than ten
         (10) years from the date of grant; provided that if an Incentive Stock
         Option shall be granted under this Plan to any Employee who, at the
         time of the grant of such Option, owns stock possessing more than ten
         percent (10%) of the total combined voting power for all classes of the
         Company's capital stock, the foregoing clause (B) shall be deemed
         modified by substituting the term "five (5) years" for the term "ten
         (10) years" that appears therein.

         Section 7. Fair Market Value of Common Stock. The Fair Market Value of
a Share of Common Stock, as of any date, shall be determined as follows:

         (a) If the Shares of Common Stock are listed on a national or regional
securities exchange or traded through NASDAQ/NMS, then the Fair Market Value of
a share of Common Stock shall be the closing price for a share of Common Stock
on the principal such exchange or on NASDAQ/NMS, as reported in The Wall Street
Journal or such other source as the Administrator deems reliable on the relevant
valuation date, or if there is no trading on that date, on the next trading
date.

         (b) If the Shares of Common Stock are traded in the over-the-counter
market, then the Fair Market Value of a share of Common Stock shall be the mean
of the bid and asked prices for a

                                      -10-
<PAGE>   14

share of Common Stock on the relevant valuation date as reported in The Wall
Street Journal or other source the Administrator deems reliable (or, if not so
reported, as otherwise reported by the National Association of Securities
Dealers Automated Quotations ("NASDAQ") System or the NASD OTC Bulletin Board),
or if there is no trading on such date, on the next trading date.

         (c) In the absence of an established market for the Common Stock, the
Fair Market Value of a share of Common Stock shall be determined by the
Administrator in its sole discretion.

         Section 8.  Adjustments.

         (a) Adjustments. Subject to any required action by the shareholders of
the Company, the number of Shares covered by each outstanding Option, the number
of Shares that have been authorized for issuance under the Plan but as to which
no Options have yet been granted or that have been returned to the Plan upon
cancellation or expiration of an Option, and the price per Share of the Common
Stock covered by an Option will each be proportionately adjusted for any
increase or decrease in the number of outstanding shares of Common Stock
resulting from stock splits, reverse stock splits, stock dividends,
reclassifications and recapitalizations. Such adjustment shall be made by the
Board whose determination in that respect will be final, binding and conclusive.
Except as provided herein, no issuance by the Company of shares of stock of any
class or securities convertible into shares of stock of any class, will affect,
and no adjustment by reason thereof will be made with respect to, the number or
price of shares of Common Stock subject to an Option.

         (b) No Fractional Shares. No fractional Shares shall be issuable on
account of any action aforesaid, and the aggregate number of Shares into which
Shares then covered by the Option, when changed as the result of such action,
shall be reduced to the number of whole Shares resulting from such action,
unless the Board, in its sole discretion, shall determine to issue scrip
certificates in respect to any fractional Shares, which scrip certificates shall
be in a form and have such terms and conditions as the Board in its discretion
shall prescribe.

         Section 9. Rights as a Shareholder. An Optionee shall have no rights as
a shareholder of the Company and shall not have the right to vote nor receive
dividends with respect to any Shares subject to an Option until such Option has
been exercised and a stock certificate with respect to the Shares purchased upon
such exercise of the Option has been issued to Optionee as set forth in Section
6(e)(4) and (5) hereof.

         Section 10. Forfeiture. Notwithstanding any other provision of this
Plan, if an Optionee's employment or consulting relationship with the Company
(as the case may be) is terminated by the Company and the Board makes a
determination that the Optionee (i) has engaged in any type of disloyalty to the
Company, including without limitation, fraud, embezzlement, theft, or dishonesty
in the course of Optionee's employment or consulting relationship, (ii) has been
convicted of a felony or other crime involving a breach of trust or fiduciary
duty owed to the Company, (iii) has made an unauthorized disclosure of trade
secrets or confidential information of the Company, or (iv) has breached any
employment agreement, consulting agreement, confidentiality agreement,
assignment

                                      -11-
<PAGE>   15
of inventions or work product agreement, non-competition agreement or any other
agreement with the Company in any material respect, then, at the election of the
Board, all unexercised Options held by the Optionee (whether or not then
exercisable) shall terminate. In the event of such an election by the Board, in
addition to immediate termination of all unexercised Options, the Optionee shall
forfeit all Shares for which the Company has not yet delivered stock
certificates to the Optionee and the Company shall refund to the Optionee the
exercise price paid to it upon exercise of the Option with respect to such
Shares. Notwithstanding anything herein to the contrary, the Company may
withhold delivery of stock certificates pending the resolution of any inquiry
that could lead to a finding resulting in forfeiture.

         Section 11. Time of Granting Options. The date of grant of an Option
shall, for all purposes, be the date on which the Administrator makes the
determination to grant the Option or such other date as is determined by the
Administrator. Notice of the determination shall be given to each Optionee to
whom an Option is so granted within a reasonable time after the date of such
grant.

         Section 12. Modification, Extension, Renewal of Option. Subject to the
terms and conditions of the Plan, the Board may modify, extend or renew an
Option, or accept the surrender of an Option (to the extent not theretofore
exercised); provided that no Incentive Stock Option may be modified, extended or
renewed if such action would cause such Option to cease to be an incentive stock
option within the meaning of Section 422 of the Code.

         Section 13. Transferability. No Option may be sold, pledged, assigned,
transferred or disposed of in any manner other than by will or by the laws of
descent and distribution. During the lifetime of the Optionee, his or her
Options shall be exercisable only by the Optionee, or, in the event of the
Optionee's legal incapacity or Disability, by the legal guardian or
representative of the Optionee.

         Section 14. Power of Board if Change of Control or Sale of the Company.
Notwithstanding anything to the contrary set forth in this Plan, in the event of
a Change of Control or Sale of the Company, the Board shall have the right, in
its sole discretion, to accelerate the vesting of all Options that have not
vested as of the date of the Change of Control or sale of the Company and/or to
establish an earlier date for the expiration of the exercise of an Option
(notwithstanding a later expiration of exercisability set forth in an Option
Agreement). In addition, in the event of a Change of Control, the Board shall
have the right, in its sole discretion, subject to and conditioned upon a Sale
of the Company, to (1) arrange for the successor company (or other entity) to
assume all of the rights and obligations of the Company under this Plan; or (2)
terminate this Plan and (a) to pay to all Optionees cash with respect to those
Options that are vested as of the date of the Sale of the Company in an amount
equal to the difference between the Option Price and the Fair Market Value of a
Share of Common Stock (determined as of the date the Plan is terminated)
multiplied by the number of Options that are vested as of the date of the Sale
of the Company which are held by the Optionee as of the date of the Sale of the
Company, or (b) to arrange for the exchange of all Options for options to
purchase common stock in the successor corporation, or (c) to distribute to each
Optionee other property in an amount equal to and in the same form as the
Optionee would have

                                      -12-
<PAGE>   16
received from the successor corporation if the Optionee had owned the Shares
subject to Options that are vested as of the date of the Sale of the Company
rather than the Option at the time of the Sale of the Company. The form of
payment or distribution to the Optionee pursuant to this Section shall be
determined by the Board in its sole discretion.

         Section 15. Amendment or Termination of the Plan. Insofar as permitted
by law and the Plan, the Board may at any time suspend, terminate, discontinue,
alter or amend the Plan in any respect whatsoever; provided, however, that
without prior approval of the shareholders, no such revision or amendment may
change the aggregate number of Shares for which Options may be granted
hereunder, change the designation of the class of Optionees eligible to receive
Options or decrease the price at which Options may be granted. Any other
provision of this Section notwithstanding, the Board specifically is authorized
to adopt any amendment to this Plan deemed by the Board to be necessary or
advisable to assure that the Incentive Stock Options or the Non-Qualified Stock
Options available under the Plan continue to be treated as such, respectively,
under all applicable laws.

         Section 16. Application of Funds. The proceeds received by the Company
from the sale of Shares pursuant to the exercise of Options shall be used for
general corporate purposes.

         Section 17. No Obligation to Exercise Option. The granting of an Option
shall impose no obligation upon the Optionee to exercise such Option.

         Section 18. Approval of Shareholders. This Plan shall become effective
on the date that it is adopted by the Board; provided that it shall become
limited to a non-qualified stock option plan if it is not approved by the
shareholders of a majority of the Company's outstanding voting stock within one
year (365 days) of its adoption by the Board. The Board may grant Options
hereunder prior to approval of the Plan, or any material amendments thereto, by
the holders of a majority of the Company's outstanding voting stock; provided
that any and all Options so granted shall be converted into non-qualified stock
options if the Plan, or a material amendment, is not approved by such
shareholders within 365 days of its adoption or material amendment.

         Section 19.  Conditions Upon Issuance of Shares.

         (a) Options granted under the Plan are conditioned upon the Company
obtaining any required permit or order from appropriate governmental agencies,
authorizing the Company to issue such Options and Shares issuable upon the
exercise thereof.

         (b) Shares shall not be issued pursuant to the exercise of an Option
unless the exercise of such Option and the issuance and delivery of such Shares
pursuant thereto shall comply with all relevant provisions of law, including,
without limitation, the Securities Act, the Exchange Act, the rules and
regulations promulgated thereunder, and the requirements of any stock exchange
upon which the Shares may then be listed, and shall be further subject to the
approval of counsel for the Company with respect to such compliance.

                                      -13-
<PAGE>   17
         (c) As a condition to the exercise of an Option, the Board may require
the person exercising such Option to execute an agreement with, and/or may
require the person exercising such Option to make any representation and/or
warranty to, the Company as may be, in the judgment of counsel to the Company,
required under applicable law or regulation, including but not limited to, a
representation and warranty that the Shares are being purchased only for
investment and without any present intention to sell or distribute such Shares
if, in the opinion of counsel for the Company, such a representation and
warranty is appropriate under any of the aforementioned relevant provisions of
law.

         Section 20.  Reservation of Shares.

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

         (b) The Company, during the term of this Plan, shall use its best
efforts to seek to obtain from appropriate regulatory agencies any requisite
authorization in order to issue and sell such number of Shares as shall be
sufficient to satisfy the requirements of the Plan. The inability of the Company
to obtain from any such regulatory agency having jurisdiction the requisite
authorization(s) deemed by the Company's counsel to be necessary for the lawful
issuance and sale of any Shares hereunder, or the inability of the Company to
confirm to its satisfaction that any issuance and sale of any Shares hereunder
will meet applicable legal requirements, shall relieve the Company of any
liability in respect to the failure to issue or sell such Shares as to which
such requisite authority shall not have been obtained.

         Section 21. Other Agreements. Options shall be evidenced by an Option
Agreement in such form or forms as the Administrator (subject to the terms and
conditions of this Plan) may from time to time approve, which Option Agreement
shall evidence and reflect the terms and conditions of an Option as set forth in
Section 6 hereof. Upon exercise of an Option, the Optionee shall execute and
deliver to the Company a Stock Purchase and Restriction Agreement in such form
or forms as the Administrator shall approve from time to time. The Administrator
may, from time to time, require such other agreements in connection with the
Option as it, in its sole discretion, deems advisable. The Option Agreement and
the Stock Purchase and Restriction Agreement and any other agreement required by
the Plan or the Option Agreement, as determined by the Board or the
Administrator, may contain such other provisions as the Board or the
Administrator, in its discretion deems advisable and that are not inconsistent
with the provisions of this Plan, including, without limitation, restrictions
upon or conditions precedent to the exercise of the Option.

         Section 22.  Taxes, Fees, Expenses and Withholding.

         (a) The Company shall pay all original issue and transfer taxes (but
not income taxes, if any) with respect to the grant of an Option and/or the
issue and transfer of Shares pursuant to the exercise thereof, and all other
fees and expenses necessarily incurred by the Company in connection

                                      -14-
<PAGE>   18
therewith, and will, from time to time, use its best efforts to comply with all
laws and regulations that, in the opinion of counsel for the Company, shall be
applicable thereto.

         (b) The granting of Options hereunder and the issuance of Shares
pursuant to the exercise thereof is conditioned upon the Company's reservation
of the right to withhold in accordance with any applicable law, from any
compensation or other amounts payable to the Optionee, any taxes required to be
withheld under federal, state or local law as a result of the grant or exercise
of such Option or the sale of the Shares issued upon exercise thereof. To the
extent that compensation or other amounts, if any, payable to the Optionee is
insufficient to pay any taxes required to be so withheld, the Company may, in
its sole discretion, require the Optionee (or such other person entitled herein
to exercise the Option), as a condition to the exercise of an Option, to pay in
cash to the Company an amount sufficient to cover such tax liability or
otherwise to make adequate provision for the Company's satisfaction of its
withholding obligations under federal, state and local law.

         Section 23. Notices. Any notice to be given to the Company pursuant to
the provisions of this Plan shall be addressed to the Company in care of its
Secretary (or such other person as the Company may designate from time to time)
at its principal executive office, and any notice to be given to an Optionee
shall be delivered personally, by facsimile or addressed to the Optionee at the
address given beneath the signature of the Optionee on his or her Option
Agreement, or at such other address as such Optionee or his or her permitted
transferee (upon the transfer of the Shares) may hereafter designate in writing
to the Company. Any such notice shall be deemed duly given when delivered, when
acknowledged received by sender's facsimile machine, or when enclosed in a
properly sealed envelope or wrapper addressed as aforesaid, registered or
certified, and deposited, postage and registry or certification fee prepaid, in
a post office or branch post office regularly maintained by the United States
Postal Service. It shall be the obligation of each Optionee and each permitted
transferee holding Shares purchased upon exercise of an Option to provide the
Secretary of the Company, by letter mailed as provided herein, with written
notice of his or her direct mailing address.

         Section 24. No Enlargement of Employee Rights. This Plan is purely
voluntary on the part of the Company, and the continuance of the Plan shall not
be deemed to constitute a contract between the Company and any Employee or
Consultant, or to be consideration for, or a condition of, the employment or
service of any Employee or Consultant as the case may be. Nothing contained in
this Plan shall be deemed to give any Employee or Consultant the right to be
retained in the employ or service of the Company, or to interfere with the right
of the Company to discharge or retire any Employee or Consultant thereof at any
time. No Employee or Consultant shall have any right to or interest in Options
authorized hereunder prior to the grant thereof to such Employee or Consultant,
and upon such grant such Employee or Consultant shall have only such rights and

                                      -15-
<PAGE>   19
interests as are expressly provided herein, subject, however, to all applicable
provisions of the Company's Certificate of Incorporation, as the same may be
amended from time to time.

         Section 25. Information to Optionees. The Company, upon request, shall
provide without charge to each Optionee copies of such annual and periodic
reports as are provided by the Company to its shareholders generally.

         Section 26. Availability of Plan. A copy of this Plan shall be
delivered to the Secretary of the Company and shall be shown to any eligible
person making reasonable inquiry concerning it.

         Section 27. Invalid Provisions. In the event that any provision of this
Plan is found to be invalid or otherwise unenforceable under any applicable law,
such invalidity or unenforceability shall not be construed as rendering any
other provisions contained herein as invalid or unenforceable, and all such
other provisions shall be given full force and effect to the same extent as
though the invalid or unenforceable provision was not contained herein.

         Section 28. Applicable Law. This Plan shall be governed by and
construed in accordance with the laws of the State of Michigan.

         Section 29. Board Action. Notwithstanding anything to the contrary set
forth in this Plan, any and all actions of the Board or Committee, as the case
may be, taken under or in connection with this Plan and any agreements,
instruments, documents, certificates or other writings entered into, executed,
granted, issued and/or delivered pursuant to the terms hereof, shall be subject
to and limited by any and all votes, consents, approvals, waivers or other
actions of all or certain shareholders of the Company or other persons required
pursuant to (a) the Company's Certificate of Incorporation (as the same may be
amended and/or restated from time to time), (b) the Company's Bylaws (as the
same may be amended and/or restated from time to time), and (c) any other
agreement, instrument, document or writing now or hereafter existing, between or
among the Company and its shareholders or other persons (as the same may be
amended from time to time).

         Section 30. Miscellaneous. This Plan is intended to comply with the
conditions and requirements for employee benefit plans under Rule 16b-3, as
promulgated under Section 16 of the Exchange Act.

                                      -16-

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