<DOCUMENT>
<TYPE>EX-4.2
<SEQUENCE>3
<FILENAME>ex4-2.txt
<DESCRIPTION>1999 STOCK OPTION PLAN
<TEXT>

                                 DAG Media, INC.
                        1999 STOCK OPTION PLAN AS AMENDED

      1. Purpose; Types of Awards; Construction.

      The purpose of the DAG Media, Inc. 1999 Stock Option Plan (the "Plan") is
to align the interests of officers, other key employees, consultants and
non-employee directors of DAG Media, Inc. (the "Company") and its subsidiaries
with those of the shareholders of the Company, to afford an incentive to such
officers, employees, consultants and directors to continue as such, to increase
their efforts on behalf of the Company and to promote the success of the
Company's business. To further such purposes, the Committee may grant options to
purchase Common Shares. The provisions of the Plan are intended to satisfy the
requirements of Section 16(b) of the Securities Exchange Act of 1934 and of
Section 162(m) of the Internal Revenue Code of 1986, as amended, and shall be
interpreted in a manner consistent with the requirements thereof, as now or
hereafter construed, interpreted and applied by regulations, rulings and cases.

      2. Definitions.

      As used in this Plan, the following words and phrases shall have the
meanings indicated below:

                  (a) "Agreement" shall mean a written agreement entered into
between the Company and an Optionee in connection with an award under the Plan.

                  (b) "Board" shall mean the Board of Directors of the Company.

                  (c) "Cause" when used in connection with the termination of an
Optionee's employment by the Company or the cessation of an Optionee's service
as a consultant or a member of the Board, shall mean (i) the conviction of the
Optionee for the commission of a felony, (ii) the willful and continued failure
by the Optionee substantially to perform his duties and obligations to the
Company or a Subsidiary (other than any such failure resulting from his
incapacity due to physical or mental illness), or (iii) the willful engaging by
the Optionee in misconduct that is demonstrably injurious to the Company or a
Subsidiary. For purposes of this Section 2(c), no act, or failure to act, on an
Optionee's part shall be considered "willful" unless done, or omitted to be
done, by the Optionee in bad faith and without reasonable belief that his action
or omission was in the best interest of the Company. The Committee shall
determine whether a termination of employment is for Cause for purposes of the
Plan.

                  (d) "Change in Control" shall mean the occurrence of the event
set forth in any of the following paragraphs:

<PAGE>

                              (i) any Person (as defined below) is or becomes
      the beneficial owner (as defined in Rule 13d-3 under the Securities
      Exchange Act of 1934, as amended), directly or indirectly, of securities
      of the Company (not including in the securities beneficially owned by such
      Person any securities acquired directly from the Company or its
      subsidiaries) representing 50% or more of the combined voting power of the
      Company's then outstanding securities; or

                              (ii) the following individuals cease for any
      reason to constitute a majority of the number of directors then serving:
      individuals who, on the date hereof, constitute the Board and any new
      director (other than a director whose initial assumption of office is in
      connection with an actual or threatened election contest, including but
      not limited to a consent solicitation, relating to the election of
      directors of the Company) whose appointment or election by the Board or
      nomination for election by the Company's shareholders was approved or
      recommended by a vote of at least two-thirds (2/3) of the directors then
      still in office who either were directors on the date hereof or whose
      appointment, election or nomination for election was previously so
      approved or recommended; or

                              (iii) there is consummated a merger or
      consolidation of the Company or a direct or indirect subsidiary thereof
      with any other corporation, other than (A) a merger or consolidation which
      would result in the voting securities of the Company outstanding
      immediately prior to such merger or consolidation continuing to represent
      (either by remaining outstanding or by being converted into voting
      securities of the surviving entity or any parent thereof), in combination
      with the ownership of any trustee or other fiduciary holding securities
      under an employee benefit plan of the Company, at least 50% of the
      combined voting power of the securities of the Company or such surviving
      entity or any parent thereof outstanding immediately after such merger or
      consolidation, or (B) a merger or consolidation effected to implement a
      recapitalization of the Company (or similar transaction) in which no
      Person is or becomes the beneficial owner, directly or indirectly, of
      securities of the Company (not including in the securities beneficially
      owned by such Person any securities acquired directly from the Company or
      its subsidiaries) representing 50% or more of the combined voting power of
      the Company's then outstanding securities; or

                              (iv) the shareholders of the Company approve a
      plan of complete liquidation or dissolution of the Company or there is
      consummated an agreement for the sale or disposition by the Company of all
      or substantially all of the Company's assets, other than a sale or
      disposition by the Company of all or substantially all of the Company's
      assets to an entity, at least 50% of the combined voting power of the
      voting securities of which are owned by Persons in substantially the same
      proportions as their ownership of the Company immediately prior to such
      sale.

            For purposes of this Section 2(d), "Person" shall have the meaning
given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections
13(d) and 14(d) thereof, except that such term shall not include (i) the Company
or any of its subsidiaries, (ii) a trustee or


                                       2
<PAGE>

other fiduciary holding securities under an employee benefit plan of the Company
or any of its subsidiaries, (iii) an underwriter temporarily holding securities
pursuant to an offering of such securities, or (iv) a corporation owned,
directly or indirectly, by the shareholders of the Company in substantially the
same proportions as their ownership of stock of the Company.

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

                  (f) "Committee" shall mean a committee established by the
Board to administer the Plan.

                  (g) "Common Shares" shall mean the common shares, par value
$0.001 per share, of the Company.

                  (h) "Company" shall mean DAG Media, Inc., a corporation
organized under the laws of the State of Delaware, or any successor corporation.

                  (i) "Disability" shall mean an Optionee's inability to perform
his duties with the Company or on the Board by reason of any medically
determinable physical or mental impairment, as determined by a physician
selected by the Optionee and acceptable to the Company.

                  (j) "Exchange Act" shall mean the Securities Exchange Act of
1934, as amended from time to time, and as now or hereafter construed,
interpreted and applied by regulations, rulings and cases.

                  (k) "Fair Market Value" per share as of a particular date
shall mean (i) if the Common Shares are then listed on a national securities
exchange, the closing sales price per Common Shares on the national securities
exchange on which the Common Shares are principally traded for the last
preceding date on which there was a sale of such Common Shares on such exchange,
or (ii) if the Common Shares are then traded in an over-the-counter market, the
closing bid price for the Common Shares in such over-the-counter market for the
last preceding date on which there was a sale of such Common Shares in such
market, or (iii) if the Common Shares are not then listed on a national
securities exchange or traded in an over-the-counter market, such value as the
Committee, in its sole discretion, shall determine.

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

                  (m) "Non-employee Director" shall mean a member of the Board
who is not an employee of the Company.

                  (n) "Nonqualified Option" shall mean an Option that is not an
Incentive Stock Option.


                                       3
<PAGE>

                  (o) "Option" shall mean the right, granted hereunder, to
purchase Common Shares. Options granted by the Committee pursuant to the Plan
may constitute either Incentive Stock Options or Nonqualified Stock Options.

                  (p) "Optionee" shall mean a person who receives a grant of an
Option.

                  (q) "Option Price" shall mean the exercise price of the Common
Shares covered by an Option.

                  (r) "Parent" shall mean any company (other than the Company)
in an unbroken chain of companies ending with the Company if, at the time of
granting an Option, each of the companies other than the Company owns stock
possessing fifty percent (50%) or more of the total combined voting power of all
classes of stock in one of the other companies in such chain.

                  (s) "Plan" shall mean this DAG Media, Inc. 1999 Stock Option
Plan.

                  (t) "Retirement" shall mean the retirement of an Optionee in
accordance with the terms of any tax-qualified retirement plan maintained by the
Company or a Subsidiary in which the Optionee participates. If the Optionee is
not a participant in such a plan, such term shall mean the termination of the
Optionee's employment or cessation of the Optionee's service as a member of the
Board, other than by reason of death, Disability or Cause on or after attainment
of the age of 65.

                  (u) "Rule 16b-3" shall mean Rule 16b-3, as from time to time
in effect, promulgated by the Securities and Exchange Commission under Section
16 of the Exchange Act, including any successor to such Rule.

                  (v) "Subsidiary" shall mean any company (other than the
Company) in an unbroken chain of companies beginning with the Company if, at the
time of granting an Option, each of the companies other than the last company in
the unbroken chain owns stock possessing fifty percent (50%) or more of the
total combined voting power of all classes of stock in one of the other
companies in such chain.

                  (w) "Ten Percent Stockholder" shall mean an Optionee who, at
the time an Incentive Stock Option is granted, owns (or is deemed to own
pursuant to the attribution rules of Section 424(d) of the Code) stock
possessing more than ten percent (10%) of the total combined voting power of all
classes of stock of the Company or any Parent or Subsidiary.

      3. Administration.

      The Plan shall be administered by the Committee, the members of which
shall, except as may otherwise be determined by the Board, be "non-employee
directors" under Rule 16b-3 and "outside directors" under Section 162(m) of the
Code.


                                       4
<PAGE>

      The Committee shall have the authority in its discretion, subject to and
not inconsistent with the express provisions of the Plan, to administer the Plan
and to exercise all the powers and authorities either specifically granted to it
under the Plan or necessary or advisable in the administration of the Plan,
including, without limitation, the authority to grant Options; to determine
which Options shall constitute Incentive Stock Options and which Options shall
constitute Nonqualified Stock Options; to determine the purchase price of the
Common Shares covered by each Option; to determine the persons to whom, and the
time or times at which awards shall be granted; to determine the number of
shares to be covered by each award; to interpret the Plan; to prescribe, amend
and rescind rules and regulations relating to the Plan; to determine the terms
and provisions of the Agreements (which need not be identical) and to cancel or
suspend awards, as necessary; and to make all other determinations deemed
necessary or advisable for the administration of the Plan.

      The Committee may delegate to one or more of its members or to one or more
agents such administrative duties as it may deem advisable, including delegating
to one or more of the Company's management employees the authority to grant
Options to employees who are not "insiders" for purposes of Section 16 of the
Exchange Act and who are not "covered employees" for purposes of Section 162(m)
of the Code, and the Committee or any person to whom it has delegated duties as
aforesaid may employ one or more persons to render advice with respect to any
responsibility the Committee or such person may have under the Plan. The Board
shall have sole authority, unless expressly delegated to the Committee, to grant
Options to Non-employee Directors. All decisions, determination and
interpretations of the Committee shall be final and binding on all Optionees of
any awards under this Plan.

      The Board shall have the authority to fill all vacancies, however caused,
in the Committee. The Board may from time to time appoint additional members to
the Committee, and may at any time remove one or more Committee members. One
member of the Committee shall be selected by the Board as chairman. The
Committee shall hold its meetings at such times and places as it shall deem
advisable. All determinations of the Committee shall be made by a majority of
its members either present in person or participating by conference telephone at
a meeting or by written consent. The Committee may appoint a secretary and make
such rules and regulations for the conduct of its business as it shall deem
advisable, and shall keep minutes of its meetings.

      No member of the Board or Committee shall be liable for any action taken
or determination made in good faith with respect to the Plan or any award
granted hereunder.

      4. Eligibility.

      Awards may be granted to officers and other key employees of and
consultants to the Company, and its Subsidiaries, including officers and
directors who are employees, and to Non-employee Directors. In determining the
persons to whom awards shall be granted and the number of shares to be covered
by each award, the Committee shall take into account the duties


                                       5
<PAGE>

of the respective persons, their present and potential contributions to the
success of the Company and such other factors as the Committee shall deem
relevant in connection with accomplishing the purpose of the Plan.

      5. Stock.

      The maximum number of Common Shares reserved for the grant of awards under
the Plan shall be 414,000, subject to adjustment as provided in Section 9
hereof. Such shares may, in whole or in part, be authorized but unissued shares
or shares that shall have been or may be required by the Company.

      If any outstanding award under the Plan should for any reason expire, be
canceled or be forfeited without having been exercised in full, the Common
Shares allocable to the unexercised, canceled or terminated portion of such
award shall (unless the Plan shall have been terminated) become available for
subsequent grants of awards under the Plan.

      6. Terms and Conditions of Options.

      Each Option granted pursuant to the Plan shall be evidenced by an
Agreement, in such form and containing such terms and conditions as the
Committee shall from time to time approve, which Agreement shall comply with and
be subject to the following terms and conditions, unless otherwise specifically
provided in such Option Agreement:

            (a) Number of Shares. Each Option Agreement shall state the number
of Common Shares to which the Option relates.

            (b) Type of Option. Each Option Agreement shall specifically state
that the Option constitutes an Incentive Stock Option or a Nonqualified Stock
Option.

            (c) Option Price. Each Option Agreement shall state the Option
Price, which shall not be less than one hundred percent (100%) of the Fair
Market Value of the Common Shares covered by the Option on the date of grant
unless, with respect to Nonqualified Stock Options, otherwise determined by the
Committee. The Option Price shall be subject to adjustment as provided in
Section 9 hereof. The date as of which the Committee adopts a resolution
expressly granting an Option shall be considered the day on which such Option is
granted, unless such resolution specifies a different date.

            (d) Medium and Time of Payment. The Option Price shall be paid in
full, at the time of exercise, in cash or in Common Shares then owned by the
Optionee having a Fair Market Value equal to such Option Price or in a
combination of cash and Common Shares or, unless the Committee shall determine
otherwise, by a cashless exercise procedure through a broker-dealer.

            (e) Exercise Schedule and Period of Options. Each Option Agreement
shall provide the exercise schedule for the Option as determined by the
Committee; provided,


                                       6
<PAGE>

however, that, the Committee shall have the authority to accelerate the
exercisability of any outstanding Option at such time and under such
circumstances as it, in its sole discretion, deems appropriate. The exercise
period shall be ten (10) years from the date of the grant of the Option unless
otherwise determined by the Committee; provided, however, that, in the case of
an Incentive Stock Option, such exercise period shall not exceed ten (10) years
from the date of grant of such Option. The exercise period shall be subject to
earlier termination as provided in Sections 6(f) and 6(g) hereof. An Option may
be exercised, as to any or all full Common Shares as to which the Option has
become exercisable, by written notice delivered in person or by mail to the
Secretary of the Company, specifying the number of shares of Common Shares with
respect to which the Option is being exercised. Notwithstanding any other
provision of this Plan, no Option granted hereunder may be exercised prior to
the consummation of an underwritten public offering of the Company's securities
where the gross proceeds from such offering are in excess of $5 million.

            (f) Termination. Except as provided in this Section 6(f) and in
Section 6(g) hereof, an Option may not be exercised unless (i) with respect to
an Optionee who is an employee of the Company, the Optionee is then in the
employ of the Company or a Subsidiary (or a company or a Parent or Subsidiary
company of such company issuing or assuming the Option in a transaction to which
Section 424(a) of the Code applies), and unless the Optionee has remained
continuously so employed since the date of grant of the Option and (ii) with
respect to an Optionee who is a Non-employee Director, the Optionee is then
serving as a member of the Board or as a member of a board of directors of a
company or a Parent or Subsidiary company of such company issuing or assuming
the Option. In the event that the employment of an Optionee shall terminate or
the service of an Optionee as a member of the Board shall cease (other than by
reason of death, Disability, Retirement or Cause), all Options of such Optionee
that are exercisable at the time of such termination may, unless earlier
terminated in accordance with their terms, be exercised within ninety (90) days
after the date of such termination or service (or such different period as the
Committee shall prescribe).

            (g) Death, Disability or Retirement of Optionee. If an Optionee
shall die while employed by the Company or a Subsidiary or serving as a member
of the Board, or within ninety (90) days after the date of termination of such
Optionee's employment or cessation of such Optionee's service (or within such
different period as the Committee may have provided pursuant to Section 6(f)
hereof), or if the Optionee's employment shall terminate or service shall cease
by reason of Disability or Retirement, all Options theretofore granted to such
Optionee (to the extent otherwise exercisable) may, unless earlier terminated in
accordance with their terms, be exercised by the Optionee or by his beneficiary,
at any time within one year after the death, Disability or Retirement of the
Optionee (or such different period as the Committee shall prescribe). In the
event that an Option granted hereunder shall be exercised by the legal
representatives of a deceased or former Optionee, written notice of such
exercise shall be accompanied by a certified copy of letters testamentary or
equivalent proof of the right of such legal representative to exercise such
Option. Unless otherwise determined by the Committee, Options not otherwise
exercisable on the date of termination of employment shall be forfeited as of
such date.


                                       7
<PAGE>

            (h) Other Provisions. The Option Agreements evidencing awards under
the Plan shall contain such other terms and conditions not inconsistent with the
Plan as the Committee may determine, including penalties for the commission of
competitive acts and a provision providing that no option may be exercised prior
to the consummation of an underwritten initial public offering of the Company's
securities pursuant to a registration statement filed pursuant to the Securities
Act of 1933, as amended.

      7. Non Discretionary Grants.

      Each director of the Company, other than a director who is an officer,
employee or beneficial owner of 10% or more of the Company's Common Shares (or
an officer, director, employee or affiliate thereof), upon first taking office
shall be granted options for 7,000 Common Shares.

      8. Nonqualified Stock Options.

      Options granted pursuant to Section 7 hereof are intended to constitute
Nonqualified Stock Options and shall be subject only to the general terms and
conditions specified in Section 6 hereof.

      9. Incentive Stock Options.

      Options granted pursuant to this Section 9 are intended to constitute
Incentive Stock Options and shall be subject to the following special terms and
conditions, in addition to the general terms and conditions specified in Section
6 hereof. An Incentive Stock Option may not be granted to a Non-employee
Director or a consultant to the Company.

            (a) Value of Shares. The aggregate Fair Market Value (determined as
of the date the Incentive Stock Option is granted) of the Common Shares with
respect to which Incentive Stock Options granted under this Plan and all other
option plans of any subsidiary become exercisable for the first time by each
Optionee during any calendar year shall not exceed $100,000.

            (b) Ten Percent Stockholder. In the case of an Incentive Stock
Option granted to a Ten Percent Stockholder, (i) the Option Price shall not be
less than one hundred ten percent (110%) of the Fair Market Value of the Common
Shares on the date of grant of such Incentive Stock Option, and (ii) the
exercise period shall not exceed five (5) years from the date of grant of such
Incentive Stock Option.

      10. Effect of Certain Changes.

            (a) In the event of any extraordinary dividend, stock dividend,
recapitalization, merger, consolidation, stock split, warrant or rights
issuance, or combination or exchange of such shares, or other similar
transactions, each of the number of Common Shares available for awards, the
number of such shares covered by outstanding awards, and the price per


                                       8
<PAGE>

share of Options, as appropriate, shall be equitably adjusted by the Committee
to reflect such event and preserve the value of such awards; provided, however,
that any fractional shares resulting from such adjustment shall be eliminated.

            (b) Upon the occurrence of a Change in Control, each Option granted
under the Plan and then outstanding but not yet exercisable shall thereupon
become fully exercisable.

      11. Surrender and Exchange of Awards.

      The Committee may permit the voluntary surrender of all or a portion of
any Option granted under the Plan or any option granted under any other plan,
program or arrangement of the Company or any Subsidiary ("Surrendered Option"),
to be conditioned upon the granting to the Optionee of a new Option for the same
number of Common Shares as the Surrendered Option, or may require such voluntary
surrender as a condition precedent to a grant of a new Option to such Optionee.
Subject to the provisions of the Plan, such new Option may be an Incentive Stock
Option or a Nonqualified Stock Option, and shall be exercisable at the price,
during such period and on such other terms and conditions as are specified by
the Committee at the time the new Option is granted.

      12. Period During Which Awards May Be Granted.

      Awards may be granted pursuant to the Plan from time to time within a
period of ten (10) years from the date the Plan is adopted by the Board, or the
date the Plan is approved by the shareholders of the Company, whichever is
earlier, unless the Board shall terminate the Plan at an earlier date.

      13. Nontransferability of Awards.

      Except as otherwise determined by the Committee, awards granted under the
Plan shall not be transferable otherwise than by will or by the laws of descent
and distribution, and awards may be exercised or otherwise realized, during the
lifetime of the Optionee, only by the Optionee or by his guardian or legal
representative.

      14. Approval of Shareholders.

      The Plan shall take effect upon its adoption by the Board and shall
terminate on the tenth anniversary of such date, but the Plan (and any grants of
awards made prior to the shareholder approval mentioned herein) shall be subject
to the approval of Company's shareholders, which approval must occur within
twelve months of the date the Plan is adopted by the Board.

      15. Agreement by Optionee Regarding Withholding Taxes.

      If the Committee shall so require, as a condition of exercise of a
Nonqualified Stock Option (a "Tax Event"), each Optionee who is not a
Non-employee Director shall agree that no later than the date of the Tax Event,
such Optionee will pay to the Company or make arrange-


                                       9
<PAGE>

ments satisfactory to the Committee regarding payment of any federal, state or
local taxes of any kind required by law to be withheld upon the Tax Event.
Alternatively, the Committee may provide that such an Optionee may elect, to the
extent permitted or required by law, to have the Company deduct federal, state
and local taxes of any kind required by law to be withheld upon the Tax Event
from any payment of any kind due the Optionee. The withholding obligation may be
satisfied by the withholding or delivery of Common Shares. Any decision made by
the Committee under this Section 15 shall be made in its sole discretion.

      16. Amendment and Termination of the Plan.

      The Board at any time and from time to time may suspend, terminate, modify
or amend the Plan; provided, however, that, unless otherwise determined by the
Board, an amendment that requires stockholder approval in order for the Plan to
continue to comply with Rule 16b-3, Section 162(m) of the Code or any other law,
regulation or stock exchange requirement shall not be effective unless approved
by the requisite vote of shareholders. Except as provided in Section 10 (a)
hereof, no suspension, termination, modification or amendment of the Plan may
adversely affect any award previously granted, unless the written consent of the
Optionee is obtained.

      17. Rights as a Shareholder.

      An Optionee or a transferee of an award shall have no rights as a
shareholder with respect to any shares covered by the award until the date of
the issuance of a stock certificate to him for such shares. No adjustment shall
be made for dividends (ordinary or extraordinary, whether in cash, securities or
other property) or distribution of other rights for which the record date is
prior to the date such stock certificate is issued, except as provided in
Section 10(a) hereof.

      18. No Rights to Employment or Service as a Director.

      Nothing in the Plan or in any award granted or Agreement entered into
pursuant hereto shall confer upon any Optionee the right to continue in the
employ of the Company or any Subsidiary or as a member of the Board or to be
entitled to any remuneration or benefits not set forth in the Plan or such
Agreement or to interfere with or limit in any way the right of the Company or
any such Subsidiary to terminate such Optionee's employment or service. Awards
granted under the Plan shall not be affected by any change in duties or position
of an employee Optionee as long as such Optionee continues to be employed by the
Company or any Subsidiary.

      19. Beneficiary.

      An Optionee may file with the Committee a written designation of a
beneficiary on such form as may be prescribed by the Committee and may, from
time to time, amend or revoke such designation. If no designated beneficiary
survives the Optionee, the executor or administrator of the Optionee's estate
shall be deemed to be the Optionee's beneficiary.

      20. Governing Law.


                                       10
<PAGE>

      The Plan and all determinations made and actions taken pursuant hereto
shall be governed by the laws of the State of New York.


                                       11

</TEXT>
</DOCUMENT>
