<PAGE>

                                                                    EXHIBIT 10.4


                             INFORMATION ADVANTAGE, INC.
                          1997 EMPLOYEE STOCK PURCHASE PLAN

                   (AMENDED AND RESTATED EFFECTIVE APRIL 22, 1998)

SECTION 1.     PURPOSE OF THE PLAN.

     The Plan was adopted by the Board on September 23, 1997, effective as of
September 24, 1997.  The amended and restated Plan is effective as of April  22,
1998.  The purpose of the Plan is to provide Eligible Employees with an
opportunity to increase their proprietary interest in the success of the Company
by purchasing Stock from the Company on favorable terms and to pay for such
purchases through payroll deductions.  The Plan is intended to qualify under
section 423 of the Code.

SECTION 2.     ADMINISTRATION OF THE PLAN.

     a.   COMMITTEE COMPOSITION.  The Plan shall be administered by the
Committee.  The Committee shall consist exclusively of one or more directors of
the Company, who shall be appointed by the Board.

     b.   COMMITTEE RESPONSIBILITIES.  The Committee shall interpret the Plan
and make all other policy decisions relating to the operation of the Plan.  The
Committee may adopt such rules, guidelines and forms as it deems appropriate to
implement the Plan.  The Committee's determinations under the Plan shall be
final and binding on all persons.

     c.   PLAN YEAR.  The Plan Year shall consist of a twelve month period
commencing on July 1 and ending on June 30.  Notwithstanding the foregoing, the
first Plan Year shall be a short Plan Year commencing on the effective date of
the Plan and ending on June 30, 1998.

SECTION 3.     ENROLLMENT AND PARTICIPATION.

     a.   OFFERING PERIODS.  While the Plan is in effect, two overlapping
Offering Periods shall commence in each calendar year.  The Offering Periods
shall consist of the 18-month periods commencing on each January 1 and July 1,
except that the first Offering Period shall commence on the date of the IPO and
end on June 30, 1999.

     b.   ACCUMULATION PERIODS.  While the Plan is in effect, two Accumulation
Periods shall commence in each calendar year.  The Accumulation Periods shall
consist of the six-month periods commencing on each January 1 and July 1, except
that the first Accumulation Period shall commence on the date of the IPO and end
on June 30, 1998.

     c.   ENROLLMENT.  Any individual who, on the day preceding the first day of
an Offering Period, qualifies as an Eligible Employee may elect to become a
Participant in the Plan for such Offering Period by executing the enrollment
form prescribed for this purpose by the Committee.  The enrollment form shall be
filed with the Company at the prescribed location not later than 10 days prior
to the commencement of such Offering Period.  Notwithstanding the foregoing, the
Committee may designate a date that is fewer than 10 days prior to the
commencement of the first Offering Period under the Plan as the date by which
enrollment forms must be filed with respect to the first Offering Period; in no
event, however, shall the Committee designate a date that is subsequent to the
date of the IPO.

     d.   DURATION OF PARTICIPATION.  Once enrolled in the Plan, a Participant
shall continue to participate in the Plan until he or she ceases to be an
Eligible Employee, withdraws from the Plan under Section 5(a) or reaches the end
of the Accumulation Period in which his or her employee contributions were
discontinued under Section 4(d) or 8(b).  A Participant who discontinued
employee contributions under Section 4(d) or withdrew from the Plan

<PAGE>

under Section 5(a) may again become a Participant, if he or she then is an
Eligible Employee, by following the procedure described in Subsection (c) above.
A Participant whose employee contributions were discontinued automatically under
Section 8(b) shall automatically resume participation at the beginning of the
earliest Accumulation Period ending in the next calendar year, if he or she then
is an Eligible Employee.

     e.   APPLICABLE OFFERING PERIOD.  For purposes of calculating the Purchase
Price under Section 7(b), the applicable Offering Period shall be determined as
follows:

          i.    Once a Participant is enrolled in the Plan for an Offering
     Period, such Offering Period shall continue to apply to him or her until
     the earliest of (A) the end of such Offering Period, (B) the end of his or
     her participation under Subsection (d) above or (C) re-enrollment in a
     subsequent Offering Period under Paragraph (ii) below.

          ii.   In the event that the Fair Market Value of Stock on the last
     trading day before the commencement of the Offering Period in which the
     Participant is enrolled is higher than on the last trading day before the
     commencement of any subsequent Offering Period, the Participant shall
     automatically be re-enrolled for such subsequent Offering Period.

          iii.  When a Participant reaches the end of an Offering Period but his
     or her participation is to continue, then such Participant shall
     automatically be re-enrolled for the Offering Period that commences
     immediately after the end of the prior Offering Period.

SECTION 4.     EMPLOYEE CONTRIBUTIONS.

     a.   FREQUENCY OF PAYROLL DEDUCTIONS.  A Participant may purchase shares of
Stock under the Plan solely by means of payroll deductions.  Payroll deductions
shall occur on each payday during participation in the Plan and shall be
determined based upon the Payroll Withholding Rate designated by the Participant
pursuant to Subsection (b) below.

     b.   PAYROLL WITHHOLDING RATE.  An Eligible Employee shall designate on the
enrollment form the portion of his or her Compensation that he or she elects to
have withheld during a calendar year for the purchase of Stock (the "Payroll
Withholding Rate").  Such portion shall be a whole percentage of the Eligible
Employee's Compensation, but not less than 1% nor more than 15% of Compensation.
In no event may an Eligible Employee contribute more than 15% of his or her
Compensation during a calendar year for the purchase of shares of Stock under
the Plan.

     c.   CHANGING WITHHOLDING RATE.  If a Participant wishes to change his or
her Payroll Withholding Rate, he or she may do so by filing a new enrollment
form with the Company at the prescribed location at any time.  The new Payroll
Withholding Rate shall be effective as soon as reasonably practicable after such
form has been received by the Company.  The new Payroll Withholding Rate shall
be a whole percentage of the Eligible Employee's Compensation, but not less than
1% nor more than 15% of Compensation.

     d.   DISCONTINUING PAYROLL DEDUCTIONS.  If a Participant wishes to
discontinue employee contributions entirely, he or she may do so by filing a new
enrollment form with the Company at the prescribed location at any time. 
Payroll withholding shall cease as soon as reasonably practicable after such
form has been received by the Company.  (In addition, employee contributions may
be discontinued automatically pursuant to Section 8(b).) A Participant who has
discontinued employee contributions may resume such contributions by filing a
new enrollment form with the Company at the prescribed location.  Payroll
withholding shall resume as soon as reasonably practicable after such form has
been received by the Company.

     e.   LIMIT ON NUMBER OF ELECTIONS.  No Participant shall make more than two
elections under Subsection (c) or (d) above during any Accumulation Period. 
Notwithstanding any provision to the contrary herein, a Participant may make up
to three (3) elections under Subsections (c) and (d) during the Accumulation
Period ending June 30, 1998.

<PAGE>

SECTION 5.     WITHDRAWAL FROM THE PLAN.

     a.   WITHDRAWAL.  A Participant may elect to withdraw from the Plan by
filing the prescribed form with the Company at the prescribed location at any
time before the last day of an Accumulation Period.  As soon as reasonably
practicable thereafter, payroll deductions shall cease and the entire amount
credited to the Participant's Plan Account shall be refunded to him or her in
cash, without interest.  No partial withdrawals shall be permitted.

     b.   RE-ENROLLMENT AFTER WITHDRAWAL.  A former Participant who has
withdrawn from the Plan shall not be a Participant until he or she re-enrolls in
the Plan under Section 3(c).  Re-enrollment may be effective only at the
commencement of an Offering Period.

SECTION 6.     CHANGE IN EMPLOYMENT STATUS.

     a.   TERMINATION OF EMPLOYMENT.  Termination of employment as an Eligible
Employee for any reason, including death, shall be treated as an automatic
withdrawal from the Plan under Section 5(a).  (A transfer from one Participating
Company to another shall not be treated as a termination of employment.)

     b.   LEAVE OF ABSENCE.  For purposes of the Plan, employment shall not be
deemed to terminate when the Participant goes on a military leave, a sick leave
or another BONA FIDE leave of absence, if the leave was approved by the Company
in writing.  Employment, however, shall be deemed to terminate 90 days after the
Participant goes on a leave, unless a contract or statute guarantees his or her
right to return to work.  Employment shall be deemed to terminate in any event
when the approved leave ends, unless the Participant immediately returns to
work.  Notwithstanding the foregoing, an employee of Information Advantage GmbH
or Information Advantage International shall not be deemed to have terminated
employment for purposes of the Plan as a result of a leave of absence except to
the extent allowed by and consistent with German or United Kingdom law, as
applicable.

     c.   DEATH.  In the event of the Participant's death, the amount credited
to his or her Plan Account shall be paid to a beneficiary designated by him or
her for this purpose on the prescribed form or, if none, to the Participant's
estate.  Such form shall be valid only if it was filed with the Company at the
prescribed location before the Participant's death.

SECTION 7.     PLAN ACCOUNTS AND PURCHASE OF SHARES.

     a.   PLAN ACCOUNTS.  The Company shall maintain a Plan Account on its books
in the name of each Participant.  Whenever an amount is deducted from the
Participant's Compensation under the Plan, such amount shall be credited to the
Participant's Plan Account.  Amounts credited to Plan Accounts shall not be
trust funds and may be commingled with the Company's general assets and applied
to general corporate purposes.  No interest shall be credited to Plan Accounts.

     b.   PURCHASE PRICE.  The Purchase Price for each share of Stock purchased
at the close of an Accumulation Period shall be the lower of:

          i.    85% of the Fair Market Value of such share on the last trading
     day in such Accumulation Period; or

          ii.   85% of the Fair Market Value of such share on the last trading
     day before the commencement of the applicable Offering Period (as
     determined under Section 3(e)) or, in the case of the first Offering Period
     under the Plan, 85% of the price at which one share of Stock is offered to
     the public in the IPO.

     c.   NUMBER OF SHARES PURCHASED.  As of the last day of each Accumulation
Period, each Participant shall be deemed to have elected to purchase the number
of shares of Stock calculated in accordance with this Subsection (c), unless the
Participant has previously elected to withdraw from the Plan in accordance with
Section 5(a).  The amount then in the Participant's Plan Account shall be
divided by the Purchase Price, and the number of shares that results shall be
purchased from the Company with the funds in the Participant's Plan Account. 
The

<PAGE>

foregoing notwithstanding, no Participant shall purchase more than 500 shares of
Stock with respect to any Accumulation Period nor more than the amounts of Stock
set forth in Sections 8(b) and 13(a).  The Committee may determine with respect
to all Participants that any fractional share, as calculated under this
Subsection (c), shall be (i) rounded down to the next lower whole share or (ii)
credited as a fractional share.

     d.   AVAILABLE SHARES INSUFFICIENT.  In the event that the aggregate number
of shares that all Participants elect to purchase during an Accumulation Period
exceeds the maximum number of shares remaining available for issuance under
Section 13(a), then the number of shares to which each Participant is entitled
shall be determined by multiplying the number of shares available for issuance
by a fraction, the numerator of which is the number of shares that such
Participant has elected to purchase and the denominator of which is the number
of shares that all Participants have elected to purchase.

     e.   ISSUANCE OF STOCK.  Certificates representing the shares of Stock
purchased by a Participant under the Plan shall be issued to him or her as soon
as reasonably practicable after the close of the applicable Accumulation Period,
except that the Committee may determine that such shares shall be held for each
Participant's benefit by a broker designated by the Committee (unless the
Participant has elected that certificates be issued to him or her).  Shares may
be registered in the names of the Participant or jointly in the name of the
Participant and his or her spouse as joint tenants with right of survivorship or
as community property.

     f.   UNUSED CASH BALANCES.  An amount remaining in the Participant's Plan
Account that represents the Purchase Price for any fractional share shall be
carried over in the Participant's Plan Account to the next Accumulation Period. 
Any amount remaining in the Participant's Plan Account that represents the
Purchase Price for whole shares that could not be purchased by reason of
Subsection 4(b), Subsection (c) above, Section 8(b) or Section 13(a) shall be
refunded to the Participant in cash, without interest.  Notwithstanding any
provision to the contrary herein, the Company shall, upon written request of any
Participant and as soon as practicable following March 6, 1998, refund to such
Participant any and all amounts in excess of $2,550 contributed by such
Participant on or before March 6, 1998.

     g.   STOCKHOLDER APPROVAL.  Any other provision of the Plan
notwithstanding, no shares of Stock shall be purchased under the Plan unless and
until the Company's stockholders have approved the adoption of the Plan.

SECTION 8.     LIMITATIONS ON STOCK OWNERSHIP.

     a.   FIVE PERCENT LIMIT.  Any other provision of the Plan notwithstanding,
no Participant shall be granted a right to purchase Stock under the Plan if such
Participant, immediately after his or her election to purchase such Stock, would
own stock possessing more than 5% of the total combined voting power or value of
all classes of stock of the Company or any parent or Subsidiary of the Company. 
For purposes of this Subsection (a), the following rules shall apply:

          i.    Ownership of stock shall be determined after applying the
     attribution rules of section 424(d) of the Code;

          ii.   Each Participant shall be deemed to own any stock that he or she
     has a right or option to purchase under this or any other plan; and

          iii.  Each Participant shall be deemed to have the right to purchase
     500 shares of Stock under this Plan with respect to each Accumulation
     Period.

     b.   DOLLAR LIMIT.  Any other provision of the Plan notwithstanding, no
Participant shall purchase Stock with a Fair Market Value in excess of the
following limit:

          i.    In the case of Stock purchased during an Offering Period that
     commenced in the current calendar year, the limit shall be equal to (A)
     $25,000 minus (B) the Fair Market Value of the Stock that the Participant
     previously purchased in the current calendar year (under this Plan and all
     other employee stock purchase plans of the Company or any parent or
     Subsidiary of the Company).

<PAGE>

          ii.   In the case of Stock purchased during an Offering Period that
     commenced in the immediately preceding calendar year, the limit shall be
     equal to (A) $50,000 minus (B) the Fair Market Value of the Stock that the
     Participant previously purchased (under this Plan and all other employee
     stock purchase plans of the Company or any parent or Subsidiary of the
     Company) in the current calendar year and in the immediately preceding
     calendar year.

          iii.  In the case of Stock purchased during an Offering Period that
     commenced in the second preceding calendar year, the limit shall be equal
     to (A) $75,000 minus (B) the Fair Market Value of the Stock that the
     Participant previously purchased (under this Plan and all other employee
     stock purchase plans of the Company or any parent or Subsidiary of the
     Company) in the current calendar year and in the two preceding calendar
     years.

For purposes of this Subsection (b), the Fair Market Value of Stock shall be
determined in each case as of the beginning of the Offering Period in which such
Stock is purchased.  Employee stock purchase plans not described in section 423
of the Code shall be disregarded.  If a Participant is precluded by this
Subsection (b) from purchasing additional Stock under the Plan, then his or her
employee contributions shall automatically be discontinued and shall resume at
the beginning of the earliest Accumulation Period ending in the next calendar
year (if he or she then is an Eligible Employee).

SECTION 9.     RIGHTS NOT TRANSFERABLE.

     The rights of any Participant under the Plan, or any Participant's interest
in any Stock or moneys to which he or she may be entitled under the Plan, shall
not be transferable by voluntary or involuntary assignment or by operation of
law, or in any other manner other than by beneficiary designation or the laws of
descent and distribution.  If a Participant in any manner attempts to transfer,
assign or otherwise encumber his or her rights or interest under the Plan, other
than by beneficiary designation or the laws of descent and distribution, then
such act shall be treated as an election by the Participant to withdraw from the
Plan under Section 5(a).

SECTION 10.    NO RIGHTS AS AN EMPLOYEE.

     Nothing in the Plan or in any right granted under the Plan shall confer
upon the Participant any right to continue in the employ of a Participating
Company for any period of specific duration or interfere with or otherwise
restrict in any way the rights of the Participating Companies or of the
Participant, which rights are hereby expressly reserved by each, to terminate
his or her employment at any time and for any reason, with or without cause.

     Even if the right to purchase shares is granted hereunder three times in
succession to a Participant, this does not mean that the Participant remains
further entitled to purchase Stock.  Such right to purchase Stock is granted
voluntarily by the Company and may be revoked by the Company at any time.

     The rights and obligations of any Participant employed by any Participating
Company incorporated in England or Wales under a contract governed by English
law under the terms of his office with or employment by such Participating
Company shall not be affected by his participation in the Plan or by the
discontinuance of the Plan or by the discontinuance of any right which he may
have to participate in the Plan.  Such Participant waives any and all rights to
compensation or damages in consequence of the termination of his office or
employment for any reason whatsoever insofar as those rights arise or may arise
from his ceasing to have rights under the Plan as a result of such termination
of his office or employment.

SECTION 11.    NO RIGHTS AS A STOCKHOLDER.

     A Participant shall have no rights as a stockholder with respect to any
shares of Stock that he or she may have a right to purchase under the Plan until
such shares have been purchased on the last day of the applicable Accumulation
Period.

<PAGE>

SECTION 12.    SECURITIES LAW REQUIREMENTS.

     Shares of Stock shall not be issued under the Plan unless the issuance and
delivery of such shares comply with (or are exempt from) all applicable
requirements of law, including (without limitation) the Securities Act of 1933,
as amended, the rules and regulations promulgated thereunder, state securities
laws and regulations, and the regulations of any stock exchange or other
securities market on which the Company's securities may then be traded.

SECTION 13.    STOCK OFFERED UNDER THE PLAN.

     a.   AUTHORIZED SHARES.  The aggregate number of shares of Stock available
for purchase under the Plan shall be 200,000, subject to adjustment pursuant to
this Section 13.

     b.   ANTI-DILUTION ADJUSTMENTS.  The aggregate number of shares of Stock
offered under the Plan, the 500-share limitation described in Section 7(c) and
the price of shares that any Participant has elected to purchase shall be
adjusted proportionately by the Committee for any increase or decrease in the
number of outstanding shares of Stock resulting from a subdivision or
consolidation of shares or the payment of a stock dividend, any other increase
or decrease in such shares effected without receipt or payment of consideration
by the Company, the distribution of the shares of a Subsidiary to the Company's
stockholders or a similar event.

     c.   REORGANIZATIONS.  Any other provision of the Plan notwithstanding,
immediately prior to the effective time of a Change in Control, the Offering
Period and Accumulation Period then in progress shall terminate and shares shall
be purchased pursuant to Section 7.  In the event of a merger or consolidation
to which the Company is a constituent corporation and which does not constitute
a Change in Control, the Plan shall continue unless the plan of merger or
consolidation provides otherwise.  The Plan shall in no event be construed to
restrict in any way the Company's right to undertake a dissolution, liquidation,
merger, consolidation or other reorganization.

SECTION 14.    AMENDMENT OR DISCONTINUANCE.

     The Board shall have the right to amend, suspend or terminate the Plan at
any time and without notice.  Except as provided in Section 13, any increase in
the aggregate number of shares of Stock to be issued under the Plan shall be
subject to approval by a vote of the stockholders of the Company.  In addition,
any other amendment of the Plan shall be subject to approval by a vote of the
stockholders of the Company to the extent required by an applicable law or
regulation.  The right to purchase Stock granted herein is granted voluntarily
by the Company and can be revoked at any time.

SECTION 15.    DEFINITIONS.

     a.   "ACCUMULATION PERIOD" means a six-month period during which
contributions may be made toward the purchase of Stock under the Plan, as
determined pursuant to Section 3(b).

     b.   "BOARD" means the Board of Directors of the Company, as constituted
from time to time.

     c.   "CHANGE IN CONTROL" means:

          i.    The consummation of a merger or consolidation of the Company
     with or into another entity or any other corporate reorganization, if more
     than 50% of the combined voting power of the continuing or surviving
     entity's securities outstanding immediately after such merger,
     consolidation or other reorganization is owned by persons who were not
     stockholders of the Company immediately prior to such merger, consolidation
     or other reorganization;

          ii.   The sale, transfer or other disposition of all or substantially
     all of the Company's assets;

          iii.  A change in the composition of the Board, as a result of which
     fewer than two-thirds of the incumbent directors are directors who either
     (i) had been directors of the Company on the date 24

<PAGE>

     months prior to the date of the event that may constitute a Change in
     Control (the "original directors") or (ii) were elected, or nominated for
     election, to the Board with the affirmative votes of at least a majority of
     the aggregate of the original directors who were still in office at the
     time of the election or nomination and the directors whose election or
     nomination was previously so approved; or

          iv.   Any transaction as a result of which any person is the
     "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act),
     directly or indirectly, of securities of the Company representing at least
     50% of the total voting power represented by the Company's then outstanding
     voting securities.  For purposes of this Paragraph (d), the term "person"
     shall have the same meaning as when used in sections 13(d) and 14(d) of the
     Exchange Act but shall exclude (i) a trustee or other fiduciary holding
     securities under an employee benefit plan of the Company or of a Parent or
     Subsidiary and (ii) a corporation owned directly or indirectly by the
     stockholders of the Company in substantially the same proportions as their
     ownership of the common stock of the Company.

A transaction shall not constitute a Change in Control if its sole purpose is to
change the state of the Company's incorporation or to create a holding company
that will be owned in substantially the same proportions by the persons who held
the Company's securities immediately before such transaction.

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

     e.   "COMMITTEE" means a committee of the Board, as described in Section 2.

     f.   "COMPANY" means Information Advantage, Inc., a Delaware corporation.

     g.   "COMPENSATION" means (i) the total taxable compensation paid to a
Participant by a Participating Company during a calendar year as reported on the
Participant's form W-2, including salaries, wages, bonuses, incentive
compensation, commissions, overtime pay and shift premiums, plus (ii) any
pre-tax contributions made by the Participant under sections 401(k) or 125 of
the Code.  Notwithstanding the foregoing, "Compensation" shall exclude all
non-cash items, moving or relocation allowances, cost-of-living equalization
payments, car allowances, tuition reimbursements, imputed income attributable to
cars or life insurance, severance pay, fringe benefits, contributions or
benefits received under employee benefit plans, income attributable to the
exercise of stock options, and similar items.  The Committee shall determine
whether a particular item is included in Compensation.

     h.   "ELIGIBLE EMPLOYEE" means any employee of a Participating Company
whose customary employment is for more than five months per calendar year and
for more than 20 hours per week.

     The foregoing notwithstanding, an individual shall not be considered an
Eligible Employee if his or her participation in the Plan is prohibited by law
of any country in which he or she resides, performs work for the Company and
receives Compensation from the Company, or if he or she works in a job
classification covered by a collective bargaining agreement and the parties to
that agreement have bargained in good faith about stock purchase benefits and
the bargaining agreement does not provide for participation in this Plan.

     i.   "EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended.

     j.   "FAIR MARKET VALUE" means the market price of Stock, determined by the
Committee as follows:

          i.    If stock was traded over-the-counter on the date in question but
     was not traded on the Nasdaq National Market or the Nasdaq SmallCap Market,
     then the Fair Market Value shall be equal to the mean between the last
     reported representative bid and ask prices quoted for such date by the
     principal automated inter-dealer quotation system on which Stock is quoted
     or, if the Stock is not quoted on any such system, by the "Pink Sheets"
     published by the National Quotation Bureau, Inc.;

          ii.   If Stock was traded over-the-counter on the date in question and
     was traded on the Nasdaq National Market or the Nasdaq SmallCap Market,
     then the Fair Market Value shall be equal to the last-transaction price
     quoted for such date by the Nasdaq National Market or the Nasdaq SmallCap
     Market;

<PAGE>

          iii.  If the Stock was traded on a stock exchange on the date in
     question, then the Fair Market Value shall be equal to the closing price
     reported by the applicable composite transactions report for such date; and

          iv.   If none of the foregoing provisions is applicable, then the Fair
     Market Value shall be determined by the Committee in good faith on such
     basis as it deems appropriate.

Whenever possible, the determination of Fair Market Value by the Committee shall
be based on the prices reported in THE WALL STREET JOURNAL or as reported
directly to the Company by Nasdaq or a comparable exchange.  Such determination
shall be conclusive and binding on all persons.

     k.   "IPO" means the initial offering of Stock to the public pursuant to a
registration statement filed by the Company with the Securities and Exchange
Commission.

     l.   "OFFERING PERIOD" means an 18-month period with respect to which the
right to purchase Stock may be granted under the Plan, as determined pursuant to
Section 3(a).

     m.   "PARTICIPANT" means an Eligible Employee who elects to participate in
the Plan, as provided in Section 3(c).

     n.   "PARTICIPATING COMPANY" means (i) the Company and (ii) each present or
future Subsidiary designated by the Committee as a Participating Company.

     o.   "PLAN" means this Information Advantage, Inc. 1997 Employee Stock
Purchase Plan, as it may be amended from time to time.

     p.   "PLAN ACCOUNT" means the account established for each Participant
pursuant to Section 7(a).

     q.   "PURCHASE PRICE" means the price at which Participants may purchase
Stock under the Plan, as determined pursuant to Section 7(b).

     r.   "STOCK" means the Common Stock of the Company.

     s.   "SUBSIDIARY" means any corporation (other than the Company) in an
unbroken chain of corporations beginning with the Company, if each of the
corporations other than the last corporation in the unbroken chain owns stock
possessing 50% or more of the total combined voting power of all classes of
stock in one of the other corporations in such chain.

SECTION 16.    GOVERNING LAW.

     The Plan shall be construed consistent with and governed by the laws of the
State of Minnesota and the laws of the United States.

SECTION 17.    EXECUTION.

     To record the adoption of the Amended and Restated Plan as of April  22,
1998, the Company has caused its authorized officer to execute the same.


                                             INFORMATION ADVANTAGE, INC.


                                             By:     /s/Brian D. Wenger
                                                -----------------------
                                             Title:  Secretary
                                                   -----------