EXHIBIT 4.2

                                  NOVELL, INC.

                                 2000 STOCK PLAN
1.       PURPOSES OF THE PLAN.  The purposes of this Novell, Inc., 2000 Stock
Plan are:

o        to attract and retain the best available personnel,
o        to provide additional incentive to Employees, Directors and Consultants
and
o        to promote the success of the Company's business.

         Options  granted  under  the Plan may be  Incentive  Stock  Options  or
Nonstatutory  Stock  Options,  as  determined  by the Administrator at the time
of grant. Stock Purchase Rights and Common Stock Equivalents may also be granted
or awarded under the Plan.

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

(a)      "ADMINISTRATOR"  means  the  Board or any of its Committees as shall be
administering  the Plan, in accordance  with Section 4 of the Plan.

(b)      "ANNUAL RETAINER FEE" means the annual fee to which an Outside Director
is entitled for serving as a Director during a fiscal year of the Company, but
shall not include reimbursement for expenses, fees associated with service on
any committee of the Board or fees for other services provided to the Company.

(c)      "APPLICABLE LAWS" means the requirements relating to the administration
of stock option plans under U. S. state corporate laws, U.S.  federal and state
securities laws, the Code, any stock exchange or quotation system on which the
Common Stock is listed or quoted and the applicable laws of any foreign country
or jurisdiction where Awards are, or will be, granted under the Plan.

(d)      "AWARD" means an award of Options, Stock Purchase Rights or Common
Stock Equivalents pursuant to the terms of the Plan.

(e)      "BOARD" means the Board of Directors of the Company.

(f)      "CODE" means the Internal Revenue Code of 1986, as amended.

(g)      "COMMITTEE" means a committee of Directors appointed by the Board in
accordance with Section 4 of the Plan.

(h)      "COMMON STOCK" means the common stock of the Company.

(i)      "COMMON  STOCK  EQUIVALENT"  means an unfunded and  unsecured  right to
receive  Shares in the future that may be granted to a Director pursuant to
Section 12.

(j)      "COMMON STOCK EQUIVALENT  AGREEMENT"  means a written agreement between
the Company and a Director  evidencing the terms and conditions of an individual
Common Stock Equivalent grant.

(k)      "COMPANY" means Novell, Inc., a Delaware corporation.

(l)      "CONSULTANT"  means any person,  including an advisor,  engaged by the
Company or a Parent or Subsidiary to render services to such entity.

(m)      "DIRECTOR" means a member of the Board.

(n)      "DISABILITY" means total and permanent disability as defined in Section
22(e)(3) of the Code.

(o)      "EMPLOYEE" means any person, including Officers and Directors, employed
by the Company or any Parent or Subsidiary of the Company. A Service Provider
shall not cease to be an Employee 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, its Parent, any Subsidiary, or any successor. For purposes
of Incentive Stock Options,  no such leave may exceed ninety days,  unless
reemployment upon expiration of such leave is guaranteed by statute or contract.
If  reemployment upon  expiration  of a  leave  of  absence  approved  by the
Company  is not so guaranteed,  then  three (3)  months  following  the 91st day
of such  leave any Incentive  Stock  Option  held by the  Optionee  shall cease
to be treated as an Incentive Stock Option and shall be treated for tax purposes
as a  Nonstatutory Stock Option.  Neither  service as a Director nor payment of
a director's fee by the Company shall be sufficient to constitute  "employment"
by the Company.

(p)      "EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended.

(q)      "FAIR MARKET VALUE" means, as of any date, the value of Common Stock
determined as follows:

         (i) 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;

         (ii) If the Common Stock is regularly quoted by a recognized securities
dealer but selling prices are not reported,  the Fair Market Value of a Share of
Common Stock 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,  as reported in The Wall Street  Journal or such other source as
the  Administrator  deems  reliable;  or

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

(r)      "INCENTIVE STOCK OPTION" means an Option intended to qualify as an
incentive stock option  within the meaning of Section 422 of the Code and the
regulations promulgated  thereunder.

(s)      "NONSTATUTORY  STOCK  OPTION" means an Option not intended to qualify
as an Incentive Stock Option.

(t)      "NOTICE OF GRANT" means a written or  electronic notice  evidencing
certain  terms and  conditions of an individual  Option or Stock Purchase Right
grant. The Notice of Grant is part of the Option Agreement.

(u)      "OFFICER"  means a person who is an officer of the Company  within the
meaning of Section 16 of the Exchange Act and the rules and regulations
promulgated thereunder.

(v)      "OPTION" means a stock option granted pursuant to the Plan.

(w)      "OPTION  AGREEMENT"  means an  agreement  between  the  Company  and an
Optionee  evidencing  the terms and  conditions  of an individual Option grant.
The Option Agreement is subject to the terms and conditions of the Plan.

(x)      "OPTIONED STOCK" means the Common Stock subject to an Option or Stock
Purchase Right.

(y)      "OPTIONEE" means the holder of an outstanding Award granted under the
Plan.

(z)      "OUTSIDE DIRECTOR" means a Director who is not an Employee.

(aa)     "PARENT" means a "parent corporation," whether now or hereafter
existing, as defined in Section 424(e) of the Code.

(bb)     "PLAN" means this Novell, Inc., 2000 Stock Plan.

(cc)     "RESTRICTED  STOCK" means shares of Common Stock  acquired  pursuant to
a grant of Stock  Purchase  Rights under Section 11 of the Plan.

(dd)     "RESTRICTED STOCK PURCHASE AGREEMENT" means a written agreement between
the Company and the Optionee evidencing the terms and restrictions applying to
stock purchased under a Stock Purchase Right. The Restricted Stock Purchase
Agreement is subject to the terms and conditions of the Plan and the Notice of
Grant.

(ee)     "Retirement" means a Service Provider who leaves the employment of the
Company at an age of 65 or older.

(ff)     "RULE 16B-3" means Rule 16b-3 of the Exchange Act or any  successor to
Rule 16b-3, as in effect when discretion is being exercised with respect to the
Plan.

(gg)     "SECTION 16(B)" means Section 16(b) of the Exchange Act.

(hh)     "SERVICE PROVIDER" means an Employee, Director or Consultant.

(ii)     "SHARE" means a share of the Common Stock, as adjusted in accordance
with Section 14 of the Plan.

(jj)     "STOCK PURCHASE RIGHT" means the right to purchase Common Stock
pursuant to Section 11 of the Plan,  as  evidenced by a Notice of Grant.

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

3.       STOCK SUBJECT TO THE PLAN.  Subject to the  provisions of Section 14 of
the Plan, the maximum  aggregate number of Shares which may be optioned and sold
under the Plan is 16,000,000,  plus any forfeited  Shares.  For purposes of this
Section 3,  "forfeited  Shares" means any Shares issued  pursuant to Awards made
under the Plan that are  forfeited  to the  Company  pursuant to award terms and
conditions,  plus any Shares  covered by Awards  granted under the Plan that are
canceled or forfeited. In no event, however, except as to Section 14 of the Plan
shall more than 10,000,000 of the Shares eligible for issuance under the Plan be
issued  upon  the  exercise  of  Incentive  Stock  Options.  The  Shares  may be
authorized, but unissued, or reacquired Common Stock.

         If an Award  expires  or  becomes  unexercisable  without  having  been
exercised or converted in full, the  unpurchased  or unissued  Shares which were
subject  thereto  shall  become  available  for future  issuance  under the Plan
(unless  the Plan has  terminated);  provided,  however,  that  Shares that have
actually been issued under the Plan, whether upon exercise of an Option or Stock
Purchase Right or conversion of a Common Stock Equivalent, shall not be returned
to the Plan and shall not become  available for future  issuance under the Plan,
except  that if Shares of  Restricted  Stock are  repurchased  by the Company at
their original  purchase  price,  such Shares shall become  available for future
award under the Plan.

4.       ADMINISTRATION OF THE PLAN.

(a)      PROCEDURE.

(i)      MULTIPLE  ADMINISTRATIVE  BODIES.  The Plan may be administered by
different Committees with respect to different groups of Service  Providers.

(ii)     SECTION 162(M).  To the extent that the  Administrator  determines it
to be desirable to qualify Options granted hereunder as "performance-based
compensation" within the meaning  of Section  162(m) of the Code,  the Plan
shall be  administered  by a Committee  of two or more  "outside  directors"
within  the  meaning of Section 162(m) of the Code.

(iii)    RULE 16B-3. To the extent desirable to qualify  transactions  hereunder
as exempt under Rule 16b-3,  the transactions  contemplated  hereunder  shall be
structured  to satisfy the  requirements  for exemption  under Rule 16b-3.

(iv)     OTHER  ADMINISTRATION.   Other  than  as  provided  above,  the  Plan
shall  be administered  by (A) the  Board or (B) a  Committee,  which  committee
shall be constituted to satisfy Applicable Laws.

(b)      POWERS OF THE  ADMINISTRATOR.  Subject to the provisions of the Plan,
and in the case of a Committee,  subject to the specific duties  delegated by
the Board to  such  Committee,   the  Administrator  shall  have the  authority,
in  its discretion:

(i)      to determine the Fair Market Value;

(ii)    to select the Service Providers to whom Awards may be granted hereunder;

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

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

(v)      to determine the terms and  conditions,  not  inconsistent  with the
terms of the Plan, of any Award granted hereunder.  Such terms and conditions
include, but are not limited to, the exercise price,  the time or times when
Options or  Stock Purchase Rights may be exercised  (which may be based on
performance  criteria),  the time or times when Common Stock Equivalents  may
be  converted  to  Shares,   any  vesting acceleration  or waiver  of forfeiture
restrictions, and any  restriction  or limitation  regarding any Awards or the
Shares relating thereto, based in each case on such factors as the
Administrator,  in its  sole  discretion,  shall determine;

(vi)     to  construe  and  interpret  the terms of the Plan and  Awards
granted  pursuant to the Plan;

(vii)    to prescribe,  amend and rescind rules and regulations  relating to the
Plan,  including rules and regulations  relating to sub-plans  established  for
the purpose of qualifying  for  preferred  treatment under  foreign  laws;

(viii)   to modify or amend each Award  (subject to Section 16(c)  of the Plan),
including  the  discretionary  authority  to  extend  the post-termination
exercisability  period of  Options  longer  than is  otherwise provided  for  in
the  Plan;

(ix)     to  allow  Optionees  to  satisfy required withholding  tax obligations
by electing to have the Company  withhold from the Shares to be issued  upon
exercise  of an Option or in  connection  with Shares acquired  pursuant to a
Stock  Purchase Right or upon the conversion of a Common Stock  Equivalent  that
number of Shares having a Fair Market Value equal to (or less than) the minimum
amount required to be withheld.  The Fair Market Value of the Shares to be
withheld shall be determined on the date that the amount of tax to be withheld
is to be determined.  All elections by an Optionee to have Shares withheld for
this purpose  shall be made in such form and under such  conditions as the
Administrator  may deem  necessary or  advisable;

(x)      to authorize  any person to execute on behalf of the Company any
instrument  required to effect an Award  previously  granted  by  the
Administrator;

(xi)     to  make  all  other determinations  deemed  necessary or advisable for
administering  the Plan.

(c)      EFFECT   OF   ADMINISTRATOR'S    DECISION.   The   Administrator's
decisions, determinations and  interpretations  shall be final and binding on
all Optionees and any other holders of Awards.

5.       ELIGIBILITY.  Nonstatutory Stock Options and Stock  Purchase  Rights
may be granted  to Service Providers. Common  Stock Equivalents may be granted
to Outside Directors.  Incentive Stock Options may be granted only to Employees.

6.       LIMITATIONS.

(a)      Each Option shall be designated in the Option Agreement as either an
Incentive  Stock Option or a  Nonstatutory Stock Option.  However,
notwithstanding such designation, to the extent that the aggregate Fair Market
Value of the Shares with respect to which  Incentive Stock Options are
exercisable  for the first time by the Optionee during any calendar year (under
all plans of the  Company  and any Parent or  Subsidiary)  exceeds $100,000,
such Options  shall be treated as  Nonstatutory  Stock  Options.  For purposes
of this  Section  6(a),  Incentive  Stock  Options  shall be taken into account
in the order in which they were  granted.  The Fair Market  Value of the
Shares shall be determined as of the time the Option with respect to such Shares
is granted.

(b)      Neither the Plan nor any Award shall confer upon an Optionee any
right with  respect  to  continuing  the  Optionee's  relationship  as a Service
Provider  with  the  Company,  nor  shall  they  interfere  in any way  with the
Optionee's  right or the Company's  right to terminate such  relationship at any
time, with or without cause.

(c)      The following limitations shall apply to grants of Options:

(i)      No Service Provider shall be granted, in any fiscal year of the
Company, Options to purchase more than 1,500,000 Shares.

(ii)     In connection with his or her  initial  service,  a Service  Provider
may be  granted  Options  to purchase up to an additional 1,500,000 Shares which
shall not count against the limit set forth in subsection (i) above.

(d)      The foregoing  limitations shall be adjusted  proportionately  in
connection  with  any  change  in  the  Company's capitalization  as described
in Section 14.

7.       TERM OF PLAN.  Subject to Section 20 of the Plan, the Plan
shall become  effective upon its adoption by the Board. It shall  continue  in
effect  for a term of ten (10)  years  unless  terminated earlier under Section
16 of the Plan.

8.       TERM OF OPTION. The term of each Option shall be stated  in the  Option
Agreement.  In the case of an  Incentive  Stock Option,  the term shall be ten
(10) years from the date of grant or such shorter term as may be provided in the
Option  Agreement.  Moreover,  in the case of an Incentive  Stock Option
granted to an Optionee  who, at the time the  Incentive Stock Option is granted,
owns stock representing more than ten percent (10%) of the total  combined
voting power of all classes of stock of the Company or any Parent or Subsidiary,
the term of the Incentive  Stock Option shall be five (5) years  from the date
of grant or such  shorter  term as may be  provided  in the Option  Agreement.

9.       OPTION  EXERCISE  PRICE AND  CONSIDERATION.

(a)      EXERCISE PRICE.  The per share  exercise  price for the Shares to be
issued  pursuant  to exercise of an Option shall be no less than 100% of Fair
Market Value,  as shall be determined by the Administrator.

(b)      Notwithstanding the foregoing,  Options may be  granted  with a per
Share  exercise  price of less than 100% of the Fair Market  Value  per  Share
on the date of grant  pursuant  to a merger  or other corporate  transaction.

(c)      WAITING PERIOD AND EXERCISE  DATES.  At the time an Option is  granted,
the  Administrator  shall fix the period  within  which the Option  may be
exercised  and shall  determine  any  conditions  which  must be satisfied
before the Option may be exercised.

(d)      FORM OF  CONSIDERATION.  The Administrator   shall  determine  the
acceptable  form  of  consideration   for exercising  an  Option,  including the
method  of  payment. In the case of an Incentive Stock Option, the Administrator
shall determine the acceptable form of consideration at the time of grant. Such
consideration may consist entirely of:

(i)      cash;

(ii)     check;

(iii)    promissory note;

(iv)     other Shares which (A) in the case of Shares  acquired  upon  exercise
of an  option,  have been owned by the Optionee for more than six months on the
date of surrender,  and (B) have a Fair Market Value on the date of surrender
equal to the aggregate  exercise price of the  Shares  as to which  said  Option
shall be  exercised;

(v)      considerationreceived by the Company under a cashless  exercise program
implemented  by the Company  in  connection  with the Plan;

(vi)     a  reduction  in the amount of any Company liability to the Optionee,
including any liability  attributable to the Optionee's participation in any
Company-sponsored  deferred compensation program or arrangement;

(vii)    any combination of the foregoing  methods of payment;  or

(viii)   such other consideration and method of payment for the issuance of
Shares to the extent  permitted  by  Applicable  Laws.

10.      EXERCISE  OF  OPTION.

(a)      PROCEDURE FOR EXERCISE;  RIGHTS AS A SHAREHOLDER.  Any Option granted
hereunder shall be  exercisable  according  to the terms of the Plan and at such
times and under such  conditions as determined by the  Administrator  and set
forth in the Option Agreement. An Option may not be exercised for a fraction of
a Share.

         An Option  shall be deemed  exercised  when the Company  receives:  (i)
written  or  electronic  notice  of  exercise  (in  accordance  with the  Option
Agreement)  from the person  entitled  to  exercise  the  Option,  and (ii) full
payment  for the Shares  with  respect to which the  Option is  exercised.  Full
payment may consist of any consideration and method of payment authorized by the
Administrator  and permitted by the Option Agreement and the Plan. Shares issued
upon  exercise of an Option  shall be issued in the name of the  Optionee or, if
requested  by the  Optionee,  in the name of the Optionee and his or her spouse.
Until the Shares are issued (as evidenced by the appropriate  entry on the books
of the Company or of a duly authorized transfer agent 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.
The Company shall issue (or cause to be issued) such Shares  promptly  after the
Option is exercised.  No  adjustment  will be made for a dividend or other right
for which the record date is prior to the date the Shares are issued,  except as
provided in Section 14 of the Plan.

         Exercising an Option in any manner shall  decrease the number of Shares
thereafter  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 RELATIONSHIP AS A SERVICE PROVIDER. If an Optionee
ceases to be a Service  Provider,  other  than  upon  the  Optionee's  Death,
Disability,   or Retirement,  the Optionee  may exercise his or her Option
within such period of time as is  specified  in the Option  Agreement to the
extent that the Option is vested on the date of termination  (but in no event
later than the expiration of the term of such Option as set forth in the Option
Agreement). In the absence of a specified time in the Option  Agreement,  the
Option shall remain  exercisable for  12  months  following  the  Optionee's
termination.  If,  on the  date  of termination,  the  Optionee  is not vested
as to his or her entire  Option,  the Shares  covered by the unvested  portion
of the Option shall revert to the Plan. If, after  termination,  the Optionee
does not exercise his or her Option within the time specified by the
Administrator,  the Option shall  terminate,  and the Shares covered by such
Option shall revert to the Plan.

(c)      DISABILITY OF OPTIONEE.  If an Optionee ceases to be a Service Provider
as a result of the Optionee's Disability, the Optionee may exercise his or her
Option within such period of time as is specified in the Option Agreement to the
extent the Option is vested on the date of termination  (but in no event later
than the expiration of the term of such Option as set forth in the Option
Agreement).  In the absence of a specified time in the Option Agreement, the
Option shall remain exercisable for twelve (12) months following the Optionee's
termination.  If, on the date of  termination,  the  Optionee  is not  vested as
to his or her entire Option, the Shares covered by the unvested portion of the
Option shall revert to the Plan.  If,  after  termination,  the  Optionee  does
not exercise his or her Option 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. If an Optionee dies while a Service Provider,  the
Option may be  exercised  within  such  period of time as is  specified  in the
Option Agreement  (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  acquires the right to exercise the Option by bequest or inheritance,
but only to the extent  that the Option is vested on the date of death.
Immediately upon an  Optionee's  death  while a  Service  Provider,  each of the
Optionee's outstanding  Options shall become vested on an accelerated basis with
respect to all Shares that would have become vested during the twelve (12)
months following such death if  Optionee  had  remained a Service  Provider.
In the absence of a specified time in the Option Agreement,  the Option shall
remain exercisable for twelve (12) months  following the Optionee's termination.
If, at the time of death,  the  Optionee is not vested as to his or her entire
Option,  the Shares covered by the unvested  portion of the Option shall
immediately  revert to the Plan.  The Option may be  exercised  by the  executor
or  administrator  of the Optionee's estate or, if none, by the person(s)
entitled to exercise the Option under the Optionee's will or the laws of descent
or distribution.  If the Option is not  so  exercised  within the time specified
herein,  the  Option  shall terminate, and the Shares covered by such Option
shall revert to the Plan.

(e)       RETIREMENT.  In the event of Optionee's Retirement, the Option may be
exercised  within such period of time as is  specified  in the Option  Agreement
(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,  but only to the extent that the
Option is  vested  on the date of  retirement.  Immediately  upon an  Optionee's
Retirement while a Service Provider,  each of the Optionee's outstanding Options
shall  become  vested on an  accelerated  basis with  respect to all Shares that
would have become vested during the twelve (12) months following such Retirement
if Optionee had remained a Service Provider.  In the absence of a specified time
in the Option  Agreement,  the Option shall remain  exercisable  for twenty four
(24) months following the Optionee's termination. If, at the time of Retirement,
the Optionee is not vested as to his or her entire Option, the Shares covered by
the unvested  portion of the Option shall  immediately  revert to the Plan.  If,
after  termination,  the Optionee does not exercise his or her Option within the
time specified  herein,  the Option shall  terminate,  and the Shares covered by
such Option shall revert to the Plan.

(f)      BUYOUT PROVISIONS.  The Administrator may at any time offer to buy out
for a payment in cash or Shares an 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.

11.      STOCK PURCHASE RIGHTS.

(a)      RIGHTS TO PURCHASE.  Stock Purchase  Rights may be issued either alone,
in addition to, or in tandem with other Awards granted under the Plan and/or
cash awards made outside of the Plan. After the Administrator determines that it
will offer Stock Purchase Rights under the Plan, it shall advise the offeree in
writing  or  electronically,  by means  of a  Notice  of  Grant,  of the  terms,
conditions and restrictions related to the offer, including the number of Shares
that the offeree  shall be entitled to purchase,  the price to be paid,  and the
time  within  which the  offeree  must  accept  such  offer.  The offer shall be
accepted by  execution  of a  Restricted  Stock  Purchase  Agreement in the form
determined by the Administrator.

(b)      REPURCHASE OPTION. Unless the Administrator determines  otherwise,  the
Restricted Stock Purchase  Agreement shall grant the Company a repurchase option
exercisable  upon the  voluntary  or  involuntary termination of the purchaser's
service  with  the  Company  for  any  reason (including  Death,  Disability, or
Retirement).  The purchase price for Shares repurchased  pursuant to the
Restricted  Stock Purchase  Agreement  shall be the original  price paid by the
purchaser  and may be paid by cancellation  of any indebtedness of the purchaser
to the Company.  The repurchase option shall lapse at a rate or under such
conditions as shall be determined by the  Administrator and set forth in the
restricted Stock Purchase Agreement.

(c)      OTHER PROVISIONS. The Restricted Stock Purchase Agreement shall contain
such other terms,  provisions and conditions not inconsistent with the Plan as
may be determined  by the  Administrator  in  its  sole  discretion.

(d)      RIGHTS  AS A SHAREHOLDER.  Once the Stock  Purchase Right is exercised,
the purchaser  shall have the rights equivalent to those of a shareholder, and
shall be a shareholder when his or her  purchase  is entered  upon the  records
of the duly  authorized transfer agent of the Company.

         No  adjustment  will be made for a dividend or other  right for which
the record date is prior to the date the Stock  Purchase Right is exercised,
except as provided in Section 14 of the Plan.

12.      DIRECTOR COMMON STOCK EQUIVALENTS.

(a)      ELECTIVE AWARD OF COMMON STOCK EQUIVALENTS.

(i)  ELECTIVE  AWARD.  An Outside  Director may elect no later than March 1st of
each calendar year to have up to one hundred  percent  (100%) of the  Director's
Annual  Retainer  Fee for the  following  fiscal year  converted to the award of
Common Stock Equivalents ("Elective Award"). Such Common Stock Equivalents shall
be awarded on annual  meeting date of the calendar year at which the  Director's
was elected,  and the number of Common Stock  Equivalents  shall be based on the
Fair Market Value per Share on the date of the award.  However, for the calendar
year in which this Plan  becomes  effective,  an Outside  Director  may elect no
later than the day prior to the date of the first  Annual  Shareholders  Meeting
following  the  effective  date of this Plan to have up to one  hundred  percent
(100%) of the unearned  portion of the  Director's  Annual  Retainer Fee for the
same year converted to the award of Common Stock Equivalents.  Such Common Stock
Equivalents  shall be awarded on the day of such  Annual  Shareholders  Meeting,
subject  to  shareholder  approval  this Plan,  and the  number of Common  Stock
Equivalents shall be based on the Fair Market Value per Share on the date of the
award.

(ii) CONVERSION. The Common Stock Equivalents subject to an Elective Award shall
be  converted  into  Shares  upon  the  earlier  of (i) the  termination  of the
individual's  service  as a  Director,  (ii) a  date  specified  by the  Outside
Director at the time the  Director  makes the  election to receive the  Elective
Award, or (iii) as otherwise provided in Section 14. Upon the conversion of each
Elective Award,  the Outside  Director (or his or her designated  beneficiary or
estate)  shall  receive the number of Shares equal to the whole number of Common
Stock  Equivalents  then credited to the  Director's  applicable  Elective Award
account.

(b)      AWARDS IN GENERAL.  Common Stock Equivalents may be awarded either
alone,  in addition  to, or in tandem with other awards  granted  under the Plan
and/or  cash  awards  made  outside  of the  Plan.  An  Award  of  Common  Stock
Equivalents  shall be made  pursuant to a Common Stock  Equivalent  Agreement in
such form as is determined by the Administrator.

(c)      BOOKKEEPING ACCOUNTS; NONTRANSFERABILITY.  The number of  Common  Stock
Equivalents awarded pursuant to Section 12(a) shall be credited to a bookkeeping
account established in the name of the Director.  The Company's  obligation with
respect to such Common Stock  Equivalents  shall not be funded or secured in any
manner.  A  Director's  right to receive  Common  Stock  Equivalents  may not be
assigned or  transferred,  voluntarily  or  involuntarily,  except as  expressly
provided herein.

(d)      DIVIDENDS. If the Company pays a cash dividend with respect to the
Shares at any time while Common Stock  Equivalents  are credited to a Director's
account, there  shall be credited  to the  Director's  account additional Common
Stock Equivalents  equal to (i) the dollar  amount of the cash  dividend  the
Director would have  received  had he or she been the actual owner of the Shares
to which the Common Stock  Equivalents  then credited to the Director's  account
relate, divided by (ii) the Fair Market Value of one Share on the dividend
payment date. The Company will pay the Director a cash  payment in lieu of
fractional  Common Stock Equivalents on the date of such dividend payment.

(e)       SHAREHOLDER  RIGHTS.  A Director (or his or her designated beneficiar
or estate) shall not be entitled to any voting or other shareholder rights as a
result of the credit of Common  Stock  Equivalents  to the  Director's  account,
until certificates  representing Shares are delivered to the Director (or his or
her designated  beneficiary or estate) upon conversion of the Director's  Common
Stock Equivalents pursuant to Section 12(a)(ii).

13.       TRANSFERABILITY OF AWARDS. Unless determined otherwise by the
Administrator, an Award  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. If the Administrator makes an Award
transferable, such Award shall contain  such  additional  terms  and  conditions
as  the  Administrator  deems appropriate.

14.       ADJUSTMENTS UPON CHANGES IN CAPITALIZATION, DISSOLUTION, MERGER OR
          ASSET SALE.

(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  Award, the number of Common Stock  Equivalents  credited to a
Director's  account under Section 12, the number of shares of Common Stock which
have been  authorized for issuance under the Plan but as to which no Awards have
yet been granted or which have been  returned to the Plan upon  cancellation  or
expiration  of an Award,  the  number of shares of Common  Stock  subject to the
Incentive  Stock  Option  limit set forth in Section 3, as well as the price per
share  of  Common  Stock  covered  by each  such  outstanding  Award,  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 adjustment shall be
made by the Board, 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 adjustment by reason  thereof shall be made
with  respect  to, the number or price of shares of Common  Stock  subject to an
Award.

(b)       DISSOLUTION  OR  LIQUIDATION.  In the event of the proposed
dissolution or liquidation of the Company, the Administrator shall notify each
Optionee as soon as  practicable  prior to the effective date of such proposed
transaction.  The Administrator  may, in its  discretion,  provide (i) for an
Optionee to have the right  to  exercise  his or her  Option  until  ten  (10)
days  prior  to  such transaction as to all of the Optioned Stock covered
thereby, including Shares as to which the Option would not  otherwise be
exercisable,  (ii) that any Company repurchase  option applicable to any Shares
purchased upon exercise of an Option or Stock Purchase Right shall lapse as to
all such Shares, provided the proposed dissolution  or  liquidation   takes
place  at  the  time  and  in  the  manner contemplated,  and  (iii)  that  any
Common  Stock  Equivalents  credited  to a Director's  account  under  Section
12 shall convert into Shares (as provided in Section 12(a))  immediately prior
to the consummation of any such dissolution or liquidation.  To the extent it
has not been previously exercised,  an Award will terminate  immediately  prior
to the consummation of such proposed  action.

(c)       MERGER  OR ASSET  SALE.  In the event of a merger  of the Company with
or into another  corporation,  or the sale of  substantially  all of the  assets
of the Company,  each  outstanding  Award  shall  be  assumed  or an  equivalent
award substituted by the successor corporation or a Parent or Subsidiary of the
successor  corporation.  In the event that the successor  corporation refuses to
assume or substitute for such Awards:  (i) each Optionee shall fully vest in and
have the right to exercise the Option or Stock  Purchase  Right as to all of the
Optioned Stock, including Shares as to which it would not otherwise be vested or
exercisable;  (ii)  any  Company  repurchase  option  applicable  to any  Shares
acquired  upon exercise of an Option or Stock  Purchase  Right shall lapse as to
all such Shares;  and (iii) Common  Stock  Equivalents  credited to a Director's
account  under  Section 12 shall convert into Shares (as provided in Section 12)
immediately  prior  to the  merger  or sale of  assets.  If an  Option  or Stock
Purchase  Right  becomes fully vested and  exercisable  in lieu of assumption or
substitution in the event of a merger or sale of assets, the Administrator shall
notify  the  Optionee  in  writing  or  electronically  that the Option or Stock
Purchase  Right shall be fully  vested and  exercisable  for a period of fifteen
(15) days from the date of such notice,  and the Option or Stock  Purchase Right
shall terminate upon the expiration of such period. If a Common Stock Equivalent
converts to Shares in such event, the Administrator shall notify the Optionee at
least fifteen (15) days prior to the  consummation of the proposed  transaction.
For the purposes of this  paragraph,  an Award shall be  considered  assumed if,
following the merger or sale of assets,  the award confers the right to purchase
or  receive,  for each Share of  Optioned  Stock  subject to the Option or Stock
Purchase  Right or for each Common  Stock  Equivalent  immediately  prior to the
merger or sale of assets,  the  consideration  (whether  stock,  cash,  or other
securities  or property)  received in the merger or sale of assets 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 or sale of assets is
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 or Stock
Purchase Right,  for each Share of Optioned Stock subject to the Option or Stock
Purchase Right or upon conversion of each Common Stock Equivalent,  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 or sale of assets.

15.      DATE OF GRANT. The date of grant of an Award shall be,  for  all
purposes,   the  date  on  which  the  Administrator   makes  the determination
granting such Award, or such other later date as is determined by the
Administrator.  However, the date of grant of Common Stock Equivalents shall be
determined in accordance with Section 12. Notice of the  determination  shall
be provided to each  Optionee  within a  reasonable  time after the date of such
grant.

16.      AMENDMENT AND TERMINATION OF THE PLAN.

(a)      AMENDMENT AND TERMINATION.  The Board may at any time amend, alter,
suspend or terminate the Plan.

(b)      SHAREHOLDER  APPROVAL.  The Company  shall  obtain shareholder approval
of any Plan  amendment to the extent  necessary  and desirable to comply with
Applicable Laws.

(c)      EFFECT OF AMENDMENT OR TERMINATION.  No amendment,  alteration,
suspension or termination of the Plan shall impair the rights of any Optionee,
unless mutually agreed otherwise between the Optionee and the  Administrator,
which agreement must be in writing and signed by the Optionee and the Company.
Termination  of the Plan shall not affect the  Administrator's  ability to
exercise the powers granted to it hereunder with respect to Awards granted under
the Plan prior to the date of such termination.

17.      CONDITIONS UPON ISSUANCE OF SHARES.

(a)      LEGAL  COMPLIANCE.  Shares  shall not be issued  pursuant to the
exercise or conversion  of an Award unless the exercise or  conversion of such
Award and the issuance and delivery of such Shares shall comply with Applicable
Laws and shall be further  subject to the  approval of counsel for the Company
with respect to such compliance.

(b)      INVESTMENT REPRESENTATIONS.  As a condition to the exercise or
conversion of an Award, the Company may require the person exercising or
converting such Award to represent and warrant at the time of any such exercise
or conversion 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.

18.      INABILITY TO OBTAIN AUTHORITY.  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 in respect
of the failure to issue or sell such Shares as to which such requisite authority
shall not have been obtained.

19.      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.

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



<PAGE>



                                                                   EXHIBIT 4.2.A

                          NOVELL, INC. 2000 STOCK PLAN

                                 EXERCISE NOTICE

Novell, Inc.

Attention:  Shareholder Services

1.       EXERCISE OF OPTION.  Effective as of today,  ________________,  ____,
the undersigned  ("Purchaser") hereby elects to purchase ______________  shares
(the "Shares") of the Common Stock of Novell, Inc. (the "Company") under and
pursuant to the Novell,  Inc., 2000 Stock Plan (the "Plan") and the Stock Option
Agreement dated  _________,  _____ (the "Option  Agreement").  The purchase
price for the Shares shall be $_________, as required by the Option Agreement.

2.       DELIVERY OF PAYMENT.  Purchaser herewith delivers to the Company the
full purchase price for the Shares.

3.       REPRESENTATIONS  OF PURCHASER.  Purchaser  acknowledges  that Purchaser
has received, read and understood the Plan and the Option Agreement and agrees
to abide by and be bound by their terms and  conditions.

4.       RIGHTS AS SHAREHOLDER. 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 Shares, 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.  The  Shares so  acquired
shall be issued  to the  Optionee  as soon as practicable  after  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 of issuance,  except as provided
in [Section 14] of the Plan.

5.        TAX  CONSULTATION. Purchaser  understands  that Purchaser may suffer
adverse tax  consequences as a result  of  Purchaser's  purchase  or disposition
of  the  Shares.  Purchaser represents that Purchaser has consulted with any tax
consultants Purchaser deems advisable in connection  with the purchase or
disposition of the Shares and that Purchaser is not relying on the Company for
any tax advice.

6.        ENTIRE  AGREEMENT;  GOVERNING  LAW. The Plan and Option  Agreement are
incorporated  herein  by  reference.  This  Agreement,  the Plan and the  Option
Agreement  constitute  the entire  agreement  of the parties with respect to the
subject matter hereof and supersede in their entirety all prior undertakings and
agreements  of the  Company and  Purchaser  with  respect to the subject  matter
hereof, and may not be modified adversely to the Purchaser's  interest except by
means of a writing  signed by the  Company  and  Purchaser.  This  agreement  is
governed by the internal  substantive  laws, but not the choice of law rules, of
[state].

Submitted by:                                                 Accepted by:

PURCHASER:                                                    Novell, Inc.


Signature                                                     By


Print Name                                                    Its

Address:                                                      Address:

                                                              [Company name]
-----------------------------------------------------
                                                              [Company address]
-----------------------------------------------------



                                                              Date Received



<PAGE>



                                                                   EXHIBIT 4.2.B

                          NOVELL, INC. 2000 STOCK PLAN

                             STOCK OPTION AGREEMENT

         Unless  otherwise  defined herein,  the terms defined in the Plan shall
have the same defined meanings in this Option Agreement.

I.       NOTICE OF STOCK OPTION GRANT


         Optionee:           EID

                             Name

                             Address

                             Address

                             City, St., Zip

                             Country

         You have  been  granted  an  option  to  purchase  Common  Stock of the
Company,  subject  to the  terms  and  conditions  of the Plan  and this  Option
Agreement, as follows:


         Grant Number

         Date of Grant

         Exercise Price per Share

         Total Number of Shares Granted

         Type of Option

         Term/Expiration Date:

VESTING SCHEDULE:

         This Option may be exercised,  in whole or in part, in accordance  with
the following schedule:

         ( )% of the Shares subject to the Option shall vest twelve months after
the Date of Grant,  and ( ) percent  of the Shares  subject to the Option  shall
vest each ( )  thereafter,  subject to the Optionee  continuing  to be a Service
Provider on such dates. Unless the Administrator provides otherwise,  vesting of
Options  granted  hereunder shall be (i) tolled during any unpaid personal leave
of absence and (ii) tolled as of the 91st day of any other leave of absence.

         In the event that an Optionee is terminated due to a job elimination or
reduction in force,  the following  provision shall apply.  Immediately  upon an
Optionee's  termination,  due to job elimination or reduction in force,  while a
Service Provider, each of the Optionee's outstanding Options shall become vested
on an accelerated basis with respect to all Shares that would have become vested
during the 90 days following such termination if Optionee had remained a Service
Provider.

TERMINATION PERIOD:

         This Option may be exercised for 60 days after Optionee  ceases to be a
Service Provider.  Upon the death or Disability of the Optionee, this Option may
be exercised for one year after Optionee ceases to be a Service  Provider.  Upon
the Retirement of the Optionee, this Option may be exercised for two years after
Optionee  ceases to be a Service  Provider.  In no event  shall  this  Option be
exercised later than the Term/Expiration Date as provided above.

II.      AGREEMENT

1. GRANT OF OPTION.  The Plan  Administrator of the Company hereby grants to the
Optionee  named in the Notice of Grant attached as Part I of this Agreement (the
"Optionee")  an option (the  "Option") to purchase the number of Shares,  as set
forth in the Notice of Grant,  at the exercise  price per share set forth in the
Notice of Grant (the "Exercise  Price"),  subject to the terms and conditions of
the Plan, which is incorporated herein by reference. Subject to Section 16(c) of
the Plan,  in the event of a conflict  between the terms and  conditions  of the
Plan and the  terms  and  conditions  of this  Option  Agreement,  the terms and
conditions of the Plan shall prevail.

         If  designated  in the  Notice of Grant as an  Incentive  Stock  Option
("ISO"),  this Option is intended to qualify as an Incentive  Stock Option under
Section 422 of the Code.  However, if this Option is intended to be an Incentive
Stock  Option,  to the extent that it exceeds the $100,000  rule of Code Section
422(d) it shall be treated as a Nonstatutory  Stock Option ("NSO").

2. EXERCISE OF OPTION.

(a) RIGHT TO EXERCISE.  This Option is exercisable during its term in accordance
with the  Vesting  Schedule  set out in the  Notice of Grant and the  applicable
provisions of the Plan and this Option Agreement.

(b) METHOD OF EXERCISE.  This Option is exercisable by delivery of an exercise
notice,  which shall state the election  to exercise  the Option,  the number of
Shares in respect of which the Option  is  being   exercised   (the   "Exercised
Shares"),   and  such  other representations and agreements as may be required
by the Company pursuant to the provisions of the Plan.  The Exercise  Notice
shall be completed by the Optionee and delivered to Shareholder  Services
Department of the Company.  The Exercise Notice shall be accompanied by payment
of the aggregate Exercise Price as to all Exercised  Shares.  This Option shall
be deemed to be exercised  upon receipt by the Company of such fully executed
Exercise Notice accompanied by such aggregate Exercise Price.

         No Shares  shall be issued  pursuant  to the  exercise  of this  Option
unless such issuance and exercise  complies with Applicable Laws.  Assuming such
compliance,  for income tax purposes the  Exercised  Shares shall be  considered
transferred  to the Optionee on the date the Option is exercised with respect to
such Exercised Shares.

3. METHOD OF PAYMENT. Payment of the aggregate Exercise Price shall be by any of
the following,  or a combination  thereof, at the election of the Optionee:  (a)
cash; or (b) cashier's or certified check; or (c) consideration  received by the
Company  under  a  cashless  exercise  program  implemented  by the  Company  in
connection with the Plan; or (d) surrender of other Shares which (i) in the case
of Shares  acquired upon exercise of an option,  have been owned by the Optionee
for more  than six (6)  months  on the date of  surrender,  and (ii) have a Fair
Market Value on the date of surrender  equal to the aggregate  Exercise Price of
the  Exercised  Shares.

4. TRANSFERABILITY  OF OPTION.  This Option may not be transferred  in any
manner  otherwise  than by will or by the laws of descent or distribution  and
may be exercised  during the lifetime of Optionee  only by the Optionee.  The
terms of the Plan and this Option Agreement shall be binding upon the executors,
administrators, heirs, successors and assigns of the Optionee.

5. TERM OF OPTION. This Option may be exercised only within the term set out in
the Notice of Grant,  and may be exercised  during such term only in accordance
with the Plan and the terms of this Option Agreement.

6. TAX CONSEQUENCES.  Some of the federal tax consequences relating to this
Option, as of the date of this Option, are set forth below.  THIS SUMMARY IS
NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE.
THE OPTIONEE SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THIS OPTION OR
DISPOSING OF THE SHARES.

(a)      EXERCISING THE OPTION.

(i) NONSTATUTORY STOCK OPTION. The Optionee may incur regular federal income tax
liability  upon  exercise  of a NSO.  The  Optionee  will be  treated  as having
received compensation income (taxable at ordinary income tax rates) equal to the
excess,  if any, of the Fair Market Value of the Exercised Shares on the date of
exercise over their aggregate  Exercise Price. If the Optionee is an Employee or
a former  Employee,  the Company  will be  required to withhold  from his or her
compensation  or  collect  from  Optionee  and  pay  to  the  applicable  taxing
authorities an amount in cash equal to a percentage of this compensation  income
at the time of  exercise,  and may  refuse to honor the  exercise  and refuse to
deliver  Shares if such  withholding  amounts are not  delivered  at the time of
exercise.

(ii) INCENTIVE STOCK OPTION.  If this Option qualifies as an ISO, the
Optionee will have no regular  federal  income tax liability  upon its exercise,
although the excess, if any, of the Fair Market Value of the Exercised Shares on
the date of exercise over their  aggregate  Exercise Price will be treated as an
adjustment to  alternative  minimum  taxable income for federal tax purposes and
may subject the Optionee to alternative minimum tax in the year of exercise.  In
the event  that the  Optionee  ceases to be an  Employee  but  remains a Service
Provider,  any Incentive  Stock Option of the Optionee that remains  unexercised
shall cease to qualify as an Incentive  Stock Option and will be treated for tax
purposes as a Nonstatutory Stock Option on the date three (3) months and one (1)
day following such change of status.

(b)      DISPOSITION OF SHARES.

(i) NSO.  If the  Optionee  holds NSO  Shares  for at least  one year,  any gain
realized on disposition of the Shares will be treated as long-term  capital gain
for federal income tax purposes.

(ii) ISO. If the Optionee holds ISO Shares for at least one year after  exercise
and two years after the grant date,  any gain realized on disposition of the
Shares will be treated as long-term capital gain for federal income tax
purposes.  If the Optionee  disposes of ISO Shares within one year after
exercise or two years after the grant date, any gain realized on such
disposition  will be treated as compensation  income (taxable at ordinary income
rates) to the  extent of the  excess,  if any,  of the lesser of (A) the
difference  between the Fair Market Value of the Shares  acquired on the date of
exercise and the aggregate  Exercise  Price,  or (B) the difference  between the
sale price of such Shares and the aggregate  Exercise Price. Any additional gain
will be taxed as capital gain,  short-term or long-term  depending on the period
that the ISO Shares were held.

(c)        Notice of Disqualifying  Disposition of ISO Shares. If the Optionee
sells or otherwise disposes of any of the Shares acquired pursuant to an ISO on
or before the later of (i) two years  after the  grant  date,  or (ii) one year
after the exercise date, the Optionee shall  immediately  notify the Company in
writing of such  disposition.  The Optionee agrees that he or she may be subject
to income tax withholding by the Company on the compensation  income  recognized
from such early  disposition  of ISO  Shares  by  payment  in cash or out of the
current earnings paid to the Optionee.

7.  ENTIRE  AGREEMENT;  GOVERNING  LAW.  The  Plan  is  incorporated  herein  by
reference. The Plan and this Option Agreement constitute the entire agreement of
the parties with  respect to the subject  matter  hereof and  supersede in their
entirety all prior  undertakings and agreements of the Company and Optionee with
respect to the subject matter hereof,  and may not be modified  adversely to the
Optionee's  interest  except by means of a writing  signed  by the  Company  and
Optionee.  This agreement is governed by the internal  substantive laws, but not
the choice of law rules, of Utah.

8.  NO GUARANTEE OF CONTINUED SERVICE. OPTIONEE ACKNOWLEDGES AND AGREES THAT THE
VESTING OF SHARES  PURSUANT  TO THE  VESTING  SCHEDULE  HEREOF IS EARNED ONLY BY
CONTINUING AS A SERVICE PROVIDER AT THE WILL OF THE COMPANY (AND NOT THROUGH THE
ACT OF BEING HIRED,  BEING  GRANTED AN OPTION OR PURCHASING  SHARES  HEREUNDER).
OPTIONEE FURTHER  ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT,  THE TRANSACTIONS
CONTEMPLATED  HEREUNDER  AND  THE  VESTING  SCHEDULE  SET  FORTH  HEREIN  DO NOT
CONSTITUTE  AN EXPRESS OR IMPLIED  PROMISE OF CONTINUED  ENGAGEMENT AS A SERVICE
PROVIDER  FOR THE  VESTING  PERIOD,  FOR ANY  PERIOD,  OR AT ALL,  AND SHALL NOT
INTERFERE WITH OPTIONEE'S  RIGHT OR THE COMPANY'S RIGHT TO TERMINATE  OPTIONEE'S
RELATIONSHIP AS A SERVICE PROVIDER AT ANY TIME, WITH OR WITHOUT CAUSE.



<PAGE>



         By your  signature and the  signature of the  Company's  representative
below,  you and the Company agree that this Option is granted under and governed
by the terms and conditions of the Plan and this Option Agreement.  Optionee has
reviewed  the Plan and  this  Option  Agreement  in their  entirety,  has had an
opportunity  to obtain the  advice of counsel  prior to  executing  this  Option
Agreement and fully understands all provisions of the Plan and Option Agreement.
Optionee hereby agrees to accept as binding,  conclusive and final all decisions
or  interpretations of the Administrator upon any questions relating to the Plan
and Option  Agreement.  Optionee  further  agrees to notify the Company upon any
change in the residence address indicated below.

OPTIONEE:                                                     Novell, Inc.


Signature


Print Name


Residence Address


Residence Address