Document:

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                                                                    EXHIBIT 10.1

                                REPLICASE, INC.

                            1998 STOCK OPTION PLAN

     1.   Purposes of the Plan.  This 1998 Stock Option Plan is designed to
          --------------------
attract and retain the best available personnel for positions of substantial
responsibility and 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 of an Option
and subject to the applicable provisions of Section 422 of the Code and the
regulations promulgated thereunder.

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

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

          (b)  "Applicable Laws" means the legal requirements relating to the
administration of stock option plans under U.S. state corporate laws, U.S.
federal and state securities laws, the Code and the applicable laws of any
foreign country or jurisdiction where Options are, or will be, granted under the
Plan.

          (c)  "Board" means the Board of Directors of the Company.

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

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

          (f)  "Common Stock" means the Common Stock of the Company.

          (g)  "Company" means Replicase, Inc., a Delaware corporation.

          (h)  "Consultant" means any person who is engaged by the Company or
any Parent or Subsidiary to render consulting or advisory services and is
compensated for such services, and any Director of the Company whether
compensated for such services or not. If the Company registers any class of any
equity security pursuant to the Exchange Act, the term Consultant shall
thereafter not include Directors who are not compensated for their services or
are paid only a Director's fee by the Company.

          (i)  "Continuous Status as an Employee or Consultant" means that the
employment or consulting relationship with the Company, any Parent or Subsidiary
is not interrupted or terminated.  Continuous Status as an Employee or
Consultant shall not be considered interrupted in the case of (i) any leave of
absence approved by the Company or (ii) transfers between locations of the
Company or between the Company, its Parent, any Subsidiary, or any successor.  A
leave of absence approved by the Company shall include sick leave, military
leave, or any other personal leave approved by an authorized representative of
the
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Company.  For purposes of Incentive Stock Options, no such leave may exceed 90
days, unless reemployment upon expiration of such leave is guaranteed by statute
or contract, including Company policies.  If reemployment upon expiration of a
leave of absence approved by the Company is not so guaranteed, on 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.

          (j)  "Director" means a member of the Board of Directors of the
Company.

          (k)  "Employee" means any person, including Officers and Directors,
employed by the Company or any Parent or Subsidiary of the Company.  The payment
of a Director's fee by the Company shall not be sufficient to constitute
"employment" by the Company.

          (l)  "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

          (m)  "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, its Fair Market
     Value shall be the mean between the high bid and low asked prices for the
     Common Stock on the last market trading day prior to the day of
     determination; or

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

          (n)  "Incentive Stock Option" means an Option intended to qualify as
an incentive stock option within the meaning of Section 422 of the Code.

          (o)  "Nonstatutory Stock Option" means an Option not intended to
qualify as an Incentive Stock Option.

          (p)  "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.

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          (q)  "Option" means a stock option granted pursuant to the Plan.

          (r)  "Optioned Stock" means the Common Stock subject to an Option.

          (s)  "Optionee" means an Employee or Consultant who receives an
Option.

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

          (u)  "Plan" means this 1998 Stock Option Plan.

          (v)  "Section 16(b)" means Section 16(b) of the Securities Exchange
Act of 1934, as amended.

          (w)  "Share" means a share of the Common Stock, as adjusted in
accordance with Section 12 below.

          (x)   "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 12 of
          -------------------------
the Plan, the maximum aggregate number of Shares that may be subject to option
and sold under the Plan is Two Million Nine Hundred Twenty-Nine Thousand Four
Hundred Thirty-Four (2,929,434) Shares.  The Shares may be authorized but
unissued, or reacquired Common Stock.

          If an Option expires or becomes unexercisable without having been
exercised in full, or is surrendered pursuant to an option exchange program, the
unpurchased Shares that were subject thereto shall become available for future
grant or sale under the Plan (unless the Plan has terminated).  However, Shares
that have actually been issued under the Plan, upon exercise of an Option, shall
not be returned to the Plan and shall not become available for future
distribution under the Plan, except that if Shares are repurchased by the
Company at their original purchase price, and the original purchaser of such
Shares did not receive any benefits of ownership of such Shares, such Shares
shall become available for future grant under the Plan.  For purposes of the
preceding sentence, voting rights shall not be considered a benefit of Share
ownership.

     4.   Administration of the Plan.
          --------------------------

          (a)  Initial Plan Procedure.  Prior to the date, if any, upon which
               ----------------------
the Company becomes subject to the Exchange Act, the Plan shall be administered
by the Board or a Committee appointed by the Board.

          (b)  Plan Procedure after the Date, if any, upon which the Company
               -------------------------------------------------------------
Becomes Subject to the Exchange Act.
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               (i)   Multiple Administrative Bodies.  If permitted by Rule
                     ------------------------------
16b-3, the Plan may be administered by different bodies with respect to
Directors, Officers and Employees who are neither Directors nor Officers.

               (ii)  Administration with Respect to Directors and Officers. With
                     -----------------------------------------------------
     respect to grants of Options to Employees who are also Officers or
     Directors of the Company, the Plan shall be administered by (A) the Board
     if the Board may administer the Plan in compliance with the rules under
     Rule 16b-3 promulgated under the Exchange Act or any successor thereto
     ("Rule 16b-3") relating to the disinterested administration of employee
     benefit plans under which Section 16(b) exempt discretionary grants and
     awards of equity securities are to be made, or (B) a Committee designated
     by the Board to administer the Plan, which Committee shall be constituted
     to comply with the rules under Rule l6b-3 relating to the disinterested
     administration of employee benefit plans under which Section 16(b) exempt
     discretionary grants and awards of equity securities are to be made. Once
     appointed, such Committee shall continue to serve in its designated
     capacity until otherwise directed by the Board. From time to time the Board
     may increase the size of the Committee and appoint additional members
     thereof, remove members (with or without cause) and appoint new members in
     substitution therefor, fill vacancies, however caused, and remove all
     members of the Committee and thereafter directly administer the Plan, all
     to the extent permitted by the rules under Rule l6b-3 relating to the
     disinterested administration of employee benefit plans under which Section
     16(b) exempt discretionary grants and awards of equity securities are to be
     made.

               (iii) Administration with Respect to Other Employees and
                     --------------------------------------------------
     Consultants.  With respect to grants of Options and to Employees or
     -----------
     Consultants who are neither Directors nor Officers of the Company, the Plan
     shall be administered by (A) the Board or (B) a Committee designated by the
     Board, which committee shall be constituted in such a manner as to satisfy
     Applicable Laws.  Once appointed, such Committee shall continue to serve in
     its designated capacity until otherwise directed by the Board.  From time
     to time the Board may increase the size of the Committee and appoint
     additional members thereof, remove members (with or without cause) and
     appoint new members in substitution therefor, fill vacancies, however
     caused, and remove all members of the Committee and thereafter directly
     administer the Plan, all to the extent permitted by the Applicable Laws.

          (c)  Powers of the Administrator.  Subject to the provisions of the
               ---------------------------
Plan and, in the case of a Committee, the specific duties delegated by the Board
to such Committee, and subject to the approval of any relevant authorities,
including the approval, if required, of any stock exchange upon which the Common
Stock is listed, the Administrator shall have the authority in its discretion:

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

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

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

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

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

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

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

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

               (ix)   to provide for the early exercise of Options for the
     purchase of unvested shares subject to such terms and conditions as the
     Administrator may determine; and

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

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

     5.   Elipibility.
          -----------

          (a)  Nonstatutory Stock Options may be granted to Employees and
Consultants.  Incentive Stock Options may be granted only to Employees.  An
Employee or Consultant who has been granted an Option may, if otherwise
eligible, be granted additional Options.

          (b)  Each Option shall be designated in the written 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 5(b), Incentive Stock Options shall be taken into account in the order
in which they were granted. The

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Fair Market Value of the Shares shall be determined as of the time the Option
with respect to such Shares is granted.

          (c)  Neither the Plan nor any Option shall confer upon any Optionee
any right with respect to continuation of his or her employment or consulting
relationship with the Company, nor shall it interfere in any way with his or her
right or the Company's right to terminate his or her employment or consulting
relationship at any time, with or without cause.

          (d)  Upon the Company or a successor corporation issuing any class of
common equity securities required to be registered under Section 12 of the
Exchange Act or upon the Plan being assumed by a corporation having a class of
common equity securities required to be registered under Section 12 of the
Exchange Act, the following limitations shall apply to grants of Options to
Employees:

               (i)  The foregoing limitations shall be adjusted proportionately
     in connection with any change in the Company's capitalization as described
     in Section 11.

               (ii) If an Option is cancelled in the same fiscal year of the
     Company in which it was granted (other than in connection with a
     transaction described in Section 11), the cancelled Option shall be counted
     against the limit set forth in subsection (i) above.  For this purpose, if
     the exercise price of an Option is reduced, such reduction will be treated
     as a cancellation of the Option and the grant of a new Option.

     6.   Term of Plan.  The Plan shall become effective upon the earlier to
          ------------
occur of its adoption by the Board of Directors or its approval by the
stockholders of the Company, as described in Section 17 of the Plan.  It shall
continue in effect for a term of ten (10) years unless sooner terminated under
Section 13 of the Plan.

     7.   Term of Option.  The term of each Option shall be the term stated in
          --------------
the Option Agreement; provided, however, that the term shall be no more than ten
(10) years from the date of grant thereof.  In the case of an Incentive Stock
Option granted to an Optionee who, at the time the Option is granted, owns stock
representing more than ten percent (10%) of the voting power of all classes of
stock of the Company or any Parent or Subsidiary, the term of the Option shall
be five (5) years from the date of grant thereof or such shorter term as may be
provided in the Option Agreement.

     8.   Option Exercise Price and Consideration.
          ---------------------------------------

          (a)  The per share exercise price for the Shares to be issued upon
exercise of an Option shall be such price as is determined by the Administrator,
but shall be subject to the following:

               (i)  In the case of an Incentive Stock Option

                    (A)  granted to an Employee who, at the time of grant of
     such Option, owns stock representing more than ten percent (10%) of the
     voting power

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     of all classes of stock of the Company or any Parent or Subsidiary, the per
     Share exercise price shall be no less than 110% of the Fair Market Value
     per Share on the date of grant.

                    (B)  granted to any other Employee, the per Share exercise
     price shall be no less than 100% of the Fair Market Value per Share on the
     date of grant.

               (ii) In the case of a Nonstatutory Stock Option

                    (A)  granted to a person who, at the time of grant of such
     Option, owns stock representing more than ten percent (10%) of the voting
     power of all classes of stock of the Company or any Parent or Subsidiary,
     the per Share exercise price shall be no less than 110% of the Fair Market
     Value per Share on the date of the grant.

                    (B)  granted to any other person, the per Share exercise
     price shall be no less than 85% of the Fair Market Value per Share on the
     date of grant.

          (b)  The consideration to be paid for the Shares to be issued upon
exercise of an Option, including the method of payment, shall be determined by
the Administrator (and, in the case of an Incentive Stock Option, shall be
determined at the time of grant).  Such consideration may consist of (1) cash,
(2) check, (3) promissory note, (4) other Shares that (x) 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 (y) have a Fair Market Value on
the date of surrender equal to the aggregate exercise price of the Shares as to
which such Option shall be exercised, (5) delivery of a properly executed
exercise notice together with such other documentation as the Administrator and
a broker, if applicable, shall require to effect an exercise of the Option and
delivery to the Company of the sale or loan proceeds required to pay the
exercise price, or (6) any combination of the foregoing methods of payment.  In
making its determination as to the type of consideration to accept, the
Administrator shall consider if acceptance of such consideration may be
reasonably expected to benefit the Company.

     9.   Exercise of Option.
          ------------------

          (a)  Procedure for Exercise; Rights as a Stockholder.  Any Option
               -----------------------------------------------
granted hereunder shall be exercisable at such times and under such conditions
as determined by the Administrator, including performance criteria with respect
to the Company and/or the Optionee, and as shall be permissible under the terms
of the Plan.

          An Option may not be exercised for a fraction of a Share.

          An Option shall be deemed to be exercised when written notice of such
exercise has been given to the Company in accordance with the terms of the
Option by the person entitled to exercise the Option and full payment for the
Shares with respect to which the Option is exercised has been received by the
Company.  Full payment may, as authorized by the

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Administrator, consist of any consideration and method of payment allowable
under Section 8(b) hereof.  Until the issuance (as evidenced by the appropriate
entry on the books of the Company or of a duly authorized transfer agent of the
Company) of the stock certificate evidencing such Shares, no right to vote,
receive dividends or any other rights as a stockholder shall exist with respect
to the Optioned Stock, notwithstanding the exercise of the Option.  The Company
shall issue (or cause to be issued) such stock certificate promptly upon
exercise of the Option.  No adjustment shall be made for a dividend or other
right for which the record date is prior to the date the stock certificate is
issued, except as provided in Section 11 hereof.

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

          (b)  Termination of Employment or Consulting Relationship.  In the
               ----------------------------------------------------
event of termination of an Optionee's Continuous Status as an Employee or
Consultant (but not in the event of an Optionee's change of status from Employee
to Consultant (in which case an Employee's Incentive Stock Option shall
automatically convert to a Nonstatutory Stock Option on the date three (3)
months and one day following such change of status) or from Consultant to
Employee), such Optionee may, but only within such period of time as is
determined by the Administrator, of at least thirty (30) days, with such
determination in the case of an Incentive Stock Option not exceeding three (3)
months after the date of such termination (but in no event later than the
expiration date of the term of such Option as set forth in the Option
Agreement), exercise his or her Option to the extent that the Optionee was
entitled to exercise it at the date of such termination.  To the extent that the
Optionee was not entitled to exercise the Option at the date of such
termination, or if the Optionee does not exercise such Option to the extent so
entitled within the time specified herein, the Option shall terminate.

          (c)  Disability of Optionee.  In the event of termination of an
               ----------------------
Optionee's Continuous Status as an Employee or Consultant as a result of his or
her disability, the Optionee may, but only within twelve (12) months from the
date of such termination (and in no event later than the expiration date of the
term of such Option as set forth in the Option Agreement), exercise the Option
to the extent otherwise entitled to exercise it at the date of such termination.
If such disability is not a "disability" as such term is defined in Section
22(e)(3) of the Code, in the case of an Incentive Stock Option such Incentive
Stock Option shall automatically cease to be treated as an Incentive Stock
Option and shall be treated for tax purposes as a Nonstatutory Stock Option on
the day three months and one day following such termination.  To the extent that
the Optionee was not entitled to exercise the Option at the date of termination,
or if the Optionee does not exercise such Option to the extent so entitled
within the time specified herein, the Option shall terminate, and the Shares
covered by such Option shall revert to the Plan.

          (d)  Death of Optionee.  In the event of the death of an Optionee, the
               -----------------
Option may be exercised at any time within twelve (12) months following the date
of death (but in no event later than the expiration of the term of such Option
as set forth in the Notice of Grant) by the Optionee's estate or by a person who
acquired the right to exercise the Option by bequest

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or inheritance, but only to the extent that the Optionee was entitled to
exercise the Option on the date of death.  If, at the time of death, the
Optionee was not entitled to exercise his or her entire Option, the Shares
covered by the unexercisable portion of the Option shall immediately revert to
the Plan.  If, after the Optionee's death, the Optionee's estate or a person who
acquires the right to exercise the Option by bequest or inheritance does not
exercise the Option within the time specified herein, the Option shall
terminate, and the Shares covered by such Option shall revert to the Plan.

          (e)  Rule 16b-3.  Options granted to persons subject to Section 16(b)
               ----------
of the Exchange Act must comply with Rule 16b-3 and shall contain such
additional conditions or restrictions as may be required thereunder to qualify
for the maximum exemption from Section 16 of the Exchange Act with respect to
Plan transactions.

          (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.

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

     11.  Adjustments Upon Changes in Capitalization or Merge.
          ---------------------------------------------------

          (a)  Changes in Capitalization.  Subject to any required action by the
               -------------------------
stockholders of the Company, the number of shares of Common Stock covered by
each outstanding Option, and the number of shares of Common Stock that have been
authorized for issuance under the Plan but as to which no Option has yet been
granted or that has been returned to the Plan upon cancellation or expiration of
an Option, as well as the price per share of Common Stock covered by each such
outstanding Option, shall be proportionately adjusted for any increase or
decrease in the number of issued shares of Common Stock resulting from a stock
split, reverse stock split, stock dividend, combination or reclassification of
the Common Stock, or any other increase or decrease in the number of issued
shares of Common Stock effected without receipt of consideration by the Company.
The 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 Option.

          (b)  Dissolution or Liquidation.  In the event of the proposed
               --------------------------
dissolution or liquidation of the Company, the Administrator shall notify the
Optionee at least fifteen (15) days prior to such proposed action.  To the
extent it has not been previously

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exercised, the Option shall terminate immediately prior to the consummation of
such proposed action.

          (c)  Merge.  In the event of a merger of the Company with or into
               -----
another corporation, each outstanding Option may be assumed or an equivalent
option or right may be substituted by such successor corporation or a parent or
subsidiary of such successor corporation.  If, in such event, an Option is not
assumed or substituted, the Option shall terminate as of the date of the closing
of the merger.  For the purposes of this paragraph, the Option shall be
considered assumed if, following the merger, the Option confers the right to
purchase or receive, for each Share of Optioned Stock subject to the Option
immediately prior to the merger, the consideration (whether stock, cash, or
other securities or property) received in the merger by holders of Common Stock
for each Share held on the effective date of the transaction (and if the holders
are offered a choice of consideration, the type of consideration chosen by the
holders of a majority of the outstanding Shares).  If such consideration
received in the merger 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, for each Share of Optioned Stock subject to the Option, to be solely
common stock of the successor corporation or its Parent equal in fair market
value to the per share consideration received by holders of Common Stock in the
merger.

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

     13.  Amendment and Termination of the Plan.
          -------------------------------------

          (a)  Amendment and Termination.  The Board may at any time amend,
               -------------------------
alter, suspend or discontinue the Plan, but no amendment, alteration, suspension
or discontinuation shall be made that would impair the rights of any Optionee
under any grant theretofore made, without his or her consent.  In addition, to
the extent necessary and desirable to comply with Rule 16b-3 under the Exchange
Act or with Section 422 of the Code (or any other applicable law or regulation,
including the requirements of the NASD or an established stock exchange), the
Company shall obtain stockholder approval of any Plan amendment in such a manner
and to such a degree as required.

          (b)  Effect of Amendment or Termination.  Any such amendment or
               ----------------------------------
termination of the Plan shall not affect Options already granted, and such
Options shall remain in full force and effect as if this Plan had not been
amended or terminated, unless mutually agreed otherwise between the Optionee and
the Administrator, which agreement must be in writing and signed by the Optionee
and the Company.

     14.  Conditions upon Issuance of Shares.  Shares shall not be issued
          ----------------------------------
pursuant to the exercise of an Option unless the exercise of such Option and the
issuance and delivery of such Shares pursuant thereto shall comply with all
relevant provisions of law, including, without

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limitation, the Securities Act of 1933, as amended, the Exchange Act, the rules
and regulations promulgated thereunder, and the requirements of any stock
exchange upon which the Shares may then be listed, and shall be further subject
to the approval of counsel for the Company with respect to such compliance.

          As a condition to the exercise of an Option, the Company may require
the person exercising such Option to represent and warrant at the time of any
such exercise that the Shares are being purchased only for investment and
without any present intention to sell or distribute such Shares if, in the
opinion of counsel for the Company, such a representation is required by any of
the aforementioned relevant provisions of law.

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

          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.

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

     17.  Stockholder Approval.  Continuance of the Plan shall be subject to
          --------------------
approval by the stockholders of the Company within twelve (12) months before or
after the date the Plan is adopted.  Such stockholder approval shall be obtained
in the degree and manner required under Applicable Laws and the rules of any
stock exchange upon which the Common Stock is listed.

     18.  Information to Optionees and Purchasers.  The Company shall provide to
          ---------------------------------------
each Optionee and to each individual who acquires Shares pursuant to the Plan,
not less frequently than annually during the period such Optionee or purchaser
has one or more Options outstanding, and, in the case of an individual who
acquires Shares pursuant to the Plan, during the period such individual owns
such Shares, copies of annual financial statements.  The Company shall not be
required to provide such statements to key employees whose duties in connection
with the Company assure their access to equivalent information.

                                       11
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                                REPLICASE, INC.

                            1998 STOCK OPTION PLAN

                            STOCK OPTION AGREEMENT

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

I.   NOTICE OF STOCK OPTION GRANT
     ----------------------------

     ((F1))

     You have been granted an option to purchase Common Stock of the Company,
subject to the terms and conditions of the Plan and this Stock Option Agreement.
The Terms of your grant are set forth below:

     Date of Grant                          ((F2))

     Vesting Commencement Date              ((F3))

     Exercise Price per Share               $0. 10 per share

     Total Number of Shares Granted         ((F4))

     Total Exercise Price                   $((F5))

     Type of Option:                X       Incentive Stock Option
                                  ------

                                  ------    Nonstatutory Stock Option

     Term/Expiration Date:                  ((F61))

     Exercise and Vesting Schedule:
     -----------------------------

     The Shares subject to this Option shall vest according to the following
schedule:

     No Shares are currently vested 25% of the Shares subject to the Option
(rounded down to the next whole number of shares) shall vest one year after the
Vesting Commencement Date, and 1/48th of the Shares subject to the Option
(rounded down to the next whole number of shares) shall vest on the first day of
each month thereafter, so that all of the Shares shall be vested on the first
day of the 48th month after the Vesting Commencement Date.
<PAGE>

Termination Period:
-------------------

     This Option may be exercised, to the extent vested, for thirty days after
termination of Optionee's employment or consulting relationship.  A longer
period may be applicable, however, upon death or disability of Optionee as
provided in the Plan, but in no event later than the Term/Expiration Date as
provided above.

II.  AGREEMENT
     ---------

     1.   Grant of Option.  The Company hereby grants to the Optionee an Option
          ---------------
to purchase the Common Stock (the "Shares") set forth in the Notice of Grant, at
the exercise price per share set forth in the Notice of Grant (the "Exercise
Price").  Notwithstanding anything to the contrary anywhere else in this Option
Agreement, this grant of an Option is subject to the terms, definitions and
provisions of the 1998 Stock Option Plan (the "Plan") adopted by the Company,
which is incorporated herein by reference.

          If designated in the Notice of Grant as an Incentive Stock Option
("ISO"), this Option is intended to qualify as an ISO as defined in Section 422
of the Code.

     2.   Exercise of Option.  This Option is exercisable as follows:
          ------------------

          (i)  Right to Exercise.
               -----------------

               (a)  Subject to subsections 2(i)(b) through 2(i)(d) below, this
Option shall be exercisable cumulatively according to the vesting schedule set
out in the Notice of Grant. Shares subject to this Option shall vest based on
continued employment of or consulting services by Optionee with the Company.

               (b)  This Option may not be exercised for a fraction of a Share.

               (c)  In the event of Optionee's death, disability or other
termination of the employment or consulting relationship, the exercisability of
the Option is governed by Sections 7, 8 and 9 below.

               (d)  In no event may this Option be exercised after the date of
expiration of the term of this Option as set forth in the Notice of Grant.

          (ii) Method of Exercise.  This Option shall be exercisable by written
               ------------------
Notice (in the form attached as Exhibit A).  The Notice must state the number of
                                ---------
Shares for which the Option is being exercised, and such other representations
and agreements with respect to such shares of Common Stock as may be required by
the Company pursuant to the provisions of the Plan.  The Notice must be signed
by the Optionee and shall be delivered in person or by certified mail to the
Secretary of the Company.  The Notice must be accompanied by payment of the
Exercise Price.  This Option shall be deemed to be exercised upon receipt by the
Company of such written Notice accompanied by the Exercise Price.
<PAGE>

          No Shares shall be issued pursuant to the exercise of an Option unless
such issuance and such exercise comply with all relevant provisions of law and
the requirements of any stock exchange upon which the Shares may then be listed.
Assuming such compliance, for income tax purposes the Shares shall be considered
transferred to the Optionee on the date on which the Option is exercised with
respect to such Shares.

     3.   Optionee's Representations.  If the Shares purchasable pursuant to the
          --------------------------
exercise of this Option have not been registered under the Securities Act of
1933, as amended (the "Securities Act"), at the time this Option is exercised,
Optionee shall, if required by the Company, concurrently with the exercise of
all or any portion of this Option, deliver to the Company his or her Investment
Representation Statement in the form attached hereto as Exhibit B.
                                                        ---------

     4.   Lock-Up Period.  Optionee hereby agrees that if so requested by the
          --------------
Company or any representative of the underwriters (the "Managing Underwriter")
in connection with any registration of the offering of any securities of the
Company under the Securities Act, Optionee shall not sell or otherwise transfer
any Shares or other securities of the Company during the 180-day period (or such
longer period as may be requested in writing by the Managing Underwriter and
agreed to in writing by the Company) (the "Market Standoff Period") following
the effective date of a registration statement of the Company filed under the
Securities Act; provided, however, that such restriction shall apply only to the
first registration statement of the Company to become effective under the
Securities Act that includes securities to be sold on behalf of the Company to
the public in an underwritten public offering under the Securities Act.  The
Company may impose stop-transfer instructions with respect to securities subject
to the foregoing restrictions until the end of such Market Standoff Period.

     5.   Method of Payment.  Payment of the Exercise Price shall be by any of
          -----------------
the following, or a combination thereof, at the election of the Optionee:

          (i)    cash; or

          (ii)   check; or

          (iii)  surrender of other shares of Common Stock of the Company which
(A) in the case of Shares acquired pursuant to the exercise of a Company option,
have been owned by the Optionee for more than six (6) months on the date of
surrender, and (B) have a Fair Market Value on the date of surrender equal to
the Exercise Price of the Shares as to which the Option is being exercised; or

          (iv)   to the extent permitted by the Administrator, delivery of a
properly executed exercise notice together with such other documentation as the
Administrator and the broker, if applicable, shall require to effect an exercise
of the Option and delivery to the Company of the sale or loan proceeds required
to pay the Exercise Price.

     6.   Restrictions on Exercise.  This Option may not be exercised until the
          ------------------------
Plan has been approved by the stockholders of the Company.  If the issuance of
Shares upon such exercise
<PAGE>

or if the method of payment for such shares would constitute a violation of any
applicable federal or state securities or other law or regulation, then the
Option may also not be exercised.  The Company may require Optionee to make any
representation and warranty to the Company as may be required by any applicable
law or regulation before allowing the Option to be exercised.

     7.   Termination of Relationship.  If an Optionee's Continuous Status as an
          ---------------------------
Employee or Consultant terminates, Optionee may exercise this Option during the
Termination Period set out in the Notice of Grant, to the extent the Option was
vested at the date of such termination (the "Termination Date").  To the extent
that Optionee was not vested in this Option at the date of such termination, or
if Optionee does not exercise this Option within the time specified herein, the
Option shall terminate.

     8.   Disability of Optionee.  Despite Section 6 above, if an Optionee's
          ----------------------
Continuous Status as an Employee or Consultant terminates as a result of his or
her disability, Optionee may exercise the Option to the extent the Option was
vested at the date of such termination, but only within twelve (12) months from
the date of such termination (and in no event later than the expiration date of
the term of such Option as set forth in the Stock Option Agreement).  To the
extent that Optionee is not vested in the Option at the date of termination, or
if Optionee does not exercise such Option within the time specified herein, the
Option shall terminate, and the Shares covered by such Option shall revert to
the Plan.

     9.   Death of Optionee.  If Optionee's Continuous Status as an Employee or
          -----------------
Consultant terminates as a result of the death of Optionee, the vested portion
of the Option may be exercised at any time within twelve (12) months following
the date of death (but in no event later than the date of expiration of the term
of this Option as set forth in Section 10 below) by Optionee's estate or by a
person who acquires the right to exercise the Option by bequest or inheritance.
To the extent that Optionee is not vested in the Option at the date of death, or
if the Option is not exercised within the time specified herein, the Option
shall terminate, and the Shares covered by such Option shall revert to the Plan.

     10.  Non-Transferability of Option.  This Option may not be transferred in
          -----------------------------
any manner except by will or by the laws of descent or distribution.  It may be
exercised during the lifetime of Optionee only by Optionee.  The terms of this
Option shall be binding upon the executors, administrators, heirs, successors
and assigns of the Optionee.

     11.  Term of Option.  This Option may be exercised only within the term set
          --------------
out in the Notice of Grant.

     12.  Tax Consequences.  Set forth below is a brief summary as of the date
          ----------------
of this Option of some of the federal and state tax consequences of exercise of
this Option and disposition of the Shares.  THIS SUMMARY IS NECESSARILY
INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE.  OPTIONEE
SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THIS OPTION OR DISPOSING OF THE
SHARES.
<PAGE>

          (i)    Exercise of ISO. If this Option qualifies as an ISO, there will
                 ---------------
be no regular federal income tax liability or state income tax liability upon
the exercise of the Option, although the excess, if any, of the Fair Market
Value of the Shares on the date of exercise over the Exercise Price will be
treated as an adjustment to the alternative minimum tax for federal tax purposes
and may subject the Optionee to the alternative minimum tax in the year of
exercise.

          (ii)   Exercise of ISO Following Disability.  If the Optionee's
                 ------------------------------------
Continuous Status as an Employee or Consultant terminates as a result of
disability that is not total and permanent disability as defined in Section
22(e)(3) of the Code, to the extent permitted on the date of termination, the
Optionee must exercise an ISO within 90 days of such termination for the ISO to
be qualified as an ISO.

          (iii)  Exercise of NSO.  There may be a regular federal income tax
                 ---------------
liability and state income tax liability upon the exercise of an 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 Shares on the date of exercise over the Exercise Price.  If Optionee is
an Employee, the Company will be required to withhold from Optionee's
compensation or collect from Optionee and pay to the applicable taxing
authorities an amount equal to a percentage of this compensation income at the
time of exercise.  If the Optionee is subject to Section 16 of the Securities
Act of 1934, as amended, the date of income recognition may be deferred for up
to six months.

          (iv)   Disposition of Shares. In the case of an NSO, if Shares are
                 ---------------------
held for the minimum long-term capital gain holding period in effect at the time
of disposition, any gain realized on disposition of the Shares will be treated
as long-term capital gain for federal and state income tax purposes. In the case
of an ISO, if Shares transferred pursuant to the Option are held for the minimum
long-term capital gain holding period in effect at the time of disposition (and
provided such holding period comprises at least one year after exercise of the
Option) and are disposed of at least two years after the Date of Grant, any gain
realized on disposition of the Shares will also be treated as long-term capital
gain for federal and state income tax purposes. If Shares purchased under an ISO
are disposed of after such one-year period following exercise, but before the
expiration of the minimum long-term capital gain holding period in effect at the
time of disposition, then gain realized on such disposition may be taxed as a
short-term capital gain, which may or may not be equivalent to taxation as
compensation income (taxable at ordinary income rates). If Shares purchased
under an ISO are disposed of within such one-year period or within two years
after the Date of Grant, any gain realized on such disposition will be treated
as compensation income to the extent of the difference between the Exercise
Price and the lesser of (1) the Fair Market Value of the Shares on the date of
exercise, or (2) the sale price of the Shares.

          (v)    Notice of Disqualifying Disposition of ISO Shares. If the
                 -------------------------------------------------
Option granted to Optionee herein is an ISO, and if Optionee sells or otherwise
disposes of any of the Shares acquired pursuant to the ISO on or before the
later of (1) the date two years after the Date of Grant, or (2) the date one
year after the date of exercise, the Optionee shall immediately notify the
Company in writing of such disposition. Optionee agrees that Optionee may be
subject to
<PAGE>

income tax withholding by the Company on the compensation income recognized by
the Optionee.

                                   REPLICASE, INC.

                                   By:____________________________

                                   Title:_________________________
<PAGE>

     OPTIONEE ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO THE
OPTION HEREOF IS EARNED ONLY BY CONTINUING CONSULTANCY OR EMPLOYMENT AT THE WILL
OF THE COMPANY (NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THIS OPTION OR
ACQUIRING SHARES HEREUNDER). OPTIONEE FURTHER ACKNOWLEDGES AND AGREES THAT
NOTHING IN THIS AGREEMENT, NOR IN THE COMPANY'S 1998 STOCK OPTION PLAN WHICH IS
INCORPORATED HEREIN BY REFERENCE, SHALL CONFER UPON OPTIONEE ANY RIGHT WITH
RESPECT TO CONTINUATION OF EMPLOYMENT OR CONSULTANCY BY THE COMPANY, NOR SHALL
IT INTERFERE IN ANY WAY WITH OPTIONEE'S RIGHT OR THE COMPANY'S RIGHT TO
TERMINATE OPTIONEE'S EMPLOYMENT OR CONSULTANCY AT ANY TIME, WITH OR WITHOUT
CAUSE.

     Optionee acknowledges receipt of a copy of the Plan and represents that he
is familiar with the terms and provisions thereof.  Optionee hereby accepts this
Option subject to all of the terms and provisions hereof.  Optionee has reviewed
the Plan and this Option in their entirety, has had an opportunity to obtain the
advice of counsel prior to executing this Option and fully understands all
provisions of the Option.  Optionee hereby agrees to accept as binding,
conclusive and final all decisions or interpretations of the Administrator upon
any questions arising under the Plan or this Option.  Optionee further agrees to
notify the Company upon any change in the residence address indicated below.

Dated: _____________________       _________________________________
                                   ((F1))

                                   Residence Address:

                                   __________________________________

                                   __________________________________
<PAGE>

                                   EXHIBIT A

                            1998 STOCK OPTION PLAN

                                EXERCISE NOTICE

Replicase, Inc.
Attn: President
1816 Embarcadero Road
Palo Alto, CA 94303

     1.   Exercise of Option.  Effective as of today, ____________, 19_, the
          ------------------
undersigned ("Optionee") hereby elects to exercise Optionee's option to purchase
______________ shares of the Common Stock (the "Shares") of Replicase, Inc., a
Delaware corporation (the "Company"), under and pursuant to the 1998 Stock
Option Plan (the "Plan") and the [ ] Incentive [ ] Nonstatutory Stock Option
Agreement dated _____________, 19__ (the "Option Agreement").

     2.   Representations of Optionee.  Optionee acknowledges that Optionee has
          ---------------------------
received, read and understood the Plan and the Option Agreement. Optionee agrees
to abide by and be bound by their terms and conditions.

     3.   Rights as Stockholder. Until the stock certificate evidencing such
          ---------------------
Shares is 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 stockholder shall exist with
respect to the Optioned Stock, notwithstanding the exercise of the Option. The
Company shall issue (or cause to be issued) such stock certificate 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 stock certificate
is issued, except as provided in Section 11 of the Plan.

     Optionee shall enjoy rights as a stockholder until such time as Optionee
disposes of the Shares or the Company and/or its assignee(s) exercises the Right
of First Refusal hereunder.  Upon such exercise, Optionee shall have no further
rights as a holder of the Shares so purchased except the right to receive
payment for the Shares so purchased in accordance with the provisions of this
Agreement, and Optionee shall forthwith cause the certificate(s) evidencing the
Shares so purchased to be surrendered to the Company for transfer or
cancellation.

     4.   Company's Right of First Refusal. Before any Shares held by Optionee
          --------------------------------
or any transferee (either being sometimes referred to herein as the "Holder")
may be sold or otherwise transferred (including transfer by gift or operation of
law), the Company or its assignee(s) shall have a right of first refusal to
purchase the Shares on the terms and conditions set forth in this Section (the
"Right of First Refusal").

          (a)  Notice of Proposed Transfer. The Holder of the Shares shall
               ---------------------------
deliver to the Company a written notice (the "Notice") stating: (i) the Holder's
bona fide intention to sell or
<PAGE>

otherwise transfer such Shares; (ii) the name of each proposed purchaser or
other transferee ("Proposed Transferee"); (iii) the number of Shares to be
transferred to each Proposed Transferee; and (iv) the bona fide cash price or
other consideration for which the Holder proposes to transfer the Shares (the
"Offered Price"), and the Holder shall offer the Shares at the Offered Price to
the Company or its assignee(s).

          (b)  Exercise of Right of First Refusal. Within thirty (30) days after
               ----------------------------------
receipt of the Notice, the Company and/or its assignee(s) may elect in writing
to purchase all, but not less than all, of the Shares proposed to be transferred
to any one or more of the Proposed Transferees. The purchase price will be
determined in accordance with subsection (c) below.

          (c)  Purchase Price. The purchase price ("Purchase Price") for the
               --------------
Shares repurchased under this Section shall be the Offered Price. If the Offered
Price includes consideration other than cash, the cash equivalent value of the
non-cash consideration shall be determined by the Board of Directors of the
Company in good faith.

          (d)  Payment. Payment of the Purchase Price shall be made, at the
               -------
option of the Company or its assignee(s), in cash (by check), by cancellation of
all or a portion of any outstanding indebtedness of the Holder to the Company
(or, in the case of repurchase by an assignee, to the assignee), or by any
combination thereof within 30 days after receipt of the Notice or in the manner
and at the times set forth in the Notice.

          (e)  Holder's Right to Transfer. If all of the Shares proposed in the
               --------------------------
Notice to be transferred to a given Proposed Transferee are not purchased by the
Company and/or its assignee(s) as provided in this Section, then the Holder may
sell or otherwise transfer such Shares to that Proposed Transferee at the
Offered Price or at a higher price, provided that such sale or other transfer is
consummated within 120 days after the date of the Notice and provided further
that any such sale or other transfer is effected in accordance with any
applicable securities laws and the Proposed Transferee agrees in writing that
the provisions of this Section shall continue to apply to the Shares in the
hands of such Proposed Transferee. If the Shares described in the Notice are not
transferred to the Proposed Transferee within such period, a new Notice shall be
given to the Company, and the Company and/or its assignees shall again be
offered the Right of First Refusal as provided herein before any Shares held by
the Holder may be sold or otherwise transferred.

          (f)  Exception for Certain Family Transfers. Anything to the contrary
               --------------------------------------
contained in this Section notwithstanding, the transfer of any or all of the
Shares during the Optionee's lifetime or on the Optionee's death by will or
intestacy to the Optionee's immediate family or a trust for the benefit of the
Optionee's immediate family shall be exempt from the provisions of this Section.
"Immediate Family" as used herein shall mean spouse, lineal descendant or
antecedent, father, mother, brother or sister or stepchild (whether or not
adopted). In such case, the transferee or other recipient shall receive and hold
the Shares so transferred subject to the provisions of this Section, and there
shall be no further transfer of such Shares except in accordance with the terms
of this Section.
<PAGE>

          (g)  Termination of Right of First Refusal. The Right of First Refusal
               -------------------------------------
shall terminate as to any Shares 90 days after the first sale of Common Stock of
the Company to the general public pursuant to a registration statement filed
with and declared effective by the Securities and Exchange Commission under the
Securities Act of 1933, as amended.

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

     6.   Restrictive Legends and Stop-Transfer Orders.
          --------------------------------------------

          (a)  Legends. Optionee understands and agrees that the Company shall
               -------
cause the legends set forth below or legends substantially equivalent thereto,
to be placed upon any certificate(s) evidencing ownership of the Shares together
with any other legends that may be required by state or federal securities laws:

          THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED
          UNDER THE SECURITIES ACT OF 1933 (THE "ACT") AND MAY NOT BE
          OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR
          HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT OR,
          IN THE OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY
          TO THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR
          TRANSFER, PLEDGE OR HYPOTHECATION IS IN COMPLIANCE
          THEREWITH.

          THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO
          CERTAIN RESTRICTIONS ON TRANSFER AND RIGHT OF FIRST REFUSAL
          OPTIONS HELD BY THE ISSUER OR ITS ASSIGNEE(S) AS SET FORTH
          IN THE EXERCISE NOTICE BETWEEN THE ISSUER AND THE ORIGINAL
          HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT
          THE PRINCIPAL OFFICE OF THE ISSUER. SUCH TRANSFER
          RESTRICTIONS AND RIGHT OF FIRST REFUSAL ARE BINDING ON
          TRANSFEREES OF THESE SHARES.

          (b)  Stop-Transfer Notices.  Optionee agrees that, in order to ensure
               ---------------------
compliance with the restrictions referred to herein, the Company may issue
appropriate "stop transfer" instructions to its transfer agent, if any, and
that, if the Company transfers its own securities, it may make appropriate
notations to the same effect in its own records.
<PAGE>

          (c)  Refusal to Transfer.  The Company shall not be required (i) to
               -------------------
transfer on its books any Shares that have been sold or otherwise transferred in
violation of any of the provisions of this Agreement or (ii) to treat as owner
of such Shares or to accord the right to vote or pay dividends to any purchaser
or other transferee to whom such Shares shall have been so transferred.

     7.   Successors and Assigns. The Company may assign any of its rights under
          ----------------------
this Agreement to single or multiple assignees, and this Agreement shall inure
to the benefit of the successors and assigns of the Company. Subject to the
restrictions on transfer herein set forth, this Agreement shall be binding upon
Optionee and his or her heirs, executors, administrators, successors and
assigns.

     8.   Intermetation. Any dispute regarding the interpretation of this
          -------------
Agreement shall be submitted by Optionee or by the Company forthwith to the
Company's Board of Directors or the committee thereof that administers the Plan,
which shall review such dispute at its next regular meeting. The resolution of
such a dispute by the Board or committee shall be final and binding on the
Company and on Optionee.

     9.   Governing Law; Severability.  This Agreement shall be governed by and
          ---------------------------
construed in accordance with the laws of the State of California excluding that
body of law pertaining to conflicts of law.  Should any provision of this
Agreement be determined by a court of law to be illegal or unenforceable, the
other provisions shall nevertheless remain effective and shall remain
enforceable.

     10.  Notices.  Any notice required or permitted hereunder shall be given in
          -------
writing and shall be deemed effectively given upon personal delivery or upon
deposit in the United States mail by certified mail, with postage and fees
prepaid, addressed to the other party at its address as shown below beneath its
signature, or to such other address as such party may designate in writing from
time to time to the other party.

     11.  Further Instruments. The parties agree to execute such further
          -------------------
instruments and to take such further action as may be reasonably necessary to
carry out the purposes and intent of this Agreement.

     12.  Delivery of Payment. Optionee herewith delivers to the Company the
          -------------------
full Exercise Price for the Shares.

     13.  Entire Agreement.  The Plan and Notice of Grant/Option Agreement are
          ----------------
incorporated herein by reference.  This Agreement, the Plan, the Option
Agreement and the Investment Representation Statement constitute the entire
agreement of the parties and supersede
<PAGE>

in their entirety all prior undertakings and agreements of the Company and
Optionee with respect to the subject matter hereof.

Submitted by:                           Accepted by:

OPTIONEE:                               REPLICASE, INC.

_______________________________         By:____________________________

                                        Its:___________________________

Address:
-------

_______________________________

_______________________________

_______________________________
<PAGE>

                                   EXHIBIT B
                                   ---------

                      INVESTMENT REPRESENTATION STATEMENT

OPTIONEE  :

COMPANY   :    REPLICASE, INC.

SECURITY  :    COMMON STOCK

AMOUNT    :

DATE      :

In connection with the purchase of the above-listed Securities, the undersigned
Optionee represents to the Company the following:

          (a)  Optionee is aware of the Company's business affairs and financial
condition and has acquired sufficient information about the Company to reach an
informed and knowledgeable decision to acquire the Securities.  Optionee is
acquiring these Securities for investment for Optionee's own account only and
not with a view to, or for resale in connection with, any "distribution" thereof
within the meaning of the Securities Act of 1933, as amended (the "Securities
Act").

          (b)  Optionee acknowledges and understands that the Securities
constitute "restricted securities" under the Securities Act and have not been
registered under the Securities Act in reliance upon a specific exemption
therefrom, which exemption depends upon, among other things, the bona fide
nature of Optionee's investment intent as expressed herein. In this connection,
Optionee understands that, in the view of the Securities and Exchange
Commission, the statutory basis for such exemption may be unavailable if
Optionee's representation was predicated solely upon a present intention to hold
these Securities for the minimum capital gains period specified under tax
statutes, for a deferred sale, for or until an increase or decrease in the
market price of the Securities, or for a period of one year or any other fixed
period in the future. Optionee further understands that the Securities must be
held indefinitely unless they are subsequently registered under the Securities
Act or an exemption from such registration is available. Optionee further
acknowledges and understands that the Company is under no obligation to register
the Securities. Optionee understands that the certificate evidencing the
Securities will be imprinted with a legend which prohibits the transfer of the
Securities unless they are registered or such registration is not required in
the opinion of counsel satisfactory to the Company and any other legend required
under applicable state securities laws.

          (c)  Optionee is familiar with the provisions of Rule 701 and Rule
144, each promulgated under the Securities Act, which, in substance, permit
limited public resale of "restricted securities" acquired, directly or
indirectly from the issuer thereof, in a non-public offering subject to the
satisfaction of certain conditions. Rule 701 provides that if the issuer
<PAGE>

qualifies under Rule 701 at the time of the grant of the Option to the Optionee,
the exercise will be exempt from registration under the Securities Act.  In the
event the Company becomes subject to the reporting requirements of Section 13 or
15(d) of the Securities Exchange Act of 1934, ninety (90) days thereafter (or
such longer period as any market stand-off agreement may require) the Securities
exempt under Rule 701 may be resold, subject to the satisfaction of certain of
the conditions specified by Rule 144, including: (1) the resale being made
through a broker in an unsolicited "broker's transaction" or in transactions
directly with a market maker (as said term is defined under the Securities
Exchange Act of 1934); and, in the case of an affiliate, (2) the availability of
certain public information about the Company, (3) the amount of Securities being
sold during any three month period not exceeding the limitations specified in
Rule 144(e), and (4) the timely filing of a Form 144, if applicable.

     In the event that the Company does not qualify under Rule 701 at the time
of grant of the Option, then the Securities may be resold in certain limited
circumstances subject to the provisions of Rule 144, which requires the resale
to occur not less than one year after the later of the date the Securities were
sold by the Company or the date the Securities were sold by an affiliate of the
Company, within the meaning of Rule 144; and, in the case of acquisition of the
Securities by an affiliate, or by a non-affiliate who subsequently holds the
Securities less than two years, the satisfaction of the conditions set forth in
sections (1), (2), (3) and (4) of the paragraph immediately above.

          (d)  Optionee further understands that in the event all of the
applicable requirements of Rule 701 or 144 are not satisfied, registration under
the Securities Act, compliance with Regulation A, or some other registration
exemption will be required; and that, notwithstanding the fact that Rules 144
and 701 are not exclusive, the Staff of the Securities and Exchange Commission
has expressed its opinion that persons proposing to sell private placement
securities other than in a registered offering and otherwise than pursuant to
Rules 144 or 701 will have a substantial burden of proof in establishing that an
exemption from registration is available for such offers or sales, and that such
persons and their respective brokers who participate in such transactions do so
at their own risk. Optionee understands that no assurances can be given that any
such other registration exemption will be available in such event.

                                   Signature of Optionee:

                                   ______________________________________

Dated: __________________, 19__<PAGE>

                                                                    EXHIBIT 10.2

                               SUPPORT.COM, INC.

                      2000 OMNIBUS EQUITY INCENTIVE PLAN

                  (Adopted by the Board on February 15, 2000)
<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                               Page
                                                                                                               ----
<S>                                                                                                            <C>
SECTION 1. ESTABLISHMENT AND PURPOSE............................................................................. 1

SECTION 2. DEFINITIONS........................................................................................... 1
   (a)   "Affiliate"............................................................................................. 1
   (b)   "Award"................................................................................................. 1
   (c)   "Board of Directors".................................................................................... 1
   (d)   "Change in Control"..................................................................................... 1
   (e)   "Code".................................................................................................. 2
   (f)   "Committee"............................................................................................. 2
   (g)   "Company"............................................................................................... 2
   (h)   "Consultant"............................................................................................ 2
   (i)   "Employee".............................................................................................. 2
   (j)   "Exchange Act".......................................................................................... 2
   (k)   "Exercise Price"........................................................................................ 2
   (l)   "Fair Market Value"..................................................................................... 2
   (m)   "ISO"................................................................................................... 3
   (n)   "Nonstatutory Option"................................................................................... 3
   (o)   "Offeree"............................................................................................... 3
   (p)   "Option"................................................................................................ 3
   (q)   "Optionee".............................................................................................. 3
   (r)   "Outside Director"...................................................................................... 3
   (s)   "Parent"................................................................................................ 3
   (t)   "Participant"........................................................................................... 3
   (u)   "Plan".................................................................................................. 3
   (v)   "Purchase Price"........................................................................................ 3
   (w)   "Restricted Share"...................................................................................... 3
   (x)   "Restricted Share Agreement "........................................................................... 3
   (y)   "SAR"................................................................................................... 3
   (z)   "SAR Agreement"......................................................................................... 3
   (aa)  "Service"............................................................................................... 3
   (bb)  "Share"................................................................................................. 4
   (cc)  "Stock"................................................................................................. 4
   (dd)  "Stock Option Agreement"................................................................................ 4
   (ee)  "Stock Purchase Agreement".............................................................................. 4
   (ff)  "Stock Unit"............................................................................................ 4
   (gg)  "Stock Unit Agreement".................................................................................. 4
   (hh)  "Subsidiary"............................................................................................ 4
   (ii)  "Total and Permanent Disability"........................................................................ 4

SECTION 3. ADMINISTRATION........................................................................................ 4
   (a)   Committee Procedures.................................................................................... 4
   (b)   Committee Responsibilities.............................................................................. 4
</TABLE>

                                      -i-
<PAGE>

<TABLE>
<S>                                                                                                              <C>
SECTION 4. ELIGIBILITY..........................................................................................  6
   (a)   General Rule...........................................................................................  6
   (b)   Outside Directors......................................................................................  6
   (c)   Limitation On Grants...................................................................................  6
   (d)   Ten-Percent Stockholders...............................................................................  6
   (e)   Attribution Rules......................................................................................  7
   (f)   Outstanding Stock......................................................................................  7

SECTION 5. STOCK SUBJECT TO PLAN................................................................................  7
   (a)   Basic Limitation.......................................................................................  7
   (b)   Annual Increase in Shares..............................................................................  7
   (c)   Additional Shares......................................................................................  7
   (d)   Dividend Equivalents...................................................................................  7

SECTION 6. RESTRICTED SHARES....................................................................................  8
   (a)   Restricted Stock Agreement.............................................................................  8
   (b)   Payment for Awards.....................................................................................  8
   (c)   Vesting................................................................................................  8
   (d)   Voting and Dividend Rights.............................................................................  8

SECTION 7. OTHER TERMS AND CONDITIONS OF AWARDS OR SALES........................................................  8
   (a)   Duration of Offers and Nontransferability of Rights....................................................  8
   (b)   Purchase Price.........................................................................................  9
   (c)   Withholding Taxes......................................................................................  9
   (d)   Restrictions on Transfer of Shares.....................................................................  9

SECTION 8. TERMS AND CONDITIONS OF OPTIONS......................................................................  9
   (a)   Stock Option Agreement.................................................................................  9
   (b)   Number of Shares.......................................................................................  9
   (c)   Exercise Price.........................................................................................  9
   (d)   Withholding Taxes......................................................................................  9
   (e)   Exercisability and Term................................................................................  9
   (f)   Nontransferability..................................................................................... 10
   (g)   Exercise of Options Upon Termination of Service........................................................ 10
   (h)   Effect of Change in Control............................................................................ 10
   (i)   Leaves of Absence...................................................................................... 10
   (j)   No Rights as a Stockholder............................................................................. 11
   (k)   Modification, Extension and Renewal of Options......................................................... 11
   (l)   Restrictions on Transfer of Shares..................................................................... 11
   (m)   Buyout Provisions...................................................................................... 11

SECTION 9. PAYMENT FOR SHARES................................................................................... 11
   (a)   General Rule........................................................................................... 11
   (b)   Surrender of Stock..................................................................................... 11
   (c)   Services Rendered...................................................................................... 11
   (d)   Cashless Exercise...................................................................................... 12
   (e)   Exercise/Pledge........................................................................................ 12
</TABLE>

                                     -ii-
<PAGE>

<TABLE>
<S>                                                                                                              <C>
   (f)   Promissory Note.........................................................................................12
   (g)   Other Forms of Payment................................................................................. 12

SECTION 10. STOCK APPRECIATION RIGHTS........................................................................... 12
   (a)   SAR Agreement.......................................................................................... 12
   (b)   Number of Shares....................................................................................... 12
   (c)   Exercise Price......................................................................................... 12
   (d)   Exercisability and Term................................................................................ 12
   (e)   Effect of Change in Control............................................................................ 13
   (f)   Exercise of SARs....................................................................................... 13
   (g)   Modification or Assumption of SARs..................................................................... 13

SECTION 11. STOCK UNITS......................................................................................... 13
   (a)   Stock Unit Agreement................................................................................... 13
   (b)   Payment for Awards..................................................................................... 13
   (c)   Vesting Conditions..................................................................................... 13
   (d)   Voting and Dividend Rights............................................................................. 14
   (e)   Form and Time of Settlement of Stock Units............................................................. 14
   (f)   Death of Recipient..................................................................................... 14
   (g)   Creditors' Rights...................................................................................... 14

SECTION 12. PROTECTION AGAINST DILUTION......................................................................... 15
   (a)   Adjustments............................................................................................ 15
   (b)   Dissolution or Liquidation............................................................................. 15
   (c)   Reorganizations........................................................................................ 15

SECTION 13. DEFERRAL OF AWARDS.................................................................................. 16

SECTION 14. AWARDS UNDER OTHER PLANS............................................................................ 16

SECTION 15. PAYMENT OF DIRECTOR'S FEES IN SECURITIES............................................................ 16
   (a)   Effective Date......................................................................................... 16
   (b)   Elections to Receive NSOs, Restricted Shares or Stock Units............................................ 16
   (c)   Number and Terms of NSOs, Restricted Shares or Stock Units............................................. 17

SECTION 16. ADJUSTMENT OF SHARES................................................................................ 17
   (a)   General................................................................................................ 17
   (b)   Reorganizations........................................................................................ 17
   (c)   Reservation of Rights.................................................................................. 17

SECTION 17. LEGAL AND REGULATORY REQUIREMENTS................................................................... 18

SECTION 18. WITHHOLDING TAXES................................................................................... 18
   (a)   General................................................................................................ 18
   (b)   Share Withholding...................................................................................... 18

SECTION 19. LIMITATION ON PARACHUTE PAYMENTS.................................................................... 18
   (a)   Scope of Limitation.................................................................................... 18
</TABLE>

                                     -iii-
<PAGE>

<TABLE>
<S>                                                                                                              <C>
   (b)   Supersedes Other Provisions............................................................................ 18

SECTION 20. NO EMPLOYMENT RIGHTS................................................................................ 18

SECTION 21. DURATION AND AMENDMENTS............................................................................. 19
   (a)   Term of the Plan....................................................................................... 19
   (b)   Right to Amend or Terminate the Plan................................................................... 19
   (c)   Effect of Amendment or Termination..................................................................... 19

SECTION 22. EXECUTION........................................................................................... 19
</TABLE>

                                     -iv-
<PAGE>

                               SUPPORT.COM, INC.
                              ------------------
                      2000 Omnibus Equity Incentive Plan
                      ----------------------------------

                  (Adopted by the Board on February 15, 2000)

SECTION 1.   ESTABLISHMENT AND PURPOSE.
--------------------------------------

     The Plan was adopted by the Board of Directors effective February 15, 2000.
The purpose of the Plan is to promote the long-term success of the Company and
the creation of stockholder value by (a) encouraging Employees, Outside
Directors and Consultants to focus on critical long-range objectives, (b)
encouraging the attraction and retention of Employees, Outside Directors and
Consultants with exceptional qualifications and (c) linking Employees, Outside
Directors and Consultants directly to stockholder interests through increased
stock ownership.  The Plan seeks to achieve this purpose by providing for Awards
in the form of Restricted Shares, Stock Units, Options (which may constitute
incentive stock options or nonstatutory stock options) or stock appreciation
rights.

SECTION 2.   DEFINITIONS.
------------------------

     (a)  "Affiliate" shall mean any entity other than a Subsidiary, if the
           ---------
Company and/or one of more Subsidiaries own not less than fifty percent (50%) of
such entity.

     (b)  "Award" shall mean any award of an Option, a SAR, a Restricted Share
           -----
or a Stock Unit under the Plan.

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

     (d)  "Change in Control" shall mean the occurrence of either of the
           -----------------
following events:

          (i)  A change in the composition of the Board of Directors, as a
     result of which fewer than one-half of the incumbent directors are
     directors who either:

               (A)  Had been directors of the Company twenty-four (24) months
          prior to such change; or

               (B)  Were elected, or nominated for election, to the Board of
          Directors with the affirmative votes of at least a majority of the
          directors who had been directors of the Company twenty-four (24)
          months prior to such change and who were still in office at the time
          of the election or nomination; or

          (ii) Any "person" (as such term is used in sections 13(d) and 14(d) of
     the Exchange Act) who, by the acquisition or aggregation of securities, is
     or becomes the beneficial owner, directly or indirectly, of securities of
     the Company representing twenty percent (20%) or more of the combined
     voting power of the Company's then outstanding securities ordinarily (and
     apart from rights accruing under special circumstances) having

                                      -1-
<PAGE>

     the right to vote at elections of directors (the "Base Capital Stock");
     except that any change in the relative beneficial ownership of the
     Company's securities by any person resulting solely from a reduction in the
     aggregate number of outstanding shares of Base Capital Stock, and any
     decrease thereafter in such person's ownership of securities, shall be
     disregarded until such person increases in any manner, directly or
     indirectly, such person's beneficial ownership of any securities of the
     Company. For purposes of this Subsection (ii), the term "person" shall not
     include an employee benefit plan maintained by the Company.

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

     (f)  "Committee" shall mean the committee designated by the Board of
           ---------
Directors, which is authorized to administer the Plan under Section 3 hereof.
The Committee shall have membership composition which enables the Options or
other rights granted under the Plan to qualify for exemption under Rule 16b-3
with respect to persons who are subject to Section 16 of the Exchange Act.

     (g)  "Company" shall mean Support.com, Inc., a Delaware corporation.
           -------

     (h)  "Consultant" shall mean a consultant or advisor who provides bona fide
           ----------
services to the Company, a Parent, a Subsidiary or an Affiliate as an
independent contractor. Service as a Consultant shall be considered employment
for all purposes of the Plan, except as provided in the second sentence of
Section 4(a) and Section 4(b).

     (i)  "Employee" shall mean (i) any individual who is a common-law employee
           --------
of the Company or of a Subsidiary, (ii) a member of the Board of Directors,
including (without limitation) an Outside Director, or an affiliate of member of
the Board of Directors and (iii) a member of the board of directors of a
Subsidiary; or (iv) an independent contractor or advisor who performs services
for the Company or a Subsidiary. Service as a member of the Board of Directors,
a member of the board of directors of a Subsidiary or as an independent
contractor or advisor shall be considered employment for all purposes of the
Plan except the second sentence of Section 4(a) and Section 4(b).

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

     (k)  "Exercise Price" shall mean, in the case of an Option, the amount for
           --------------
which one Common Share may be purchased upon exercise of such Option, as
specified in the applicable Stock Option Agreement. "Exercise Price," in the
case of a SAR, shall mean an amount, as specified in the applicable SAR
Agreement, which is subtracted from the Fair Market Value of one Common Share in
determining the amount payable upon exercise of such SAR.

     (l)  "Fair Market Value" shall mean (i) the closing price of a Share on the
           -----------------
principal exchange which the Shares are trading, on the date on which the Fair
Market Value is determined (if Fair Market Value is determined on a date which
the principal exchange is closed, Fair Market Value shall be determined on the
last immediately preceding trading day), or (ii) if the Shares are not traded on
an exchange but are quoted on the Nasdaq National Market or a successor
quotation system, the closing price on the date on which the Fair Market Value
is determined, or (iii) if the Shares are not traded on an exchange or quoted on
the Nasdaq National

                                      -2-
<PAGE>

Market or a successor quotation system, the fair market value of a Share, as
determined by the Committee in good faith. Such determination shall be
conclusive and binding on all persons.

     (m)  "ISO" shall mean an employee incentive stock option described in Code
           ---
section 422.

     (n)  "Nonstatutory Option" shall mean an employee stock option that is not
           -------------------
an ISO.

     (o)  "Offeree" shall mean an individual to whom the Committee has offered
           -------
the right to acquire Shares under the Plan (other than upon exercise of an
Option).

     (p)  "Option" shall mean an ISO or Nonstatutory Option granted under the
           ------
Plan and entitling the holder to purchase Shares.

     (q)  "Optionee" shall mean an individual or estate who holds an Option or
           --------
SAR.

     (r)  "Outside Director" shall mean a member of the Board of Directors who
           ----------------
is not a common-law employee of the Company or of a Subsidiary. Service as an
Outside Director shall be considered employment for all purposes of the Plan,
except as provided in the second sentence of Section 4(a).

     (s)  "Parent" shall mean any corporation (other than the Company) in an
           ------
unbroken chain of corporations ending with the Company, if each of the
corporations 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 corporations in such chain. A corporation that attains the status of a
Parent on a date after the adoption of the Plan shall be a parent commencing as
of such date.

     (t)  "Participant" shall mean an individual or estate who holds an Award.
           -----------

     (u)  "Plan" shall mean this 2000 Omnibus Equity Incentive Plan of
           ----
Support.com, Inc., as amended from time to time.

     (v)  "Purchase Price" shall mean the consideration for which one Share may
           --------------
be acquired under the Plan (other than upon exercise of an Option), as specified
by the Committee.

     (w)  "Restricted Share" shall mean a Common Share awarded under the Plan.
           ----------------

     (x)  "Restricted Share Agreement" shall mean the agreement between the
           --------------------------
Company and the recipient of a Restricted Share which contains the terms,
conditions and restrictions pertaining to such Restricted Shares.

     (y)  "SAR" shall mean a stock appreciation right granted under the Plan.
           ---

     (z)  "SAR Agreement" shall mean the agreement between the Company and an
           -------------
Optionee which contains the terms, conditions and restrictions pertaining to his
or her SAR.

     (aa)  "Service" shall mean service as an Employee.
            -------

                                      -3-
<PAGE>

     (bb) "Share" shall mean one share of Stock, as adjusted in accordance with
           -----
Section 9 (if applicable).

     (cc) "Stock" shall mean the Common Stock of the Company.
           -----

     (dd) "Stock Option Agreement" shall mean the agreement between the Company
           ----------------------
and an Optionee which contains the terms, conditions and restrictions pertaining
to his Option.

     (ee) "Stock Purchase Agreement" shall mean the agreement between the
           ------------------------
Company and an Offeree who acquires Shares under the Plan which contains the
terms, conditions and restrictions pertaining to the acquisition of such Shares.

     (ff) "Stock Unit" shall mean a bookkeeping entry representing the
           ----------
equivalent of one Common Share, as awarded under the Plan.

     (gg) "Stock Unit Agreement" shall mean the agreement between the Company
           --------------------
and the recipient of a Stock Unit which contains the terms, conditions and
restrictions pertaining to such Stock Unit.

     (hh) "Subsidiary" shall mean any corporation, if the Company and/or one or
           ----------
more other Subsidiaries own not less than fifty percent (50%) of the total
combined voting power of all classes of outstanding stock of such corporation. A
corporation that attains the status of a Subsidiary on a date after the adoption
of the Plan shall be considered a Subsidiary commencing as of such date.

     (ii) "Total and Permanent Disability" shall mean that the Optionee is
           ------------------------------
unable to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment which can be expected to result in
death or which has lasted, or can be expected to last, for a continuous period
of not less than twelve (12) months.

SECTION 3.   ADMINISTRATION.
---------------------------

     (a)  Committee Procedures. The Plan shall be administered by the Committee.
          --------------------
The Committee shall consist exclusively of two or more directors of the Company,
who shall be appointed by the Board of Directors. The Board of Directors shall
designate one of the members of the Committee as chairman. The Committee may
hold meetings at such times and places as it shall determine. The acts of a
majority of the Committee members present at meetings at which a quorum exists,
or acts reduced to or approved in writing by all Committee members, shall be
valid acts of the Committee.

     (b)  Committee Responsibilities. Subject to the provisions of the Plan, the
          --------------------------
Committee shall have full authority and discretion to take the following
actions:

          (i)    To interpret the Plan and to apply its provisions;

          (ii)   To adopt, amend or rescind rules, procedures and forms relating
     to the Plan;

                                      -4-
<PAGE>

          (iii)  To authorize any person to execute, on behalf of the Company,
     any instrument required to carry out the purposes of the Plan;

          (iv)   To determine when Shares are to be awarded or offered for sale
     and when Options are to be granted under the Plan;

          (v)    To select the Offerees and Optionees;

          (vi)   To determine the number of Shares to be offered to each Offeree
     or to be made subject to each Option;

          (vii)  To prescribe the terms and conditions of each award or sale of
     Shares, including (without limitation) the Purchase Price, the vesting of
     the award (including accelerating the vesting of awards) and to specify the
     provisions of the Stock Purchase Agreement relating to such award or sale;

          (viii) To prescribe the terms and conditions of each Option, including
     (without limitation) the Exercise Price, the vesting or duration of the
     Option (including accelerating the vesting of the Option), to determine
     whether such Option is to be classified as an ISO or as a Nonstatutory
     Option, and to specify the provisions of the Stock Option Agreement
     relating to such Option;

          (ix)   To amend any outstanding Stock Purchase Agreement or Stock
     Option Agreement, subject to applicable legal restrictions and to the
     consent of the Offeree or Optionee who entered into such agreement;

          (x)    To prescribe the consideration for the grant of each Option or
     other right under the Plan and to determine the sufficiency of such
     consideration;

          (xi)   To determine the disposition of each Option or other right
     under the Plan in the event of an Optionee's or Offeree's divorce or
     dissolution of marriage;

          (xii)  To determine whether Options or other rights under the Plan
     will be granted in replacement of other grants under an incentive or other
     compensation plan of an acquired business;

          (xiii) To correct any defect, supply any omission, or reconcile any
     inconsistency in the Plan, any Stock Option Agreement or any Stock Purchase
     Agreement; and

          (xiv)  To take any other actions deemed necessary or advisable for the
     administration of the Plan.

Subject to the requirements of applicable law, the Committee may designate
persons other than members of the Committee to carry out its responsibilities
and may prescribe such conditions and limitations as it may deem appropriate,
except that the Committee may not delegate its authority with regard to the
selection for participation of or the granting of Options or other rights under
the Plan to persons subject to Section 16 of the Exchange Act.  All decisions,
interpretations and other actions of the Committee shall be final and binding on
all Offerees, all

                                      -5-
<PAGE>

Optionees, and all persons deriving their rights from an Offeree or Optionee. No
member of the Committee shall be liable for any action that he has taken or has
failed to take in good faith with respect to the Plan, any Option, or any right
to acquire Shares under the Plan.

SECTION 4.   ELIGIBILITY.
------------------------

     (a)  General Rule.  Only Employees shall be eligible for the grant of
          ------------
Restricted Shares, Stock Units, NSOs or SARs. In addition, only individuals who
are employed as common-law employees by the Company, a Parent or a Subsidiary
shall be eligible for the grant of ISOs. In addition, an Employee who owns more
than ten percent (10%) of the total combined voting power of all classes of
outstanding stock of the Company or any of its Parents or Subsidiaries shall not
be eligible for the grant of an ISO unless the requirements set forth in section
422(c)(6) of the Code are satisfied.

     (b)  Outside Directors.  Any other provision of the Plan notwithstanding,
          -----------------
the participation of Outside Directors in the Plan shall be subject to the
following restrictions:

          (i)    Outside Directors shall only be eligible for the grant of
     Restricted Shares, Stock Units, Nonstatutory Options and SARs.

          (ii)   As determined by the full Board, each Outside Director shall be
     granted a Nonstatutory Option to purchase Shares upon the effectiveness of
     the Company's initial public offering or, if later, upon their appointment
     as an Outside Director. In addition, upon the conclusion of each regular
     annual meeting of the Company's stockholders occurring after 2000 and
     following the meeting at which they were appointed, each Outside Director
     who will continue serving as a member of the Board thereafter shall receive
     a Nonstatutory Option to purchase 8,000 Shares (subject to adjustment under
     Section 16). All such Nonstatutory Options shall vest and become
     exercisable at the date of grant;

          (iii)  The Exercise Price of all Nonstatutory Options granted to an
     Outside Director under this Section 4(b) shall be equal to one hundred
     percent (100%) of the Fair Market Value of a Share on the date of grant,
     payable in one of the forms described in Section 9(a), (b) and (d).

          (iv)   All Nonstatutory Options granted to an Outside Director under
     this Section 4(b) shall terminate on the earliest of (A) the tenth (10th)
     anniversary of the date of grant of such Options or (B) the date twelve
     (12) months after the termination of such Outside Director's service for
     any reason.

     (c)  Limitation On Grants. No Employee shall be granted Options to purchase
          --------------------
more than one million (1,000,000) Shares in any fiscal year of the Company.

     (d)  Ten-Percent Stockholders.  An Employee who owns more than ten percent
          ------------------------
(10%) of the total combined voting power of all classes of outstanding stock of
the Company or any of its Subsidiaries shall not be eligible for the grant of an
ISO unless such grant satisfies the requirements of Code section 422(c)(6).

                                      -6-
<PAGE>

     (e)  Attribution Rules.  For purposes of Subsection (d) above, in
          -----------------
determining stock ownership, an Employee shall be deemed to own the stock owned,
directly or indirectly, by or for his brothers, sisters, spouse, ancestors and
lineal descendants. Stock owned, directly or indirectly, by or for a
corporation, partnership, estate or trust shall be deemed to be owned
proportionately by or for its shareholders, partners or beneficiaries.

     (f)  Outstanding Stock. For purposes of Subsection (d) above, "outstanding
          -----------------
stock" shall include all stock actually issued and outstanding immediately after
the grant. "Outstanding stock" shall not include shares authorized for issuance
under outstanding options held by the Employee or by any other person.

SECTION 5.   STOCK SUBJECT TO PLAN.
----------------------------------

     (a)  Basic Limitation.  Shares offered under the Plan shall be authorized
          ----------------
but unissued Shares or treasury Shares. The maximum aggregate number of Options,
SARs, Stock Units and Restricted Shares awarded under the Plan shall not exceed
(a) four million (4,000,000 Shares, plus the additional Common Shares described
in Sections (b) and (c). The limitation of this Section 5(a) shall be subject to
adjustment pursuant to Section 12.

     (b)  Annual Increase in Shares.  As of January 1 of each year, commencing
          -------------------------
with the year 2001, the aggregate number of Options, SARs, Stock Units and
Restricted Shares that may be awarded under the Plan shall automatically
increase by a number equal to the lesser of (i) 2,000,000 Shares, (ii) 5% of the
outstanding shares on such date or (iii) a lesser amount determined by the
Board. The aggregate number of Shares which may be issued under the Plan shall
at all times be subject to adjustment pursuant to Section 16. The number of
Shares which are subject to Options or other rights outstanding at any time
under the Plan shall not exceed the number of Shares which then remain available
for issuance under the Plan. The Company, during the term of the Plan, shall at
all times reserve and keep available sufficient Shares to satisfy the
requirements of the Plan.

     (c)  Additional Shares.  If Restricted Shares or Common Shares issued upon
          -----------------
the exercise of Options are forfeited, then such Common Shares shall again
become available for Awards under the Plan. If Stock Units, Options or SARs are
forfeited or terminate for any other reason before being exercised, then the
corresponding Common Shares shall again become available for Awards under the
Plan. If Stock Units are settled, then only the number of Common Shares (if any)
actually issued in settlement of such Stock Units shall reduce the number
available under Section 5(a) and the balance shall again become available for
Awards under the Plan. If SARs are exercised, then only the number of Common
Shares (if any) actually issued in settlement of such SARs shall reduce the
number available in Section 5(a) and the balance shall again become available
for Awards under the Plan. The foregoing notwithstanding, the aggregate number
of Common Shares that may be issued under the Plan upon the exercise of ISOs
shall not be increased when Restricted Shares or other Common Shares are
forfeited.

     (d)  Dividend Equivalents.  Any dividend equivalents paid or credited under
          --------------------
the Plan shall not be applied against the number of Restricted Shares, Stock
Units, Options or SARs available for Awards, whether or not such dividend
equivalents are converted into Stock Units.

                                      -7-
<PAGE>

SECTION 6.   RESTRICTED SHARES
------------------------------

     (a)  Restricted Stock Agreement.  Each grant of Restricted Shares under the
          --------------------------
Plan shall be evidenced by a Restricted Stock Agreement between the recipient
and the Company. Such Restricted Shares shall be subject to all applicable terms
of the Plan and may be subject to any other terms that are not inconsistent with
the Plan. The provisions of the various Restricted Stock Agreements entered into
under the Plan need not be identical.

     (b)  Payment for Awards.  Subject to the following sentence, Restricted
          ------------------
Shares may be sold or awarded under the Plan for such consideration as the
Committee may determine, including (without limitation) cash, cash equivalents,
full-recourse promissory notes, past services and future services. To the extent
that an Award consists of newly issued Restricted Shares, the Award recipient
shall furnish consideration with a value not less than the par value of such
Restricted Shares in the form of cash, cash equivalents, or past services
rendered to the Company (or a Parent or Subsidiary), as the Committee may
determine.

     (c)  Vesting.  Each Award of Restricted Shares may or may not be subject to
          -------
vesting. Vesting shall occur, in full or in installments, upon satisfaction of
the conditions specified in the Restricted Stock Agreement. The Committee may
include among such conditions the requirement that the performance of the
Company or a business unit of the Company for a specified period of one or more
years equal or exceed a target determined in advance by the Committee. Such
performance shall be determined by the Company's independent auditors. Such
target shall be based on one or more of the criteria set forth in Appendix A.
The Committee shall determine such target not later than the 90/th/ day of such
period. In no event shall the number of Restricted Shares which are subject to
performance based vesting conditions exceed 1,000,000, subject to adjustment in
accordance with Section 16. A Restricted Stock Agreement may provide for
accelerated vesting in the event of the Participant's death, disability or
retirement or other events. The Committee may determine, at the time of granting
Restricted Shares of thereafter, that all or part of such Restricted Shares
shall become vested in the event that a Change in Control occurs with respect to
the Company.

     (d)  Voting and Dividend Rights.  The holders of Restricted Shares awarded
          --------------------------
under the Plan shall have the same voting, dividend and other rights as the
Company's other stockholders. A Restricted Stock Agreement, however, may require
that the holders of Restricted Shares invest any cash dividends received in
additional Restricted Shares. Such additional Restricted Shares shall be subject
to the same conditions and restrictions as the Award with respect to which the
dividends were paid.

SECTION 7.   OTHER TERMS AND CONDITIONS OF AWARDS OR SALES.
----------------------------------------------------------

     (a)  Duration of Offers and Nontransferability of Rights.  Any right to
          ---------------------------------------------------
acquire Shares under the Plan (other than an Option) shall automatically expire
if not exercised by the Offeree within thirty (30) days after the grant of such
right was communicated to him by the Committee. Such right shall not be
transferable and shall be exercisable only by the Offeree to whom such right was
granted.

                                      -8-
<PAGE>

     (b)  Purchase Price. The Purchase Price shall be payable in one of the
          --------------
forms described in Sections 9(a), (b) or (c).

     (c)  Withholding Taxes.  As a condition to the purchase of Shares, the
          -----------------
Offeree shall make such arrangements as the Committee may require for the
satisfaction of any federal, state or local withholding tax obligations that may
arise in connection with such purchase.

     (d) Restrictions on Transfer of Shares.  Any Shares awarded or sold under
         ----------------------------------
the Plan shall be subject to such special forfeiture conditions, rights of
repurchase, rights of first refusal and other transfer restrictions as the
Committee may determine. Such restrictions shall be set forth in the applicable
Stock Purchase Agreement and shall apply in addition to any general restrictions
that may apply to all holders of Shares.

SECTION 8.   TERMS AND CONDITIONS OF OPTIONS.
--------------------------------------------

     (a)  Stock Option Agreement.  Each grant of an Option under the Plan shall
          ----------------------
be evidenced by a Stock Option Agreement between the Optionee and the Company.
Such Option shall be subject to all applicable terms and conditions of the Plan
and may be subject to any other terms and conditions which are not inconsistent
with the Plan and which the Committee deems appropriate for inclusion in a Stock
Option Agreement. The Stock Option Agreement shall specify whether the Option is
an ISO or an NSO. The provisions of the various Stock Option Agreements entered
into under the Plan need not be identical. Options may be granted in
consideration of a reduction in the Optionee's other compensation. A Stock
Option Agreement may provide that a new Option will be granted automatically to
the Optionee when he or she exercises a prior Option and pays the Exercise Price
in a form described in Section 9.

     (b)  Number of Shares. Each Stock Option Agreement shall specify the number
          ----------------
of Shares that are subject to the Option and shall provide for the adjustment of
such number in accordance with Section 16. Options granted to an Optionee in a
single fiscal year of the Company shall not cover more than 1,000,000 Shares.

     (c)  Exercise Price. Each Stock Option Agreement shall specify the Exercise
          --------------
Price. The Exercise Price of an ISO shall not be less than 100 percent (100%) of
the Fair Market Value of a Share on the date of grant, except as otherwise
provided in Section 4(d). Subject to the foregoing in this Section 8(c), the
Exercise Price under any Option shall be determined by the Committee at its sole
discretion. The Exercise Price shall be payable in one of the forms described in
Section 9.

     (d)  Withholding Taxes.  As a condition to the exercise of an Option, the
          -----------------
Optionee shall make such arrangements as the Committee may require for the
satisfaction of any federal, state or local withholding tax obligations that may
arise in connection with such exercise. The Optionee shall also make such
arrangements as the Committee may require for the satisfaction of any federal,
state or local withholding tax obligations that may arise in connection with the
disposition of Shares acquired by exercising an Option.

     (e)  Exercisability and Term. Each Stock Option Agreement shall specify the
          -----------------------
date when all or any installment of the Option is to become exercisable. The
Stock Option

                                      -9-
<PAGE>

Agreement shall also specify the term of the Option; provided that the term of
an ISO shall in no event exceed ten (10) years from the date of grant (five (5)
years for Employees described in Section 4(d)). A Stock Option Agreement may
provide for accelerated exercisability in the event of the Optionee's death,
disability, or retirement or other events and may provide for expiration prior
to the end of its term in the event of the termination of the Optionee's
service. Options may be awarded in combination with SARs, and such an Award may
provide that the Options will not be exercisable unless the related SARs are
forfeited. Subject to the foregoing in this Section 8(e), the Committee at its
sole discretion shall determine when all or any installment of an Option is to
become exercisable and when an Option is to expire.

     (f)  Nontransferability. During an Optionee's lifetime, his Option(s) shall
          ------------------
be exercisable only by him and shall not be transferable. In the event of an
Optionee's death, his Option(s) shall not be transferable other than by will or
by the laws of descent and distribution.

     (g)  Exercise of Options Upon Termination of Service. Each Stock Option
          -----------------------------------------------
Agreement shall set forth the extent to which the Optionee shall have the right
to exercise the Option following termination of the Optionee's Service with the
Company and its Subsidiaries, and the right to exercise the Option of any
executors or administrators of the Optionee's estate or any person who has
acquired such Option(s) directly from the Optionee by bequest or inheritance.
Such provisions shall be determined in the sole discretion of the Committee,
need not be uniform among all Options issued pursuant to the Plan, and may
reflect distinctions based on the reasons for termination of Service.

     (h)  Effect of Change in Control. The Committee may determine, at the time
          ---------------------------
of granting an Option or thereafter, that such Option shall become exercisable
as to all or part of the Shares subject to such Option in the event that a
Change in Control occurs with respect to the Company, subject to the following
limitations:

          (i)  In the case of an ISO, the acceleration of exercisability shall
     not occur without the Optionee's written consent.

          (ii) If the Company and the other party to the transaction
     constituting a Change in Control agree that such transaction is to be
     treated as a :pooling of interests" for financial reporting purposes, and
     if such transaction in fact is so treated, then the acceleration of
     exercisability shall not occur to the extent that the Company's independent
     accountants and such other party's independent accountants separately
     determine in good faith that such acceleration would preclude the use of
     "pooling of interests" accounting.

     (i)  Leaves of Absence. An Employee's Service shall cease when such
          -----------------
Employee ceases to be actively employed by, or a consultant or adviser to, the
Company (or any subsidiary) as determined in the sole discretion of the Board of
Directors. For purposes of Options, Service does not terminate when an Employee
goes on a bona fide leave of absence, that was approved by the Company in
writing, if the terms of the leave provide for continued service crediting, or
when continued service crediting is required by applicable law. However, for
purposes of determining whether an Option is entitled to ISO status, an
Employee's Service will be treated as terminating ninety (90) days after such
Employee went on leave, unless such Employee's right to

                                      -10-
<PAGE>

return to active work is guaranteed by law or by a contract. Service terminates
in any event when the approved leave ends, unless such Employee immediately
returns to active work. The Company determines which leaves count toward
Service, and when Service terminates for all purposes under the Plan.

     (j)  No Rights as a Stockholder. An Optionee, or a transferee of an
          --------------------------
Optionee, shall have no rights as a stockholder with respect to any Shares
covered by his Option until the date of the issuance of a stock certificate for
such Shares. No adjustments shall be made, except as provided in Section 9.

     (k)  Modification, Extension and Renewal of Options. Within the limitations
          ----------------------------------------------
of the Plan, the Committee may modify, extend or renew outstanding options or
may accept the cancellation of outstanding options (to the extent not previously
exercised), whether or not granted hereunder, in return for the grant of new
Options for the same or a different number of Shares and at the same or a
different exercise price. The foregoing notwithstanding, no modification of an
Option shall, without the consent of the Optionee, impair his rights or increase
his obligations under such Option.

     (l)  Restrictions on Transfer of Shares. Any Shares issued upon exercise of
          ----------------------------------
an Option shall be subject to such special forfeiture conditions, rights of
repurchase, rights of first refusal and other transfer restrictions as the
Committee may determine. Such restrictions shall be set forth in the applicable
Stock Option Agreement and shall apply in addition to any general restrictions
that may apply to all holders of Shares.

     (m)  Buyout Provisions. The Committee may at any time (a) offer to buy out
          -----------------
for a payment in cash or cash equivalents an Option previously granted or (b)
authorize an Optionee to elect to cash out an Option previously granted, in
either case at such time and based upon such terms and conditions as the
Committee shall establish.

SECTION 9. PAYMENT FOR SHARES.
------------------------------

     (a)  General Rule. The entire Exercise Price of Shares issued under the
          ------------
Plan shall be payable in lawful money of the United States of America at the
time when such Shares are purchased, except as provided in Subsections (b)
through (g) below.

     (b)  Surrender of Stock. To the extent that a Stock Option Agreement so
          ------------------
provides, payment may be made all or in part by surrendering, or attesting to
the ownership of, Shares which have already been owned by the Optionee or his
representative for more than twelve (12) months. Such Shares shall be valued at
their Fair Market Value on the date when the new Shares are purchased under the
Plan. The Optionee shall not surrender, or attest to the ownership of, Shares in
payment of the Exercise Price if such action would cause the Company to
recognize compensation expense (or additional compensation expense) with respect
to the Option for financial reporting purposes.

     (c)  Services Rendered. At the discretion of the Committee, Shares may be
          -----------------
awarded under the Plan in consideration of services rendered to the Company or a
Subsidiary prior to the award. If Shares are awarded without the payment of a
Purchase Price in cash, the Committee

                                      -11-
<PAGE>

shall make a determination (at the time of the award) of the value of the
services rendered by the Offeree and the sufficiency of the consideration to
meet the requirements of Section 6(c).

     (d)  Cashless Exercise. To the extent that a Stock Option Agreement so
          -----------------
provides, payment may be made all or in part by delivery (on a form prescribed
by the Committee) of an irrevocable direction to a securities broker to sell
Shares and to deliver all or part of the sale proceeds to the Company in payment
of the aggregate Exercise Price.

     (e)  Exercise/Pledge. To the extent that a Stock Option Agreement so
          ---------------
provides, payment may be made all or in part by delivery (on a form prescribed
by the Committee) of an irrevocable direction to a securities broker or lender
to pledge Shares, as security for a loan, and to deliver all or part of the loan
proceeds to the Company in payment of the aggregate Exercise Price.

     (f)  Promissory Note. To the extent that a Stock Option Agreement so
          ---------------
provides, payment may be made all or in part by delivering (on a form prescribed
by the Company) a full-recourse promissory note. However, the par value of the
Common Shares being purchased under the Plan, if newly issued, shall be paid in
cash or cash equivalents.

     (g)  Other Forms of Payment. To the extent that a Stock Option Agreement so
          ----------------------
provides, payment may be made in any other form that is consistent with
applicable laws, regulations and rules.

SECTION 10. STOCK APPRECIATION RIGHTS.
--------------------------------------

     (a)  SAR Agreement. Each grant of a SAR under the Plan shall be evidenced
          -------------
by a SAR Agreement between the Optionee and the Company. Such SAR shall be
subject to all applicable terms of the Plan and may be subject to any other
terms that are not inconsistent with the Plan. The provisions of the various SAR
Agreements entered into under the Plan need not be identical. SARs may be
granted in consideration of a reduction in the Optionee's other compensation.

     (b)  Number of Shares. Each SAR Agreement shall specify the number of
          ----------------
Common Shares to which the SAR pertains and shall provide for the adjustment of
such number in accordance with Section 12. SARs granted to any Optionee in a
single calendar year shall in no event pertain to more than 1,000,000 Common
Shares. The limitations set forth in the preceding sentence shall be subject to
adjustment in accordance with Section 12.

     (c)  Exercise Price. Each SAR Agreement shall specify the Exercise Price. A
          --------------
SAR Agreement may specify an Exercise Price that varies in accordance with a
predetermined formula while the SAR is outstanding.

     (d)  Exercisability and Term. Each SAR Agreement shall specify the date
          -----------------------
when all or any installment of the SAR is to become exercisable. The SAR
Agreement shall also specify the term of the SAR. A SAR Agreement may provide
for accelerated exercisability in the event of the Optionee's death, disability
or retirement or other events and may provide for expiration prior to the end of
its term in the event of the termination of the Optionee's service. SARs may be
awarded in combination with Options, and such an Award may provide that the SARs
will not

                                      -12-
<PAGE>

be exercisable unless the related Options are forfeited. A SAR may be included
in an ISO only at the time of grant but may be included in an NSO at the time of
grant or thereafter. A SAR granted under the Plan may provide that it will be
exercisable only in the event of a Change in Control.

     (e)  Effect of Change in Control. The Committee may determine, at the time
          ---------------------------
of granting a SAR or thereafter, that such SAR shall become fully exercisable as
to all Common Shares subject to such SAR in the event that a Change in Control
occurs with respect to the Company, subject to the following sentence. If the
Company and the other party to the transaction constituting a Change in Control
agree that such transaction is to be treated as a "pooling of interests" for
financial reporting purposes, and if such transaction in fact is so treated,
then the acceleration of exercisability shall not occur to the extent that the
Company's independent accountants and such other party's independent accountants
separately determine in good faith that such acceleration would preclude the use
of "pooling of interests" accounting.

     (f)  Exercise of SARs. Upon exercise of a SAR, the Optionee (or any person
          ----------------
having the right to exercise the SAR after his or her death) shall receive from
the Company (a) Common Shares, (b) cash or (c) a combination of Common Shares
and cash, as the Committee shall determine. The amount of cash and/or the Fair
Market Value of Common Shares received upon exercise of SARs shall, in the
aggregate, be equal to the amount by which the Fair Market Value (on the date of
surrender) of the Common Shares subject to the SARs exceeds the Exercise Price.
If, on the date when a SAR expires, the Exercise Price under such SAR is less
than the Fair Market Value on such date but any portion of such SAR has not been
exercised or surrendered, then such SAR shall automatically be deemed to be
exercised as of such date with respect to such portion.

     (g)  Modification or Assumption of SARs. Within the limitations of the
         ----------------------------------
Plan, the Committee may modify, extend or assume outstanding SARs or may accept
the cancellation of outstanding SARs (whether granted by the Company or by
another issuer) in return for the grant of new SARs for the same or a different
number of shares and at the same or a different exercise price. The foregoing
notwithstanding, no modification of a SAR shall, without the consent of the
Optionee, may alter or impair his or her rights or obligations under such SAR.

SECTION 11. STOCK UNITS.
------------------------

     (a)  Stock Unit Agreement. Each grant of Stock Units under the Plan shall
          --------------------
be evidenced by a Stock Unit Agreement between the recipient and the Company.
Such Stock Units shall be subject to all applicable terms of the Plan and may be
subject to any other terms that are not inconsistent with the Plan. The
provisions of the various Stock Unit Agreements entered into under the Plan need
not be identical. Stock Units may be granted in consideration of a reduction in
the recipient's other compensation.

     (b)  Payment for Awards. To the extent that an Award is granted in the form
          ------------------
of Stock Units, no cash consideration shall be required of the Award recipients.

     (c)  Vesting Conditions. Each Award of Stock Units may or may not be
          ------------------
subject to vesting. Vesting shall occur, in full or in installments, upon
satisfaction of the conditions

                                      -13-
<PAGE>

specified in the Stock Unit Agreement. A Stock Unit Agreement may provide for
accelerated vesting in the event of the Participant's death, disability or
retirement or other events. The Committee may determine, at the time of granting
Stock Units or thereafter, that all or part of such Stock Units shall become
vested in the event that a Change in Control occurs with respect to the Company,
except as provided in the next following sentence. If the Company and the other
party to the transaction constituting a Change in Control agree that such
transaction is to be treated as a "pooling of interests" for financial reporting
purposes, and if such transaction in fact is so treated, then the acceleration
of vesting shall not occur to the extent that the Company's independent
accountants and such other party's independent accountants separately determine
in good faith that such acceleration would preclude the use of "pooling of
interests" accounting.

     (d)  Voting and Dividend Rights. The holders of Stock Units shall have no
          --------------------------
voting rights. Prior to settlement or forfeiture, any Stock Unit awarded under
the Plan may, at the Committee's discretion, carry with it a right to dividend
equivalents. Such right entitles the holder to be credited with an amount equal
to all cash dividends paid on one Common Share while the Stock Unit is
outstanding. Dividend equivalents may be converted into additional Stock Units.
Settlement of dividend equivalents may be made in the form of cash, in the form
of Common Shares, or in a combination of both. Prior to distribution, any
dividend equivalents which are not paid shall be subject to the same conditions
and restrictions as the Stock Units to which they attach.

     (e)  Form and Time of Settlement of Stock Units. Settlement of vested Stock
          ------------------------------------------
Units may be made in the form of (a) cash, (b) Common Shares or (c) any
combination of both, as determined by the Committee. The actual number of Stock
Units eligible for settlement may be larger or smaller than the number included
in the original Award, based on predetermined performance factors. Methods of
converting Stock Units into cash may include (without limitation) a method based
on the average Fair Market Value of Common Shares over a series of trading days.
Vested Stock Units may be settled in a lump sum or in installments. The
distribution may occur or commence when all vesting conditions applicable to the
Stock Units have been satisfied or have lapsed, or it may be deferred to any
later date. The amount of a deferred distribution may be increased by an
interest factor or by dividend equivalents. Until an Award of Stock Units is
settled, the number of such Stock Units shall be subject to adjustment pursuant
to Section 12.

     (f)  Death of Recipient. Any Stock Units Award that becomes payable after
          ------------------
the recipient's death shall be distributed to the recipient's beneficiary or
beneficiaries. Each recipient of a Stock Units Award under the Plan shall
designate one or more beneficiaries for this purpose by filing the prescribed
form with the Company. A beneficiary designation may be changed by filing the
prescribed form with the Company at any time before the Award recipient's death.
If no beneficiary was designated or if no designated beneficiary survives the
Award recipient, then any Stock Units Award that becomes payable after the
recipient's death shall be distributed to the recipient's estate.

     (g)  Creditors' Rights. A holder of Stock Units shall have no rights other
          -----------------
than those of a general creditor of the Company. Stock Units represent an
unfunded and unsecured obligation of the Company, subject to the terms and
conditions of the applicable Stock Unit Agreement.

                                      -14-
<PAGE>

SECTION 12. PROTECTION AGAINST DILUTION.
---------------------------------------

     (a)  Adjustments. In the event of a subdivision of the outstanding Common
          -----------
Shares, a declaration of a dividend payable in Common Shares, a declaration of a
dividend payable in a form other than Common Shares in an amount that has a
material effect on the price of Common Shares, a combination or consolidation of
the outstanding Common Shares (by reclassification or otherwise) into a lesser
number of Common Shares, a recapitalization, a spin-off or a similar occurrence,
the Committee shall make such adjustments as it, in its sole discretion, deems
appropriate in one or more of:

          (i)   The number of Options, SARs, Restricted Shares and Stock Units
     available for future Awards under Section 5;

          (ii)  The limitations set forth in Sections 8(b) and 10(b);

          (iii) The number of NSOs to be granted to Outside Directors under
     Section 4(b);

          (iv)  The number of Common Shares covered by each outstanding Option
     and SAR;

          (v)   The Exercise Price under each outstanding Option and SAR; or

          (vi)  The number of Stock Units included in any prior Award which has
     not yet been settled.

Except as provided in this Section 12, a Participant shall have no rights by
reason of any issue by the Company of stock of any class or securities
convertible into stock of any class, any subdivision or consolidation of shares
of stock of any class, the payment of any stock dividend or any other increase
or decrease in the number of shares of stock of any class.

     (b)  Dissolution or Liquidation. To the extent not previously exercised or
          --------------------------
settled, Options, SARs and Stock Units shall terminate immediately prior to the
dissolution or liquidation of the Company.

     (c)  Reorganizations. In the event that the Company is a party to a merger
          ---------------
or other reorganization, outstanding Awards shall be subject to the agreement of
merger or reorganization. Such agreement shall provide for:

          (i)   The continuation of the outstanding Awards by the Company, if
     the Company is a surviving corporation;

          (ii)  The assumption of the outstanding Awards by the surviving
     corporation or its parent or subsidiary;

          (iii) The substitution by the surviving corporation or its parent or
     subsidiary of its own awards for the outstanding Awards;

                                      -15-
<PAGE>

          (iv) Full exercisability or vesting and accelerated expiration of the
     outstanding Awards; or

          (v)  Settlement of the full value of the outstanding Awards in cash or
     cash equivalents followed by cancellation of such Awards.

SECTION 13. DEFERRAL OF AWARDS.
-------------------------------

     The Committee (in its sole discretion) may permit or require a Participant
to:

     (a)  Have cash that otherwise would be paid to such Participant as a result
of the exercise of a SAR or the settlement of Stock Units credited to a deferred
compensation account established for such Participant by the Committee as an
entry on the Company's books;

     (b)  Have Common Shares that otherwise would be delivered to such
Participant as a result of the exercise of an Option or SAR converted into an
equal number of Stock Units; or

     (c)  Have Common Shares that otherwise would be delivered to such
Participant as a result of the exercise of an Option or SAR or the settlement of
Stock Units converted into amounts credited to a deferred compensation account
established for such Participant by the Committee as an entry on the Company's
books. Such amounts shall be determined by reference to the Fair Market Value of
such Common Shares as of the date when they otherwise would have been delivered
to such Participant.

A deferred compensation account established under this Section 13 may be
credited with interest or other forms of investment return, as determined by the
Committee.  A Participant for whom such an account is established shall have no
rights other than those of a general creditor of the Company.  Such an account
shall represent an unfunded and unsecured obligation of the Company and shall be
subject to the terms and conditions of the applicable agreement between such
Participant and the Company.  If the deferral or conversion of Awards is
permitted or required, the Committee (in its sole discretion) may establish
rules, procedures and forms pertaining to such Awards, including (without
limitation) the settlement of deferred compensation accounts established under
this Section 13.

SECTION 14. AWARDS UNDER OTHER PLANS.
-------------------------------------

     The Company may grant awards under other plans or programs. Such awards may
be settled in the form of Common Shares issued under this Plan. Such Common
Shares shall be treated for all purposes under the Plan like Common Shares
issued in settlement of Stock Units and shall, when issued, reduce the number of
Common Shares available under Section 5.

SECTION 15. PAYMENT OF DIRECTOR'S FEES IN SECURITIES.
-----------------------------------------------------

     (a)  Effective Date. No provision of this Section 15 shall be effective
          --------------
unless and until the Board has determined to implement such provision.

     (b)  Elections to Receive NSOs, Restricted Shares or Stock Units . An
         -----------------------------------------------------------
Outside Director may elect to receive his or her annual retainer payments and/or
meeting fees from the

                                      -16-
<PAGE>

Company in the form of cash, NSOs, Restricted Shares or Stock Units, or a
combination thereof, as determined by the Board. Such NSOs, Restricted Shares
and Stock Units shall be issued under the Plan. An election under this Section
15 shall be filed with the Company on the prescribed form.

     (c)  Number and Terms of NSOs, Restricted Shares or Stock Units. The number
         ----------------------------------------------------------
of NSOs, Restricted Shares or Stock Units to be granted to Outside Directors in
lieu of annual retainers and meeting fees that would otherwise be paid in cash
shall be calculated in a manner determined by the Board. The terms of such NSOs,
Restricted Shares or Stock Units shall also be determined by the Board.

SECTION 16. ADJUSTMENT OF SHARES.
---------------------------------

     (a)  General. In the event of a subdivision of the outstanding Stock, a
          -------
declaration of a dividend payable in Shares, a declaration of a dividend payable
in a form other than Shares in an amount that has a material effect on the value
of Shares, a combination or consolidation of the outstanding Stock (by
reclassification or otherwise) into a lesser number of Shares, a
recapitalization or a similar occurrence, the Committee shall make appropriate
adjustments in one or more of (i) the number of Shares available for future
grants under Section 5, (ii) the number of Shares available for grants under
Section 4(c), (iii) the number of Shares covered by each outstanding Option,
(iv) the Exercise Price under each outstanding Option, (v) the number of shares
covered by each outstanding award or (vi) the Purchase Price of each outstanding
award.

     (b)  Reorganizations. In the event that the Company is a party to a merger
          ---------------
or other reorganization, outstanding Options shall be subject to the agreement
of merger or reorganization. Such agreement may provide for the assumption of
outstanding Options by the surviving corporation or its parent or for their
continuation by the Company (if the Company is a surviving corporation);
provided, however, that if assumption or continuation of the outstanding Options
is not provided by such agreement then the Committee shall have the option of
offering the payment of a cash settlement equal to the difference between the
amount to be paid for one Share under such agreement and the Exercise Price, in
all cases without the Optionees' consent.

     (c)  Reservation of Rights. Except as provided in this Section 16, an
          ---------------------
Optionee or Offeree shall have no rights by reason of any subdivision or
consolidation of shares of stock of any class, the payment of any dividend or
any other increase or decrease in the number of shares of stock of any class.
Any issue by the Company of shares of stock of any class, or securities
convertible into shares of stock of any class, shall not affect, and no
adjustment by reason thereof shall be made with respect to, the number or
Exercise Price of Shares subject to an Option. The grant of an Option pursuant
to the Plan shall not affect in any way the right or power of the Company to
make adjustments, reclassifications, reorganizations or changes of its capital
or business structure, to merge or consolidate or to dissolve, liquidate, sell
or transfer all or any part of its business or assets.

                                      -17-
<PAGE>

SECTION 17. LEGAL AND REGULATORY REQUIREMENTS.
----------------------------------------------

     Shares shall not be issued under the Plan unless the issuance and delivery
of such Shares complies with (or is 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 on which the Company's
securities may then be listed, and the Company has obtained the approval or
favorable ruling from any governmental agency which the Company determines is
necessary or advisable.

SECTION 18. WITHHOLDING TAXES.
------------------------------

     (a)  General. To the extent required by applicable federal, state, local or
          -------
foreign law, a Participant or his or her successor shall make arrangements
satisfactory to the Company for the satisfaction of any withholding tax
obligations that arise in connection with the Plan. The Company shall not be
required to issue any Common Shares or make any cash payment under the Plan
until such obligations are satisfied.

     (b)  Share Withholding. The Committee may permit a Participant to satisfy
          -----------------
all or part of his or her withholding or income tax obligations by having the
Company withhold all or a portion of any Common Shares that otherwise would be
issued to him or her or by surrendering all or a portion of any Common Shares
that he or she previously acquired. Such Common Shares shall be valued at their
Fair Market Value on the date when taxes otherwise would be withheld in cash.

SECTION 19. LIMITATION ON PARACHUTE PAYMENTS.
---------------------------------------------

     (a)  Scope of Limitation. This Section 19 shall apply to an Award only if:
          -------------------

          (i)  The independent auditors most recently selected by the Board (the
     "Auditors") determine that the after-tax value of such Award to the
     Participant, taking into account the effect of all federal, state and local
     income taxes, employment taxes and excise taxes applicable to the
     Participant (including the excise tax under section 4999 of the Code), will
     be greater after the application of this Section 19 than it was before the
     application of this Section 19; or

          (ii) The Committee, at the time of making an Award under the Plan or
     at any time thereafter, specifies in writing that such Award shall be
     subject to this Section 19 (regardless of the after-tax value of such Award
     to the Participant).

     (b)  Supersedes Other Provisions. If this Section 19 applies to an Award,
          ---------------------------
it shall supersede any contrary provision of the Plan or of any Award granted
under the Plan.

SECTION 20. NO EMPLOYMENT RIGHTS.
---------------------------------

     No provision of the Plan, nor any right or Option granted under the Plan,
shall be construed to give any person any right to become, to be treated as, or
to remain an Employee.

                                      -18-
<PAGE>

The Company and its Subsidiaries reserve the right to terminate any person's
Service at any time and for any reason, with or without notice.

SECTION 21. DURATION AND AMENDMENTS.
-----------------------------------

      (a)    Term of the Plan.  The amended and restated Plan, as set forth
             ----------------
herein, shall terminate automatically on ten years after its adoption and may be
terminated on any earlier date pursuant to Subsection (b) below.

     (b)     Right to Amend or Terminate the plan. The Board of Directors may
             ------------------------------------
amend the Plan at any time and from time to time. Rights and obligations under
any Option granted before amendment of the Plan shall not be materially impaired
by such amendment, except with consent of the person to whom the Option was
granted. An amendment of the Plan shall be subject to the approval of the
Company's stockholders only to the extent required by applicable laws,
regulations or rules.

    (c)      Effect of Amendment or Termination.  No Shares shall be issued or
             ----------------------------------
sold under the Plan after the termination thereof, except upon exercise of an
Option granted prior to such termination. The terminations of the Plan, or any
amendment thereof, shall not affect any Share previously issued or any Option
previously granted under the Plan.

SECTION 22.  EXECUTION.
----------------------

     To record the adoption of the amended and restated Plan by the Board of
Directors effective as of February ___, 2000, the Company has caused its
authorized officer to execute the same.

                                         SUPPORT.COM, INC.

                                         By
                                            ---------------------------
                                             Radha R. Basu
                                             Chief Executive Officer

                                      -19-
<PAGE>

                          NOTICE OF STOCK OPTION GRANT

           THE SUPPORT.COM, INC.  2000 OMNIBUS EQUITY INCENTIVE PLAN

     You have been granted the following option to purchase Common Stock of
Support.com, Inc. (the "Company") under the Support.com, Inc. 2000 Omnibus
Equity Incentive Plan (the "Plan"):

Name of Optionee:______________________

Total Number of Option Shares Granted:_______________

Type of Option:   ___ Incentive Stock Option  ___ Nonstatutory Stock Option

Exercise Price Per Share:  $________________

Grant Date:  ______________________

Vesting Commencement Date:  __________________

Vesting Schedule: [Check only one box]

     __    Full vesting: This option is fully vested and exercisable as of the
           the date of grant.

     __    Two-Year Vesting: This option becomes exercisable with respect to 50%
           of the total number of Option Shares, on and after the first
           anniversary of the Grant Date and with respect to the remaining
           Option Shares, on and after the second anniversary of the Grant Date.

     __    Three-Year Vesting: This option becomes exercisable (i) with respect
           to 33-1/3 % of the total number of Option Shares, on and after the
           first anniversary of the Grant Date, (ii) with respect to an
           additional 33-1/3% of the total number of Option Shares, on or after
           the second anniversary of the Grant Date, and (iii) with respect to
           the remaining Option Shares, on and after the third anniversary of
           the Grant Date.

     __    Four-Year Vesting: This option becomes exercisable (i) with respect
           to 1/4 of the total number of Option Shares, on and after the first
           anniversary of the Grant Date, (ii) with respect to an additional 1/4
           of the total number of Option Shares, on or after the second
           anniversary of the Grant Date, (iii) with respect to an additional
           1/4 of the total number of Option Shares, on and after the third
           anniversary of the Grant Date, and (iv) with respect to the remaining
           Option Shares, on and after the fourth anniversary of the Grant Date.

                                       20
<PAGE>

Accelerated Vesting:  [Check only one box]

     __    Your option is not subject to accelerated vesting.

           Your option will become fully vested and exercisable if:

           __   The Company is subject to a Change in Control (as defined in
                Section 2(b) of the Plan) prior to the date your service
                terminates.

           __   The Company involuntarily terminates your employment without
                good cause.

           __   You experience a Total and Permanent Disability (as defined in
                Section 2(ii) of the Plan).

Post-Termination Exercise Period:  [Check only one box]

If your service with the Company terminates for any reason other than Total and
Permanent Disability or death, then your option expires on:

     __    the date of your termination.
     __    the date 90 days after your termination date.
     __    the date 6 months after your termination date.
     __    the date 12 months after your termination date.
     __    the date 24 months after your termination date.
     __    the Expiration Date of your option.

Form of Payment:  [Check one or more boxes]

Payment may be made in the following form(s):

     __    Your personal check, a cashier's check or a money order.

     __    In shares of Company stock which have been owned by you or your
           representative for more than 12 months and which are surrendered to
           the Company in good form for transfer.

     __    By delivering on a form approved by the Committee of an irrevocable
           direction to a securities broker approved by the Company to sell all
           or part of your option shares and to deliver to the Company from the
           sale proceeds in an amount

                                       21
<PAGE>

           sufficient to pay the option exercise price and any withholding
           taxes. The balance of the sale proceeds, if any, will be delivered to
           you.

Expiration Date:   _____________________

     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
term and conditions of the Plan and this Stock Option Agreement, both of which
are attached to and made a part of this document.

<TABLE>
<S>                                             <C>
OPTIONEE:                                       SUPPORT.COM, INC.

_______________________________________         By:_________________________________________

_______________________________________         Title:______________________________________

Please Print Name
</TABLE>

                                       22
<PAGE>

                             STOCK OPTION AGREEMENT

                           FOR THE SUPPORT.COM, INC.

                       2000 OMNIBUS EQUITY INCENTIVE PLAN

<TABLE>
<S>                     <C>
Tax Treatment           This option is intended to be an incentive stock option under
                        Section 422 of the Internal Revenue Code or a nonstatutory
                        option, as provided in the Notice of Stock Option Grant.

Vesting                 This option becomes exercisable in accordance with the vesting schedule set forth in the Notice of Stock
                        Option Grant

Term                    This option expires on the date shown in the Notice of Stock Option Grant, but in no event later than the
                        10th anniversary of the Grant Date.

Regular Termination     If your service as an employee, consultant or director of the Company or a subsidiary of the Company
                        terminates for any reason excluding death or total and permanent disability, then this option will expire on

                        the date specified in the Notice of Stock Option Grant under the heading "Post-Termination Exercise
                        Period.".

Death or Disability     If you become Totally and Permanently Disabled (as defined in Section 2(ii) of the Plan) or die as an
                        employee, consultant or director of the Company or a subsidiary of the Company, then this option will expire

                        at the close of business at Company headquarters on the date 12 months after the date of your termination of

                        employment.

Leaves of Absence       For purposes of this option, your service does not terminate when you go on a military leave, a sick leave
                        or another bona fide leave of absence, if the leave was approved by the Company in writing and if continued
                        crediting of service is required by the terms of the leave or by applicable law. But your service terminates

                        when the approved leave ends, unless you immediately return to active work.

Restrictions            The Company will not permit you to exercise this option if the issuance of shares at that time would violate

on Exercise             any law or regulation.

Notice of Exercise      When you wish to exercise this option you must notify the Company by completing the attached "Notice of
                        Exercise of Stock Option" form and filing it with the Human Resources Department of the Company. The notice
                        will be effective when it is received by the Company. If someone else wants to exercise this option after
                        your death, that person must prove to the Company's satisfaction that he or she is entitled to do so.
</TABLE>

                                       23
<PAGE>

<TABLE>
<S>                     <C>
Form of Payment         When you submit your notice of exercise, you must include payment of the option exercise price for the
                        shares you are purchasing. Payment may be made in the form specified on your Notice of Stock Option Grant.

Withholding Taxes       You will not be allowed to exercise this option unless you make arrangements acceptable to the Company to
and Stock               pay any withholding taxes that may be due as a result of the option exercise. These arrangements may include

Withholding             withholding shares of Company stock that otherwise would be issued to you when you exercise this option. The

                        value of these shares, determined as of the effective date of the option exercise, will be applied to the
                        withholding taxes.

Restrictions on         By signing this Agreement, you agree not to sell any option shares at a time when applicable laws, Company
Resale                  policies or an agreement between the Company and its underwriters prohibit a sale (e.g., a lock-up period
                        after the Company goes public). This restriction will apply as long as you are an employee, consultant or
                        director of the Company or a subsidiary of the Company.

Transfer of Option      Prior to your death, only you can exercise this option. You cannot transfer or assign this option. For
                        instance, you may not sell this option or use it as security for a loan. If you attempt to do any of these
                        things, this option will immediately become invalid. You may in any event dispose of this option in your
                        will.

                        Regardless of any marital property settlement agreement, the Company is not obligated to honor a notice of
                        exercise from your former spouse, nor is the Company obligated to recognize your former spouse's interest in

                        your option in any other way.

Retention Rights        Neither your option nor this Agreement give you the right to be retained by the Company or a subsidiary of
                        the Company in any capacity. The Company and its subsidiaries reserve the right to terminate your service at

                        any time, with or without cause.

Stockholder Rights      You, or your estate or heirs, have no rights as a stockholder of the Company until you have exercised this
                        option by giving the required notice to the Company and paying the exercise price. No adjustments are made
                        for dividends or other rights if the applicable record date occurs before you exercise this option, except
                        as described in the Plan.

Adjustments             In the event of a stock split, a stock dividend or a similar change in Company stock, the number of shares
                        covered by this option and the exercise price per share may be adjusted pursuant to the Plan.

Applicable Law          This Agreement will be interpreted and enforced under the laws of the State of Nevada (without regard to
                        their choice-of-law provisions).
</TABLE>

                                       24
<PAGE>

<TABLE>
<S>                   <C>
The Plan and Other    The text of the Plan is incorporated in this Agreement by reference. This Agreement and the Plan constitute
Other Agreements      the entire understanding between you and the Company regarding this option. Any prior agreements, commitments
                      or negotiations concerning this option are superseded. This Agreement may be amended only by another written
                      agreement, signed by both parties.
</TABLE>

                 BY SIGNING THE COVER SHEET OF THIS AGREEMENT,

                  YOU AGREE TO ALL OF THE TERMS AND CONDITIONS

                        DESCRIBED ABOVE AND IN THE PLAN.

                                       25
<PAGE>

                               NOTICE OF EXERCISE
                              (exercise by check)

Support.com, Inc.
______________________________
______________________________
Attn:  Chief Financial Officer

Re:  Exercise of Stock Option

Dear Sir or Madam:

Pursuant to the Stock Option Agreement dated __________, 200____ (the "Stock
Option Agreement") and the Company's 2000 Omnibus Equity Incentive Plan (the
"Plan"), I hereby elect to purchase _____________ shares of the Common Stock of
the Company at aggregate exercise price of $__________.  I enclose payment and
other documents (check all that are applicable):

    [ ]      My check in the amount of $___________;

The Common Stock is to be issued and registered in the name(s) of:

                  __________________________
                  __________________________

I understand that there may be tax consequences as a result of the purchase or
disposition of the Common Stock, and I have consulted with any tax consultants I
wished to consult and I am not relying on the Company for any tax advice.  I
understand that my exercise is governed by my Stock Option Agreement and the
Plan and agree to abide by and be bound by their terms and conditions.  I
represent that the Common Stock is being acquired solely for my own account and
not as a nominee for any other party, or for investment, and that I will not
offer, sell or otherwise dispose of any such Common Stock except under
circumstances that will not result in a violation of the Securities Act of 1933,
as amended, or any state securities laws.

Dated:  __________, _____.

                              ___________________________________
                                  (Signature)

                              ___________________________________
                                  (Please Print Name)

                              ___________________________________
                              ___________________________________
                                         (Address)

                                      26
<PAGE>

                               SUPPORT.COM, INC.
                       2000 OMNIBUS EQUITY INCENTIVE PLAN
                        NOTICE OF RESTRICTED STOCK AWARD

     You have been granted restricted shares of Common Stock of Support.com,
Inc. (the "Company") on the following terms:

<TABLE>
<CAPTION>
Name of Recipient:                   _________________________
------------------------------------------------------------------------
<S>                                  <C>
Total Number of Shares Granted:      _________________________
------------------------------------------------------------------------
Fair Market Value per Share:         $_________________________
------------------------------------------------------------------------
Total Fair Market Value of Award:    $_________________________
------------------------------------------------------------------------
Date of Grant:                       _______ __, ____
------------------------------------------------------------------------
Vesting Commencement Date:           _______ __, ____
------------------------------------------------------------------------
Vesting Schedule:                    The first __% of the total number
                                     of shares granted vest when you
                                     complete __ months of continuous
                                     service from the Vesting
                                     Commencement Date.  An additional
                                     __% of the shares vest when you
                                     complete each month of continuous
                                     service thereafter.
------------------------------------------------------------------------
</TABLE>

                                       27
<PAGE>

By your signature and the signature of the Company's representative below, you
and the Company agree that these shares are granted under and governed by the
terms and conditions of the 2000 Omnibus Equity Incentive Plan (the "Plan") and
the Restricted Stock Agreement, both of which are attached to and made a part of
this document.

<TABLE>
<S>                                      <C>
Recipient:                               Support.com, Inc.
------------------------------------------------------------------------
_________________________                By:_______________________
------------------------------------------------------------------------
_________________________                Title:______________________
Print Name
------------------------------------------------------------------------
</TABLE>

                                       28
<PAGE>

                               SUPPORT.COM, INC.

                       2000 OMNIBUS EQUITY INCENTIVE PLAN

                      RESTRICTED STOCK PURCHASE AGREEMENT
                      -----------------------------------

     This Restricted Stock Purchase Agreement (the "Agreement") is made as of
                                                    ---------
_______, 2000 by and between Support.com, Inc., a Nevada corporation (the
"Company"), and _______ ("Purchaser") pursuant to the Company's 2000 Omnibus
--------                  ---------
Equity Incentive Plan.  To the extent any capitalized terms used in this
Agreement are not defined, they shall have the meaning ascribed to them in the
2000 Omnibus Equity Incentive Plan.

     1.  Sale of Stock.  Subject to the terms and conditions of this Agreement,
         -------------
on the Purchase Date (as defined below) the Company will issue and sell to
Purchaser, and Purchaser agrees to purchase from the Company, _______ shares of
the Company's Common Stock (the "Shares") at a purchase price of $____ per Share
                                 ------
for a total purchase price of $______.  The per share purchase price of the
Shares shall be not less than 100% of the Fair Market Value of the Shares as of
the date of the offer of such Shares to the Purchaser, or, in the case of any
person owning stock representing more than ten percent (10%) of the total
combined voting power of all classes of stock of the Company (or any affiliated
company), the per share purchase price shall be not less than 110% of the Fair
Market Value of the Shares as of such date.  The term "Shares" refers to the
                                                       ------
purchased Shares and all securities received in replacement of or in connection
with the Shares pursuant to stock dividends or splits, all securities received
in replacement of the Shares in a recapitalization, merger, reorganization,
exchange or the like, and all new, substituted or additional securities or other
properties to which Purchaser is entitled by reason of Purchaser's ownership of
the Shares.

     2.    Time and Place of Exercise. The purchase and sale of the Shares under
           --------------------------
this Agreement shall occur at the principal office of the Company simultaneously
with the execution of this Agreement by the parties, or on such other date as
the Company and Purchaser shall agree (the "Purchase Date"). On the Purchase
                                            -------------
Date, the Company will deliver to Purchaser a certificate representing the
Shares to be purchased by Purchaser (which shall be issued in Purchaser's name)
against payment of the purchase price therefor by Purchaser by (a) check made
payable to the Company, (b) cancellation of indebtedness of the Company to
Purchaser, or (c) by a combination of the foregoing.

     3.    Restrictions on Resale.  By signing this Agreement, you agree not to
           ----------------------
sell any Shares acquired pursuant to the Plan, the Restricted Stock Agreement
and this Agreement at a time when applicable laws, regulations or Company or
underwriter trading policies prohibit exercise or sale.  This restriction will
apply as long as you are an Employee, director or Consultant of the Company or a
Subsidiary of the Company.

                                       29
<PAGE>

     4.    Restrictive Legends and Stop-Transfer Orders.
           --------------------------------------------

           (a) Legends.  The certificate or certificates representing the Shares
               -------
shall bear the following legend (as well as any legends required by applicable
state and federal corporate and securities laws):

               (i)  THE SHARES REPRESENTED BY THIS CERTIFICATE MAY BE
                    TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF AN
                    AGREEMENT BETWEEN THE COMPANY AND THE STOCKHOLDER, A COPY OF
                    WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY.

           (b) Stop-Transfer Notices.  Purchaser agrees that, in order to ensure
               ---------------------
compliance with the restrictions referred to herein, the Company may issue
appropriate "stop transfer" instructions to its transfer agent, if any, and
that, if the Company transfers its own securities, it may make appropriate
notations to the same effect in its own records.

           (c) Refusal to Transfer.  The Company shall not be required (i) to
               -------------------
transfer on its books any Shares that have been sold or otherwise transferred in
violation of any of the provisions of this Agreement or (ii) to treat as owner
of such Shares or to accord the right to vote or pay dividends to any purchaser
or other transferee to whom such Shares shall have been so transferred.

     5.    No Employment Rights.  Nothing in this Agreement shall affect in any
           --------------------
manner whatsoever the right or power of the Company, or a Parent or Subsidiary
of the Company, to terminate Purchaser's employment, for any reason, with or
without cause.

     6.    Market Standoff Agreement.  Upon request of the Company or the
           -------------------------
underwriters managing any underwritten offering of the Company's securities,
Purchaser agrees not to sell, make any short sale of, loan, grant any option for
the purchase of, or otherwise dispose of any Shares (other than those included
in the registration) without the prior written consent of the Company or such
underwriters, as the case may be, for such period of time (not to exceed 180
days) from the effective date of such registration as may be requested by the
Company or such managing underwriters and to execute an agreement reflecting the
foregoing as may be requested by the underwriters at the time of the public
offering.

     7.    Miscellaneous.
           -------------

           (a) Governing Law.  This Agreement and all acts and transactions
               -------------
pursuant hereto and the rights and obligations of the parties hereto shall be
governed, construed and interpreted in accordance with the laws of the State of
California, without giving effect to principles of conflicts of law.

                                       30
<PAGE>

           (b) The Plan and Other Agreements; Enforcement of Rights. The text of
               ----------------------------------------------------
the Plan and the Restricted Stock Agreement are incorporated into this Agreement
by reference. This Agreement, the Plan and the Restricted Stock Agreement
constitute the entire agreement and understanding of the parties relating to the
subject matter herein and merges all prior discussions between them. Any prior
agreements, commitments or negotiations concerning the purchasse of the
Restricted Shares hereunder are superseded. No modification of or amendment to
this Agreement, nor any waiver of any rights under this Agreement, shall be
effective unless in writing signed by the parties to this Agreement. The failure
by either party to enforce any rights under this Agreement shall not be
construed as a waiver of any rights of such party.

           (c) Severability.  If one or more provisions of this Agreement are
               ------------
held to be unenforceable under applicable law, the parties agree to renegotiate
such provision in good faith.  In the event that the parties cannot reach a
mutually agreeable and enforceable replacement for such provision, then (i) such
provision shall be excluded from this Agreement, (ii) the balance of the
Agreement shall be interpreted as if such provision were so excluded and (iii)
the balance of the Agreement shall be enforceable in accordance with its terms.

           (d) Construction.  This Agreement is the result of negotiations
               ------------
between and has been reviewed by each of the parties hereto and their respective
counsel, if any; accordingly, this Agreement shall be deemed to be the product
of all of the parties hereto, and no ambiguity shall be construed in favor of or
against any one of the parties hereto.

           (e) Notices.  Any notice to be given under the terms of the Plan
               -------
shall be addressed to the Company in care or its principal office, and any
notice to be given to the Purchaser shall be addressed to such Purchaser at the
address maintained by the Company for such person or at such other address as
the Purchaser may specify in writing to the Company.

           (f) Counterparts.  This Agreement may be executed in two or more
               ------------
counterparts, each of which shall be deemed an original and all of which
together shall constitute one instrument.

           (g) Successors and Assigns. The rights and benefits of this Agreement
               ----------------------
shall inure to the benefit of, and be enforceable by the Company's successors
and assigns.  The rights and obligations of Purchaser under this Agreement may
only be assigned with the prior written consent of the Company.

                            [Signature Page Follows]

                                       31
<PAGE>

     The parties have executed this Agreement as of the date first set forth
above.

                                                 FECHTOR DETWILER & MITCHELL CO.

                                                 By:___________________________

                                                 Title:________________________

                                                 Address:
                                                 ______________
                                                 ______________

                                                 PURCHASER:

                                                 _______________________________
                                                 (Signature)

                                                 Address:
                                                 _______________________________
                                                 _______________________________

I, ________________________________, spouse of ___________, have read and hereby
approve the foregoing Agreement.  In consideration of the Company's granting my
spouse the right to purchase the Shares as set forth in the Agreement, I hereby
agree to be irrevocably bound by the Agreement and further agree that any
community property or other such interest shall be similarly bound by the
Agreement.  I hereby appoint my spouse as my attorney-in-fact with respect to
any amendment or exercise of any rights under the Agreement.

                                                 _______________________________
                                                 Spouse of ___________

                                       32
<PAGE>

                                    RECEIPT
                                    -------

Fechtor Detwiler & Mitchell Co. hereby acknowledges receipt of  (check as
applicable):

     _____  A check in the amount of $__________

     _____  The cancellation of indebtedness in the amount of $__________

given by ________________ as consideration for Certificate No. CS-____ for
_______ shares of Common Stock of Fechtor Detwiler & Mitchell Co.

Dated:  ________________

                                        Fechtor Detwiler & Mitchell Co.

                                        By:________________________________

                                        Title:_____________________________

                                       33
<PAGE>

                              RECEIPT AND CONSENT
                              -------------------

     The undersigned hereby acknowledges receipt of a photocopy of Certificate
No. CS-____ for _________ shares of Common Stock of Fechtor Detwiler & Mitchell
Co. (the "Company").
          -------

     The undersigned further acknowledges that the Secretary of the Company, or
his or her designee, is acting as escrow holder pursuant to the Restricted Stock
Purchase Agreement Purchaser has previously entered into with the Company.  As
escrow holder, the Secretary of the Company, or his or her designee, holds the
original of the aforementioned certificate issued in the undersigned's name.

Dated:  _________________________

                                       ______________________________
                                       Name

                                       34

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