Document:

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                                                                  EXHIBIT 4.1(C)

                        MISSION CRITICAL SOFTWARE, INC.

                       1999 EMPLOYEE STOCK PURCHASE PLAN

     The following constitute the provisions of the 1998 Employee Stock Purchase
Plan of Mission Critical Software, Inc.

     1.   Purpose.  The purpose of the Plan is to provide employees of the
          -------
Company and its Designated Subsidiaries with an opportunity to purchase Common
Stock of the Company through accumulated payroll deductions. It is the intention
of the Company to have the Plan qualify as an "Employee Stock Purchase Plan"
under Section 423 of the Internal Revenue Code of 1986, as amended. The
provisions of the Plan, accordingly, shall be construed so as to extend and
limit participation in a manner consistent with the requirements of that section
of the Code.

     2.   Definitions.
          -----------

          (a)  "Board" shall mean the Board of Directors of the Company.
                -----

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

          (c)  "Common Stock" shall mean the common stock of the Company.
                ------------

          (d)  "Company" shall mean Mission Critical Software, Inc. and any
                -------
Designated Subsidiary of the Company.

          (e)  "Compensation" shall mean all base straight time gross earnings,
                ------------
commissions, overtime, shift premium, incentive compensation, incentive
payments, and bonuses but exclusive of payments for any other compensation.

          (f)  "Designated Subsidiary" shall mean any Subsidiary which has been
                ---------------------
designated by the Board from time to time in its sole discretion as eligible to
participate in the Plan.

          (g)  "Employee" shall mean any individual who is an Employee of the
                --------
Company for tax purposes whose customary employment with the Company is at least
twenty (20) hours per week and more than five (5) months in any calendar year.
For purposes of the Plan, the employment relationship shall be treated as
continuing intact while the individual is on sick leave or other leave of
absence approved by the Company. Where the period of leave exceeds 90 days and
the individual's right to reemployment is not guaranteed either by statute or by
contract, the employment relationship shall be deemed to have terminated on the
91st day of such leave.

          (h)  "Enrollment Date" shall mean the first Trading Day of each
                ---------------
Offering Period.

          (i)  "Exercise Date" shall mean the last Trading Day of each Purchase
                -------------
Period.
<PAGE>

          (j)  "Fair Market Value" shall mean, as of any date, the value of
                -----------------
Common Stock determined as follows:

               (1)  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 on the date of such determination, as reported in
The Wall Street Journal or such other source as the Board deems reliable;

               (2)  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 of the closing bid and asked prices for the Common Stock on
the date of such determination, as reported in The Wall Street Journal or such
other source as the Board deems reliable; or

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

          (k)  "Offering Periods" shall mean the periods of approximately
                ----------------
twenty-four (24) months during which an option granted pursuant to the Plan may
be exercised, commencing on the first Trading Day on or after May 1 and November
1 (beginning in 1998) of each year and terminating on the last Trading Day in
the periods ending twenty-four months later. The first Offering Period shall be
the period commencing with December 1, 1998 and terminating on the last Trading
Day on or before October 31, 2000. The duration and timing of Offering Periods
may be changed pursuant to Section 4 of this Plan.

          (l)  "Plan" shall mean this 1999 Employee Stock Purchase Plan.
                ----

          (m)  "Purchase Period" shall mean the approximately six month period
                ---------------
commencing after one Exercise Date and ending with the next Exercise Date,
except that the first Purchase Period of any Offering Period shall commence on
the Enrollment Date and end with the next Exercise Date.

          (n)  "Purchase Price" shall mean 85% of the Fair Market Value of a
                --------------
share of Common Stock on the Enrollment Date or on the Exercise Date, whichever
is lower; provided however, that the Purchase Price may be adjusted by the Board
pursuant to Section 20.

          (o)  "Reserves" shall mean the number of shares of Common Stock
                --------
covered by each option under the Plan which have not yet been exercised and the
number of shares of Common Stock which have been authorized for issuance under
the Plan but not yet placed under option.

          (p)  "Subsidiary" shall mean a corporation, domestic or foreign, of
                ----------
which not less than 50% of the voting shares are held by the Company or a
Subsidiary, whether or not such corporation now exists or is hereafter organized
or acquired by the Company or a Subsidiary.

                                      -2-
<PAGE>

          (q)  "Trading Day" shall mean a day on which national stock exchanges
                -----------
and the Nasdaq System are open for trading.

     3.   Eligibility.
          -----------

          (a)  Any Employee who shall be employed by the Company on a given
Enrollment Date shall be eligible to participate in the Plan.

          (b)  Any provisions of the Plan to the contrary notwithstanding, no
Employee shall be granted an option under the Plan (i) to the extent that,
immediately after the grant, such Employee (or any other person whose stock
would be attributed to such Employee pursuant to Section 424(d) of the Code)
would own capital stock of the Company and/or hold outstanding options to
purchase such stock possessing five percent (5%) or more of the total combined
voting power or value of all classes of the capital stock of the Company or of
any Subsidiary, or (ii) to the extent that his or her rights to purchase stock
under all employee stock purchase plans of the Company and its subsidiaries
accrues at a rate which exceeds Twenty-Five Thousand Dollars ($25,000) worth of
stock (determined at the fair market value of the shares at the time such option
is granted) for each calendar year in which such option is outstanding at any
time.

     4.   Offering Periods.  The Plan shall be implemented by consecutive,
          ----------------
overlapping Offering Periods with a new Offering Period commencing on the first
Trading Day on or after May 1 and November 1 of each year, or on such other date
as the Board shall determine, and continuing thereafter until terminated in
accordance with Section 20 hereof. The first Offering Period shall begin on
December 1, 1998 and shall end on the last Trading Day on or before October 31,
2000. The Board shall have the power to change the duration of Offering Periods
(including the commencement dates thereof) with respect to future offerings
without stockholder approval if such change is announced prior to the scheduled
beginning of the first Offering Period to be affected thereafter.

     5.   Participation.
          -------------

          (a)  An eligible Employee may become a participant in the Plan by
completing a subscription agreement authorizing payroll deductions in the form
of Exhibit A to this Plan and filing it with the Company's payroll office prior
to the applicable Enrollment Date.

          (b)  Payroll deductions for a participant shall commence on the first
payroll following the Enrollment Date and shall end on the last payroll in the
Offering Period to which such authorization is applicable, unless sooner
terminated by the participant as provided in Section 10 hereof.

     6.   Payroll Deductions.
          ------------------

          (a)  At the time a participant files his or her subscription
agreement, he or she shall elect to have payroll deductions made on each pay day
during the Offering Period in an amount not exceeding fifteen percent (15%) of
the Compensation which he or she receives on each pay day during the Offering
Period.

                                      -3-
<PAGE>

          (b)  All payroll deductions made for a participant shall be credited
to his or her account under the Plan and shall be withheld in whole percentages
only. A participant may not make any additional payments into such account.

          (c)  A participant may discontinue his or her participation in the
Plan as provided in Section 10 hereof, or may increase or decrease the rate of
his or her payroll deductions during the Offering Period by completing or filing
with the Company a new subscription agreement authorizing a change in payroll
deduction rate. The Board may, in its discretion, limit the number of
participation rate changes during any Offering Period. The change in rate shall
be effective with the first full payroll period following five (5) business days
after the Company's receipt of the new subscription agreement unless the Company
elects to process a given change in participation more quickly. A participant's
subscription agreement shall remain in effect for successive Offering Periods
unless terminated as provided in Section 10 hereof.

          (d)  Notwithstanding the foregoing, to the extent necessary to comply
with Section 423(b)(8) of the Code and Section 3(b) hereof, a participant's
payroll deductions may be decreased to zero percent (0%) at any time during a
Purchase Period. Payroll deductions shall recommence at the rate provided in
such participant's subscription agreement at the beginning of the first Purchase
Period which is scheduled to end in the following calendar year, unless
terminated by the participant as provided in Section 10 hereof.

          (e)  At the time the option is exercised, in whole or in part, or at
the time some or all of the Company's Common Stock issued under the Plan is
disposed of, the participant must make adequate provision for the Company's
federal, state, or other tax withholding obligations, if any, which arise upon
the exercise of the option or the disposition of the Common Stock. At any time,
the Company may, but shall not be obligated to, withhold from the participant's
compensation the amount necessary for the Company to meet applicable withholding
obligations, including any withholding required to make available to the Company
any tax deductions or benefits attributable to sale or early disposition of
Common Stock by the Employee.

     7.   Grant of Option.  On the Enrollment Date of each Offering Period, each
          ---------------
eligible Employee participating in such Offering Period shall be granted an
option to purchase on each Exercise Date during such Offering Period (at the
applicable Purchase Price) up to a number of shares of the Company's Common
Stock determined by dividing such Employee's payroll deductions accumulated
prior to such Exercise Date and retained in the Participant's account as of the
Exercise Date by the applicable Purchase Price; provided that in no event shall
an Employee be permitted to purchase during each Purchase Period more than 5,000
shares of the Company's Common Stock (subject to any adjustment pursuant to
Section 19), and provided further that such purchase shall be subject to the
limitations set forth in Sections 3(b) and 12 hereof. The Board may, for future
Offering Periods, increase or decrease, in its absolute discretion, the maximum
number of shares of the Company's Common Stock an Employee may purchase during
each Purchase Period of such Offering Period. Exercise of the option shall occur
as provided in Section 8 hereof, unless the participant has withdrawn pursuant
to Section 10 hereof. The option shall expire on the last day of the Offering
Period.

                                      -4-
<PAGE>

     8.   Exercise of Option.
          ------------------

          (a)  Unless a participant withdraws from the Plan as provided in
Section 10 hereof, his or her option for the purchase of shares shall be
exercised automatically on the Exercise Date, and the maximum number of full
shares subject to option shall be purchased for such participant at the
applicable Purchase Price with the accumulated payroll deductions in his or her
account. No fractional shares shall be purchased; any payroll deductions
accumulated in a participant's account which are not sufficient to purchase a
full share shall be retained in the participant's account for the subsequent
Purchase Period or Offering Period, subject to earlier withdrawal by the
participant as provided in Section 10 hereof. Any other monies left over in a
participant's account after the Exercise Date shall be returned to the
participant. During a participant's lifetime, a participant's option to purchase
shares hereunder is exercisable only by him or her.

          (b)  If the Board determines that, on a given Exercise Date, the
number of shares with respect to which options are to be exercised may exceed
(i) the number of shares of Common Stock that were available for sale under the
Plan on the Enrollment Date of the applicable Offering Period, or (ii) the
number of shares available for sale under the Plan on such Exercise Date, the
Board may in its sole discretion (x) provide that the Company shall make a pro
rata allocation of the shares of Common Stock available for purchase on such
Enrollment Date or Exercise Date, as applicable, in as uniform a manner as shall
be practicable and as it shall determine in its sole discretion to be equitable
among all participants exercising options to purchase Common Stock on such
Exercise Date, and continue all Offering Periods then in effect, or (y) provide
that the Company shall make a pro rata allocation of the shares available for
purchase on such Enrollment Date or Exercise Date, as applicable, in as uniform
a manner as shall be practicable and as it shall determine in its sole
discretion to be equitable among all participants exercising options to purchase
Common Stock on such Exercise Date, and terminate any or all Offering Periods
then in effect pursuant to Section 20 hereof. The Company may make pro rata
allocation of the shares available on the Enrollment Date of any applicable
Offering Period pursuant to the preceding sentence, notwithstanding any
authorization of additional shares for issuance under the Plan by the Company's
stockholders subsequent to such Enrollment Date.

     9.   Delivery.  As promptly as practicable after each Exercise Date on
          --------
which a purchase of shares occurs, the Company shall arrange the delivery to
each participant, as appropriate, of a certificate representing the shares
purchased upon exercise of his or her option.

                                      -5-
<PAGE>

     10.  Withdrawal.
          ----------

          (a)  A participant may withdraw all but not less than all the payroll
deductions credited to his or her account and not yet used to exercise his or
her option under the Plan at any time by giving written notice to the Company in
the form of Exhibit B to this Plan. All of the participant's payroll deductions
credited to his or her account shall be paid to such participant promptly after
receipt of notice of withdrawal and such participant's option for the Offering
Period shall be automatically terminated, and no further payroll deductions for
the purchase of shares shall be made for such Offering Period. If a participant
withdraws from an Offering Period, payroll deductions shall not resume at the
beginning of the succeeding Offering Period unless the participant delivers to
the Company a new subscription agreement.

          (b)  A participant's withdrawal from an Offering Period shall not have
any effect upon his or her eligibility to participate in any similar plan which
may hereafter be adopted by the Company or in succeeding Offering Periods which
commence after the termination of the Offering Period from which the participant
withdraws.

     11.  Termination of Employment.
          -------------------------

          Upon a participant's ceasing to be an Employee, for any reason, he or
she shall be deemed to have elected to withdraw from the Plan and the payroll
deductions credited to such participant's account during the Offering Period but
not yet used to exercise the option shall be returned to such participant or, in
the case of his or her death, to the person or persons entitled thereto under
Section 15 hereof, and such participant's option shall be automatically
terminated.  The preceding sentence notwithstanding, a participant who receives
payment in lieu of notice of termination of employment shall be treated as
continuing to be an Employee for the participant's customary number of hours per
week of employment during the period in which the participant is subject to such
payment in lieu of notice.

     12.  Interest.  No interest shall accrue on the payroll deductions of a
          --------
participant in the Plan.

     13.  Stock.
          -----

          (a)  Subject to adjustment upon changes in capitalization of the
Company as provided in Section 19 hereof, the maximum number of shares of the
Company's Common Stock which shall be made available for sale under the Plan
shall be _______ shares (after giving effect to the ______ - for -________
reverse stock split approved by the stockholders of the Company on April ___,
1999 (hereinafter "post-split")) together with an annual increase to be added on
the first day of the Company's fiscal year beginning in 2000 equal to the lesser
of (i) ________ shares, (ii) ___% of the outstanding shares on the last day of
the Company's prior fiscal year or (iii) such amount as may be determined by the
Board.

          (b)  The participant shall have no interest or voting right in shares
covered by his option until such option has been exercised.

                                      -6-
<PAGE>

          (c)  Shares to be delivered to a participant under the Plan shall be
registered in the name of the participant or in the name of the participant and
his or her spouse.

     14.  Administration.  The Plan shall be administered by the Board or a
          --------------
committee of members of the Board appointed by the Board. The Board or its
committee shall have full and exclusive discretionary authority to construe,
interpret and apply the terms of the Plan, to determine eligibility and to
adjudicate all disputed claims filed under the Plan. Every finding, decision and
determination made by the Board or its committee shall, to the full extent
permitted by law, be final and binding upon all parties.

     15.  Designation of Beneficiary.
          --------------------------

          (a)  A participant may file a written designation of a beneficiary who
is to receive any shares and cash, if any, from the participant's account under
the Plan in the event of such participant's death subsequent to an Exercise Date
on which the option is exercised but prior to delivery to such participant of
such shares and cash. In addition, a participant may file a written designation
of a beneficiary who is to receive any cash from the participant's account under
the Plan in the event of such participant's death prior to exercise of the
option. If a participant is married and the designated beneficiary is not the
spouse, spousal consent shall be required for such designation to be effective.

          (b)  Such designation of beneficiary may be changed by the participant
at any time by written notice. In the event of the death of a participant and in
the absence of a beneficiary validly designated under the Plan who is living at
the time of such participant's death, the Company shall deliver such shares
and/or cash to the executor or administrator of the estate of the participant,
or if no such executor or administrator has been appointed (to the knowledge of
the Company), the Company, in its discretion, may deliver such shares and/or
cash to the spouse or to any one or more dependents or relatives of the
participant, or if no spouse, dependent or relative is known to the Company,
then to such other person as the Company may designate.

     16.  Transferability.  Neither payroll deductions credited to a
          ---------------
participant's account nor any rights with regard to the exercise of an option or
to receive shares under the Plan may be assigned, transferred, pledged or
otherwise disposed of in any way (other than by will, the laws of descent and
distribution or as provided in Section 15 hereof) by the participant. Any such
attempt at assignment, transfer, pledge or other disposition shall be without
effect, except that the Company may treat such act as an election to withdraw
funds from an Offering Period in accordance with Section 10 hereof.

     17.  Use of Funds.  All payroll deductions received or held by the Company
          ------------
under the Plan may be used by the Company for any corporate purpose, and the
Company shall not be obligated to segregate such payroll deductions.

     18.  Reports. Individual accounts shall be maintained for each participant
          -------
in the Plan. Statements of account shall be given to participating Employees at
least annually, which statements shall set forth the amounts of payroll
deductions, the Purchase Price, the number of shares purchased and the remaining
cash balance, if any.

                                      -7-
<PAGE>

     19.  Adjustments Upon Changes in Capitalization, Dissolution, Liquidation,
          ---------------------------------------------------------------------
Merger or Asset Sale.
--------------------

          (a)  Changes in Capitalization.  Subject to any required action by the
               -------------------------
stockholders of the Company, the Reserves, the maximum number of shares each
participant may purchase each Purchase Period (pursuant to Section 7), as well
as the price per share and the number of shares of Common Stock covered by each
option under the Plan which has not yet been exercised 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 shares of Common Stock effected without receipt of
consideration by the Company; provided, however, that conversion of any
convertible securities of the Company shall not be deemed to have been "effected
without receipt of consideration". Such adjustment shall be made by the Board,
whose determination in that respect shall be final, binding and conclusive.
Except as expressly provided herein, no issuance by the Company of shares of
stock of any class, or securities convertible into shares of stock of any class,
shall affect, and no adjustment by reason thereof shall be made with respect to,
the number or price of shares of Common Stock subject to an option.

          (b)  Dissolution or Liquidation. In the event of the proposed
               --------------------------
dissolution or liquidation of the Company, the Offering Period then in progress
shall be shortened by setting a new Exercise Date (the "New Exercise Date"), and
shall terminate immediately prior to the consummation of such proposed
dissolution or liquidation, unless provided otherwise by the Board. The New
Exercise Date shall be before the date of the Company's proposed dissolution or
liquidation. The Board shall notify each participant in writing, at least ten
(10) business days prior to the New Exercise Date, that the Exercise Date for
the participant's option has been changed to the New Exercise Date and that the
participant's option shall be exercised automatically on the New Exercise Date,
unless prior to such date the participant has withdrawn from the Offering Period
as provided in Section 10 hereof.

          (c)  Merger or Asset Sale.  In the event of a proposed sale of all or
               --------------------
substantially all of the assets of the Company, or the merger of the Company
with or into another corporation, each outstanding option shall be assumed or an
equivalent option substituted by the successor corporation or a Parent or
Subsidiary of the successor corporation. In the event that the successor
corporation refuses to assume or substitute for the option, any Purchase Periods
then in progress shall be shortened by setting a new Exercise Date (the "New
Exercise Date") and any Offering Periods then in progress shall end on the New
Exercise Date. The New Exercise Date shall be before the date of the Company's
proposed sale or merger. The Board shall notify each participant in writing, at
least ten (10) business days prior to the New Exercise Date, that the Exercise
Date for the participant's option has been changed to the New Exercise Date and
that the participant's option shall be exercised automatically on the New
Exercise Date, unless prior to such date the participant has withdrawn from the
Offering Period as provided in Section 10 hereof.

     20.  Amendment or Termination.
          ------------------------

                                      -8-
<PAGE>

          (a)  The Board of Directors of the Company may at any time and for any
reason terminate or amend the Plan. Except as provided in Section 19 hereof, no
such termination can affect options previously granted, provided that an
Offering Period may be terminated by the Board of Directors on any Exercise Date
if the Board determines that the termination of the Offering Period or the Plan
is in the best interests of the Company and its stockholders. Except as provided
in Section 19 and this Section 20 hereof, no amendment may make any change in
any option theretofore granted which adversely affects the rights of any
participant. To the extent necessary to comply with Section 423 of the Code (or
any successor rule or provision or any other applicable law, regulation or stock
exchange rule), the Company shall obtain stockholder approval in such a manner
and to such a degree as required.

          (b)  Without stockholder consent and without regard to whether any
participant rights may be considered to have been "adversely affected," the
Board (or its committee) shall be entitled to change the Offering Periods, limit
the frequency and/or number of changes in the amount withheld during an Offering
Period, establish the exchange ratio applicable to amounts withheld in a
currency other than U.S. dollars, permit payroll withholding in excess of the
amount designated by a participant in order to adjust for delays or mistakes in
the Company's processing of properly completed withholding elections, establish
reasonable waiting and adjustment periods and/or accounting and crediting
procedures to ensure that amounts applied toward the purchase of Common Stock
for each participant properly correspond with amounts withheld from the
participant's Compensation, and establish such other limitations or procedures
as the Board (or its committee) determines in its sole discretion advisable
which are consistent with the Plan.

          (c)  In the event the Board determines that the ongoing operation of
the Plan may result in unfavorable financial accounting consequences, the Board
may, in its discretion and, to the extent necessary or desirable, modify or
amend the Plan to reduce or eliminate such accounting consequence including, but
not limited to:

               (1)  altering the Purchase Price for any Offering Period
including an Offering Period underway at the time of the change in Purchase
Price;

               (2)  shortening any Offering Period so that the Offering Period
ends on a new Exercise Date, including an Offering Period underway at the time
of the Board action; and

               (3)  allocating shares.

               Such modifications or amendments shall not require stockholder
approval or the consent of any Plan participants.

     21.  Notices.  All notices or other communications by a participant to the
          -------
Company under or in connection with the Plan shall be deemed to have been duly
given when received in the form specified by the Company at the location, or by
the person, designated by the Company for the receipt thereof.

                                      -9-
<PAGE>

     22.  Conditions Upon Issuance of Shares.  Shares shall not be issued with
          ----------------------------------
respect to an option unless the exercise of such option and the issuance and
delivery of such shares pursuant thereto shall comply with all applicable
provisions of law, domestic or foreign, including, without limitation, the
Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as
amended, 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 applicable provisions of law.

     23.  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. It shall continue in effect for a term of ten (10)
years unless sooner terminated under Section 20 hereof.

     24.  Automatic Transfer to Low Price Offering Period.  To the extent
          -----------------------------------------------
permitted by any applicable laws, regulations, or stock exchange rules if the
Fair Market Value of the Common Stock on any Exercise Date in an Offering Period
is lower than the Fair Market Value of the Common Stock on the Enrollment Date
of such Offering Period, then all participants in such Offering Period shall be
automatically withdrawn from such Offering Period immediately after the exercise
of their option on such Exercise Date and automatically re-enrolled in the
immediately following Offering Period as of the first day thereof.

                                      -10-
<PAGE>

                                                                  Exhibit 4.1(c)

                                   EXHIBIT A
                                   ---------

                        MISSION CRITICAL SOFTWARE, INC.

                       1999 EMPLOYEE STOCK PURCHASE PLAN

                            SUBSCRIPTION AGREEMENT

_____ Original Application                          Enrollment Date: ___________
_____ Change in Payroll Deduction Rate
_____ Change of Beneficiary(ies)

1.   ___________________________ hereby elects to participate in the Mission
     Critical Software, Inc. 1999 Employee Stock Purchase Plan (the "Employee
     Stock Purchase Plan") and subscribes to purchase shares of the Company's
     Common Stock in accordance with this Subscription Agreement and the
     Employee Stock Purchase Plan.

2.   I hereby authorize payroll deductions from each paycheck in the amount of
     ____% of my Compensation on each payday (from 1 to 15%) during the Offering
     Period in accordance with the Employee Stock Purchase Plan. (Please note
     that no fractional percentages are permitted.)

3.   I understand that said payroll deductions shall be accumulated for the
     purchase of shares of Common Stock at the applicable Purchase Price
     determined in accordance with the Employee Stock Purchase Plan. I
     understand that if I do not withdraw from an Offering Period, any
     accumulated payroll deductions will be used to automatically exercise my
     option.

4.   I have received a copy of the complete Employee Stock Purchase Plan. I
     understand that my participation in the Employee Stock Purchase Plan is in
     all respects subject to the terms of the Plan. I understand that my ability
     to exercise the option under this Subscription Agreement is subject to
     stockholder approval of the Employee Stock Purchase Plan.

5.   Shares purchased for me under the Employee Stock Purchase Plan should be
     issued in the name(s) of (Employee or Employee and Spouse only):

6.   I understand that if I dispose of any shares received by me pursuant to the
     Plan within 2 years after the Enrollment Date (the first day of the
     Offering Period during which I purchased such shares) or one year after the
     Exercise Date, I will be treated for federal income tax purposes as having
     received ordinary income at the time of such disposition in an amount equal
     to the excess of the fair market value of the shares at the time such
     shares were purchased by me
<PAGE>

over the price which I paid for the shares. I hereby agree to notify the
                                            ----------------------------
Company in writing within 30 days after the date of any disposition of my shares
--------------------------------------------------------------------------------
and I will make adequate provision for Federal, state or other tax withholding
------------------------------------------------------------------------------
obligations, if any, which arise upon the disposition of the Common Stock.  The
-------------------------------------------------------------------------
Company may, but will not be obligated to, withhold from my compensation the
amount necessary to meet any applicable withholding obligation including any
withholding necessary to make available to the Company any tax deductions or
benefits attributable to sale or early disposition of Common Stock by me.  If I
dispose of such shares at any time after the expiration of the 2-year and 1-year
holding periods, I understand that I will be treated for federal income tax
purposes as having received income only at the time of such disposition, and
that such income will be taxed as ordinary income only to the extent of an
amount equal to the lesser of (1) the excess of the fair market value of the
shares at the time of such disposition over the purchase price which I paid for
the shares, or (2) 15% of the fair market value of the shares on the first day
of the Offering Period.  The remainder of the gain, if any, recognized on such
disposition will be taxed as capital gain.

7.   I hereby agree to be bound by the terms of the Employee Stock Purchase
     Plan. The effectiveness of this Subscription Agreement is dependent upon my
     eligibility to participate in the Employee Stock Purchase Plan.

8.   In the event of my death, I hereby designate the following as my
     beneficiary(ies) to receive all payments and shares due me under the
     Employee Stock Purchase Plan:

NAME:  (Please print)________________________________________________
                       (First)         (Middle)        (Last)

___________________________                   _________________________________
Relationship

                                              _________________________________
                                              (Address)
<PAGE>

Employee's Social
Security Number:              ____________________________________

Employee's Address:           ____________________________________

                              ____________________________________

                              ____________________________________

I UNDERSTAND THAT THIS SUBSCRIPTION AGREEMENT SHALL REMAIN IN EFFECT THROUGHOUT
SUCCESSIVE OFFERING PERIODS UNLESS TERMINATED BY ME.

Dated:______________          ____________________________________
                              Signature of Employee

                              ____________________________________
                              Spouse's Signature (If beneficiary other than
                              spouse)
<PAGE>

                                                                  Exhibit 4.1(c)

                                   EXHIBIT B
                                   ---------

                        MISSION CRITICAL SOFTWARE, INC.

                       1999 EMPLOYEE STOCK PURCHASE PLAN

                             NOTICE OF WITHDRAWAL

     The undersigned participant in the Offering Period of the Mission Critical
Software, Inc. 1999 Employee Stock Purchase Plan which began on ____________,
19____ (the "Enrollment Date") hereby notifies the Company that he or she hereby
withdraws from the Offering Period. He or she hereby directs the Company to pay
to the undersigned as promptly as practicable all the payroll deductions
credited to his or her account with respect to such Offering Period. The
undersigned understands and agrees that his or her option for such Offering
Period will be automatically terminated. The undersigned understands further
that no further payroll deductions will be made for the purchase of shares in
the current Offering Period and the undersigned shall be eligible to participate
in succeeding Offering Periods only by delivering to the Company a new
Subscription Agreement.

                                    Name and Address of Participant:

                                    ____________________________________

                                    ____________________________________

                                    ____________________________________

                                    Signature:

                                    ____________________________________

                                    Date:_______________________________CHANGE IN CONTROL AGREEMENT

          This  Agreement  entered into as of the 24th_ day of May, 1999, by and
between Homestead Village Incorporated,  a Maryland corporation (the "Company"),
and James C. Potts (the "Executive").

         WHEREAS,  the Company  wishes to assure itself of the continuity of the
Executive's  services  in the  event of any  actual  change  in  control  of the
Company; and

         WHEREAS, the Company and the Executive accordingly desire to enter into
this Agreement on the terms and conditions set forth below;

         NOW,  THEREFORE,  in consideration of the premises and mutual covenants
set forth herein, it is hereby agreed by and between the parties as follows:

1. Term of Agreement.  The "Term" of this  Agreement  shall commence on the date
hereof and shall continue through December 31, 2001; provided,  however, that on
such date and on each December 31 thereafter,  the Term of this Agreement  shall
automatically  be extended for one  additional  year unless,  not later than the
preceding  January 1 either  party shall have given  notice that such party does
not wish to extend the Term; and provided,  further, that if a Change in Control
(as defined in paragraph 3 below) shall have occurred during the original or any
extended Term of this Agreement, the Term of this Agreement shall continue for a
period of  twenty-four  calendar  months beyond the calendar month in which such
Change in Control occurs.

2.  Employment  After a Change in Control.  If the Executive is in the employ of
the Company on the date of a Change in Control,  the  Company  hereby  agrees to
continue the  Executive in its employ for the period  commencing  on the date of
the Change in Control and ending on the last day of the Term of this  Agreement.
During the period of employment  described in the  foregoing  provisions of this
paragraph 2 (the  "Employment  Period"),  the Executive shall hold such position
with the Company and exercise such authority and perform such  executive  duties
as  are  commensurate  with  the  Executive's  position,  authority  and  duties
immediately prior to the Change in Control. The Executive agrees that during the
Employment  Period the Executive shall devote full business time  exclusively to
the executive  duties  described  herein and perform such duties  faithfully and
efficiently; provided, however, that nothing in this Agreement shall prevent the
Executive  from  voluntarily  resigning  from  employment  upon 60 days' written
notice to the Company under  circumstances which do not constitute a Termination
(as defined below in paragraph 5).

3. Change in Control.  For purposes of the Plan, a "Change in Control" means the
happening of any of the following:

a.   the stockholders of the Company approve a definitive agreement to merge the
     Company  into or  consolidate  the Company  with  another  entity,  sell or
     otherwise dispose of all or substantially all of its assets or adopt a plan
     of liquidation,  provided,  however,  that a Change in Control shall not be
     deemed to have  occurred  by reason of a  transaction,  or a  substantially
     concurrent or otherwise related series of transactions, upon the completion
     of which 50% or more of the beneficial ownership of the voting power of the
     Company,  the surviving  corporation or corporation  directly or indirectly
     controlling the Company or the surviving  corporation,  as the case may be,
     is held by the same persons (as defined below) (although not necessarily in
     the same  proportion) as held the beneficial  ownership of the voting power
     of the Company  immediately  prior to the transaction or the  substantially
     concurrent or otherwise  related series of  transactions,  except that upon
     the completion thereof,  employees or employee benefit plans of the Company
     may be a new holder of such beneficial ownership; provided, further, that a
     transaction  with  an  "Affiliate"  of  the  Company  (as  defined  in  the
     Securities Exchange Act of 1934, as amended (the "Exchange Act")) shall not
     be treated as a Change in Control; or

b.   the  "beneficial  ownership"  (as defined in Rule 13d-3 under the  Exchange
     Act) of securities representing 50% or more of the combined voting power of
     the Company is acquired,  other than from the  Company,  by any "person" as
     defined in Sections  13(d) and 14(d) of the  Exchange Act (other than by an
     Affiliate or any trustee or other  fiduciary  holding  securities  under an
     employee benefit or other similar stock plan of the Company); or

c.   at any time during any period of two consecutive years,  individuals who at
     the  beginning of such period were members of the Board of Directors of the
     Company  cease for any reason to  constitute  at least a  majority  thereof
     (unless the  election,  or the  nomination  for  election by the  Company's
     stockholders,  of each  new  Director  was  approved  by a vote of at least
     two-thirds of the Directors still in office at the time of such election or
     nomination who were Directors at the beginning of such period).

<PAGE>

4. Compensation During the Employment Period.  During the Employment Period, the
Executive shall be compensated as follows:

a.   the  Executive  shall  receive an annual  salary which is not less than his
     annual  salary  immediately  prior to the  Employment  Period  and shall be
     eligible to receive an increase in annual  salary  which is not  materially
     less  favorable to the Executive  than  increases in salary  granted by the
     Company for executives with comparable duties;

b.   the Executive  shall be eligible to participate in short-term and long-term
     cash-based  incentive  compensation plans which, in the aggregate,  provide
     bonus  opportunities  which  are  not  materially  less  favorable  to  the
     Executive than the greater of (i) the opportunities provided by the Company
     for executives with comparable duties; and (ii) the opportunities  provided
     to  the  Executive  under  all  such  plans  in  which  the  Executive  was
     participating prior to the Employment Period;

c.   the Executive shall be eligible to participate in stock option, performance
     awards,  restricted  stock and other  equity-based  incentive  compensation
     plans on a basis not  materially  less favorable to the Executive than that
     applicable (i) to the Executive  immediately prior to the Employment Period
     or (ii) to other executives of the Company with comparable duties; and

d.   the Executive shall be eligible to receive  employee  benefits  (including,
     but not limited to,  tax-qualified and nonqualified  savings plan benefits,
     medical insurance,  disability income  protection,  life insurance coverage
     and death benefits) and perquisites which are not materially less favorable
     to the Executive than (i) the employee benefits and perquisites provided by
     the  Company to  executives  with  comparable  duties or (ii) the  employee
     benefits and perquisites to which the Executive would be entitled under the
     Company's  employee benefit plans and perquisites as in effect  immediately
     prior to the Employment Period.

5. Termination.  For purposes of this Agreement,  the term  "Termination"  shall
mean termination of the employment of the Executive during the Employment Period
(i) by the  Company,  for any reason  other than death,  Disability  (as defined
below),  or Cause (as described  below), or (ii) by resignation of the Executive
upon the occurrence of one of the following events:

a.   a significant change in the nature or scope of the Executive's  authorities
     or duties from those described in paragraph 2 above, a breach of any of the
     subparagraphs  of  paragraph  4 above,  or the breach by the Company of any
     other provision of this Agreement;

b.   the  relocation  of the  Executive's  office to a location  more than fifty
     miles from the location of the Executive's  office immediately prior to the
     Employment Period;

c.   a reasonable  determination  by the Executive that, as a result of a Change
     in Control and a change in circumstances thereafter significantly affecting
     the  nature and scope of  Executive's  authorities  and  duties  from those
     described  in  paragraph 2 above,  the  Executive is unable to exercise the
     authorities,  powers,  functions or duties  associated with the Executive's
     position as contemplated by paragraph 2 above; or

d.   the  failure of the  Company to obtain a  satisfactory  agreement  from any
     successor to assume and agree to perform this Agreement as  contemplated in
     paragraph 18 below.

The date of the Executive's Termination under this paragraph 5 shall be the date
specified  by the  Executive  or the  Company,  as the case may be, in a written
notice to the other party complying with the requirements of paragraph 14 below.
For purposes of this  Agreement,  the  Executive  shall be  considered to have a
"Disability"  during the period in which the Executive is unable, by reason of a
medically determinable physical or mental impairment,  to engage in the material
and substantial duties of his regular occupation, which condition is expected to
be permanent.  For purposes of this  Agreement,  the term "Cause" means,  in the
reasonable  judgment of the Board of Directors  of the Company,  (i) the willful
and continued failure by the Executive to substantially  perform the Executive's
duties with the Company  after  written  notification  by the Company,  (ii) the
willful engaging by the Executive in conduct which is demonstrably  injurious to
the Company,  monetarily or otherwise, or (iii) the engaging by the Executive in
egregious  misconduct  involving  serious moral turpitude.  For purposes of this
Agreement,  no act, or failure to act, on the  Executive's  part shall be deemed
"willful" unless done, or omitted to be done, by the Executive not in good faith
and without  reasonable  belief that such action was in the best interest of the
Company.

6. Severance  Payments.  Subject to the provisions of paragraph 10 below, in the
event of a  Termination  described in  paragraph 5 above,  in lieu of the amount
otherwise  payable  under  paragraph 4 above,  the Executive  shall  continue to
receive medical insurance, disability income protection, life insurance coverage
and death benefits and  perquisites in accordance with  subparagraph  4(d) above
for a period  of  twelve  months  after  the date of  Termination,  and shall be
entitled to a lump sum payment in cash no later than ten business days after the
date of Termination equal to the sum of:

<PAGE>

     a.   the Executive's  unpaid salary,  accrued vacation pay and unreimbursed
          business expenses through and including the date of Termination;

     b.   an amount  equal to two times the  Executive's  annual  salary rate in
          effect immediately prior to the date of Termination;

     c.   an amount equal to two times the target bonus award for the  Executive
          for the year of Termination;

     d.   an amount equal to the assigned target bonus for the Executive for the
          year of Termination prorated through the date of Termination.

7. Make-Whole Payments. Subject to the last three sentences of this paragraph 7,
if any payment or benefit to which the Executive is entitled, whether under this
Agreement  or  otherwise,  in  connection  with  a  Change  in  Control  or  the
Executive's  termination of employment (a "Payment") is subject to any tax under
section 4999 of the Internal  Revenue Code of 1986, as amended (the "Code"),  or
any similar federal or state law (an "Excise Tax"), the Company shall pay to the
Executive an additional  amount (the "Make-Whole  Amount") which is equal to (i)
the amount of the Excise Tax,  plus (ii) the  aggregate  amount of any interest,
penalties,  fines or additions to any tax which are imposed in  connection  with
the  imposition  of such  Excise Tax,  plus (iii) all  income,  excise and other
applicable  taxes imposed on the Executive under the laws of any Federal,  state
or local government or taxing authority by reason of the payments required under
clause (i) and clause (ii) and this clause (iii).  Such  Make-Whole  Amount will
not be paid to the  Executive  if the Payment is less than 10 percent  above the
maximum amount that may be paid without  incurring Excise Tax. In the event that
the  Payment  is  greater  than the  maximum  amount  that  may be paid  without
incurring  Excise Tax, but less than 10 percent greater than the maximum amount,
then the Payments shall be capped at the maximum amount that may be paid without
incurring  Excise Tax. In such event,  the cash severance  payments  provided in
paragraph 6 above  and/or the  outplacement  services  provided  in  paragraph 8
below, at the Executive's election,  shall be reduced to a level that results in
the total  Payment  being equal to the maximum  amount that may be paid  without
incurring Excise Tax.

a.   For purposes of determining the Make-Whole  Amount,  the Executive shall be
     deemed to be taxed at the highest marginal rate under all applicable local,
     state,  federal  and  foreign  income  tax laws  for the year in which  the
     Make-Whole Amount is paid. The Make-Whole Amount payable with respect to an
     Excise Tax shall be paid by the Company  coincident  with the Payment  with
     respect to which such Excise Tax relates.

b.   All  calculations  under this  paragraph 7 shall be made  initially  by the
     Company and the Company shall provide  prompt written notice thereof to the
     Executive  to enable  the  Executive  to  timely  file all  applicable  tax
     returns.  Upon  request of the  Executive,  the Company  shall  provide the
     Executive with sufficient tax and compensation data to enable the Executive
     or his tax advisor to  independently  make the  calculations  described  in
     subparagraph  (a) above and the Company  shall  reimburse the Executive for
     reasonable fees and expenses incurred for any such verification.

c.   If the Executive  gives  written  notice to the Company of any objection to
     the results of the Company's calculations within 60 days of the Executive's
     receipt of written  notice  thereof,  the  dispute  shall be  referred  for
     determination  to tax counsel  selected by the independent  auditors of the
     Company  ("Tax  Counsel").  The Company shall pay all  reasonable  fees and
     expenses of such Tax Counsel.  Pending such  determination  by Tax Counsel,
     the Company shall pay the Executive the Make-Whole  Amount as determined by
     it in good faith. The Company shall pay the Executive any additional amount
     determined by Tax Counsel to be due under this  paragraph 7 (together  with
     interest  thereon at a rate equal to 120% of the  Federal  short-term  rate
     determined   under  section  1274(d)  of  the  Code)  promptly  after  such
     determination.

<PAGE>

d.   The  determination  by Tax Counsel shall be conclusive and binding upon all
     parties  unless  the  Internal  Revenue  Service,   a  court  of  competent
     jurisdiction,  or such other duly empowered  governmental body or agency (a
     "Tax  Authority")  determines  that the Executive  owes a greater or lesser
     amount of Excise Tax with respect to any Payment than the amount determined
     by Tax Counsel.

e.   If a  Taxing  Authority  makes a claim  against  the  Executive  which,  if
     successful,  would  require  the  Company  to  make a  payment  under  this
     paragraph  7, the  Executive  agrees to  contest  the claim,  with  counsel
     reasonably  satisfactory to the Company,  on request of the Company subject
     to the following conditions:

          (i)  The  Executive  shall notify the Company of any such claim within
               10 days of becoming aware thereof.  In the event that the Company
               desires the claim to be contested,  it shall  promptly (but in no
               event more than 30 days after the notice  from the  Executive  or
               such  shorter  time  as the  Taxing  Authority  may  specify  for
               responding  to such claim)  request the  Executive to contest the
               claim.  The Executive shall not make any payment of any tax which
               is the subject of the claim  before the  Executive  has given the
               notice  or  during  the  30-day  period   thereafter  unless  the
               Executive receives written  instructions from the Company to make

               such payment together with an advance of funds sufficient to make
               the  requested  payment  plus  any  amounts  payable  under  this
               paragraph 7 determined  as if such advance were an Excise Tax, in
               which case the  Executive  will act promptly in  accordance  with
               such instructions.

          (ii) If the Company so requests,  the Executive will contest the claim
               by either  paying the tax  claimed  and suing for a refund in the
               appropriate  court or  contesting  the claim in the United States
               Tax Court or other appropriate court, as directed by the Company;
               provided,  however,  that  any  request  by the  Company  for the
               Executive to pay the tax shall be  accompanied by an advance from
               the  Company to the  Executive  of funds  sufficient  to make the
               requested payment plus any amounts payable under this paragraph 7
               determined  as if such advance were an Excise Tax. If directed by
               the  Company  in  writing  the  Executive  will  take all  action
               necessary to compromise or settle the claim, but in no event will
               the Executive  compromise or settle the claim or cease to contest
               the claim without the written  consent of the Company;  provided,
               however,  that the  Executive  may take  any such  action  if the
               Executive  waives in  writing  his right to a payment  under this
               paragraph  7 for any  amounts  payable  in  connection  with such
               claim.  The Executive  agrees to cooperate in good faith with the
               Company in contesting the claim and to comply with any reasonable
               request  from the  Company  concerning  the contest of the claim,
               including the pursuit of administrative remedies, the appropriate
               forum  for any  judicial  proceedings,  and the  legal  basis for
               contesting the claim. Upon request of the Company,  the Executive
               shall take  appropriate  appeals of any judgment or decision that
               would require the Company to make a payment under this  paragraph
               7.  Provided  that  the  Executive  is  in  compliance  with  the
               provisions of this  section,  the Company shall be liable for and
               indemnify the Executive  against any loss in connection with, and
               all costs and expenses,  including  attorneys' fees, which may be
               incurred as a result of,  contesting the claim, and shall provide
               to the  Executive  within  30 days  after  each  written  request
               therefor by the Executive cash advances or reimbursement  for all
               such costs and expenses actually incurred or reasonably  expected
               to be incurred by the  Executive  as a result of  contesting  the
               claim.

f.   Should a Tax Authority  finally  determine that an additional Excise Tax is
     owed,  then the  Company  shall  pay an  additional  Make-Up  Amount to the
     Executive in a manner  consistent with this paragraph 7 with respect to any
     additional Excise Tax and any assessed  interest,  fines, or penalties.  If
     any Excise Tax as calculated by the Company or Tax Counsel, as the case may
     be, is finally  determined by a Tax Authority to exceed the amount required
     to be paid under applicable law, then the Executive shall repay such excess
     to the Company  within 30 days of such  determination;  provided  that such
     repayment shall be reduced by the amount of any taxes paid by the Executive
     on such excess which is not offset by the tax benefit  attributable  to the
     repayment.

<PAGE>

8.  Outplacement  Services.  If the  Executive's  Termination  occurs during the
Employment  Period, at the election of the Executive,  the Company shall provide
the Executive with  outplacement  service of an experienced firm selected by the
Company and  acceptable to the Executive  located not more than fifty miles from
the location of Executive's  office  immediately prior to the Employment Period,
provided  that the cost of such  services  shall  not  exceed  $25,000  and such
services shall not extend beyond 24 months from Executive's Termination

9.  Pooling  of  Interests  Accounting  Treatment.  If  the  application  of any
provision of this Agreement, or of the Agreement in its entirety, would preclude
the  use  of  pooling  of  interests  accounting  treatment  with  respect  to a
transaction for which such treatment otherwise is available and to be adopted by
the Company,  this  Agreement,  upon the  determination  of the Board,  shall be
modified as it applies to such  transaction,  to the minimum extent necessary to
prevent such impact.

10.  Withholding.  All payments to the Executive  under this  Agreement  will be
subject to all applicable withholding of state and federal taxes.

11. Confidentiality,  Non-Solicitation and Non-Competition. The Executive agrees
that:

a.   Except  as may be  required  by the  lawful  order of a court or  agency of
     competent  jurisdiction,  or except to the extent  that the  Executive  has
     express authorization from the Company, the Executive agrees to keep secret
     and  confidential  indefinitely all non-public  information  concerning the
     Company or any affiliate  thereof which was acquired by or disclosed to the
     Executive during the course of the Executive's  employment with the Company
     or any affiliate thereof,  and not to disclose the same, either directly or
     indirectly,  to any other person,  firm or business  entity or to use it in
     any way.

b.   While the  Executive is employed by the Company or any  affiliate and for a
     period  of one year  after  the date of the  Executive's  Termination,  the
     Executive  covenants  and  agrees  that  Executive  will not,  whether  for
     Executive  or for any other  person,  business,  partnership,  association,
     firm,  company or corporation,  initiate contact with,  solicit,  divert or
     take away any of the  customers  (entities  or  individuals  from which the
     Company or any of its affiliates receives rents or payment for services) of
     the Company or any  affiliate  thereof or  employees  of the Company or any
     affiliate  thereof  in  existence  from  time  to time  during  Executive's
     employment  with the  Company or any  affiliate  thereof and at the time of
     such initiation, solicitation or diversion.

c.   While the Executive is employed by the Company or any entity  controlled by
     the Company and for a period of one year after Executive's Termination, the
     Executive  covenants  and  agrees  that  Executive  will not,  directly  or
     indirectly, engage in, assist, perform services for, plan for, establish or
     open,  or have any  financial  interest  (other than (i) ownership of 1% or
     less of the outstanding stock of any corporation  listed on the New York or
     American  Stock  Exchange  or  included  in  the  National  Association  of
     Securities  Dealers  Automated   Quotation  System  or  (ii)  ownership  of
     securities in any entity affiliated with the Company) in any person,  firm,
     corporation,  or business entity (whether as an employee, officer, director
     of  consultant)  that engages as its principal  business in the  operation,
     development,  management  or  financing of moderate  priced,  extended-stay
     lodging  facilities  that compete  directly  with the Company or any entity
     controlled by the Company.

<PAGE>

12.  Arbitration  of All Disputes.  Any  controversy  or claim arising out of or
relating to this Agreement or the breach thereof shall be settled by arbitration
in Chicago,  Illinois,  in accordance with the laws of the State of Illinois, by
three arbitrators  appointed by the parties.  If the parties cannot agree on the
appointment of the arbitrators, one shall be appointed by the Company and one by
the Executive and the third shall be appointed by the first two arbitrators.  If
the first two arbitrators cannot agree on the appointment of a third arbitrator,
then the third  arbitrator  shall be  appointed by the Chief Judge of the United
States  Court of Appeals  for the  Seventh  Circuit.  The  arbitration  shall be
conducted in accordance with the rules of the American Arbitration  Association,
except with respect to the selection of  arbitrators  which shall be as provided
in this paragraph 12. Judgment upon the award rendered by the arbitrators may be
entered in any court having jurisdiction  thereof. In the event that it shall be
necessary or desirable  for the Executive to retain legal counsel or incur other
costs and  expenses in  connection  with  enforcement  of his rights  under this
Agreement,  the Company shall pay (or the Executive shall be entitled to recover
from the Company,  as the case may be) his reasonable  attorneys' fees and costs
and  expenses  in  connection  with  enforcement  of his rights  (including  the
enforcement of any  arbitration  award in court).  Payments shall be made to the
Executive at the time such fees,  costs and expenses are incurred.  If, however,
the arbitrators  shall determine that, under the  circumstances,  payment by the
Company  of all or a part of any  such  fees and  costs  and  expenses  would be
unjust, the Executive shall repay such amounts to the Company in accordance with
the  order of the  arbitrators.  Any  award  of the  arbitrators  shall  include
interest  at a rate or rates  considered  just  under the  circumstances  by the
arbitrators.

13. Mitigation and Set-Off.  The Executive shall not be required to mitigate the
amount of any payment provided for in this Agreement by seeking other employment
or  otherwise.  The Company shall not be entitled to set off against the amounts
payable to the Executive under this Agreement any amounts owed to the Company by
the  Executive,  any amounts earned by the Executive in other  employment  after
termination of his employment with the Company,  or any amounts which might have
been  earned by the  Executive  in other  employment  had he sought  such  other
employment.

14.  Notices.  Any notice of  Termination of the  Executive's  employment by the
Company or the  Executive for any reason shall be upon no less than 15 days' and
no greater than 45 days' advance written notice to the other party. Any notices,
requests,  demand and other communications  provided for by this Agreement shall
be sufficient  if in writing and if sent by registered or certified  mail to the
Executive  at the last  address he has filed in writing  with the Company or, in
the case of the Company,  to the attention of the  Secretary of the Company,  at
its principal executive offices.

15.  Non-Alienation.   The  Executive  shall  not  have  any  right  to  pledge,
hypothecate,  anticipate  or in any way create a lien upon any amounts  provided
under this Agreement;  and no benefits payable  hereunder shall be assignable in
anticipation of payment either by voluntary or involuntary acts, or by operation
of law.  Nothing in this paragraph shall limit the Executive's  rights or powers
to  dispose  of his  property  by will or limit any  rights or powers  which his
executor or  administrator  would  otherwise have. This Agreement shall inure to
the  benefit  of and  be  enforceable  by  the  Executive's  personal  or  legal
representatives,  executors,  administrators,  successors,  heirs, distributees,
devisees,  and legatees.  If the Executive  should die while any amount is still
payable to the Executive hereunder had the Executive continued to live, all such
amounts  shall be paid in  accordance  with the terms of this  Agreement  to the
Executive's  devisee,  legatee,  or  other  designee,  or if  there  is no  such
designee, to the Executive's estate.

16.  Governing  Law.  The  provisions  of this  Agreement  shall be construed in
accordance  with  the laws of the  State of  Illinois,  without  application  of
conflict of laws provisions thereunder.

17. Amendment.  This Agreement may be amended or canceled by mutual agreement of
the parties in writing  without the consent of any other  person and, so long as
the Executive  lives, no person,  other than the parties hereto,  shall have any
rights under or interest in this Agreement or the subject matter hereof.

18. Successors to the Company. This Agreement shall be binding upon and inure to
the benefit of the Company and any  successor of the Company.  The Company shall
require  any  successor  (whether  direct  or  indirect,  by  purchase,  merger,
consolidation or otherwise) to all or  substantially  all of the business and/or
assets of the Company to expressly assume and agree to perform this Agreement in
the same manner and to the same  extent  that the  Company  would be required to
perform it if no succession had taken place.
<PAGE>

19.  Employment  Status.  Nothing herein  contained shall be deemed to create an
employment  agreement  between the Company and the Executive,  providing for the
employment  of the  Executive by the Company for any fixed  period of time.  The
Executive's  employment with the Company is terminable at will by the Company or
the  Executive  and each  shall  have the  right to  terminate  the  Executive's
employment with the Company at any time,  with or without Cause,  subject to (i)
the  notice  provisions  of  paragraphs  2, 5 and 14,  and  (ii)  the  Company's
obligation  to provide  severance  payments as required by  paragraph  6. Upon a
termination  of the  Executive's  employment  prior to the  date of a Change  in
Control, there shall be no further rights under this Agreement.

20.  Severability.  In the event that any provision or portion of this Agreement
shall be determined to be invalid or unenforceable for any reason, the remaining
provisions of this  Agreement  shall be  unaffected  thereby and shall remain in
full force and effect.

21.  Counterparts.  This Agreement may be executed in two or more  counterparts,
any one of which shall be deemed the original without reference to the others.

         IN  WITNESS  WHEREOF,  the  Executive  has  hereunto  set his hand and,
pursuant  to the  authorization  from its Board of  Directors,  the  Company has
caused  these  presents to be executed in its name and on its behalf,  all as of
the day and year first above written.

                              /s/  J.C. Potts
                                ------------------------------------------
                                 James C. Potts

                                 HOMESTEAD VILLAGE INCORPORATED

                              /s/ John R. Patterson
                                 ------------------------------------------
                                 By:  John R. Patterson
                                 Its: Senior Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00009-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00009-of-00352.parquet"}]]