Document:

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                                                                     EXHIBIT 4.8

                              ACTIVE SOFTWARE, INC.

                        1999 EMPLOYEE STOCK PURCHASE PLAN

       The following constitute the provisions of the 1999 Employee Stock
Purchase Plan of Active 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. It is the intention of the Company to have the Plan
qualify as an "Employee Stock Purchase Plan" under Section 423 of the Code. The
provisions of the Plan shall, accordingly, 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" means the Board of Directors of the Company.

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

              (c)    "COMMON STOCK" means the Common Stock of the Company.

              (d)    "COMPANY" means Active Software, Inc., a Delaware
corporation.

              (e)    "COMPENSATION" means all regular straight time gross
earnings, commissions and bonuses and shall not include payments for overtime,
shift premium, other incentive payments or other compensation.

              (f)    "CONTINUOUS STATUS AS AN EMPLOYEE" means the absence of any
interruption or termination of service as an Employee. Continuous Status as an
Employee shall not be considered interrupted in the case of (i) sick leave; (ii)
military leave; (iii) any other leave of absence approved by the Administrator,
provided that such leave is for a period of not more than 90 days, unless
reemployment upon the expiration of such leave is guaranteed by contract or
statute, or unless provided otherwise pursuant to Company policy adopted from
time to time; or (iv) in the case of transfers between locations of the Company
or between the Company and its Designated Subsidiaries.

              (g)    "CONTRIBUTIONS" means all amounts credited to the account
of a participant pursuant to the Plan.

              (h)    "CORPORATE TRANSACTION" means a sale of all or
substantially all of the Company's assets, or a merger, consolidation or other
capital reorganization of the Company with or into another corporation, or any
other transaction or series of related transactions in which the Company's
stockholders immediately prior thereto own less than 50% of the voting stock of
the Company (or its successor or parent) immediately thereafter.

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              (i)    "DESIGNATED SUBSIDIARIES" means the Subsidiaries which have
been designated by the Board from time to time in its sole discretion as
eligible to participate in the Plan; provided however that the Board shall only
have the discretion to designate Subsidiaries if the issuance of options to such
Subsidiary's Employees pursuant to the Plan would not cause the Company to incur
adverse accounting charges.

              (j)    "EMPLOYEE" means any person, including an Officer, who is
customarily employed for at least twenty (20) hours per week and more than five
(5) months in a calendar year by the Company or one of its Designated
Subsidiaries.

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

              (l)    "OFFERING DATE" means the first business day of each
Offering Period of the Plan.

              (m)    "OFFERING PERIOD" means a period of twenty-four (24) months
commencing on May 1 and November 1 of each year, except for the first Offering
Period as set forth in Section 4(a).

              (n)    "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.

              (o)    "PLAN" means this Employee Stock Purchase Plan.

              (p)    "PURCHASE DATE" means the last day of each Purchase Period
of the Plan.

              (q)    "PURCHASE PERIOD" means a period of six (6) months within
an Offering Period, except for the Purchase Periods in the first Offering Period
as set forth in Section 4(b).

              (r)    "PURCHASE PRICE" means with respect to a Purchase Period an
amount equal to 85% of the Fair Market Value (as defined in Section 7(b) below)
of a Share of Common Stock on the Offering Date or on the Purchase Date,
whichever is lower; provided, however, that in the event (i) of any increase in
the number of Shares available for issuance under the Plan (including without
limitation an automatic increase pursuant to Section 13(a) below or as a result
of a stockholder-approved amendment to the Plan), and (ii) all or a portion of
such additional Shares are to be issued with respect to one or more Offering
Periods that are underway at the time of such increase ("Additional Shares"),
and (iii) the Fair Market Value of a Share of Common Stock on the date of such
increase (the "Approval Date Fair Market Value") is higher than the Fair Market
Value on the Offering Date for any such Offering Period, then in such instance
the Purchase Price with respect to Additional Shares shall be 85% of the
Approval Date Fair Market Value or the Fair Market Value of a Share of Common
Stock on the Purchase Date, whichever is lower.

              (s)    "SHARE" means a share of Common Stock, as adjusted in
accordance with Section 19 of the Plan.

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              (t)    "SUBSIDIARY" means 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.

       3.     ELIGIBILITY.

              (a)    Any person who is an Employee as of the Offering Date of a
given Offering Period shall be eligible to participate in such Offering Period
under the Plan, subject to the requirements of Section 5(a) and the limitations
imposed by Section 423(b) of the Code; provided however that eligible Employees
may not participate in more than one Offering Period at a time.

              (b)    Any provisions of the Plan to the contrary notwithstanding,
no Employee shall be granted an option under the Plan (i) if, 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 stock possessing five
percent (5%) or more of the total combined voting power or value of all classes
of stock of the Company or of any subsidiary of the Company, or (ii) if such
option would permit his or her rights to purchase stock under all employee stock
purchase plans (described in Section 423 of the Code) of the Company and its
Subsidiaries to accrue at a rate which exceeds Twenty-Five Thousand Dollars
($25,000) of the Fair Market Value (as defined in Section 7(b) below) of such
stock (determined at the time such option is granted) for each calendar year in
which such option is outstanding at any time.

       4.     OFFERING PERIODS AND PURCHASE PERIODS.

              (a)    OFFERING PERIODS. The Plan shall generally be implemented
by a series of Offering Periods of twenty-four (24) months' duration, with new
Offering Periods (other than the first Offering Period) commencing on or about
May 1 and November 1 of each year (or at such other time or times as may be
determined by the Board of Directors). The first Offering Period shall commence
on the beginning of the effective date of the Registration Statement on Form S-1
for the initial public offering of the Company's Common Stock (the "IPO Date")
and continue until October 31, 2001. The Plan shall continue until terminated in
accordance with Section 19 hereof. The Board of Directors of the Company shall
have the power to change the duration and/or the frequency of Offering Periods
with respect to future offerings without stockholder approval if such change is
announced at least five (5) days prior to the scheduled beginning of the first
Offering Period to be affected.

              (b)    PURCHASE PERIODS. Each Offering Period shall generally
consist of four (4) consecutive purchase periods of six (6) months' duration.
The last day of each Purchase Period shall be the "Purchase Date" for such
Purchase Period. A Purchase Period commencing on May 1 shall end on the next
October 31. A Purchase Period commencing on November 1 shall end on the next
April 30. The first Purchase Period of the first Offering Period shall commence
on the IPO Date and shall end on April 30, 2000 with subsequent Purchase Periods
ending on October 31, 2000, April 30, 2001 and October 31, 2001. The Board of
Directors of the Company shall have the power to change the duration and/or
frequency of Purchase Periods with respect to

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future purchases without stockholder approval if such change is announced at
least five (5) days prior to the scheduled beginning of the first Purchase
Period to be affected.

       5.     PARTICIPATION.

              (a)    An eligible Employee may become a participant in the Plan
by completing a subscription agreement on the form provided by the Company and
filing it with the Company's payroll office prior to the applicable Offering
Date, unless a later time for filing the subscription agreement is set by the
Board for all eligible Employees with respect to a given Offering Period. The
subscription agreement shall set forth the percentage of the participant's
Compensation (subject to Section 6(a) below) to be paid as Contributions
pursuant to the Plan.

              (b)    Payroll deductions shall commence on the first payroll
following the Offering Date and shall end on the last payroll paid on or prior
to the last Purchase Period of the Offering Period to which the subscription
agreement is applicable, unless sooner terminated by the participant as provided
in Section 10.

       6.     METHOD OF PAYMENT OF CONTRIBUTIONS.

              (a)    A participant shall elect to have payroll deductions made
on each payday during the Offering Period in an amount not less than one percent
(1%) and not more than twenty percent (20%) (or such other percentage as the
Board may establish from time to time before an Offering Date) of such
participant's Compensation on each payday during the Offering Period. All
payroll deductions made by a participant shall be credited to his or her account
under the Plan. A participant may not make any additional payments into such
account.

              (b)    A participant may discontinue his or her participation in
the Plan as provided in Section 10, or, on one occasion only during each
Purchase Period may either increase or decrease the rate of his or her
Contributions with respect to the Purchase Period by completing and filing with
the Company a new subscription agreement authorizing a change in the payroll
deduction rate. The change in rate shall be effective as of the beginning of the
next calendar month following the date of filing of the new subscription
agreement, if the agreement is filed at least ten (10) business days prior to
such date and, if not, as of the beginning of the next succeeding calendar
month.

              (c)    Notwithstanding the foregoing, to the extent necessary to
comply with Section 423(b)(8) of the Code and Section 3(b) herein, a
participant's payroll deductions may be decreased by the Company to 0% at any
time during a Purchase Period. Payroll deductions shall re-commence 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.

       7.     GRANT OF OPTION.

              (a)    On the Offering Date of each Offering Period, each eligible
Employee participating in such Offering Period shall be granted an option to
purchase on each Purchase

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Date a number of Shares of the Company's Common Stock determined by dividing
such Employee's Contributions accumulated prior to such Purchase Date and
retained in the participant's account as of the Purchase Date by the applicable
Purchase Price; provided however that the maximum number of Shares an Employee
may purchase during each Purchase Period shall be 1,000 Shares (subject to any
adjustment pursuant to Section 19 below), and provided further that such
purchase shall be subject to the limitations set forth in Sections 3(b) and 13.

              (b)    The fair market value of the Company's Common Stock on a
given date (the "Fair Market Value") shall be determined by the Board in its
discretion based on the closing sales price of the Common Stock for such date
(or, in the event that the Common Stock is not traded on such date, on the
immediately preceding trading date), as reported by the National Association of
Securities Dealers Automated Quotation (Nasdaq) National Market or, if such
price is not reported, the mean of the bid and asked prices per share of the
Common Stock as reported by Nasdaq or, in the event the Common Stock is listed
on a stock exchange, the Fair Market Value per share shall be the closing sales
price on such exchange on such date (or, in the event that the Common Stock is
not traded on such date, on the immediately preceding trading date), as reported
in The Wall Street Journal. For purposes of the Offering Date under the first
Offering Period under the Plan, the Fair Market Value of a share of the Common
Stock of the Company shall be the Price to Public as set forth in the final
prospectus filed with the Securities and Exchange Commission pursuant to Rule
424 under the Securities Act of 1933, as amended.

       8.     EXERCISE OF OPTION. Unless a participant withdraws from the Plan
as provided in Section 10, his or her option for the purchase of Shares will be
exercised automatically on each Purchase Date of an Offering Period, and the
maximum number of full Shares subject to the option will be purchased at the
applicable Purchase Price with the accumulated Contributions in his or her
account. No fractional Shares shall be issued. The Shares purchased upon
exercise of an option hereunder shall be deemed to be transferred to the
participant on the Purchase Date. During his or her lifetime, a participant's
option to purchase Shares hereunder is exercisable only by him or her.

       9.     DELIVERY. As promptly as practicable after each Purchase Date of
each Offering Period, 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. 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 below. Any other amounts left over in a participant's account after a
Purchase Date shall be returned to the participant.

       10.    VOLUNTARY WITHDRAWAL; TERMINATION OF EMPLOYMENT.

              (a)    A participant may withdraw all but not less than all the
Contributions credited to his or her account under the Plan at any time prior to
each Purchase Date by giving written notice to the Company. All of the
participant's Contributions credited to his or her account will be paid to him
or her promptly after receipt of his or her notice of withdrawal and

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his or her option for the current period will be automatically terminated, and
no further Contributions for the purchase of Shares will be made during the
Offering Period.

              (b)    Upon termination of the participant's Continuous Status as
an Employee prior to the Purchase Date of an Offering Period for any reason,
including retirement or death, the Contributions credited to his or her account
will be returned to him or her or, in the case of his or her death, to the
person or persons entitled thereto under Section 14, and his or her option will
be automatically terminated.

              (c)    In the event an Employee fails to remain in Continuous
Status as an Employee of the Company for at least twenty (20) hours per week
during the Offering Period in which the employee is a participant, he or she
will be deemed to have elected to withdraw from the Plan and the Contributions
credited to his or her account will be returned to him or her and his or her
option terminated.

              (d)    A participant's withdrawal from an offering will not have
any effect upon his or her eligibility to participate in a succeeding offering
or in any similar plan which may hereafter be adopted by the Company.

       11.    AUTOMATIC WITHDRAWAL. If the Fair Market Value of the Shares on
any Purchase Date of an Offering Period is less than the Fair Market Value of
the Shares on the Offering Date for such Offering Period, then every participant
shall automatically (i) be withdrawn from such Offering Period at the close of
such Purchase Date and after the acquisition of Shares for such Purchase Period,
and (ii) be enrolled in the Offering Period commencing on the first business day
subsequent to such Purchase Period. Participants shall automatically be
withdrawn as of October 31, 1999 from the Offering Period beginning on the IPO
Date and re-enrolled in the Offering Period beginning on November 1, 1999 if the
Fair Market Value of the Shares on the IPO Date is greater than the Fair Market
Value of the Shares on October 31, 1999, unless a participant notifies the
Administrator prior to October 31, 1999 that he or she does not wish to be
withdrawn and re-enrolled.

       12.    INTEREST.  No interest shall accrue on the Contributions of a
participant in the Plan.

       13.    STOCK.

              (a)    Subject to adjustment as provided in Section 19, the
maximum number of Shares which shall be made available for sale under the Plan
shall be 750,000 Shares, plus an automatic annual increase on July 1 of each of
the following years: 2000, 2001, 2002, 2003 and 2004, in an amount equal to the
lesser of (i) 350,000 Shares, or (ii) one percent (1%) of the Shares outstanding
on the last day of the immediately preceding fiscal year. If the Board
determines that, on a given Purchase 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 Offering Date of the
applicable Offering Period, or (ii) the number of shares available for sale
under the Plan on such Purchase Date, the Board may in its sole discretion
provide (x) that the Company shall make a pro rata allocation of the Shares of

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Common Stock available for purchase on such Offering Date or Purchase 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 Purchase Date, and continue
all Offering Periods then in effect, or (y) that the Company shall make a pro
rata allocation of the shares available for purchase on such Offering Date or
Purchase 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 Purchase Date,
and terminate any or all Offering Periods then in effect pursuant to Section 20
below. The Company may make pro rata allocation of the Shares available on the
Offering 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 Offering Date.

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

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

       14.    ADMINISTRATION. The Board, or a committee named by the Board,
shall supervise and administer the Plan and shall have full power to adopt,
amend and rescind any rules deemed desirable and appropriate for the
administration of the Plan and not inconsistent with the Plan, to construe and
interpret the Plan, and to make all other determinations necessary or advisable
for the administration of the Plan.

       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 the end of a Purchase Period but prior to delivery to him or her
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 the
Purchase Date of an Offering Period. 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 (and his or her spouse, if any) 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.

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       16.    TRANSFERABILITY. Neither Contributions 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) 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 in
accordance with Section 10.

       17.    USE OF FUNDS. All Contributions 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 Contributions.

       18.    REPORTS. Individual accounts will be maintained for each
participant in the Plan. Statements of account will be given to participating
Employees at least annually, which statements will set forth the amounts of
Contributions, the per Share Purchase Price, the number of Shares purchased and
the remaining cash balance, if any.

       19.    ADJUSTMENTS UPON CHANGES IN CAPITALIZATION; CORPORATE
              TRANSACTIONS.

              (a)    ADJUSTMENT. Subject to any required action by the
stockholders of the Company, the number of Shares covered by each option under
the Plan which has not yet been exercised and the number of Shares which have
been authorized for issuance under the Plan but have not yet been placed under
option (collectively, the "Reserves"), as well as the maximum number of shares
of Common Stock which may be purchased by a participant in a Purchase Period,
the number of shares of Common Stock set forth in Section 13(a)(i) above, and
the price per Share 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 resulting from a stock split, reverse
stock split, stock dividend, combination or reclassification of the Common Stock
(including any such change in the number of Shares of Common Stock effected in
connection with a change in domicile of the Company), or any other increase or
decrease in the number of Shares 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 issue 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 subject to an option.

              (b)    CORPORATE TRANSACTIONS. In the event of a dissolution or
liquidation of the Company, any Purchase Period and Offering Period then in
progress will terminate immediately prior to the consummation of such action,
unless otherwise provided by the Board. In the event of a Corporate Transaction,
each option outstanding under the Plan shall be assumed or an equivalent option
shall be substituted by the successor corporation or a parent or Subsidiary of
such successor corporation. In the event that the successor corporation refuses
to assume or substitute for outstanding options, each Purchase Period and
Offering Period then in progress shall be shortened and a new Purchase Date
shall be set (the "New Purchase Date"), as of which

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date any Purchase Period and Offering Period then in progress will terminate.
The New Purchase Date shall be on or before the date of consummation of the
transaction and the Board shall notify each participant in writing, at least ten
(10) days prior to the New Purchase Date, that the Purchase Date for his or her
option has been changed to the New Purchase Date and that his or her option will
be exercised automatically on the New Purchase Date, unless prior to such date
he or she has withdrawn from the Offering Period as provided in Section 10. For
purposes of this Section 19, an option granted under the Plan shall be deemed to
be assumed, without limitation, if, at the time of issuance of the stock or
other consideration upon a Corporate Transaction, each holder of an option under
the Plan would be entitled to receive upon exercise of the option the same
number and kind of shares of stock or the same amount of property, cash or
securities as such holder would have been entitled to receive upon the
occurrence of the transaction if the holder had been, immediately prior to the
transaction, the holder of the number of Shares of Common Stock covered by the
option at such time (after giving effect to any adjustments in the number of
Shares covered by the option as provided for in this Section 19); provided
however that if the consideration received in the transaction is not solely
common stock of the successor corporation or its parent (as defined in Section
424(e) of the Code), the Board may, with the consent of the successor
corporation, provide for the consideration to be received upon exercise of 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 transaction.

       The Board may, if it so determines in the exercise of its sole
discretion, also make provision for adjusting the Reserves, as well as the price
per Share of Common Stock covered by each outstanding option, in the event that
the Company effects one or more reorganizations, recapitalizations, rights
offerings or other increases or reductions of Shares of its outstanding Common
Stock, and in the event of the Company's being consolidated with or merged into
any other corporation.

       20.    AMENDMENT OR TERMINATION.

              (a)    The Board may at any time and for any reason terminate or
amend the Plan. Except as provided in Section 19, no such termination of the
Plan may affect options previously granted, provided that the Plan or an
Offering Period may be terminated by the Board on a Purchase Date or by the
Board's setting a new Purchase Date with respect to an Offering Period and
Purchase Period then in progress if the Board determines that termination of the
Plan and/or the Offering Period is in the best interests of the Company and the
stockholders or if continuation of the Plan and/or the Offering Period would
cause the Company to incur adverse accounting charges as a result of a change
after the effective date of the Plan in the generally accepted accounting rules
applicable to the Plan. Except as provided in Section 19 and in this Section 20,
no amendment to the Plan shall make any change in any option previously granted
which adversely affects the rights of any participant. In addition, to the
extent necessary to comply with Rule 16b-3 under the Exchange Act, or under
Section 423 of the Code (or any successor rule or provision or any applicable
law or regulation), the Company shall obtain stockholder approval in such a
manner and to such a degree as so required.

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              (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 and
Purchase 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.

       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.

       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 Exchange Act, the rules and regulations
promulgated thereunder, applicable state securities laws 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; EFFECTIVE DATE. The Plan shall become effective upon
the IPO Date. It shall continue in effect for a term of twenty (20) years unless
sooner terminated under Section 20.

       24.    ADDITIONAL RESTRICTIONS OF RULE 16b-3. The terms and conditions of
options granted hereunder to, and the purchase of Shares by, persons subject to
Section 16 of the Exchange Act shall comply with the applicable provisions of
Rule 16b-3. This Plan shall be deemed to contain, and such options shall
contain, and the Shares issued upon exercise thereof shall be subject to, such
additional conditions and restrictions as may be required by Rule 16b-3 to
qualify for the maximum exemption from Section 16 of the Exchange Act with
respect to Plan transactions.

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                                                                     EXHIBIT 4.9

                           TRANSLINK SOFTWARE, INC.
                               STOCK OPTION PLAN
                               -----------------

Section 1.  Purpose:
- --------------------

        The purpose of the TransLink Software, Inc., Stock Option Plan (this
"Plan") is to provide a means whereby selected employees, directors, officers,
agents, consultants, advisors and independent contractors of TransLink Software,
Inc. (the "Company"), or of any parent or subsidiary (as defined in Subsection
5.8 and referred to hereinafter as "related corporations") thereof, may be
granted incentive stock options and/or nonqualified stock options to purchase
the Common Stock (as defined in Section 3) of the Company, in order to attract
and retain the services or advice of such employees, directors, officers,
agents, consultants, advisors and independent contractors and to provide added
incentive to such persons by encouraging stock ownership in the Company.

Section 2.  Administration:
- --------------------------

        This Plan shall be administered by the Board of Directors of the Company
(the "Board") or, in the event the Board shall appoint and/or authorize a
committee to administer this Plan, by such committee. The administrator of this
Plan shall hereinafter to be referred to as the "Plan Administrator."

        In the event a member of the Plan Administrator may be eligible, subject
to the restrictions set forth in Section 4, to participate in this Plan, no
member of the Plan Administrator shall vote with respect to the granting of an
option hereunder to himself or herself, as the case may be, and, if state
corporate law does not permit a committee to grant options to directors, then
any option granted under this Plan to a director for his or her services as such
shall be approved by the full Board.

        The members of any committee serving as Plan Administrator shall be
appointed by the Board of such term as the Board may determine. The Board may
from time-to-time remove members from, or add members to, the committee.
Vacancies on the committee, however caused, shall be filled by the Board.

        With respect to grants made under this Plan to individuals who are
subject to Section 16 of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), the Plan Administrator shall be constituted at all times so as
to meet the requirements of Rule 16b-3 promulgated under Section 16(b) of the
Exchange Act if any of the Company's equity securities are registered pursuant
to Section 12(b) or 12(g) of the Exchange Act.

                                       1
<PAGE>   2

          2.1  Procedures:  The Board shall designate one of the members of
               ----------
the Plan Administrator as chairman. The Plan Administrator may hold meetings at
such times and places as it shall determine. The acts of a majority of the
members of the Plan Administrator present at meetings at which a quorum exists,
or acts reduced to or approved in writing by all Plan Administrator members,
shall be valid acts of the Plan Administrator.

          2.2  Responsibilities:  Except for the terms and conditions
               ----------------
explicitly set forth in this Plan, the Plan Administrator shall have the
authority, in its discretion, to determine all matters relating to the options
to be granted under this Plan, including selection of the individuals to be
granted options, the number of shares to be subject to each option, the exercise
price, and all other terms and conditions of the options. Grants under this Plan
need not be identical in any respect even when made simultaneously. The
interpretation and construction by the Plan Administrator of any terms or
provisions of this Plan or any option issued hereunder, or of any rule or
regulation promulgated in connection herewith shall be conclusive and binding on
all interested parties, so long as such interpretation and construction with
respect to incentive stock options correspond to the requirements of Section 422
of the Internal Revenue Code of 1986, as amended (the "Code"), the regulations
thereunder and any amendments thereto.

          2.3  Rule 16b-3 Compliance and Bifurcation of Plan:  It is the
               ---------------------------------------------
intention of the Company that, if any of the Company's equity securities are
registered pursuant to Section 12(b) or 12(g) of the Exchange Act, this Plan
shall comply in all respects with Rule 16b-3 under the Exchange Act. If any Plan
provision is later found not to be in compliance with such Section, the
provision shall be deemed null and void, and in all events this Plan shall be
construed in favor of its meeting the requirements of Rule 16b-3.
Notwithstanding anything in this Plan to the contrary, the Board, in its
absolute discretion, may bifurcate this Plan so as to restrict, limit or
condition the application of any provision of this Plan to participants who are
subject to Section 16 of the Exchange Act without so restricting, limiting or
conditioning this Plan with respect to other participants.

Section 3.  Shares Subject to This Plan:
- ----------------------------------------

        The shares subject to this Plan shall be the Company's Class A Voting
Common Stock (the "Common Stock"), currently authorized but unissued or
subsequently acquired by the Company. Subject to adjustment as provided in
Section 7, the aggregate amount of Common Stock to be delivered upon the
exercise of all options granted under this Plan shall not exceed nine hundred
forty thousand (940,000) shares, as such Common Stock was constituted on the
effective date of this Plan. If any option granted under this Plan shall expire
or be surrendered, exchanged for another option, canceled or terminated for any
reason without having been exercised in full, the unpurchased shares subject
thereto shall thereupon again be available for purposes of this Plan, including
for replacement options which may be granted in exchange for such expired,
surrendered, exchanged, canceled or terminated options.

Section 4.  Eligibility:
- ------------------------

        An incentive stock option may be granted only to an individual who, at
the time the option is granted, is an employee of the Company or a related
corporation. A nonqualified stock

                                       2
<PAGE>   3

option may be granted to any employee, director, officer, agent, consultant,
advisor or independent contractor of the Company or any related corporation,
whether an individual or an entity. Any part to whom an option is granted under
this Plan shall be referred to hereinafter as an "Optionee."

Section 5.  Terms and Conditions of Options:
- --------------------------------------------

        Options granted under this Plan shall be evidenced by written agreements
which shall contain such terms, conditions, limitations and restrictions as the
Plan Administrator shall deem advisable and which are not inconsistent with this
Plan. Notwithstanding the foregoing, options shall include or incorporate by
reference the following terms and conditions:

     5.1  Number of Shares and Price:  Of the options available hereunder for
          --------------------------
the maximum number of shares prescribed herein, an option to acquire one hundred
thousand (100,000) shares shall be granted to JOHN S. WIBORG ("Wiborg Options").
Except as modified by the provisions of Section 6 hereof, which provisions shall
be controlling, the Wiborg Options shall be subject to the terms and conditions
of this Section 5. Of the remaining eight hundred forty thousand (840,000)
shares authorized to be issued pursuant to options granted under this Plan, the
maximum number of shares that may be purchased pursuant to the exercise of each
such option shall be as established by the Plan Administrator. As to all options
except the Wiborg Options, the price per share (the "Exercise Price") shall be
equal to the fair market value for such shares on the date each option is
granted, which fair market value shall be determined by the Board of Directors
of the Company. Notwithstanding the foregoing, the Exercise Price shall not be
less than twenty-seven cents ($0.27) per share.

     5.2  Term and Maturity:  Subject to the provisions contained in Section 6
          -----------------
with respect to the Wiborg Options, the term of each stock option shall be ten
years from the date it is granted. To ensure that the Company or a related
corporation will achieve the purpose and receive the benefits contemplated by
this Plan, but excluding the Wiborg Options which are exercisable in accordance
with Section 6, any option granted to Optionee hereunder shall, unless the
condition of this sentence is waived or modified in the agreement evidencing the
option or by resolution adopted at any time by the Plan Administrator, be
exercisable as follows:

                                                   Portion of Total Option
                                                     Which Is Exercisable
           Period of Optionee's Continuous           --------------------
          Relationship With the Company or
         Related Corporation From the Date
              the Option Is Granted
         ---------------------------------
            after one year                                25  %
            after one year six months                     37.5%
            after two year                                50  %
            after two years six months                    62.5%
            after three years                             75  %
            after three years six months                  87.5%
            after four years                              100 %

                                       3
<PAGE>   4

     5.3  Exercise:  Subject to the vesting schedule described in Subsection
          ---------
5.2 (or in Subsection 6.1 as to the Wiborg Options), each option may be
exercised in whole or in part at any time and from time-to-time; provided,
however, that no fewer than one hundred (100) shares (or the remaining shares
then purchasable under the option, if less than one hundred (100) shares) may be
purchased upon any exercise of option hereunder and that only whole shares will
be issued pursuant to the exercise of any option. An Option shall be exercised
by delivery to the Company of notice of the number of shares with respect to
which the option is exercised, together with payment of the exercise price.

     5.4  Payment of Exercise Price:  Payment of the option exercise price
          -------------------------
shall be made in full at the time the notice of exercise of the option is
delivered to the Company and shall be in cash, bank certified or cashier's
check, or personal check ( unless at the time of exercise the Plan Administrator
in a particular case determines not to accept a personal check) for the shares
being purchased.

     The Plan Administrator can determine at any time before exercise that
additional forms of payment will be permitted. To the extent permitted by the
Plan Administrator and applicable laws and regulations (including, but not
limited to, federal tax and securities laws and regulations and state corporate
law), an option may be exercised by delivery of shares of Common Stock of the
Company held by an Optionee having a fair market value equal to the exercise
price, such fair market value to be determined in good faith by the Plan
Administrator; provided, however, that payment in stock held by an Optionee
shall not be made unless the stock shall have been owned by the Optionee for a
period of at least six (6) months.

     5.5  Withholding Tax Requirement:  The Company or any related corporation
          ---------------------------
shall have the right to retain and withhold from any payment of cash or shares
of Common Stock under this Plan the amount of taxes required by any government
to be withheld or otherwise deducted and paid with respect to such payment. At
its discretion, the Company may require an Optionee receiving shares of Common
Stock to reimburse the Company for any such taxes required to be withheld by the
Company and withhold any distribution in whole or in part until the Company is
so reimbursed. In lieu thereof, the Company shall have the right to withhold
from any other cash amounts due or to become due from the Company to the
Optionee an amount equal to such taxes. The Company may also retain and withhold
or the Optionee may elect subject to approval by the Company at its sole
discretion, to have the Company retain and withhold a number of shares having a
market value not less than the amount of such taxes required to be withheld by
the Company to reimburse the Company for any such taxes and cancel (in whole or
in part) any such shares so withheld. In order to qualify such election for
exemption under Rule 16b-3 promulgated under Section 16(b) of the Exchange Act
any individual who is subject to Section 16 under the Exchange Act must exercise
the option during the quarterly ten (10) day window period required under
Section 16(b) of the Exchange Act for exercises of stock appreciation rights,
and the election relating to such option exercise must be (i) an irrevocable
election made six (6) months prior to the date the option exercise becomes
taxable; (ii) an election that is made during a window period; or (iii) an
election that is made prior to a window period, provided the election becomes
effective as of the next window period.

     5.6  Holding Periods:
          ---------------

                                       4
<PAGE>   5

          5.6.1  Securities and Exchange Act Section 16:  If an individual
                 --------------------------------------
subject to Section 16 of the Exchange Act sells shares of Common Stock obtained
upon the exercise of a stock option within six (6) months after the date the
option was granted, such sale may result in short-swing profit recovery under
Section 16(b) of the Exchange Act.

          5.6.2  Taxation of Stock Options:  In order to obtain certain tax
                 -------------------------
benefits afforded to incentive stock options under Section 422 of the Code, an
Optionee must hold the shares issued upon the exercise of an incentive stock
option for two (2) years after the date of grant of the option and one (1) year
from the date of exercise. An Optionee may be subject to the alternative minimum
tax at the time of exercise of an incentive stock option.

     The Plan Administrator may require an Optionee to give the Company prompt
notice of any disposition of shares acquired by the exercise of an incentive
stock option prior to the expiration of such holding periods.

     Tax advice should be obtained by an Optionee when exercising any option and
prior to the disposition of the shares issued upon the exercise of any option.

     5.7  Transferability of Options:  Options granted under this Plan and the
          --------------------------
rights and privileges conferred hereby may not be transferred, assigned, pledged
or hypothecated in any manner (whether by operation of law or otherwise) other
than by will or by the applicable laws of descent and distribution and shall not
be subject to execution, attachment or similar process. During an Optionee's
lifetime, any options granted under this Plan are personal to him or her and are
exercisable solely by such Optionee. Any attempt to transfer, assign, pledge,
hypothecate or otherwise dispose of any option under this Plan or of any right
or privilege conferred hereby, contrary to the Code or to the provisions if this
Plan, or the sale or levy or any attachment or similar process upon the rights
and privileges conferred hereby shall be null and void. Notwithstanding the
foregoing, to the extent permitted by Rule 16b-3 under the Exchange Act and
other applicable law and regulation, the Plan Administrator may permit an
Optionee to (i) during the Optionee's lifetime, designate a person who may
exercise the option after the Optionee's death by giving written notice of such
designation to the Company (such designation may be changed from time-to-time by
the Optionee by giving written notice to the Company revoking any earlier
designation and making a new designation) or (ii) with respect to nonqualified
stock options, transfer the option and the rights and privileges conferred
hereby.

     5.8  Termination of Relationship:  If the Optionee's relationship with the
          ---------------------------
Company or any related corporation ceases for any reason other than termination
for cause, death or total disability, and unless by its terms the option sooner
terminates or expires, then the Optionee may exercise, for a thirty (30) day
period, that portion of the Optionee's option which is exercisable at the time
of such cessation, but the Optionee's option shall terminate at the end of such
period following such cessation as to all shares for which it has not
theretofore been exercised, unless such provision is waived in the agreement
evidencing the option. If, in the case of an incentive stock option, an
Optionee's relationship with the Company or any related corporation changes
(i.e., from employee to nonemployee, such as a consultant), such change shall
constitute a termination of an Optionee's employment with the Company or any
related corporation and the

                                       5
<PAGE>   6

Optionee's incentive stock option shall terminate in accordance with this
Subsection 5.8. Upon the expiration of the three (3) month period following
cessation of employment in the case of an incentive stock option, or at any time
prior to the expiration of the option in the case of a nonqualified stock
option, the Plan Administrator shall have sole discretion in a particular
circumstance to extend the exercise period following such cessation to any date
up to the termination or expiration of the option. If, however, in the case of
an incentive stock option, the Optionee does not exercise the Optionee's option
within three (3) months after cessation of employment, the option will no longer
qualify as an incentive stock option under the Code.

     If an Optionee is terminated for cause, each option granted hereunder shall
automatically terminate as of the first discovery by the Company of any reason
for termination for cause, and such Optionee shall thereupon have no right to
purchase any shares pursuant to such option. "Termination for cause" shall mean,
including the meaning given such term or similar term in any employment
agreement to which the terminated Optionee is subject, dismissal for dishonesty,
conviction or confession of a crime (except minor violations), fraud, misconduct
or disclosure of confidential information. If an Optionee's relationship with
the Company or any related corporation is suspended pending an investigation of
whether or not the Optionee shall be terminated for cause, the Optionee's rights
under each option granted hereunder likewise shall be suspended during the
period of investigation.

     If an Optionee's relationship with the Company or any related corporation
ceases because of a total disability, the Optionee's option shall not terminate
or, in the case of an incentive stock option, cease to be treated as an
incentive stock option until the end of the twelve (12) month period following
such cessation (unless by its terms it sooner terminates or expires). As used in
this Plan, the term "total disability" refers to a mental or physical impairment
of the Optionee which is expected to result in death or which has lasted or is
expected to last for a continuous period of twelve (12) months or more and which
causes the Optionee to be unable, in the opinion of the Company and one (1)
independent physician or other qualified health care professional, to perform
his or her duties for the Company and to be engaged in any substantial gainful
activity. Total disability shall be deemed to have occurred on the first day
after the Company and the independent physician have asserted their opinion of
total disability to the Plan Administrator.

     Options granted under the Plan shall not be affected by any change of
relationship with the Company so long as the Optionee continues to be an
employee, director, officer, agent, consultant, advisor or independent
contractor of the Company or of a related corporation; however, a change in an
Optionee's status from an employee to a nonemployee (e.g., consultant or
independent contractor) shall result in the termination of an outstanding
incentive stock option held by such Optionee. The Plan Administrator, in its
absolute discretion, may determine all questions of whether particular leaves of
absence constitute a termination of services; provided, however, that with
respect to incentive stock options, such determination shall be subject to any
requirements contained in the Code. The foregoing notwithstanding, with respect
to incentive stock options, employment shall not be deemed to continue beyond
the first ninety (90) days of such leave, unless the Optionee's reemployment
rights are guaranteed by statute or by contract.

     As used herein, the term "related corporation," when referring to a
subsidiary corporation, shall mean any corporation (other than the Company) in,
at the time of the granting of the option,

                                       6
<PAGE>   7

an unbroken chain of corporations ending with the Company, if stock possessing
fifty percent (50%) or more of the total combined voting power of all classes of
stock of each of the corporations other than the Company is owned by one of the
other corporations in such chain. When referring to a parent corporation, the
term "related corporation" shall mean any corporation in an unbroken chain of
corporations ending with the Company if, at the time of the granting of the
option, 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.

     5.9  Death of Optionee:  If an Optionee dies while he or she has a
          -----------------
relationship with the Company or any related corporation or within the thirty
(30) day period (or twelve (12) month period in the case of totally disabled
Optionees) following cessation of such relationship, any option held by such
Optionee to the extent that the Optionee would have been entitled to exercise
such option, may be exercised within one (1) year after his or her death by the
personal representative of his or her estate or by the person or persons to whom
the Optionee's rights under the option shall pass (i) by will or by the
applicable laws of descent and distribution or (ii) by a designation or transfer
pursuant to Section 5.7.

     5.10 No Status, as Shareholder:  Neither the Optionee nor any party to
          -------------------------
which the Optionee's rights and privileges under the option may pass shall be,
or have any of the rights or privileges of, a shareholder of the Company with
respect to any of the shares issuable upon the exercise of any option granted
under this Plan unless and until such option has been exercised.

     5.11 Continuation of Relationship:  Nothing in this Plan or in any option
          ----------------------------
shall confer upon any Optionee any right to continue in the employ or other
relationship of the Company or of a related corporation, or to interfere in any
way with the right of the Company or of any such related corporation to
terminate his or her employment or other relationship with the Company at any
time.

     5.12 Limitation on Value for Incentive Stock Options:  As to all incentive
          -----------------------------------------------
stock options granted under the terms of this Plan, to the extent that the
aggregate fair market value of the shares (determined at the time the incentive
stock option is granted) with respect to which incentive stock options are
exercisable for the first time by the Optionee during any calendar year (under
this Plan and all other incentive stock option plans of the Company, a related
corporation or a predecessor corporation) exceeds One Hundred Thousand Dollars
($100,000.00), such options shall be treated as nonqualified stock options. The
previous sentence shall not apply if the Internal Revenue Service issues a
public rule, issues a private ruling to the Company, any Optionee or any
legatee, personal representative or distribute of an Optionee or issues
regulations changing or eliminating such annual limit.

Section 6.  Wiborg Options:
- ---------------------------

     6.1  Term of Wiborg Options:  An option for one hundred thousand (100,000)
          ----------------------
shares of stock of the Company have been issued to JOHN S. WIBORG. The term of
such stock option shall be ten (10) years from the date such option is granted.
Such option shall be wholly exercisable on the date the option is granted and
the option holder may exercise all or any portion

                                       7
<PAGE>   8

of his purchase rights thereunder at such time or times and in such blocks,
subject to Subsection 5.3 hereof, as the option holder shall elect during such
option term. The price per share for the Wiborg Options shall be Two and 63/100
Dollars ($2.63).

     6.2  Conflicting Provisions:  The provisions contained in this Section 6
          ----------------------
and subsections thereto shall control not withstanding any contrary terms
contained herein and in particular Section 5 hereof and subsections thereto.

Section 7.  Adjustments Upon Changes in Capitalization:
            ------------------------------------------

     The aggregate number and class of shares for which options may be granted
under this Plan, the number and class of shares covered by each outstanding
option, including the Wiborg Options, and the exercise price per share thereof
(but not the total price), and each such option, shall all be proportionately
adjusted for any increase or decrease in the number of issued shares of Common
Stock of the Company resulting from a split-up or consolidation of shares or any
like capital adjustment or the payment of any stock dividend.

     7.1  Effect of Liquidation or Reorganization:
          ---------------------------------------

          7.1.1  Cash, Stock or Other Property for Stock:  Except as provided
                 ---------------------------------------
in Subsection 7.1.2, upon a merger (other than a merger of the Company in which
the holders of shares of Common Stock immediately prior to the merger have the
same proportionate ownership of shares of Common Stock in the surviving
corporation immediately after the merger), consolidation, acquisition of
property or stock, separation, reorganization (other than a mere reincorporation
or the creation of a holding company) or liquidation of the Company, as a result
of which the shareholders of the Company receive cash, stock or other property
in exchange for or in connection with their shares of Common Stock, any option
granted hereunder shall terminate, but the Optionee shall have the right
immediately prior to any such merger, consolidation, acquisition of property or
stock, separation, reorganization or liquidation to exercise such Optionee's
option to the extent the vesting requirements set forth in the option agreement
have been satisfied. All non-vested and unexercised options shall expire
coincidental with such merger, consolidation, acquisition of property or stock,
separation, reorganization or liquidation.

          7.1.2  Conversion of Options on Stock for Stock Exchange:  If the
                 -------------------------------------------------
shareholders of the Company receive capital stock of another corporation
("Exchange Stock") in exchange for their shares of Common Stock in any
transaction involving a merger (other than a merger of the Company in which the
holders of Common Stock immediately prior to the merger have the same
proportionate ownership of Common Stock in the surviving corporation immediately
after the merger), consolidation, acquisition of property or stock, separation
or reorganization (other than a mere reincorporation or the creation of a
holding company), all options granted hereunder shall be converted into options
to purchase shares of Exchange Stock unless the Company and the corporation
issuing the Exchange Stock, in their sole discretion, determine that any or all
such options granted hereunder shall not be converted into options to purchase
shares of Exchange Stock but instead shall terminate in accordance with the
provisions of Subsection 7.1.1. The amount and price of converted options shall
be determined by adjusting the amount and price of the options granted hereunder
in the same proportion as used for

                                       8
<PAGE>   9

determining the number of shares of Exchange Stock the holders of the shares of
Common Stock receive in such merger, consolidation, acquisition of property or
stock, separation or reorganization. Unless accelerated by the Board, the
vesting schedule set forth in the option agreement shall continue to apply to
the options granted for the Exchange Stock.

     7.2  Fractional Shares:  In the event of any adjustment in the number of
          -----------------
shares covered by any option, any fractional shares resulting from such
adjustment shall be disregarded and each such option shall cover only the number
of full shares resulting from such adjustment.

     7.3  Determination of Board to Be Final:  All Section 7 adjustments shall
          ----------------------------------
be made by the Board, and its determination as to what adjustments shall be
made, and the extent thereof, shall be final, binding and conclusive. Unless an
optionee agrees otherwise, any change or adjustment to an incentive stock option
shall be made in such a manner so as not to constitute a "modification" as
defined in Code Section 425(h) and so as not to cause his or her incentive stock
option issued hereunder to fail to continue to qualify as an incentive stock
option as defined in Code Section 422(b).

Section 8.  Securities Regulation:
- ----------------------------------

     Shares shall not be issued with respect to an option granted under this
Plan 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 limitation, any applicable state securities laws, 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, including the
availability, if applicable, of an exemption from registration for the issuance
and sale of any shares hereunder. Inability of the Company to obtain, from any
regulatory body having jurisdiction, the authority deemed by the Company's
counsel to be necessary for the lawful issuance and sale of any shares hereunder
or the unavailability of an exemption from registration for the issuance and
sale of any shares hereunder shall relieve the Company of any liability in
respect of the nonissuance or sale of such shares as to which such requisite
authority shall not have been obtained.

     As a condition to the exercise of an option, the Company may require the
Optionee 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 relevant provision of the
aforementioned laws. At the option of the Company, a stop-transfer order against
any shares of stock may be placed on the official stock books and records of the
Company, and a legend indicating that the stock may not be pledged, sold or
otherwise transferred, unless an opinion of counsel if provided (concurred in by
counsel for the Company) stating that such transfer is not in violation of any
applicable law or regulation, may be stamped on stock certificates in order to
assure exemption from registration. The Plan Administrator may also require such
other action or agreement by the Optionees as may from time-to-time be necessary
to comply with the federal and state securities laws. THIS PROVISION SHALL NOT
OBLIGATE THE COMPANY TO UNDERTAKE REGISTRATION OF THE OPTIONS OR STOCK
HEREUNDER.

                                       9
<PAGE>   10

     Should any of the Company's capital stock of the same class as the stock
subject to options granted hereunder be listed on a national securities
exchange, all stock issued hereunder if not previously listed on such exchange
shall be authorized by that exchange for listing thereon prior to the issuance
thereof.

Section 9.  Amendment and Termination:
- --------------------------------------

     9.1  Board Action:  The Board may at any time suspend, amend or terminate
          ------------
this Plan, provided that, to the extent required for compliance with Rule 16b-3
promulgated under Section 16(b) of the Exchange Act Section 422 of the Code or
by any applicable law or regulation, the Company's shareholders must approve any
amendment which will:

          (a) increase the number of shares that may be issued under this Plan;

          (b) with respect to nonqualified stock options, materially modify the
requirements as to eligibility for participation in this Plan or, with respect
to incentive stock options, change the designation of the participants or class
of participants eligible for participation in this Plan;

          (c) materially increase the benefits accruing to the participants
under this Plan; or

          (d) otherwise require shareholder approval under any applicable law or
regulation.

     Such shareholder approval must be obtained (i) within twelve (12) months of
the adoption by the Board of such amendment or (ii) if earlier, and to the
extent required for compliance with Rule 16b-3 promulgated under Section 16(b)
of the Exchange Act, at the next annual meeting of shareholders after such
adoption by the Board.

     Any amendment made to this Plan which would constitute a "modification" to
incentive stock options outstanding on the date of such amendment shall not be
applicable to such outstanding incentive stock options, but shall have
prospective effect only, unless the Optionee agrees otherwise.

     9.2  Automatic Termination:  Unless sooner terminated by the Board, this
          ---------------------
Plan shall terminate ten (10) years from the earlier of (a) the date on which
this Plan is adopted by the Board or (b) the date on which this Plan is approved
by the shareholders of the Company. No option may be granted after such
termination or during any suspension of this Plan. The amendment or termination
of this Plan shall not without the consent of the option holder, alter or impair
any rights or obligations under any option theretofore granted under this Plan.

                                       10
<PAGE>   11

Section 10.  Effectiveness of This Plan:
- ----------------------------------------

     This Plan shall become effective upon adoption by the Board so long as it
is approved by the Company's shareholders at any time within twelve (12) months
of such adoption of this Plan or, if earlier, and to the extent required for
compliance with Rule 16b-3 under the Exchange Act, at the next annual meeting of
shareholders after adoption by the Board.

     Plan adopted by the Board of Directors on   June 25, 1997, and approved
                                                 -------
by the shareholders on   August 28, 1997.
                         ---------

                                       11

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