Document:

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                                                                    EXHIBIT 4.07

                             1999 STOCK OPTION PLAN

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                                MACROMEDIA, INC.

                             1999 STOCK OPTION PLAN

                          As Adopted September 19, 1999
                           and Amended April 18, 2000

                1.      PURPOSE. The purpose of this Plan is to provide
incentives to attract, retain and motivate eligible persons whose present and
potential contributions are important to the success of the Company, its
Parent and Subsidiaries, by offering them an opportunity to participate in
the Company's future performance through awards of Options. Capitalized terms
not defined in the text are defined in Section 21, if they are not otherwise
defined in other sections of this Plan.

                2.      SHARES SUBJECT TO THE PLAN.

                        2.1     NUMBER OF SHARES AVAILABLE. Subject to
Sections 2.2 and 16, the total number of Shares reserved and available for
grant and issuance pursuant to this Plan will be 3,900,000 Shares. Subject to
Sections 2.2 and 16, Shares that are subject to: (a) issuance upon exercise
of an Option but cease to be subject to such Option for any reason other than
exercise of such Option; and (b) an Option granted hereunder but are
forfeited or are repurchased by the Company at the original issue price
because the Shares are Unvested Shares at the time of the Participant's
Termination, will again be available for grant and issuance in connection
with future Options under this Plan. At all times the Company shall reserve
and keep available a sufficient number of Shares as shall be required to
satisfy the requirements of all outstanding Options granted under this Plan.

                        2.2     ADJUSTMENT OF SHARES. If the number of
outstanding shares is changed by a stock dividend, recapitalization, stock
split, reverse stock split, subdivision, combination, reclassification or
similar change in the capital structure of the Company without consideration,
then (a) the number of Shares reserved for issuance under this Plan, and (b)
the Exercise Prices of and number of Shares subject to outstanding Options,
will be proportionately adjusted, subject to any required action by the Board
or the stockholders of the Company and compliance with applicable securities
laws; PROVIDED, HOWEVER, that fractions of a Share will not be issued but
will either be paid in cash at the Fair Market Value of such fraction of a
Share or will be rounded up to the nearest whole Share, as determined by the
Committee; and PROVIDED, FURTHER, that the Exercise Price of any Option may
not be decreased to below the par value of the Shares.

                3.      ELIGIBILITY. Options may be granted to employees,
officers, consultants, independent contractors and advisers of the Company or
any Parent or Subsidiary of the Company; PROVIDED such consultants,
contractors and advisers (a) are natural persons; (b) render bona fide
services; and (c) the services are not in connection with the offer and sale
of securities in a capital-raising transaction and do not directly or
indirectly promote or maintain a market for the Company's securities. A
person may be granted more than one Option under this Plan. Options awarded
to Insiders or other individuals who are officers of the Company may not
exceed in the aggregate forty percent (40%) of all Shares that are reserved
for grant under this Plan and employees who are not officers of the Company,
or any Parent or Subsidiary of the Company must receive at least sixty
percent (60%) of all Shares that are reserved for grant under this Plan.

                4.      ADMINISTRATION.

                        4.1     COMMITTEE AUTHORITY. This Plan will be
administered by the Committee or by the Board acting as the Committee.
Subject to the general purposes, terms and conditions of this Plan, and to
the direction of the Board, the Committee will have full power to implement
and carry out this Plan. Without limitation, the Committee will have the
authority to:

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                (a)     construe and interpret this Plan, any Stock Option
                        Agreement and any other agreement or document executed
                        pursuant to this Plan;

                (b)     prescribe, amend and rescind rules and regulations
                        relating to this Plan or any Option;

                (c)     select persons to receive Options;

                (d)     determine the form and terms of Options;

                (e)     determine the number of Shares subject to Options;

                (f)     determine whether Options will be granted singly, in
                        combination with, in tandem with, in replacement of, or
                        as alternatives to, other Options under this Plan or any
                        other incentive or compensation plan of the Company or
                        any Parent or Subsidiary of the Company;

                (g)     grant waivers of Plan or Option conditions;

                (h)     determine the vesting, exercisability and payment of
                        Options;

                (i)     correct any defect, supply any omission or reconcile any
                        inconsistency in this Plan, any Option or any Stock
                        Option Agreement;

                (j)     determine whether an Option has been earned; and

                (k)     make all other determinations necessary or advisable for
                        the administration of this Plan.

                        4.2     COMMITTEE DISCRETION. Any determination made
by the Committee with respect to any Option will be made in its sole
discretion at the time of grant of the Option or, unless in contravention of
any express term of this Plan or Option, at any later time, and such
determination will be final and binding on the Company and on all persons
having an interest in any Option under this Plan. The Committee may delegate
to one or more officers of the Company, each of whom are a member of the
Board, the authority to grant an Option under this Plan to Participants who
are not Insiders.

                5.      OPTIONS. Only nonqualified stock options that do not
qualify as incentive stock options within the meaning of Code Section 422(b)
may be granted under this Plan. The Committee may grant Options to eligible
persons and will determine (i) the number of Shares subject to the Option,
(ii) the Exercise Price of the Option, (iii) the period during which the
Option may be exercised, and (iv) all other terms and conditions of the
Option and, subject to the limits in Section 9 on the transferability of
Options, whether the Option or any interest therein may be transferred during
the Participant's lifetime, subject to the following:

                        5.1     FORM OF OPTION GRANT. Each Option granted
under this Plan will be evidenced by a Stock Option Agreement. The Stock
Option Agreement will be in such form and contain such provisions (which need
not be the same for each Participant) as the Committee may from time to time
approve, and which will comply with and be subject to the terms and
conditions of this Plan.

                        5.2     DATE OF GRANT. The date of grant of an Option
will be the date on which the Committee makes the determination to grant the
Option, unless a later date is otherwise specified by the Committee. The
Stock Option Agreement and a copy of this Plan will be delivered to the
Participant within a reasonable time after the granting of the Option.

                        5.3     EXERCISE PERIOD AND EXPIRATION DATE. Options
will be exercisable within the times or upon the occurrence of events
determined by the Committee as set forth in the Stock Option Agreement
governing such Option; PROVIDED, HOWEVER, that no Option will be exercisable
after the expiration of ten (10) years from the date the Option is granted.
The Committee also may provide for Options to become exercisable at one

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time or from time to time, periodically or otherwise, in such number of
Shares or percentage of Shares as the Committee determines.

                        5.4     EXERCISE PRICE. The Exercise Price of an
Option will be determined by the Committee when the Option is granted and may
not be less than Fair Market Value of the Shares on the date of grant.
Payment for the Shares purchased must be made in accordance with Section 6 of
this Plan.

                        5.5     METHOD OF EXERCISE. Options may be exercised
only by delivery to the Company of a written stock option exercise agreement
(the "EXERCISE AGREEMENT") in a form approved by the Committee (which need
not be the same for each Participant), stating the number of Shares being
purchased, the restrictions imposed on the Shares purchased under such
Exercise Agreement, if any, and such representations and agreements regarding
Holder's investment intent and access to information and other matters, if
any, as may be required or desirable by the Company to comply with applicable
securities laws, together with payment in full of the Exercise Price for the
number of Shares being purchased.

                        5.6     TERMINATION. Notwithstanding the exercise
periods set forth in the Stock Option Agreement, exercise of an Option will
always be subject to the following:

                (a)     If the Participant is Terminated for any reason except
                        death or Disability, then the Holder may exercise such
                        Holder's Options only to the extent that such Options
                        would have been exercisable upon the Termination Date no
                        later than ninety (90) days after the Termination Date
                        (or such shorter or longer time period not exceeding
                        five (5) years as may be determined by the Committee),
                        but in any event, no later than the expiration date of
                        the Options.

                (b)     If the Participant is Terminated because of
                        Participant's death or Disability (or the Participant
                        dies within three (3) months after a Termination), then
                        Holder's Options may be exercised only to the extent
                        that such Options would have been exercisable by Holder
                        on the Termination Date and must be exercised by the
                        Holder no later than twelve (12) months after the
                        Termination Date (or such shorter or longer time period
                        not exceeding five (5) years as may be determined by the
                        Committee) but in any event no later than the expiration
                        date of the Options.

                        5.7     LIMITATIONS ON EXERCISE. The Committee may
specify a reasonable minimum number of Shares that may be purchased on any
exercise of an Option, provided that the minimum number will not prevent a
Holder from exercising the Option for the full number of Shares for which it
is then exercisable.

                        5.8     MODIFICATION, EXTENSION OR RENEWAL. The
Committee may modify, extend or renew outstanding Options and authorize the
grant of new Options in substitution therefor, provided that any such action
may not, without the written consent of a Participant, impair any of such
Participant's rights under any Option previously granted. The Committee may
reduce the Exercise Price of outstanding Options without the consent of
Participants affected by a written notice to them; PROVIDED, HOWEVER, that
the Exercise Price may not be reduced below the minimum Exercise Price that
would be permitted under Section 5.4 of this Plan for Options granted on the
date the action is taken to reduce the Exercise Price; and provided, further,
that the Exercise Price shall not be reduced below the par value of the
Shares.

                6.      PAYMENT FOR SHARE PURCHASES.

                        6.1     PAYMENT. Payment for Shares purchased on
exercise of an Option may be made in cash (by check) or, where expressly
approved for the Participant by the Committee and where permitted by law:

                (a)     in case of exercise by the Participant, Participant's
                        guardian or legal representative or the authorized legal
                        representative of Participant's heirs or legatees after
                        Participant's death, by cancellation of indebtedness of
                        the Company to the Participant;

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                (b)     by surrender of shares that either: (1) have been owned
                        by Holder for more than six (6) months and have been
                        paid for within the meaning of SEC Rule 144 (and, if
                        such shares were purchased from the Company by use of a
                        promissory note, such note has been fully paid with
                        respect to such shares); or (2) were obtained by Holder
                        in the public market;

                (c)     by tender of a full recourse promissory note having such
                        terms as may be approved by the Committee and bearing
                        interest at a rate sufficient to avoid imputation of
                        income under Sections 483 and 1274 of the Code;
                        PROVIDED, HOWEVER, that a Holder who is not an employee
                        of the Company shall not be entitled to purchase Shares
                        with a promissory note unless the note is adequately
                        secured by collateral other than the Shares; and
                        provided, further, that the portion of the Exercise
                        Price equal to the par value of the Shares must be paid
                        in cash;

                (d)     in the case of exercise by the Participant,
                        Participant's guardian or legal representative or the
                        authorized legal representative of Participant's heirs
                        or legatees after Participant's death, by waiver of
                        compensation due or accrued to the Participant for
                        services rendered;

                (e)     by tender of property;

                (f)     provided that a public market for the Company's stock
                        exists:

                        (1)     through a "same day sale" commitment from the
                                Holder and a broker-dealer that is a member of
                                the National Association of Securities Dealers
                                (an "NASD DEALER") whereby the Holder
                                irrevocably elects to exercise the Option and to
                                sell a portion of the Shares so purchased to pay
                                for the Exercise Price, and whereby the NASD
                                Dealer irrevocably commits upon receipt of such
                                Shares to forward the Exercise Price directly to
                                the Company; or

                        (2)     through a "margin" commitment from the Holder
                                and a NASD Dealer whereby the Holder irrevocably
                                elects to exercise the Option and to pledge the
                                Shares so purchased to the NASD Dealer in a
                                margin account as security for a loan from the
                                NASD Dealer in the amount of the Exercise Price,
                                and whereby the NASD Dealer irrevocably commits
                                upon receipt of such Shares to forward the
                                Exercise Price directly to the Company; or

                (g)     by any combination of the foregoing.

                        6.2     LOAN GUARANTEES. The Committee may help the
Participant pay for Shares purchased under this Plan by authorizing a
guarantee by the Company of a third-party loan to the Participant.

                7.      WITHHOLDING TAXES.

                         7.1      WITHHOLDING GENERALLY.  Whenever  Shares
are to be issued on  exercise of Options granted under this Plan, the Company
may require the Holder to remit to the Company an amount sufficient to
satisfy federal, state and local withholding tax requirements prior to the
delivery of any certificate or certificates for such Shares. If a payment in
satisfaction of an Option is to be made in cash, such payment will be net of
an amount sufficient to satisfy federal, state, and local withholding tax
requirements.

                        7.2     STOCK WITHHOLDING. When, under applicable tax
laws, a Participant incurs tax liability in connection with the exercise or
vesting of any Option that is subject to tax withholding and the Participant
is obligated to pay the Company the amount required to be withheld, the
Committee may in its sole discretion allow the Participant to satisfy the
minimum withholding tax obligation by electing to have the Company withhold
from the Shares to be issued that number of Shares having a Fair Market Value
equal to the minimum amount required to be withheld, determined on the date
that the amount of tax to be withheld is to be determined. All elections by a
Holder to have Shares withheld for this purpose will be made in accordance
with the requirements established by the Committee and be in writing in a
form acceptable to the Committee

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                8.      PRIVILEGES OF STOCK OWNERSHIP.

                        8.1     VOTING AND DIVIDENDS. No Holder will have any
of the rights of a stockholder with respect to any Shares until the Shares
are issued to the Holder. After Shares are issued to the Holder, the Holder
will be a stockholder and have all the rights of a stockholder with respect
to such Shares, including the right to vote and receive all dividends or
other distributions made or paid with respect to such Shares; provided,
however, that if the Shares are Unvested Shares, any new, additional or
different securities the Holder may become entitled to receive with respect
to the Shares by virtue of a stock dividend, stock split or any other change
in the corporate or capital structure of the Company will be subject to the
same restrictions as the Unvested Shares; provided, further that the Holder
will have no right to retain such dividends or distributions with respect to
Shares that are repurchased at the Holder's original Exercise Price pursuant
to Section 10.

                        8.2     FINANCIAL STATEMENTS. The Company will
provide financial statements to each Holder prior to such Holder's purchase
of Shares under this Plan, and to each Holder annually during the period such
Holder has Options outstanding; PROVIDED, HOWEVER, that the Company will not
be required to provide such financial statements to Holders whose services in
connection with the Company assure them access to equivalent information.

                9.      TRANSFERABILITY. Unless otherwise restricted by the
Committee, an Option shall be exercisable: (i) during the Participant's
lifetime only by (A) the Participant, (B) the Participant's guardian or legal
representative, (c) a Family Member of the Participant who has acquired the
Option by Permitted Transfer; and (ii) after Participant's death, by the
legal representative of the Participant's heirs or legatees.

                10.     RESTRICTIONS ON SHARES. At the discretion of the
Committee, the Company may reserve to itself and/or its assignee(s) in the
Stock Option Agreement a right to repurchase at the Holder's Exercise Price a
portion of or all Unvested Shares held by a Holder following such
Participant's Termination at any time within ninety (90) days after the later
of Participant's Termination Date and the date Holder purchases Shares under
this Plan, for cash and/or cancellation of purchase money indebtedness.

                11.     CERTIFICATES. All certificates for Shares or other
securities delivered under this Plan will be subject to such stock transfer
orders, legends and other restrictions as the Committee may deem necessary or
advisable, including restrictions under any applicable federal, state or
foreign securities law, or any rules, regulations and other requirements of
the SEC or any stock exchange or automated quotation system upon which the
Shares may be listed or quoted.

                12.     ESCROW; PLEDGE OF SHARES. To enforce any restrictions
on a Holder's Shares, the Committee may require the Holder to deposit all
certificates representing the Shares, together with stock powers or other
instruments of transfer approved by the Committee, appropriately endorsed in
blank, with the Company or an agent designated by the Company to hold in
escrow until such restrictions have lapsed or terminated, and the Committee
may cause a legend or legends referencing such restrictions to be placed on
the certificates. Any Holder who is permitted to execute a promissory note as
partial or full consideration for the purchase of Shares under this Plan will
be required to pledge and deposit with the Company all or part of the Shares
so purchased as collateral to secure the payment of Holder's obligation to
the Company under the promissory note; PROVIDED, HOWEVER, that the Committee
may require or accept other or additional forms of collateral to secure the
payment of such obligation and, in any event, the Company will have full
recourse against the Holder under the promissory note notwithstanding any
pledge of the Holder's Shares or other collateral. In connection with any
pledge of the Shares, Holder will be required to execute and deliver a
written pledge agreement in such form as the Committee will from time to time
approve. The Shares purchased with the promissory note may be released from
the pledge on a pro rata basis as the promissory note is paid.

                13.     EXCHANGE AND BUYOUT OF OPTIONS. The Committee may, at
any time or from time to time, authorize the Company, with the consent of the
respective Holders, to issue new Options in exchange for the surrender and
cancellation of any or all outstanding Options. The Committee may at any time
buy from a

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Holder an Option previously granted with payment in cash, Shares or other
consideration, based on such terms and conditions as the Committee and the
Holder may agree.

                14.     SECURITIES LAW AND OTHER REGULATORY COMPLIANCE. An
Option will not be effective unless such Option is in compliance with all
applicable federal and state securities laws, rules and regulations of any
governmental body, and the requirements of any stock exchange or automated
quotation system upon which the Shares may then be listed or quoted, as they
are in effect on the date of grant of the Option and also on the date of
exercise or other issuance. Notwithstanding any other provision in this Plan,
the Company will have no obligation to issue or deliver certificates for
Shares under this Plan prior to: (a) obtaining any approvals from
governmental agencies that the Company determines are necessary or advisable;
and/or (b) completion of any registration or other qualification of such
Shares under any state or federal law or ruling of any governmental body that
the Company determines to be necessary or advisable. The Company will be
under no obligation to register the Shares with the SEC or to effect
compliance with the registration, qualification or listing requirements of
any state securities laws, stock exchange or automated quotation system, and
the Company will have no liability for any inability or failure to do so.

                15.     NO OBLIGATION TO EMPLOY. Nothing in this Plan or any
Option granted under this Plan will confer or be deemed to confer on any
Participant any right to continue in the employ of, or to continue any other
relationship with, the Company or any Parent or Subsidiary of the Company or
limit in any way the right of the Company or any Parent or Subsidiary of the
Company to terminate Participant's employment or other relationship at any
time, with or without cause.

                16.     CORPORATE TRANSACTIONS.

                        16.1    ASSUMPTION OR REPLACEMENT OF OPTIONS BY
SUCCESSOR. In the event of (a) a merger or consolidation in which the Company
is not the surviving corporation (other than a merger or consolidation with a
wholly-owned subsidiary, a reincorporation of the Company in a different
jurisdiction, or other transaction in which there is no substantial change in
the stockholders of the Company and the Options granted under this Plan are
assumed or replaced by the successor corporation, which assumption will be
binding on all Participants), (b) a dissolution or liquidation of the
Company, (c) the sale of substantially all of the assets of the Company, or
(d) any other transaction which qualifies as a "corporate transaction" under
Section 424(a) of the Code wherein the stockholders of the Company give up
all of their equity interest in the Company (EXCEPT for the acquisition, sale
or transfer of all or substantially all of the outstanding shares of the
Company), any or all outstanding Options may be assumed or replaced by the
successor corporation, which assumption or replacement shall be binding on
all Holders. In the alternative, the successor corporation may substitute
equivalent Options or provide substantially similar considerations to Holders
as was provided to stockholders (after taking into account the existing
provisions of the Options). The successor corporation may also issue, in
place of Unvested Shares of the Company held by Holder, substantially similar
shares or other property subject to repurchase restrictions no less favorable
to the Holder.

                        16.2    EXPIRATION OF OPTIONS. In the event such
successor corporation, if any, refuses to assume or substitute the Options,
as provided above, pursuant to a transaction described in Subsection 16.1(a)
above, such Options shall expire on such transaction at such time and on such
conditions as the Board shall determine. In the event such successor
corporation, if any, refuses to assume or substitute the Options as provided
above, pursuant to a transaction described in Subsections 16.1(b), (c) or (d)
above, or there is no successor corporation, and if the Company ceases to
exist as a separate corporate entity, then, notwithstanding any contrary
terms in the Stock Option Agreement, the Options shall expire on a date at
least twenty (20) days after the Board gives written notice to Holders
specifying the terms and conditions of such termination.

                        16.3    OTHER TREATMENT OF OPTIONS. Subject to any
greater rights granted to Participants under the foregoing provisions of this
Section 16, in the event of the occurrence of any transaction described in
Section 16.1, any outstanding Options will be treated as provided in the
applicable agreement or plan of merger, consolidation, dissolution,
liquidation, sale of assets or other "corporate transaction."

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                        16.4    ASSUMPTION OF OPTIONS BY THE COMPANY. The
Company, from time to time, also may substitute or assume outstanding options
granted by another company, whether in connection with an acquisition of such
other company or otherwise, by either; (a) granting an Option under this Plan
in substitution of such other company's option; or (b) assuming such option
as if it had been granted under this Plan if the terms of such assumed option
could be applied to an Option granted under this Plan. Such substitution or
assumption will be permissible if the holder of the substituted or assumed
option would have been eligible to be granted an Option under this Plan if
the other company had applied the rules of this Plan to such grant. In the
event the Company assumes an option granted by another company, the terms and
conditions of such option will remain unchanged (EXCEPT that the exercise
price and the number and nature of Shares issuable upon exercise of any such
option will be adjusted appropriately pursuant to Section 424(a) of the
Code). In the event the Company elects to grant a new Option rather than
assuming an existing option, such new Option may be granted with a similarly
adjusted Exercise Price.

                17.     ADOPTION. This Plan will become effective on the date
that it is adopted by the Board (the "EFFECTIVE DATE").

                18.     TERM OF PLAN/GOVERNING LAW. Unless earlier terminated
as provided herein, this Plan will terminate ten (10) years from the
Effective Date. This Plan and all agreements hereunder shall be governed by
and construed in accordance with the internal laws of the State of
California, excluding that body of law pertaining to conflict of laws.

                19.     AMENDMENT OR TERMINATION OF PLAN. The Board may at
any time terminate or amend this Plan in any respect, including without
limitation amendment of any form of Stock Option Agreement or instrument to
be executed pursuant to this Plan.

                20.     NONEXCLUSIVITY OF THE PLAN. Neither the adoption of
this Plan by the Board, nor any provision of this Plan will be construed as
creating any limitations on the power of the Board to adopt such additional
compensation arrangements as it may deem desirable, including, without
limitation, the granting of stock options otherwise than under this Plan, and
such arrangements may be either generally applicable or applicable only in
specific cases.

                21.     DEFINITIONS. As used in this Plan, the following
terms will have the following meanings:

                        "BOARD" means the Board of Directors of the Company.

                        "COMMITTEE" means the Committee appointed by the
Board to administer the Plan, or if no committee is appointed, the Board.

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

                        "COMPANY" means Macromedia, Inc., a corporation
organized under the laws of Delaware, or any successor corporation.

                        "DISABILITY" means a disability, whether temporary or
permanent, partial or total, within the meaning of Section 22(e)(3) of the
Code, as determined by the Committee.

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

                        "EXERCISE PRICE" means the price at which a holder of
an Option may purchase the Shares issuable upon exercise of the Option.

                        "FAIR MARKET VALUE" means, as of any date, the value
of a share of the Company's Common Stock determined as follows:

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                (a)     if such Common Stock is then quoted on the Nasdaq
                        National Market, its last reported sales price on the
                        Nasdaq National Market or, if no such reported sale
                        takes place on such date, the average of the closing bid
                        and asked prices;

                (b)     if such Common Stock is publicly traded and is then
                        listed on a national securities exchange, the last
                        reported sale price or, if no such reported sale takes
                        place on such date, the average of the closing bid and
                        asked prices on the principal national securities
                        exchange on which the Common Stock is listed or admitted
                        to trading;

                (c)     if such Common Stock is publicly traded but is not
                        quoted on the Nasdaq National Market nor listed or
                        admitted to trading on a national securities exchange,
                        the average of the closing bid and asked prices on such
                        date, as reported by THE WALL STREET JOURNAL, for the
                        over-the-counter market; or

                (d)     if none of the foregoing is applicable, by the Board of
                        Directors of the Company in good faith.

                        "FAMILY MEMBER" includes any of the following:

                (a)     child, stepchild, grandchild, parent, stepparent,
                        grandparent, spouse, former spouse, sibling, niece,
                        nephew, mother-in-law, father-in-law, son-in-law,
                        daughter-in-law, brother-in-law, or sister-in-law of the
                        Participant, including any such person with such
                        relationship to the Participant by adoption;

                (b)     any person (other than a tenant or employee) sharing the
                        Participant's household;

                (c)     a trust in which the persons in (a) and (b) have more
                        than fifty percent of the beneficial interest;

                (d)     a foundation in which the persons in (a) and (b) or the
                        Participant control the management of assets; or

                (e)     any other entity in which the persons in (a) and (b) or
                        the Participant own more than fifty percent of the
                        voting interest.

                        "HOLDER" means the following person to the extent such
person has or controls an interest in an Option at the time in question: (a) the
Participant; (b) the Participant's guardian or legal representative; (c) a
Family Member who is a transferee of an Option in a Permitted Transfer, and (d)
the authorized legal representative of such person's heirs or legatees after
such person's death.

                        "INSIDER" means an officer of the Company or any other
person whose transactions in the Company's Common Stock are subject to Section
16 of the Exchange Act.

                        "OPTION" means an Option of an option to purchase
Shares pursuant to Section 5.

                        "PARENT" means any corporation (other than the
Company) in an unbroken chain of corporations ending with the Company if, at
the time of granting of the Option under the Plan, each of such corporations
other than the Company owns stock possessing 50% or more of the total
combined voting power of all classes of stock in one of the other
corporations in such chain.

                        "PARTICIPANT" means a person who receives an Option
under this Plan.

                        "PERMITTED TRANSFER" means, as authorized by this
Plan and the Committee in an Option, any transfer effected by the Participant
during the Participant's lifetime of an interest in such Option but only such
transfers which are by gift or domestic relations order. A Permitted Transfer
does not include

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any transfer for value and neither of the following are transfers for value:
(a) a transfer of under a domestic relations order in settlement of marital
property rights or (b) a transfer to an entity in which more than fifty
percent of the voting interests are owned by Family Members or the
Participant in exchange for an interest in that entity.

                        "PLAN" means this Macromedia, Inc. 1999 Stock Option
Plan, as amended from time to time.

                        "SEC" means the Securities and Exchange Commission.

                        "SECURITIES ACT" means the Securities Act of 1933, as
amended.

                        "SHARES" means shares of the Company's Common Stock
reserved for issuance under this Plan, as adjusted pursuant to Sections 2 and
16, and any successor security.

                        "STOCK OPTION AGREEMENT" means, with respect to each
Option, the signed written agreement between the Company and the Participant
setting forth the terms and conditions of the Option.

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

                        "TERMINATION" or "TERMINATED" means, for purposes of
this Plan with respect to a Participant, that the Participant has for any
reason ceased to provide services as an employee, officer, consultant,
independent contractor, or advisor to the Company or a Parent or Subsidiary
of the Company except for sick leave, military leave, or any other leave of
absence approved by the Committee, provided, that such leave is for a period
of not more than 90 days, unless reinstatement upon the expiration of such
leave is guaranteed by contract or statute. The Committee will have sole
discretion to determine whether a Participant has ceased to provide services
and the effective date on which the Participant ceased to provide services
(the "TERMINATION DATE").

                        "UNVESTED SHARES" means "Unvested Shares" as defined
in the Option Agreement.

                        "VESTED SHARES" means "Vested Shares" as defined in
the Option Agreement.<PAGE>

                                                                    EXHIBIT 4.08

                       FORM OF NON-PLAN STOCK OPTION GRANT

<PAGE>

NEW EMPLOYEE                                                                 NO.

                                MACROMEDIA, INC.

                      NON-QUALIFIED STOCK OPTION AGREEMENT

         This Stock Option Agreement ("AGREEMENT") is made and entered into
as of the Date of Grant set forth below (the "DATE OF GRANT") by and between
Macromedia, Inc., a Delaware corporation (the "COMPANY"), and the Optionee
named below ("OPTIONEE"). Capitalized terms not defined herein shall have the
meanings ascribed to them in the Company's 1992 Equity Incentive Plan (the
"PLAN"), as amended through April 1, 1999.

Optionee:
Social Security Number:
Total Option Shares:
Exercise Price Per Share:
Date of Grant:
Vesting Start Date:
Expiration Date:

                    (unless terminated earlier pursuant to Section 3 below)

         1.       GRANT OF OPTION. The Company hereby grants to Optionee an
option (the "OPTION") to purchase the total number of shares of Common Stock
at $0.001 par value, of the Company set forth above as Total Option Shares
(the "SHARES") at the Exercise Price Per Share set forth above (the "EXERCISE
PRICE"), subject to all of the terms and conditions of this Agreement. This
Option does not meet the incentive Stock Option requirements of Section
422(b) of the Internal Revenue Code and is intended to be a "nonqualified
stock option".

         2.       VESTING AND EXERCISE PERIOD.

                  2.1      VESTING AND EXERCISE PERIODS OF OPTION. Provided
Optionee continues to provide services to the Company or any Subsidiary,
Parent or Affiliate of the Company throughout the specified period, the
Option shall become exercisable as to 25% of the Total Option Shares on the
date twelve months after the Vesting Start Date specified above and shall be
exercisable as to an additional 2.0833% of the Total Option Shares at the end
of each full succeeding month thereafter until this Option is exercisable
with respect to 100% of the Shares.

                  2.2      EXPIRATION. The Option shall expire on the earlier
of Expiration Date set forth above or the last day of the applicable
post-termination exercise period set forth in Section 3.1 and 3.2 below and
must be exercised, if at all, on or before such date.

<PAGE>

                  3.       TERMINATION. The following provisions shall govern
the exercise of the Option in the event Optionee is Terminated.

                           3.1      TERMINATION FOR ANY REASON EXCEPT DEATH
OR DISABILITY. If Optionee is Terminated for any reason, except death or
Disability, notwithstanding any other provision in this Agreement to the
contrary, the Option, to the extent that it would have been exercisable on
Optionee's Termination Date pursuant to Section 2.1 of this Agreement, may be
exercised by the Holder no later than ninety (90) days after the Termination
Date, but in any event no later than the Expiration Date.

                           3.2      TERMINATION BECAUSE OF DEATH OR
DISABILITY. If Optionee is Terminated because of his of her death or
Disability of Optionee , the Option, to the extent that it is exercisable on
Optionee's Termination Date, may be exercised by the Holder no later than
twelve (12) months after the Termination Date, but in any event no later than
the Expiration Date.

                           3.3      NO OBLIGATION TO EMPLOY. Nothing in this
Agreement shall confer on Optionee any right to continue in the employ of, or
other relationship with, the Company or any Parent, Subsidiary or Affiliate
of the Company, or limit in any way the right of the Company or any Parent,
Subsidiary or Affiliate of the Company to terminate Optionee's employment or
other relationship at any time, with or without cause.

                  4.       MANNER OF EXERCISE.

                           4.1      STOCK OPTION EXERCISE AGREEMENT. To
exercise this Option, the Holder must deliver to the Company an executed
stock option exercise agreement in the form attached hereto as EXHIBIT A, or
in such other form as may be approved by the Company from time to time (the
"EXERCISE AGREEMENT"), which shall set forth, INTER ALIA, Holder's election
to exercise the Option, the number of Shares being purchased, any
restrictions imposed on the Shares and any representations, warranties and
agreements regarding Holder's investment intent and access to information as
may be required by the Company to comply with applicable securities laws. If
someone other than Optionee exercises the Option, then such person must
submit documentation reasonably acceptable to the Company that such person
has the right to exercise the Option.

                           4.2      LIMITATIONS ON EXERCISE. The Option may
not be exercised unless such exercise is in compliance with all applicable
federal and state securities laws, as they are in effect on the date of
exercise. The Option may not be exercised as to fewer than 100 Shares unless
it is exercised as to all Shares as to which the Option is then exercisable.

                           4.3      PAYMENT. The Exercise Agreement shall be
accompanied by full payment of the Exercise Price for the Shares being
purchased in cash (by check), or where permitted by law:

         (a)      in case of exercise by the Optionee, by cancellation of
                  indebtedness of the Company to the Optionee;

<PAGE>

         (b)      by surrender of shares of the Company's Common Stock that
                  either: (1) have been owned by the Holder for more than six
                  (6) months and have been paid for within the meaning of SEC
                  Rule 144 and, if such shares were purchased from the Company
                  by use of a promissory note, such note has been fully paid
                  with respect to such shares or (2) were obtained by the Holder
                  in the open public market; and (3) are clear of all liens,
                  claims, encumbrances or security interests;

         (c)      in case of exercise by the Optionee, by waiver of compensation
                  due or accrued to Optionee for services rendered;

         (d)      provided that a public market for the Company's stock exists,
                  (1) through a "same day sale" commitment from the Holder and a
                  broker-dealer that is a member of the National Association of
                  Securities Dealers (a "NASD DEALER") whereby the Holder
                  irrevocably elects to exercise the Option and to sell a
                  portion of the Shares so purchased to pay for the Exercise
                  Price and whereby the NASD Dealer irrevocably commits upon
                  receipt of such Shares to forward the Exercise Price directly
                  to the Company, OR (2) through a "margin" commitment from
                  Optionee and a NASD Dealer whereby Optionee irrevocably elects
                  to exercise the Option and to pledge the Shares so purchased
                  to the NASD Dealer in a margin account as security for a loan
                  from the NASD Dealer in the amount of the Exercise Price, and
                  whereby the NASD Dealer irrevocably commits upon receipt of
                  such Shares to forward the Exercise Price directly to the
                  Company; or

         (e)      by any combination of the foregoing.

                  4.4      TAX WITHHOLDING. Prior to the issuance of the
Shares upon exercise of the Option, Optionee must pay or provide for any
applicable federal or state withholding obligations of the Company. If the
Committee permits, Optionee may provide for payment of withholding taxes upon
exercise of the Option by requesting that the Company retain Shares with a
Fair Market Value equal to the minimum amount of taxes required to be
withheld. In such case, the Company shall issue the net number of Shares to
the Holder by deducting the Shares retained from the Shares issuable upon
exercise.

                  4.5      ISSUANCE OF SHARES. Upon the exercise of the
Option in accordance with this Section 4, the Company shall issue the Shares
registered in the name of the Holder and shall deliver certificates
representing the Shares with the appropriate legends affixed thereto.

         6.       COMPLIANCE WITH LAWS AND REGULATIONS. The exercise of the
Option and the issuance and transfer of Shares shall be subject to compliance
by the Company and the Holder with all applicable requirements of federal and
state securities laws and with all applicable requirements of any stock
exchange on which the Company's Common Stock may be listed at the time of
such issuance or transfer. Optionee understands that the Company is under no
obligation to register or qualify the Shares with the Securities and Exchange
Commission, any state securities commission or any stock exchange to effect
such compliance.

<PAGE>

         7.       TRANSFERABILITY OF OPTION. The Option shall be exercisable:
(a) during the Optionee's lifetime only by (i) Optionee, (ii) the Optionee's
guardian or legal representative, (iii) a Family Member of the Optionee who
has acquired the Option by Permitted Transfer; and (b) after Optionee's
death, by the legal representative of the Optionee's heirs or legatees. For
purposes of this Agreement "Holder" means one of the above persons to the
extent such person has or controls an interest in the Option at the time in
question.

         8.       TAX CONSEQUENCES. Set forth below is a brief summary as of
the Date of Grant of some of the federal and California tax consequences of
exercise of the Option and disposition of the Shares. THIS SUMMARY IS
NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO
CHANGE. OPTIONEE SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THE OPTION OR
DISPOSING OF THE SHARES.

                  8.1      EXERCISE OF NON-QUALIFIED STOCK OPTION. Optionee
will be treated as having received compensation income (taxable at ordinary
income tax rates) equal to the excess, if any, of the fair market value of
the Shares on the date of exercise over the Exercise Price. The Company will
be required to withhold from Optionee's compensation or collect from Optionee
and pay to the applicable taxing authorities an amount equal to a percentage
of this compensation income at the time of exercise.

                  8.2      DISPOSITION OF SHARES. If the Shares are held for
more than twelve (12) months after the date of the transfer of the Shares
pursuant to the exercise of the Option, any gain realized on disposition of
the Shares will be treated as long term capital gain for federal and
California income tax purposes.

         9.       PRIVILEGES OF STOCK OWNERSHIP. The Holder shall not have
any of the rights of a stockholder with respect to any Shares until the
Holder exercises the Option and pays the Exercise Price and is issued the
Shares following such exercise.

         10.      INTERPRETATION. Any dispute regarding the interpretation of
this Agreement shall be submitted by Optionee or the Company to the Committee
for review. The resolution of such a dispute by the Committee shall be final
and binding on the Company, the Optionee and the Holder an anyone else with
an interest in the Option.

         11.      ENTIRE AGREEMENT. This Agreement constitutes the entire
agreement of the parties and supersede all prior undertakings and agreements
with respect to the subject matter hereof.

         12.      NOTICES. Any notice required to be given or delivered to
the Company under the terms of this Agreement shall be in writing and
addressed to the Corporate Secretary of the Company at its principal
corporate offices. Any notice required to be given or delivered to Optionee
shall be in writing and addressed to Optionee at the address indicated above
or to such other address as such party may designate in writing from time to
time to the Company. All notices shall be deemed to have been given or
delivered upon: personal delivery; three (3) days after

<PAGE>

deposit in the United States mail by certified or registered mail (return
receipt requested); one (1) business day after deposit with any return
receipt express courier (prepaid); or one (1) business day after transmission
by facsimile.

         13.      SUCCESSORS AND ASSIGNS. The Company may assign any of its
rights under this Agreement. This Agreement shall be binding upon and inure
to the benefit of the successors and assigns of the Company. Subject to the
restrictions on transfer set forth herein, this Agreement shall be binding
upon Optionee and Optionee's heirs, executors, administrators, legal
representatives, successors and assigns and the Holder and the Holder's
heirs, executors, administrators, legal representatives, successors and
assigns.

         14.      GOVERNING LAW. This Agreement shall be governed by and
construed in accordance with the internal laws of the State of California,
excluding that body of law pertaining to conflict of laws.

         15.      ACCEPTANCE. Optionee hereby acknowledges receipt of a copy
this Agreement. Optionee has read and understands the terms and provisions
thereof, and accepts the Option subject to all the terms and conditions of
this Agreement. Optionee acknowledges that there may be adverse tax
consequences upon exercise of the Option or disposition of the Shares and
that Optionee should consult a tax adviser prior to such exercise or
disposition.

         IN WITNESS WHEREOF, the Company has caused this Agreement to be
executed in duplicate by its duly authorized representative and Optionee has
executed this Agreement in duplicate as of the Date of Grant.

MACROMEDIA, INC.                          OPTIONEE

By:
   -----------------------------          --------------------------------
    Betsey Nelson,                        (Signature)
    Executive Vice President and
    Chief Financial Officer

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