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                                                                   EXHIBIT 10.32

                               REMEDY CORPORATION
                  1995 NON-EMPLOYEE DIRECTORS STOCK OPTION PLAN
                           (AS AMENDED MARCH 24, 1998)
      (REFLECTS STOCK SPLITS AND ANNUAL INCREASES THROUGH JANUARY 1, 2001)

         I.       PURPOSE OF THE PLAN

                  This 1995 Non-Employee Directors Stock Option Plan (the
"Plan") is intended to promote the interests of Remedy Corporation, a Delaware
corporation (the "Corporation"), by providing the non-employee members of the
Board of Directors with the opportunity to acquire a proprietary interest, or
otherwise increase their proprietary interest, in the Corporation as an
incentive for them to remain in the service of the Corporation.

         II.      DEFINITIONS

                  For purposes of the Plan, the following definitions shall be
in effect:

                  ANNUAL MEETING: the annual meeting of the Corporation's
stockholders.

                  BOARD: the Corporation's Board of Directors.

                  CODE: the Internal Revenue Code of 1986, as amended.

                  COMMON STOCK: shares of the Corporation's common stock.

                  CHANGE IN CONTROL: a change in ownership or control of the
Corporation effected through either of the following transactions:

                           a.       the acquisition, directly or indirectly by
         any person or related group of persons (other than the Corporation or a
         person that directly or indirectly controls, is controlled by, or is
         under common control with, the Corporation), of beneficial ownership
         (within the meaning of Rule 13d-3 of the 1934 Act) of securities
         possessing more than fifty percent (50%) of the total combined voting
         power of the Corporation's outstanding securities pursuant to a tender
         or exchange offer made directly to the Corporation's stockholders which
         the Board does not recommend such stockholders to accept, or

                           b.       a change in the composition of the Board
         over a period of thirty-six (36) consecutive months or less such that a
         majority of the Board members ceases, by reason of one or more
         contested elections for Board membership, to be comprised of
         individuals who either (A) have been Board members continuously since
         the beginning of such period or (B) have been elected or nominated for
         election as Board members during such period by at least a majority of
         the Board members described in clause (A) who were still in office at
         the time such election or nomination was approved by the Board.

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                  CORPORATE TRANSACTION: either of the following
stockholder-approved transactions to which the Corporation is a party:

                           a.       a merger or consolidation in which
         securities possessing more than fifty percent (50%) of the total
         combined voting power of the Corporation's outstanding securities are
         transferred to a person or persons different from those persons holding
         such securities immediately prior to such transaction; or

                           b.       the sale, transfer or other disposition of
         all or substantially all of the Corporation's assets in complete
         liquidation or dissolution of the Corporation.

                  EFFECTIVE DATE: the date on which the Underwriting Agreement
is executed and the initial public offering price of the Common Stock is
established.

                  FAIR MARKET VALUE: the Fair Market Value per share of Common
Stock determined in accordance with the following provisions:

                           a.       If the Common Stock is at the time traded on
         the Nasdaq National Market, then the Fair Market Value shall be the
         closing selling price per share of Common Stock on the date in
         question, as such price is reported by the National Association of
         Securities Dealers on the Nasdaq National Market or any successor
         system. If there is no closing selling price for the Common Stock on
         the date in question, then the Fair Market Value shall be the closing
         selling price on the last preceding date for which such quotation
         exists.

                           b.       If the Common Stock is at the time listed on
         any Stock Exchange, then the Fair Market Value shall be the closing
         selling price per share of Common Stock on the date in question on the
         Stock Exchange determined by the Plan Administrator to be the primary
         market for the Common Stock, as such price is officially quoted in the
         composite tape of transactions on such exchange. If there is no closing
         selling price for the Common Stock on the date in question, then the
         Fair Market Value shall be the closing selling price on the last
         preceding date for which such quotation exists.

                           c.       For purposes of option grants made on the
         date of execution of the Underwriting Agreement, the Fair Market Value
         shall be deemed to be equal to the price per share at which the Common
         Stock is sold in the initial public offering pursuant to the
         Underwriting Agreement.

                  HOSTILE TAKE-OVER: a change in ownership of the Corporation
effected through the following transaction:

                           a.       the acquisition, directly or indirectly, by
         any person or related group of persons (other than the Corporation or a
         person that directly or indirectly controls, is controlled by, or is
         under common control with, the Corporation) of beneficial ownership
         (within the meaning of Rule 13d-3 of the 1934 Act) of securities
         possessing more than fifty percent (50%) of the total combined voting

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         power of the Corporation's outstanding securities pursuant to a tender
         or exchange offer made directly to the Corporation's stockholders which
         the Board does not recommend such stockholders to accept, AND

                           b.       more than fifty percent (50%) of the
         securities so acquired are accepted from persons other than Section 16
         Insiders.

                  1934 ACT: the Securities Exchange Act of 1934, as amended.

                  OPTIONEE: any person to whom an option is granted under the
Plan.

                  PERMANENT DISABILITY OR PERMANENTLY DISABLED: the inability of
the Optionee to engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment expected to result in death
or to be of continuous duration of twelve (12) months or more.

                  SECTION 16 INSIDER: an officer or director of the Corporation
subject to the short-swing profit liabilities of Section 16 of the 1934 Act.

                  STOCK EXCHANGE: either the American Stock Exchange or the New
York Stock Exchange.

                  TAKE-OVER PRICE: the GREATER of (a) the Fair Market Value per
share of Common Stock on the date the option is surrendered to the Corporation
in connection with a Hostile Take-Over or (b) the highest reported price per
share of Common Stock paid by the tender offeror in effecting such Hostile
Take-Over.

                  UNDERWRITING AGREEMENT: the agreement between the Corporation
and the underwriter or underwriters managing the initial public offering of the
Common Stock.

         III.     ADMINISTRATION OF THE PLAN

                  The terms and conditions of each automatic option grant
(including the timing and pricing of the option grant) shall be determined by
the express terms and conditions of the Plan, and neither the Board nor any
committee of the Board shall exercise any discretionary functions with respect
to option grants made pursuant to the Plan.

         IV.      STOCK SUBJECT TO THE PLAN

                  A.       Shares of Common Stock shall be available for
issuance under the Plan and shall be drawn from either the Corporation's
authorized but unissued shares of Common Stock or from reacquired shares of
Common Stock, including shares repurchased by the Corporation on the open
market. The number of shares of Common Stock reserved for issuance over the term
of the Plan shall be fixed at 525,000 shares, as adjusted to reflect stock
splits effected on March 1996 and October 1996 and the automatic increases on
January 1, 1996 through 2001.

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                  B.       The number of shares of Common Stock available for
issuance under the Plan shall automatically increase on the first trading day of
each calendar year during the term of the Plan, beginning with the 2002 calendar
year, by an additional 37,500 shares.

                  C.       Should one or more outstanding options under this
Plan expire or terminate for any reason prior to exercise in full, then the
shares subject to the portion of each option not so exercised shall be available
for subsequent option grant under the Plan. Shares subject to any option or
portion thereof surrendered in accordance with Article VII and all share
issuances under the Plan, whether or not the shares are subsequently repurchased
by the Corporation pursuant to its repurchase rights under the Plan, shall
reduce on a share-for-share basis the number of shares of Common Stock available
for subsequent option grant under the Plan. In addition, should the exercise
price of an outstanding option under the Plan be paid with shares of Common
Stock, then the number of shares of Common Stock available for issuance under
the Plan shall be reduced by the gross number of shares for which the option is
exercised, and not by the net number of shares of Common Stock actually issued
to the holder of such option.

                  D.       Should any change be made to the Common Stock
issuable under the Plan by reason of any stock split, stock dividend,
recapitalization, combination of shares, exchange of shares or other change
affecting the outstanding Common Stock as a class without the Corporation's
receipt of consideration, then appropriate adjustments shall be made to (i) the
maximum number and/or class of securities issuable under the Plan, (ii) the
number and/or class of securities by which the share reserve is to increase
automatically each calendar year, (iii) the number and/or class of securities
for which automatic option grants are to be subsequently made to each
newly-elected or continuing non-employee Board member under the Plan, and (iv)
the number and/or class of securities and price per share in effect under each
option outstanding under the Plan. The adjustments to the outstanding options
shall be made by the Board in a manner which shall preclude the enlargement or
dilution of rights and benefits under such options and shall be final, binding
and conclusive.

         V.       ELIGIBILITY

                  A.       ELIGIBLE OPTIONEES. The individuals eligible to
receive automatic option grants pursuant to the provisions of this Plan shall be
limited to (i) those individuals serving as non-employee Board members on the
Effective Date and who have not otherwise previously received a stock option
grant from the Corporation, (ii) those individuals who are first elected or
appointed as non-employee Board members after the Effective Date, whether
through appointment by the Board or election by the Corporation's stockholders,
and (iii) those individuals who are re-elected as non-employee Board members at
one or more Annual Meetings held after the Effective Date. A non-employee Board
member shall not be eligible to receive the initial automatic option grant under
clause (i) or clause (ii) if such individual has previously been in the employ
of the Corporation (or any parent or subsidiary). However, a non-employee Board
member shall be eligible to receive one or more clause (iii) option grants,
whether or not he or she has previously been in the employ of the Corporation
(or any parent or subsidiary). Each

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non-employee Board member eligible to participate in the Plan pursuant to the
foregoing criteria is hereby designated an Eligible Director.

                  B.       LIMITATION. Except for the grants to be made pursuant
to this Plan, non-employee Board members shall not be eligible to receive any
stock options, stock appreciation rights, direct stock issuances or other stock
awards under this Plan or any other stock plan of the Corporation or any parent
or subsidiary.

         VI.      TERMS AND CONDITIONS OF AUTOMATIC OPTION GRANTS

                  A.       GRANT DATE. Option grants shall be made on the dates
specified below:

                  -        Each individual who first becomes an Eligible
         Director on or after the 1998 Annual Meeting, whether through election
         by the Corporation's stockholders or appointment by the Board, shall
         automatically be granted, at the time of such initial election or
         appointment, a non-statutory option to purchase 20,000 shares of Common
         Stock.

                  -        On the date of each Annual Meeting, beginning with
         the 1998 Annual Meeting, each Eligible Director who serves on the Board
         at the time of that Annual Meeting, whether or not standing for
         re-election, shall automatically be granted a non-statutory option to
         purchase an additional 10,000 shares of Common Stock.

                  -        On the date of each Annual Meeting, beginning with
         the 1998 Annual Meeting, each Eligible Director who serves on a
         Committee of the Board, at the time of that Annual Meeting, whether or
         not standing for re-election, shall automatically be granted a
         non-statutory option to purchase an additional 5,000 shares of Common
         Stock.

                  There shall be no limit on the number of such annual
10,000-share option grants any one Eligible Director may receive over his or her
period of continued Board service, but no director may receive options to
purchase more than 10,000 shares each year for serving on Committees of the
Board.

                  B.       EXERCISE PRICE. The exercise price per share of
Common Stock subject to each automatic option grant shall be equal to one
hundred percent (100%) of the Fair Market Value per share of Common Stock on the
automatic grant date.

                  C.       PAYMENT.

                  The exercise price shall become immediately due upon exercise
of the option and shall be payable in one of the alternative forms specified
below:

                           (i)      full payment in cash or check made payable
         to the Corporation's order; or

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                           (ii)     full payment in shares of Common Stock held
         for the requisite period necessary to avoid a charge to the
         Corporation's earnings for financial-reporting purposes and valued at
         Fair Market Value on the Exercise Date (as such term is defined below);
         or

                           (iii)    full payment in a combination of shares of
         Common Stock held for the requisite period necessary to avoid a charge
         to the Corporation's earnings for financial-reporting purposes and
         valued at Fair Market Value on the Exercise Date and cash or check
         payable to the Corporation's order; or

                           (iv)     to the extent the option is exercised for
         vested shares, full payment through a broker-dealer sale and remittance
         procedure pursuant to which the non-employee Board member (i) shall
         provide irrevocable written instructions to a Corporation-designated
         brokerage firm to effect the immediate sale of the purchased shares and
         remit to the Corporation, out of the sale proceeds available on the
         settlement date, sufficient funds to cover the aggregate exercise price
         payable for the purchased shares and (ii) shall concurrently provide
         written directives to the Corporation to deliver the certificates for
         the purchased shares directly to such brokerage firm in order to
         complete the sale transaction.

                  For purposes of this Section VI.C, the Exercise Date shall be
the date on which written notice of the option exercise is delivered to the
Corporation. Except to the extent the sale and remittance procedure specified
above is utilized in connection with the exercise of the option for vested
shares, payment of the exercise price for the purchased shares must accompany
the exercise notice. However, if the option is exercised for any unvested
shares, then the Optionee must also execute and deliver to the Corporation a
stock purchase agreement for those unvested shares which provides the
Corporation with the right to repurchase, at the exercise price paid per share,
any unvested shares held by the Optionee at the time of his or her cessation of
Board service and which precludes the sale, transfer or other disposition of any
shares purchased under the option, to the extent those shares are at the time
subject to the Corporation's repurchase right.

                  D.       EXERCISABILITY/VESTING. Each automatic grant shall be
immediately exercisable for any or all of the option shares. Any shares
purchased under the option shall be subject to repurchase by the Corporation, at
the exercise price paid per share, upon the Optionee's cessation of Board
service prior to vesting in those shares in a series of 48 successive equal
monthly installments as such individual continues in Board service from the
grant date of that option.

                  Vesting of the option shares shall be subject to acceleration
as provided in Section VI.G and Article VII. In no event, however, shall any
additional option shares vest after the Optionee's cessation of Board service.

                  E.       OPTION TERM. Each automatic grant under the Plan
shall have a maximum term of ten (10) years measured from the automatic grant
date.

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                  F.       NON-TRANSFERABILITY. During the lifetime of the
Optionee, each automatic option grant, together with the limited stock
appreciation right pertaining to such option, shall be exercisable only by the
Optionee and shall not be assignable or transferable by the Optionee other than
a transfer of the option effected by will or by the laws of descent and
distribution following Optionee's death.

                  G.       EFFECT OF TERMINATION OF BOARD SERVICE.

                           1.       Should the Optionee cease to serve as a
Board member for any reason (other than death or Permanent Disability) while
holding one or more automatic option grants under the Plan, then such individual
shall have a six (6)-month period following the date of such cessation of Board
service in which to exercise each such option for any or all of the option
shares in which the Optionee is vested at the time of his or her cessation of
Board service. Each such option shall immediately terminate and cease to be
outstanding, at the time of such cessation of Board service, with respect to any
option shares in which the Optionee is not otherwise at that time vested.

                           2.       Should the Optionee die within six (6)
months after cessation of Board service, then any automatic option grant held by
the Optionee at the time of death may subsequently be exercised, for any or all
of the option shares in which the Optionee is vested at the time of his or her
cessation of Board service (less any option shares subsequently purchased by the
Optionee prior to death), by the personal representative of the Optionee's
estate or by the person or persons to whom the option is transferred pursuant to
the Optionee's will or in accordance with the laws of descent and distribution.
The right to exercise each such option shall lapse upon the expiration of the
twelve (12)-month period measured from the date of the Optionee's death.

                           3.       Should the Optionee die or become
Permanently Disabled while serving as a Board member, then any automatic option
grant held by the Optionee at the time of his or her death or Permanent
Disability may subsequently be exercised for any or all of the option shares in
which the Optionee is vested at that time plus an additional number of option
shares equal to the number of option shares (if any) in which the Optionee would
have vested had he or she continued in Board service until the next Annual
Meeting. The Optionee (or the personal representative of the Optionee's estate
or the person or persons to whom the option is transferred upon the Optionee's
death) shall have the right to exercise the option for such number of option
shares at any time prior to the expiration of the twelve (12)-month period
measured from the date of the Optionee's death or Permanent Disability.

                           4.       In no event shall any automatic grant under
this Plan remain exercisable after the expiration date of the maximum ten
(10)-year option term. Upon the expiration of the applicable post-service
exercise period under subparagraphs 1 through 3 above or (if earlier) upon the
expiration of the maximum ten (10)-year option term, the automatic grant shall
terminate and cease to be outstanding for any option shares in which the
Optionee was vested at the time of his or her cessation of Board service but for
which such option was not otherwise exercised.

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                  H.       STOCKHOLDER RIGHTS. The holder of an automatic option
grant shall have none of the rights of a stockholder with respect to any shares
subject to such option until such individual shall have exercised the option and
paid the exercise price for the purchased shares.

                  I.       REMAINING TERMS. The remaining terms and conditions
of each automatic option grant shall be as set forth in the form Stock Option
Agreement attached as Exhibit A.

         VII.     SPECIAL ACCELERATION EVENTS

                  A.       In the event of any Corporate Transaction, the shares
of Common Stock at the time subject to each outstanding option but not otherwise
vested shall automatically vest in full so that each such option shall,
immediately prior to the specified effective date for the Corporate Transaction,
become fully exercisable for all of the shares of Common Stock at the time
subject to that option and may be exercised for all or any portion of such
shares as fully-vested shares of Common Stock. Immediately following the
consummation of the Corporate Transaction, each automatic option grant under the
Plan shall terminate and cease to be outstanding, except to the extent assumed
by the successor corporation or its parent company.

                  B.       In connection with any Change in Control of the
Corporation, the shares of Common Stock at the time subject to each outstanding
option but not otherwise vested shall automatically vest in full so that each
such option shall, immediately prior to the specified effective date for the
Change in Control, become fully exercisable for all of the shares of Common
Stock at the time subject to that option and may be exercised for all or any
portion of such shares as fully-vested shares of Common Stock. Each such option
shall remain exercisable for such fully-vested option shares until the
expiration or sooner termination of the option term or the surrender of the
option in accordance with Section VII.C.

                  C.       Upon the occurrence of a Hostile Take-Over, the
Optionee shall have a thirty (30)-day period in which to surrender to the
Corporation each automatic option grant held by him or her for a period of at
least six (6) months. The Optionee shall in return be entitled to a cash
distribution from the Corporation in an amount equal to the excess of (i) the
Take-Over Price of the shares of Common Stock at the time subject to the
surrendered option (whether or not the Optionee is otherwise at the time vested
in those shares) over (ii) the aggregate exercise price payable for such shares.
Such cash distribution shall be paid within five (5) days following the
surrender of the option to the Corporation. No approval or consent of the Board
shall be required in connection with such option surrender and cash
distribution.

                  D.       The shares of Common Stock subject to each option
surrendered in connection with the Hostile Take-Over shall NOT be available for
subsequent option grant under this Plan.

                  E.       The automatic option grants outstanding under the
Plan shall in no way affect the right of the Corporation to adjust, reclassify,
reorganize or otherwise change its capital or business structure or to merge,
consolidate, dissolve, liquidate or sell or transfer all or any part of its
business or assets.

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         VIII.    AMENDMENT OF THE PLAN AND AWARDS

                  The Board has complete and exclusive power and authority to
amend or modify the Plan (or any component thereof) in any or all respects
whatsoever. However, no such amendment or modification shall adversely affect
rights and obligations with respect to options at the time outstanding under the
Plan, unless the affected Optionees consent to such amendment. Stockholder
approval shall be obtained to the extent required by applicable law.

         IX.      EFFECTIVE DATE AND TERM OF PLAN

                  A.       The Plan became effective immediately upon adoption
by the Board on the Effective Date. The Plan was amended on March 24, 1998 (A)
to decrease the number of shares of Common Stock to be awarded to new
non-employee directors from 30,000 to 20,000 shares, (B) to increase the annual
grants from 7,500 to 10,000 shares, (C) to provide for an option grant of 5,000
shares to each non-employee director serving on a Board committee (up to a
maximum of 10,000 shares each year for committee assignments), and (D) to modify
the vesting schedule such that all such options vest in 48 equal monthly
installments, subject to the approval of the stockholders at the 1998 Annual
Meeting. The 1998 amendment was approved by the Corporation's stockholders at
the 1998 Annual Meeting.

                  B.       The Plan shall terminate upon the EARLIER of (i)
January 16, 2005 or (ii) the date on which all shares available for issuance
under the Plan shall have been issued or cancelled pursuant to the exercise or
surrender of the options granted under the Plan. If the date of termination is
determined under clause (i) above, then all option grants and unvested stock
issuances outstanding on such date shall thereafter continue to have force and
effect in accordance with the provisions of the agreements evidencing those
option grants or stock issuances.

         X.       USE OF PROCEEDS

                  Any cash proceeds received by the Corporation from the sale of
shares pursuant to option grants or share issuances under the Plan shall be used
for general corporate purposes.

         XI.      REGULATORY APPROVALS

                  A.       The implementation of the Plan, the granting of any
option under the Plan and the issuance of Common Stock upon the exercise of the
option grants made hereunder shall be subject to the Corporation's procurement
of all approvals and permits required by regulatory authorities having
jurisdiction over the Plan, the options granted under it, and the Common Stock
issued pursuant to it.

                  B.       No shares of Common Stock or other assets shall be
issued or delivered under this Plan unless and until there shall have been
compliance with all applicable requirements of Federal and state securities
laws, including the filing and effectiveness of the Form S-8 registration
statement for the shares of Common Stock issuable under the Plan, and all

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applicable listing requirements of the Nasdaq National Market or any Stock
Exchange on which the Common Stock is then listed for trading.

         XII.     NO IMPAIRMENT OF RIGHTS

                  Neither the action of the Corporation in establishing the Plan
nor any provision of the Plan shall be construed or interpreted so as to affect
adversely or otherwise impair the right of the Corporation or the stockholders
to remove any individual from the Board at any time in accordance with the
provisions of applicable law.

         XIII.    MISCELLANEOUS PROVISIONS

                  A.       The right to acquire Common Stock or other assets
under the Plan may not be assigned, encumbered or otherwise transferred by any
Optionee.

                  B.       The provisions of the Plan relating to the exercise
of options and the vesting of shares shall be governed by the laws of the State
of California, as such laws are applied to contracts entered into and performed
in such State.

                  C.       The provisions of the Plan shall inure to the benefit
of, and be binding upon, the Corporation and its successors or assigns, whether
by Corporate Transaction or otherwise, and the Optionees, the legal
representatives of their respective estates, their respective heirs or legatees
and their permitted assignees.

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                                                          NON-EMPLOYEE DIRECTORS

                               REMEDY CORPORATION

                             STOCK OPTION AGREEMENT

RECITALS

                  A.       Remedy Corporation (the "Corporation") has approved
and implemented the 1995 Non-Employee Directors Stock Option Plan (the "Plan")
pursuant to which eligible non-employee members of the Corporation's Board of
Directors (the "Board") will automatically receive special option grants at
periodic intervals over their period of Board service in order to provide such
individuals with a meaningful incentive to continue to serve as a member of the
Board.

                  B.       Optionee is an eligible non-employee Board member,
and this Agreement is executed pursuant to, and is intended to carry out the
purposes of, the Plan in connection with the automatic grant of a stock option
to purchase shares of the Corporation's common stock ("Common Stock") under the
Plan.

                  C.       The granted option is intended to be a non-statutory
option which does NOT meet the requirements of Section 422 of the Internal
Revenue Code.

                  NOW, THEREFORE, it is hereby agreed as follows:

                  1.       GRANT OF OPTION. Subject to and upon the terms and
conditions set forth in this Agreement, there is hereby granted to Optionee, as
of the date of grant (the "Grant Date") specified in the accompanying Notice of
Grant of Automatic Stock Option (the "Grant Notice"), a stock option to purchase
up to that number of shares of Common Stock (the "Option Shares") as is
specified in the Grant Notice. The Option Shares shall be purchasable from time
to time during the option term at the price per share (the "Exercise Price")
specified in the Grant Notice.

                  2.       OPTION TERM. This option shall have a maximum term
of ten (10) years measured from the Grant Date and shall expire at the close
of business on the Expiration Date specified in the Grant Notice, unless
sooner terminated under Paragraph 5, 7 or 8.

                  3.       LIMITED TRANSFERABILITY. This option, together with
the special stock appreciation right provided under Paragraph 8.B, shall be
neither transferable nor assignable by Optionee, other than a transfer of this
option effected by will or by the laws of descent and distribution following
Optionee's death, and may be exercised, during Optionee's lifetime, only by
Optionee.

                  4.       EXERCISABILITY/VESTING.

                           A.       This option shall be immediately exercisable
for any or all of the Option Shares, whether or not the Option Shares are vested
in accordance with the Vesting

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Schedule set forth in Paragraph 4.B, and shall remain so exercisable until the
expiration or sooner termination of the option term.

                           B.       Optionee shall vest in the Option Shares in
48 equal monthly installments over his or her period of Board service measured
from the Grant Date. Vesting in the Option Shares may be accelerated pursuant to
the provisions of Paragraphs 5, 7 and 8. In no event, however, shall any
additional Option Shares vest following Optionee's cessation of service as a
Board member.

                  5.       CESSATION OF BOARD SERVICE. Should Optionee's service
as a Board member cease while this option remains outstanding, then the option
term specified in Paragraph 2 shall terminate (and this option shall cease to be
outstanding) prior to the Expiration Date in accordance with the following
provisions:

                  o        Should Optionee cease to serve as a Board member for
         any reason (other than death or permanent disability) while holding
         this option, then the period for exercising this option shall be
         reduced to a six (6)-month period commencing with the date of such
         cessation of Board service, but in no event shall this option be
         exercisable at any time after the Expiration Date. During such limited
         period of exercisability, this option may not be exercised for more
         than the number of Option Shares (if any) in which Optionee is vested
         on the date Optionee ceases service as a Board member. Upon the EARLIER
         of (i) the expiration of such six (6)-month period or (ii) the
         specified Expiration Date, the option shall terminate and cease to be
         exercisable with respect to any vested Option Shares for which the
         option has not been exercised.

                  o        Should Optionee die during the six (6)-month period
         following his or her cessation of Board service, then the personal
         representative of Optionee's estate or the person or persons to whom
         the option is transferred pursuant to Optionee's will or in accordance
         with the laws of descent and distribution shall have the right to
         exercise this option for any or all of the Option Shares in which
         Optionee is vested at the time of Optionee's cessation of Board service
         (less any Option Shares purchased by Optionee after such cessation of
         Board service but prior to death). Such right of exercise shall
         terminate, and this option shall accordingly cease to be exercisable
         for such vested Option Shares, upon the earlier of (i) the expiration
         of the twelve (12)-month period measured from the date of Optionee's
         death or (ii) the specified Expiration Date of the option term.

                  o        Should Optionee die or become permanently disabled
         while serving as a Board member, then this option may subsequently be
         exercised for any or all of the Option Shares in which Optionee is
         vested at the time of his or her death or permanent disability plus an
         additional number of Option Shares equal to the number of Option Shares
         (if any) in which Optionee would have vested had he or she continued in
         Board service until the next Annual Stockholders Meeting (the "Annual
         Meeting"). Optionee (or the personal representative of Optionee's
         estate or the person or persons to whom the option is transferred upon
         Optionee's death) shall

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         have the right to exercise the option for such number of Option Shares
         at any time prior to the earlier of (i) the expiration of the twelve
         (12)-month period measured from the date of Optionee's death or
         permanent disability or (ii) the specified Expiration Date of the
         option term.

                  o        Upon Optionee's cessation of Board service for any
         reason, this option shall immediately terminate and cease to be
         outstanding with respect to any and all Option Shares in which Optionee
         is not otherwise at that time vested in accordance with the normal
         Vesting Schedule set forth in the Grant Notice or the special vesting
         acceleration provisions of this Paragraph 5 or Paragraph 7 or 8 below.

                  o        For purposes of this Agreement, Optionee shall be
         deemed to be PERMANENTLY DISABLED if Optionee is unable to engage in
         any substantial gainful activity by reason of any medically
         determinable physical or mental impairment which can be expected to
         result in death or which has lasted or can be expected to last for a
         continuous period of twelve (12) months or more.

                  6.       ADJUSTMENT IN OPTION SHARES.

                           A.       Should any change be made to the Common
Stock issuable under the Plan by reason of any stock split, stock dividend,
recapitalization, combination of shares, exchange of shares or other change
affecting such Common Stock as a class without the Corporation's receipt of
consideration, then the number and class of securities purchasable under this
option and the Exercise Price payable per share shall be appropriately adjusted
to prevent the dilution or enlargement of Optionee's rights hereunder; PROVIDED,
however, the aggregate Exercise Price shall remain the same.

                           B.       Should this option be assumed in connection
with any Corporate Transaction under Paragraph 7, then this option shall be
appropriately adjusted to apply and pertain to the number and class of
securities which would have been issued to Optionee in the consummation of such
Corporate Transaction had the option been exercised immediately prior to such
Corporate Transaction. Appropriate adjustments shall also be made to the
Exercise Price payable per share, PROVIDED the aggregate Exercise Price payable
hereunder shall remain the same.

                  7.       CORPORATE TRANSACTION. In the event of either of the
following stockholder-approved transactions to which the Corporation is a party
(a "Corporate Transaction"):

                           (i)      a merger or consolidation in which
securities possessing more than fifty percent (50%) of the total combined voting
power of the Corporation's outstanding securities are transferred to a person or
persons different from the persons holding those immediately prior to such
transaction; or

                           (ii)     the sale, transfer or other disposition of
all or substantially all of the Corporation's assets in complete liquidation or
dissolution of the Corporation;

                                       3
<Page>

all Option Shares at the time subject to this option but not otherwise vested
shall automatically vest so that this option shall, immediately prior to the
specified effective date for the Corporate Transaction, become fully exercisable
for all of the Option Shares at the time subject to this option and may be
exercised for all or any portion of such shares as fully-vested shares of Common
Stock. Immediately following the consummation of the Corporate Transaction, this
option shall terminate and cease to be outstanding, except to the extent assumed
by the successor corporation or its parent company.

                  8.       CHANGE IN CONTROL/HOSTILE TAKE-OVER.

                           A.       All Option Shares subject to this option at
the time of a Change in Control (as defined below) but not otherwise vested
shall automatically vest so that this option shall, immediately prior to the
effective date of such Change in Control, become fully exercisable for all of
the Option Shares at the time subject to this option and may be exercised for
all or any portion of such shares as fully-vested shares of Common Stock. This
option shall remain exercisable for such fully-vested Option Shares until the
EARLIEST to occur of (i) the specified Expiration Date of the option term, (ii)
the sooner termination of this option in accordance with Paragraph 5 or 7 or
(iii) the surrender of this option under Paragraph 8.B.

                           B.       Provided this option has been outstanding
for at least six (6) months prior to the occurrence of a Hostile Take-Over (as
defined below), Optionee shall have an unconditional right (exercisable during
the thirty (30)-day period immediately following the consummation of such
Hostile Take-Over) to surrender this option to the Corporation in exchange for a
cash distribution from the Corporation in an amount equal to the excess of (i)
the Take-Over Price (as defined below) of the Option Shares at the time subject
to the surrendered option (whether or not those Option Shares are otherwise at
the time vested) over (ii) the aggregate Exercise Price payable for such shares.

                  To exercise this limited stock appreciation right, Optionee
must, during the applicable thirty (30)-day exercise period, provide the
Corporation with written notice of the option surrender in which there is
specified the number of Option Shares as to which the option is being
surrendered. Such notice must be accompanied by the return of Optionee's copy of
this Agreement, together with any written amendments to such Agreement. The cash
distribution shall be paid to Optionee within five (5) days following such
delivery date, and no approval or consent of the Board shall be required in
connection with such option surrender and cash distribution. Upon receipt of
such cash distribution, this option shall be cancelled with respect to the
shares subject to the surrendered option (or the surrendered portion), and
Optionee shall cease to have any further right to acquire those Option Shares
under this Agreement. The option shall, however, remain outstanding for the
balance of the Option Shares (if any) in accordance with the terms and
provisions of this Agreement, and the Corporation shall accordingly issue a new
stock option agreement (substantially in the same form of this Agreement) for
those remaining Option Shares.

                  This limited stock appreciation right shall in all events
terminate upon the expiration or sooner termination of the option term and may
not be assigned or transferred by Optionee.

                                       4
<Page>

                           C.       For purposes of this Agreement, the
following definitions shall be in effect:

                  A CHANGE IN CONTROL shall be deemed to occur in the event:

                           (i)      any person or related group of persons
(other than the Corporation or a person that directly or indirectly controls, is
controlled by, or is under common control with, the Corporation) directly or
indirectly acquires beneficial ownership (within the meaning of Rule 13d-3 of
the Securities Exchange Act of 1934, as amended (the "1934 Act")) of securities
possessing more than fifty percent (50%) of the total combined voting power of
the Corporation's outstanding securities pursuant to a tender or exchange offer
made directly to the Corporation's stockholders which the Board does not
recommend such stockholders to accept; or

                           (ii)     there is a change in the composition of the
Board over a period of thirty-six (36) consecutive months or less such that a
majority of the Board members ceases, by reason of one or more contested
elections for Board membership, to be comprised of individuals who either (A)
have been Board members continuously since the beginning of such period or (B)
have been elected or nominated for election as Board members during such period
by at least a majority of the Board members described in clause (A) who were
still in office at the time such election or nomination was approved by the
Board.

                  A HOSTILE TAKE-OVER shall be deemed to occur in the event (i)
any person or related group of persons (other than the Corporation or a person
that directly or indirectly controls, is controlled by, or is under common
control with, the Corporation) directly or indirectly acquires beneficial
ownership (within the meaning of Rule 13d-3 of the 1934 Act) of securities
possessing more than fifty percent (50%) of the total combined voting power of
the Corporation's outstanding securities pursuant to a tender or exchange offer
made directly to the Corporation's stockholders which the Board does not
recommend such stockholders to accept, AND more than fifty percent (50%) of the
securities so acquired in such tender or exchange offer are accepted from
holders other than the officers and directors of the Corporation subject to the
short-swing profit restrictions of Section 16 of the 1934 Act.

                  The TAKE-OVER PRICE per share shall be deemed to be equal to
the GREATER of (a) the Fair Market Value per share of Common Stock on the date
the option is surrendered to the Corporation in connection with a Hostile
Take-Over, as determined in accordance with the valuation provisions of
Paragraph 9.B, or (b) the highest reported price per share of Common Stock paid
by the tender offeror in effecting such Hostile Take-Over.

                  9.       MANNER OF EXERCISING OPTION.

                           A.       In order to exercise this option for all or
any part of the Option Shares for which the option is at the time exercisable,
Optionee (or in the case of exercise after Optionee's death, Optionee's
executor, administrator, heir or legatee, as the case may be) must take the
following actions:

                                       5
<Page>

                           (i)      To the extent the option is exercised for
vested Option Shares, the Secretary of the Corporation shall be provided with
written notice of the option exercise (the "Exercise Notice"), in substantially
the form of Exhibit I attached hereto, in which there is specified the number of
vested Option Shares which are to be purchased under the exercised option. To
the extent the option is exercised for one or more unvested Option Shares,
Optionee (or other person exercising the option) shall deliver to the Secretary
of the Corporation a stock purchase agreement (in form and substance
satisfactory to the Corporation) which grants the Corporation the right to
repurchase, at the Exercise Price, any and all unvested Option Shares held by
Optionee at the time of his or her cessation of Board service and which
precludes the sale, transfer or other disposition of any purchased Option Shares
while they remain subject to such repurchase right ("the Purchase Agreement").

                           (ii)     The aggregate Exercise Price for the
purchased shares shall be paid in one of the following alternative forms:

                  o        full payment in cash or check made payable to the
         Corporation's order; or

                  o        full payment in shares of Common Stock held by
         Optionee for the requisite period necessary to avoid a charge to the
         Corporation's earnings for financial reporting purposes and valued at
         Fair Market Value on the Exercise Date; or

                  o        full payment in a combination of shares of Common
         Stock held for the requisite period necessary to avoid a charge to the
         Corporation's earnings for financial reporting purposes and valued at
         Fair Market Value on the Exercise Date and cash or check made payable
         to the Corporation's order; or

                  o        to the extent the option is exercised for vested
         Option Shares, full payment effected through a broker-dealer sale and
         remittance procedure pursuant to which Optionee shall provide
         irrevocable written instructions (A) to a Corporation-designated
         brokerage firm to effect the immediate sale of the vested shares
         purchased under the option and remit to the Corporation, out of the
         sale proceeds available on the settlement date, sufficient funds to
         cover the aggregate Exercise Price payable for those shares and (B) to
         the Corporation to deliver the certificates for the purchased shares
         directly to such brokerage firm in order to complete the sale.

                           (iii)    Appropriate documentation evidencing the
right to exercise this option shall be furnished the Corporation if the person
or persons exercising the option is other than Optionee.

                           B.       For purposes of Subparagraph 9.A above and
for all other valuation purposes under this Agreement, the Fair Market Value per
share of Common Stock on any relevant date shall be determined in accordance
with the following provisions:

                                       6
<Page>

                  o        If the Common Stock is not at the time listed or
         admitted to trading on any national securities exchange but is traded
         on the Nasdaq National Market, the Fair Market Value shall be the
         closing selling price per share on the date in question, as such price
         is reported by the National Association of Securities Dealers on the
         Nasdaq National Market or any successor system. If there is no reported
         closing selling price for the Common Stock on the date in question,
         then the closing selling price on the last preceding date for which
         such quotation exists shall be determinative of Fair Market Value.

                  o        If the Common Stock is at the time listed or admitted
         to trading on any national securities exchange, then the Fair Market
         Value shall be the closing selling price per share on the date in
         question on the exchange serving as the primary market for the Common
         Stock, as such price is officially quoted in the composite tape of
         transactions on such exchange. If there is no reported sale of Common
         Stock on such exchange on the date in question, then the Fair Market
         Value shall be the closing selling price on the exchange on the last
         preceding date for which such quotation exists.

                           C.       The Exercise Date shall be the date on which
the Exercise Notice is delivered to the Secretary of the Corporation, together
with the appropriate Purchase Agreement for any unvested shares acquired under
the option. Except to the extent the sale and remittance procedure specified
above is utilized in connection with the exercise of the option for vested
shares, payment of the Exercise Price for the purchased shares must accompany
such notice.

                           D.       As soon as practical after the Exercise
Date, the Corporation shall issue to or on behalf of Optionee (or other person
or persons exercising this option) a certificate or certificates representing
the purchased Option Shares. To the extent any such Option Shares are unvested,
the certificates for those Option Shares shall be endorsed with an appropriate
legend evidencing the Corporation's repurchase rights and may be held in escrow
with the Corporation until such shares vest.

                           E.       In no event may this option be exercised for
any fractional share.

                  10.      STOCKHOLDER RIGHTS. The holder of this option shall
not have any of the rights of a stockholder with respect to the Option Shares
until such individual shall have exercised this option and paid the Exercise
Price for the purchased shares.

                  11.      NO IMPAIRMENT OF RIGHTS. This Agreement shall not in
any way affect the right of the Corporation to adjust, reclassify, reorganize or
otherwise make changes in its capital or business structure or to merge,
consolidate, dissolve, liquidate or sell or transfer all or any part of its
business or assets. Nor shall this Agreement in any way be construed or
interpreted so as to affect adversely or otherwise impair the right of the
Corporation or the stockholders to remove Optionee from the Board at any time in
accordance with the provisions of applicable law.

                                       7
<Page>

                  12.      COMPLIANCE WITH LAWS AND REGULATIONS. The exercise of
this option and the issuance of the Option Shares upon such exercise shall be
subject to compliance by the Corporation and Optionee with all applicable
requirements of law relating thereto and with all applicable regulations of any
securities exchange on which shares of the Common Stock may be listed for
trading at the time of such exercise and issuance.

                  13.      SUCCESSORS AND ASSIGNS. Except to the extent
otherwise provided in Paragraph 3 or 7, the provisions of this Agreement shall
inure to the benefit of, and be binding upon, the successors, administrators,
heirs, legal representatives and assigns of Optionee and the Corporation's
successors and assigns.

                  14.      DISCHARGE OF LIABILITY. The inability of the
Corporation to obtain approval from any regulatory body having authority deemed
by the Corporation to be necessary to the lawful issuance and sale of any Common
Stock pursuant to this option shall relieve the Corporation of any liability
with respect to the non-issuance or sale of the Common Stock as to which such
approval shall not have been obtained. However, the Corporation shall use its
best efforts to obtain all such applicable approvals.

                  15.      NOTICES. Any notice required to be given or delivered
to the Corporation under the terms of this Agreement shall be in writing and
addressed to the Corporation 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 below Optionee's signature line on the
Grant Notice. All notices shall be deemed effective upon personal delivery or
upon deposit in the U.S. mail, postage prepaid and properly addressed to the
party to be notified.

                  16.      CONSTRUCTION/GOVERNING LAW. This Agreement and the
option evidenced hereby are made and granted pursuant to the Plan and are in all
respects limited by and subject to the express terms and provisions of the Plan.
The interpretation, performance, and enforcement of this Agreement shall be
governed by the laws of the State of California without resort to that State's
conflict-of-laws rules.

                                       8
<Page>

                                    EXHIBIT I

                              NOTICE OF EXERCISE OF
                           NON-STATUTORY STOCK OPTION

                  I hereby notify Remedy Corporation (the "Corporation") that I
elect to purchase ___________ shares of Common Stock of the Corporation (the
"Purchased Shares") pursuant to that certain option (the "Option") granted to me
on _________________, to purchase up to __________ shares of the Corporation's
Common Stock at an exercise price of $________ per share (the "Exercise Price").

                  Concurrently with the delivery of this Exercise Notice to the
Secretary of the Corporation, I shall hereby pay to the Corporation the Exercise
Price for the Purchased Shares in accordance with the provisions of my agreement
with the Corporation evidencing the Option and shall deliver whatever additional
documents may be required by such agreement as a condition for exercise.
Alternatively, I may utilize the special broker/dealer sale and remittance
procedure specified in my agreement to effect payment of the Exercise Price for
any Purchased Shares in which I am vested at the time of exercise.

--------------------------                    ----------------------------------
Date                                            Optionee

                             Address:         ----------------------------------

                                              ----------------------------------

Print name in exact manner
it is to appear on the
stock certificate:                            ----------------------------------

Address to which certificate
is to be sent, if different
from address above:                           ----------------------------------

                                              ----------------------------------

Social Security Number:                       ----------------------------------

                                      E-1
<Page>

                               REMEDY CORPORATION

                                 NOTICE OF GRANT
                                       OF
                             AUTOMATIC STOCK OPTION

                  Notice is hereby given of the following stock option (the
"Option") to purchase shares of the common stock of Remedy Corporation (the
"Corporation") which has been granted pursuant to the Corporation's 1995
Non-Employee Directors Stock Option Plan (the "Plan"):

                  OPTIONEE:

                  GRANT DATE:

                  TYPE OF OPTION:                    Non-Statutory Stock Option

                  EXERCISE PRICE:                    $_______ per share

                  NUMBER OF OPTION SHARES:           2,500 shares

                  EXPIRATION DATE:

                  EXERCISE SCHEDULE: The Option is immediately exercisable for
                  all of the Option Shares.

                  VESTING SCHEDULE: The Option Shares shall be unvested and
                  subject to repurchase by the Corporation, at the Exercise
                  Price paid per share, upon Optionee's cessation of service as
                  a member of the Corporation's Board of Directors (the
                  "Board"). Optionee shall acquire a vested interest in all the
                  Option Shares, and the Corporation's repurchase right shall
                  lapse in its entirety, on the date immediately prior to the
                  fourth Annual Stockholders Meeting following the Grant Date of
                  this Option, provided Optionee continues to serve on the Board
                  through that vesting date. However, the vesting of the Option
                  Shares shall be subject to acceleration in accordance with the
                  terms of the attached Stock Option Agreement.

                  Optionee understands and agrees that the Option is granted
subject to and in accordance with the express terms and conditions of the Plan.
Optionee further agrees to be bound by the terms and conditions of the Plan and
the terms and conditions of the Option as set forth in the Stock Option
Agreement attached hereto as EXHIBIT A.

                  Optionee hereby acknowledges receipt of a copy of the official
Plan Summary and Prospectus attached hereto as EXHIBIT B. A copy of the Plan is
available upon request made to the Corporate Secretary at the Corporate Offices
at 1965 Landings Drive, Mountain View, CA 94043.

<Page>

                  REPURCHASE RIGHT. OPTIONEE HEREBY AGREES THAT ALL UNVESTED
OPTION SHARES ACQUIRED UPON THE EXERCISE OF THE OPTION SHALL NOT BE TRANSFERABLE
AND SHALL BE SUBJECT TO REPURCHASE BY THE CORPORATION AND ITS ASSIGNS, AT THE
EXERCISE PRICE PAID PER SHARE, UPON OPTIONEE'S TERMINATION OF SERVICE WITH THE
CORPORATION. THE TERMS AND CONDITIONS OF SUCH REPURCHASE RIGHT SHALL BE SET
FORTH IN A STOCK PURCHASE AGREEMENT, IN FORM AND SUBSTANCE SATISFACTORY TO THE
CORPORATION, EXECUTED BY OPTIONEE AT THE TIME OF THE OPTION EXERCISE.

                  No provision of this Notice of Grant or the attached Stock
Option Agreement shall in any way be construed or interpreted so as to affect
adversely or otherwise impair the right of the Corporation or the stockholders
to remove Optionee from the Board at any time in accordance with the provisions
of applicable law.

DATED:   ______________________,  199___

                                 REMEDY CORPORATION

                                 By:
                                        ----------------------------------------

                                 Title:
                                        ----------------------------------------

                                 -----------------------------------------------
                                 OPTIONEE

                                 Address:
                                          --------------------------------------

                                          --------------------------------------

ATTACHMENTS:
EXHIBIT A:  STOCK OPTION AGREEMENT
EXHIBIT B:  PLAN SUMMARY AND PROSPECTUS

                                       2
<Page>

                                    EXHIBIT A

                             STOCK OPTION AGREEMENT

<Page>

                                    EXHIBIT B

                           PLAN SUMMARY AND PROSPECTUS<Page>

                                                                   EXHIBIT 10.33

                               REMEDY CORPORATION

                       2000 SUPPLEMENTAL STOCK OPTION PLAN

                          (AS ADOPTED OCTOBER 23, 2000)

<Page>

                                TABLE OF CONTENTS

<Table>
<Caption>

                                                                        Page

<S>                                                                     <C>
ARTICLE I.  INTRODUCTION...................................................1

ARTICLE II.  ADMINISTRATION................................................1
         2.1  Committee Composition........................................1
         2.2  Committee Responsibilities...................................1

ARTICLE III.  SHARES AVAILABLE FOR GRANTS..................................1
         3.1  Basic Limitation.............................................1
         3.3  Additional Shares............................................1
         3.4  Dividend Equivalents.........................................2

ARTICLE IV.  ELIGIBILITY...................................................2
         4.1  Other Grants.................................................2

ARTICLE V.  OPTIONS 2
         5.1  Stock Option Agreement.......................................2
         5.2  Number of Shares.............................................2
         5.3  Exercise Price...............................................2
         5.4  Exercisability and Term......................................2
         5.5  Modification or Assumption of Options........................2
         5.6  Buyout Provisions............................................2

ARTICLE VI.  PAYMENT FOR OPTION SHARES.....................................3
         6.1  General Rule.................................................3
         6.2  Surrender of Stock...........................................3
         6.3  Exercise/Sale................................................3
         6.4  Exercise/Pledge..............................................3
         6.5  Promissory Note..............................................3
         6.6  Other Forms of Payment.......................................3

ARTICLE VII.  RESTRICTED SHARES............................................4
         7.1  Restricted Stock Agreement...................................4
         7.2  Payment for Awards...........................................4
         7.3  Vesting Conditions...........................................4
         7.4  Voting and Dividend Rights...................................4

ARTICLE VIII.  CHANGE IN CONTROL...........................................4
         8.1  Effect of Change in Control..................................4
         8.2  Involuntary Termination......................................4

ARTICLE IX.  PROTECTION AGAINST DILUTION...................................5
         9.1  Adjustments..................................................5

                                      -i-
<Page>

         9.2  Dissolution or Liquidation...................................5
         9.3  Reorganizations..............................................5

ARTICLE X.  DEFERRAL OF AWARDS.............................................5

ARTICLE XI.  LIMITATION ON RIGHTS..........................................6
         11.1  Retention Rights............................................6
         11.2  Stockholders' Rights........................................6
         11.3  Regulatory Requirements.....................................6

ARTICLE XII.  WITHHOLDING TAXES............................................6
         12.1  General.....................................................6
         12.2  Share Withholding...........................................6

ARTICLE XIII.  FUTURE OF THE PLAN..........................................7
         13.1  Term of the Plan............................................7
         13.2  Amendment or Termination....................................7

ARTICLE XIV.  DEFINITIONS..................................................7

</Table>

                                      -ii-
<Page>

                               REMEDY CORPORATION
                       2000 SUPPLEMENTAL STOCK OPTION PLAN

ARTICLE I.    INTRODUCTION.

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

         The Plan shall be governed by, and construed in accordance with, the
laws of the State of Delaware (except their choice-of-law provisions).

ARTICLE  II.  ADMINISTRATION.

         2.1      COMMITTEE COMPOSITION. The Plan shall be administered by the
Committee. The Committee shall consist exclusively of one or more directors of
the Company, who shall be appointed by the Board.

         2.2      COMMITTEE RESPONSIBILITIES. The Committee shall (a) select the
Employees and Consultants who are to receive awards under the Plan, (b)
determine the type, number, vesting requirements and other features and
conditions of such awards, (c) interpret the Plan and (d) make all other
decisions relating to the operation of the Plan. The Committee may adopt such
rules or guidelines as it deems appropriate to implement the Plan. The
Committee's determinations under the Plan shall be final and binding on all
persons.

ARTICLE III.  SHARES AVAILABLE FOR GRANTS.

         3.1      BASIC LIMITATION. Shares of Common Stock issued pursuant to
the Plan may be authorized but unissued shares or treasury shares or re-acquired
shares. The aggregate number of Options and Restricted Shares awarded under the
Plan shall not exceed (a) 3,000,000, plus (b) the additional shares of Common
Stock described in Sections 3.2 and 3.3. The limitations of this Section 3.1 and
Section 3.2 shall be subject to adjustment pursuant to Article 9.

         3.2      ADDITIONAL SHARES. If Restricted Shares or shares of Common
Stock issued upon the exercise of Options are forfeited, then such shares of
Common Stock shall again become available for awards under the Plan. If Options
are forfeited or terminate for any other reason before being exercised, then the
corresponding shares of Common Stock shall again become available for awards
under the Plan.

<Page>

         3.3      DIVIDEND EQUIVALENTS. Any dividend equivalents paid or
credited under the Plan shall not be applied against the number of Restricted
Shares or Options available for awards.

ARTICLE IV.   ELIGIBILITY.

         4.1      OTHER GRANTS. Employees and Consultants shall be eligible for
the grant of Restricted Shares and NSOs. Outside Directors and Executive
Officers shall not be eligible for awards under the Plan.

ARTICLE V.    OPTIONS.

         5.1      STOCK OPTION AGREEMENT. Each grant of an Option under the Plan
shall be evidenced by a Stock Option Agreement between the Optionee and the
Company. Such Option shall be subject to all applicable terms of the Plan and
may be subject to any other terms that are not inconsistent with the Plan. The
provisions of the various Stock Option Agreements entered into under the Plan
need not be identical. Options may be granted in consideration of a reduction in
the Optionee's other compensation. A Stock Option Agreement may provide that a
new Option will be granted automatically to the Optionee when he or she
exercises a prior Option and pays the Exercise Price in the form described in
Section 6.2.

         5.2      NUMBER OF SHARES. Each Stock Option Agreement shall specify
the number of shares of Common Stock subject to the Option and shall provide for
the adjustment of such number in accordance with Article 9.

         5.3      EXERCISE PRICE. Each Stock Option Agreement shall specify the
Exercise Price; provided that the Exercise Price under an NSO shall in no event
be less than 25% of the Fair Market Value of a Common Share on the date of
grant. A Stock Option Agreement may specify an Exercise Price that varies in
accordance with a predetermined formula while the NSO is outstanding.

         5.4      EXERCISABILITY AND TERM. Each Stock Option Agreement shall
specify the date or event when all or any installment of the Option is to become
exercisable. The Stock Option Agreement shall also specify the term of the
Option. A Stock Option Agreement may provide for accelerated exercisability in
the event of the Optionee's death, disability or retirement or other events and
may provide for expiration prior to the end of its term in the event of the
termination of the Optionee's service.

         5.5      MODIFICATION OR ASSUMPTION OF OPTIONS. Within the limitations
of the Plan, the Committee may modify, extend or assume outstanding options or
may accept the cancellation of outstanding options (whether granted by the
Company or by another issuer) in return for the grant of new options for the
same or a different number of shares and at the same or a different exercise
price. The foregoing notwithstanding, no modification of an Option shall,
without the consent of the Optionee, alter or impair his or her rights or
obligations under such Option.

         5.6      BUYOUT PROVISIONS. The Committee may at any time (a) offer to
buy out for a payment in cash or cash equivalents an Option previously granted
or (b) authorize an

                                      -2-
<Page>

Optionee to elect to cash out an Option previously granted, in either case at
such time and based upon such terms and conditions as the Committee shall
establish.

ARTICLE VI.   PAYMENT FOR OPTION SHARES.

         6.1      GENERAL RULE. The entire Exercise Price of shares of Common
Stock issued upon exercise of Options shall be payable in cash or cash
equivalents at the time when such shares of Common Stock are purchased and the
Committee may at any time accept payment in any form(s) described in this
Article 6.

         6.2      SURRENDER OF STOCK. To the extent that this Section 6.2 is
applicable, all or any part of the Exercise Price may be paid by surrendering,
or attesting to the ownership of, shares of Common Stock that are already owned
by the Optionee. Such shares of Common Stock shall be valued at their Fair
Market Value on the date when the new shares of Common Stock are purchased under
the Plan. The Optionee shall not surrender, or attest to the ownership of,
shares of Common Stock in payment of the Exercise Price if such action would
cause the Company to recognize compensation expense (or additional compensation
expense) with respect to the Option for financial reporting purposes.

         6.3      EXERCISE/SALE. To the extent that this Section 6.3 is
applicable, all or any part of the Exercise Price and any withholding taxes may
be paid by delivering (on a form prescribed by the Company) an irrevocable
direction to a securities broker approved by the Company to sell all or part of
the shares of Common Stock being purchased under the Plan and to deliver all or
part of the sales proceeds to the Company.

         6.4      EXERCISE/PLEDGE. To the extent that this Section 6.4 is
applicable, all or any part of the Exercise Price and any withholding taxes may
be paid by delivering (on a form prescribed by the Company) an irrevocable
direction to pledge all or part of the shares of Common Stock being purchased
under the Plan to a securities broker or lender approved by the Company, as
security for a loan, and to deliver all or part of the loan proceeds to the
Company.

         6.5      PROMISSORY NOTE. To the extent that this Section 6.5 is
applicable, all or any part of the Exercise Price and any withholding taxes may
be paid by delivering (on a form prescribed by the Company) a full-recourse
promissory note. However, the par value of the shares of Common Stock being
purchased under the Plan, if newly issued, shall be paid in cash or cash
equivalents.

         6.6      OTHER FORMS OF PAYMENT. To the extent that this Section 6.6 is
applicable, all or any part of the Exercise Price and any withholding taxes may
be paid in any other form that is consistent with applicable laws, regulations
and rules.

                                      -3-
<Page>

ARTICLE VII.  RESTRICTED SHARES.

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

         7.2      PAYMENT FOR AWARDS. Subject to the following sentence,
Restricted Shares may be sold or awarded under the Plan for such consideration
as the Committee may determine, including (without limitation) cash, cash
equivalents, full-recourse promissory notes, past services and future services.
To the extent that an award consists of newly issued Restricted Shares, the
consideration shall consist exclusively of cash, cash equivalents or past
services rendered to the Company (or a Parent or Subsidiary) or, for the amount
in excess of the par value of such newly issued Restricted Shares, full-recourse
promissory notes, as the Committee may determine.

         7.3      VESTING CONDITIONS. Each award of Restricted Shares may or may
not be subject to vesting. Vesting shall occur, in full or in installments, upon
satisfaction of the conditions specified in the Restricted Stock Agreement. A
Restricted Stock Agreement may provide for accelerated vesting in the event of
the Participant's death, disability or retirement or other events.

         7.4      VOTING AND DIVIDEND RIGHTS. The holders of Restricted Shares
awarded under the Plan shall have the same voting, dividend and other rights as
the Company's other stockholders. A Restricted Stock Agreement, however, may
require that the holders of Restricted Shares invest any cash dividends received
in additional Restricted Shares. Such additional Restricted Shares shall be
subject to the same conditions and restrictions as the award with respect to
which the dividends were paid.

ARTICLE VIII. CHANGE IN CONTROL.

         8.1      EFFECT OF CHANGE IN CONTROL. In the event of any Change in
Control, each outstanding award shall automatically accelerate so that each such
award shall, immediately prior to the effective date of the Change in Control,
become fully exercisable for all of the shares of Common Stock at the time
subject to such award and may be exercised for any or all of those shares as
fully-vested shares of Common Stock. However, an outstanding award shall NOT so
accelerate if and to the extent such award is, in connection with the Change in
Control, either to be assumed by the successor corporation (or parent thereof)
or to be replaced with a comparable award for shares of the capital stock of the
successor corporation (or parent thereof). The determination of award
comparability shall be made by the Plan Administrator, and its determination
shall be final, binding and conclusive.

         8.2      INVOLUNTARY TERMINATION. In addition, in the event that the
award is assumed by the successor corporation (or parent thereof) and the
Participant experiences an Involuntary Termination within eighteen months
following a Change in Control, each outstanding award shall automatically
accelerate so that each such award shall, immediately

                                      -4-
<Page>

prior to the effective date of the Involuntary Termination, become fully
exercisable for all of the shares of Common Stock at the time subject to such
award and may be exercised for any or all of those shares as fully-vested shares
of Common Stock.

ARTICLE IX.   PROTECTION AGAINST DILUTION.

         9.1      ADJUSTMENTS. In the event of a subdivision of the outstanding
shares of Common Stock, a declaration of a dividend payable in shares of Common
Stock, a declaration of a dividend payable in a form other than shares of Common
Stock in an amount that has a material affect on the price of shares of Common
Stock, a combination or consolidation of the outstanding shares of Common Stock
(by reclassification or otherwise) into a lesser number of shares of Common
Stock, a recapitalization, a spin-off or a similar occurrence, the Committee
shall make such adjustments as it deems appropriate in order to prevent the
dilution or enlargement of benefits thereunder, in one or more of:

                  (a)      The number of Options or Restricted Shares available
for future awards under Article 3;

                  (b)      The number of shares of Common Stock covered by each
outstanding Option; or

                  (c)      The Exercise Price under each outstanding Option.

Except as provided in this Article 9, a Participant shall have no rights by
reason of any issue by the Company of stock of any class or securities
convertible into stock of any class, any subdivision or consolidation of shares
of stock of any class, the payment of any stock dividend or any other increase
or decrease in the number of shares of stock of any class.

         9.2      DISSOLUTION OR LIQUIDATION. To the extent not previously
exercised or settled, Options shall terminate immediately prior to the
dissolution or liquidation of the Company.

         9.3      REORGANIZATIONS. In the event that the Company is a party to a
merger or other reorganization, outstanding awards shall be subject to the
agreement of merger or reorganization. Such agreement shall provide for (a) the
continuation of the outstanding awards by the Company, if the Company is a
surviving corporation, (b) the assumption of the outstanding awards by the
surviving corporation or its parent or subsidiary, (c) the substitution by the
surviving corporation or its parent or subsidiary of its own awards for the
outstanding awards, (d) full exercisability or vesting and accelerated
expiration of the outstanding awards or (e) settlement of the full value of the
outstanding awards in cash or cash equivalents followed by cancellation of such
awards.

ARTICLE X.    DEFERRAL OF AWARDS.

         The Committee (in its sole discretion) may permit or require a
Participant to have shares of Common Stock that otherwise would be delivered to
such Participant as a result of the exercise of an Option converted into amounts
credited to a deferred compensation account established for such Participant by
the Committee as an entry on the Company's books. Such

                                      -5-
<Page>

amounts shall be determined by reference to the Fair Market Value of such shares
of Common Stock as of the date when they otherwise would have been delivered to
such Participant.

         A deferred compensation account established under this Article 10 may
be credited with interest or other forms of investment return, as determined by
the Committee. A Participant for whom such an account is established shall have
no rights other than those of a general creditor of the Company. Such an account
shall represent an unfunded and unsecured obligation of the Company and shall be
subject to the terms and conditions of the applicable agreement between such
Participant and the Company. If the deferral or conversion of awards is
permitted or required, the Committee (in its sole discretion) may establish
rules, procedures and forms pertaining to such awards, including (without
limitation) the settlement of deferred compensation accounts established under
this Article 10.

ARTICLE XI.   LIMITATION ON RIGHTS.

         11.1     RETENTION RIGHTS. Neither the Plan nor any award granted under
the Plan shall be deemed to give any individual a right to remain an Employee or
Consultant. The Company and its Parents, Subsidiaries and Affiliates reserve the
right to terminate the service of any Employee, or Consultant at any time, with
or without cause, subject to applicable laws, the Company's certificate of
incorporation and by-laws and a written employment agreement (if any).

         11.2     STOCKHOLDERS' RIGHTS. A Participant shall have no dividend
rights, voting rights or other rights as a stockholder with respect to any
shares of Common Stock covered by his or her award prior to the time when a
stock certificate for such shares of Common Stock is issued or, if applicable,
the time when he or she becomes entitled to receive such shares of Common Stock
by filing any required notice of exercise and paying any required Exercise
Price. No adjustment shall be made for cash dividends or other rights for which
the record date is prior to such time, except as expressly provided in the Plan.

         11.3     REGULATORY REQUIREMENTS. Any other provision of the Plan
notwithstanding, the obligation of the Company to issue shares of Common Stock
under the Plan shall be subject to all applicable laws, rules and regulations
and such approval by any regulatory body as may be required. The Company
reserves the right to restrict, in whole or in part, the delivery of shares of
Common Stock pursuant to any award prior to the satisfaction of all legal
requirements relating to the issuance of such shares of Common Stock, to their
registration, qualification or listing or to an exemption from registration,
qualification or listing.

ARTICLE XII.  WITHHOLDING TAXES.

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

         12.2     SHARE WITHHOLDING. The Committee may permit a Participant to
satisfy all or part of his or her withholding or income tax obligations by
having the Company withhold

                                      -6-
<Page>

all or a portion of any shares of Common Stock that otherwise would be issued to
him or her or by surrendering all or a portion of any shares of Common Stock
that he or she previously acquired. Such shares of Common Stock shall be valued
at their Fair Market Value on the date when taxes otherwise would be withheld in
cash.

ARTICLE XIII. FUTURE OF THE PLAN.

         13.1     TERM OF THE PLAN. The Plan, as set forth herein, shall become
effective on February 15, 2000. The Plan shall remain in effect until it is
terminated under Section 13.2.

         13.2     AMENDMENT OR TERMINATION. The Board may, at any time and for
any reason, amend or terminate the Plan. An amendment of the Plan shall be
subject to the approval of the Company's stockholders only to the extent
required by applicable laws, regulations or rules. No awards shall be granted
under the Plan after the termination thereof. The termination of the Plan, or
any amendment thereof, shall not affect any award previously granted under the
Plan.

ARTICLE XIV.  DEFINITIONS.

         14.1     "AFFILIATE" means any entity other than a Subsidiary, if the
Company and/or one or more Subsidiaries own not less than 50% of such entity.

         14.2     "BOARD" means the Company's Board of Directors, as constituted
from time to time.

         14.3     "CHANGE IN CONTROL" shall mean:

                  (a)      The consummation of a merger or consolidation of the
Company with or into another entity or any other corporate reorganization, if
persons who were not stockholders of the Company immediately prior to such
merger, consolidation or other reorganization own immediately after such merger,
consolidation or other reorganization 50% or more of the voting power of the
outstanding securities of each of (i) the continuing or surviving entity and
(ii) any direct or indirect parent corporation of such continuing or surviving
entity;

                  (b)      The sale, transfer or other disposition of all or
substantially all of the Company's assets;

                  (c)      A change in the composition of the Board, as a result
of which fewer than 50% of the incumbent directors are directors who either (i)
had been directors of the Company on the date 24 months prior to the date of the
event that may constitute a Change in Control (the "original directors") or (ii)
were elected, or nominated for election, to the Board with the affirmative votes
of at least a majority of the aggregate of the original directors who were still
in office at the time of the election or nomination and the directors whose
election or nomination was previously so approved; or

                  (d)      Any transaction as a result of which any person is
the "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act),
directly or indirectly, of securities of the Company representing at least 50%
of the total voting power represented by the Company's

                                      -7-
<Page>

then outstanding voting securities. For purposes of this Paragraph (d), the term
"person" shall have the same meaning as when used in sections 13(d) and 14(d) of
the Exchange Act but shall exclude(i) a trustee or other fiduciary holding
securities under an employee benefit plan of the Company or of a Parent or
Subsidiary and (ii) a corporation owned directly or indirectly by the
stockholders of the Company in substantially the same proportions as their
ownership of the common stock of the Company.

A transaction shall not constitute a Change in Control if its sole purpose is to
change the state of the Company's incorporation or to create a holding company
that will be owned in substantially the same proportions by the persons who held
the Company's securities immediately before such transaction.

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

         14.5     "COMMITTEE" means a committee of the Board, as described in
                  Article 2.

         14.6     "COMMON STOCK" means the common stock of the Company.

         14.7     "COMPANY" means Remedy Corporation, a Delaware corporation.

         14.8     "CONSULTANT" means a consultant or adviser who provides bona
fide services to the Company, a Parent, a Subsidiary or an Affiliate as an
independent contractor. Service as a Consultant shall be considered employment
for all purposes of the Plan, except as provided in Section 4.1.

         14.9     "EMPLOYEE" means a common-law employee of the Company, a
Parent, a Subsidiary or an Affiliate.

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

         14.11    "EXERCISE PRICE," in the case of an Option, means the amount
for which one Common Share may be purchased upon exercise of such Option, as
specified in the applicable Stock Option Agreement.

         14.12    "EXECUTIVE OFFICER" means an officer of the Company who is
subject to the short-swing profit rules under Section 16 of the Exchange Act.

         14.13    "FAIR MARKET VALUE" means the market price of one share of
Common Stock, determined by the Committee in good faith on such basis as it
deems appropriate. Whenever possible, the determination of Fair Market Value by
the Committee shall be based on the prices reported in THE WALL STREET JOURNAL.
Such determination shall be conclusive and binding on all persons.

         14.14    "INVOLUNTARY TERMINATION" means the termination of the Service
of any individual which occurs by reason of:

                  (a)      such individual's involuntary dismissal or discharge
by the Company for reasons other than Misconduct, or

                                      -8-
<Page>

                  (b)      such individual's voluntary resignation following (A)
a change in his or her position with the Company which materially reduces his or
her level of responsibility, (B) a reduction in his or her level of compensation
(including base salary, fringe benefits and participation in bonus or incentive
programs) or (C) a relocation of such individual's place of employment by more
than fifty (50) miles, provided and only if such change, reduction or relocation
is effected by the Company without the individual's consent.

         14.15    "MISCONDUCT" means the commission of any act of fraud,
embezzlement or dishonesty by the Optionee or Participant, any unauthorized use
or disclosure by such person of confidential information or trade secrets of the
Company (or any Parent or Subsidiary), or any other intentional misconduct by
such person adversely affecting the business or affairs of the Company (or any
Parent or Subsidiary) in a material manner. The foregoing definition shall not
be deemed to be inclusive of all the acts or omissions which the Company (or any
Parent or Subsidiary) may consider as grounds for the dismissal or discharge of
any Optionee or Participant or other person in the Service of the Company (or
any Parent or Subsidiary).

         14.16    "NSO" means a stock option not described in sections 422 or
423 of the Code.

         14.17    "OPTION" means an NSO granted under the Plan and entitling the
holder to purchase shares of Common Stock.

         14.18    "OPTIONEE" means an individual or estate who holds an Option.

         14.19    "OUTSIDE DIRECTOR" shall mean a member of the Board who is not
an Employee.

         14.20    "PARENT" means any corporation (other than the Company) in an
unbroken chain of corporations ending with the Company, if each of the
corporations other than the Company owns stock possessing 50% or more of the
total combined voting power of all classes of stock in one of the other
corporations in such chain. A corporation that attains the status of a Parent on
a date after the adoption of the Plan shall be considered a Parent commencing as
of such date.

         14.21    "PLAN" means this Remedy Corporation 2000 Supplemental Stock
Option Plan, as amended from time to time.

         14.22    "RESTRICTED SHARE" means a Common Share awarded under the
Plan.

         14.23    "RESTRICTED STOCK AGREEMENT" means the agreement between the
Company and the recipient of a Restricted Share which contains the terms,
conditions and restrictions pertaining to such Restricted Share.

         14.24    "STOCK OPTION AGREEMENT" means the agreement between the
Company and an Optionee that contains the terms, conditions and restrictions
pertaining to hisor her Option.

                                      -9-
<Page>

         14.25    "SUBSIDIARY" means any corporation (other than the Company) in
an unbroken chain of corporations beginning with the Company, if 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. A corporation that attains
the status of a Subsidiary on a date after the adoption of the Plan shall be
considered a Subsidiary commencing as of such date.

                                      -10-

<Page>

             REMEDY CORPORATION 2000 SUPPLEMENTAL STOCK OPTION PLAN

                          NOTICE OF STOCK OPTION GRANT

         You have been granted the following option to purchase Common Stock of
Remedy Corporation (the "Company"):

         Name of Optionee:                          ((Name))

         Total Number of Shares Granted:            ((Total Shares))

         Type of Option:                            Nonstatutory Stock Option

         Exercise Price Per Share:                  $((Price Per Share))

         Date of Grant:                             ((Date Grant))

         Vesting Commencement Date:                 ((Vest Day))

         Vesting Schedule:

                                                    This option becomes
                                                    exercisable with respect to
                                                    the first 25% of the Shares
                                                    subject to this option when
                                                    you complete 12 months of
                                                    continuous Service from the
                                                    Vesting Commencement Date
                                                    and with respect to an
                                                    additional 2.083% of the
                                                    Shares subject to this
                                                    option when you complete
                                                    each month of continuous
                                                    Service thereafter.

         Expiration Date:                           ((ExpDate))

By your signature and the signature of the Company's representative below, you
and the Company agree that this option is granted under and governed by the
terms and conditions of the Stock Option Agreement, which is attached to and
made a part of this document and the Company's 2000 Supplemental Stock Option
Plan.

OPTIONEE:                                  REMEDY CORPORATION

                                           By:
-------------------------------------         ----------------------------------

                                           Title:
-------------------------------------            -------------------------------
Print Name

<Page>

             REMEDY CORPORATION 2000 SUPPLEMENTAL STOCK OPTION PLAN

                             STOCK OPTION AGREEMENT

GRANT OF OPTION            You have been granted an option as of the Grant
                           Date to purchase up to the number of Shares of
                           Company Common Stock specified in the Notice of
                           Stock Option Grant.

TAX TREATMENT              This option is intended to be a nonstatutory option,
                           as provided in the Notice of Stock Option Grant.

VESTING                    This option becomes exercisable in installments, as
                           shown in the Notice of Stock Option Grant. No
                           additional shares become exercisable after your
                           service as an employee, consultant or outside
                           director of the Company or a parent or subsidiary of
                           the Company ("Service") has terminated for any
                           reason.

TERM                       This option expires in any event on the day before
                           the 10th anniversary of the Date of Grant, as shown
                           in the Notice of Stock Option Grant. (It will expire
                           earlier if your Service terminates, as described
                           below.)

REGULAR TERMINATION        If your Service terminates for any reason except
                           death, Permanent Disability or Misconduct, then
                           this option will expire on the date 3 months after
                           your termination date. The Company determines when
                           your Service terminates for this purpose.

PERMANENT DISABILITY       If your Service terminates because of your
                           Permanent Disability, then this option will expire
                           on the date 12 months after your termination date.
                           The Company determines when your Service
                           terminates for this purpose.

                           Permanent Disability means that you are unable to
                           engage in any substantial gainful activity by
                           reason of any medically determinable physical or
                           mental impairment which can be expected to result
                           in death or which has lasted, or can be expected to
                           last, for a continuous period of not less than 12
                           months.

DEATH                      If you die while in Service, the option will expire
                           on the date 12 months after the date of death.

<Page>

MISCONDUCT                 If your Service terminates for Misconduct, then this
                           option will terminate immediately and cease to be
                           outstanding. "Misconduct" includes fraud,
                           embezzlement, dishonesty or any unauthorized use or
                           disclosure of confidential information or trade
                           secrets of the Company or any parent or subsidiary or
                           any other intentional misconduct adversely affecting
                           the business or affairs of the Company or a parent or
                           subsidiary of the Company. The foregoing definition
                           is not deemed to be inclusive of all the acts or
                           omissions that the Company or any parent or
                           subsidiary corporation may consider as grounds for
                           your dismissal or discharge or the discharge of any
                           other individual in the Service of the Company or any
                           parent or subsidiary corporation.

CHANGE IN CONTROL          In the event of a Change in Control, then the vesting
                           of this option will not automatically accelerate
                           unless this option is, in connection with the Change
                           in Control, NOT to be assumed by the successor
                           corporation (or its parent) or to be replaced with a
                           comparable option for shares of the capital stock of
                           the successor corporation (or its parent). The
                           determination of option comparability will be made by
                           the Company's Board of Directors, and its
                           determination will be final, binding and conclusive.

                           Change in Control is defined in the Company's 2000
                           Supplemental Stock Option Plan.

INVOLUNTARY                If the option is assumed by the successor
TERMINATION                corporation (or its parent) and you experience an
                           Involuntary Termination within eighteen months
                           following a Change in Control, the vesting of this
                           option will automatically accelerate so that this
                           option will, immediately before the effective date
                           of the Involuntary Termination, become fully
                           exercisable for all of the shares of Common Stock
                           at the time subject to this option and may be
                           exercised for any or all of those shares as
                           fully-vested shares of Common Stock.

                           An Involuntary Termination means the termination of
                           your Service by reason of: your involuntary
                           dismissal or discharge by the Company for reasons
                           other than Misconduct (as defined below), or (b)
                           your voluntary resignation following (1) a change
                           in your position with the Company which materially
                           reduces your level of responsibility, (2) a
                           reduction in your level of compensation (including
                           base salary, fringe benefits and participation in
                           bonus or incentive programs) or (3) a relocation of
                           your place of employment by more than fifty (50)
                           miles, provided and only if such change, reduction
                           or relocation is effected by the Company without
                           your consent.

                                      -2-

<Page>

RESTRICTIONS ON            The Company will not permit you to exercise this
EXERCISE                   option if the issuance of shares at that time would
                           violate any law or regulation.

NOTICE OF EXERCISE         When you wish to exercise this option, you must
                           notify the Company by filing the proper "Notice of
                           Exercise" form at the address given on the form. Your
                           notice must specify how many shares you wish to
                           purchase. Your notice must also specify how your
                           shares should be registered (in your name only or in
                           your and your spouse's names as community property or
                           as joint tenants with right of survivorship). The
                           notice will be effective when it is received by the
                           Company.

                           If someone else wants to exercise this option after
                           your death, that person must prove to the Company's
                           satisfaction that he or she is entitled to do so.
                           When you submit your notice of exercise, you must
                           include payment of the option

FORM OF PAYMENT            exercise price for the shares you are purchasing.
                           Payment may be made in one (or a combination of two
                           or more) of the following forms:

                           o        Cash or check made payable to the Company.

                           o        Certificates for shares of Common Stock that
                                    you own, along with any forms needed to
                                    effect a transfer of those shares to the
                                    Company. The value of the shares, determined
                                    as of the effective date of the option
                                    exercise, will be applied to the option
                                    exercise price. However, you may not
                                    surrender the ownership of shares of Common
                                    Stock in payment of the exercise price if
                                    your action would cause the Company to
                                    recognize compensation expense (or
                                    additional compensation expense) with
                                    respect to this option for financial
                                    reporting purposes.

                           o        Irrevocable directions to a securities
                                    broker approved by the Company to sell all
                                    or part of your option shares and to deliver
                                    to the Company from the sale proceeds an
                                    amount sufficient to pay the option exercise
                                    price and any withholding taxes. (The
                                    balance of the sale proceeds, if any, will
                                    be delivered to you.) The directions must be
                                    given by signing a special "Notice of
                                    Exercise" form provided by the Company.

                           o        Irrevocable directions to pledge all or part
                                    of your option shares to a securities broker
                                    or lender approved by the Company, as
                                    security for a loan, and to deliver all or
                                    part of the loan proceeds to the Company in
                                    an amount sufficient to pay the option
                                    exercise price and any withholding taxes.
                                    (The balance of the loan proceeds, if any,
                                    will be delivered to you.) The directions
                                    must be given by signing a special "Notice
                                    of Exercise" form provided by the Company.

                                      -3-

<Page>

WITHHOLDING                You will not be allowed to exercise this option
TAXES AND STOCK            unless you make arrangements acceptable to the
WITHHOLDING                Company to pay any withholding taxes that may be due
                           as a result of the option exercise. These
                           arrangements may include withholding shares of Common
                           Stock that otherwise would be issued to you when you
                           exercise this option. The value of these shares,
                           determined as of the effective date of the option
                           exercise, will be applied to the withholding taxes.

RESTRICTIONS ON            By signing this Agreement, you agree not to
RESALE                     sell any option shares at a time when applicable
                           laws, Company policies or an agreement between the
                           Company and its underwriters prohibit a sale.

MARKET STAND-OFF           In connection with any underwritten public offering
                           by the Company of its equity securities pursuant to
                           an effective registration statement filed under the
                           Securities Act of 1933, you agree that you will not
                           directly or indirectly sell, make any short sale of,
                           loan, hypothecate, pledge, offer, grant or sell any
                           option or other contract for the purchase of,
                           purchase any option or other contract for the sale
                           of, or otherwise dispose of or transfer, or agree to
                           engage in any of the foregoing transactions with
                           respect to, any shares acquired under this option
                           without the prior written consent of the Company or
                           its underwriters. This market stand-off restriction
                           shall be in effect for such period of time following
                           the offering as may be requested by the Company or
                           its underwriters up to a maximum of 180 days but
                           shall terminate two years after the date of the
                           Company's initial public offering. The Company may
                           impose stop-transfer instructions with respect to the
                           shares acquired under this option.

TRANSFER OF                Before your death, only you may exercise this option.
OPTION                     You cannot transfer or assign this option. For
                           instance, you may not sell this option or use it as
                           security for a loan. If you attempt to do any of
                           these things, this option will immediately become
                           invalid. You may, however, dispose of this option in
                           your will or a beneficiary designation.

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

EMPLOYMENT OR              Your option or this Agreement do not give you the
RETENTION RIGHTS           right to be retained by the Company or a parent or
                           Company and its parents or subsidiaries reserve the
                           right to subsidiary of the Company in any capacity.
                           The terminate your Service at any time, with or
                           without cause.

                                      -4-

<Page>

STOCKHOLDER RIGHTS         You, or your estate or heirs, have no rights as a
                           stockholder of the Company until you have exercised
                           this option by giving the required notice to the
                           Company and paying the exercise price. No adjustments
                           are made for dividends or other rights if the
                           applicable record date occurs before you exercise
                           this option, except as described in the Company's
                           2000 Supplemental Stock Option Plan.

ADJUSTMENTS                In the event of a stock split, a stock dividend or a
                           similar change in Common Stock, the number of shares
                           covered by this option and the exercise price per
                           share may be adjusted pursuant to the Company's 2000
                           Supplemental Stock Option Plan.

APPLICABLE LAW             This Agreement will be interpreted and enforced
                           under the laws of the State of Delaware (without
                           regard to their choice-of-law provisions).

THE PLAN AND OTHER         The text of the Company's 2000 Supplemental
AGREEMENTS                 Stock Option Plan is incorporated in this Agreement
                           by reference.

                           This Agreement and the Company's 2000 Supplemental
                           Stock Option Plan constitute the entire understanding
                           between you and the Company regarding this option.
                           Any prior agreements, commitments or negotiations
                           concerning this option are superseded. This Agreement
                           may be amended only by another written agreement,
                           signed by both parties.

                BY SIGNING THE NOTICE OF STOCK OPTION GRANT, YOU
                    AGREE TO ALL OF THE TERMS AND CONDITIONS
                    DESCRIBED ABOVE AND IN THE COMPANY'S 2000
                         SUPPLEMENTAL STOCK OPTION PLAN.

                                      -5-

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