Document:

<PAGE>

                                                                    EXHIBIT 10.4

                                 AVANTGO, INC.

                            1997 STOCK OPTION PLAN

                         NOTICE OF STOCK OPTION GRANT
                         ----------------------------

((FullName))
((Address))

     You have been granted an option to purchase Common Stock ("Common Stock")
                                                                ------------
of AvantGo, Inc. (the "Company") as follows:
                       -------

     Board Approval Date:                  ((BoardDate))

     Date of Grant (Later of Board
          Approval Date or
          Commencement of
          Employment/Consulting):          ((GrantDate))

     Vesting Commencement Date:            ((VestingCommStartDate))

     Exercise Price Per Share:             $((OptionPrice))

     Total Number of Shares Granted:       ((NoShares))

     Total Exercise Price:                 $((TotalExercisePrice))

     Type of Option:                        X  Incentive Stock Option ("ISO")
                                           ---                          ---
                                           ___ Nonstatutory Stock Option ("NSO")
                                                                           ---

     Term/Expiration Date:                 ((ExpirationDate))

     Vesting Schedule:                     This Option may be exercised
                                           immediately, in whole or in part, and
                                           shall vest in accordance with the
                                           following schedule: 25% of the Shares
                                           subject to the Option shall vest on
                                           the twelve (12) month anniversary of
                                           the Vesting Commencement Date and
                                           1/48 of the total number of Shares
                                           subject to the Option shall vest on
                                           the ((VestDate)) of each month
                                           thereafter.
<PAGE>

     Termination Period:           This Option may be exercised for 45 days
                                   after termination of employment or consulting
                                   relationship except as set out in Sections 6
                                   and 7 of the Stock Option Agreement (but in
                                   no event later than the Expiration Date).

     By your signature and the signature of the Company's representative below,
you and the Company agree that this Option is granted under and governed by the
terms and conditions of the 1997 Stock Option Plan and the Stock Option
Agreement, both of which are attached and made a part of this document.

((FullName)):                           AvantGo, Inc.:

________________________________        By:________________________________
Signature

________________________________        ___________________________________
Print Name                                 Print Name and Title

                                      -2-
<PAGE>

                                 AVANTGO, INC.

                            1997 STOCK OPTION PLAN

                            STOCK OPTION AGREEMENT
                            ----------------------

     1.   Grant of Option.  AvantGo, Inc., a Delaware corporation (the
          ---------------
"Company"), hereby grants to ((FullName)) ("Optionee") an option (the "Option")
 -------                                    --------                   ------
to purchase a total number of shares of Common Stock (the "Shares") set forth in
                                                           ------
the Notice of Stock Option Grant, at the exercise price per share set forth in
the Notice of Stock Option Grant (the "Exercise Price") subject to the terms,
                                       --------------
definitions and provisions of the AvantGo, Inc. 1997 Stock Option Plan (the
"Plan") adopted by the Company, which is incorporated herein by reference.
 ----
Unless otherwise defined herein, the terms defined in the Plan shall have the
same defined meanings in this Option.

     If designated an Incentive Stock Option, this Option is intended to qualify
as an Incentive Stock Option as defined in Section 422 of the Code.

     2.   Exercise of Option.  This Option shall be exercisable during its Term
          ------------------
in accordance with the Vesting Schedule set out in the Notice of Stock Option
Grant and with the provisions of Section 9 of the Plan as follows:

          (a)  Right to Exercise.
               -----------------

               (i)    This Option may be exercised in whole or in part at any
time after the Date of Grant, as to Shares which have not yet vested under the
vesting schedule indicated on the Notice of Stock Option Grant; provided,
                                                                --------
however, that Optionee shall execute as a condition to such exercise of this
-------
Option, the Early Exercise Notice and Restricted Stock Purchase Agreement
attached hereto as Exhibit A (the "Early Exercise Agreement").  If Optionee
                   ---------       ------------------------
chooses to exercise this Option solely as to Shares which have vested under the
vesting schedule indicated on the Notice of Stock Option Grant, Optionee shall
complete and execute the form of Exercise Notice and Restricted Stock Purchase
Agreement attached hereto as Exhibit B (the "Exercise Agreement").
                             ---------       ------------------
Notwithstanding the foregoing, the Company may in its discretion prescribe or
accept a different form of notice of exercise and/or stock purchase agreement if
such forms are otherwise consistent with this Agreement, the Plan and then-
applicable law.

               (ii)   This Option may not be exercised for a fraction of a
share.

               (iii)  In the event of Optionee's death, disability or other
termination of employment or consulting relationship, the exercisability of the
Option is governed by Sections 5, 6 and 7 below, subject to the limitation
contained in Section 2(a)(iv) below.

               (iv)   In no event may this Option be exercised after the
Expiration Date of this Option as set forth in the Notice of Stock Option Grant.

                                      -3-
<PAGE>

          (b)  Method of Exercise.  This Option shall be exercisable by
               ------------------
execution and delivery of the Early Exercise Agreement or the Exercise
Agreement, whichever is applicable, or of any other written notice approved for
such purpose by the Company which shall state the election to exercise the
Option, the number of Shares in respect of which the Option is being exercised,
and such other representations and agreements as to the holder's investment
intent with respect to such shares of Common Stock as may be required by the
Company pursuant to the provisions of the Plan. Such written notice shall be
signed by Optionee and shall be delivered in person or by certified mail to the
Secretary of the Company. The written notice shall be accompanied by payment of
the Exercise Price. This Option shall be deemed to be exercised upon receipt by
the Company of such written notice accompanied by the Exercise Price.

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

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

          (a)  cash;

          (b)  check;

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

          (d)  if there is a public market for the Shares and they are
registered under the Securities Exchange Act of 1934, as amended (the "Exchange
                                                                       --------
Act"), delivery of a properly executed exercise notice together with
---
irrevocable instructions to a broker to deliver promptly to the Company the
amount of sale or loan proceeds required to pay the Exercise Price.

     4.   Restrictions on Exercise.  This Option may not be exercised until such
          ------------------------
time as the Plan has been approved by the shareholders of the Company, or if the
issuance of such Shares upon such exercise or the method of payment of
consideration for such shares would constitute a violation of any applicable
federal or state securities or other law or regulation, including any rule under
Part 207 of Title 12 of the Code of Federal Regulations as promulgated by the
Federal Reserve Board.  As a condition to the exercise of this Option, the
Company may require Optionee to make any representation and warranty to the
Company as may be required by any applicable law or regulation.

                                      -2-
<PAGE>

     5.   Termination of Relationship.  In the event of termination of
          ---------------------------
Optionee's Continuous Status as an Employee or Consultant, Optionee may, to the
extent otherwise so entitled at the date of such termination (the "Termination
                                                                   -----------
Date"), exercise this Option during the Termination Period set forth in the
----
Notice of Stock Option Grant. To the extent that Optionee was not entitled to
exercise this Option at such Termination Date, or if Optionee does not exercise
this Option within the Termination Period, the Option shall terminate.

     6.   Disability of Optionee.
          ----------------------

          (a)  Notwithstanding the provisions of Section 5 above, in the event
of termination of Optionee's Continuous Status as an Employee or Consultant as a
result of his or her total and permanent disability (as defined in Section
22(e)(3) of the Code), Optionee may, but only within twelve months from the
Termination Date (but in no event later than the Expiration Date set forth in
the Notice of Stock Option Grant and in Section 9 below), exercise this Option
to the extent he or she was entitled to exercise it at such Termination Date. To
the extent that Optionee was not entitled to exercise the Option on the
Termination Date, or if Optionee does not exercise such Option to the extent so
entitled within the time specified in this Section 6(a), the Option shall
terminate.

          (b)  Notwithstanding the provisions of Section 5 above, in the event
of termination of Optionee's consulting relationship or Continuous Status as an
Employee as a result of a disability not constituting a total and permanent
disability (as set forth in Section 22(e)(3) of the Code), Optionee may, but
only within six months from the Termination Date (but in no event later than the
Expiration Date set forth in the Notice of Stock Option Grant and in Section 9
below), exercise the Option to the extent Optionee was entitled to exercise it
as of such Termination Date; provided, however, that if this is an Incentive
Stock Option and Optionee fails to exercise this Incentive Stock Option within
three months from the Termination Date, this Option will cease to qualify as an
Incentive Stock Option (as defined in Section 422 of the Code) and Optionee will
be treated for federal income tax purposes as having received ordinary income at
the time of such exercise in an amount generally measured by the difference
between the Exercise Price for the Shares and the Fair Market Value of the
Shares on the date of exercise. To the extent that Optionee was not entitled to
exercise the Option at the Termination Date, or if Optionee does not exercise
such Option to the extent so entitled within the time specified in this Section
6(b), the Option shall terminate.

     7.   Death of Optionee.  In the event of the death of Optionee (a) during
          -----------------
the Term of this Option and while an Employee or Consultant of the Company and
having been in Continuous Status as an Employee or Consultant since the date of
grant of the Option, or (b) within 30 days after Optionee's Termination Date,
the Option may be exercised at any time within six months following the date of
death (but in no event later than the Expiration Date set forth in the Notice of
Stock Option Grant and in Section 9 below), by Optionee's estate or by a person
who acquired the right to exercise the Option by bequest or inheritance, but
only to the extent of the right to exercise that had accrued at the Termination
Date.

                                      -3-
<PAGE>

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

     9.   Term of Option.  This Option may be exercised only within the Term set
          --------------
forth in the Notice of Stock Option Grant, subject to the limitations set forth
in Section 7 of the Plan.

     10.  Tax Consequences.  Set forth below is a brief summary as of the date
          ----------------
of this Option of certain of the federal and California tax consequences of
exercise of this Option and disposition of the Shares under the laws in effect
as of the Date of Grant.  THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX
LAWS AND REGULATIONS ARE SUBJECT TO CHANGE.  OPTIONEE SHOULD CONSULT A TAX
ADVISER BEFORE EXERCISING THIS OPTION OR DISPOSING OF THE SHARES.

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

          (b)  Exercise of Nonstatutory Stock Option.  If this Option does not
               -------------------------------------
qualify as an Incentive Stock Option, there may be a regular federal income tax
liability and a California income tax liability upon the exercise of the Option.
Optionee will be treated as having received compensation income (taxable at
ordinary income tax rates) equal to the excess, if any, of the Fair Market Value
of the Shares on the date of exercise over the Exercise Price.  If Optionee is
an employee, the Company will be required to withhold from Optionee's
compensation or collect from Optionee and pay to the applicable taxing
authorities an amount equal to a percentage of this compensation income at the
time of exercise.

          (c)  Disposition of Shares.  In the case of a Nonstatutory Stock
               ---------------------
Option, if Shares are held for at least one year, any gain realized on
disposition of the Shares will be treated as long-term capital gain for federal
and California income tax purposes.  In the case of an Incentive Stock Option,
if Shares transferred pursuant to the Option are held for at least one year
after exercise and are disposed of at least two years after the Date of Grant,
any gain realized on disposition of the Shares will also be treated as long-term
capital gain for federal and California income tax purposes.  In either case,
the long-term capital gain will be taxed for federal income tax and alternative
minimum tax purposes at a maximum rate of 28% if the Shares are held more than
one year but less than 18 months after exercise and at 20% if the Shares are
held more than 18 months after exercise.  If Shares purchased under an Incentive
Stock Option are disposed of within one year after exercise or within two years
after the Date of Grant, any gain realized on such disposition will be treated
as compensation income (taxable at ordinary income rates) to the extent of the
difference between the Exercise Price and the lesser of (i) the Fair Market
Value of the Shares on the date of exercise, or (ii) the sale price of the
Shares.

                                      -4-
<PAGE>

          (d)  Notice of Disqualifying Disposition of Incentive Stock Option
               -------------------------------------------------------------
Shares.  If the Option granted to Optionee herein is an Incentive Stock Option,
------
and if Optionee sells or otherwise disposes of any of the Shares acquired
pursuant to the Incentive Stock Option on or before the later of (i) the date
two years after the Date of Grant, or (ii) the date one year after the date of
exercise, Optionee shall immediately notify the Company in writing of such
disposition.  Optionee acknowledges and agrees that he or she may be subject to
income tax withholding by the Company on the compensation income recognized by
Optionee from the early disposition by payment in cash or out of the current
earnings paid to Optionee.

     11.  Withholding Tax Obligations.  Optionee understands that, upon
          ---------------------------
exercising a Nonstatutory Stock Option, he or she will recognize income for tax
purposes in an amount equal to the excess of the then Fair Market Value of the
Shares over the Exercise Price.  However, the timing of this income recognition
may be deferred for up to six months if Optionee is subject to Section 16 of the
Exchange Act.  If Optionee is an employee, the Company will be required to
withhold from Optionee's compensation, or collect from Optionee and pay to the
applicable taxing authorities an amount equal to a percentage of this
compensation income.  Additionally, Optionee may at some point be required to
satisfy tax withholding obligations with respect to the disqualifying
disposition of an Incentive Stock Option.  Optionee shall satisfy his or her tax
withholding obligation arising upon the exercise of this Option by one or some
combination of the following methods:  (a) by cash payment, (b) out of
Optionee's current compensation, (c) if permitted by the Administrator, in its
discretion, by surrendering to the Company Shares which (i) in the case of
Shares previously acquired from the Company, have been owned by Optionee for
more than six months on the date of surrender, and (ii) have a Fair Market Value
on the date of surrender equal to or greater than Optionee's marginal tax rate
times the ordinary income recognized, or (d) by electing to have the Company
withhold from the Shares to be issued upon exercise of the Option that number of
Shares having a Fair Market Value equal to the amount required to be withheld.
For this purpose, the Fair Market Value of the Shares to be withheld shall be
determined on the date that the amount of tax to be withheld is to be determined
(the "Tax Date").
      --------

     If Optionee is subject to Section 16 of the Exchange Act (an "Insider"),
                                                                   -------
any surrender of previously owned Shares to satisfy tax withholding obligations
arising upon exercise of this Option must comply with the applicable provisions
of Rule 16b-3 promulgated under the Exchange Act ("Rule 16b-3").
                                                   ----------

     All elections by Optionee to have Shares withheld to satisfy tax
withholding obligations shall be made in writing in a form acceptable to the
Administrator and shall be subject to the following restrictions:

          (a)  the election must be made on or prior to the applicable Tax Date;

          (b)  once made, the election shall be irrevocable as to the particular
Shares of the Option as to which the election is made; and

          (c)  all elections shall be subject to the consent or disapproval of
the Administrator.

                                      -5-
<PAGE>

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

                            [Signature Page Follows]

                                      -6-
<PAGE>

     This Agreement may be executed in two or more counterparts, each of which
shall be deemed an original and all of which together shall constitute one
document.

                                   AVANTGO, INC.

                                   By:__________________________________

                                   Name:________________________________
                                        (print)

                                   Title:_______________________________

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

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

Dated:______________________            ______________________________
                                        ((FullName))

                                      -7-
<PAGE>

                                   EXHIBIT A
                                   ---------

                                 AVANTGO, INC.

                            1997 STOCK OPTION PLAN

         EARLY EXERCISE NOTICE AND RESTRICTED STOCK PURCHASE AGREEMENT
         -------------------------------------------------------------

     This Agreement ("Agreement") is made as of ______________, by and between
                      ---------
AvantGo, Inc., a Delaware corporation (the "Company"), and ((FullName))
                                            -------
("Purchaser").  To the extent any capitalized terms used in this Agreement are
  ----------
not defined, they shall have the meaning ascribed to them in the 1997 Stock
Option Plan.

     1.   Exercise of Option.  Subject to the terms and conditions hereof,
          ------------------
Purchaser hereby elects to exercise his or her option to purchase ((NoShares))
shares of the Common Stock (the "Shares") of the Company under and pursuant to
                                 ------
the Company's 1997 Stock Option Plan (the "Plan") and the Stock Option Agreement
                                           ----
dated ______________ (the "Option Agreement").  Of these Shares, Purchaser has
                           ----------------
elected to purchase _______________ of those Shares which have become vested as
of the date hereof under the Vesting Schedule set forth in the Notice of Stock
Option Grant (the "Vested Shares") and _____________ Shares which have not yet
                   -------------
vested under such Vesting Schedule (the "Unvested Shares"). The purchase price
                                         --------------
Purchaser for the Shares shall be ((OptionPrice)) per Share for a total
purchase price of ((TotalExercisePrice)).  The term "Shares" refers to the
                                                     ------
purchased Shares and all securities received in replacement of the Shares or as
stock dividends or splits, all securities received in replacement of the Shares
in a recapitalization, merger, reorganization, exchange or the like, and all
new, substituted or additional securities or other properties to which Purchaser
is entitled by reason of Purchaser's ownership of the Shares.

     2.   Time and Place of Exercise.  The purchase and sale of the Shares under
          --------------------------
this Agreement shall occur at the principal office of the Company simultaneously
with the execution and delivery of this Agreement in accordance with the
provisions of Section 2(b) of the Option Agreement. On such date, the Company
will deliver to Purchaser a certificate representing the Shares to be purchased
by Purchaser (which shall be issued in Purchaser's name) against payment of the
purchase price therefor by Purchaser by (a) check made payable to the Company,
(b) cancellation of indebtedness of the Company to Purchaser, (c) delivery of
shares of the Common Stock of the Company in accordance with Section 3 of the
Option Agreement, or (d) a combination of the foregoing.

     3.   Limitations on Transfer.  In addition to any other limitation on
          -----------------------
transfer created by applicable securities laws, Purchaser shall not assign,
encumber or dispose of any interest in the Shares while the Shares are subject
to the Company's Repurchase Option (as defined below), except as provided below.
After any Shares have been released from such Repurchase Option, Purchaser shall
not assign, encumber or dispose of any interest in such Shares except in
compliance with the provisions below and applicable securities laws.
<PAGE>

          (a)  Repurchase Option.
               -----------------

               (i)    In the event of the voluntary or involuntary termination
of Purchaser's employment or consulting relationship with the Company for any
reason (including death or disability), with or without cause, the Company shall
upon the date of such termination (the "Termination Date") have an irrevocable,
                                        ----------------
exclusive option (the "Repurchase Option") for a period of 60 days from such
                       -----------------
date to repurchase all or any portion of the Unvested Shares held by Purchaser
as of the Termination Date which have not yet been released from the Company's
Repurchase Option at the original purchase price per Share specified in Section
1 (adjusted for any stock splits, stock dividends and the like).

               (ii)   The Repurchase Option shall be exercised by the Company by
written notice to Purchaser or Purchaser's executor and, at the Company's
option, (A) by delivery to Purchaser or Purchaser's executor with such notice of
a check in the amount of the purchase price for the Shares being purchased, or
(B) in the event Purchaser is indebted to the Company, by cancellation by the
Company of an amount of such indebtedness equal to the purchase price for the
Shares being repurchased, or (C) by a combination of (A) and (B) so that the
combined payment and cancellation of indebtedness equals such purchase price.
Upon delivery of such notice and payment of the purchase price in any of the
ways described above, the Company shall become the legal and beneficial owner of
the Shares being repurchased and all rights and interest therein or related
thereto, and the Company shall have the right to transfer to its own name the
number of Shares being repurchased by the Company, without further action by
Purchaser.

               (iii)  One hundred percent (100%) of the Unvested Shares shall
initially be subject to the Repurchase Option.  The Unvested Shares shall be
released from the Repurchase Option in accordance with the Vesting Schedule set
forth in the Notice of Stock Option Grant until all Shares are released from the
Repurchase Option.  Fractional shares shall be rounded to the nearest whole
share.

          (b)  Right of First Refusal.  Before any Shares held by Purchaser or
               ----------------------
any transferee of Purchaser (either being sometimes referred to herein as the

"Holder") may be sold or otherwise transferred (including transfer by gift or
 ------
operation of law), the Company or its assignee(s) shall have a right of first
refusal to purchase the Shares on the terms and conditions set forth in this
Section 3(b) (the "Right of First Refusal").
                   ----------------------

               (i)    Notice of Proposed Transfer. The Holder of the Shares
                      ---------------------------
shall deliver to the Company a written notice (the "Notice") stating: (i) the
                                                    ------
Holder's bona fide intention to sell or otherwise transfer such Shares; (ii) the
name of each proposed purchaser or other transferee ("Proposed Transferee");
                                                      -------------------
(iii) the number of Shares to be transferred to each Proposed Transferee; and
(iv) the terms and conditions of each proposed sale or transfer.  The Holder
shall offer the Shares at the same price (the "Offered Price") and upon the same
                                               -------------
terms (or terms as similar as reasonably possible) to the Company or its
assignee(s).

                                      -2-
<PAGE>

               (ii)   Exercise of Right of First Refusal.  At any time within
                      ----------------------------------
30 days after receipt of the Notice, the Company and/or its assignee(s) may, by
giving written notice to the Holder, elect to purchase all, but not less than
all, of the Shares proposed to be transferred to any one or more of the Proposed
Transferees, at the purchase price determined in accordance with subsection
(iii) below.

               (iii)  Purchase Price.  The purchase price ("Purchase Price")
                      --------------                        --------------
for the Shares purchased by the Company or its assignee(s) under this Section
3(b) shall be the Offered Price. If the Offered Price includes consideration
other than cash, the cash equivalent value of the non-cash consideration shall
be determined by the Board of Directors of the Company in good faith.

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

               (v)    Holder's Right to Transfer.  If all of the Shares proposed
                      --------------------------
in the Notice to be transferred to a given Proposed Transferee are not purchased
by the Company and/or its assignee(s) as provided in this Section 3(b), then the
Holder may sell or otherwise transfer such Shares to that Proposed Transferee at
the Offered Price or at a higher price, provided that such sale or other
transfer is consummated within 60 days after the date of the Notice and provided
further that any such sale or other transfer is effected in accordance with any
applicable securities laws and the Proposed Transferee agrees in writing that
the provisions of this Section 3 shall continue to apply to the Shares in the
hands of such Proposed Transferee. If the Shares described in the Notice are not
transferred to the Proposed Transferee within such period, or if the Holder
proposes to change the price or other terms to make them more favorable to the
Proposed Transferee, a new Notice shall be given to the Company, and the Company
and/or its assignees shall again be offered the Right of First Refusal before
any Shares held by the Holder may be sold or otherwise transferred.

               (vi)   Exception for Certain Family Transfers.  Anything to the
                      --------------------------------------
contrary contained in this Section 3(b) notwithstanding, the transfer of any or
all of the Shares during Purchaser's lifetime or on Purchaser's death by will or
intestacy to Purchaser's Immediate Family (as defined below) or a trust for the
benefit of Purchaser's Immediate Family shall be exempt from the provisions of
this Section 3(b). "Immediate Family" as used herein shall mean spouse, lineal
                    ----------------
descendant or antecedent, father, mother, brother or sister.  In such case, the
transferee or other recipient shall receive and hold the Shares so transferred
subject to the provisions of this Section, and there shall be no further
transfer of such Shares except in accordance with the terms of this Section 3.

                                      -3-
<PAGE>

          (c)  Involuntary Transfer.
               --------------------

               (i)    Company's Right to Purchase upon Involuntary Transfer.
                      -----------------------------------------------------
In the event, at any time after the date of this Agreement, of any transfer by
operation of law or other involuntary transfer (including death or divorce, but
excluding a transfer to Immediate Family as set forth in Section 3(b)(vi) above)
of all or a portion of the Shares by the record holder thereof, the Company
shall have an option to purchase all of the Shares transferred at the greater of
the purchase price paid by Purchaser pursuant to this Agreement or the Fair
Market Value of the Shares on the date of transfer.  Upon such a transfer, the
person acquiring the Shares shall promptly notify the Secretary of the Company
of such transfer.  The right to purchase such Shares shall be provided to the
Company for a period of 30 days following receipt by the Company of written
notice by the person acquiring the Shares.

               (ii)   Price for Involuntary Transfer.  With respect to any stock
                      ------------------------------
to be transferred pursuant to Section 3(c)(i), the price per Share shall be a
price set by the Board of Directors of the Company that will reflect the current
value of the stock in terms of present earnings and future prospects of the
Company. The Company shall notify Purchaser or his or her executor of the price
so determined within 30 days after receipt by it of written notice of the
transfer or proposed transfer of Shares. However, if the Purchaser does not
agree with the valuation as determined by the Board of Directors of the Company,
the Purchaser shall be entitled to have the valuation determined by an
independent appraiser to be mutually agreed upon by the Company and the
Purchaser and whose fees shall be borne equally by the Company and the
Purchaser.

          (d)  Assignment.  The right of the Company to purchase any part of the
               ----------
Shares may be assigned in whole or in part to any shareholder or shareholders of
the Company or other persons or organizations; provided, however, that an
assignee, other than a corporation that is the Parent or a 100% owned Subsidiary
of the Company, must pay the Company, upon assignment of such right, cash equal
to the difference between the original purchase price and Fair Market Value, if
the original purchase price is less than the Fair Market Value of the Shares
subject to the assignment.

          (e)  Restrictions Binding on Transferees.  All transferees of Shares
               -----------------------------------
or any interest therein will receive and hold such Shares or interest subject to
the provisions of this Agreement, including, insofar as applicable, the
Company's option to repurchase under Section 3(a).  Any sale or transfer of the
Company's Shares shall be void unless the provisions of this Agreement are
satisfied.

          (f)  Termination of Rights.  The Right of First Refusal granted the
               ---------------------
Company by Section 3(b) above and the option to repurchase the Shares in the
event of an involuntary transfer granted the Company by Section 3(c) above shall
terminate upon the first sale of Common Stock of the Company to the general
public pursuant to a registration statement filed with and declared effective by
the Securities and Exchange Commission under the Securities Act of 1933, as
amended (the "Securities Act").  Upon termination of the Right of First Refusal
              --------------
described in Section 3(b) and the expiration or exercise of the Company's
repurchase option described in Section 3(a) above, a new certificate or
certificates representing the Shares not

                                      -4-
<PAGE>

repurchased shall be issued, on request, without the legend referred to in
Section 6(a)(ii) herein and delivered to Purchaser.

     4.   Escrow of Unvested Shares.  For purposes of facilitating the
          -------------------------
enforcement of the provisions of Section 3 above, Purchaser agrees, immediately
upon receipt of the certificate(s) for the Shares subject to the Company's
Repurchase Option described in Section 3(a), to deliver such certificate(s),
together with an Assignment Separate from Certificate in the form attached to
this Agreement as Attachment A executed by Purchaser and by Purchaser's spouse
                  ------------
(if required for transfer), in blank, to the Secretary of the Company, or the
Secretary's designee, to hold such certificate(s) and Assignment Separate from
Certificate in escrow and to take all such actions and to effectuate all such
transfers and/or releases as are in accordance with the terms of this Agreement.
Purchaser hereby acknowledges that the Secretary of the Company, or the
Secretary's designee, is so appointed as the escrow holder with the foregoing
authorities as a material inducement to make this Agreement and that said
appointment is coupled with an interest and is accordingly irrevocable.
Purchaser agrees that said escrow holder shall not be liable to any party hereof
(or to any other party).  The escrow holder may rely upon any letter, notice or
other document executed by any signature purported to be genuine and may resign
at any time.  Purchaser agrees that if the Secretary of the Company, or the
Secretary's designee, resigns as escrow holder for any or no reason, the Board
of Directors of the Company shall have the power to appoint a successor to serve
as escrow holder pursuant to the terms of this Agreement.

     5.   Investment and Taxation Representations.  In connection with the
          ---------------------------------------
purchase of the Shares, Purchaser represents to the Company the following:

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

          (b)  Purchaser understands that the securities have not been
registered under the Securities Act by reason of a specific exemption therefrom,
which exemption depends upon, among other things, the bona fide nature of
Purchaser's investment intent as expressed herein.

          (c)  Purchaser understands that the Shares are "restricted securities"
under applicable U.S. federal and state securities laws and that, pursuant to
these laws, Purchaser must hold the Shares indefinitely unless they are
registered with the Securities and Exchange Commission and qualified by state
authorities, or an exemption from such registration and qualification
requirements is available. Purchaser acknowledges that the Company has no
obligation to register or qualify the Shares for resale.  Purchaser further
acknowledges that if an exemption from registration or qualification is
available, it may be conditioned on various requirements including, but not
limited to, the time and manner of sale, the holding period for the Shares, and
requirements relating to the Company which are outside of the Purchaser's
control, and which the Company is under no obligation and may not be able to
satisfy.

                                      -5-
<PAGE>

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

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

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

               (i)    THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
                      REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN
                      ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN
                      CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH
                      SALE OR DISPOSITION MAY BE EFFECTED WITHOUT AN EFFECTIVE
                      REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF
                      COUNSEL IN A FORM SATISFACTORY TO THE COMPANY THAT SUCH
                      REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF
                      1933.

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

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

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

                                      -6-
<PAGE>

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

     8.   Section 83(b) Election.  Purchaser understands that Section 83(a) of
          ----------------------
the Internal Revenue Code of 1986, as amended (the "Code"), taxes as ordinary
                                                    ----
income for a Nonstatutory Stock Option and as alternative minimum taxable income
for an Incentive Stock Option the difference between the amount paid for the
Shares and the Fair Market Value of the Shares as of the date any restrictions
on the Shares lapse.  In this context, "restriction" means the right of the
                                        -----------
Company to buy back the Shares pursuant to the Repurchase Option set forth in
Section 3(a) of this Agreement.  Purchaser understands that Purchaser may elect
to be taxed at the time the Shares are purchased, rather than when and as the
Repurchase Option expires, by filing an election under Section 83(b) (an "83(b)
                                                                          -----
Election") of the Code with the Internal Revenue Service within 30 days from the
--------
date of purchase.  Even if the Fair Market Value of the Shares at the time of
the execution of this Agreement equals the amount paid for the Shares, the
election must be made to avoid income and alternative minimum tax treatment
under Section 83(a) in the future.  Purchaser understands that failure to file
such an election in a timely manner may result in adverse tax consequences for
Purchaser.  Purchaser further understands that an additional copy of such
election form should be filed with his or her federal income tax return for the
calendar year in which the date of this Agreement falls.  Purchaser acknowledges
that the foregoing is only a summary of the effect of United States federal
income taxation with respect to purchase of the Shares hereunder, and does not
purport to be complete.  Purchaser further acknowledges that the Company has
directed Purchaser to seek independent advice regarding the applicable
provisions of the Code, the income tax laws of any municipality, state or
foreign country in which Purchaser may reside, and the tax consequences of
Purchaser's death.

     Purchaser agrees that he or she will execute and deliver to the Company
with this executed Agreement a copy of the Acknowledgment and Statement of
Decision Regarding Section 83(b) Election (the "Acknowledgment") attached hereto
                                                --------------
as Attachment B.  Purchaser further agrees that he or she will execute and
   ------------
submit with the Acknowledgment a copy of the 83(b) Election attached hereto as

Attachment C (for income tax purposes in connection with the early exercise of a
------------
Nonstatutory Stock Option) or Attachment D (for alternative minimum tax purposes
                              ------------
in connection with the early exercise of an incentive stock option) if Purchaser
has indicated in the Acknowledgment his or her decision to make such an
election.

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

                                      -7-
<PAGE>

     10.  Miscellaneous.
          -------------

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

          (b)  Entire Agreement; Enforcement of Rights.  This Agreement sets
               ---------------------------------------
forth the entire agreement and understanding of the parties relating to the
subject matter herein and merges all prior discussions between them.  No
modification of or amendment to this Agreement, nor any waiver of any rights
under this Agreement, shall be effective unless in writing signed by the parties
to this Agreement.  The failure by either party to enforce any rights under this
Agreement shall not be construed as a waiver of any rights of such party.

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

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

          (e)  Notices.  Any notice required or permitted by this Agreement
               -------
shall be in writing and shall be deemed sufficient when delivered personally or
sent by telegram or fax or 48 hours after being deposited in the U.S. mail, as
certified or registered mail, with postage prepaid, and addressed to the party
to be notified at such party's address as set forth below or as subsequently
modified by written notice.

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

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

                                      -8-
<PAGE>

          (h)  California Corporate Securities Law.  THE SALE OF THE SECURITIES
               -----------------------------------
WHICH ARE THE SUBJECT OF THIS AGREEMENT HAS NOT BEEN QUALIFIED WITH THE
COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA AND THE ISSUANCE OF THE
SECURITIES OR THE PAYMENT OR RECEIPT OF ANY PART OF THE CONSIDERATION THEREFOR
PRIOR TO THE QUALIFICATION IS UNLAWFUL, UNLESS THE SALE OF SECURITIES IS EXEMPT
FROM QUALIFICATION BY SECTION 25100, 25102 OR 25105 OF THE CALIFORNIA
CORPORATIONS CODE.  THE RIGHTS OF ALL PARTIES TO THIS AGREEMENT ARE EXPRESSLY
CONDITIONED UPON THE QUALIFICATION BEING OBTAINED, UNLESS THE SALE IS SO EXEMPT.

                           [Signature Page Follows]

                                      -9-
<PAGE>

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

                              COMPANY:

                              AVANTGO, INC.

                              By:___________________________________

                              Name:_________________________________
                                   (print)

                              Title:________________________________

                              Address:
                              1700 South Amphlett
                              Boulevard, Suite 300
                              San Mateo, CA  94402

                              PURCHASER:

                              ((FULLNAME))

                              ______________________________________
                              (Signature)

                              Address:
                              ((Address))

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

                              ______________________________________
                              Spouse of ((FullName))

                                     -10-<PAGE>

                                                                    EXHIBIT 10.5

                                 AVANTGO, INC.

                       2000 EMPLOYEE STOCK PURCHASE PLAN

                              SECTION 1.  PURPOSE

     The purposes of the AvantGo, Inc. 2000 Employee Stock Purchase Plan (the
"Plan") are (a) to assist employees of AvantGo, Inc., a Delaware corporation
(the "Company"), and its designated subsidiaries in acquiring a stock ownership
interest in the Company pursuant to a plan that is intended to qualify as an
"employee stock purchase plan" under Section 423 of the Internal Revenue Code of
1986, as amended, and (b) to encourage employees to remain in the employ of the
Company and its subsidiaries.

                            SECTION 2.  DEFINITIONS

     For purposes of the Plan, the following terms shall be defined as set forth
below:

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

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

     "Committee" means the Company's Compensation Committee or any other Board
committee appointed by the Board to administer the Plan.

     "Common Stock" means the common stock, par value $0.001 per share, of the
Company.

     "Company" means AvantGo, Inc., a Delaware corporation.

     "Corporate Transaction" means any of the following events:

          (a)  Consummation of any merger or consolidation of the Company with
     or into another corporation; or

          (b)  Consummation of any sale, lease, exchange or other transfer in
     one transaction or a series of related transactions of all or substantially
     all of the Company's outstanding securities or substantially all the
     Company's assets other than a transfer of the Company's assets to a
     majority-owned subsidiary corporation of the Company.

     provided, however, that a Corporate Transaction shall not include (i) a
     merger of the Company in which the holders of shares of Common Stock
     immediately prior to the merger hold at least a majority of the shares of
     Common Stock in the surviving corporation immediately after the merger,
     (ii) a mere reincorporation of the Company, or (iii) a transaction
     undertaken for the sole purposes of creating a holding company.

     "Designated Subsidiary" has the meaning set forth under the definition of
"Eligible Employee" in this Section 2.

     "Eligible Compensation" means all salary and wages, including overtime,
cash bonuses and commissions.  Regular cash compensation does not include
severance pay,
<PAGE>

hiring and relocation bonuses, pay in lieu of vacations, sick leave, gain from
stock option exercises or any other special payments.

     "Eligible Employee" means any employee of the Company or a domestic
Subsidiary Corporation or any other Subsidiary Corporation designated by the
Board or the Committee (each, a "Designated Subsidiary"), who is in the employ
of the Company (or any Designated Subsidiary) on one or more Offering Dates and
who meets the following criteria:

          (a)  the employee does not, immediately after the Option is granted,
     own stock (as defined by the Code) possessing 5% or more of the total
     combined voting power or value of all classes of stock of the Company or of
     a Parent Corporation or Subsidiary Corporation of the Company;

          (b)  the employee's customary employment is for 20 hours or more per
     week; provided, however, that the Plan Administrator may decrease this
     minimum hours requirement for a future Offering;

          (c)  if specified by the Plan Administrator for a future Offering, the
     employee customarily works a minimum of five months per year or any lesser
     number of months established by the Plan Administrator; and

          (d)  if specified by the Plan Administrator for a future Offering, the
     employee has been employed for a certain minimum period of time as of an
     Offering Date; provided, however, that any such minimum employment period
     may not exceed two years.

If the Company permits any employee of a Designated Subsidiary to participate in
the Plan, then all employees of that Designated Subsidiary who meet the
requirements of this paragraph shall also be considered Eligible Employees.

     "Enrollment Period" has the meaning set forth in Section 7.1.

     "ESPP Broker" has the meaning set forth in Section 10.1.

     "Fair Market Value" shall be as established in good faith by the Plan
Administrator or (a) if the Common Stock is listed on the Nasdaq National
Market, the closing sales price for the Common Stock as reported by the Nasdaq
National Market on the Offering Date or the Purchase Date, as applicable, unless
the Plan Administrator determines otherwise for a future Offering or (b) if the
Common Stock is listed on the New York Stock Exchange or the American Stock
Exchange, the closing sales price for the Common Stock as such price is
officially quoted in the composite tape of transactions on such exchange on the
Offering Date or the Purchase Date, as applicable, unless the Plan Administrator
determines otherwise for a future Offering; provided, however, that for the
first Offering Date under the Plan that occurs on the IPO Date, Fair Market
Value shall be the Common Stock's initial public offering price as set forth in
Section 6(a).  If there is no such reported price for the Common Stock for the

                                      -2-
<PAGE>

date in question, then such price on the last preceding date for which such
price exists shall be determinative of Fair Market Value.

     "IPO Date" means the day on which shares of Common Stock are first offered
to the public in an underwritten initial public offering of the Common Stock
pursuant to a registration statement filed with and declared effective by the
Securities and Exchange Commission (such day being the first trading day for the
Common Stock on the Nasdaq National Market, the New York Stock Exchange or other
applicable trading market).

     "Offering" has the meaning set forth in Section 5.1.

     "Offering Date" means the first day of an Offering.

     "Option" means an option granted under the Plan to an Eligible Employee to
purchase shares of Common Stock.

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

     "Participant" means any Eligible Employee who has elected to participate in
an Offering in accordance with the procedures set forth in Section 7.1 and who
has not withdrawn from the Plan or whose participation in the Plan is not
otherwise terminated.

     "Plan" means the AvantGo, Inc. 2000 Employee Stock Purchase Plan.

     "Purchase Date" means the last day of each Purchase Period.

     "Purchase Period" has the meaning set forth in Section 5.2.

     "Purchase Price" has the meaning set forth in Section 6.

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

     "Subscription" has the meaning set forth in Section 7.1.

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

                                      -3-
<PAGE>

                           SECTION 3.  ADMINISTRATION

3.1  Plan Administrator

     The Plan shall be administered by the Board and/or the Committee or, if and
to the extent the Board or the Committee designates an executive officer of the
Company to administer the Plan, by such executive officer (each, the "Plan
Administrator").  Any decisions made by the Plan Administrator shall be
applicable equally to all Eligible Employees.

3.2  Administration and Interpretation by the Plan Administrator

     Subject to the provisions of the Plan, the Plan Administrator shall have
the authority, in its sole discretion, to determine all matters relating to
Options granted under the Plan, including all terms, conditions, restrictions
and limitations of Options; provided, however, that all Participants granted
Options pursuant to the Plan shall have the same rights and privileges within
the meaning of Code Section 423.  The Plan Administrator shall also have
exclusive authority to interpret the Plan and may from time to time adopt, and
change, rules and regulations of general application for the Plan's
administration.  The Plan Administrator's interpretation of the Plan and its
rules and regulations, and all actions taken and determinations made by the Plan
Administrator pursuant to the Plan, unless reserved to the Board or the
Committee, shall be conclusive and binding on all parties involved or affected.
The Plan Administrator may delegate administrative duties to such of the
Company's other officers or employees as the Plan Administrator so determines.

                       SECTION 4.  STOCK SUBJECT TO PLAN

     Subject to adjustment from time to time as provided in Section 21.1, the
maximum number of shares of Common Stock that shall be available for issuance
under the Plan shall be:

     (a)  350,000 shares, plus

     (b)  an annual increase to be added as of the first day of the Company's
fiscal year beginning in 2001 equal to the lesser of (i) 700,000 shares and (ii)
1% of the outstanding common shares of the Company as of the end of the
immediately preceding fiscal year on a fully diluted basis (assuming exercise of
all outstanding options and warrants and conversion of all outstanding
convertible preferred stock) or (iii) a lesser amount determined by the Board;
provided, however, that any shares from any increases in previous years that are
not actually issued shall be added to the aggregate number of shares available
for issuance under the Plan.

     Shares issued under the Plan shall be drawn from authorized and unissued
shares or shares subsequently acquired by the Company as treasury shares.

                                      -4-
<PAGE>

                          SECTION 5.  OFFERING DATES

5.1  Offerings

     (a)  Except as otherwise set forth below, the Plan shall be implemented by
a series of Offerings of twenty-four months' duration (each, an "Offering").
Offerings shall commence on February 1 and August 1 of each year and end on the
second January 31 and July 31, respectively, occurring thereafter; provided,
however, that the first Offering shall begin on the IPO Date and shall end on
January 31, 2002.

     (b)  Notwithstanding the foregoing, the Plan Administrator may establish
(i) a different term for one or more future Offerings and (ii) different
commencing and ending dates for such future Offerings; provided, however, that
an Offering may not exceed five years; and provided, further, that if the
Purchase Price may be less than 85% of the Fair Market Value of the Common Stock
on the Purchase Date, the Offering may not exceed 27 months.

     (c)  In the event the first or the last day of an Offering is not a regular
business day, then the first day of the Offering shall be deemed to be the next
regular business day and the last day of the Offering shall be deemed to be the
last preceding regular business day.

5.2  Purchase Periods

     (a)  Each Offering shall consist of four consecutive purchase periods of
six months' duration (each, a "Purchase Period"). The last day of each Purchase
Period shall be the Purchase Date for such Purchase Period. Except as otherwise
set forth below, a Purchase Period shall commence on February 1 and August 1 of
each year and end on the next July 31 and January 31, respectively, occurring
thereafter; provided, however, that the Purchase Period for the first Offering
shall commence on the IPO Date and shall end on July 31, 2001.

     (b)  Notwithstanding the foregoing, the Plan Administrator may establish
for a future Offering (i) a different term for one or more future Purchase
Periods and (ii) different commencing and ending dates for any such Purchase
Period.

     (c)  In the event the first or last day of a Purchase Period is not a
regular business day, then the first day of the Purchase Period shall be deemed
to be the next regular business day and the last day of the Purchase Period
shall be deemed to be the last preceding regular business day.

5.3  Governmental Approval; Stockholder Approval

     Notwithstanding any other provision of the Plan to the contrary, an Option
granted pursuant to the Plan shall be subject to (a) obtaining all necessary
governmental approvals and qualifications for the Plan, the issuance of Options
and the sale of Common Stock pursuant to the Plan and (b) obtaining stockholder
approval of the Plan.

                                      -5-
<PAGE>

                          SECTION 6.  PURCHASE PRICE

     (a)  The purchase price (the "Purchase Price") at which Common Stock may be
acquired in an Offering pursuant to the exercise of all or any portion of an
Option shall be 85% of the lesser of (i) the Fair Market Value of the Common
Stock on the Offering Date of such Offering and (ii) the Fair Market Value of
the Common Stock on the Purchase Date; provided, however, that the Purchase
Price for the first Offering that begins on the IPO Date shall be the lesser of
(A) 100% of the initial public offering price per share of Common Stock, before
underwriters' discounts or concessions, set forth in that certain Underwriting
Agreement between the Company and the representatives of the underwriters and
executed in connection with the Company's initial public offering of the Common
Stock and (B) 85% of the Fair Market Value of the Common Stock on the Purchase
Date.

     (b)  Notwithstanding the foregoing, if an increase in the number of shares
authorized for issuance under the Plan (other than an annual increase pursuant
to Section 4) is approved and all or a portion of such additional shares are to
be issued during one or more Offerings that are underway at the time of
stockholder approval of such increase (the "Additional Shares"), then, if as of
the date of such stockholder approval, the Fair Market Value of a share of
Common Stock is higher than the Fair Market Value on the Offering Date for any
such Offering, the Purchase Price for the Additional Shares shall be 85% of the
lesser of (i) the Common Stock's Fair Market Value on the date of such
stockholder approval and (ii) the Fair Market Value of the Common Stock on the
Purchase Date.

                     SECTION 7.  PARTICIPATION IN THE PLAN

7.1  Initial Participation

     An Eligible Employee shall become a Participant on the first Offering Date
after satisfying the eligibility requirements and delivering to the Plan
Administrator during the enrollment period established by the Plan Administrator
(the "Enrollment Period") a subscription (the "Subscription"):

     (a)  indicating the Eligible Employee's election to participate in the
Plan;

     (b)  authorizing payroll deductions and stating the amount to be deducted
regularly from the Participant's pay; and

     (c)  authorizing the purchase of Common Stock for the Participant in each
Purchase Period.

     An Eligible Employee who does not deliver a Subscription as provided above
during the Enrollment Period shall not participate in the Plan for that Offering
or for any subsequent Offering unless such Eligible Employee subsequently
enrolls in the Plan by filing a Subscription with the Company during the
Enrollment Period for such subsequent Offering.  The Company may, from time to
time, change the Enrollment Period for a future Offering as

                                      -6-
<PAGE>

deemed advisable by the Plan Administrator, in its sole discretion, for the
proper administration of the Plan.

     Except as provided in Section 7.2, an employee who becomes eligible to
participate in the Plan after an Offering has commenced shall not be eligible to
participate in such Offering but may participate in any subsequent Offering,
provided that such employee is still an Eligible Employee as of the commencement
of any such subsequent Offering.  Eligible Employees may not participate in more
than one Offering at a time.

7.2  Alternative Initial Participation

     Notwithstanding any other provision of the Plan, the Board or the Committee
may provide for a future Offering that any employee of the Company or any
Designated Subsidiary who first meets the requirements of subparagraphs (a)
through (d) of the paragraph "Eligible Employee" in Section 2 during the course
of an Offering shall, on a date or dates specified in the Offering which
coincide with the day on which such person first meets such requirements or
which occurs on a specified date thereafter, receive an Option under that
Offering which Option shall thereafter be deemed to be a part of that Offering.
Such Option shall have the same characteristics as any Options originally
granted under that Offering, except that

     (a)  the date on which such Option is granted shall be the "Offering Date"
of such Option for all purposes, including determining the Purchase Price of
such Option; provided, however, that if the Fair Market Value of the Common
Stock on the date on which such Option is granted is less than the Fair Market
Value of Common Stock on the first day of the Offering, then, solely for the
purpose of determining the Purchase Price of such Option, the first day of the
Offering shall be the "Offering Date" for such Option;

     (b)  the Purchase Period(s) for such Option shall begin on its Offering
Date and end coincident with the remaining Purchase Date(s) for such Offering;
and

     (c)  the Board or the Committee may provide that if such person first meets
such requirements within a specified period of time before the end of a Purchase
Period for such Offering, he or she will not receive an Option for that Purchase
Period.

7.3  Continued Participation

     A Participant shall automatically participate in the next Offering until
such time as such Participant ceases payroll contributions to the Plan,
withdraws from the Plan pursuant to Section 11.3 or terminates employment as
provided in Section 13.

                                      -7-
<PAGE>

              SECTION 8.  LIMITATIONS ON RIGHT TO PURCHASE SHARES

8.1  Number of Shares Purchased

     (a)  No Participant shall be entitled to purchase Common Stock under the
Plan (or any other employee stock purchase plan that is intended to meet the
requirements of Code Section 423 sponsored by the Company, a Parent Corporation
or a Subsidiary Corporation) with a Fair Market Value exceeding $25,000 (such
value determined as of the Offering Date for each Offering or such other limit
as may be imposed by the Code) in any calendar year in which a Participant
participates in the Plan (or other employee stock purchase plan described in
this Section 8.1).

     (b)  No Participant shall be entitled to purchase more than 1,700 shares of
Common Stock (or such other number as the Board or the Committee shall specify
for a future Offering) under the Plan in any single Purchase Period.

     (c)  For a future Offering, the Board or the Committee may specify a
maximum number of shares that may be purchased by any Participant, as well as a
maximum aggregate number of shares that may be purchased by all Participants,
pursuant to such Offering. In addition, for a future Offering with more than one
Purchase Date, the Board or the Committee may specify a maximum aggregate number
of shares that may be purchased by all Participants on any given Purchase Date
under the Offering.

8.2  Pro Rata Allocation

     In the event the number of shares of Common Stock that might be purchased
by all Participants exceeds the number of shares of Common Stock available in
the Plan or in an Offering, the Plan Administrator shall make a pro rata
allocation of the remaining shares of Common Stock in as uniform a manner as
shall be practicable and as the Plan Administrator shall determine to be
equitable.  Fractional shares may not be issued under the Plan unless the Plan
Administrator determines otherwise for a future Offering.

                     SECTION 9.  PAYMENT OF PURCHASE PRICE

9.1  General Rules

     Subject to Section 9.11, Common Stock that is acquired pursuant to the
exercise of all or any portion of an Option may be paid for only by means of
payroll deductions from the Participant's Eligible Compensation.  Except as set
forth in this Section 9, the amount of compensation to be withheld from a
Participant's Eligible Compensation during each pay period shall be determined
by the Participant's Subscription.

                                      -8-
<PAGE>

9.2  Percent Withheld

     The amount of payroll withholding for each Participant for purchases
pursuant to the Plan during any pay period shall be at least 1% but shall not
exceed 15% of the Participant's Eligible Compensation for such pay period (or
such other higher percentage as the Plan Administrator may establish from time
to time for a future Offering). Amounts shall be withheld in whole percentages
only.

9.3  Payroll Deductions

     Payroll deductions shall commence on the first payday following the
Offering Date and shall continue through the last payday of the Offering unless
sooner altered or terminated as provided in the Plan.

9.4  Memorandum Accounts

     Individual accounts shall be maintained for each Participant for memorandum
purposes only.  All payroll deductions from a Participant's compensation shall
be credited to such account but shall be deposited with the general funds of the
Company.  All payroll deductions received or held by the Company may be used by
the Company for any corporate purpose.

9.5  No Interest

     No interest shall be paid on payroll deductions received or held by the
Company.

9.6  Acquisition of Common Stock

     On each Purchase Date of an Offering, each Participant shall automatically
acquire, pursuant to the exercise of the Participant's Option, the number of
shares of Common Stock arrived at by dividing the total amount of the
Participant's accumulated payroll deductions for the Purchase Period by the
Purchase Price; provided, however, that the number of shares of Common Stock
purchased by the Participant shall not exceed the number of whole shares of
Common Stock so determined, unless the Plan Administrator has determined for a
future Offering that fractional shares may be issued under the Plan; and
provided, further, that the number of shares of Common Stock purchased by the
Participant shall not exceed the number of shares for which Options have been
granted to the Participant pursuant to Section 8.1.

9.7  Refund of Excess Amounts

     Any cash balance remaining in the Participant's account at the termination
of a Purchase Period that is not sufficient to purchase a whole share of Common
Stock shall be applied to the purchase of Common Stock in the new Purchase
Period, provided the Participant participates in the next Purchase Period and
the purchase complies with Section 8.1.  All other amounts remaining in a
Participant's account after a Purchase Date shall be

                                      -9-
<PAGE>

refunded to the Participant as soon as practical after the Purchase Date without
the payment of any interest.

9.8  Withholding Obligations

     At the time the Option is exercised, in whole or in part, or at the time
some or all the Common Stock is disposed of, the Participant shall make adequate
provision for federal and state withholding obligations of the Company, if any,
that arise upon exercise of the Option or upon disposition of the Common Stock.
The Company may withhold from the Participant's compensation the amount
necessary to meet such withholding obligations.

9.9  Termination of Participation

     No Common Stock shall be purchased on behalf of a Participant on a Purchase
Date if his or her participation in the Offering or the Plan has terminated on
or before such Purchase Date.

9.10 Procedural Matters

     The Company may, from time to time, establish (a) limitations on the
frequency and/or number of any permitted changes in the amount withheld during
an Offering, as set forth in Section 11.1, (b) an exchange ratio applicable to
amounts withheld in a currency other than U.S. dollars, (c) payroll withholding
in excess of the amount designated by a Participant in order to adjust for
delays or mistakes in the Company's processing of properly completed withholding
elections, and (d) such other limitations or procedures as deemed advisable by
the Company in the Company's sole discretion that are consistent with the Plan
and in accordance with the requirements of Code Section 423.

9.11 Leaves of Absence

     During leaves of absence approved by the Company and meeting the
requirements of the applicable Treasury Regulations promulgated under the Code,
a Participant may elect to continue participation in the Plan by delivering cash
payments to the Company on the Participant's normal paydays equal to the amount
of his or her payroll deduction under the Plan had the Participant not taken a
leave of absence.  Currently, the Treasury Regulations provide that a
Participant may continue participation in the Plan only during the first 90 days
of a leave of absence unless the Participant's reemployment rights are
guaranteed by statute or contract.

              SECTION 10.  COMMON STOCK PURCHASED UNDER THE PLAN

10.1 ESPP Broker

     If the Plan Administrator designates or approves a stock brokerage or other
financial services firm (the "ESPP Broker") to hold shares purchased under the
Plan for the accounts of

                                      -10-
<PAGE>

Participants, the following procedures shall apply. Promptly following each
Purchase Date, the number of shares of Common Stock purchased by each
Participant shall be deposited into an account established in the Participant's
name with the ESPP Broker. Each Participant shall be the beneficial owner of the
Common Stock purchased under the Plan and shall have all rights of beneficial
ownership in such Common Stock. A Participant shall be free to undertake a
disposition of the shares of Common Stock in his or her account at any time,
but, in the absence of such a disposition, the shares of Common Stock must
remain in the Participant's account at the ESPP Broker until the holding period
set forth in Code Section 423 has been satisfied. With respect to shares of
Common Stock for which the holding period set forth above has been satisfied,
the Participant may move those shares of Common Stock to another brokerage
account of the Participant's choosing or request that a stock certificate be
issued and delivered to him or her. Dividends paid in the form of shares of
Common Stock with respect to Common Stock in a Participant's account shall be
credited to such account. A Participant who is not subject to payment of U.S.
income taxes may move his or her shares of Common Stock to another brokerage
account of his or her choosing or request that a stock certificate be delivered
to him or her at any time, without regard to the Code Section 423 holding
period.

10.2 Notice of Disposition

     By entering the Plan, each Participant agrees to promptly give the Company
notice of any Common Stock disposed of within the later of one year from the
Purchase Date and two years from the Offering Date for such Common Stock,
showing the number of such shares disposed of and the Purchase Date and Offering
Date for such Common Stock.  This notice shall not be required if and so long as
the Company has a designated ESPP Broker.

                SECTION 11.  CHANGES IN WITHHOLDING AMOUNTS AND

                             VOLUNTARY WITHDRAWAL

11.1 Changes in Withholding Amounts

     (a)  Unless the Plan Administrator establishes otherwise for a future
Offering, during a Purchase Period, a Participant may elect to reduce payroll
contributions to 0% by completing and filing with the Company an amended
Subscription authorizing cessation of payroll deductions.  The change in rate
shall be effective as of the beginning of the next calendar month following the
date of filing the amended Subscription if the amended Subscription is filed at
least ten days prior to such date (the "Change Notice Date") and, if not, as of
the beginning of the next succeeding calendar month.  All payroll deductions
accrued by a Participant as of a Change Notice Date shall continue to be applied
toward the purchase of Common Stock on the Purchase Date, unless a Participant
withdraws from an Offering or the Plan, pursuant to Section 11.2 or Section 11.3
below.  An amended Subscription shall remain in effect until the Participant
changes such Subscription in accordance with the terms of the Plan.

                                      -11-
<PAGE>

     (b)  Unless the Plan Administrator determines otherwise for a future
Offering, a Participant may elect to increase or decrease the amount to be
withheld from his or her compensation for future Purchase Periods by filing with
the Plan Administrator an amended Subscription; provided, however, that notice
of such election must be delivered to the Plan Administrator at least ten days
prior to such Purchase Period in such form and in accordance with such terms as
the Plan Administrator may establish for an Offering.  An amended Subscription
shall remain in effect until the Participant changes such Subscription in
accordance with the terms of the Plan.

     (c)  Notwithstanding the foregoing, to the extent necessary to comply with
Code Section 423 and Section 8.1, a Participant's payroll deductions may be
decreased to 0% during any Purchase Period if the aggregate of all payroll
deductions accumulated with respect to one or more Purchase Periods ending
within the same calendar year exceeds $25,000 of Fair Market Value of the Common
Stock determined as of the first day of an Offering ($21,250 to the extent the
Purchase Price may be 85% of the Fair Market Value of the Common Stock on the
Offering Date of the Offering).  Payroll deductions shall re-commence at the
rate provided in such Participant's Subscription at the beginning of the first
Purchase Period that is scheduled to end in the following calendar year, unless
the Participant terminates participation in an Offering or the Plan as provided
in Section 11.2 or Section 11.3 below or indicates otherwise in an amended
Subscription.  Also notwithstanding the foregoing, a Participant's payroll
deductions may be decreased to 0% at such time that the aggregate of all payroll
deductions accumulated with respect to a Purchase Period exceeds the amount
necessary to purchase 1,700 shares of Common Stock for such Purchase Period.
Payroll deductions shall re-commence at the rate provided in such Participant's
Subscription at the beginning of the next Purchase Period, provided the
Participant continues to participate in the Plan and such participation complies
with Section 8.1.

11.2 Withdrawal From an Offering

     A Participant may withdraw from an Offering by completing and delivering to
the Plan Administrator a written notice of withdrawal on a form provided by the
Company for such purpose.  Such notice must be delivered prior to the end of the
Purchase Period for which such withdrawal is to be effective.  If a Participant
withdraws after the Purchase Date for a Purchase Period of an Offering, the
withdrawal shall not affect Common Stock acquired by the Participant in any
earlier Purchase Periods.  Unless otherwise indicated, withdrawal from an
Offering shall not result in a withdrawal from the Plan or any succeeding
Offering therein.  A Participant may not resume participation in the same
Offering at any time upon withdrawal from such Offering.  The Company may, from
time to time, impose a requirement that the notice of withdrawal be on file with
the Plan Administrator for a reasonable period prior to the effectiveness of the
Participant's withdrawal.

11.3 Withdrawal From the Plan

     A Participant may withdraw from the Plan by completing and delivering to
the Plan Administrator a written notice of withdrawal on a form provided by the
Plan Administrator

                                      -12-
<PAGE>

for such purpose. Such notice must be delivered prior to the end of the Purchase
Period for which such withdrawal is to be effective, or by any other date
specified by the Plan Administrator for a Future Offering.

11.4  Notice of Withdrawal; Effect of Withdrawal on Prior Purchase Periods; Re-
      enrollment in the Plan

      (a) The Company may, from time to time, impose a requirement that the
notice of withdrawal be on file with the Plan Administrator for a reasonable
period prior to the effectiveness of the Participant's withdrawal.

      (b) If a Participant withdraws after the Purchase Date for a Purchase
Period of an Offering, the withdrawal shall not affect Common Stock acquired by
the Participant in any earlier Purchase Periods.

      (c) In the event a Participant voluntarily elects to withdraw from an
Offering or from the Plan, the Participant may not resume participation in the
Plan during the same Offering, but may participate in any subsequent Offering
under the Plan by again satisfying the definition of Eligible Employee.  In the
event a Participant elects to withdraw from the Plan, such Participant must also
re-enroll in the Plan in accordance with Section 7.1.  The Company may impose,
from time to time, a requirement that the notice of withdrawal be on file with
the Plan Administrator for a reasonable period prior to the effectiveness of the
Participant's withdrawal.

11.5  Return of Payroll Deductions

      Upon withdrawal from an Offering pursuant to Section 11.2 or from the Plan
pursuant to Section 11.3, the withdrawing Participant's accumulated payroll
deductions that have not been applied to the purchase of Common Stock shall be
returned as soon as practical after the withdrawal, without the payment of any
interest, to the Participant and the Participant's interest in the Offering
shall terminate.  Such accumulated payroll deductions may not be applied to any
other Offering under the Plan.

                       SECTION 12.  AUTOMATIC WITHDRAWAL

      If the Fair Market Value of the Common Stock on any Purchase Date of an
Offering is less than the Fair Market Value of the Common Stock on the Offering
Date for such Offering, then every Participant shall automatically (a) be
withdrawn from such Offering at the close of such Purchase Date and after the
acquisition of the shares of Common Stock for such Purchase Period and (b) be
enrolled in the Offering commencing on the first business date subsequent to
such Purchase Period, provided the Participant is eligible to participate in the
Plan and has not elected to terminate participation in the Plan pursuant to
Section 11.2 or 11.3.

                     SECTION 13.  TERMINATION OF EMPLOYMENT

      Termination of a Participant's employment with the Company for any reason,
including retirement, death or the failure of a Participant to remain an
Eligible Employee,

                                      -13-
<PAGE>

shall immediately terminate the Participant's participation in the Plan. The
payroll deductions credited to the Participant's account since the last Purchase
Date shall, as soon as practical, be returned to the Participant or, in the case
of a Participant's death, to the Participant's legal representative or
designated beneficiary as provided in Section 14.2, and all the Participant's
rights under the Plan shall terminate. Interest shall not be paid on sums
returned to a Participant pursuant to this Section 13.

                    SECTION 14.  RESTRICTIONS ON ASSIGNMENT

14.1  Transferability

      An Option granted under the Plan shall not be transferable and such Option
shall be exercisable during the Participant's lifetime only by the Participant.
The Company will not recognize, and shall be under no duty to recognize, any
assignment or purported assignment by a Participant of the Participant's
interest in the Plan, of his or her Option or of any rights under his or her
Option.

14.2  Beneficiary Designation

      The Plan Administrator may permit a Participant to designate a beneficiary
who is to receive any shares and cash, if any, from the Participant's account
under the Plan in the event the Participant dies after the Purchase Date for an
Offering but prior to delivery to such Participant of such shares and cash.  In
addition, the Plan Administrator may permit a Participant to designate a
beneficiary who is to receive any cash from the Participant's account under the
Plan in the event that the Participant dies before the Purchase Date for an
Offering.  Such designation may be changed by the Participant at any time by
written notice to the Plan Administrator.

           SECTION 15.  NO RIGHTS AS STOCKHOLDER UNTIL SHARES ISSUED

      With respect to shares of Common Stock subject to an Option, a Participant
shall not be deemed to be a stockholder of the Company, and he or she shall not
have any of the rights or privileges of a stockholder.  A Participant shall have
the rights and privileges of a stockholder of the Company when, but not until, a
certificate or its equivalent has been issued to the Participant for the shares
following exercise of the Participant's Option.

   SECTION 16.  LIMITATIONS ON SALE OF COMMON STOCK PURCHASED UNDER THE PLAN

      The Plan is intended to provide Common Stock for investment and not for
resale. The Company does not, however, intend to restrict or influence any
Participant in the conduct of his or her own affairs. A Participant, therefore,
may sell Common Stock purchased under the Plan at any time he or she chooses
subject to compliance with Company policies and any

                                      -14-
<PAGE>

applicable federal and state securities laws. A Participant assumes the risk of
any market fluctuations in the price of the Common Stock.

               SECTION 17.  AMENDMENT OR TERMINATION OF THE PLAN

      (a) The Board may amend the Plan in such respects as it shall deem
advisable; provided, however, that, to the extent required for compliance with
Code Section 423 or any applicable law or regulation, stockholder approval will
be required for any amendment that will (i) increase the total number of shares
as to which Options may be granted under the Plan, (ii) modify the class of
employees eligible to receive Options, or (iii) otherwise require stockholder
approval under any applicable law or regulation; and provided further, that
except as provided in Section 20 and this Section 17, no amendment to the Plan
shall make any change in any Option previously granted which adversely affects
the rights of any Participant.

      (b) The Plan shall continue in effect for ten years after the date of its
adoption by the Board.  Notwithstanding the foregoing, the Board may at any time
and for any reason terminate or suspend the Plan.  During any period of
suspension or upon termination of the Plan, no Options shall be granted.

      (c) Except as provided in Section 20, no such termination of the Plan may
affect Options previously granted, provided that the Plan or an Offering may be
terminated by the Board on a Purchase Date or by the Board's setting a new
Purchase Date with respect to an Offering and a Purchase Period then in progress
if the Board determines that termination of the Plan and/or the Offering is in
the best interests of the Company and the stockholders or if continuation of the
Plan and/or the Offering would cause the Company to incur adverse accounting
charges as a result of a change after the effective date of the Plan in the
generally accepted accounting rules applicable to the Plan.

                     SECTION 18.  NO RIGHTS AS AN EMPLOYEE

      Nothing in the Plan shall be construed to give any person (including any
Eligible Employee or Participant) the right to remain in the employ of the
Company or a Parent Corporation or Subsidiary Corporation or to affect the right
of the Company or a Parent Corporation or Subsidiary Corporation to terminate
the employment of any person (including any Eligible Employee or Participant) at
any time with or without cause.

                     SECTION 19.  EFFECT UPON OTHER PLANS

      The adoption of the Plan shall not affect any other compensation or
incentive plans in effect for the Company or any Parent Corporation or
Subsidiary Corporation.  Nothing in the Plan shall be construed to limit the
right of the Company, any Parent Corporation or Subsidiary Corporation to (a)
establish any other forms of incentives or compensation for employees of the
Company, a Parent Corporation or Subsidiary Corporation or (b) grant or assume
options otherwise than under the Plan in connection with any proper corporate
purpose, including, but not by way of limitation, the grant or assumption of
options in

                                      -15-
<PAGE>

connection with the acquisition, by purchase, lease, merger, consolidation or
otherwise, of the business, stock or assets of any corporation, firm or
association.

                           SECTION 20.  ADJUSTMENTS

20.1  Adjustment of Shares

      In the event that, at any time or from time to time, a stock dividend,
stock split, spin-off, combination or exchange of shares, recapitalization,
merger, consolidation, distribution to stockholders other than a normal cash
dividend, or other change in the Company's corporate or capital structure
results in (a) the outstanding shares, or any securities exchanged therefor or
received in their place, being exchanged for a different number or kind of
securities of the Company or of any other corporation or (b) new, different or
additional securities of the Company or of any other corporation being received
by the holders of shares of Common Stock, then (subject to any required action
by the Company's stockholders), the Board or the Committee, in its sole
discretion, shall make such equitable adjustments as it shall deem appropriate
in the circumstances in (i) the maximum number and kind of shares of Common
Stock subject to the Plan as set forth in Section 4, (ii) the number and kind of
securities that are subject to any outstanding Option and the per share price of
such securities and (iii) the maximum number of shares of Common Stock that may
be purchased by a Participant in a Purchase Period.  The determination by the
Board or the Committee as to the terms of any of the foregoing adjustments shall
be conclusive and binding.  Notwithstanding the foregoing, a merger, asset sale,
dissolution or liquidation of the Company shall not be governed by this Section
20.1 but shall be governed by Sections 20.2 and 20.3, respectively.

20.2  Corporate Transaction

      In the event of a proposed Corporate Transaction, each outstanding Option
shall be assumed or an equivalent option substituted by the successor
corporation or parent thereof (the "Successor Corporation").  In the event that
the Successor Corporation refuses to assume or substitute for the Option, the
Offering then in progress shall be shortened by setting a new Purchase Date.
The new Purchase Date shall be a specified date before the date of the proposed
Corporate Transaction.  The Board shall notify each Participant in writing,
prior to the new Purchase Date, that the Purchase Date for the Participant's
Option has been changed to the new Purchase Date and that the Participant's
Option shall be exercised automatically on the new Purchase Date, unless prior
to such date the Participant has withdrawn from the Offering or the Plan as
provided in Section 11.

20.3  Dissolution or Liquidation of the Company

      In the event of the proposed dissolution or liquidation of the Company,
the Offering then in progress shall be shortened by setting a new Purchase Date
and shall terminate immediately prior to the consummation of such proposed
dissolution or liquidation, unless provided otherwise by the Board. The new
Purchase Date shall be a specified date before the date of the Company's
proposed dissolution or liquidation. The Board shall notify each

                                      -16-
<PAGE>

Participant in writing, at least ten business days prior to the new Purchase
Date, that the Purchase Date for the Participant's Option has been changed to
the new Purchase Date and that the Participant's Option shall be exercised
automatically on the new Purchase Date, unless prior to such date the
Participant has withdrawn from the Offering or the Plan as provided in Section
11.

20.4  Limitations

      The grant of Options shall in no way affect the Company's right 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.

              SECTION 21.  REGISTRATION; CERTIFICATES FOR SHARES

      Notwithstanding any other provision of the Plan, the Company shall have no
obligation to issue or deliver any shares of Common Stock under the Plan or make
any other distribution of benefits under the Plan unless such issuance, delivery
or distribution would comply with all applicable laws (including, without
limitation, the requirements of the Securities Act), and the applicable
requirements of any securities exchange or similar entity.

      The Company shall be under no obligation to any Participant to register
for offering or resale or to qualify for exemption under the Securities Act, or
to register or qualify under state securities laws, any shares of Common Stock,
security or interest in a security paid or issued under, or created by, the
Plan, or to continue in effect any such registrations or qualifications if made.
The Company may issue certificates for shares with such legends and subject to
such restrictions on transfer and stop-transfer instructions as counsel for the
Company deems necessary or desirable for compliance by the Company with federal
and state securities laws.

      To the extent that the Plan or any instrument evidencing shares of Common
Stock provides for issuance of stock certificates to reflect the issuance of
such shares, the issuance may be effected on a noncertificated basis, to the
extent not prohibited by applicable law or the applicable rules of any stock
exchange.

                          SECTION 22.  EFFECTIVE DATE

      The Plan will become effective on the IPO Date, so long as it is approved
by the Company's stockholders as of such date.

                                      -17-

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