Document:

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                                                                    Exhibit 10.3

                          AMENDMENT TO TCSI CORPORATION
                            1991 STOCK INCENTIVE PLAN
                               (December 8, 1995)

     WHEREAS, Section 5.3 of the 1991 Stock Incentive Plan, as amended (the
"Plan"), permits amendment of the Plan by the Board of Directors of TCSI
Corporation (the "Company").

     NOW, THEREFORE, the Company hereby amends Section 1.4 of the Plan to read
as set forth below:

     1.4 Shares Available Under the Plan

     Thereby is hereby reserved for issuance under this Plan, subject to the
provisions of Article IV hereof, and the maximum aggregate number of common
shares that may be issued pursuant to this Plan is 5,000,000 which shall be
increased by 500,000 shares per year beginning on January 1, 1997.

     The shares reserved for issuance to this Plan may be authorized shares.
Shares which are subject to Options which, by reason of the expiration,
cancellation, or other termination of such options prior to issuance, are not
issued, and restricted shares that are forfeited after their issuance, shall
again be available for future Awards.

     All Awards to participants who are subject to the reporting requirements of
Section 16(a) of the Securities Exchange Act of 1934, as amended, granted
hereunder prior to submission of this amendment to the Plan for shareholder
approval, shall be null and void if the shareholders of the Company do not
approve this amendment to the Plan on or before December 31, 1996.

<PAGE>

                          AMENDMENT TO TCSI CORPORATION
                            1991 STOCK INCENTIVE PLAN
                                 (March 1, 1996)

     WHEREAS, Section 5.3 of the 1991 Stock Incentive Plan, as amended (the
"Plan"), permits amendment of the Plan by the Board of Directors of TCSI
Corporation (the "Company");

     WHEREAS, the following amendments to the Plan will become effective upon
approval by the shareholders of the Company:

     NOW, THEREFORE, the Plan is amended to read as set forth below:

     1.   Article I, Section 1.2(f) of the Plan is amended to read as follows:

          "(f) "Committee" shall mean a committee of at least two (2)
          disinterested Directors (who qualify as "disinterested" within the
          meaning of Section 162(m) of the Code and the regulations of the U.S.
          Treasury Department promulgated thereunder) appointed by the Board to
          administer the Plan."

     2.   Article I of the Plan is amended by adding the following new section:

          "1.8 Limitation on Number of Shares Underlying Options Awards Made
          Under the Plan to Any One Participant. To the extent required by
          applicable Regulations promulgated under Section 162(m) of the Code,
          the maximum number of shares of common stock subject to Option Awards
          that may be granted to any one Participant under the Plan in any
          fiscal year is 200,000, inclusive of all Options that have been
          canceled, surrendered, or repriced."

     3.   Article II, Section 2.2(d) is amended by adding the following new
          final sentence, as follows:

          "The number of shares underlying Option Awards to any one Participant
          is subject to the limitation of Section 1.8 hereof."

     4.   Article II, Section 2.3(h) is amended by adding the following new
          final sentence, as follows:

          "The number of shares underlying Option Awards to any one Participant
          is subject to the limitation of Section 1.8 hereof."<PAGE>

                                                                    Exhibit 10.7

                                TCSI CORPORATION

                    1994 OUTSIDE DIRECTORS STOCK OPTION PLAN
                            (as amended May 5, 1998)

1.    Purpose

      The purpose of this Outside Directors Stock Option Plan (the "Plan") of
      TCSI Corporation, a Nevada corporation (the "Company"), is to provide an
      incentive to each Outside Directors (as hereinafter defined) of the
      Company to increase stockholder value by granting to each such Outside
      Directors options ("Stock Options") to purchase shares of the Company's
      common stock, par value $0.10 per share ("Common Stock").

      The term "Outside Director" refers to those members of the Company's Board
      of Directors (the "Board") who are not employees of the Company or any of
      its subsidiaries.

2.    Eligibility

      Each Outside Director shall receive Stock Options granted in accordance
      with the terms of the Plan.

3.    Shares To Be Issued

      The maximum number of shares of Common Stock that may be subject to Stock
      Options granted hereunder shall be 300,000. Shares of Common Stock subject
      to Stock Options granted hereunder which are not issued, by reason of the
      expiration, cancellation, forfeiture or other termination of such Stock
      Options prior to exercise thereof, shall again be available for future
      grants hereunder.

      Shares of Common Stock to be issued upon exercise of Stock Options granted
      hereunder may be authorized and unissued shares, or a combination thereof.

4.    Administration Of The Plan

      The Plan shall be administered by the Board or a committee thereof. Grants
      of Stock Options hereunder and the terms of such Stock Options shall be in
      accordance with Sections 8 through 14 herein. However, the Board shall
      interpret the Plan, including Stock Options granted hereunder. All such
      interpretations relating to the Plan adopted by the Board shall be
      conclusive and binding on all parties. Each Stock Option granted hereunder
      shall be evidenced by a written agreement (the "Agreement") between the
      Company and the optionee and, upon execution by the Company and the
      optionee and delivery of the Agreement to the Company, such Stock Option
      shall be effective as of its date of grant.

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5.    Adjustments Upon Changes in Capitalization, Dissolution, Merger, Asset
      Sale or Change of Control.

      Changes in Capitalization
      Subject to any required action by the shareholders of the Company, the
      number of shares of Common Stock covered by each outstanding Stock Option,
      the number of shares of Common Stock which have been authorized for
      issuance under the Plan but as to which no Stock Options have yet been
      granted or which have been returned to the Plan upon cancellation or
      expiration of the Stock Option, as well as the price per share of Common
      Stock covered by each such outstanding Stock Option, and the number of
      shares of Common Stock issuable pursuant to the automatic grant provisions
      of Section 9 hereof shall be proportionately adjusted for any increase or
      decrease in the number of issued shares of Common Stock resulting from a
      stock split, reverse stock split, stock dividend, combination or
      reclassification of the Common Stock, or any other increase or decrease in
      the number o{ issued shares of Common Stock effected without receipt of
      consideration by the Company; provided, however, that conversion of any
                                    --------  -------
      convertible securities of the Company shall not be deemed to have been
      "effected without receipt of consideration." Except as expressly provided
      herein, no issuance by the Company of shares of stock of any class, or
      securities convertible into shares of stock of any class, shall affect,
      and no adjustment by reason thereof shall be made with respect to, the
      price or price of shares of Common Stock subject to a Stock Option.

      Dissolution or Liquidation
      In the event of the proposed dissolution or liquidation of the Company, to
      the extent that a Stock Option has not been previously exercised, it will
      terminate immediately prior to the consummation of such proposed action.

      Merger or Asset Sales
      In the event of a merger of the Company with or into another corporation,
      or the sale of substantially all of the assets of the Company, each
      outstanding Stock Option shall be assumed or an equivalent option shall be
      substituted by the successor corporation or a parent or subsidiary of the
      successor corporation. In the event that the successor corporation does
      not agree to assume the Stock Option or to substitute an equivalent
      option, each outstanding Stock Option shall become fully vested and
      exercisable, including as to shares of Common Stock as to which it would
      not otherwise be exercisable. If a Stock Option becomes fully vested and
      exercisable in the event of a merger or sale of assets, the Board shall
      notify the Optionee that the Stock Option shall be fully exercisable for a
      period of thirty (30) days from the date of such notice, and the Stock
      Option shall terminate upon the expiration of such period. For the
      purposes of this paragraph, the Stock Option shall be considered assumed
      if, following the merger or sale of assets, the option or right confers
      the right to purchase, for each share of Common Stock subject to the Stock
      Option immediately prior to the merger or sale of assets, the
      consideration (whether stock, cash, or other securities or property)
      received in the merger or sale of assets by holders of Common Stock for
      each share of Common

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      Stock held on the effective date of the transaction (and if holders were
      offered a choice of consideration, the type of consideration chosen by the
      holders of a majority of the outstanding share of Common Stock).

6.    Effective Date and Term of Plan

      The Plan shall be submitted to the stockholders of the Company for
      approval and if approved shall become effective as of the date of approval
      by the Board. Stock Options may be granted hereunder prior to submission
      of the Plan for stockholder approval, however, any grants hereunder shall
      be null and void if the stockholders of the Company do not approve the
      Plan. The Plan shall terminate ten years after its effective date unless
      terminated prior thereto by action of the Board. No Stock Options shall be
      granted hereunder after termination of the Plan, but termination of the
      Plan shall not affect the rights of any optionee under any Stock Option
      granted thereunder prior to termination of the Plan.

7.    Amendments

      The Plan may be amended or terminated by the Board in any respect, at any
      time, subject to any required stockholder approval of any amendment. No
      Stock Option granted hereunder may be altered or canceled, except in
      accordance with its terms, without the written consent of the optionee.

8.    Securities Matters

      An Outside Director entitled to receive Common Stock upon exercise of any
      Stock Option may be required by the Company, as a condition prerequisite
      to such delivery, to agree in writing that all Common Stock to be acquired
      pursuant thereto shall be held for his or her own account without a view
      to any further distribution thereof, that the certificates for such Common
      Stock shall bear an appropriate legend to that effect and that such Common
      Stock will not be transferred or disposed of except in compliance with
      applicable federal and state laws.

      The Company shall be under no obligation to effect the registration
      pursuant to the Securities Act of 1933 of any Common Stock to be issued
      hereunder or to effect similar compliance under any state laws.

9.    Grants of Stock Options

      A Stock Option of 5,000 shares of Common Stock shall be granted to each
      Outside Director as of December 2, 1994. Thereafter, a Stock Option of
      20,000 shares of Common Stock shall be granted to each New Outside
      Director (as hereinafter defined) upon appointment or election to the
      Board. Subject to the availability of sufficient shares of Common Stock in
      accordance with Section 3 hereof, a Stock Option for 5,000 shares of
      Common Stock shall be granted to each Outside Director annually on the
      anniversary of the initial award made to the

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      Outside Director under this Plan, but only if such Outside Director is an
      Outside Director at such time.

      In the event that several Outside Directors become entitled to be granted
      Stock Options hereunder simultaneously, and by reason of Section 3 hereof
      there is an insufficient number of shares of Common Stock available for
      such grants, the remaining shares of Common Stock shall be allocated in
      equal amounts to Stock Options granted to such several Outside Directors
      and to any other Outside Director who becomes entitled to be granted Stock
      Options within the subsequent twelve month period.

      The term "New Outside Director" refers to a person who (i) is appointed or
      elected to the Board, (ii) will be an Outside Director after such
      appointment or election and (iii) was not an outside member of the Board
      for a continuous period or sixty (60) days prior to such appointment or
      election. Such term does include an employee director who terminates
      employment with the Company and remains a member of the Board.

10.   Period of Exercisability

      Each Stock Option granted hereunder shall become exercisable as to 139
      shares (or, in the case of a grant to a New Outside Director, 556 shares)
      of Common Stock at the end of the month of grant (the "Initial Date of
      Exercisability") and as to an equal number of shares of Common Stock on
      the last day of each of the next thirty-five calendar months following the
      Initial Date of Exercisability. No Stock Option granted hereunder shall be
      exercisable more than five (5) years after the date of grant of such Stock
      Option.

11.   Termination of Directorship

      Except as set forth below, an optionee who ceases to be a member of the
      Board (a "Termination") may not thereafter exercise any Stock Option
      granted hereunder to such optionee.

      Death
      If an optionee dies while a Director of the Company, then immediately upon
      the death of such optionee, each Stock Option granted hereunder and held
      by such optionee will be exercisable by such optionee's executor,
      administrator, legal representative or transferee pursuant to Section 14
      hereof, until the expiration of the term of such Stock Option, for all of
      the then remaining shares of Common Stock covered thereby, notwithstanding
      Section 10.

      Termination Other Than By Death
      If an optionee ceases to be a director of the Company other than by reason
      of the optionee's death, then each Stock Option granted thereunder and
      held by such optionee will be exercisable until ninety (90) days following
      such termination only to the extent that such Stock Option was exercisable
      immediately prior to

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      such optionee's Termination and will lapse with respect to any portion
      thereof which was not exercisable immediately prior to such optionee's
      Termination.

      If an optionee dies after a Termination, then each Stock Option granted
      hereunder and held by such optionee will be exercisable by such optionee's
      executor, administrator, legal representative or transferee pursuant to
      Section 14 hereof, until the expiration of the term of such Stock Option,
      only to the extent that such Stock Option was exercisable immediately
      prior to such optionee's death.

12.   Price

      The per share purchase price (the "Purchase Price") of shares of Common
      Stock, subject to a Stock Option granted hereunder shall be equal to the
      fair market value of the share of Common Stock on the date of grant of
      such Stock Option. The fair market value or a share of Common Stock shall
      be equal to the average closing sales price on the immediately preceding
      five trading days of a share of common stock as reported by NASDAQ or the
      exchange on which the Common Stock is traded (or, if not reported by
      NASDAQ or such exchange on such date, on the next earlier date for which
      such price is reported).

13.   Manner of Exercise

      The exercise of a Stock Option granted hereunder shall be made by the
      delivery by the optionee or a personal representative of written notice of
      such election to the Company. Upon such exercise, payment (or arrangement
      therefor) of the Purchase Price of the shares of Common Stock being
      purchased shall be paid (i) in cash; (ii) in whole shares of Common Stock
      of the Company having a fair market value equal to the Purchase Price of
      the shares of Common Stock being purchased; provided, however, shares of
      Common Stock so delivered to the Company shall have been held for at least
      six months by the optionee if they were acquired, directly or indirectly,
      from the Company; or (iii) in a combination thereof. The Plan permits an
      option granted under the Plan to be exercised by a broker-dealer acting on
      behalf of the participant upon delivery of a duly executed notice of
      election of exercise to the broker-dealer, if adequate provision has been
      made for the payment of any withholding taxes due and the parties
      otherwise comply with Regulation T as promulgated by the Federal Reserve
      Board.

14.   Non-Transferability of Options

      Options granted hereunder may not be sold, pledged, assigned,
      hypothecated, transferred, or disposed of in any manner other than by will
      or by the laws of descent or distribution and may be exercised, during the
      lifetime of the Optionee, only by the Optionee; provided, however, that in
      the event that the rules under Rule 16b-3 promulgated under the Securities
      Exchange Act of 1934, as amended, are changed such that Options granted
      under this Plan may be transferable and still comply with Rule 16b-3 as
      then in effect, then Options granted hereunder shall be transferable to
      the extent then permitted under Rule 16b-3.

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<PAGE>

                                TCSI CORPORATION

                        DIRECTORS STOCK OPTION AGREEMENT
                            (as amended May 5, 1998)

TCSI Corporation, a Nevada corporation (the "Company") has granted to
____________ (the "Optionee"), an option to purchase a total of ________ shares
of the Company's Common Stock (the "Optioned Stock"), at the price determined as
provided herein, and in all respects subject to the terms, definitions and
provisions of the Company's 1994 Outside Directors Stock Option Plan (the
"Plan"), as amended May 5, 1998, adopted by the Company which is incorporated
herein by reference. The terms defined in the Plan shall have the same defined
meanings herein.

1.    Nature of the Option. This Option is a non-statutory option and is not
      --------------------
      intended to qualify for any special tax benefits to the Optionee.

2.    Exercise Price. The exercise price is $____ for each share of Common
      --------------
      Stock.

3.    Exercise of Option. This Option shall be exercisable during its term in
      ------------------
      accordance with the provision of Section 10 of the Plan as follows:

      (i)   Right to Exercise.
            -----------------

            (a)   This Option shall become exercisable in installments
                  cumulatively with respect to ______ Shares of the Optioned
                  Stock at the end of the month of grant and as to an additional
                  ______ shares of the Optioned Stock on the last day of each
                  month thereafter, so that one hundred percent (100%) of the
                  Optioned Stock shall be exercisable three years after the date
                  of grant.

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

            (c)   In the event of Optionee's death, disability of other
                  termination of service as a Director, the exercisability of
                  the Option is governed by Section 11 of the Plan.

      (ii)  Method of Exercise. This Option shall be exercisable by written
            ------------------
            notice which shall state the election to exercise the Option and the
            number of Shares in respect of which the Option is being exercised.
            Such written notice, in the form attached hereto as Exhibit A, shall
            be signed by the 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.

4.    Method of Payment. Payment of the exercise price shall be by any of the
      -----------------
      following or a combination thereof, at the election of the Optionee:

<PAGE>

      (i)     cash;

      (ii)    check;

      (iii)   wire transfer; or

      (iv)    delivery of a properly executed exercise notice together with such
              other documentation as the Company and the broker, if applicable,
              shall require to effect an exercise of the Option and delivery to
              the Company of the sale or loan proceeds required to pay the
              exercise price.

5.    Restrictions on Exercise. This Option may not be exercised 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 regulations, or if
      such issuance would not comply with the requirements of any stock exchange
      upon which the Shares may then be listed. 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.

6.    Non-Transferability of Option.
      -----------------------------

      Options granted hereunder may not be sold, pledged, assigned,
      hypothecated, transferred, or disposed of in any manner other than by will
      or by the laws of descent or distribution and may be exercised, during the
      lifetime of the Optionee, only by the Optionee; provided, however, that in
      the event that the rules under Rule 16b-3 promulgated under the Securities
      Exchange Act of 1934, as amended, are changed such that Options granted
      under this Plan may be transferable and still comply with Rule 16b-3 as
      then in effect, then Options granted hereunder shall be transferable to
      the extent then permitted under Rule 16b-3.

7.    Term of Option. This Option may not be exercised more than five years (5)
      --------------
      from the date of grant of this Option, and may be exercised during such
      period only in accordance with the Plan and the terms of this Option.

8.    Taxation Upon Exercise of Option. Optionee understands that, upon exercise
      --------------------------------
      of this Option, he/she will recognize income for tax purposes in an amount
      equal to the excess of the then Fair Market Value of Shares purchased over
      the exercise price paid for such Shares. Since the Optionee is subject to
      Section 16(b) of the Securities Exchange Act of 1934, as amended, under
      certain limited circumstances the measurement and timing of such income
      (and the commencement of any capital gain holding period) may be deferred,
      and the Optionee is advised to contact a tax advisor concerning the
      application of Section 83 of the Internal Revenue Code of 1986, as
      amended, in general and the availability an 83(b) election in particular
      in connection with the exercise of the Option. Upon a resale of such
      Shares by the Optionee, any difference between the sale price and the Fair
      Market Value of the Shares on the date of exercise of

<PAGE>

      the Option, to the extent not included in income as described above, will
      be treated as capital gain or loss.

DATE OF GRANT:    _______________

                                       TCSI Corporation
                                       a Nevada Corporation

                                       By:_______________________________

Optionee acknowledges receipt of a copy of the Plan, a copy of which is attached
hereto, and represents that he/she is familiar with the terms and provisions
thereof, and hereby accepts this Option subject to all of the terms and
provision thereof. Optionee hereby agrees to accept as binding, conclusive and
final all decisions or interpretations of the Board upon any questions arising
under the Plan.

Dated:_______________________          __________________________________
                                       Optionee

<PAGE>

                                    EXHIBIT A

                        DIRECTORS STOCK OPTION AGREEMENT

To:         TCSI Corporation
            1080 Marina Village Parkway
            Alameda, CA 94501-1046
            Attn: Secretary

Subject:    Notice of Intent to Exercise Options under the TCSI Corporation 1994
            Outside Directors Stock Option Plan (As amended May 5, 1998)

________________________________________________________________________________

I am the "Optionee" holding an Option pursuant to the Option Agreement entered
into with the Company dated _______________________, 2001 (the "Agreement").
Pursuant to the Agreement, I hereby provide you with official notice that I
elect to exercise my Option as follows (select one):

A.    EXERCISE OF OPTION AND IMMEDIATE SALE OF SHARES THROUGH A "CASHLESS"
      EXERCISE PROGRAM:

          1)    NUMBER OF SHARES:_______________

          I understand and agree that the fair market value of the shares issued
          and sold upon this exercise of my option will be made as of the day
          that the shares are sold pursuant to the "cashless" exercise program.

          I further understand and agree that appropriate withholdings for
          federal and state taxes shall be withheld from my "cashless" exercise
          program account before the proceeds of the sale of the shares are
          remitted to me.

B.    EXERCISE OF OPTION WITH SHARES TO BE HELD FOR FUTURE SALE;

          1)    NUMBER OF SHARES:_______________

          2)    METHOD OF PAYMENT:_____________

          I understand and agree that the determination of the fair market value
          of the shares issued upon this exercise of my Option shall be made as
          of the day that this Notice of Exercise is received by the Secretary
          of the Company.

          Concurrently herewith, I have paid in cash or by check any amounts
          required to be withheld to satisfy any applicable tax withholding as a
          result of the exercise of my option.

      The certificate for the shares should be forwarded to me at:

      ADDRESS:__________________________________________________________________

<PAGE>

I further understand that this election is irrevocable once it is effective in
accordance with the terms of the Agreement

_________________________________          _____________________
Signature                                  Date

_________________________________
Print Name

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