Document:

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                                                                    EXHIBIT 4.10

                               LIVE SOFTWARE, INC.
                      1999 STOCK OPTION/STOCK ISSUANCE PLAN

                                   ARTICLE ONE

                               GENERAL PROVISIONS

I.      PURPOSE OF THE PLAN

        This 1999 Stock Option/Stock Issuance Plan is intended to promote the
interests of Live Software, Inc., a California corporation, by providing
eligible persons in the Corporation's employ or service with the opportunity to
acquire a proprietary interest, or otherwise increase their proprietary
interest, in the Corporation as an incentive for them to continue in such employ
or service.

        Capitalized terms herein shall have the meanings assigned to such terms
in the attached Appendix.

II.     STRUCTURE OF THE PLAN

        A. The Plan shall be divided into two (2) separate equity programs:

               (i) the Option Grant Program under which eligible persons may, at
the discretion of the Plan Administrator, be granted options to purchase shares
of Common Stock, and

               (ii) the Stock Issuance Program under which eligible persons may,
at the discretion of the Plan Administrator, be issued shares of Common Stock
directly, either through the immediate purchase of such shares or as a bonus for
services rendered the Corporation (or any Parent or Subsidiary).

        B. The provisions of Articles One and Four shall apply to both equity
programs under the Plan and shall accordingly govern the interests of all
persons under the Plan.

III.    ADMINISTRATION OF THE PLAN

        A. The Plan shall be administered by the Board. However, any or all
administrative functions otherwise exercisable by the Board may be delegated to
the Committee. Members of the Committee shall serve for such period of time as
the Board may determine and shall be subject to removal by the Board at any
time. The Board may also at any time terminate the functions of the Committee
and reassume all powers and authority previously delegated to the Committee.

        B. The Plan Administrator shall have full power and authority (subject
to the provisions of the Plan) to establish such rules and regulations as it may
deem appropriate for

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proper administration of the Plan and to make such determinations under, and
issue such interpretations of, the Plan and any outstanding options or stock
issuances thereunder as it may deem necessary or advisable. Decisions of the
Plan Administrator shall be final and binding on all parties who have an
interest in the Plan or any option grant or stock issuance thereunder.

IV.     ELIGIBILITY

        A. The persons eligible to participate in the Plan are as follows:

               (i) Employees,

               (ii) non-employee members of the Board or the non-employee
members of the board of directors of any Parent or Subsidiary; and

               (iii) consultants and other independent advisors who provide
services to the Corporation (or any Parent or Subsidiary).

        B. The Plan Administrator shall have full authority to determine, (i)
with respect to the grants made under the Option Grant Program, which eligible
persons are to receive the option grants, the time or times when those grants
are to be made, the number of shares to be covered by each such grant, the
status of the granted option as either an Incentive Option or a Non-Statutory
Option, the time or times when each option is to become exercisable, the vesting
schedule (if any) applicable to the option shares and the maximum term for which
the option is to remain outstanding, and (ii) with respect to stock issuances
made under the Stock Issuance Program, which eligible persons are to receive
such stock issuances, the time or times when those issuances are to be made, the
number of shares to be issued to each Participant, the vesting schedule (if any)
applicable to the issued shares and the consideration to be paid by the
Participant for such shares.

        C. The Plan Administrator shall have the absolute discretion either to
grant options in accordance with the Option Grant Program or to effect stock
issuances in accordance with the Stock Issuance Program.

V.      STOCK SUBJECT TO THE PLAN

        A. The stock issuable under the Plan shall be shares of authorized but
unissued or reacquired Common Stock. The maximum number of shares of Common
Stock which may be issued over the term of the Plan shall not exceed 2,000,000
shares.

        B. Shares of Common Stock subject to outstanding options shall be
available for subsequent issuance under the Plan to the extent (i) the options
expire or terminate for any reason prior to exercise in full or (ii) the options
are cancelled in accordance with the cancellation-regrant provisions of Article
Two. Unvested shares issued under the Plan and subsequently repurchased by the
Corporation, at the option exercise or direct issue price paid per share,
pursuant to the Corporation's repurchase rights under the Plan shall be added
back to the number of shares of Common Stock reserved for issuance under the
Plan and shall accordingly be

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available for reissuance through one or more subsequent option grants or direct
stock issuances under the Plan.

        C. Should any change be made to the Common Stock by reason of any stock
split, stock dividend, recapitalization, combination of shares, exchange of
shares or other change affecting the outstanding Common Stock as a class without
the Corporation's receipt of consideration, appropriate adjustments shall be
made to (i) the maximum number and/or class of securities issuable under the
Plan and (ii) the number and/or class of securities and the exercise price per
share in effect under each outstanding option in order to prevent the dilution
or enlargement of benefits thereunder. The adjustments determined by the Plan
Administrator shall be final, binding and conclusive. In no event shall any such
adjustments be made in connection with the conversion of one or more outstanding
shares of the Corporation's preferred stock into shares of Common Stock.

                                   ARTICLE TWO

                              OPTION GRANT PROGRAM

I.      OPTION TERMS

        Each option shall be evidenced by one or more documents in the form
approved by the Plan Administrator; provided, however, that each such document
shall comply with the terms specified below. Each document evidencing an
Incentive Option shall, in addition, be subject to the provisions of the Plan
applicable to such options.

        A.     EXERCISE PRICE.

               1. The exercise price per share shall be fixed by the Plan
Administrator in accordance with the following provisions:

                      (i) The exercise price per share shall not be less than
eighty-five percent (85%) of the Fair Market value per share of Common Stock on
the option grant date.

                      (ii) If the person to whom the option is granted is a 10%
Shareholder, then the exercise price per share shall not be less than one
hundred ten percent (110%) of the Fair Market Value per share of Common Stock on
the option grant date.

               2. The exercise price shall become immediately due upon exercise
of the option and shall, subject to the provisions of Section I of Article Four
and the documents evidencing the option, be payable in cash or check made
payable to the Corporation. Should the Common Stock be registered under Section
12 of the 1934 Act at the time the option is exercised, then the exercise price
may also be paid as follows:

                      (i) in shares of Common Stock held for the requisite
period necessary to avoid a charge to the Corporation's earnings for financial
reporting purposes and valued at Fair Market Value on the Exercise Date, or

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                      (ii) to the extent the option is exercised for vested
shares, through a special sale and remittance procedure pursuant to which the
Optionee shall concurrently provide irrevocable instructions (A) to a
Corporation-designated brokerage firm to effect the immediate sale of the
purchased shares and remit to the Corporation, out of the sale proceeds
available on the settlement date, sufficient funds to cover the aggregate
exercise price payable for the purchased shares plus all applicable Federal,
state and local income and employment taxes required to be withheld by the
Corporation by reason of such exercise and (B) to the Corporation to deliver the
certificates for the purchased shares directly to such brokerage firm in order
to complete the sale.

        Except to the extent such sale and remittance procedure is utilized,
payment of the exercise price for the purchased shares must be made on the
Exercise Date.

        B. EXERCISE AND TERM OF OPTIONS. Each option shall be exercisable at
such time or times, during such period and for such number of shares as shall be
determined by the Plan Administrator and set forth in the documents evidencing
the option grant. However, no option shall have a term in excess of ten (10)
years measured from the option grant date.

        C.     EFFECT OF TERMINATION OF SERVICE.

               1. The following provisions shall govern the exercise of any
options held by the Optionee at the time of cessation of Service or death:

                      (i) Should the Optionee cease to remain in Service for any
reason other than death, Disability or Misconduct, then the Optionee shall have
a period of three (3) months following the date of such cessation of Service
during which to exercise each outstanding option held by such Optionee.

                      (ii) Should Optionee's Service terminate by reason of
Disability, then the Optionee shall have a period of twelve (12) months
following the date of such cessation of Service during which to exercise each
outstanding option held by such Optionee.

                      (iii) If the Optionee dies while holding an outstanding
option, then the personal representative of his or her estate or the person or
persons to whom the option is transferred pursuant to the Optionee's will or the
laws of inheritance shall have a twelve (12)-month period following the date of
the Optionee's death to exercise such option.

                      (iv) Under no circumstances, however, shall any such
option be exercisable after the specified expiration of the option term.

                      (v) During the applicable post-Service exercise period,
the option may not be exercised in the aggregate for more than the number of
vested shares for which the option is exercisable on the date of the Optionee's
cessation of Service. Upon the expiration of the applicable exercise period or
(if earlier) upon the expiration of the option term, the option shall terminate
and cease to be outstanding for any vested shares for which the option has not
been exercised. However, the option shall, immediately upon the Optionee's
cessation of Service,

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terminate and cease to be outstanding with respect to any and all option shares
for which the option is not otherwise at the time exercisable or in which the
Optionee is not otherwise at that time vested.

                      (vi) Should Optionee's Service be terminated for
misconduct, then all outstanding options held by the Optionee shall terminate
immediately and cease to remain outstanding.

               2. The Plan Administrator shall have the discretion, exercisable
either at the time an option is granted or at any time while the option remains
outstanding, to:

                      (i) extend the period of time for which the option is to
remain exercisable following Optionee's cessation of Service or death from the
limited period otherwise in effect for that option to such greater period of
time as the Plan Administrator shall deem appropriate, but in no event beyond
the expiration of the option term, and/or

                      (ii) permit the option to be exercised, during the
applicable post-Service exercise period, not only with respect to the number of
vested shares of Common Stock for which such option is exercisable at the time
of the Optionee's cessation of Service but also with respect to one or more
additional installments in which the Optionee would have vested under the option
had the Optionee continued in Service.

        D. SHAREHOLDER RIGHTS. The holder of an option shall have no shareholder
rights with respect to the shares subject to the option until such person shall
have exercised the option, paid the exercise price and become the recordholder
of the purchased shares.

        E. UNVESTED SHARES. The Plan Administrator shall have the discretion to
grant options which are exercisable for unvested shares of Common Stock. Should
the Optionee cease Service while holding such unvested shares, the Corporation
shall have the right to repurchase, at the exercise price paid per share, any or
all of those unvested shares. The terms upon which such repurchase right shall
be exercisable (including the period and procedure for exercise and the
appropriate vesting schedule for the purchased shares) shall be established by
the Plan Administrator and set forth in the document evidencing such repurchase
right. The Plan Administrator may not impose a vesting schedule upon any option
grant or the shares of Common Stock subject to that option which is more
restrictive than twenty percent (20%) per year vesting, with the initial vesting
to occur not later than one (1) year after the option grant date. However, such
limitation shall not be applicable to any option grants made to individuals who
are officers of the Corporation, non-employee Board members or independent
consultants.

        F. FIRST REFUSAL RIGHTS. Until such time as the Common Stock is first
registered under Section 12 of the 1934 Act, the Corporation shall have the
right of first refusal with respect to any proposed disposition by the Optionee
(or any successor in interest) of any shares of Common Stock issued under the
Plan. Such right of first refusal shall be exercisable in accordance with the
terms established by the Plan Administrator and set forth in the document
evidencing such right.

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        G. LIMITED TRANSFERABILITY OF OPTIONS. During the lifetime of the
Optionee, the option shall be exercisable only by the Optionee and shall not be
assignable or transferable other than by will or by the laws of descent and
distribution following the Optionee's death.

II.     INCENTIVE OPTIONS

        The terms specified below shall be applicable to all Incentive Options.
Except as modified by the provisions of this Section II, all the provisions of
Articles One, Two and Four shall be applicable to Incentive Options. Options
which are specifically designated as Non-Statutory Options shall not be subject
to the terms of this Section II.

        A. ELIGIBILITY. Incentive Options may only be granted to Employees.

        B. EXERCISE PRICE. The exercise price per share shall not be less than
one hundred percent (100%) of the Fair Market Value per share of Common Stock on
the option grant date.

        C. DOLLAR LIMITATION. The aggregate Fair Market Value of the shares of
Common Stock (determined as of the respective date or dates of grant) for which
one or more options granted to any Employee under the Plan (or any other option
plan of the Corporation or any Parent or Subsidiary) may for the first time
become exercisable as Incentive Options during any one (1) calendar year shall
not exceed the sum of One Hundred Thousand Dollars ($100,000). To the extent the
Employee holds two (2) or more such options which become exercisable for the
first time in the same calendar year, the foregoing limitation on the
exercisability of such options as Incentive Options shall be applied on the
basis of the order in which such options are granted.

        D. 10% SHAREHOLDER. If any Employee to whom an Incentive Option is
granted is a 10% Shareholder, then the option term shall not exceed five (5)
years measured from the option grant date.

III.    CORPORATE TRANSACTION

        A. The shares subject to each option outstanding under the Plan at the
time of a Corporate Transaction shall automatically vest in full so that each
such option shall, immediately prior to the effective date of the Corporate
Transaction, become fully exercisable for all of the shares of Common Stock at
the time subject to that option and may be exercised for any or all of those
shares as fully-vested shares of Common Stock. However, the shares subject to an
outstanding option shall not vest on such an accelerated basis if and to the
extent; (i) such option is to be assumed by the successor corporation (or parent
thereof) in the Corporate Transaction and any repurchase rights of the
Corporation with respect to the unvested option shares are concurrently to be
assigned to such successor corporation (or parent thereof) or (ii) such option
is to be replaced with a cash incentive program of the successor corporation
which preserves the spread existing on the unvested option shares at the time of
the Corporate Transaction and provides for subsequent payout in accordance with
the same vesting schedule applicable to those

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unvested option shares or (iii) the acceleration of such option is subject to
other limitations imposed by the Plan Administrator at the time of the option
grant.

        B. All outstanding repurchase rights shall also terminate automatically,
and the shares of Common Stock subject to those terminated rights shall
immediately vest in full, in the event of any Corporate Transaction, except to
the extent: (i) those repurchase rights are assigned to the successor
corporation (or parent thereof) in connection with such Corporate Transaction or
(ii) such accelerated vesting is precluded by other limitations imposed by the
Plan Administrator at the time the repurchase rights is issued.

        C. Immediately following the consummation of the Corporate Transaction,
all outstanding options shall terminate and cease to be outstanding, except to
the extent assumed by the successor corporation (or parent thereof).

        D. Each option which is assumed in connection with a Corporate
Transaction shall be appropriately adjusted, immediately after such Corporate
Transaction, to apply to the number and class of securities which would have
been issuable to the Optionee in consummation of such Corporate Transaction, had
the option been exercised immediately prior to such Corporate Transaction.
Appropriate adjustments shall also be made to (i) the number and class of
securities available for issuance under the Plan following the consummation of
such Corporate Transaction and (ii) the exercise price payable per share under
each outstanding option, PROVIDED the aggregate exercise price payable for such
securities shall remain the same.

        E. The Plan Administrator shall have the discretion, exercisable either
at the time the option is granted or at any time while the option remains
outstanding, to structure one or more options so that those options shall
automatically accelerate and vest in full (and any repurchase rights of the
Corporation with respect to the unvested shares subject to those options shall
immediately terminate) upon the occurrence of a Corporate Transaction, whether
or not those options are to be assumed in the Corporate Transaction.

        F. The Plan Administrator shall also have full power and authority,
exercisable either at the time the option is granted or at any time while the
option remains outstanding, to structure such option so that the shares subject
to that option will automatically vest on an accelerated basis should the
Optionee's Service terminate by reason of an Involuntary Termination within a
designated period (not to exceed (18) months) following the effective date of
any Corporate Transaction in which the option is assumed and the repurchase
rights applicable to those shares do not otherwise terminate. Any option so
accelerated shall remain exercisable for the fully-vested option shares until
the expiration or sooner termination of the option term. In addition, the Plan
Administrator may provide that one or more of the Corporation's outstanding
repurchase rights with respect to shares held by the Optionee at the time of
such Involuntary Termination shall immediately terminate on an accelerated
basis, and the shares subject to those terminated rights shall accordingly vest
at that time.

        G. The portion of any Incentive Option accelerated in connection with a
Corporate Transaction shall remain exercisable as an Incentive Option only to
the extent the applicable One Hundred Thousand Dollar limitation is not
exceeded. To the extent such dollar limitation is

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exceeded, the accelerated portion of such option shall be exercisable as a
Non-Statutory Option under the Federal tax laws.

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

IV.     CANCELLATION AND REGRANT OF OPTIONS

        The Plan Administrator shall have the authority to effect, at any time
and from time to time, with the consent of the affected option holders, the
cancellation of any or all outstanding options under the Plan and to grant in
substitution therefor new options covering the same or different number of
shares of Common Stock but with an exercisable price per share based on the Fair
Market Value per share of Common Stock on the new option grant date.

                                  ARTICLE THREE

                             STOCK ISSUANCE PROGRAM

I.      STOCK ISSUANCE TERMS

        Shares of Common Stock may be issued under the Stock Issuance Program
through direct and immediate issuances without any intervening option grants.
Each such stock issuance shall be evidenced by a Stock Issuance Agreement which
complies with the terms specified below.

        A.     PURCHASE PRICE.

               1. The purchase price per share shall be fixed by the Plan
Administrator but shall not be less than eighty-five percent (85%) of the Fair
Market Value per share of Common Stock on the issue date. However, the purchase
price per share of Common Stock issued to a 10% Shareholder shall not be less
than one hundred and ten percent (110%) of such Fair Market Value.

               2. Subject to the provisions of Section I of Article Four, shares
of Common Stock may be issued under the Stock Issuance Program for any of the
following items of consideration which the Plan Administrator may deem
appropriate in each individual instance:

                      (i) cash or check made payable to the Corporation, or

                      (ii) past services rendered to the Corporation (or any
Parent or Subsidiary).

        B.     VESTING PROVISIONS.

               1. Shares of Common Stock issued under the Stock Issuance Program
may, in the discretion of the Plan Administrator, be fully and immediately
vested upon issuance or

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may vest in one or more installments over the Participant's period of Service or
upon attainment of specified performance objectives. However, the Plan
Administrator may not impose a vesting schedule upon any stock issuance effected
under the Stock Issuance Program which is more restrictive than twenty percent
(20%) per year vesting, with initial vesting to occur not later than one (1)
year after the issuance date. Such limitation shall not apply to any Common
Stock issuances made to the officers of the Corporation, non-employee Board
members or independent consultants.

               2. Any new, substituted or additional securities or other
property (including money paid other than as a regular cash divided) which the
Participant may have the right to receive with respect to the Participant's
unvested shares of Common Stock by reason of any stock dividend, stock split,
recapitalization, combination of shares, exchange of shares or other change
affecting the outstanding Common Stock as a class without the Corporation's
receipt of consideration shall be issued subject to (i) the same vesting
requirements applicable to the Participant's unvested shares of Common Stock and
(ii) such escrow arrangements as the Plan Administrator shall deem appropriate.

               3. The Participant shall have full shareholder rights with
respect to any shares of Common Stock issued to the Participant under the Stock
Issuance Program, whether or not the Participant's interest in those shares is
vested. Accordingly, the Participant shall have the right to vote such shares
and to receive any regular cash dividends paid on such shares.

               4. Should the Participant cease to remain in Service while
holding one or more unvested shares of Common Stock issued under the Stock
Issuance Program or should the performance objectives not be attained with
respect to one or more such unvested shares of Common Stock, then those shares
shall be immediately surrendered to the Corporation for cancellation, and the
Participant shall have no further shareholder rights with respect to those
shares. To the extent the surrendered shares were previously issued to the
Participant for consideration paid in cash or cash equivalent (including the
Participant's purchase-money indebtedness), the Corporation shall repay to the
Participant the cash consideration paid for the surrendered shares and shall
cancel the unpaid principal balance of any outstanding purchase-money note of
the Participant attributable to such surrendered shares.

               5. The Plan Administrator may in its discretion waive the
surrender and cancellation of one or more unvested share of Common Stock (or
other assets attributable thereto) which would otherwise occur upon the
non-completion of the vesting schedule applicable to those shares. Such waiver
shall result in the immediate vesting of the Participant's interest in the
shares of Common Stock as to which the waiver applies. Such waiver may be
effected at any time, whether before or after the Participant's cessation of
Service or the attainment or non-attainment of the applicable performance
objectives.

        C. FIRST REFUSAL RIGHTS. Until such time as the Common Stock is first
registered under Section 12 of the 1934 Act, the Corporation shall have the
right of first refusal with respect to any proposed disposition by the
Participant (or any successor in interest) of any shares of Common Stock issued
under the Stock Issuance Program. Such right of first refusal

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shall be exercisable in accordance with the terms established by the Plan
Administrator and set forth in the document evidencing such right.

II.     CORPORATE TRANSACTION

        A. Upon the occurrence of a Corporate Transaction, all outstanding
repurchase rights under the Stock Issuance Program shall terminate
automatically, and the shares of Common Stock subject to those terminated rights
shall immediately vest in full, except to the extent: (i) those repurchase
rights are assigned to the successor corporation (or parent thereof) in
connection with such Corporate Transaction or (ii) such accelerated vesting is
precluded by other limitations imposed by the Plan Administrator at the time the
repurchase right is issued.

        B. The Plan Administrator shall have the discretionary authority,
exercisable either at the time the unvested shares are issued or any time while
the Corporation's repurchase rights with respect to those shares remain
outstanding, to provide that those rights shall automatically terminate on an
accelerated basis, and the shares of Common Stock subject to those terminated
rights shall immediately vest, in the event the Participant's Service should
subsequently terminate by reason of an Involuntary Termination within a
designated period (not to exceed eighteen (18) months) following the effective
date of any Corporate Transaction in which those repurchase rights are assigned
to the successor corporation (or parent thereof).

III.    SHARE ESCROW/LEGENDS

        Unvested shares may, in the Plan Administrator's discretion, be held in
escrow by the Corporation until the Participant's interest in such shares vests
or may be issued directly to the Participant with restrictive legends on the
certificates evidencing those unvested shares.

                                  ARTICLE FOUR

                                  MISCELLANEOUS

I.      FINANCING

        The Plan Administrator may permit any Optionee or Participant to pay the
option exercise price under the Option Grant Program or the purchase price for
shares issued under the Stock Issuance Program by delivering a full-recourse,
interest bearing promissory note payable in one or more installments and secured
by the purchased shares. However, any promissory note delivered by a consultant
must be secured by collateral in addition to the purchased shares of Common
Stock. The terms of any such promissory note (including the interest rate and
the terms of repayment) shall be established by the Plan Administrator in its
sole discretion. In no event may the maximum credit available to the Optionee or
Participant exceed the sum of (i) the aggregate option exercise price or
purchase price payable for the purchased shares (less the par value of those
shares) plus (ii) any Federal, state and local income and employment tax
liability incurred by the Optionee or the Participant in connection with the
option exercise or share purchase.

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II.     EFFECTIVE DATE AND TERM OF PLAN

        A. The Plan shall become effective when adopted by the Board, but no
option granted under the Plan may be exercised, and no shares shall be issued
under the Plan, until the Plan is approved by the Corporation's shareholders. If
such shareholder approval is not obtained within twelve (12) months after the
date of the Board's adoption of the Plan, then all options previously granted
under the Plan shall terminate and cease to be outstanding, and no further
options shall be granted and no shares shall be issued under the Plan. Subject
to such limitation, the Plan Administrator may grant options and issue shares
under the Plan at any time after the effective date of the Plan and before the
date fixed herein for termination of the Plan.

        B. The Plan shall terminate upon the EARLIEST of (i) the expiration of
the ten (10)-year period measured from the date the Plan is adopted by the
Board, (ii) the date on which all shares available for issuance under the Plan
shall have been issued as vested shares or (iii) the termination of all
outstanding options in connection with a Corporate Transaction. All options and
unvested stock issuances outstanding at the time of a clause (i) termination
event shall continue to have full force and effect in accordance with the
provisions of the documents evidencing those options or issuances.

III.    AMENDMENT OF THE PLAN

        A. The Board shall have complete and exclusive power and authority to
amend or modify the Plan in any or all respects. However, no such amendment or
modification shall adversely affect the rights and obligations with respect to
options or unvested stock issuances at the time outstanding under the Plan
unless the Optionee or the Participant consents to such amendment or
modification. In addition, certain amendments may require shareholder approval
pursuant to applicable laws and regulations.

        B. Options may be granted under the Option Grant Program and shares may
be issued under the Stock Issuance Program which are in each instance in excess
of the number of shares of Common Stock then available for issuance under the
Plan, provided any excess shares actually issued under those programs shall be
held in escrow until there is obtained shareholder approval of an amendment
sufficiently increasing the number of shares of Common Stock available for
issuance under the Plan. If such shareholder approval is not obtained within
twelve (12) months after the date the first such excess grants or issuances are
made, then (i) any unexercised options granted on the basis of such excess
shares shall terminate and cease to be outstanding and (ii) the Corporation
shall promptly refund to the Optionees and the Participants the exercise or
purchase price paid for any excess shares issued under the Plan and held in
escrow, together with interest (at the applicable Short Term Federal Rate) for
the period the shares were held in escrow, and such shares shall thereupon be
automatically cancelled and cease to be outstanding.

IV.     USE OF PROCEEDS

        Any cash proceeds received by the Corporation from the sale of shares of
Common Stock under the Plan shall be used for general corporate purposes.

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V.      WITHHOLDING

        The Corporation's obligation to deliver shares of Common Stock upon the
exercise of any options granted under the Plan or upon the direct issuance or
vesting of any shares issued under the Plan shall be subject to the satisfaction
of all applicable Federal, state and local income and employment tax withholding
requirements.

VI.     REGULATORY APPROVALS

        The implementation of the Plan, the granting of any options under the
Plan and the issuance of any shares of Common Stock (i) upon the exercise of any
option or (ii) under the Stock Issuance Program shall be subject to the
Corporation's procurement of all approvals and permits required by regulatory
authorities having jurisdiction over the Plan, the options granted under it and
the shares of Common Stock issued pursuant to it.

VII.    NO EMPLOYMENT OR SERVICE RIGHTS

        Nothing in the Plan shall confer upon the Optionee or the Participant
any right to continue in Service for any period of specific duration or
interfere with or otherwise restrict in any way the rights of the Corporation
(or any Parent or Subsidiary employing or retaining such person) or of the
Optionee or the participant, which rights are hereby expressly reserved by each,
to terminate such person's Service at any time for any reason, with or without
cause.

VIII.   FINANCIAL REPORTS

        The Corporation shall deliver a balance sheet and an income statement at
least annually to each individual holding an outstanding option under the Plan,
unless such individual is a key Employee whose duties in connection with the
Corporation (or any Parent or Subsidiary) assure such individual access to
equivalent information.

                                    APPENDIX

        The following definitions shall be in effect under the Plan:

        A. BOARD shall mean the Corporation's Board of Directors.

        B. CODE shall mean the Internal Revenue Code of 1986, as amended.

        C. COMMITTEE shall mean a committee of two (2) or more Board members
appointed by the Board to exercise one or more administrative functions under
the Plan.

        D. COMMON STOCK shall mean the Corporation's common stock.

        E. CORPORATE TRANSACTION shall mean either of the following
shareholder-approved transactions to which the Corporation is a party:

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

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

        F. CORPORATION shall mean Live Software, Inc., a California corporation,
and any successor corporation to all or substantially all of the assets or
voting stock of Live Software, Inc., which shall by appropriate action adopt the
Plan.

        G. DISABILITY shall mean the inability of the Optionee or the
Participant to engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment and shall be determined by
the Plan Administrator on the basis of such medical evidence as the Plan
Administrator deems warranted under the circumstances.

        H. EMPLOYEE shall mean an individual who is in the employ of the
Corporation (or any Parent or Subsidiary), subject to the control and direction
of the employer entity as to both the work to be performed and the manner and
method of performance.

        I. EXERCISE DATE shall mean the date on which the Corporation shall have
received written notice of the option exercise.

        J. FAIR MARKET VALUE per share of Common Stock on any relevant date
shall be determined in accordance with the following provisions:

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

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

               (iii) If the Common Stock is at the time neither listed on any
Stock Exchange nor traded on the Nasdaq National Market, then the Fair Market
Value shall be determined by the Plan Administrator after taking into account
such factors as the Plan Administrator shall deem appropriate.

                                       13
<PAGE>   14

        K. INCENTIVE OPTION shall mean an option which satisfies the
requirements of Code Section 422.

        L. INVOLUNTARY TERMINATION shall mean the termination of the Service of
any individual which occurs by reason of:

               (i) such individual's involuntary dismissal or discharge by the
Corporation for reasons other than Misconduct, or (ii) such individual's
voluntary resignation following (A) a change in his or her position with the
Corporation which materially reduces his or her duties and responsibilities or
the level of management to which he or she reports, (B) a reduction in his or
her level of compensation (including base salary, fringe benefits and target
bonuses under any corporate-performance based bonus or incentive programs) by
more than fifteen percent (15%) or (C) a relocation of such individual's place
of employment by more than fifty (50) miles, provided and only if such change,
reduction or relocation is effected without the individual's consent.

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

        N. 1934 ACT shall mean the Securities Exchange Act of 1934, as amended.

        O. NON-STATUTORY OPTION shall mean an option not intended to satisfy the
requirements of Code Section 422.

        P. OPTION GRANT PROGRAM shall mean the option grant program in effect
under the Plan.

        Q. OPTIONEE shall mean any person to whom an option is granted under the
Plan.

        R. PARENT shall mean any corporation (other than the Corporation) in an
unbroken chain of corporations ending with the Corporation, provided each
corporation in the unbroken chain (other than the Corporation) owns, at the time
of the determination, stock possessing fifty percent (50%) or more of the total
combined voting power of all classes of stock in one of the other corporations
in such chain.

        S. PARTICIPANT shall mean any person who is issued shares of Common
Stock under the Stock Issuance Program.

        T. PLAN shall mean the Corporation's 1999 Stock Option/Stock Issuance
Plan, as set forth in this document.

                                       14
<PAGE>   15

        U. PLAN ADMINISTRATOR shall mean either the Board or the Committee
acting in its capacity as administrator of the Plan.

        V. SERVICE shall mean the provision of services to the Corporation (or
any Parent or Subsidiary) by a person in the capacity of an Employee, a
non-employee member of the board of directors or a consultant or independent
advisor, except to the extent otherwise specifically provided in the documents
evidencing the option grant.

        W. STOCK EXCHANGE shall mean either the American Stock Exchange or the
New York Stock Exchange.

        X. STOCK ISSUANCE AGREEMENT shall mean the agreement entered into by the
Corporation and the Participant at the time of issuance of shares of Common
Stock under the Stock Issuance Program.

        Y. STOCK ISSUANCE PROGRAM shall mean the stock issuance program in
effect under the Plan.

        Z. SUBSIDIARY shall mean any corporation (other than the Corporation) in
an unbroken chain of corporations beginning with the Corporation, provided each
corporation (other than the last corporation) in the unbroken chain owns, at the
time of the determination, stock possessing fifty percent (50%) or more of the
total combined voting power of all classes of stock in one of the other
corporations in such chain.

        AA. 10% SHAREHOLDER shall mean the owner of stock (as determined under
Code Section 424(d)) possessing more than ten percent (10%) of the total
combined voting power of all classes of stock of the Corporation (or any Parent
or Subsidiary).

                                       15<PAGE>   1

                                                                    EXHIBIT 4.11

                        BRIGHT TIGER TECHNOLOGIES, INC.

                             1996 STOCK OPTION PLAN

                      (AS AMENDED THROUGH OCTOBER 30, 1998)

        This Plan (the "Plan") of Bright Tiger Technologies, Inc., a Delaware
corporation (the "Company") provides that options for up to 1,293,840 shares(the
"Shares") of the Company's Common Stock, $.01 par value per share (the "Stock"),
may be granted to employees of the Company and its subsidiaries, as defined
below, and to others who are in a position to make significant contributions to
the success of the Company and its subsidiaries. Options granted pursuant to the
Plan may be either incentive stock options ("Incentive Options") as defined in
Section 422 of the Internal Revenue Code of 1986, as amended (the "Code"), or
options that are not Incentive Options ("Nonqualified Options"), or both.

        1. PURPOSE. The purpose of this Plan is to attract and retain employees
and others who are in a position to contribute significantly to the success of
the Company, to reward such contributions, and to encourage optionholders to
advance the long term interests of the Company through ownership of its Stock.

        2. ADMINISTRATION.

               (a) BOARD OF DIRECTORS. The Plan shall be administered by the
Board of Directors of the Company (the "Board"). The Board, subject to the
express provisions of the Plan, shall determine those persons to be granted
options, the times when options shall be granted, the number of Shares subject
to each option, and the terms and conditions of each option, including whether
each option is an Incentive Option or a Nonqualified Option. The Board shall
establish the form of instruments granting options and any other instruments
under the Plan, and the rules and regulations for the administration of the
Plan, and may amend and rescind such instruments, rules and regulations. The
Board shall interpret the Plan and decide any questions and settle all
controversies and disputes that may arise in connection with the Plan, and such
determinations of the Board shall be conclusive and shall bind all parties.
Subject to Section 16, the Board may, both generally and in particular
instances, waive compliance by an optionholder with any obligation to be
performed under an option and waive any condition or provision of an option,
except that in the case of an Incentive Option the Board may not (other than in
accordance with Section 5) grant any such waiver if such waiver would cause the
Incentive Option to no longer qualify as an Incentive Option under Section 422
of the Code.

               (b) COMMITTEE. The Board may, in its discretion, delegate its
powers with respect to the Plan to a Stock Option Plan Committee (the
"Committee"), in which event all references to the Board hereunder shall be
deemed to refer to the Committee. The Committee shall be appointed by the Board
and shall consist of at least two persons, each of whom shall be a director of
the Company and each of whom shall be disinterested, as such term is defined
from time to time in Rule 16b-3 promulgated under the Securities Exchange Act of
1934 and each of whom shall be an outside Director, as defined in Section 162(m)
of the Code and related legislative history. A majority of the members of the
Committee shall constitute a quorum, and all determinations of the Committee
shall be made by a majority of its members. Any

<PAGE>   2

determination of the Committee under the Plan may be made without notice or
meeting of the Committee by a writing signed by all of the members of the
Committee.

               (c) With respect to the participation of any officer or director
in the Plan, his or her selection as an optionee, the number of option shares to
be allocated to such officer or director, the exercise price and vesting of the
options and all other terms and conditions of such options shall be determined
by, or only in accordance with, the recommendations of a Committee established
pursuant to the foregoing Section 2(b). The provisions of this Section 2(c)
shall not apply, however, with respect to any option granted prior to the date
of the first registration of an equity security of the Company under Section 12
of the Securities and Exchange Act of 1934, as amended.

        3. EFFECTIVE DATE AND TERM. This Plan shall become effective upon
adoption by the Board or approval by the stockholders by at least a majority
vote at a duly held meeting (or by written consent as provided by applicable
law), whichever is earlier, but shall not become effective unless stockholder
approval is obtained within twelve (12) months before or after the adoption of
the Plan by the Board. The Board may grant options under this Plan prior to such
approval, but any such option shall become effective as of the date of grant
only upon such approval and, accordingly, no such option may be exercisable
prior to such approval. This Plan shall terminate ten years after its effective
date.

        4. SHARES SUBJECT TO THE PLAN. The Shares shall be reserved for issuance
upon the exercise of options granted under the Plan. Shares subject to an option
which expires or is terminated may again be subjected to an option under the
Plan. Shares delivered under the Plan may be authorized but unissued Stock or
treasury Stock. No fractional Shares shall be issued under the Plan.

        5. CHANGES IN CAPITAL STOCK. In the event of a stock dividend, stock
split or combination of shares, recapitalization or other change in the
Company's capital stock, the number and kind of shares of stock or securities of
the Company subject to options then outstanding or subsequently granted under
the Plan, the maximum number of shares or securities that may be delivered under
the Plan, the exercise price, and other relevant provisions shall be adjusted
appropriately in a manner determined by the Board to be equitable, whose
determination shall be binding. The Board may also adjust the number of Shares
subject to outstanding options, the exercise price of outstanding options and
the terms of outstanding options to take into consideration material changes in
accounting practices or principles, consolidations or mergers, acquisitions or
dispositions of stock or property or any other event if it is determined by the
Board that such adjustment is appropriate to avoid distortion in the operation
of the Plan, provided that no such adjustment shall be made in the case of an
Incentive Option if it would constitute a modification, extension or renewal of
the option within the meaning of Section 424(h) of the Code, unless the
optionholder consents.

        6. ELIGIBILITY. All employees of the Company and its subsidiaries, as
well as those other persons or entities who, in the opinion of the Board, are in
a position to contribute significantly to the success of the Company or its
subsidiaries, shall be eligible to receive options under the Plan. A
"subsidiary" for purposes of the Plan shall be a subsidiary corporation as
defined in Section 424(f) of the Code. Incentive Options shall be granted only
to " employees"

                                       2
<PAGE>   3

as defined in the applicable provisions of the Code and regulations thereunder.
Receipt of options under the Plan or of awards under any other employee benefit
plan of the Company or any of its subsidiaries shall not preclude an employee
from receiving options or additional options under the Plan. In granting options
the Board may include or exclude previous participants in the Plan as the Board
may determine.

        7. TERMS AND CONDITIONS OF OPTIONS.

               (a) NUMBER OF OPTIONS. The aggregate fair market value
(determined as of the time of grant) of the Shares with respect to which
Incentive Options are exercisable for the first time by an employee during any
calendar year (under the Plan and all other stock option plans of the Company or
its subsidiaries or any parent corporation) shall not exceed $100,000.

               (b) EXERCISE PRICE. The exercise price of each option shall be
determined by the Board but, in the case of an Incentive Option, shall not be
less than 100% (110% in the case of an Incentive Option granted to a ten-percent
stockholder) of the fair market value of the stock subject to the option on the
date of grant; nor shall the exercise price of any option be less, in the case
of an original issue of authorized stock, than par value. For this purpose, (i)
"fair market value" shall be determined by the Board in good faith on a basis
consistent with the provisions of Section 422 of the Code and the regulations
promulgated thereunder, and (ii) "ten percent stockholder" shall mean any
employee who at the time of grant owns directly, or is deemed to own by reason
of the attribution rules set forth in Section 424(d) of the Code, more than 10%
of the total combined voting power of all classes of stock of the Company or of
any of its parent or subsidiary corporations.

               (c) DURATION, VESTING AND CONDITIONS OF EXERCISE. Each option
shall be exercisable during such period or periods as the Board may determine,
but in no case after the expiration of ten years (five years in the case of an
Incentive Option granted to a "ten percent stockholder" as defined in (b) above)
from the date of grant. In the discretion of the Board, options may be
exercisable (i) in full upon grant or (ii) over or after a period of time
conditioned on satisfaction of certain Company, division, group, office,
individual or other performance criteria, including the continued performance of
services to the Company or its subsidiaries. In the case of an option not
immediately exercisable in full, the Board may at any time accelerate the time
at which all or any part of the option may be exercised.

        8. EXERCISE OF OPTIONS. Any exercise of an option shall be in writing
pursuant to a written instrument in the form prescribed by the Board, signed by
the proper person and delivered to the Company, accompanied by (a) such
documents as may be required by this Plan, by such written instrument, or by the
Board, and (b) payment as required by such written instrument for the number of
Shares for which the option is exercised. In addition, each exercise of an
option shall be subject to such additional conditions as may be required by the
Board, including without limitation those described in Section 9 of this Plan.
No exercise of an option shall be effective, and the Company shall not be
obligated to deliver any Shares, until all requirements and conditions for
exercise have been met to the satisfaction of the Board.

                                       3
<PAGE>   4

        9. CONDITIONS TO EXERCISE OF OPTIONS. Except as waived by the Board in a
particular case, all the following conditions shall be complied with as a
condition to the exercise of each option granted under the Plan:

               (a) LEGAL MATTERS. In the opinion of the Company's counsel all
applicable federal and state laws and regulations, including securities laws and
regulations, shall have been complied with, and legal matters in connection with
the issuance and delivery of such Shares shall have been approved by the
Company's counsel.

               (b) LISTING AND REGISTRATION OF SHARES. If at any time the Board
shall determine that the listing, registration or qualification of the Shares
covered by any option upon any securities exchange or under any state or federal
law, or the consent or approval of any governmental regulatory body, is
necessary or desirable as a condition of or in connection with the granting of
such option or the issuance or purchase of Shares thereunder, such option may
not be exercised in whole or in part unless and until such listing,
registration, qualification, consent or approval shall have been effected or
obtained free of any conditions not acceptable to the Board.

               (c) TAX UNDERTAKINGS. In the case of an option that is not an
Incentive Option, the Board may require the optionholder to remit to the Company
an amount sufficient to satisfy any federal, state or local withholding tax
requirements (or make other arrangements satisfactory to the Company with regard
to such taxes, including withholding from regular cash compensation or giving of
security to the Company adequate to meet the potential liability of the Company
for withholding of tax) prior to the delivery of any Shares pursuant to the
exercise of the option. In the case of an Incentive Option, if at the time the
option is exercised the Board determines that under applicable law and
regulations the Company could be liable for the withholding of any federal or
state tax with respect to a disposition of the Shares received upon exercise,
the Board may require the optionholder to agree (i) to inform the Company
promptly of any disposition (within the meaning of Section 424(c) of the Code
and the regulations thereunder) of Shares received upon exercise, and (ii) to
give such security as the Board deems adequate to meet the potential liability
of the Company for the withholding of tax, and to augment such security from
time to time in any amount reasonably deemed necessary by the Board to preserve
the adequacy of such security.

               (d) EVIDENCE OF AUTHORITY. If an option is exercised by the legal
representative of a deceased optionholder or by a person to whom the option has
been transferred by the optionholder's will or by applicable laws of descent and
distribution, the Company shall not be obligated to deliver Shares until
satisfied as to the authority of the person exercising the option.

               (e) RESTRICTIONS ON TRANSFER OF STOCK. If the sale of Shares has
not been registered under the Securities Act of 1933, as amended, or under
applicable state securities laws, the Company may require, as a condition to
exercise of an option, such representations or agreements from the optionholder
as counsel for the Company may consider appropriate to avoid violation of such
Act or such state securities laws and may require that the certificates
evidencing such Shares bear an appropriate legend restricting transfer. In
addition, the Board may require as conditions to the grant or exercise of any
option that the optionholder

                                       4
<PAGE>   5

agree in writing to (i) restrictions on the transfer of Shares, (ii) a right of
first refusal of the Company to repurchase Shares in the event the holder
desires to sell such Shares, and (iii) a right of the Company to repurchase
Shares in the event of termination of employment or death or disability. Such
restrictions and rights on the part of the Company shall be identified in the
instrument granting the option.

        10. PAYMENT FOR SHARES.

               (a) EXERCISE PRICE. The exercise price for Shares purchased under
an option shall be paid as follows: (i) in cash or by certified check, bank
draft or money order payable to the order of the Company; (ii) if permitted by
the terms of the option (or in the case of a Nonqualified Option if permitted by
the Board), by the delivery of shares of Stock having a fair market value (as
determined by the Board in good faith in its reasonable discretion) on the date
of exercise equal to the exercise price, or (iii) by a combination of cash and
Stock.

               (b) PROMISSORY NOTE. To the extent permitted by any applicable
margin regulations of the Board of Governors of the Federal Reserve System and
other provisions of applicable law, the instrument granting an option may, in
the discretion of the Board, permit the exercise price for Shares to be paid by
payment of at least the par value by a combination of cash and Stock as provided
above, and delivery to the Company of the optionholder's promissory note for the
balance of the exercise price. Unless otherwise specified by the Board in the
instrument granting the option, such note (i) shall bear interest at least equal
to the Applicable Federal Rate, as determined under Section 1274(d) of the Code
and published by the Service on a monthly basis, in effect for the month of
exercise, (ii) shall be a fully recourse note, (iii) shall be secured by a
pledge of the Shares acquired by exercising the option, and (iv) shall be
payable in equal annual installments of principal and interest over a period of
not more than five years after the exercise date (except that any such note
shall be payable on demand in the event of termination of employment). Any such
promissory note shall be in a form satisfactory to the Company.

        11. NO RIGHTS AS STOCKHOLDER. Optionholders shall not have the rights of
stockholders with regard to options granted under the Plan, except as to Shares
actually purchased pursuant to such options.

        12. NON TRANSFERABILITY OF OPTIONS. Each option granted under this Plan
shall be transferable only by will or the laws of descent and distribution and
shall be exercisable during the lifetime of the person to whom the option is
granted only by such person. Except as permitted by the preceding sentence, no
option granted under the Plan or any of the rights and privileges thereby
conferred shall be transferred, assigned, pledged, hypothecated or otherwise
disposed of in any way (by operation of law or otherwise), and no such option,
right or privilege shall be subject to execution, attachment or similar process.
Upon any attempt so to transfer, assign, pledge, hypothecate or otherwise
dispose of any such option, right or privilege contrary to the provisions
hereof, or upon the levy of any attachment or similar process upon such option,
right or privilege, the option and such rights and privileges shall immediately
become null and void. Notwithstanding the above provisions of this Section 12,
any option granted under this Plan may be pledged or hypothecated to secure an
obligation to the Company.

                                       5
<PAGE>   6

        13. TERMINATION OF EMPLOYMENT; DEATH OR DISABILITY.

               (a) TERMINATION IN GENERAL. Upon termination of the employment of
an optionholder, any unexercised options shall terminate immediately, except as
provided in Subsections (b), (c) and (d) below. For purposes of this Section 13,
employment shall not be considered terminated (i) in the case of sick leave or
other bona fide leave of absence approved for purposes of the Plan by the Board,
so long as the employee's right to re-employment is guaranteed either by statute
or by contract, or (ii) in the case of a transfer of employment among the
Company and its subsidiaries, or to the employment of a corporation (or a parent
or subsidiary corporation of such corporation) issuing or assuming an option,
which in the case of an Incentive Option is a transaction to which Section
424(a) of the Code applies. For all purposes of this Section 13, the term
"employment" shall include the relationships of optionholders to the Company as
directors, consultants and professional advisors.

               (b) TERMINATION NOT FOR CAUSE. Subject to Section 14(c), if such
termination was not "for cause" (as hereinafter defined), the optionholder may
exercise any option which was otherwise exercisable on the date of termination
for a period ending on the earlier of (i) the last day of the third month after
such termination and (ii) the expiration date of such option pursuant to the
first sentence of Section 7(c). For purposes hereof, the term "for cause" shall
mean only (i) the willful or reckless failure by the optionholder to perform his
duties under or willful or reckless violation of any written employment or
consulting agreement (other than a failure resulting from the optionholder's
death or disability), which failure or violation shall not have been cured
within fifteen (15) days after the receipt by the optionholder of written notice
thereof from the Board specifying with reasonable particularity such alleged
failure or violation; (ii) the commission by the optionholder of an act of fraud
or theft against the Company or any of its subsidiaries; or (iii) the conviction
of the optionholder of (or the plea by the optionholder of NOLO CONTENDERE to)
any felony.

               (c) DEATH. If termination of employment results from the
optionholder's death, any option which was otherwise exercisable by such
optionholder as of the time immediately before his or her death shall be
exercisable by the optionholder's estate or by any person who acquired the
options by bequest or inheritance for a period ending on the earlier of (i) one
year after the death of the optionholder and (ii) the expiration date of such
option pursuant to the first sentence of Section 7(c). The Board may permit any
option to be exercised for up to the total number of Shares subject to the
option, or grant an option which by its terms is exercisable for up to the total
number of Shares subject to the option, at any time within one year after the
death of the optionholder, consistent with the above provisions.

               (d) DISABILITY. If the termination of employment results from the
optionholder's disability, any option which was otherwise exercisable by such
optionholder immediately prior to the termination of his employment shall be
exercisable by him or her (or his or her legal representative) for a period
ending on the earlier of (i) one year after such termination and (ii) the
expiration date of such option pursuant to the first sentence of Section 7(c).
The Board may permit any option to be exercised for up to the total number of
Shares subject to the option, or grant an option which by its terms is
exercisable for up to the total number of Shares subject to the option, at any
time within one year after termination of

                                       6
<PAGE>   7

employment, consistent with the above provisions. The term "disability" shall
for this purpose be defined as such term is defined in Section 22(e)(3) of the
Code.

        14. REORGANIZATIONS; DISSOLUTION.

               (a) SUBSTITUTE OPTIONS. If by reason of a corporate merger,
consolidation, acquisition of property or stock, separation, reorganization, or
liquidation the Board shall authorize the issuance or assumption of a stock
option in a transaction to which Section 424(a) of the Code applies, then,
notwithstanding any other provision of the Plan, the Board may grant an option
upon such terms and conditions as it may deem appropriate for the purpose of
assumption of the old option, or substitution of a new option for the old
option, in conformity with the provisions of said Section 424(a) of the Code and
the Regulations thereunder, and any such option shall not reduce the number of
shares otherwise available for issuance under the Plan.

               (b) TERMINATION OF OPTIONS. In the event of a consolidation or
merger in which the Company is not the surviving corporation, a Change in
Control of the Company (as defined below) or the sale or transfer of all or
substantially all the Company's assets, the Board, in its sole discretion, may
(i) accelerate the exercisability, prior to the effective date of such merger,
consolidation, Change in Control or sale of assets, of all outstanding options
granted under the Plan (and redesignate as Nonqualified Options any options or
portions thereof that were originally designated as Incentive Options but that
no longer so qualify under Section 422 of the Code), (ii) arrange, if there is a
surviving or acquiring corporation, subject to consummation of the merger,
consolidation or sale of assets, to have that corporation or an affiliate of
that corporation grant to employees and other optionholders replacement options
with substantially similar or, if not adverse to the optionees, different
provisions with respect to exercisability (upon which grant the options granted
under the Plan shall immediately terminate and be of no further force or effect)
which, however, in the case of Incentive Options, satisfy, in the determination
of the Board, the requirements of Section 424(a) of the Code, (iii) cancel all
outstanding options in exchange for consideration in cash or in kind in an
amount equal to the value of the shares, as determined by the Board in good
faith, the optionee would have received had the option been exercised (to the
extent then exercisable or to a greater extent, including in full, as the Board
may determine) less the option price therefor (upon which cancellation such
options shall immediately terminate and be of no further force or effect), (iv)
permit the purchaser of the Company's stock or assets to deliver to the
optionees the same kind of consideration that is delivered to the stockholders
of the Company in cancellation of such options in an amount equal to the value
of the shares, as determined by the Board in good faith, the optionee would have
received had the option been exercised (to the extent then exercisable or to a
greater extent, including in full, as the Board may determine), less the option
price therefor, or (v) take any combination (or none) of the foregoing actions.
For purposes of this Section 14(b), a "Change in Control" shall be deemed to
have occurred if (i) any person, or group of persons acting together, acquires
in any transaction or related series of transactions such number of shares of
voting securities of the Company as causes such person, or group of persons, to
own beneficially, directly or indirectly, as of the time immediately after such
transaction or series of transactions, fifty percent (50%) or more of the
outstanding voting securities of the Company and (ii) such person, or group of
persons, owned beneficially, directly and indirectly, less than

                                       7
<PAGE>   8

fifty percent (50%) of such outstanding voting securities as of the time
immediately before such transaction or series of transactions.

               (c) DISSOLUTION OR LIQUIDATION. Upon the dissolution or
liquidation of the Company, all outstanding options granted under the Plan shall
terminate, but each optionee shall have the right, immediately prior to such
dissolution or liquidation, to exercise his or her options to the extent then
exercisable.

        15. EMPLOYMENT RIGHTS AND OTHER BENEFITS. Neither the adoption of the
Plan nor the grant of options shall confer upon any employee any right to
continued employment with the Company or any parent or subsidiary or affect in
any way the right of the Company or such parent or subsidiary to terminate the
employment of an employee at any time. Except as specifically provided by the
Board in any particular case, the loss of existing or potential profit in
options granted under this Plan shall not constitute an element of damages in
the event of termination of the employment of an employee even if the
termination is in violation of an obligation of the Company to the employee by
contract or otherwise. Nothing in this Plan shall restrict the authority of the
Board to grant stock options or to award bonuses or other benefits to employees
or others otherwise than pursuant to the Plan.

        16. DISCONTINUANCE, CANCELLATION, AMENDMENT AND TERMINATION. The Board
may at any time abandon the Plan or discontinue granting options under the Plan.
With the consent of the optionholder, the Board may at any time cancel an
existing option in whole or in part and grant another option for such number of
shares as the Board specifies. The Board may at any time amend the Plan for the
purpose of satisfying the requirements of Section 422 of the Code or of any
changes in applicable laws or regulations or for any other purpose which may at
the time be permitted by law, or may at any time terminate the Plan as to any
further grants of options, provided that (except to the extent expressly
required or permitted herein above) no such amendment shall, without the
approval of the stockholders of the Company by at least a majority vote at a
duly held meeting (or by written consent as provided by applicable law), (a)
increase the maximum number of shares for which options may be granted under the
Plan, (b) change the group of employees eligible to receive options under the
Plan, (c) reduce the price at which Incentive Options may be granted, (d) extend
the time within which options may be granted, (e) alter the Plan in such a way
that Incentive Options already granted hereunder would not be considered
Incentive Options under Section 422 of the Code, (f) amend the provisions of
this Section 16, or (g) make any other change in the Plan which requires
stockholder approval under applicable law or regulations, including any approval
requirement which is a prerequisite for exemptive relief under Section 16 of the
Securities and Exchange Act of 1934. The termination or any modification or
amendment of the Plan shall not adversely affect the rights of any optionholder
under any option previously granted without his or her consent.

        17. COMPLIANCE WITH RULE 16b-3. It is intended that the provisions of
this Plan and any option granted thereunder to a person subject to the reporting
requirements of Section 16(a) of the Securities and Exchange Act of 1934, as
amended, shall comply in all respects with the terms and conditions of Rule
16b-3 promulgated under such Act or any successor provisions thereto. Any
agreement granting options shall contain such provisions as are necessary or
appropriate to assure such compliance. To the extent that any provision hereof
is

                                       8
<PAGE>   9

found not to be in compliance with such Rule, such provision shall be deemed to
be modified so as to be in compliance with such Rule or, if such modification is
not possible, shall be deemed to be null and void, as it relates to a recipient
subject to Section 16(a) of the Securities and Exchange Act of 1934, as amended.

                                       9

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