Document:

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                                                                    EXHIBIT 10.8

                                OBJECTSPACE, INC.

                              AMENDED AND RESTATED

                   1994 RESTRICTED STOCK AND STOCK OPTION PLAN

                                    ARTICLE I

                                 PURPOSE OF PLAN

         This Amended and Restated 1994 Restricted Stock and Stock Option Plan
(the "Plan") of ObjectSpace, Inc. is intended to provide greater incentives
for key employees to attain and maintain the highest standards of performance,
to attract and retain key employees of outstanding competence and ability, to
stimulate the active interest of such persons in the development and financial
success of the Company, to further the identity of interest of such employees
with those of the Company's owners generally and to reward such employees for
outstanding performance. As used herein, the term "Company" means ObjectSpace,
Inc. and each of its fifty percent (50%) or more owned affiliates.

                                   ARTICLE II

                           ADMINISTRATION OF THE PLAN

         2.1 APPOINTMENT OF PLAN MANAGEMENT COMMITTEE. The Plan shall be
administered by a plan management committee (the "Committee") of not less than
two persons designated by the Board of Directors of the Company; provided,
however, that the Plan shall be administered by the Board of Directors (and
all references herein to the Committee shall be deemed a reference to the
Board of Directors) until such time as the Committee is established by the
Board of Directors.

         2.2 COMMITTEE POWERS. The Committee shall be deemed to have and to be
exercising all of the powers of the Board of Directors of the Company in the
performance of any of the powers and duties delegated to it under the Plan,
including, but without limiting the generality of the foregoing, (a) the
selection of employees who shall be awarded shares of Common Stock of the
Company ("Common Stock") or options ("Options") to acquire shares of Common
Stock and (b) the determination of the number of shares of Common Stock to be
awarded, or for which Options will be granted, to each such employee. The
Committee shall have full power and authority to interpret the provisions of
the Plan and may from time to time establish eligibility requirements for
participation in the Plan and rules for the administration of the Plan that
are not inconsistent with the provisions and purposes of the Plan.

         2.3 COMMITTEE ACTION. A majority of the members of the Committee
shall constitute a quorum for the transaction of business. All action taken by
the Committee at a meeting shall be by the vote of a majority of those present
at such meeting, but any action may be taken by the Committee without a
meeting upon written consent signed by all of the members of the Committee.

         2.4 COMMITTEE DETERMINATIONS CONCLUSIVE. All determinations of the
Committee as to which employees shall receive Options or shares of Common
Stock under the Plan, the number of shares of Common Stock to be awarded or
for which Options will be granted, and the terms and vesting schedule
applicable to such Options or shares of Common Stock, shall be final, binding,
and conclusive upon all persons. The determination of the Committee as to any
disputed question arising under the Plan, including questions of construction
and interpretation, shall be final, binding and conclusive upon all persons.
Without limiting the generality of the foregoing, the determination of the
Committee as to whether an employee has terminated his

<PAGE>

                                                                    EXHIBIT 10.8

employment and the date thereof, or the cause to which termination of
employment is attributable, shall be final, binding, and conclusive upon all
persons.

         2.5 COMMITTEE LIABILITY. No member of the Committee shall be liable
for any act done or determination made in good faith.

                                   ARTICLE III

                   GRANT OF OPTIONS AND SHARES OF COMMON STOCK

         3.1 MAXIMUM NUMBER OF SHARES OF COMMON STOCK. The maximum number of
shares of Common Stock which may be awarded and outstanding and for which
Options may be awarded and outstanding at any one time, and the maximum number
of shares of Common Stock awarded or for which Options may be granted to any
one employee, shall be determined by the Committee in its sole discretion;
provided, however, that the aggregate number of shares of Common Stock awarded
or for which Options may be granted to all employees pursuant to the Plan
shall not be more than 1,000,000; provided, however, that the maximum number
of shares for which an Option or Options may be granted to any one employee
during any calendar year shall not exceed 200,000 shares. In the event that
any outstanding shares of Common Stock or Options are forfeited pursuant to
Sections 5.2(c), 5.3(c) and 5.3(d) hereof, such forfeited shares or options
shall be canceled and shall no longer be considered outstanding and may again
be subject to award under the Plan.

         3.2 DESIGNATION OF EMPLOYEES. The persons eligible for participation
in the Plan as recipients of shares of Common Stock or Options (the
"Participants") shall be determined by the Committee and shall include only
employees. In determining the employees to whom shares of Common Stock or
Options shall be granted and the number of shares of Common Stock to be
covered by each such grant, the Committee may take into account the nature of
the services rendered by the respective employees, their present and potential
contributions to the success of the Company and its subsidiaries, and such
other factors as the Committee in its sole discretion shall deem relevant. Any
employee who has been granted shares of Common Stock or Options hereunder may
be granted additional shares of Common Stock or Options, if the Committee
shall so determine.

                                   ARTICLE IV

                          CAPITAL CHANGE OF THE COMPANY

         4.1 RIGHT TO CHANGE CAPITAL STRUCTURE. The existence of this Plan and
any outstanding shares of Common Stock or Options granted hereunder shall not
affect in any way the right or power of the Company or its owners to make or
authorize any or all adjustments, recapitalizations, reorganizations or other
changes in the Company's capital structure or its business, or any merger or
consolidation of the Company, or any issue of bonds, debentures, preferred
equity interests, or the dissolution or liquidation of the Company, or any
sale or transfer of all or any part of its assets or business, or any other
act or proceeding whether of a similar character or otherwise.

         4.2 REORGANIZATION OF THE COMPANY.

         (a) In the event the outstanding shares of Common Stock of the Company
         shall at any time be changed or exchanged by declarations of a stock
         dividend, split-up, combination of shares, or recapitalization, the
         maximum aggregate number and class of shares as to which awards may be
         granted under the Plan, the number of shares of Common Stock covered
         by each outstanding Option, and/or the exercise price of each
         outstanding Option shall be appropriately adjusted by the Committee

                                       2

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                                                                    EXHIBIT 10.8

         whose determination shall be conclusive, final and binding; PROVIDED,
         HOWEVER, that no adjustment shall be made with respect to Options,
         unless the aggregate effect of all such increases and decreases
         occurring in any one fiscal year after the effective date of this Plan
         increases or decreases the number of issued and outstanding shares of
         Common Stock of the Company by two percent (2%) or more; PROVIDED,
         FURTHER, that any Option to purchase fractional shares resulting from
         any such adjustment shall be eliminated by rounding down to the
         nearest whole share of Common Stock.

                  (b) If the Company participates in any merger, consolidation
         or similar occurrence where the Company is not the surviving entity,
         the surviving corporation or its parent or subsidiary (the "Surviving
         Corporation") may assume the Company's duties and obligations as to
         Options or Unvested Shares (as defined in Section 5.2(a)) granted
         under the Plan and substitute new option rights with respect to the
         stock of the Surviving Corporation for such Options or common stock
         of the Surviving Corporation for such Unvested Shares; PROVIDED,
         HOWEVER, that the value, nature and terms (including vesting periods,
         forfeiture provisions and restrictions) of the new options and new
         shares of stock shall be the same as the Options and Unvested Shares
         for which the new options and new shares of stock are substituted. If
         the Company (i) participates in any merger, consolidation or similar
         occurrence where the Company is not the surviving entity and the
         Surviving Corporation does not assume the Company's duties and
         obligations as to Options and Unvested Shares awarded under the Plan,
         or (ii) undergoes any sale of all or substantially all of its assets
         following which all or any portion of the proceeds of such sale are
         to be distributed to the stockholders of the Company (each such event
         being hereinafter referred to as an "Extraordinary Transaction"), the
         Committee, in its sole discretion, may designate a date (the
         "Extraordinary Vesting Date"), not less than twenty (20) calendar
         days immediately before the effective date of such Extraordinary
         Transaction at which time all Unvested Shares and Unvested Options
         (as defined in Sections 5.2(a) and 5.3(a), respectively) shall become
         Vested Shares and Vested Options (as defined in Sections 5.2(f) and
         5.3(e), respectively). In such a case, during the period beginning on
         the Extraordinary Vesting Date and ending on the effective date of
         the Extraordinary Transaction, each participant may exercise all
         Vested Options (including those that become vested pursuant to the
         provisions of this Section 4.2(b)) in accordance with the terms of
         Section 5.3(i) hereof Any Options outstanding under the Plan after
         the effective date of the Extraordinary Transaction which have not
         been exercised on or prior to such effective date shall terminate and
         thereupon become null and void.

                  (c) Any shares of Common Stock or other securities or assets
         (other than ordinary cash dividends) received by a Participant with
         respect to Unvested Shares shall also be unvested, shall be subject to
         the restrictions and forfeiture provisions set forth in Article V, and
         shall be deposited by the Participant with the Company in the manner
         specified in Section 5.2(d).

                                    ARTICLE V

                      TERMS OF RESTRICTED STOCK AND OPTIONS

         5.1 GENERAL. Subject to the provisions of Section 2.2 and 3.2 hereof,
the Committee may, from time to time, determine which employees shall be
granted shares of Common Stock or Options under the Plan, the number of shares
of Common Stock granted or subject to each Option, and the time or times at
which shares of Common Stock or Options shall be granted. All shares of Common
Stock and Options awarded to Participants under this Plan (and shares of
Common Stock issuable upon exercise of such Options) shall be subject to the
terms ind conditions set forth in this Article V and to such other terms and
conditions not inconsistent with the Plan as shall be contained in a
Restricted Stock Agreement or Option Agreement entered into between the
Participant and the Company. In the event of any inconsistency between the
terms and conditions of this Plan and those contained in a Restricted Stock
Agreement or Option Agreement, the

                                       3

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                                                                    EXHIBIT 10.8

provisions of the Plan shall govern. The Restricted Stock Agreement or Option
Agreement shall be in a form specified by the Committee and shall set forth
the Vesting Period and forfeiture provisions and other terms and conditions
applicable to the shares of Common Stock or Options awarded hereunder (and
shares of Common Stock issuable upon exercise of such Options) and such other
matters, including compliance with applicable federal and state securities
laws and methods of withholding required taxes, as the Committee shall in its
sole discretion determine.

         5.2 RESTRICTED STOCK. All shares of Common Stock awarded to
Participants under the Plan shall be subject to the following additional terms
and conditions.

                  (a) Except as otherwise provided in the Participant's
         Restricted Stock Agreement, all shares of Common Stock awarded to
         Participants under this Plan shall initially be unvested ("Unvested
         Shares") and will be subject to the substantial risk of forfeiture and
         restrictions on transfer referred to in Sections 5.2(b)-(d).

                  (b) Unvested Shares may not be sold, assigned, transferred,
         pledged, or otherwise encumbered or disposed of, except as hereinafter
         provided. No transfer of a participant's rights with respect to
         Unvested Shares, whether voluntary or involuntary, by operation of law
         or otherwise, shall vest the transferee with any interest or right in
         or with respect to such Unvested Share, but immediately upon any
         attempt to transfer such rights, such Unvested Share, and all of the
         rights related thereto, shall be forfeited by the Participant and the
         transfer shall be of no force or effect.

                  (c) If a Participant ceases to be an employee of the Company
         or one of its fifty percent (50%) or more owned affiliates for any
         reason, all Unvested Shares shall be forfeited and returned to the
         Company upon such termination of employment, subject to the terms and
         conditions set forth in the Participant's Restricted Stock Agreement.

                  (d) Each certificate issued in respect of shares of Common
         Stock awarded under the Plan shall be registered in the name of the
         Participant and deposited by him, together with a stock power endorsed
         in blank, with the Company and shall bear the following legend:

                  "THE TRANSFERABILITY OF THIS CERTIFICATE AND THE SHARES OF
                  STOCK REPRESENTED HEREBY ARE SUBJECT TO THE TERMS AND
                  CONDITIONS (INCLUDING FORFEITURE) CONTAINED IN THE AMENDED
                  AND RESTATED 1994 RESTRICTED STOCK AND STOCK OPTION PLAN FOR
                  OBJECTSPACE, INC. AND AN AGREEMENT ENTERED INTO BETWEEN THE
                  REGISTERED OWNER AND OBJECTSPACE, INC. COPIES OF SUCH PLAN
                  AND AGREEMENT ARE ON FILE IN THE PRINCIPAL OFFICE OF
                  OBJECTSPACE, INC., DALLAS, TEXAS."

                  (e) Except for the restrictions on transfer and subject to
         the risk of forfeiture set forth in Sections 5.2(b)-(d), and subject
         to the agreement specified in Section 5.2(g) hereof, any Participant
         who receives Unvested Shares, as owner of such Unvested Shares, shall
         have all the rights of a holder of Common Stock, including but not
         limited to the right to receive all dividends paid on such shares and
         the right to vote such shares.

                  (f) Provided that the Participant remains employed by the
         Company (or a 50% or more owned affiliate of the Company) continuously
         throughout the Vesting Period applicable to the Unvested Shares which
         is specified in the Participant's Restricted Stock Agreement, and
         subject to such other terms and conditions as are set forth in the
         Participant's Restricted Stock Agreement, such

                                       4

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                                                                    EXHIBIT 10.8

         Unvested Shares shall become vested ("Vested Shares") and shall no
         longer be subject to the transfer restrictions and forfeiture
         provisions set forth in Sections 5.2(b)-(d) (but shall be subject to
         the agreement specified in Section 5.2(g) hereof).

                  (g) If the Company so requests, the Participant shall execute
         a counterpart of a shareholders' agreement among the Company and its
         shareholders, as in effect at such time or in a form specified by the
         Company, which shareholders' agreement may, among other things, set
         forth terms and conditions applicable to the participant's exercise of
         voting rights with respect to Unvested Shares and Vested Shares and
         restrictions applicable to sales or other dispositions of Vested
         Shares.

                  (h) As soon as practicable after Unvested Shares become
         Vested shares, the Company shall redeliver to the Participant, or his
         legal representative, the certificates representing the shares of
         Common Stock deposited with it pursuant to Section 5.2(d). Such
         certificates, upon delivery to the Participant, shall no longer bear
         the legend set forth in Section 5.2(d).

         5.3 OPTIONS. All Options awarded to Participants under this Plan shall
be subject to the following additional terms and conditions.

                  (a) Except as otherwise provided in the Participant's Option
         Agreement, all Options awarded to Participants under this Plan shall
         initially be unvested ("Unvested Options") and will be subject to the
         substantial risk of forfeiture and other restrictions hereinafter
         referred to.

                  (b) The purchase price of each share of Common Stock subject
         to an option granted pursuant to the Plan shall be determined by the
         Committee on the date of the grant.

                  (c) The Committee shall determine at the date of grant of an
         Option what conditions shall apply to the exercise and expiration of
         Vested Options (as defined in Section 5.3(e)) in the event the
         Participant ceases to be employed by the Company for any reason. No
         Option shall be exercisable after the expiration of ten (10) years
         from the date the Option is granted, or such shorter period as is
         established by the Committee and set forth in the Participant's Option
         Agreement. No Option shall be exercisable prior to the time it becomes
         a Vested Option.

                  (d) If a Participant ceases to be an employee of the Company
         or one of its 50% or more owned affiliates for any reason, (i) all
         Vested Options (as defined in Section 5.3(e)) shall expire and
         terminate pursuant to the terms set forth in the Participant's Option
         Agreement and (ii) all Unvested Options shall be forfeited and
         returned to the Company upon such termination of employment, subject
         to the terms and conditions set forth in the Participant's Option
         Agreement.

                  (e) Provided that the Participant remains employed by the
         Company (or a 50% or more owned affiliate of the Company) continuously
         throughout the Vesting Period applicable to the Unvested Option which
         is specified in the Participant's Option Agreement, and subject to
         such other terms and conditions as are set forth in the Participant's
         Option Agreement, such Unvested Option shall become vested ("Vested
         Option") and shall no longer be subject to the forfeiture provisions
         set forth in Section 5.3(d)(ii), but shall be subject to the
         expiration and termination provisions referred to in Section
         5.3(d)(i).

                  (f) No Vested Option or Unvested Option granted under the
         Plan shall be assigned or transferred otherwise than by last will and
         testament or by the laws of descent and distribution or otherwise
         pledged or hypothecated (whether by operation of law or otherwise).
         During the lifetime of a Participant, any Vested Options held by the
         Participant shall be exercisable only by the Participant

                                       5

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                                                                    EXHIBIT 10.8

         or the Participant's attorney in fact. Any attempted assignment,
         transfer, pledge or hypothecation contrary to the provisions hereof
         shall be void and ineffective for all purposes.

                  (g) A Participant shall have no rights as a stockholder with
         respect to any shares of Common Stock of the Company for which the
         Participant holds an Option, until after the Option is exercised and
         the stock certificates are issued to the Participant for such Shares.

                  (h) If the Company so requests, the Participant shall execute
         a counterpart of a shareholders' agreement among the Company and its
         shareholders, as in effect at such time or in a form specified by the
         Company, which shareholders' agreement may, among other things, set
         forth terms and conditions applicable to the Participant's exercise of
         voting rights with respect to, and restrictions applicable to sales or
         other dispositions of, shares of Common Stock received upon exercise
         of an Option.

                  (i) The Participant may exercise any Vested Option, in whole
         or in part, in the manner specified in this Section 5.3(i) at any time
         on or before the earlier of (i) the tenth anniversary of the date of
         grant of such Option, (ii) the date specified in the last two
         sentences of Section 4.2(b) hereof, or (iii) the date of expiration
         of such Option as set forth in Participant's Option Agreement in the
         event the Participant ceases to be employed by the Company for any
         reason. In order to exercise a Vested Option in whole or in part, the
         Participant must (i) notify the Company in writing of the full number
         of shares of Common Stock with respect to which the Option is being
         exercised, (ii) deliver to the Company the full option exercise
         price, (iii) satisfy all applicable provisions of the Participant's
         Option Agreement and all applicable tax withholding obligations in
         accordance with Section 7.1 hereof, and (iv) if the Company so
         requests, enter into the agreement referred to in Section 5.3(h)
         hereof. Within ten (10) days of the Company's receipt of the
         Participant's written notification and satisfaction of the
         requirements specified in the preceding sentence, the Company shall
         deliver to the Participant at the principal office of the Company or
         such other place as shall be mutually acceptable, a certificate or
         certificates for shares of Common Stock issued on exercise of the
         Option; PROVIDED, HOWEVER, that the time of such issuance and
         delivery may be postponed by the Company for such period as may be
         required for it with reasonable diligence to comply with any
         requirements of law or any exchange on which the Common Stock may
         then be listed.

         5.4 RESTRICTIONS ON TRANSFER. In the event shares of Common Stock
awarded to Participants under the Plan, or issued to Participants upon exercise
of Options awarded under the Plan, are not covered by a then current
registration statement under the Securities Act of 1933, as amended (the "1933
Act"), and are not otherwise exempt from such registration, such shares shall
be restricted against transfer to the extent required by the 1933 Act or the
regulations thereunder, and -all certificates representing such shares shall
bear legends describing such restrictions.

                                   ARTICLE VI

                             RIGHTS OF PARTICIPANTS

         6.1 LIMITATION OF RIGHTS. Nothing in this Plan shall be construed to:

                  (a) Give any employee any right to be awarded any Options or
         shares of Common Stock other than as the Committee may, in its sole
         discretion, determine;

                  (b) Limit in any way the right of the Company to terminate a
         Participant's employment with the Company at any time;

                                       6

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                                                                    EXHIBIT 10.8

                  (c) Give a Participant or any other person any interest in
         any fund or in any specific asset or assets of the Company; or

                  (d) Be evidence of any agreement or understanding, express or
         implied, that the Company will (i) continue to employ a Participant or
         (ii) employ a Participant in any particular position or at any
         particular rate of remuneration.

         6.2 NONALIENATION OF BENEFITS. No right or benefit under this Plan
shall be subject to alienation, sale, assignment, pledge, encumbrance or
charge, and any attempt to alienate, sell, assign, pledge, encumber or charge
the same will be void. No right or benefit hereunder shall in any manner be
liable for or subject to any debts, contracts, liabilities or torts of the
person entitled to such benefits. If any Participant hereunder shall become
bankrupt or attempt to alienate, assign, sell, pledge, encumber or charge any
right or benefit hereunder, or if any creditor shall attempt to subject the
same to a writ of garnishment, attachment, execution, sequestration, or any
other form of process or involuntary lien or seizure, then such right or
benefit shall be held by the Company for the sole benefit of the Participant,
his or her spouse, children or other dependents, or any of them in such manner
and in such proportion as the Committee shall deem proper, free and clear of
the claims of any other party whatsoever.

         6.3 PREREQUISITES TO BENEFITS. No Participant hereunder, or any
person claiming through a Participant hereunder, shall have any right or
interest in the Plan or any benefits hereunder unless and until all the terms,
conditions and provisions of the Plan that affect such Participant or such
other person shall have been complied with as specified herein. The
Participant shall complete such forms and furnish such information as the
Committee may require in the administration of the Plan.

                                   ARTICLE VII

                              WITHHOLDING OF TAXES

         7.1 WITHHOLDING. A Participant shall be responsible for ensuring that
all applicable income tax withholding obligations and the Participant's share
of FICA withholding obligations with respect to awards of Options or shares of
Common Stock hereunder are satisfied. The method for satisfying such
withholding obligations shall be as set forth in the Participant's Restricted
Stock Agreement or Option Agreement.

                                  ARTICLE VIII

                                  MISCELLANEOUS

         8.1 AMENDMENT OR TERMINATION OF THE PLAN.

                  (a) The Board of Directors may amend or terminate this Plan
         at any time without the consent of any Participant. Except as
         otherwise contemplated in the Plan, any amendment or termination of
         this Plan shall not have any material adverse affect on the rights of
         a Participant to the benefits provided hereunder as to the shares of
         Common Stock or Options outstanding at the time of such amendment or
         termination without the consent of such Participant.

                  (b) The right to grant awards of shares of Common Stock or
         Options under this Plan shall terminate automatically at the close of
         business on September 6, 2004 (the tenth anniversary of the effective
         date of the Plan).

                                       7

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                                                                    EXHIBIT 10.8

         8.2 RELIANCE UPON INFORMATION. The Committee may rely upon any
information supplied to them by any officer of the Company, the Company's
legal counsel or by the Company's independent public accountants in connection
with the administration of the Plan, and shall not be liable for any decision,
action or omission in reliance thereon.

         8.3 GOVERNING LAW. The place of administration of the Plan shall be
conclusively deemed to be within the State of Texas. THE VALIDITY,
CONSTRUCTION, INTERPRETATION AND EFFECT OF THE PLAN AND ALL RIGHTS OF ANY AND
ALL PERSONS HAVING OR CLAIMING TO HAVE ANY INTEREST IN THE PLAN SHALL BE
GOVERNED BY THE LAWS OF THE STATE OF TEXAS.

                                       8

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                                                                    EXHIBIT 10.8

         IN WITNESS WHEREOF, the Company has executed this Plan this 15th day
of March, 1997.

                                           ObjectSpace, Inc.

                                           By:  /s/ DAVID NORRIS
                                               --------------------------
                                               David Norris
                                               President

                                       9<PAGE>
                                                                   EXHIBIT 10.9

                                OBJECTSPACE, INC.

                             1998 STOCK OPTION PLAN

<PAGE>
                                                                   EXHIBIT 10.9

                                OBJECTSPACE, INC.
                             1998 STOCK OPTION PLAN

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                    PAGE
                                                                    ----
<S>          <C>                                                    <C>
ARTICLE 1    PURPOSE.................................................  1

ARTICLE 2    DEFINITIONS.............................................  1
     2.1     Award...................................................  1
     2.2     Award Agreement.........................................  1
     2.3     Award Period............................................  1
     2.4     Board...................................................  1
     2.5     Change of Control.......................................  2
     2.6     Code....................................................  2
     2.7     Committee...............................................  2
     2.8     Common Stock............................................  3
     2.9     Company.................................................  3
     2.10    Date of Grant...........................................  3
     2.11    Disability..............................................  3
     2.12    Employee................................................  3
     2.13    Fair Market Value.......................................  3
     2.14    Incentive Stock Option..................................  3
     2.15    Non-qualified Stock Option..............................  3
     2.16    Option Price............................................  4
     2.17    Participant.............................................  4
     2.18    Plan....................................................  4
     2.19    Stock Option............................................  4
     2.20    Subsidiary..............................................  4
     2.21    Termination of Service..................................  4

ARTICLE 3    ADMINISTRATION..........................................  4

ARTICLE 4    ELIGIBILITY.............................................  5

ARTICLE 5    SHARES SUBJECT TO PLAN..................................  6

ARTICLE 6    GRANT OF AWARDS.........................................  6
     6.1     In General..............................................  6

                                                                  PAGE I
<PAGE>
                                                                   EXHIBIT 10.9

     6.2     Maximum ISO Grants......................................  6

ARTICLE 7    OPTION PRICE............................................  7

ARTICLE 8    AWARD PERIOD; VESTING...................................  7
     8.1     Award Period............................................  7
     8.2     Vesting.................................................  7

ARTICLE 9    TERMINATION OF SERVICE..................................  8
     9.1     Death...................................................  8
     9.2     Disability..............................................  8
     9.3     Termination for Other Reasons...........................  8
     9.4     Leave of Absence........................................  8

ARTICLE 10   EXERCISE OF INCENTIVE...................................  8
    10.1     In General..............................................  8
    10.2     Disqualifying Disposition of ISO........................  9

ARTICLE 11   AMENDMENT OR DISCONTINUANCE............................. 10

ARTICLE 12   TERM.................................................... 10

ARTICLE 13   CAPITAL ADJUSTMENTS..................................... 10

ARTICLE 14   RECAPITALIZATION, MERGER AND
             CONSOLIDATION; CHANGE IN CONTROL........................ 11

ARTICLE 15   LIQUIDATION OR DISSOLUTION.............................. 12

ARTICLE 16   INCENTIVES IN SUBSTITUTION FOR
             INCENTIVES GRANTED BY OTHER CORPORATIONS................ 13

ARTICLE 17   MISCELLANEOUS PROVISIONS................................ 13
    17.1     Investment Intent....................................... 13
    17.2     No Right to Continued Employment........................ 13
    17.3     Indemnification of Board and Committee.................. 13
    17.4     Effect of the Plan...................................... 14
    17.5     Compliance With Other Laws and Regulations.............. 14
    17.6     Tax Requirements........................................ 14
</TABLE>

                                                                 PAGE II
<PAGE>
                                                                   EXHIBIT 10.9

                                OBJECTSPACE, INC.

                             1998 STOCK OPTION PLAN

         The name of the plan is the OBJECTSPACE, INC. 1998 STOCK OPTION PLAN
(the "PLAN"). The Plan was adopted by the Board of Directors of OBJECTSPACE,
INC., a Delaware corporation (hereinafter called the "COMPANY"), effective as of
April 1, 1998.

                                    ARTICLE 1
                                     PURPOSE

         The purpose of the Plan is to attract and retain the services of key
employees of the Company and its Subsidiaries and to provide such persons with a
proprietary interest in the Company through the granting of incentive stock
options and non-qualified stock options that will

         (a)      increase the interest of such persons in the Company's
welfare;

         (b)      furnish an incentive to such persons to continue their
services for the Company; and

         (c)      provide a means through which the Company may attract able
persons as employees.

                                    ARTICLE 2
                                   DEFINITIONS

         For the purpose of the Plan, unless the context requires otherwise, the
following terms shall have the meanings indicated:

         2.1   "AWARD" means the grant of any Incentive Stock Option or
Nonqualified Stock Option, whether granted singly, in combination or in tandem
(each individually referred to herein as an "INCENTIVE").

         2.2   "AWARD AGREEMENT" means a written agreement between a
Participant and the Company which sets out the terms of an Award.

         2.3   "AWARD PERIOD" means the period during which one or more
Incentives granted under an Award may be exercised.

         2.4   "BOARD" means the board of directors of the Company.

<PAGE>
                                                                   EXHIBIT 10.9

         2.5   "CHANGE OF CONTROL" means any of the following: (i) any
consolidation, merger or share exchange of the Company in which the Company is
not the continuing or surviving corporation or pursuant to which shares of the
Company's Common Stock would be converted into cash, securities or other
property, other than a consolidation, merger or share exchange of the Company in
which the holders of the Company's Common Stock immediately prior to such
transaction have the same proportionate ownership of Common Stock of the
surviving corporation immediately after such transaction; (ii) any sale, lease,
exchange or other transfer (excluding transfer by way of pledge or
hypothecation) in one transaction or a series of related transactions, of all or
substantially all of the assets of the Company; (iii) the stockholders of the
Company approve any plan or proposal for the liquidation or dissolution of the
Company; (iv) the cessation of control (by virtue of their not constituting a
majority of directors) of the Board by the individuals (the "CONTINUING
DIRECTORS") who (x) at the date of this Plan were directors or (y) become
directors after the date of this Plan and whose election or nomination for
election by the Company's stockholders, was approved by a vote of at least
two-thirds of the directors then in office who were directors at the date of
this Plan or whose election or nomination for election was previously so
approved; (v) the acquisition of beneficial ownership (within the meaning of
Rule 13d-3 under the 1934 Act) of an aggregate of twenty percent (20%) of the
voting power of the Company's outstanding voting securities by any person or
group (as such term is used in Rule 13d-5 under the 1934 Act) who beneficially
owned less than 15% of the voting power of the Company's outstanding voting
securities on the date of this Plan, or the acquisition of beneficial ownership
of an additional 5% of the voting power of the Company's outstanding voting
securities by any person or group who beneficially owned at least 15% of the
voting power of the Company's outstanding voting securities on the date of this
Plan, provided, however, that notwithstanding the foregoing, an acquisition
shall not constitute a Change of Control hereunder if the acquirer is (x) a
trustee or other fiduciary holding securities under an employee benefit plan of
the Company and acting in such capacity, (y) a Subsidiary of the Company or a
corporation owned, directly or indirectly, by the stockholders of the Company in
substantially the same proportions as their ownership of voting securities of
the Company or (z) any other person whose acquisition of shares of voting
securities is approved in advance by a majority of the Continuing Directors; or
(vi) in a Title 11 bankruptcy proceeding, the appointment of a trustee or the
conversion of a case involving the Company to a case under Chapter 7.

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

         2.7   "COMMITTEE" means the Compensation and Stock Option Committee or
another committee appointed or designated by the Board to administer the Plan.

                                                                        PAGE 2

<PAGE>
                                                                   EXHIBIT 10.9

         2.8   "COMMON STOCK" means the common stock, par value $.01 per share,
which the Company is currently authorized to issue or may in the future be
authorized to issue.

         2.9   "COMPANY" means OBJECTSPACE,INC., a Delaware corporation,
and any successor entity.

         2.10  "DATE OF GRANT" means the effective date on which an Award is
made to a Participant as set forth in the applicable Award Agreement.

         2.11  "DISABILITY" shall have the meaning given it in the employment
agreement of the Participant; provided, however, that if that Participant has no
employment agreement, "Disability" shall mean a physical or mental impairment of
sufficient severity that, in the opinion of the Company, either the Participant
is unable to continue performing the duties he performed before such impairment
or the Participant's condition entitles him to disability benefits under any
insurance or employee benefit plan of the Company or its Subsidiaries and that
impairment or condition is cited by the Company as the reason for termination of
the Participant's employment; provided, however, with respect to any Incentive
Stock Option, Disability shall have the meaning given it under the rules
governing Incentive Stock Options under the Code.

         2.12  "EMPLOYEE" means common law employee (as defined in accordance
with the Regulations and Revenue Rulings then applicable under Section 3401(c)
of the Code) of the Company or any Subsidiary of the Company.

         2.13  "FAIR MARKET VALUE" of a share of Common Stock is the fair market
value of the Common Stock determined in good faith by the Committee; provided,
however, that (i) if the Common Stock is admitted to quotation on the National
Association of Securities Dealers Automated Quotation System ("NASDAQ"), the
Fair Market Value on any given date shall not be less than the average of the
highest bid and lowest asked prices of the Common Stock reported for such date
or, if no bid and asked prices were reported for such date, for the last day
preceding such date for which such prices were reported, or (ii) if the Common
Stock is admitted to trading on a national securities exchange or the NASDAQ
National Market System, the Fair Market Value on any date shall not be less than
the closing price reported for the Common Stock on such exchange or system for
such date or, if no sales were reported for such date, for the last date
preceding the date for such a sale was reported.

         2.14  "INCENTIVE STOCK OPTION" or "ISO" means an incentive stock
option within the meaning of Section 422 of the Code, granted pursuant to
this Plan.

                                                                        PAGE 3
<PAGE>
                                                                   EXHIBIT 10.9

         2.15  "NON-QUALIFIED STOCK OPTION" or "NQSO" means a non-qualified
stock option granted pursuant to this Plan.

         2.16  "OPTION PRICE" means the price which must be paid by a
Participant upon exercise of a Stock Option to purchase a share of Common Stock.

         2.17  "PARTICIPANT" shall mean an Employee of the Company or a
Subsidiary to whom an Award is granted under this Plan.

         2.18  "PLAN" means this OBJECTSPACE, INC. 1998 Stock Option Plan, as
amended from time to time.

         2.19  "STOCK OPTION" means a Non-qualified Stock Option or an
Incentive Stock Option.

         2.20  "SUBSIDIARY" means (i) any corporation or limited liability
company in an unbroken chain of corporations or limited liability companies
beginning with the Company, if each of the corporations or limited liability
companies other than the last corporation or limited liability company in the
unbroken chain owns equity securities possessing a majority of the total
combined voting power of all classes of equity securities in one of the other
corporations or limited liability companies in the chain, and (ii) any limited
partnership, if the Company or any corporation or limited liability company
described in item (i) above owns a majority of the general partnership interest
and a majority of the limited partnership interests entitled to vote on the
removal and replacement of the general partner. "SUBSIDIARIES" means more than
one of any such corporations, limited partnerships or limited liability
companies.

         2.21  "TERMINATION OF SERVICE" occurs when a Participant who is an
Employee of the Company or any Subsidiary shall cease to serve as an Employee of
the Company and its Subsidiaries, for any reason.

                                    ARTICLE 3
                                 ADMINISTRATION

         The Plan shall be administered by the Committee appointed by the Board.
The Committee shall consist of not fewer than two persons. Any member of the
Committee may be removed at any time, with or without cause, by resolution of
the Board. Any vacancy occurring in the membership of the Committee may be
filled by appointment by the Board.

         On and after the date the Company becomes subject to Section 162(m) of
the Code, each member on the Committee shall be an "OUTSIDE DIRECTOR" within the
meaning of

                                                                        PAGE 4
<PAGE>
                                                                   EXHIBIT 10.9

Section 162(m) of the Code. The Committee shall select one of its members to act
as its Chairman. A majority of the Committee shall constitute a quorum, and the
act of a majority of the members of the Committee present at a meeting at which
a quorum is present shall be the act of the Committee.

         The Committee shall determine and designate from time to time the
eligible persons to whom Awards will be granted and shall set forth in each
related Award Agreement the Award Period, the Date of Grant, and such other
terms, provisions, limitations, and performance requirements, as are approved by
the Committee, but not inconsistent with the Plan. The Committee shall determine
whether an Award shall include one type of Incentive, or two or more Incentives
granted in combination.

         The Committee, in its discretion, shall (i) interpret the Plan, (ii)
prescribe, amend, and rescind any rules and regulations necessary or appropriate
for the administration of the Plan, and (iii) make such other determinations and
take such other action as it deems necessary or advisable in the administration
of the Plan. Any interpretation, determination, or other action made or taken by
the Committee shall be final, binding, and conclusive on all interested parties.

         With respect to restrictions in the Plan that are based on the
requirements of Rule 16b-3 promulgated under the 1934 Act, Section 422 of the
Code, Section 162(m) of the Code, the rules of any exchange or inter-dealer
quotation system upon which the Company's securities are listed or quoted, or
any other applicable law, rule or restriction (collectively, "APPLICABLE LAW"),
to the extent that any such restrictions are not applicable or are no longer
required by applicable law, the Committee shall have the sole discretion and
authority to grant Awards that are not subject to such mandated restrictions
and/or to waive any such mandated restrictions with respect to outstanding
Awards.

                                    ARTICLE 4
                                   ELIGIBILITY

         Any Employee (including an Employee who is also a director or an
officer) whose judgment, initiative, and efforts contributed or may be expected
to contribute to the successful performance of the Company is eligible to
participate in the Plan; provided that only Employees shall be eligible to
receive Incentive Stock Options. The Committee, upon its own action, may grant,
but shall not be required to grant, an Award to any Employee of the Company or
any Subsidiary. Awards may be granted by the Committee at any time and from time
to time to new Participants, or to then Participants, or to a greater or lesser
number of Participants, and may include or exclude previous Participants, as the
Committee shall determine. Except as required by this Plan, Awards granted at
different times need not contain similar provisions. The Committee's
determinations under the Plan (including without limitation determinations of
which Employees, if any, are to receive Awards, the

                                                                        PAGE 5
<PAGE>
                                                                   EXHIBIT 10.9

form, amount and timing of such Awards, the terms and provisions of such Awards
and the agreements evidencing same) need not be uniform and may be made by it
selectively among Employees who receive, or are eligible to receive, Awards
under the Plan.

                                    ARTICLE 5
                             SHARES SUBJECT TO PLAN

         Subject to adjustment as provided in ARTICLES 13 AND 14, the maximum
number of shares of Common Stock that may be delivered pursuant to Awards
granted under the Plan is (a) six hundred fifty thousand (650,000) shares; plus
(b) shares of Common Stock previously subject to Awards which are forfeited,
terminated, or expired unexercised; plus (c) without duplication for shares
counted under the immediately preceding clause, a number of shares of Common
Stock equal to the number of shares repurchased by the Company in the open
market or otherwise and having an aggregate repurchase price no greater than the
amount of cash proceeds received by the Company from the sale of shares of
Common Stock under the Plan; plus (d) any shares of Common Stock surrendered to
the Company in payment of the exercise price of options issued under the Plan.

         Shares to be issued may be made available from authorized but unissued
Common Stock, Common Stock held by the Company in its treasury, or Common Stock
purchased by the Company on the open market or otherwise. During the term of
this Plan, the Company will at all times reserve and keep available the number
of shares of Common Stock that shall be sufficient to satisfy the requirements
of this Plan.

                                    ARTICLE 6
                                 GRANT OF AWARDS

         6.1   IN GENERAL. The grant of an Award shall be authorized by the
Committee and shall be evidenced by an Award Agreement setting forth the
Incentive or Incentives being granted, the total number of shares of Common
Stock subject to the Incentive(s), the Option Price (if applicable), the Award
Period, the Date of Grant, and such other terms, provisions, limitations, and
performance objectives, as are approved by the Committee, but not inconsistent
with the Plan. The Company shall execute an Award Agreement with a Participant
after the Committee approves the issuance of an Award. Any Award granted
pursuant to this Plan must be granted within ten (10) years of the date of
adoption of this Plan. The Plan shall be submitted to the Company's stockholders
for approval; however, the Committee may grant Awards under the Plan prior to
the time of stockholder approval. Any such Award granted prior to such
stockholder approval shall be made subject to such stockholder approval. The
grant of an Award to a Participant shall not be deemed either to entitle the
Participant to, or to disqualify the Participant from, receipt of any other
Award under the Plan.

                                                                        PAGE 6
<PAGE>
                                                                   EXHIBIT 10.9

         6.2   MAXIMUM ISO GRANTS. The Committee may not grant Incentive Stock
Options under the Plan to any Employee which would permit the aggregate Fair
Market Value (determined on the Date of Grant) of the Common Stock with respect
to which Incentive Stock Options (under this and any other plan of the Company
and its Subsidiaries) are exercisable for the first time by such Employee during
any calendar year to exceed $100,000. To the extent any Stock Option granted
under this Plan which is designated as an Incentive Stock Option exceeds this
limit or otherwise fails to qualify as an Incentive Stock Option, such Stock
Option shall be a Non-qualified Stock Option.

                                    ARTICLE 7
                                  OPTION PRICE

         The Option Price for any share of Common Stock which may be purchased
under a Stock Option shall be at least one hundred percent (100%) of the Fair
Market Value of the share on the Date of Grant. If an Incentive Stock Option is
granted to an Employee who owns or is deemed to own (by reason of the
attribution rules of Section 424(d) of the Code) more than ten percent (10%) of
the combined voting power of all classes of stock of the Company (or any parent
or Subsidiary), the Option Price shall be at least one hundred and ten percent
(110%) of the Fair Market Value of the Common Stock on the Date of Grant.

                                    ARTICLE 8
                              AWARD PERIOD; VESTING

         8.1   AWARD PERIOD. Subject to the other provisions of this Plan, the
Committee may, in its discretion, provide that an Incentive may not be exercised
in whole or in part for any period or periods of time or beyond any date
specified in the Award Agreement. Except as provided in the Award Agreement, an
Incentive may be exercised in whole or in part at any time during its term. The
Award Period for an Incentive shall be reduced or terminated upon Termination of
Service in accordance with this ARTICLE 8 AND ARTICLE 9. No Incentive granted
under the Plan may be exercised at any time after the end of its Award Period.
No portion of any Incentive may be exercised after the expiration of ten (10)
years from its Date of Grant. However, if an Employee owns or is deemed to own
(by reason of the attribution rules of Section 424(d) of the Code) more than ten
percent (10%) of the combined voting power of all classes of stock of the
Company (or any parent or Subsidiary) and an Incentive Stock Option is granted
to such Employee, the term of such Incentive Stock Option (to the extent
required by the Code at the time of grant) shall be no more than five (5) years
from the Date of Grant.

         8.2   VESTING. The Committee, in its sole discretion, may determine
that an Incentive will be immediately exercisable, in whole or in part, or
that all or any portion may not be exercised until a date, or dates,
subsequent to its Date of Grant, or until the

                                                                        PAGE 7
<PAGE>
                                                                   EXHIBIT 10.9

occurrence of one or more specified events, subject in any case to the terms of
the Plan. Subsequent to the Date of Grant, the Committee may, in its sole
discretion, accelerate the date on which all or any portion of an Incentive may
be exercised.

                                    ARTICLE 9
                             TERMINATION OF SERVICE

         9.1   DEATH. Upon the death of a Participant, then any and all Awards
held by the Participant that are not yet exercisable as of the date of the
Participant's death shall be fully vested as of the date of death, and shall be
exercisable by that Participant's legal representatives, legatees or
distributees for a period of the lesser of (a) the remainder of the term of the
Award or (b) 180 days following the date of the Participant's death. Any portion
of an Award not exercised upon the expiration of the periods specified in (a) or
(b) shall be null and void.

         9.2   DISABILITY. If a Participant's employment relationship is
terminated by reason of the Participant's Disability, then the portion, if any,
of any and all Awards held by the Participant that are not yet exercisable as of
the date of that termination for Disability shall become null and void as of the
date of termination; provided, however, that the portion, if any, of any and all
Awards held by the Participant that are exercisable as of the date of that
termination shall survive the termination for the lesser of (a) the original
term of the Award and (b) 180 days following the date of termination, and the
Award shall be exercisable by the Participant, his guardian, or his legal
representative.

         9.3   TERMINATION FOR OTHER REASONS. If a Participant's employment
terminates or if a Participant's service as a director terminates for reasons
other than Death, Disability or Retirement, then the portion, if any, of any and
all Awards held by the Participant that are not yet exercisable as of the date
of that termination shall become null and void as of the date of termination;
provided, however, that the portion, if any, of any and all Awards held by the
Participant that are exercisable as of the date of that termination shall be
exercisable for the lesser of (a) the remainder of the term of the Award or (b)
90 days following the date of termination.

         9.4   LEAVE OF ABSENCE. With respect to an Award, the Committee may, in
its sole discretion, determine that any Participant who is on leave of absence
for any reason will be considered to still be in the employ of the Company for
vesting and other purposes.

                                   ARTICLE 10
                              EXERCISE OF INCENTIVE

                                                                        PAGE 8
<PAGE>
                                                                   EXHIBIT 10.9

         10.1  IN GENERAL. A vested Incentive may be exercised during its Award
Period, subject to limitations and restrictions set forth therein and in ARTICLE
9. A vested Incentive may be exercised at such times and in such amounts as
provided in this Plan and the applicable Award Agreement, subject to the terms,
conditions, and restrictions of the Plan.

         In no event may an Incentive be exercised or shares of Common Stock be
issued pursuant to an Award if a necessary listing or quotation of the shares of
Common Stock on a stock exchange or inter-dealer quotation system or any
registration under state or federal securities laws required under the
circumstances has not been accomplished. No Incentive may be exercised for a
fractional share of Common Stock. The granting of an Incentive shall impose no
obligation upon the Participant to exercise that Incentive.

         STOCK OPTIONS.  Subject to such administrative regulations as the
Committee may from time to time adopt, a Stock Option may be exercised by the
delivery of written notice to the Company setting forth the number of shares of
Common Stock with respect to which the Stock Option is to be exercised and the
date of exercise thereof (the "EXERCISE DATE"), which shall be at least three
(3) days after giving such notice unless an earlier time shall have been
mutually agreed upon. On the Exercise Date, the Participant shall deliver to the
Company consideration with a value equal to the total Option Price of the shares
to be purchased, payable as follows: (a) cash, check, bank draft, or money order
payable to the order of the Company, (b) Common Stock owned by the Participant
on the Exercise Date, valued at its Fair Market Value on the Exercise Date,
and/or (c) by delivery to the Company or its designated agent of an executed
irrevocable option exercise form together with irrevocable instructions from the
Participant to a broker or dealer, reasonably acceptable to the Company, to sell
certain of the shares of Common Stock purchased upon exercise of the Stock
Option or to pledge such shares as collateral for a loan and promptly deliver to
the Company the amount of sale or loan proceeds necessary to pay such purchase
price.

         Upon payment of all amounts due from the Participant, the Company shall
cause certificates for the Common Stock then being purchased to be delivered as
directed by the Participant (or the person exercising the Participant's Stock
Option in the event of his death or Disability) at its principal business office
promptly after the Exercise Date. The obligation of the Company to deliver
shares of Common Stock shall, however, be subject to the condition that if at
any time the Committee shall determine in its discretion that the listing,
registration, or qualification of the Stock Option or the Common Stock upon any
securities exchange or inter-dealer quotation system 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 Stock
Option or the issuance or purchase of shares of Common Stock thereunder, the
Stock Option may not be exercised in whole or in part unless such listing,
registration, qualification, consent, or approval shall have been effected or
obtained free of any conditions not acceptable to the Committee.

                                                                        PAGE 9
<PAGE>
                                                                   EXHIBIT 10.9

         10.2  DISQUALIFYING DISPOSITION OF ISO. If shares of Common Stock
acquired upon exercise of an Incentive Stock Option are disposed of by a
Participant prior to the expiration of either two (2) years from the Date of
Grant of such Stock Option or one (1) year from the transfer of shares of Common
Stock to the Participant pursuant to the exercise of such Stock Option, or in
any other disqualifying disposition within the meaning of Section 422 of the
Code, such Participant shall notify the Company in writing of the date and terms
of such disposition. A disqualifying disposition by a Participant shall not
affect the status of any other Stock Option granted under the Plan as an
Incentive Stock Option within the meaning of Section 422 of the Code.

                                   ARTICLE 11
                           AMENDMENT OR DISCONTINUANCE

         Subject to the limitations set forth in this ARTICLE 11, the Board may
at any time and from time to time, without the consent of the Participants,
alter, amend, revise, suspend, or discontinue the Plan in whole or in part.
However, if the Company becomes subject to the provisions of Section 162(m) of
the Code, including any successors to such Section, no amendment which requires
stockholder approval in order for the Plan and Incentives awarded under the Plan
to continue to comply with Section 162(m) of the Code shall be effective unless
such amendment shall be approved by the requisite vote of the stockholders of
the Company entitled to vote thereon. Any such amendment shall, to the extent
deemed necessary or advisable by the committee, be applicable to any outstanding
Incentives theretofore granted under the Plan, notwithstanding any contrary
provisions contained in any stock option agreement. Notwithstanding anything
contained in this Plan to the contrary, unless required by law, no action
contemplated or permitted by this ARTICLE 11 shall adversely affect any rights
of Participants or obligations of the Company to Participants with respect to
any Incentive theretofore granted under the Plan without the consent of the
affected Participant.

                                   ARTICLE 12
                                      TERM

         The Plan shall be effective from the date that this Plan is approved by
the Board. Unless sooner terminated by action of the Board, the Plan will
terminate on March 30, 2008, but Incentives granted before that date will
continue to be effective in accordance with their terms and conditions.

                                   ARTICLE 13
                               CAPITAL ADJUSTMENTS

                                                                       PAGE 10
<PAGE>
                                                                   EXHIBIT 10.9

         If at any time while the Plan is in effect, or Incentives are
outstanding, there shall be any increase or decrease in the number of issued and
outstanding shares of Common Stock resulting from (1) the declaration or payment
of a stock dividend, (2) any recapitalization resulting in a stock split-up,
combination, or exchange of shares of Common Stock, or (3) other increase or
decrease in such shares of Common Stock effected without receipt of
consideration by the Company, then and in such event:

                  (i) An appropriate adjustment shall be made in the maximum
         number of shares of Common Stock then subject to being awarded under
         the Plan and in the maximum number of shares of Common Stock that may
         be awarded to a Participant to the end that the same proportion of the
         Company's issued and outstanding shares of Common Stock shall continue
         to be subject to being so awarded.

                  (ii) Appropriate adjustments shall be made in the number of
         shares of Common Stock and the Option Price thereof then subject to
         purchase pursuant to each such Stock Option previously granted and
         unexercised, to the end that the same proportion of the Company's
         issued and outstanding shares of Common Stock in each such instance
         shall remain subject to purchase at the same aggregate Option Price.

                  Except as otherwise expressly provided herein, the issuance by
         the Company of shares of its capital stock of any class, or securities
         convertible into shares of capital stock of any class, either in
         connection with direct sale or upon the exercise of rights or warrants
         to subscribe therefor, or upon conversion of shares or obligations of
         the Company convertible into such shares or other securities, shall not
         affect, and no adjustment by reason thereof shall be made with respect
         to the number of or Option Price of shares of Common Stock then subject
         to outstanding Stock Options granted under the Plan.

                                                                       PAGE 11

<PAGE>
                                                                   EXHIBIT 10.9

                  Upon the occurrence of each event requiring an adjustment with
         respect to any Incentive, the Company shall mail to each affected
         Participant its computation of such adjustment which shall be
         conclusive and shall be binding upon each such Participant.

                                   ARTICLE 14
                          RECAPITALIZATION, MERGER AND
                        CONSOLIDATION; CHANGE IN CONTROL

                  (a) The existence of this Plan and Incentives granted
         hereunder shall not affect in any way the right or power of the Company
         or its stockholders to make or authorize any or all adjustments,
         recapitalizations, reorganizations, or other changes in the Company's
         capital structure and its business, or any merger or consolidation of
         the Company, or any issue of bonds, debentures, preferred or preference
         stocks ranking prior to or otherwise affecting the Common Stock or the
         rights thereof (or any rights, options, or warrants to purchase same),
         or the dissolution or liquidation of the Company, or any sale or
         transfer of all or any part of its assets or business, or any other
         corporate act or proceeding, whether of a similar character or
         otherwise.

                  (b) Subject to any required action by the stockholders, if the
         Company shall be the surviving or resulting corporation in any merger,
         consolidation or share exchange, any Incentive granted hereunder shall
         pertain to and apply to the securities or rights (including cash,
         property, or assets) to which a holder of the number of shares of
         Common Stock subject to the Incentive would have been entitled.

                  (c) In the event of any merger, consolidation or share
         exchange pursuant to which the Company is not the surviving or
         resulting corporation, there shall be substituted for each share of
         Common Stock subject to the unexercised portions of such outstanding
         Incentives, that number of shares of each class of stock or other
         securities or that amount of cash, property, or assets of the
         surviving, resulting or consolidated company which were distributed or
         distributable to the stockholders of the Company in respect to each
         share of Common Stock held by them, such outstanding Incentives to be
         thereafter exercisable for such stock, securities, cash, or property in
         accordance with their terms. Notwithstanding the foregoing, however,
         all such Incentives may be canceled by the Company as of the effective
         date of any such reorganization, merger, consolidation, share exchange
         or any dissolution or liquidation of the Company by giving notice to
         each holder thereof or his personal representative of its intention to
         do so and by permitting the purchase during the thirty (30) day period
         next preceding such effective date of all of the shares of Common Stock
         subject to such outstanding Incentives.

                                                                       PAGE 12
<PAGE>
                                                                   EXHIBIT 10.9

                  (d) In the event of a Change of Control, then, notwithstanding
         any other provision in this Plan to the contrary, all unmatured
         installments of Incentives outstanding shall thereupon automatically be
         accelerated and exercisable in full. The determination of the Committee
         that any of the foregoing conditions has been met shall be binding and
         conclusive on all parties.

                                   ARTICLE 15
                           LIQUIDATION OR DISSOLUTION

                  In case the Company shall, at any time while any Incentive
         under this Plan shall be in force and remain unexpired, (i) sell all or
         substantially all of its property, or (ii) dissolve, liquidate, or wind
         up its affairs, then each Participant shall be thereafter entitled to
         receive, in lieu of each share of Common Stock of the Company which
         such Participant would have been entitled to receive under the
         Incentive, the same kind and amount of any securities or assets as may
         be issuable, distributable, or payable upon any such sale, dissolution,
         liquidation, or winding up with respect to each share of Common Stock
         of the Company. If the Company shall, at any time prior to the
         expiration of any Incentive, make any partial distribution of its
         assets, in the nature of a partial liquidation, whether payable in cash
         or in kind (but excluding the distribution of a cash dividend payable
         out of earned surplus and designated as such) then in such event the
         Option Prices then in effect with respect to each Stock Option shall be
         reduced, on the payment date of such distribution, in proportion to the
         percentage reduction in the tangible book value of the shares of the
         Company's Common Stock (determined in accordance with generally
         accepted accounting principles) resulting by reason of such
         distribution.

                                   ARTICLE 16
                         INCENTIVES IN SUBSTITUTION FOR
                    INCENTIVES GRANTED BY OTHER CORPORATIONS

                  Incentives may be granted under the Plan from time to time in
         substitution for similar instruments held by employees of a corporation
         who become or are about to become management Employees of the Company
         or any Subsidiary as a result of a merger or consolidation of the
         employing corporation with the Company or the acquisition by the
         Company of stock of the employing corporation. The terms and conditions
         of the substitute Incentives so granted may vary from the terms and
         conditions set forth in this Plan to such extent as the Board at the
         time of grant may deem appropriate to conform, in whole or in part, to
         the provisions of the Incentives in substitution for which they are
         granted.

                                   ARTICLE 17

                                                                       PAGE 13
<PAGE>
                                                                   EXHIBIT 10.9

                            MISCELLANEOUS PROVISIONS

                  17.1  INVESTMENT INTENT. The Company may require that there be
         presented to and filed with it by any Participant under the Plan, such
         evidence as it may deem necessary to establish that the Incentives
         granted or the shares of Common Stock to be purchased or transferred
         are being acquired for investment and not with a view to their
         distribution.

                  17.2  NO RIGHT TO CONTINUED EMPLOYMENT. Neither the Plan nor
         any Incentive granted under the Plan shall confer upon any Participant
         any right with respect to continuance of employment by the Company or
         any Subsidiary.

                  17.3  INDEMNIFICATION OF BOARD AND COMMITTEE. No member of the
         Board or the Committee, nor any officer or Employee of the Company
         acting on behalf of the Board or the Committee, shall be personally
         liable for any action, determination, or interpretation taken or made
         in good faith with respect to the Plan, and all members of the Board or
         the Committee and each and any officer or employee of the Company
         acting on their behalf shall, to the extent permitted by law, be fully
         indemnified and protected by the Company in respect of any such action,
         determination, or interpretation.

                  17.4  EFFECT OF THE PLAN. Neither the adoption of this Plan
         nor any action of the Board or the Committee shall be deemed to give
         any person any right to be granted an Award or any other rights except
         as may be evidenced by an Award Agreement, or any amendment thereto,
         duly authorized by the Committee and executed on behalf of the Company,
         and then only to the extent and upon the terms and conditions expressly
         set forth therein.

                  17.5  COMPLIANCE WITH OTHER LAWS AND REGULATIONS.
         Notwithstanding anything contained herein to the contrary, the Company
         shall not be required to sell or issue shares of Common Stock under any
         Incentive if the issuance thereof would constitute a violation by the
         Participant or the Company of any provisions of any law or regulation
         of any governmental authority or any national securities exchange or
         inter-dealer quotation system or other forum in which shares of Common
         Stock are quoted or traded (including without limitation Section 16 of
         the 1934 Act and Section 162(m) of the Code); and, as a condition of
         any sale or issuance of shares of Common Stock under an Incentive, the
         Committee may require such agreements or undertakings, if any, as the
         Committee may deem necessary or advisable to assure compliance with any
         such law or regulation. The Plan, the grant and exercise of Incentives
         hereunder, and the obligation of the Company to sell and deliver shares
         of Common Stock, shall be subject to all applicable federal and state

                                                                       PAGE 14
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                                                                   EXHIBIT 10.9

         laws, rules and regulations and to such approvals by any government or
         regulatory agency as may be required.

                  17.6  TAX REQUIREMENTS. The Company shall have the right to
         deduct from all amounts hereunder paid in cash or other form, any
         federal, state, or local taxes required by law to be withheld with
         respect to such payments. The Participant receiving shares of Common
         Stock issued under the Plan shall be required to pay the Company the
         amount of any taxes which the Company is required to withhold with
         respect to such shares of Common Stock. Notwithstanding the foregoing,
         in the event of an assignment of a Non-qualified Stock Option pursuant
         to Section 17.7, the Participant who assigns the Non-qualified Stock
         Option shall remain subject to withholding taxes upon exercise of the
         Non-qualified Stock Option by the transferee to the extent required by
         the Code or the rules and regulations promulgated thereunder. Such
         payments shall be required to be made prior to the delivery of any
         certificate representing such shares of Common Stock. Such payment may
         be made in cash, by check, or through the delivery of shares of Common
         Stock owned by the Participant (which may be effected by the actual
         delivery of shares of Common Stock by the Participant or by the
         Company's withholding a number of shares to be issued upon the exercise
         of a Stock Option, if applicable), which shares have an aggregate Fair
         Market Value equal to the required minimum withholding payment, or any
         combination thereof.

                  17.7  ASSIGNABILITY. Incentive Stock Options may not be
         transferred or assigned other than by will or the laws of descent and
         distribution and may be exercised during the lifetime of the
         Participant only by the Participant or the Participant's legally
         authorized representative. The designation by a Participant of a
         beneficiary will not constitute a transfer of the Stock Option. The
         Committee may waive or modify any limitation contained in the preceding
         sentences of this Section 17.7 that is not required for compliance with
         Section 422 of the Code. Unless the Committee provides otherwise, all
         or a portion of a Non-qualified Stock Option to be granted to a
         Participant may be transferred by such Participant to (i) the spouse,
         children or grandchildren of the Participant ("IMMEDIATE FAMILY
         MEMBERS"), (ii) a trust or trusts for the exclusive benefit of one or
         more Immediate Family Members, or (iii) a partnership in which one or
         more Immediate Family Members are the only partners, (iv) an entity
         exempt from federal income tax pursuant to Section 501(c)(3) of the
         Code or any successor provision, or (v) a split interest trust or
         pooled income fund described in Section 2522(c)(2) of the Code or any
         successor provision, PROVIDED THAT (x) there shall be no consideration
         for any such transfer, and (y) subsequent transfers of transferred
         Non-qualified Stock Options shall be prohibited except those by will or
         the laws of descent and distribution or pursuant to a qualified
         domestic relations order as defined in the Code or Title I of the
         Employee Retirement Income Security Act of 1974, as amended. Following

                                                                       PAGE 15
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                                                                   EXHIBIT 10.9

         transfer, any such Non-qualified Stock Option shall continue to be
         subject to the same terms and conditions as were applicable immediately
         prior to transfer, provided that for purposes of ARTICLES 10, 11, 13,
         15 AND 17 hereof the term "PARTICIPANT" shall be deemed to include the
         transferee. The events of Termination of Service shall continue to be
         applied with respect to the original Participant, following which the
         Non-qualified Stock Options shall be exercisable by the transferee only
         to the extent and for the periods specified in the Award Agreement. The
         Committee and the Company shall have no obligation to inform any
         transferee of a Non-qualified Stock Option of any expiration,
         termination, lapse or acceleration of such Option. The Company shall
         have no obligation to register with any federal or state securities
         commission or agency any Common Stock issuable or issued under a
         Nonqualified Stock Option that has been transferred by a Participant
         under this Section 17.7.

                  17.8  USE OF PROCEEDS. Proceeds from the sale of shares of
         Common Stock pursuant to Incentives granted under this Plan shall
         constitute general funds of the Company.

                  A copy of this Plan shall be kept on file in the principal
         office of the Company in Dallas, Texas.

                          * * * * * * * * * * * * * * *

                                                                       PAGE 16
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                                                                   EXHIBIT 10.9

                  IN WITNESS WHEREOF, the Company has caused this instrument to
         be executed as of April 1, 1998 by its duly authorized representative.

                                       OBJECTSPACE, INC.

                                       By: /s/ DAVID NORRIS
                                          ---------------------------------
                                           David Norris, President

                                                                       PAGE 17

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