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                                                                     EXHIBIT 4.4

                                 NETPODIUM INC.
                      1998 STOCK OPTION/STOCK ISSUANCE PLAN

                                    ARTICLE I

                               GENERAL PROVISIONS

       1.     PURPOSE

              This 1998 Stock Option/Stock Issuance Plan is intended to promote
the interests of Netpodium Inc. (the "Corporation") by providing eligible
individuals who are responsible for the management, growth and financial success
of the Corporation or who otherwise render valuable services to the Corporation
with the opportunity to acquire a proprietary interest, or increase their
proprietary interest, in the Corporation and thereby encourage them to remain in
the service of the Corporation.

              Capitalized terms used herein shall have the meanings ascribed to
such terms in Section 6 of this Article I.

       2.     STRUCTURE OF THE PLAN

              The Plan shall be divided into two separate components: the Option
Grant Program specified in Article II and the Stock Issuance Program specified
in Article III. The provisions of Articles I and IV of the Plan shall apply to
both the Option Grant Program and the Stock Issuance Program and shall
accordingly govern the interests of all individuals in the Plan.

       3.     ADMINISTRATION OF THE PLAN

              (a)    The Plan shall be administered by the Board. The Board at
any time may appoint a Committee and delegate to such Committee some or all of
the administrative powers allocated to the Board pursuant to the provisions of
the Plan. 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 at any time may terminate the functions of the Committee and reassume
all powers and authority previously delegated to the Committee.

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              (b)    The Plan Administrator (either the Board or the Committee,
to the extent the Committee is at the time responsible for the administration of
the Plan) 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 the
proper Plan administration and to make such determinations under, and issue such
interpretations of, the Plan and any outstanding option grants or share
issuances 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 outstanding option or share issuance.

       4.     OPTION GRANTS AND SHARE ISSUANCES

              (a)    The persons eligible to receive option grants pursuant to
 the Option Grant Program (each an "Optionee") and/or share issuances under the
Stock Issuance Program (each a "Participant") are limited to the following:

                     (1)    Key employees (including officers and directors) of
the Corporation (or its Parent or Subsidiary corporations, if any) who render
services that contribute to the success and growth of the Corporation (or its
Parent or Subsidiary corporations), or that reasonably may be anticipated to
contribute to the future success and growth of the Corporation (or its Parent or
Subsidiary corporations);

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

                     (3)    Those consultants or independent contractors who
provide valuable services to the Corporation (or its Parent or Subsidiary
corporations, if any).

              (b)    The Plan Administrator shall have full authority to
determine: (i) with respect to the option grants made under the Plan, which
eligible individuals are to receive option grants, 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 at which each
granted option is to become exercisable and the maximum term for which the
option may remain outstanding, and (ii) with respect to share issuances under
the Stock Issuance Program, the number of shares to be issued to each
Participant, the vesting schedule (if any) to be applicable to the issued
shares, and the consideration to be paid by the individual for such shares.

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              (c)    The Plan Administrator shall have the absolute discretion
either to grant options in accordance with Article II of the Plan or to effect
share issuances in accordance with Article III of the Plan.

       5.     STOCK SUBJECT TO THE PLAN

              (a)    The stock issuable under the Plan shall be shares of the
Corporation's authorized but unissued or reacquired Common Stock (the "Common
Stock"). The maximum number of shares that may be issued over the term of the
Plan shall not exceed two million two hundred and fifty thousand (2,250,000)
shares of Common Stock. The total number of shares issuable under the Plan shall
be subject to adjustment from time to time in accordance with the provisions of
Section 5(c).

              (b)    Shares subject to (i) the portion of one or more
outstanding options that are not exercised or surrendered prior to expiration or
termination and (ii) outstanding options canceled in accordance with the
cancellation-regrant provisions of Section 5 of Article II will be available for
subsequent option grants or stock issuances under the Plan. Shares issued under
either the Option Grant Program or the Stock Issuance Program (whether as vested
or unvested shares) that are repurchased by the Corporation shall not be
available for subsequent option grants or stock issuances under the Plan.

              (c)    In the event any change is made to the Common Stock
issuable under the Plan by reason of any stock dividend, stock split,
combination of shares, exchange of shares or other change affecting the
outstanding Common Stock as a class without receipt of consideration, then
appropriate adjustments shall be made to (i) the aggregate number and/or class
of shares issuable under the Plan and (ii) the aggregate number and/or class of
shares and the option 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.

              (d)    Common Stock issuable under the Plan, whether under the
Option Grant Program or the Stock Issuance Program, may be subject to such
restrictions on transfer, repurchase rights or other restrictions as may be
determined by the Plan Administrator.

       6.     DEFINITIONS

              The following definitions shall apply to the respective
capitalized terms used herein:

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              Board means the Board of Directors of Netpodium Inc.

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

              Committee means either the Compensation Committee of the Board or
another committee comprised of two or more members thereof and appointed
pursuant to the Plan to function as the Plan Administrator.

              Corporation means Netpodium Inc., a Washington corporation.

              Corporate Transaction means one or more of the following
transactions:

              (a)    A merger or consolidation in which the Corporation is not
the surviving entity, except for a transaction the principal purpose of which is
to change the state of the Corporation's incorporation,

              (b)    Any reverse merger in which the Corporation is the
surviving entity but in which fifty percent (50%) or more of the Corporation's
outstanding voting stock is transferred to holders different from those who held
the stock immediately prior to such merger, or

              (c)    The sale, transfer or other disposition of all or
substantially all of the assets of the Corporation.

              Employee means an individual who is in the employ of the
Corporation or one or more Parent or Subsidiary corporations. An optionee shall
be considered to be an Employee for so long as such individual remains in the
employ of the Corporation or one or more Parent or Subsidiary corporations,
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.

              Exercise Date shall be the date on which written notice of the
exercise of an outstanding option under the Plan is delivered to the
Corporation. Such notice shall be effected pursuant to a stock purchase
agreement incorporating any repurchase rights or first refusal rights retained
by the Corporation with respect to the Common Stock purchased under the option.

              Fair Market Value of a share of Common Stock on any relevant date
shall be determined in accordance with the following provisions:

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              (a)    If the Common Stock is at the time listed or admitted to
trading 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. If there is no reported sale of Common Stock on such exchange on
the date in question, then the Fair Market Value shall be the closing selling
price on the exchange on the last preceding date for which such quotation
exists.

              (b)    If the Common Stock is not at the time listed or admitted
to trading on any stock exchange but is traded in the over-the-counter market,
the Fair Market Value shall be the mean between the highest bid and the lowest
asked prices (or if such information is available the closing selling price) per
share of Common Stock on the date in question in the over-the-counter market, as
such prices are reported by the National Association of Securities Dealers
through its NASDAQ National Market System or any successor system. If there are
no reported bid and asked prices (or closing selling price) for the Common Stock
on the date in question, then the mean between the highest bid and lowest asked
prices (or closing selling price) on the last preceding date for which such
quotations exist shall be determinative of Fair Market Value.

              (c)    If the Common Stock is at the time neither listed nor
admitted to trading on any stock exchange nor traded in the over-the-counter
market, or if the Plan Administrator determines that the valuation provisions of
subsections (a) and (b) above will not result in a true and accurate valuation
of the Common Stock 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 under the circumstances.

              Incentive Option means an incentive stock option that satisfies
the requirements of Section 422 of the Code.

              Non-Statutory Option means an option not intended to meet the
statutory requirements prescribed for an Incentive Option.

              Parent corporation means any corporation (other than the
Corporation) in an unbroken chain of corporations ending with the Corporation,
provided each such corporation other than the 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.

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

              Plan means this 1998 Stock Option/Stock Issuance Plan.

              Plan Administrator means the Board or the Committee, to the extent
the Committee is responsible for plan administration in accordance with Article
I, Section 3.

              Service means the performance of services for the Corporation or
one or more Parent or Subsidiary corporations by an individual in the capacity
of an Employee, a non-employee member of the board of directors or an
independent consultant or advisor, unless a different meaning is specified in
the option agreement evidencing the option grant, the purchase agreement
evidencing the purchased option shares or the issuance agreement evidencing any
direct stock issuance. An optionee shall be deemed to remain in Service for so
long as such individual renders services to the Corporation or any Parent or
Subsidiary corporation on a periodic basis in the capacity of an Employee, a
non-employee member of the board of directors or an independent consultant or
advisor.

              Subsidiary corporation means any corporation (other than the
Corporation) in an unbroken chain of corporations beginning with the
Corporation, provided each such 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.

              Ten Percent Shareholder means the owner of stock (as determined
under Section 424(d) of the Code) possessing ten percent (10%) or more of the
total combined voting power of all classes of stock of the Corporation or any
Parent or Subsidiary corporation.

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                                   ARTICLE II

                              OPTION GRANT PROGRAM

       1.     TERMS AND CONDITIONS OF OPTIONS

              Options granted pursuant to the Plan shall be authorized by action
of the Plan Administrator and, at the discretion of the Plan Administrator, may
be either Incentive Options or Non-Statutory Options. Each granted option shall
be evidenced by one or more instruments in the form approved by the Plan
Administrator; provided, that each such instrument shall comply with and
incorporate the terms and conditions specified below. In addition, each
instrument evidencing an Incentive Option shall be subject to the applicable
provisions of Section 2 of this Article II. The initial grant of options is
attached hereto as Schedule I.

              (a)    Option Price.

                     (1)    The option price per share shall be fixed by the
Plan Administrator.

                     (2)    The option price shall become immediately due upon
exercise of the option, and subject to the provisions of Article IV, Section 2,
shall be payable in cash or check drawn to the Corporation's order. Should the
Corporation's outstanding Common Stock be registered under Section 12(g) of the
Securities Exchange Act of 1934, as amended (the "1934 Act") at the time the
option is exercised, then the option price may also be paid as follows:

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

                            (B)    Through a special sale and remittance
procedure pursuant to which the Optionee is to (i) provide irrevocable written
instructions to a designated brokerage firm to effect the immediate sale of the
purchased shares and remit to the Corporation, out of the sale proceeds, an
amount sufficient to cover the aggregate option price payable for the purchased
shares plus all applicable Federal and State income and employment taxes
required to be withheld by the Corporation by reason of such purchase and (ii)
concurrently provide written directives to the Corporation to deliver the
certificates for the purchased shares directly to such brokerage firm in order
to effect the sale transaction.

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              (b)    Term and Exercise of Options. Each option granted under the
Plan 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 notice of grant and stock option agreement evidencing such option.
No option granted under the Plan, however, shall have a term in excess of ten
(10) years from the grant date. During the lifetime of the Optionee, the option
shall be exercisable only by the Optionee and shall not be assignable or
transferable by the Optionee otherwise than by will or by the laws of descent
and distribution following the Optionee's death.

              (c)    Termination of Service.

                     (1)    Should the Optionee cease to remain in Service for
any reason (including death or Permanent Disability) while holding one or more
outstanding options under the Plan, then except to the extent otherwise provided
pursuant to Section 6 of this Article II, each such option shall remain
exercisable for the limited period of time (not to exceed twelve (12) months
after the date of such cessation of Service) specified by the Plan Administrator
in the option agreement. In no event, however, shall any such option be
exercisable after the specified expiration date of the option term. During such
limited period of exercisability, the option may not be exercised for more than
that number of shares (if any) for which such option is exercisable on the date
of the Optionee's cessation of Service. Upon the expiration of such period or
(if earlier) upon the expiration of the option term, the option shall terminate
and cease to be exercisable.

                     (2)    Any option granted to an Optionee under the Plan and
exercisable in whole or in part on the date of the Optionee's death may be
subsequently exercised by the personal representative of the Optionee's estate
or by the person or persons to whom the option is transferred pursuant to the
Optionee's will or in accordance with the laws of descent and distribution. The
maximum number of shares for which such option may be exercised shall be limited
to the number of shares (if any) for which the option is exercisable on the date
of the Optionee's cessation of Service. Any such exercise of the option must be
effected prior to the earlier of the first anniversary of the date of the
Optionee's death or the specified expiration date of the option term. Upon the
occurrence of either such event, the option shall terminate and cease to be
exercisable.

                     (3)    Notwithstanding Subsections (1) and (2) above, the
Plan Administrator shall have discretion, exercisable either at the time the
option is granted or at the time the Optionee ceases Service, to allow one or
more outstanding options held by the Optionee to be exercised, during the
limited period of exercisability following the Optionee's

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cessation of Service, not only with respect to the number of shares for which
the option is exercisable at the time of the Optionee's cessation of Service but
also with respect to one or more subsequent installments of purchasable shares
for which the option otherwise would have become exercisable had such cessation
of Service not occurred.

                     (4)    Notwithstanding any provision of this Article II or
any other provision of this Plan to the contrary, any options granted under this
Plan shall terminate as of the date the Optionee ceases to be in the Service of
the Corporation if the Optionee was terminated for "cause" or could have been
terminated for "cause." If the Optionee has an employment or consulting
agreement with the Corporation, the term "cause" shall have the meaning given
that term in such employment or consulting agreement. If the Optionee does not
have an employment or consulting agreement with the Corporation, or if such
agreement does not define the term "cause," the term "cause" shall mean: (A)
misconduct or dishonesty that materially adversely affects the Corporation,
including without limitation (i) an act materially in conflict with the
financial interests of the Corporation, (ii) an act that could damage the
reputation or customer relations of the Corporation, (iii) an act that could
subject the Corporation to liability, (iv) an act constituting sexual harassment
or other violation of the civil rights of coworkers, (v) failure to obey any
lawful instruction of the Board or any officer of the Corporation and (vi)
failure to comply with, or perform any duty required under, the terms of any
confidentiality, inventions or noncompetition agreement the Optionee may have
with the Corporation, or (B) acts constituting the unauthorized disclosure of
any of the trade secrets or confidential information of the Corporation, unfair
competition with the Corporation or the inducement of any customer of the
Corporation to breach any contract with the Corporation. The right to exercise
any option shall be suspended automatically during the pendency of any
investigation by the Board or its designee, and/or any negotiations by the Board
or its designee and the Optionee, regarding any actual or alleged act or
omission by the Optionee of the type described in this section.

              (d)    Shareholder Rights. An Optionee shall have none of the
rights of a shareholder with respect to any shares covered by the option until
such Optionee shall have exercised the option and paid the option price.

              (e)    Repurchase Rights. The shares of Common Stock issued under
the Plan shall be subject to certain repurchase rights of the Corporation in
accordance with the following provisions:

                     (1)    (A) The Plan Administrator shall have the discretion
to authorize the issuance of unvested shares of Common Stock under the Plan.
Should the Optionee cease Service or should the Corporation consummate a
Corporate Transaction

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while the Optionee is holding such unvested shares, the Corporation shall have
the right to repurchase, at the option price paid per share, all or (at the
discretion of the Corporation and with the consent of the Optionee) any portion
of those such shares The terms and conditions 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 an instrument evidencing such right.

                            (B)    The repurchase right shall be assignable to
any person or entity selected by the Corporation, including one or more of the
Corporation's shareholders. If the selected assignee is other than a Parent or
Subsidiary corporation, however, then the assignee must make a cash payment to
the Corporation, upon the assignment of the repurchase right, in an amount equal
to the amount by which the Fair Market Value of the unvested shares at the time
subject to the assigned right exceeds the aggregate repurchase price payable for
such unvested shares.

                            (C)    Upon the occurrence of a Corporate
Transaction, the Plan Administrator may, at its sole discretion, (i) terminate
all or any outstanding repurchase rights under the Plan and thereby cause the
shares subject to such rights to vest immediately in full, (ii) arrange for all
or any of the repurchase rights to be assigned to the successor corporation (or
parent thereof) in connection with the Corporate Transaction or (iii) exercise
the Corporation's right to repurchase any unvested shares contemporaneously with
the consummation of the Corporate Transaction if such right is provided in the
instrument pursuant to which such unvested shares were issued.

                     (2)    Until such time as the Corporation's outstanding
shares of Common Stock are first registered under Section 12(g) of the 1934 Act,
the Corporation shall have the right of first refusal with respect to any
proposed sale or other disposition by the Optionee (or any successor in interest
by reason of purchase, gift or other mode of transfer) of any shares of Common
Stock issued under the Plan. Such right of first refusal shall be exercisable by
the Corporation (or its assignees) in accordance with the terms and conditions
established by the Plan Administrator and set forth in the instrument evidencing
such right.

       2.     INCENTIVE OPTIONS

              The terms and conditions specified below shall be applicable to
all Incentive Options granted under the Plan. Incentive Options may be granted
only to individuals who are Employees. Options that are specifically designated
as Non-Statutory Options when issued under the Plan shall not be subject to the
following terms and conditions.

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              (a)    Option Price. The option price per share of the Common
Stock subject to an Incentive Option shall in no event be less than one hundred
percent (100%) of the Fair Market Value of a share of Common Stock on the grant
date; provided, if the individual to whom the option is granted is at the time a
Ten Percent Shareholder, then the option price per share shall not be less than
one hundred ten percent (110%) of the Fair Market Value of the Common Stock on
the grant date.

              (b)    Dollar Limitation. The aggregate Fair Market Value
(determined as of the respective date or dates of grant) of the Common Stock for
which one or more options granted to any Employee under this Plan (or any other
option plan of the Corporation or any Parent or Subsidiary corporation) may for
the first time become exercisable as incentive stock options under the Federal
tax laws during any one calendar year shall not exceed the sum of one hundred
thousand dollars ($100,000). To the extent the Employee holds two or more such
options which become exercisable for the first time in the same calendar year,
the foregoing limitation on the exercisability thereof as Incentive Options
under the Federal tax laws shall be applied on the basis of the order in which
such options are granted.

              (c)    Option Term for Ten Percent Shareholder. No option granted
to a Ten Percent Shareholder shall have a term in excess of five (5) years from
the grant date.

                     Except as modified by the preceding provisions of this
Section 2, all the provisions of the Plan shall be applicable to the Incentive
Options granted hereunder.

       3.     CORPORATE TRANSACTION

              (a)    In connection with any Corporate Transaction, the Plan
Administrator, in its sole discretion, may (i) accelerate each or any
outstanding option under the Plan so that each or any such option, immediately
prior to the specified effective date for such Corporate Transaction, shall
become fully exercisable with respect to the total number of shares of Common
Stock at the time subject to such option and may be exercised for all or any
portion of such shares, (ii) arrange for each or any outstanding option either
to be assumed by the successor corporation or parent thereof or to be replaced
with a comparable option to purchase shares of the capital stock of the
successor corporation or parent thereof, (iii) arrange for the option to be
replaced by a comparable cash incentive program of the successor corporation
based on the option spread (the amount by which the Fair Market Value of the
shares of Common Stock subject at the time to the option exceeds the option
price payable for such shares), or (iv) take none of the actions described in
clauses (i), (ii) or (iii) above and allow the option to terminate as provided
in Section 4(b) below. The

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determination of comparability under clauses (ii) and (iii) above shall be made
by the Plan Administrator, and such determination shall be final, binding and
conclusive.

              (b)    In the event of any Corporate Transaction, each option
outstanding under the Plan shall terminate upon the consummation of such
Corporate Transaction and cease to be exercisable, unless the Plan Administrator
takes one of the actions set forth in Section 3(a) above.

              (c)    If the outstanding options under the Plan are assumed by
the successor corporation (or parent thereof) in the Corporate Transaction or
are otherwise to continue in effect following such Corporate Transaction, then
each such assumed or continuing option, immediately after such Corporate
Transaction, shall be appropriately adjusted to apply and pertain to the number
and class of securities or other property that would have been issuable to the
option holder, in consummation of the Corporate Transaction, had the option been
exercised immediately prior to such Corporate Transaction. Appropriate
adjustments shall also be made to the option price payable per share, provided
the aggregate option price payable for such securities or other property shall
remain the same. In addition, the number and class of securities or other
property available for issuance under the Plan following the consummation of
such Corporate Transaction shall be appropriately adjusted.

              (d)    The exercisability as incentive stock options under the
Federal tax laws of any options accelerated in connection with the Corporate
Transaction shall remain subject to the applicable dollar limitation of
Subsection 2(b) of this Article II.

              (e)    The grant of options under this 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.

       4.     CANCELLATION AND NEW GRANT 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 Optionees, the
cancellation of any or all outstanding options under the Plan and to grant in
substitution therefor new options under the Plan covering the same or different
numbers of shares of Common Stock but having, in the case of an Incentive
Option, an option price per share not less than one hundred percent (100%) of
such Fair Market Value per share of Common Stock on the new grant date, or, in
the case of a Ten Percent Shareholder, not less than one hundred and ten percent
(110%) of such Fair Market Value.

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       5.     EXTENSION OF EXERCISE PERIOD

              The Plan Administrator shall have full power and authority to
extend (either at the time the option is granted or at any time that the option
remains outstanding) the period of time for which the option is to remain
exercisable following the Optionee's cessation of Service, from the limited
period set forth in the option agreement, to such greater period of time as the
Plan Administrator may deem appropriate under the circumstances. In no event,
however, shall such option be exercisable after the specified expiration date of
the option term.

                                   ARTICLE III

                             STOCK ISSUANCE PROGRAM

       1.     TERMS AND CONDITIONS OF STOCK ISSUANCES

              Shares of Common Stock shall be issuable under the Stock Issuance
Program through direct and immediate issuances without any intervening stock
option grants. Each such stock issuance shall be evidenced by a Stock Issuance
Agreement ("Issuance Agreement") that complies with the terms and conditions of
this Article III.

              (a)    Issue Price.

                     (1)    Shares may, in the absolute discretion of the Plan
Administrator, be issued for consideration with a value less than one-hundred
percent (100%) of the Fair Market Value of the issued shares.

                     (2)    Shares shall be issued under the Plan for such
consideration as the Plan Administrator shall from time to time determine,
provided that in no event shall shares be issued for consideration other than:

                            (A)    Cash or check payable to the Corporation,

                            (B)    A promissory note in favor of the
Corporation, which may be subject to cancellation by the Corporation in whole or
in part upon such terms and conditions as the Plan Administrator shall specify,
or

                            (C)    Services rendered.

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              (b)    Vesting Schedule.

                     (1)    In the discretion of the Plan Administrator, the
interest of a Participant in the shares of Common Stock issued to such
Participant under the Plan may be fully and immediately vested upon issuance or
may vest in one or more installments in accordance with the vesting provisions
of Subsection (b)(4) below. Except as otherwise provided in Subsection (b)(2),
the Participant may not transfer any issued shares in which such Participant
does not have a vested interest. Accordingly, all unvested shares issued under
the Plan shall bear the restrictive legend specified in Article IV, Section 1
until such legend is removed in accordance with such section. Regardless of
whether or not a Participant's interest in such shares is vested, such
Participant shall be entitled to exercise all the rights of a shareholder with
respect to the shares of Common Stock issued to Participant hereunder, including
the right to vote such shares and to receive any cash dividends or other
distributions paid or made with respect to such shares. Any new, additional or
different shares of stock or other property (including money paid other than as
a regular cash dividend) that the holder of unvested Common Stock may have the
right to receive with respect to such unvested shares by reason of a stock
dividend, stock split, reclassification or other change affecting the
outstanding Common Stock as a class without the Corporation's receipt of
consideration therefor shall be issued subject to (i) the same vesting
requirements under Subsection (b)(4) applicable to the unvested Common Stock and
(ii) such escrow arrangements as the Plan Administrator shall deem appropriate.

                     (2)    As used in this Article III, the term "transfer"
shall include (without limitation) any sale, pledge, encumbrance, gift or other
disposition of such shares. A Participant shall have the right to make a gift of
unvested shares acquired under the Stock Issuance Program to Participant's
spouse, parents or issue or to a trust established for such spouse, parents or
issue, provided the donee of such shares delivers to the Corporation, at the
time of such donee's acquisition of the gifted shares, a written agreement to be
bound by all the provisions of the Plan and the Issuance Agreement executed by
the Participant.

                     (3)    Should the Participant cease Service for any reason
while Participant's interest in the Common Stock remains unvested, then the
Corporation shall have the right to repurchase, at the original purchase price
paid by the Participant, all or (at the discretion of the Corporation and with
the consent of the Participant) any portion of the shares in which the
Participant is not at the time vested, and the Participant shall thereafter
cease to have any further shareholder rights with respect to the repurchased
shares.

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                     (4)    Any shares of Common Stock issued under the Stock
Issuance Program that are not vested at the time of such issuance shall vest in
one or more installments thereafter. The elements of the vesting schedule,
specifically, the performance or service objectives to be completed or achieved,
the number of installments in which the shares are to vest, the interval or
intervals (if any) that are to lapse between installments and the effect that
death, Permanent Disability or other event designated by the Plan Administrator
is to have upon the vesting schedule, shall be determined by the Plan
Administrator and specified in the Issuance Agreement.

                     (5)    In its discretion, the Plan Administrator may elect
not to exercise, in whole or in part, its repurchase rights with respect to any
unvested Common Stock or other assets that would otherwise at the time be
subject to repurchase pursuant to the provisions of Subsection (b)(3) above.
Such an election shall result in the immediate vesting of the Participant's
interest in the shares of Common Stock as to which the election applies.

                     (6)    No shares of Common Stock or other assets shall be
issued or delivered under this Plan unless and until, in the opinion of counsel
for the Corporation (or its successor in the event of any Corporate
Transaction), there shall have been compliance with all applicable requirements
of the securities exchange on which stock of the same class is then listed and
all other requirements of Federal and state law or of any regulatory bodies
having jurisdiction over such issuance and delivery.

              (c)    Right of First Refusal. The Plan Administrator may also in
its discretion establish as a term and condition of the issuance of one or more
shares of Common Stock under the Stock Issuance Program that the Corporation
shall have a right of first refusal with respect to any proposed disposition by
the Participant (or any successor in interest by reason of purchase, gift or
other mode of transfer) of one or more shares of such Common Stock. Such right
of first refusal shall be exercisable by the Corporation (or its assignees) in
accordance with the terms and conditions specified in the instrument evidencing
such right.

                                       15
<PAGE>   16
       2.     CORPORATE TRANSACTION

              Upon the occurrence of a Corporate Transaction, the Plan
Administrator, in its discretion, may (i) terminate all or any outstanding
repurchase rights under this Article III of the Plan and thereby cause the
shares subject to such rights to vest immediately in full, (ii) arrange for all
or any of the repurchase rights to be assigned to the successor corporation (or
parent thereof) in connection with the Corporate Transaction or (iii) exercise
the Corporation's right to repurchase any unvested shares contemporaneously with
the consummation of the Corporate Transaction if such right is provided in the
Issuance Agreement pursuant to which such unvested shares were issued.

                                   ARTICLE IV

                                  MISCELLANEOUS

       1.     STOCK LEGENDS.

              Each certificate representing shares of Common Stock (or other
securities) issued pursuant to the Plan shall bear restrictive legends
substantially as follows:

              (a)    "The shares represented by this certificate
                     have not been registered under the
                     Securities Act of 1933. The shares may not
                     be sold, offered for sale, pledged or
                     hypothecated in the absence of an effective
                     registration statement for the shares under
                     said Act and laws or an opinion of counsel
                     satisfactory to the Corporation that such
                     registration is not required with respect to
                     such sale or offer."

              (b)    "This certificate and the shares represented
                     hereby may not be sold, assigned,
                     transferred, encumbered, or in any manner
                     disposed of except in conformity with the
                     terms of written agreements between the
                     Company and the registered holder of the
                     shares (or the predecessor in interest to
                     the shares). Upon written request, the
                     Company will furnish without charge a copy
                     of such agreements to the holder hereof."

       2.     LOANS

              (a)    The Plan Administrator, in its discretion, may assist any
Optionee or Participant (including an Optionee or Participant who is an officer
or director of the Corporation) in the exercise of one or more options granted
to such Optionee under the

                                       16
<PAGE>   17

Article II Option Grant Program or the purchase of one or more shares issued to
such Participant under the Article III Stock Issuance Program, including the
satisfaction of any Federal and State income and employment tax obligations
arising therefrom, by

                     (1)    Authorizing the extension of a loan from the
Corporation to such Optionee or Participant, or

                     (2)    Permitting the Optionee or Participant to pay the
option price or purchase price for the purchased Common Stock in installments
over a period of years.

              (b)    The terms of any loan or installment method of payment
(including the interest rate and terms of repayment applicable thereto) shall be
established by the Plan Administrator. Loans or installment payments may be
granted with or without security or collateral; provided that any loan made to a
consultant or other non-employee advisor must be secured by property other than
the purchased shares of Common Stock. In all events the maximum credit available
to each Optionee or Participant may not exceed the sum of (i) the aggregate
option price or purchase price payable for the purchased shares (less the par
value of such shares rounded up to the nearest whole cent) plus (ii) any Federal
and State income and employment tax liability incurred by the Optionee or
Participant in connection with such exercise or purchase.

              (c)    The Plan Administrator, in its discretion, may determine
that one or more loans extended under the financial assistance program shall be
subject to forgiveness by the Corporation in whole or in part upon such terms
and conditions as the Board deems appropriate.

       3.     AMENDMENT OF THE PLAN AND AWARDS

              (a)    The Board shall have complete and exclusive power and
authority to amend or modify the Plan in any or all respects whatsoever;
provided, that no such amendment or modification shall adversely affect the
rights and obligations of an Optionee with respect to options at the time
outstanding under the Plan, nor adversely affect the rights of any Participant
with respect to Common Stock issued under the Plan prior to such action, unless
the Optionee or Participant consents to such amendment. In addition, the Board
shall not, without the approval of the Corporation's shareholders, amend the
Plan to (i) materially increase the maximum number of shares issuable under the
Plan (except for permissible adjustments under Article I, Section 5(c)), (ii)
materially increase the benefits accruing to individuals who participate in the
Plan, or (iii) materially modify the eligibility requirements for participation
in the Plan.

                                       17
<PAGE>   18

              (b)    Options to purchase shares of Common Stock may be granted
under the Option Grant Program and shares of Common Stock may be issued under
the Stock Issuance Program, which in both instances are in excess of the number
of shares then available for issuance under the Plan, provided any excess shares
actually issued under the Option Grant Program or the Stock Issuance Program are
held in escrow until the Corporation's shareholders approve an amendment that
sufficiently increases 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 initial excess stock option grants or
direct stock issuances are made, then any unexercised options representing such
excess shall terminate and cease to be exercisable and the Corporation shall
promptly refund to the Optionees and Participants the option 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) thereon for the period
the shares were held in escrow.

       4.     EFFECTIVE DATE AND TERM OF PLAN

              (a)    The Plan shall become effective when adopted by the Board,
but no option granted under the Plan shall become exercisable, and no shares
shall be issuable under the Stock Issuance Program, unless and until the Plan
shall have been approved by the Corporation's shareholders. This Plan was
adopted by the Board on January 24, 1998. 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 no
further options shall be granted and no shares shall be issued under the Stock
Issuance Program. Subject to such limitation, the Plan Administrator may grant
options under the Plan at any time after the effective date and before the date
fixed herein for termination of the Plan.

              (b)    The Plan shall terminate upon the earlier of (i) ten years
after the adoption of the Plan or (ii) the date on which all shares available
for issuance under the Plan have been issued or canceled pursuant to the
exercise of options granted under Article II or the issuance of shares under
Article III. If the date of termination is determined under clause (i) above,
then no options outstanding on such date under Article II and no shares issued
and outstanding on such date under Article III shall be affected by the
termination of the Plan, and such securities shall thereafter continue to have
force and effect in accordance with the provisions of the stock option
agreements evidencing such Article II options and the stock purchase agreements
evidencing the issuance of such Article III shares.

                                       18
<PAGE>   19

       5.     USE OF PROCEEDS

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

       6.     WITHHOLDING

              The Corporation's obligation to deliver shares upon the exercise
of any options granted under Article II or upon the purchase of any shares
issued under Article III shall be subject to the satisfaction of all applicable
Federal, state and local income and employment tax withholding requirements.

       7.     REGULATORY APPROVALS

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

                                       19<PAGE>   1
                                                                     EXHIBIT 4.4

                        FIRST AMENDMENT TO THE 1996 STOCK
                           OPTION PLAN OF INTERVU INC.

         InterVU Inc., a Delaware corporation (the "Company"), by resolution of
its Board of Directors (the "Board"), adopted the 1996 Stock Option Plan of
InterVU Inc. (the "Plan") for the purpose of furthering the long-term stability
and financial success of the Company by retaining key employees, directors and
consultants who are able to contribute to the financial success of the Company.

         In order to improve the Board's ability to interpret and administer the
Plan, and to clarify the Board's power to take actions under the Plan with
respect to Outside Directors which could not be taken by the Committee (as
defined in the Plan) consistent with Rule 16b-3, the Board has approved the
amendment set forth herein. On and after the date hereof, each reference in the
Plan to the "Plan" shall mean the Plan as amended hereby. Except as specifically
amended above, the Plan shall remain in full force and effect. This amendment,
together with the Plan, constitute the Plan in its entirety.

         The following sentence shall be added to the end of Section 2.2 of the
Plan:

         "The Board may at any time and from time to time exercise any and all
         rights and duties of the Committee under the Plan except with respect
         to matters which under Rule 16b-3 or Section 162(m) of the Code, or any
         regulations or rules issued thereunder, are required to be determined
         in the sole discretion of the Committee."

Executed at San Diego, California this 5th day of April, 2000.

                                             INTERVU INC.

                                             By: /s/ Kenneth L. Ruggiero
                                                 ------------------------------
                                             Name: Kenneth L. Ruggiero
                                             Title: Secretary

<PAGE>   2

                               1996 STOCK PLAN OF
                                  INTERVU INC.
                      (Adopted Effective December 8, 1996)

                                TABLE OF CONTENTS

ARTICLE 1. INTRODUCTION ...................................................   1
ARTICLE 2. ADMINISTRATION .................................................   1
   2.1  Committee Composition .............................................   1
   2.2  Committee Responsibilities ........................................   1
ARTICLE 3. SHARES AVAILABLE FOR GRANTS ....................................   2
   3.1  Basic Limitation ..................................................   2
   3.2  Additional Shares .................................................   2
ARTICLE 4. ELIGIBILITY ....................................................   2
   4.1  General Rules .....................................................   2
   4.2  Outside Directors .................................................   2
   4.3  Incentive Stock Options ...........................................   2
ARTICLE 5. OPTIONS ........................................................   2
   5.1  Stock Option Agreement ............................................   2
   5.2  Number of Shares ..................................................   3
   5.3  Exercise Price ....................................................   3
   5.4  Exercisability and Term ...........................................   3
   5.5  Effect of Change in Control .......................................   3
   5.6  Modification or Assumption of Options .............................   3
ARTICLE 6. PAYMENT FOR OPTION SHARES ......................................   4
   6.1  General Rule ......................................................   4
   6.2  Surrender of Stock ................................................   4
   6.3  Exercise/Sale .....................................................   4
   6.4  Exercise/Pledge ...................................................   4
   6.5  Promissory Note ...................................................   4
   6.6  Other Forms of Payment ............................................   4
ARTICLE 7. RESTRICTED SHARES ..............................................   4
   7.1  Time, Amount and Form of Awards ...................................   4
   7.2  Payment for Awards ................................................   5
   7.3  Vesting Conditions ................................................   5
ARTICLE 8. VOTING AND DIVIDEND RIGHTS .....................................   5
ARTICLE 9. PROTECTION AGAINST DILUTION ....................................   5
   9.1  Adjustments .......................................................   5
   9.2  Reorganizations ...................................................   6
ARTICLE 10. AWARDS UNDER OTHER PLANS ......................................   6
ARTICLE 11. PAYMENT OF DIRECTOR'S FEES IN SECURITIES ......................   6
  11.1  Effective Date ....................................................   6
  11.2  Elections to Receive NSOs or Restricted Shares ....................   6
  11.3  Number and Terms of NSOs or Restricted Shares .....................   6
ARTICLE 12. LIMITATION ON RIGHTS ..........................................   6
  12.1  Retention Rights ..................................................   6
  12.2  Stockholders' Rights ..............................................   6
  12.3  Regulatory Requirements ...........................................   7

<PAGE>   3

ARTICLE 13. LIMITATION ON PAYMENTS ........................................   7
  13.1  Basic Rule ........................................................   7
  13.2  Reduction of Payments .............................................   7
  13.3  Overpayments and Underpayments ....................................   8
  13.4  Related Corporations ..............................................   8
ARTICLE 14. WITHHOLDING TAXES .............................................   8
  14.1  General. ..........................................................   8
  14.2  Share Withholding .................................................   8
ARTICLE 15. ASSIGNMENT OR TRANSFER OF AWARDS ..............................   9
  15.1  General ...........................................................   9
  15.2  Trusts ............................................................   9
ARTICLE 16. FUTURE OF THE PLAN ............................................   9
  16.1  Term of the Plan ..................................................   9
  16.2  Amendment or Termination ..........................................   9
ARTICLE 17. DEFINITIONS ...................................................  10
ARTICLE 18. EXECUTION .....................................................  12

<PAGE>   4
                               1996 STOCK PLAN OF

                                  INTERVU INC.

      ARTICLE 1. INTRODUCTION.

      The Plan was adopted by the Board on December 8, 1996, subject to approval
by the Company's stockholders, and shall be effective as of such date.

      The purpose of the Plan is to promote the long-term success of the Company
and the creation of stockholder value by (a) encouraging Key Employees to focus
on critical long-range objectives, (b) encouraging the attraction and retention
of Key Employees with exceptional qualifications and (c) linking Key Employees
directly to stockholder interests through increased stock ownership. The Plan
seeks to achieve this purpose by providing for Awards in the form of Restricted
Shares or options (which may constitute incentive stock options or nonstatutory
stock options).

      The Plan shall be governed by, and construed in accordance with, the laws
of the State of California.

      ARTICLE 2. ADMINISTRATION.

      2.1   Committee Composition. The Plan shall be administered by the
Committee. The Committee shall be appointed by the Board. In addition, the
composition of the Committee shall satisfy:

      (a)   Such requirements, if any, as the Securities and Exchange Commission
may establish for administrators acting under plans intended to qualify for
exemption under Rule 16b-3 (or its successor) under the Exchange Act; and

      (b)   Such requirements as the Internal Revenue Service may establish for
outside directors acting under plans intended to qualify for exemption under
section 162(m)(4)(C) of the Code.

The Board may also appoint one or more separate committees, each composed of one
or more officers of the Company who need not satisfy the foregoing requirements,
who may administer the Plan with respect to Key Employees who are not "covered
employees" under section 162(m)(3) of the Code.

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

<PAGE>   5
      ARTICLE 3. SHARES AVAILABLE FOR GRANTS.

      3.1   Basic Limitation. Common Shares issued pursuant to the Plan may be
authorized but unissued shares or treasury shares. The aggregate number of
Common Shares available for Restricted Shares and Options awarded under the Plan
shall not exceed 500,000. Of the Common Shares available hereunder, no more than
20% in aggregate shall be available with respect to Outside Directors. The
limitation of this Section 3.1 shall be subject to adjustment pursuant to
Article 9.

      3.2   Additional Shares. If Options are forfeited or if Options terminate
for any other reason before being exercised, then the corresponding Common
Shares shall again become available for Awards under the Plan. If Restricted
Shares are forfeited before any dividends have been paid with respect to such
Shares, then such Shares shall again become available for Awards under the Plan.

      ARTICLE 4. ELIGIBILITY.

      4.1   General Rules. Only Key Employees (including, without limitation,
independent contractors who are not members of the Board) shall be eligible for
designation as Participants by the Committee.

      4.2   Outside Directors. The Committee may provide that the NSOs that
 otherwise would be granted to an Outside Director under this Plan shall instead
be granted to an affiliate of such Outside Director. Such affiliate shall then
be deemed to be an Outside Director for purposes of the Plan, provided that the
service-related vesting and termination provisions pertaining to the NSOs shall
be applied with regard to the service of the Outside Director.

      4.3   Incentive Stock Options. Only Key Employees who are common-law
employees of the Company, a Parent or a Subsidiary shall be eligible for the
grant of ISOs. In addition, a Key Employee who owns more than 10% of the total
combined voting power of all classes of outstanding stock of the Company or any
of its Parents or Subsidiaries shall not be eligible for the grant of an ISO
unless the requirements set forth in section 422(c)(6) of the Code are
satisfied.

<PAGE>   6
      ARTICLE 5. OPTIONS.

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

      5.2   Number of Shares. Each Stock Option Agreement shall specify the
number of Common Shares subject to the Option and shall provide for the
adjustment of such number in accordance with Article 9. Options granted to any
Optionee in a single calendar year shall in no event cover more than 100,000
Common Shares, subject to adjustment in accordance with Article 9.

      5.3   Exercise Price. Each Stock Option Agreement shall specify the
Exercise Price; provided that the Exercise Price under an ISO shall in no event
be less than 100% of the Fair Market Value of a Common Share on the date of
grant and the Exercise Price under an NSO shall in no event be less than the par
value of the Common Shares subject to such NSO. In the case of an NSO, a Stock
Option Agreement may specify an Exercise Price that varies in accordance with a
predetermined formula while the NSO is outstanding.

      5.4   Exercisability and Term. Each Stock Option Agreement shall specify
the date when all or any installment of the option is to become exercisable. The
Stock Option Agreement shall also specify the term of the Option; provided that
the term of an ISO shall in no event exceed 10 years from the date of grant. A
Stock Option Agreement may provide for accelerated exercisability in the event
of the Optionee's death, disability or retirement or other events and may
provide for expiration prior to the end of its term in the event of the
termination of the Optionee's service. NSOs may also be awarded in combination
with Restricted Shares, and such an Award may provide that the NSOs will not be
exercisable unless the related Restricted Shares are forfeited.

      5.5   Effect of Change in Control. The Committee may determine, at the
time of granting an Option or thereafter, that such option shall become fully
exercisable as to all Common Shares subject to such option in the event that a
Change in Control occurs with respect to the Company.

      5.6   Modification or Assumption of Options. Within the limitations of the
Plan, the committee may modify, extend or

<PAGE>   7

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

      ARTICLE 6. PAYMENT FOR OPTION SHARES.

      6.1   General Rule. The entire Exercise Price of Common Shares issued upon
exercise of Options shall be payable in cash at the time when such Common Shares
are purchased, except as follows:

      (a)   In the case of an ISO granted under the Plan, payment shall be made
only pursuant to the express provisions of the applicable Stock Option
Agreement. The Stock Option Agreement may specify that payment may be made in
any form(s) described in this Article 6.

      (b)   In the case of an NSO, the Committee may at any time accept payment
in any form(s) described in this Article 6.

      6.2   Surrender of Stock. To the extent that this Section 6.2 is
applicable, payment for all or any part of the Exercise Price may be made with
Common Shares to the extent permitted under applicable law. Such Common Shares
shall be valued at their Fair Market Value on the date when the new Common
Shares are purchased under the Plan.

      6.3   Exercise/Sale. To the extent that this Section 6.3 is applicable,
payment may be made by the delivery (on a form prescribed by the Company) of an
irrevocable direction to a securities broker approved by the Company to sell
Common Shares and to deliver all or part of the sales proceeds to the Company in
payment of all or part of the Exercise Price and any withholding taxes.

      6.4   Exercise/Pledge. To the extent that this Section 6.4 is applicable,
payment may be made by the delivery (on a form prescribed by the Company) of an
irrevocable direction to pledge Common Shares to a securities broker or lender
approved by the Company, as security for a loan, and to deliver all or part of
the loan proceeds to the Company in payment of all or part of the Exercise Price
and any withholding taxes.

      6.5   Promissory Note. To the extent that this Section 6.5 is applicable,
payment may be made with a full-recourse promissory note; provided that the par
value of the Common Shares shall be paid in cash.

      6.6   Other Forms of Payment. To the extent that this Section 6.6 is
applicable, payment may be made in any other form that is consistent with
applicable laws, regulations and rules.

<PAGE>   8

      ARTICLE 7. RESTRICTED SHARES.

      7.1   Time, Amount and Form of Awards. Awards under the Plan may be
granted in the form of Restricted Shares. Restricted Shares may also be awarded
in combination with NSOs and such an Award may provide that the Restricted
Shares will be forfeited in the event that the related NSOs are exercised.

      7.2   Payment for Awards. To the extent that an Award is granted in the
form of newly issued Restricted Shares, the Award recipient, as a condition to
the grant of such Award, shall be required to pay the Company in cash an amount
at least equal to the par value of such Restricted Shares. To the extent that an
Award is granted in the form of Restricted Shares from the Company's treasury,
no cash consideration shall be required of the Award recipients unless otherwise
provided in the applicable Stock Award Agreement.

      7.3   Vesting Conditions. Each Award of Restricted Shares shall become
vested, in full or in installments, upon satisfaction of the conditions
specified in the Stock Award Agreement. A Stock Award Agreement may provide for
accelerated vesting in the event of the Participant's death, disability or
retirement or other events. The Committee may determine, at the time of making
an Award or thereafter, that such Award shall become fully vested in the event
that a Change in Control occurs with respect to the Company.

      ARTICLE 8. VOTING AND DIVIDEND RIGHTS.

      The holders of Restricted Shares awarded under the Plan shall have the
same voting, dividend and other rights as the Company's other holders of Common
Stock. A Stock Award Agreement, however, may require that the holders of
Restricted Shares invest any cash dividends received in additional Restricted
Shares. Such additional Restricted Shares shall be subject to the same
conditions and restrictions as the Award with respect to which the dividends
were paid. Such additional Restricted Shares shall not reduce the number of
Common Shares available under Article 3.

<PAGE>   9

      ARTICLE 9. PROTECTION AGAINST DILUTION.

      9.1   Adjustments. In the event of a subdivision of the outstanding Common
Shares, a declaration of a dividend payable in Common Shares, a declaration of a
dividend payable in a form other than Common Shares in an amount that has a
material effect on the price of Common Shares, a combination or consolidation of
the outstanding Common Shares (by reclassification or otherwise) into a lesser
number of Common Shares, a recapitalization, a spinoff or a similar occurrence,
the Committee shall make such adjustments as it, in its sole discretion, deems
appropriate in one or more of (a) the number of Options and Restricted Shares
available for future Awards under Article 3, (b) the limitations set forth in
Section 0, (c) the number of NSOs to be granted to Outside Directors under
Section 4.2, (d) the number of Common Shares covered by each outstanding Option,
or (e) the Exercise Price under each outstanding Option. Except as provided in
this Article 9, a Participant shall have no rights by reason of any issue by the
Company of stock of any class or securities convertible into stock of any class,
any subdivision or consolidation of shares of stock of any class, the payment of
any stock dividend or any other increase or decrease in the number of shares of
stock of any class.

      9.2   Reorganizations. In the event that the Company is a party to a
merger or other reorganization, outstanding Options and Restricted Shares shall
be subject to the agreement of merger or reorganization. Such agreement may
provide, without limitation, for the assumption of outstanding Awards by the
surviving corporation or its parent, for their continuation by the Company (if
the Company is a surviving corporation), for accelerated vesting and accelerated
expiration, or for settlement in cash.

      ARTICLE 10. AWARDS UNDER OTHER PLANS.

      The Company may grant awards under other plans or programs. Such awards
may be settled in the form of Common Shares issued under this Plan.

      ARTICLE 11. PAYMENT OF DIRECTOR'S FEES IN SECURITIES.

      11.1  Effective Date. No provision of this Article 11 shall be effective
unless and until the Board has determined to implement such provision.

      11.2  Elections to Receive NSOs or Restricted Shares. An outside Director
may elect to receive his or her annual retainer payments and meeting fees, if
any, from the Company in the form of cash, NSOs or Restricted Shares or a
combination thereof, as determined by the Board. Such NSOs and Restricted Shares
shall be issued under the Plan. An election under this Article 0 shall be filed
with the Company on the prescribed form.

      11.3  Number and Terms of NSOs or Restricted Shares. The number of NSOs or
Restricted Shares to be granted to Outside

<PAGE>   10

Directors in lieu of annual retainers and meeting fees, if any, that would
otherwise be paid in cash shall be calculated in a manner determined by the
Board. The terms of such NSOs or Restricted Shares shall also be determined by
the Board.

      ARTICLE 12. LIMITATION ON RIGHTS.

      12.1  Retention Rights. Neither the Plan nor any Award granted under the
Plan shall be deemed to give any individual a right to remain an employee,
consultant, advisor or director of the Company, a Parent or a Subsidiary. The
Company and its Parents and Subsidiaries reserve the right to terminate the
service of any employee, consultant, advisor or director at any time, with or
without cause, subject to applicable laws, the Company's certificate of
incorporation and by-laws and a written employment, consulting or other
applicable agreement (if any).

      12.2  Stockholders' Rights. A Participant shall have no dividend rights,
voting rights or other rights as a stockholder with respect to any Common Shares
covered by his or her Award prior to the issuance of a stock certificate for
such Common Shares. No adjustment shall be made for cash dividends or other
rights for which the record date is prior to the date when such certificate is
issued, except as expressly provided in Articles 7, 8 and 9.

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

      ARTICLE 13. LIMITATION ON PAYMENTS.

      13.1  Basic Rule. Any provision of the Plan to the contrary
notwithstanding, in the event that the independent auditors most recently
selected by the Board (the "Auditors") determine that any payment or transfer by
the Company under the Plan to or for the benefit of a Participant (a "Payment")
would be nondeductible by the Company for federal income tax purposes because of
the provisions concerning "excess parachute payments" in section 280G of the
Code, then the aggregate present value of all Payments shall be reduced (but not
below zero) to the Reduced Amount; provided that the Committee, at the time of
making an Award under this Plan or at any time thereafter, may specify in
writing that such Award shall not be so reduced and shall not be subject to this
Article 0. For purposes of this Article 0, the "Reduced Amount" shall be the
amount, expressed as a present value, which maximizes the aggregate present
value of the Payments without causing any Payment to be nondeductible by the
Company because of section 280G of the Code.

<PAGE>   11

      13.2  Reduction of Payments. If the Auditors determine that any Payment
would be nondeductible by the Company because of section 280G of the Code, then
the Company shall promptly give the Participant notice to that effect and a copy
of the detailed calculation thereof and of the Reduced Amount, and the
Participant may then elect, in his or her sole discretion, which and how much of
the Payments shall be eliminated or reduced (as long as after such election the
aggregate present value of the Payments equals the Reduced Amount) and shall
advise the Company in writing of his or her election within 10 days of receipt
of notice. If no such election is made by the Participant within such 10-day
period, then the Company may elect which and how much of the Payments shall be
eliminated or reduced (as long as after such election the aggregate present
value of the Payments equals the Reduced Amount) and shall notify the
Participant promptly of such election. For purposes of this Article 0, present
value shall be determined in accordance with section 280G(d)(4) of the Code. All
determinations made by the Auditors under this Article 0 shall be binding upon
the Company and the Participant and shall be made within 60 days of the date
when a Payment becomes payable or transferable. As promptly as practicable
following such determination and the elections hereunder, the Company shall pay
or transfer to or for the benefit of the Participant such amounts as are then
due to him or her under the Plan and shall promptly pay or transfer to or for
the benefit of the Participant in the future such amounts as become due to him
or her under the Plan.

      13.3  Overpayments and Underpayments. As a result of uncertainty in the
application of section 280G of the Code at the time of an initial determination
by the Auditors hereunder, it is possible that Payments will have been made by
the Company which should not have been made (an "Overpayment") or that
additional Payments which will not have been made by the Company could have been
made (an "Underpayment"), consistent in each case with the calculation of the
Reduced Amount hereunder. In the event that the Auditors, based upon the
assertion of a deficiency by the Internal Revenue Service against the Company or
the Participant which the Auditors believe has a high probability of success,
determine that an Overpayment has been made, such Overpayment shall be treated
for all purposes as a loan to the Participant which he or she shall repay to the
Company, together with interest at the applicable federal rate provided in
section 7872(f)(2) of the Code; provided, however, that no amount shall be
payable by the Participant to the Company if and to the extent that such payment
would not reduce the amount which is subject to taxation under section 4999 of
the Code. In the event that the Auditors determine that an Underpayment has
occurred, such Underpayment shall promptly be paid or transferred by the Company
to or for the benefit of the Participant, together with interest at the
applicable federal rate provided in section 7872(f)(2) of the Code.

      13.4  Related Corporations. For purposes of this Article 0, the term
"Company" shall include affiliated

<PAGE>   12

corporations to the extent determined by the Auditors in accordance with section
280G(d)(5) of the Code.

      ARTICLE 14. WITHHOLDING TAXES.

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

      14.2  Share Withholding. The Committee may permit a Participant to satisfy
all or part of his or her withholding or income tax obligations by having the
Company withhold all or a portion of any Common Shares that otherwise would be
issued to him or her or by surrendering all or a portion of any Common Shares
that he or she previously acquired. Such Common Shares shall be valued at their
Fair Market Value on the date when taxes otherwise would be withheld in cash.
Any payment of taxes by assigning Common Shares to the Company may be subject to
restrictions, including any restrictions required by rules of the Securities and
Exchange Commission.

      ARTICLE 15. ASSIGNMENT OR TRANSFER OF AWARDS.

      15.1  General. An Award granted under the Plan shall not be anticipated,
assigned, attached, garnished, optioned, transferred or made subject to any
creditor's process, whether voluntarily, involuntarily or by operation of law,
except as approved by the Committee. Notwithstanding the foregoing, ISOs may not
be transferable. However, this Article 0 shall not preclude a Participant from
designating a beneficiary who will receive any outstanding Awards in the event
of the Participant's death, nor shall it preclude a transfer of Awards by will
or by the laws of descent and distribution.

      15.2  Trusts. Neither this Article 0 nor any other provision of the Plan
shall preclude a Participant from transferring or assigning Restricted Shares to
(a) the trustee of a trust that is revocable by such Participant alone, both at
the time of the transfer or assignment and at all times thereafter prior to such
Participant's death, or (b) the trustee of any other trust to the extent
approved in advance by the Committee in writing. A transfer or assignment of
Restricted Shares from such trustee to any person other than such Participant
shall be permitted only to the extent approved in advance by the Committee in
writing, and Restricted Shares held by such trustee shall be subject to all of
the conditions and restrictions set forth in the Plan and in the applicable
Stock Award Agreement, as if such trustee were a party to such Agreement.

<PAGE>   13

      ARTICLE 16. FUTURE OF THE PLAN.

      16.1  Term of the Plan. The Plan, as set forth herein, was adopted on
December 8, 1996, and shall become effective as of such date. The Plan shall
remain in effect until it is terminated under Section 0, except that no ISOs
shall be granted after December 7, 2006.

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

      ARTICLE 17. DEFINITIONS.

      17.1  "Award" means any award of an Option or a Restricted Share under the
Plan.

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

      17.3  "Change in Control" shall be determined by the Committee. The term
"Change in Control" shall not include a transaction, the sole purpose of which
is to change the state of the Company's incorporation.

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

      17.5  "Committee", means a committee of the Board, as described in
            Article 2.

      17.6  "Common Share" means one share of the common stock of the Company.

      17.7  "Company" means InterVU Inc., a Delaware corporation.

      17.8  "Exchange Act" means the Securities Exchange Act of 1934, as
            amended.

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

      17.10 "Fair Market Value" means the market price of Common Shares,
determined by the Committee as follows;

      (a)   If the Common Shares were traded over-the-counter on the date in
question but was not traded on the Nasdaq system or the Nasdaq National Market
System, then the Fair Market Value shall be equal to the mean between the last
reported repre-

<PAGE>   14

sentative bid and asked prices quoted for such date by the principal automated
inter-dealer quotation system on which the Common Shares are quoted or, if the
Common Shares are not quoted on any such system, by the "Pink Sheets" published
by the National Quotation Bureau, Inc.;

      (b)   If the Common Shares were traded over-the-counter on the date in
question and were traded on the Nasdaq system or the Nasdaq National Market
System, then the Fair Market Value shall be equal to the last transaction price
quoted for such date by the Nasdaq system or the Nasdaq National Market System;

      (c)   If the Common Shares were traded on a stock exchange on the date in
question, then the Fair Market value shall be equal to the closing price
reported by the applicable composite transactions report for such date; and

      (d)   If none of the foregoing provisions is applicable, then the Fair
Market value shall be determined by the Committee in good faith on such basis as
it deems appropriate.

Whenever possible, the determination of Fair Market Value by the Committee shall
be based on the prices reported in the Western Edition of The Wall Street
Journal. Such determination shall be conclusive and binding on all persons.

      17.11 "ISO" means an incentive stock option described in section 422(b) of
the Code.

      17.12 "Key Employee" means (a) a common law employee of the Company, a
Parent or a Subsidiary, (b) an Outside Director and (c) a consultant or adviser
who provides services to the Company, a Parent or a Subsidiary as an independent
contractor. Service as an Outside Director or as an independent contractor shall
be considered employment for all purposes of the Plan, except as provided in
Sections 4.2 and 4.3.

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

      17.14 "Option" means an ISO or NSO granted under the Plan and entitling
the holder to purchase one Common Share.

      17.15 "Optionee" means an individual or estate who holds an Option.

      17.16 "Outside Director" shall mean a member of the Board who is not a
common-law employee of the Company, a Parent or a Subsidiary.

      17.17 "Parent" means any corporation (other than the Company) in an
unbroken chain of corporations ending with the Company, if each of the
corporations other than the Company owns stock possessing 50% or more of the
total combined voting power of all classes of stock in one of the other
corporations in such chain. A corporation that attains the status of a Parent on
a

<PAGE>   15

date after the adoption of the Plan shall be considered a Parent commencing as
of such date.

      17.18 "Participant" means an individual or estate who holds an Award.

      17.19 "Plan" means this 1996 Stock Plan of InterVU Inc., as amended from
time to time.

      17.20 Restricted Share" means a Common Share awarded under the Plan.

      17.21 "Stock Award Agreement" means the agreement between the Company and
the recipient of a Restricted Share which contains the terms, conditions and
restrictions pertaining to such Restricted Share.

      17.22 "Stock Option Agreement" means the agreement between the Company and
an Optionee which contains the terms, conditions and restrictions pertaining to
his or her Option.

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

      ARTICLE 18. EXECUTION.

      To record the adoption of the Plan by the Board, the Company has caused
its duly authorized officer to affix the corporate name and seal hereto.

                                   INTERVU INC.

                                   By /s/ Kenneth L. Ruggiero
                                     -------------------------------

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