Document:

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                        NATIONAL SCIENTIFIC CORPORATION
                      MASTER PURCHASE & LICENSING CONTRACT         Exhibit 10.4
                           Contract Number NSC-UR103

This Contract is dated this 12th day of January, 2001

By and Between

Name:      OZAKI KOREA CO., LTD.      Name:    National Scientific Corporation
           (a Korean Company)                  (a Texas State U.S. corporation)

Address:   #1208 [ILLEGIBLE]          d/b/a     NSC
           [ILLEGIBLE]  , Seoul                 4455 E. Camelback E-160
           Korea                                Phoenix, AZ 85018 USA

Telephone: 82-2-3273-6834             Telephone: 602-954-1492
Fax:       82-2-3273-6804             Fax:       602-954-1499
           ("Vendor")                            ("NSC")

     1. Description and Term. This Contract establishes the basic terms and
        conditions which shall govern all Orders for Equipment, Software or
        Services between the parties and shall be incorporated by reference in
        Orders. These terms and conditions can only be varied in writing signed
        by both parties. Unless otherwise agreed to in writing by Vendor and
        NSC, if any printed term or condition contained in any Purchase Order,
        acknowledgement or other form used by Vendor is inconsistent with any
        term or condition contained herein, the provisions of this contract
        shall apply and take precedence. This Contract shall remain in effect
        for a term of 2 years unless terminated by either party upon ninety (90)
        days prior written notice or otherwise under of the attached Terms and
        Conditions.

     2. Orders. Orders for Equipment, Software, or Services must be in writing
        and shall specify a Purchase Order number, the above Contract Number,
        the requested delivery date, the Equipment, Software or Services to be
        Purchased or licensed, the quantities, the prices, and the desired
        delivery location. No Order will be binding until issued in writing by
        NSC and accepted by Vendor in writing.

     3. Prices / Terms and Conditions. All Purchases and sales are subject to
        the attached Terms and Conditions.

The undersigned Vendor has read and understands this Contract (including the
Terms and Conditions) and is not entering into this Contract on the basis of any
representations not expressly set forth in this Contract.

            Vendor                                 NSC

By:    OZAKI KOREA CO. LTD.             By:    /s/ Michael A. Grollman
Name:  [ILLEGIBLE]                      Name:  Michael A. Grollman
Title: President                        Title: C.O.O., Executive V.P.
Date:  1-12-2001                        Date:  1-12-2001

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             NSC Master Purchase & Licensing Contract, Page 1 of 3
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l.   PRICES; TAXES, PAYMENT.

     1.1  PRICES. Prices and quantities for Equipment and Software, and Services
          will be specified in each Purchase Order. Unless otherwise specified
          in the Purchase Order, all currency amounts and payments will be in
          U.S. dollars.

     1.2  TAXES. Tax terms for Equipment and Software, and any Services will be
          specified in each Purchase Order. In the event that such terms are not
          specified, then the Vendor shall report and pay all excise, value
          added, use and other domestic and foreign taxes (excluding only those
          taxes based on net income) designated, levied, or based (i) upon the
          Purchase price or any other amounts payable under this Contract; (ii)
          on account of this Contract; or (iii) with respect to the Equipment,
          Software or the Services. Vendor shall indemnify and hold harmless NSC
          from all claims and liability resulting from Vendor's failure to
          report or pay such amounts.

     1.3  SHIPMENT. Shipment and delivery terms for Equipment and Software will
          be specified in each Purchase Order. In the event that such terms are
          not specified, then the Vendor shall be responsible for all shipment
          costs FOB the NSC warehouse is Los Angeles, California, USA.

     1.4  TITLE. Title to the Equipment and Software shall pass to NSC upon
          NSC's receipt of the Equipment.

     1.5  PAYMENT. NSC shall pay all amounts due to Vendor according to the
          terms specified in each Purchase Order. In the event that the Purchase
          Order does not specify payment terms, the default terms shall be in
          U.S. dollars Net 90 days of accepted delivery by NSC.

2.   WARRANTIES, REPRESENTATIONS AND COVENANTS OF VENDOR. In addition to any
     other Contracts of Vendor set forth in this Contract, Vendor makes the
     following warranties, representations and covenants:

     2.1  RISK OF LOSS. Until receipt by NSC in its designated warehouse, Vendor
          shall bear liability for all risk of loss or damage to any Equipment.

     2.2  WARRANTY SUPPORT AND RETURNS. Vendor will provide warranty support to
          its users, if Vendor offers such support. NSC will have no obligation
          to pay Vendor for defective units, and will have the right to return
          such to Vendor or to request a credit from the Vendor for such units.
          Vendor is responsible for management of defective returns.

     2.3  COMPLIANCE WITH LAWS. Vendor will comply with all foreign, federal,
          state and local laws relating to the Purchase, use and operation of
          the Equipment and Software, including without limitation all
          applicable export laws. Vendor agrees that it will not export or
          re-export the Equipment or Software without the appropriate United
          States and foreign government licenses and will not export or
          re-export the Equipment or Software to any countries where export or
          re-export is prohibited by applicable government law or regulations.
          Vendor shall have full responsibility for compliance with all laws
          that require registration or approval of this Contract or any
          governmental approval for sale or use of the Equipment or Software in
          any jurisdiction where Vendor Purchases or uses the Equipment or
          Software, and shall bear all costs associated with such compliance.
          Vendor shall indemnify and hold harmless NSC for any damages that
          result from a breach of this Section, and such indemnity shall survive
          expiration or termination of this Contract.

3.   WARRANTIES AND REPRESENTATIONS OF NSC. In addition to any other Contract of
     Vendor set forth in this Contract, NSC makes the following warranties,
     representations and covenants:

     3.1  INSURANCE. NSC shall maintain, at its own expense and with established
          insurance companies, adequate workers' compensation, comprehensive
          general liability and automobile liability insurance coverage and
          shall provide written proof of such insurance coverage upon the
          request of Vendor.

     3.2  WARRANTY SUPPORT. NSC will provide no warranty support or support of
          any kind to any users of this Equipment. NSC is not responsible for
          management of defective returns or any other type of end user returns.

     3.3  LICENSING BY NSC OF ITS TECHNOLOGIES. Vendor may issue its own
          Purchase Orders in Order to license NSC technologies. Such Purchase
          Orders shall not be binding until signed by an officer of NSC.

4.   CONFIDENTIALITY. Each party agrees not to disclose to any third party the
     terms of this Contract (other than in general summary press release form
     announcing this agreement, and as otherwise required under law for
     disclosure) and any other information of the other party designated as
     confidential ("Confidential Information") and also agrees not to use any
     Confidential Information of the other party except as expressly permitted
     under this Contract or except with the prior written consent of the other
     party. Each party agrees to exercise the highest degree of care in
     safeguarding the Confidential Information of the other party against loss
     or other inadvertent disclosure.

5.   LIMITATION OF LIABILITIES. IN NO EVENT WILL NSC BE LIABLE TO VENDOR OR TO
     ANY THIRD PARTY FOR INCIDENTAL, INDIRECT, EXEMPLARY, SPECIAL OR
     CONSEQUENTIAL DAMAGES, WHETHER FORESEEABLE OR UNFORESEEABLE, ARISING OUT OF
     OR OTHERWISE RELATING TO THIS CONTRACT. IN NO EVENT WILL ANY LIABILITY TO
     NSC EXCEED THE PURCHASE PRICE PAID BY NSC.

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             NSC MASTER PURCHASE & LICENSING CONTRACT, PAGE 2 OF 3
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     6.   [MISSING COPY]

     6.1  Expiration; Termination for Convenience. This Contract shall remain in
          effect for a term of two years unless earlier termination by either
          party for convenience upon 90 days prior written notice.

     6.2  Termination by BSC for Breach. NSC, at its sole option, and reserving
          all other rights and remedies available to it at law or in equity,
          shall have the right to terminate this Contract or any accepted Order
          not then completed by giving written notice of termination to Vendor
          of the occurrence of, but not limited to, any of the following:

          (a)  Vendor's failure to perform any material obligation set forth in
               this Contract or any accepted Order not then completed, if such
               failure has not been corrected within ten days after NSC has
               given Vendor written notice of such failure; or

          (b)  Any act or event whereby Vendor (i) is or becomes insolvent, (ii)
               is or becomes a party to any bankruptcy or receivership
               proceeding or any similar action affecting the financial
               condition or property of Vendor.

     6.3  Termination by Vendor for Breach. Vendor, at its sole option and
          reserving all other rights and remedies available to it at law or in
          equity, shall have the right to terminate this Contract or any
          accepted Order not then completed by giving written notice of
          termination to NSC of the occurrence of any of the following:

          (a)  NSC's failure to pay to Vendor any charge, cost, or other payment
               accruing under any accepted Order, if such delinquency has not
               been corrected within thirty days after Vendor has given NSC
               written notice of such delinquency;

          (b)  NSC's failure to perform any other material obligation set forth
               in this Contract or any accepted Order, including any act of
               repudiation or wrongful rejection of the Equipment, if such
               failure has not been corrected within thirty days after Vendor
               has given NSC written notice of such failure; or

          (c)  Any act or event whereby NSC (i) is or becomes insolvent, (ii) is
               or becomes a party to any bankruptcy or receivership proceeding
               or any similar action affecting the financial condition or
               property of NSC.

7.   General Provisions

     7.1  Force Majeure. Neither party shall be liable for any delays in
          performance (other than obligations for the payment of money) due to
          acts of God, war, riots, strikes, industrial or labor disputes, delays
          in transit, or any other cause, whether similar or dissimilar, beyond
          such party's control and without its fault or negligence. Each party
          will use its best efforts to notify the other party in writing as soon
          as it has knowledge that any such delays may occur, but such party
          shall not be liable for any failure to give such notification. Any
          agreed-upon schedule shall be extended for a period of time equal to
          the period of delay.

     7.2  Entire Contract. This Contract, the attached Schedules and any
          accepted Orders contain the entire Contract between NSC and Vendor
          with respect to the subject matter of this Contract. All prior
          representations, demonstrations, arrangements or understandings are
          superseded by this Contract. In particular, there are no
          representations or warranties not expressly set forth in this
          Contract.

     7.3  Non-Solicitation. Vendor shall not induce or attempt to influence,
          directly or indirectly, any employee or agent or partner of NSC to
          terminate his or her relationship or employment with NSC or to work
          for Vendor or any other person, and will not hire any employee of NSC
          during the performance of any Services for a period of one year after
          termination of this Contract.

     7.4  Governing Law. This Agreement shall be governed in accordance with the
          laws of the state Arizona and those of the United States of America,
          except that the provisions of the United Nations Convention on
          International Sale of Goods the and United Nations Convention on
          Statutory Limitations will not apply. This Agreement may be translated
          into a language other than English, but this English version of the
          Agreement shall control the rights and obligations of the parties
          regardless of any subsequent of any subsequent translation and
          regardless of any reliance by any party upon such translation. All
          communications and notices related to this Agreement shall be in
          English, and all transaction shall be in U.S. dollars unless otherwise
          specified.

     7.5  Counterparts and Modification. Any representations purporting to
          waive, vary, modify or supplement the terms of this Contract shall be
          of no force or effect unless in writing and signed by a
          duly-authorized officer of NSC and Vendor. This Contract may be
          executed in one or more counterparts, all of which together shall
          constitute one complete Contract.

     7.6  Notification. Unless otherwise provided in this Contract, any notice
          or communication required or permitted to be given to either party
          shall be in writing and shall be considered effective when received in
          the mail (postage prepaid, certified with return receipt requested),
          by facsimile or by courier at the address shown on page 1 of this
          Contract for the party to be notified, unless such party has notified
          the sender in writing of a change of address, in which case notice
          shall be mailed as described above, to the revised address.

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             NSC Master Purchase & Licensing Contract, Page: 3 of 3<PAGE>   1
                                                                    EXHIBIT 10.1

                         HYPERION SOLUTIONS CORPORATION
                      1995 STOCK OPTION/STOCK ISSUANCE PLAN
               (AS AMENDED AND RESTATED THROUGH NOVEMBER 27, 2000)

                                    ARTICLE I

                               GENERAL PROVISIONS

         I.       PURPOSE OF THE PLAN

                  This 1995 Stock Option/Stock Issuance Plan is intended to
promote the interests of the Corporation by providing eligible persons with the
opportunity to acquire a proprietary interest, or otherwise increase their
proprietary interest, in the Corporation as an incentive for them to remain in
the service of the Corporation.

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

         II.      STRUCTURE OF THE PLAN

                  A. The Plan shall be divided into four separate equity
programs:

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

                           (ii) the Salary Investment Option Grant Program under
which eligible employees may elect to have a portion of their base salary
reduced each year in return for options to purchase shares of Common Stock,

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

                           (iv) the Automatic Option Grant Program under which
Eligible Directors shall automatically receive option grants at periodic
intervals to purchase shares of Common Stock.

                  B. The provisions of Articles I and VI shall apply to all
equity programs under the Plan and shall accordingly govern the interests of all
persons under the Plan.
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         III.     ADMINISTRATION OF THE PLAN

                  A. The Primary Committee shall have sole and exclusive
authority to administer the Discretionary Option Grant, Salary Investment Option
Grant and Stock Issuance Programs with respect to Section 16 Insiders.

                  B. Administration of the Discretionary Option Grant, Salary
Investment Option Grant and Stock Issuance Programs with respect to all other
persons eligible to participate in those programs may, at the Board's
discretion, be vested in the Primary Committee or a Secondary Committee, or the
Board may retain the power to administer those programs with respect to all such
persons.

                  C. Members of the Primary Committee or any Secondary Committee
shall serve for such period of time as the Board may determine and may be
removed by the Board at any time. The Board may also at any time terminate the
functions of any Secondary Committee and reassume all powers and authority
previously delegated to such committee or transfer such powers and authority to
the Primary Committee.

                  D. Each Plan Administrator shall, within the scope of its
administrative functions under the Plan, have full power and authority to
establish such rules and regulations as it may deem appropriate for proper
administration of the Discretionary Option Grant, Salary Investment Option Grant
and Stock Issuance Programs and to make such determinations under, and issue
such interpretations of, the provisions of such programs and any outstanding
options or stock issuances thereunder as it may deem necessary or advisable.
Decisions of the Plan Administrator within the scope of its administrative
functions under the Plan shall be final and binding on all parties who have an
interest in the Discretionary Option Grant, Salary Investment Option Grant or
Stock Issuance Program under its jurisdiction or any option or stock issuance
thereunder.

                  E. Service on the Primary Committee or the Secondary Committee
shall constitute service as a Board member, and members of each such committee
shall accordingly be entitled to full indemnification and reimbursement as Board
members for their service on such committee. No member of the Primary Committee
or the Secondary Committee shall be liable for any act or omission made in good
faith with respect to the Plan or any option grants or stock issuances under the
Plan.

                  F. Administration of the Automatic Option Grant Program shall
be self-executing in accordance with the terms of that program, and no Plan
Administrator shall exercise any discretionary functions with respect to option
grants made thereunder.

         IV.      ELIGIBILITY

                  A. The persons eligible to participate in the Discretionary
Option Grant and Stock Issuance Programs are as follows:

                           (i) Employees,

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

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

                  B. Only Employees shall be eligible to participate in the
Salary Investment Program.

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

                  D. The Plan Administrator shall have the absolute discretion
either to grant options in accordance with the Discretionary Option Grant and/or
Salary Investment Program or to effect stock issuances in accordance with the
Stock Issuance Program.

                  E. The individuals eligible to participate in the Automatic
Option Grant Program are described in Section I of Article V.

         V.       STOCK SUBJECT TO THE PLAN

                  A. The stock issuable under the Plan shall be shares of
authorized but unissued or reacquired Common Stock, including shares repurchased
by the Corporation on the open market. The maximum number of shares of Common
Stock which may be issued over the term of the Plan shall not exceed 9,607,577
shares. Such authorized share reserve is comprised of (i) the number of shares
which remained available for issuance, as of the Plan Effective Date, under the
Predecessor Plan as last approved by the Corporation's stockholders prior to
such date, including the shares subject to the outstanding options incorporated
into the Plan and any other shares which would have been available for future
option grants under the Predecessor Plan, and an increase of 250,000 shares
authorized by the Board under the Plan, and approved by the stockholders on
September 15, 1995; (ii) an increase of 1,000,000 shares authorized by the Board
under the Plan and approved by the stockholders at the 1996 Annual Meeting of
Stockholders; (iii) an additional increase of 750,000 shares authorized by the
Board under the Plan and approved by the stockholders at the 1997 Annual Meeting
of Stockholders; (iv) an additional increase of 5,000,000 shares authorized by
the Board under the Plan and approved by the stockholders at the 1998 Annual
Meeting of Stockholders; and (v) an additional increase of

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1,600,000 shares authorized by the Board under the Plan and approved by the
stockholders at the 2000 Annual Meeting of Stockholders.

                  B. No one person participating in the Plan may receive options
for more than 500,000 shares of Common Stock in the aggregate per calendar year,
beginning with the 1995 calendar year.

                  C. Shares of Common Stock subject to outstanding options shall
be available for subsequent issuance under the Plan to the extent (i) the
options (including any options incorporated from the Predecessor Plan) expire or
terminate for any reason prior to exercise in full or (ii) the options are
canceled in accordance with the cancellation-regrant provisions of Article II.
All shares issued under the Plan (including shares issued upon exercise of
options incorporated from the Predecessor Plan), whether or not those shares are
subsequently repurchased by the Corporation pursuant to its repurchase rights
under the Plan, shall reduce on a share-for-share basis the number of shares of
Common Stock available for subsequent issuance under the Plan. In addition,
should the exercise price of an option under the Plan (including any option
incorporated from the Predecessor Plan) be paid with shares of Common Stock or
should shares of Common Stock otherwise issuable under the Plan be withheld by
the Corporation in satisfaction of the withholding taxes incurred in connection
with the exercise of an option or the vesting of a stock issuance under the
Plan, then the number of shares of Common Stock available for issuance under the
Plan shall be reduced by the gross number of shares for which the option is
exercised or which vest under the stock issuance, and not by the net number of
shares of Common Stock issued to the holder of such option or stock issuance.

                  D. Should any change be made to the Common Stock by reason of
any stock split, stock dividend, recapitalization, combination of shares,
exchange of shares or other change affecting the outstanding Common Stock as a
class without the Corporation's receipt of consideration, appropriate
adjustments shall be made to (i) the maximum number and/or class of securities
issuable under the Plan, (ii) the number and/or class of securities for which
any one person may be granted options per calendar year, (iii) the number and/or
class of securities for which automatic option grants are to be subsequently
made per Eligible Director under the Automatic Option Grant Program and (iv) the
number and/or class of securities and the exercise price per share in effect
under each outstanding option (including any option incorporated from the
Predecessor Plan) in order to prevent the dilution or enlargement of benefits
thereunder. The adjustments determined by the Plan Administrator shall be final,
binding and conclusive.

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                                   ARTICLE II

                       DISCRETIONARY OPTION GRANT PROGRAM

         I.       OPTION TERMS

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

                  A.       Exercise Price.

                           1. The exercise price per share shall be fixed by the
Plan Administrator but shall not be less than eighty-five percent (85%) of the
Fair Market Value per share of Common Stock on the option grant date.

                           2. The exercise price shall become immediately due
upon exercise of the option and shall, subject to the provisions of Section I of
Article VI and the documents evidencing the option, be payable in one or more of
the forms specified below:

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

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

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

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

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

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                  C.       Effect of Termination of Service.

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

                                    (i) Any option outstanding at the time of
the Optionee's cessation of Service for any reason shall remain exercisable for
such period of time thereafter as shall be determined by the Plan Administrator
and set forth in the documents evidencing the option, but no such option shall
be exercisable after the expiration of the option term.

                                    (ii) Any option exercisable in whole or in
part by the Optionee at the time of 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 beneficiary
designation or in accordance with the laws of descent and distribution.

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

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

                                    (v) In the event of an Involuntary
Termination following a Corporate Transaction, the provisions of Section III of
this Article II shall govern the period for which the outstanding options are to
remain exercisable following the Optionee's cessation of Service and shall
supersede any provisions to the contrary in this Section I.

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

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

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

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                  D. Stockholder Rights. The holder of an option shall have no
stockholder rights with respect to the shares subject to the option until such
person shall have exercised the option, paid the exercise price and become a
holder of record of the purchased shares.

                  E. Repurchase Rights. The Plan Administrator shall have the
discretion to grant options which are exercisable for unvested shares of Common
Stock. Should the Optionee cease Service while holding such unvested shares, the
Corporation shall have the right to repurchase, at the exercise price paid per
share, any or all of those unvested shares. The terms upon which such repurchase
right shall be exercisable (including the period and procedure for exercise and
the appropriate vesting schedule for the purchased shares) shall be established
by the Plan Administrator and set forth in the document evidencing such
repurchase right.

                  F. Limited Transferability of Options. During the lifetime of
the Optionee, the option shall be exercisable only by the Optionee and shall not
be assignable or transferable other than by will, beneficiary designation or the
laws of descent and distribution following the Optionee's death. However, a
Non-Statutory Option may be assigned in whole or in part during the Optionee's
lifetime in accordance with the terms of a Qualified Domestic Relations Order.
The assigned portion may only be exercised by the person or persons who acquire
a proprietary interest in the option pursuant to such Qualified Domestic
Relations Order. The terms applicable to the assigned portion shall be the same
as those in effect for the option immediately prior to such assignment and shall
be set forth in such documents issued to the assignee as the Plan Administrator
may deem appropriate.

         II.      INCENTIVE OPTIONS

                  The terms specified below shall be applicable to all Incentive
Options. Except as modified by the provisions of this Section II, all the
provisions of Articles I, II and VI shall be applicable to Incentive Options.
Options that are specifically designated as Non-Statutory Options when issued
under the Plan shall NOT be subject to the terms of this Section II.

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

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

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

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                  D. 10% Stockholder. If any Employee to whom an Incentive
Option is granted is a 10% Stockholder, then the exercise price per share shall
not be less than one hundred ten percent (110%) of the Fair Market Value per
share of Common Stock on the option grant date, and the option term shall not
exceed five (5) years measured from the option grant date.

         III.     CORPORATE TRANSACTION/CHANGE IN CONTROL

                  A. In the event of any Corporate Transaction, each outstanding
option shall automatically accelerate so that each such option shall,
immediately prior to the effective date of the Corporate Transaction, become
fully exercisable for all of the shares of Common Stock at the time subject to
such option and may be exercised for any or all of those shares as fully-vested
shares of Common Stock. However, an outstanding option shall NOT so accelerate
if and to the extent: (i) such option is, in connection with the Corporate
Transaction, 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), (ii) such option
is to be replaced with a cash incentive program of the successor corporation
which preserves the spread existing on the unvested option shares at the time of
the Corporate Transaction and provides for subsequent payout in accordance with
the same vesting schedule applicable to such option or (iii) the acceleration of
such option is subject to other limitations imposed by the Plan Administrator at
the time of the option grant. The determination of option comparability under
clause (i) above shall be made by the Plan Administrator, and its determination
shall be final, binding and conclusive.

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

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

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

                  E. Any options which are assumed or replaced in the Corporate
Transaction and do not otherwise accelerate at that time shall automatically
accelerate (and any of the

                                       8
<PAGE>   9
Corporation's outstanding repurchase rights which do not otherwise terminate at
the time of the Corporate Transaction shall automatically terminate and the
shares of Common Stock subject to those terminated rights shall immediately vest
in full) in the event the Optionee's Service should subsequently terminate by
reason of an Involuntary Termination within eighteen (18) months following the
effective date of such Corporate Transaction. Any options so accelerated shall
remain exercisable for fully-vested shares until the EARLIER of (i) the
expiration of the option term or (ii) the expiration of the one (1)-year period
measured from the effective date of the Involuntary Termination.

                  F. The Plan Administrator shall have the discretion,
exercisable either at the time the option is granted or at any time while the
option remains outstanding, to (i) provide for the automatic acceleration of one
or more outstanding options (and the automatic termination of one or more
outstanding repurchase rights with the immediate vesting of the shares of Common
Stock subject to those rights) upon the occurrence of a Change in Control or
(ii) condition any such option acceleration (and the termination of any
outstanding repurchase rights) upon the subsequent Involuntary Termination of
the Optionee's Service within a specified period following the effective date of
such Change in Control. Any options accelerated in connection with a Change in
Control shall remain fully exercisable until the expiration or sooner
termination of the option term.

                  G. The portion of any Incentive Option accelerated in
connection with a Corporate Transaction or Change in Control shall remain
exercisable as an Incentive Option only to the extent the applicable One Hundred
Thousand Dollar limitation is not exceeded. To the extent such dollar limitation
is exceeded, the accelerated portion of such option shall be exercisable as a
Non-Statutory Option under the Federal tax laws.

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

         IV.      CANCELLATION AND REGRANT OF OPTIONS

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

         V.       STOCK APPRECIATION RIGHTS

                  A. The Plan Administrator shall have full power and authority
to grant to selected Optionees tandem stock appreciation rights and/or limited
stock appreciation rights.

                                       9
<PAGE>   10
                  B. The following terms shall govern the grant and exercise of
tandem stock appreciation rights:

                           (i) One or more Optionees may be granted the right,
exercisable upon such terms as the Plan Administrator may establish, to elect
between the exercise of the underlying option for shares of Common Stock and the
surrender of that option in exchange for a distribution from the Corporation in
an amount equal to the excess of (a) the Fair Market Value (on the option
surrender date) of the number of shares in which the Optionee is at the time
vested under the surrendered option (or surrendered portion thereof) over (b)
the aggregate exercise price payable for such shares.

                           (ii) No such option surrender shall be effective
unless it is approved by the Plan Administrator. If the surrender is so
approved, then the distribution to which the Optionee shall be entitled may be
made in shares of Common Stock valued at Fair Market Value on the option
surrender date, in cash, or partly in shares and partly in cash, as the Plan
Administrator shall in its sole discretion deem appropriate.

                           (iii) If the surrender of an option is rejected by
the Plan Administrator, then the Optionee shall retain whatever rights the
Optionee had under the surrendered option (or surrendered portion thereof) on
the option surrender date and may exercise such rights at any time prior to the
LATER of (a) five (5) business days after the receipt of the rejection notice or
(b) the last day on which the option is otherwise exercisable in accordance with
the terms of the documents evidencing such option, but in no event may such
rights be exercised more than ten (10) years after the option grant date.

                  C. The following terms shall govern the grant and exercise of
limited stock appreciation rights:

                           (i) One or more Section 16 Insiders may be granted
limited stock appreciation rights with respect to their outstanding options.

                           (ii) Upon the occurrence of a Hostile Take-Over, each
such individual holding one or more options with such a limited stock
appreciation right in effect for at least six (6) months shall have the
unconditional right (exercisable for a thirty (30)-day period following such
Hostile Take-Over) to surrender each such option to the Corporation, to the
extent the option is at the time exercisable for vested shares of Common Stock.
In return for the surrendered option, the Optionee shall receive a cash
distribution from the Corporation in an amount equal to the excess of (A) the
Take-Over Price of the shares of Common Stock which are at the time vested under
each surrendered option (or surrendered portion thereof) over (B) the aggregate
exercise price payable for such shares. Such cash distribution shall be paid
within five (5) days following the option surrender date.

                           (iii) Neither the approval of the Plan Administrator
nor the consent of the Board shall be required in connection with such option
surrender and cash distribution.

                                       10
<PAGE>   11
                           (iv) The balance of the option (if any) shall
continue in full force and effect in accordance with the documents evidencing
such option.

                                     11
<PAGE>   12
                                   ARTICLE III

                     SALARY INVESTMENT OPTION GRANT PROGRAM

         I.       OPTION GRANTS

                  Each Employee selected by the Plan Administrator to
participate in the Salary Investment Program for any calendar year must, prior
to the start of that calendar year, file with the Plan Administrator (or its
designate) an irrevocable authorization directing the Corporation to reduce his
or her base salary for that calendar year by a designated multiple of one
percent (1%), but in no event less than five percent (5%). The Plan
Administrator shall determine whether to approve, in whole or in part, such
authorization. To the extent the Plan Administrator approves the authorization,
the individual who filed that authorization shall be granted an option under
this Salary Investment Program.

         II.      OPTION TERMS

                  Each option shall be a Non-Statutory Option evidenced by one
or more documents in the form approved by the Plan Administrator; PROVIDED,
however, that each such document shall comply with the terms specified below.

                  A. Exercise Price.

                           1. The exercise price per share shall be thirty-three
and one-third percent (33-1/3%) of the Fair Market Value per share of Common
Stock on the option grant date.

                           2. The exercise price shall become immediately due
upon exercise of the option and shall be payable in one or more of the
alternative forms authorized under the Discretionary Option Grant Program.
Except to the extent the sale and remittance procedure specified thereunder is
utilized, payment of the exercise price for the purchased shares must be made on
the Exercise Date.

                  B. Number of Option Shares. The number of shares of Common
Stock subject to the option shall be determined pursuant to the following
formula (rounded down to the nearest whole number):

                           X = A divided by (B x 66-2/3%), where

                           X is the number of option shares,

                           A is the dollar amount of the approved reduction in
                           the Optionee's base salary for the calendar year, and

                           B is the Fair Market Value per share of Common Stock
                           on the option grant date.

                                       12
<PAGE>   13
                  C. Exercise and Term of Options. Provided the Optionee
continues in Service, the option shall become exercisable for the option shares
in a series of twelve (12) successive equal monthly installments on the last day
of each of the twelve (12) calendar months in the calendar year for which the
option is granted. Each option shall have a maximum term of ten (10) years
measured from the option grant date.

                  D. Effect of Termination of Service.

                           1. Should the Optionee cease Service for any reason
AFTER his or her outstanding option has become exercisable in whole or in part,
then that option shall remain exercisable, for any or all of the shares for
which the option is exercisable on the date of such cessation of Service, until
the expiration of the option term. After the Optionee's death, such option may
be exercised, for any or all of the shares for which the option is exercisable
at the time of the Optionee's death, 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 beneficiary designation or in accordance with
the laws of descent and distribution. Such right of exercise shall lapse, and
the option shall terminate, upon the expiration of the option term. However, the
option shall, immediately upon the Optionee's cessation of Service, terminate
and cease to be outstanding to the extent it is not exercisable on the date of
such cessation of Service.

                           2. Should the Optionee die BEFORE his or her
outstanding option becomes exercisable for any of the option shares, then the
personal representative of the Optionee's estate or the person or persons to
whom the option is transferred pursuant to the Optionee's will or beneficiary
designation or in accordance with the laws of descent and distribution shall
have the right to exercise such option for up to that number of option shares
equal to (i) one-twelfth (1/12) of the total number of option shares multiplied
by (ii) the number of full calendar months which have elapsed between the first
day of the calendar year for which the option is granted and the last day of the
calendar month during which the Optionee ceases Service. Such right of exercise
shall lapse, and the option shall terminate, upon the earlier of the expiration
of the option term or the third anniversary of the date of the Optionee's death.
However, the option shall, immediately upon the Optionee's death, terminate and
cease to be outstanding with respect to the balance of the shares subject to
that option.

                           3. Should the Optionee become Permanently Disabled
and cease by reason thereof to remain in Service BEFORE his or her outstanding
option becomes exercisable for any of the option shares, then the Optionee shall
have the right to exercise such option for up to that number of option shares
equal to (i) one-twelfth (1/12) of the total number of option shares multiplied
by (ii) the number of full calendar months which have elapsed between the first
day of the calendar year for which the option is granted and the last day of the
calendar month during which the Optionee ceases Service. Such right of exercise
shall lapse, and the option shall terminate, upon the expiration of the option
term. However, the option shall, immediately at the time Optionee becomes
Permanently Disabled, terminate and cease to be outstanding with respect to the
balance of the shares subject to that option.

                                       13
<PAGE>   14
         III.     CORPORATE TRANSACTION/CHANGE IN CONTROL

                  A. In the event of any Corporate Transaction while the
Optionee remains in Service, each outstanding option held by such Optionee under
this Salary Investment Program shall automatically accelerate so that each such
option shall, immediately prior to the effective date of the Corporate
Transaction, become fully exercisable for all of the shares of Common Stock at
the time subject to such option and may be exercised for any or all of those
shares as fully-vested shares of Common Stock. Immediately following the
consummation of the Corporate Transaction, each such option shall terminate,
unless assumed by the successor corporation (or parent thereof).

                  B. In the event of a Change in Control while the Optionee
remains in Service, each outstanding option held by such Optionee under this
Salary Investment Program shall automatically accelerate so that each such
option shall immediately become fully exercisable for all of the shares of
Common Stock at the time subject to such option and may be exercised for any or
all of such shares as fully-vested shares of Common Stock. The option shall
remain so exercisable until the expiration of the option term.

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

         IV.      REMAINING TERMS

                  The remaining terms of each option granted under the Salary
Investment Program shall be the same as the terms in effect for option grants
made under the Discretionary Option Grant Program.

                                       14
<PAGE>   15
                                   ARTICLE IV

                             STOCK ISSUANCE PROGRAM

         I.       STOCK ISSUANCE TERMS

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

                  A.       Purchase Price.

                           1. The purchase price per share shall be fixed by the
Plan Administrator, but shall not be less than eighty-five percent (85%) of the
Fair Market Value per share of Common Stock on the issuance date.

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

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

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

                  B. Vesting Provisions.

                  1. Shares of Common Stock issued under the Stock Issuance
Program may, in the discretion of the Plan Administrator, be fully and
immediately vested upon issuance or may vest in one or more installments over
the Participant's period of Service or upon attainment of specified performance
objectives. The elements of the vesting schedule applicable to any unvested
shares of Common Stock issued under the Stock Issuance Program, namely:

                           (i) the Service period to be completed by the
Participant or the performance objectives to be attained,

                           (ii) the number of installments in which the shares
are to vest,

                           (iii) the interval or intervals (if any) which are to
lapse between installments, and

                           (iv) the effect which death, Permanent Disability or
other event designated by the Plan Administrator is to have upon the vesting
schedule,

                                       15
<PAGE>   16
shall be determined by the Plan Administrator and incorporated into the Stock
Issuance Agreement.

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

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

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

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

         II.      CORPORATE TRANSACTION/CHANGE IN CONTROL

                  A. All of the outstanding repurchase rights under the Stock
Issuance Program shall terminate automatically, and all the shares of Common
Stock subject to those terminated rights shall immediately vest in full, in the
event of any Corporate Transaction, except to the extent (i) those repurchase
rights are assigned to the successor corporation (or parent thereof) in
connection with such Corporate Transaction or (ii) such accelerated vesting is
precluded by other limitations imposed in the Stock Issuance Agreement.

                                       16
<PAGE>   17
                  B. Any repurchase rights that are assigned in the Corporate
Transaction shall automatically terminate, and all the shares of Common Stock
subject to those terminated rights shall immediately vest in full, in the event
the Participant's Service should subsequently terminate by reason of an
Involuntary Termination within eighteen (18) months following the effective
date of such Corporate Transaction.

                  C. The Plan Administrator shall have the discretion,
exercisable either at the time the unvested shares are issued or at any time
while the Corporation's repurchase right remains outstanding, to (i) provide
for the automatic termination of one or more outstanding repurchase rights and
the immediate vesting of the shares of Common Stock subject to those rights
upon the occurrence of a Change in Control or (ii) condition any such
accelerated vesting upon the subsequent Involuntary Termination of the
Participant's Service within a specified period following the effective date of
such Change in Control.

         III.     SHARE ESCROW/LEGENDS

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

                                       17
<PAGE>   18

                                    ARTICLE V

                         AUTOMATIC OPTION GRANT PROGRAM

         I.       OPTION TERMS

                  A.  Eligibility and Grant Dates. Option grants shall be made
                      as specified below:

                           1. Each Eligible Director who is first elected or
appointed as a non-employee Board member after the Plan Effective Date shall
automatically be granted, on the date of such initial election or appointment, a
Non-Statutory Option to purchase 20,000 shares of Common Stock. Such option is
referred to below as the "Initial Grant." A non-employee Board member who has
previously been a member of the board of directors of Hyperion Software
Corporation, or who has previously been in the employ of the Corporation (or any
Parent or Subsidiary) or of Hyperion Software Corporation (or any parent or
subsidiary corporation of Hyperion Software Corporation), shall not be eligible
to receive an Initial Grant.

                           2. On each Anniversary Date, each non-employee Board
member who is to continue serving as a non-employee Board member after such
Anniversary Date shall automatically be granted a Non-Statutory Option to
purchase 7,000 shares of Common Stock; provided such individual has served as a
member of the Board or as a member of the board of directors of Hyperion
Software Corporation for at least six (6) months prior to such Anniversary Date.
Such option is referred to below as an "Annual Grant." There shall be no limit
on the number of Annual Grants that any one Eligible Director may receive over
his or her period of Board service. A non-employee Board member who has
previously been in the employ of the Corporation (or any Parent or Subsidiary)
or of Hyperion Software Corporation (or any parent or subsidiary corporation of
Hyperion Software Corporation) shall be eligible to receive Annual Grants. For
purposes of this Section I, the term "Anniversary Date" shall have the following
meanings:

                              (i) In the case of an Eligible Director who was
first elected or appointed as a non-employee Board member prior to the
Corporation's 1998 Annual Meeting of Stockholders, "Anniversary Date" shall mean
August 21 of each year, commencing with the year 1998.

                              (ii) In the case of an Eligible Director who is
first elected as a non-employee Board member at the Corporation's 1998 Annual
Meeting of Stockholders and who previously served as a member of the board of
directors of Hyperion Software Corporation, "Anniversary Date" shall mean each
anniversary of the date when he or she was first elected or appointed as a
member of the board of directors of Hyperion Software Corporation.

                              (iii) In the case of a non-employee Board member
not described in paragraph (i) or (ii) above, "Anniversary Date" shall mean each
anniversary of the date when he or she is first elected or appointed as a member
of the Board.

                                       18
<PAGE>   19
                  B. Exercise Price.

                           1. The exercise price per share shall be equal to one
hundred percent (100%) of the Fair Market Value per share of Common Stock on the
option grant date.

                           2. The exercise price shall be payable in one or more
of the alternative forms authorized under the Discretionary Option Grant
Program. Except to the extent the sale and remittance procedure specified
thereunder is utilized, payment of the exercise price for the purchased shares
must be made on the Exercise Date.

                  C. Option Term. Each option shall have a term of ten (10)
years measured from the option grant date.

                  D. Exercise and Vesting of Options. Each option shall be
immediately exercisable for any or all of the option shares. However, any shares
purchased under an Initial Grant shall be subject to repurchase by the
Corporation, at the exercise price paid per share, upon the Optionee's cessation
of Board service prior to vesting in those shares. Each Initial Grant shall
vest, and the Corporation's repurchase right shall lapse, in four (4) equal and
successive annual installments over the Optionee's period of continued service
as a Board member, with the first such installment to vest upon the Optionee's
completion of one (1) year of Board service measured from the option grant date.
Each Annual Grant shall be vested at all times.

                  E. Effect of Termination of Board Service. The following
provisions shall govern the exercise of any options held by the Optionee at the
time the Optionee ceases to serve as a Board member:

                           (i) The Optionee (or, in the event of Optionee's
death, the personal representative of the Optionee's estate or the person or
persons to whom the option is transferred pursuant to the Optionee's will or
beneficiary designation or in accordance with the laws of descent and
distribution) shall have a twelve (12)-month period following the date of such
cessation of Board service in which to exercise each such option.

                           (ii) During the twelve (12)-month exercise period, an
Initial Grant may not be exercised in the aggregate for more than the number of
vested shares of Common Stock for which the option is exercisable at the time of
the Optionee's cessation of Board service.

                           (iii) Should the Optionee cease to serve as a Board
member by reason of death or Permanent Disability, then all shares at the time
subject to the option shall immediately vest so that such option may, during the
twelve (12)-month exercise period following such cessation of Board service, be
exercised for all or any portion of such shares as fully-vested shares of Common
Stock.

                           (iv) In no event shall the option remain exercisable
after the expiration of the option term. Upon the expiration of the twelve
(12)-month exercise period or (if earlier) upon the expiration of the option
term, the option shall terminate and cease to be outstanding for any vested
shares for which the option has not been exercised. However, the

                                       19
<PAGE>   20
option shall, immediately upon the Optionee's cessation of Board service,
terminate and cease to be outstanding to the extent it is not exercisable for
vested shares on the date of such cessation of Board service.

         II.      CORPORATE TRANSACTION/CHANGE IN CONTROL/HOSTILE TAKE-OVER

                  A. In the event of any Corporate Transaction, the shares of
Common Stock at the time subject to each outstanding option but not otherwise
vested shall automatically vest in full so that each such option shall,
immediately prior to the effective date of the Corporate Transaction, become
fully exercisable for all of the shares of Common Stock at the time subject to
such option and may be exercised for all or any portion of such shares as
fully-vested shares of Common Stock. Immediately following the consummation of
the Corporate Transaction, each automatic option grant shall terminate and cease
to be outstanding, except to the extent assumed by the successor corporation (or
parent thereof).

                  B. In connection with any Change in Control, the shares of
Common Stock at the time subject to each outstanding option but not otherwise
vested shall automatically vest in full so that each such option shall,
immediately prior to the effective date of the Change in Control, become fully
exercisable for all of the shares of Common Stock at the time subject to such
option and may be exercised for all or any portion of such shares as
fully-vested shares of Common Stock. Each such option shall remain exercisable
for such fully-vested option shares until the expiration or sooner termination
of the option term or the surrender of the option in connection with a Hostile
Take-Over.

                  C. Upon the occurrence of a Hostile Take-Over, the Optionee
shall have a thirty (30)-day period in which to surrender to the Corporation
each automatic option held by him or her for a period of at least six (6)
months. The Optionee shall in return be entitled to a cash distribution from the
Corporation in an amount equal to the excess of (i) the Take-Over Price of the
shares of Common Stock at the time subject to the surrendered option (whether or
not the Optionee is otherwise at the time vested in those shares) over (ii) the
aggregate exercise price payable for such shares. Such cash distribution shall
be paid within five (5) days following the surrender of the option to the
Corporation. No approval or consent of the Board shall be required in connection
with such option surrender and cash distribution.

                  D. The grant of options under the Automatic Option Grant
Program 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.

         III.     REMAINING TERMS

                  The remaining terms of each option granted under the Automatic
Option Grant Program shall be the same as the terms in effect for option grants
made under the Discretionary Option Grant Program.

                                       20
<PAGE>   21

                                   ARTICLE VI
                                 MISCELLANEOUS

         I.       FINANCING

                  A. The Plan Administrator may permit any Optionee or
Participant to pay the option exercise price under the Discretionary Option
Grant Program or the purchase price for shares issued under the Stock Issuance
Program by delivering a promissory note payable in one or more installments. The
terms of any such promissory note (including the interest rate and the terms of
repayment) shall be established by the Plan Administrator in its sole
discretion. Promissory notes may be authorized with or without security or
collateral. In all events, the maximum credit available to the Optionee or
Participant may not exceed the sum of (i) the aggregate option exercise price or
purchase price payable for the purchased shares plus (ii) any Federal, state and
local income and employment tax liability incurred by the Optionee or the
Participant in connection with the option exercise or share purchase.

                  B. The Plan Administrator may, in its discretion, determine
that one or more such promissory notes shall be subject to forgiveness by the
Corporation in whole or in part upon such terms as the Plan Administrator may
deem appropriate.

         II.      TAX WITHHOLDING

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

                  B. The Plan Administrator may, in its discretion, provide any
or all holders of Non-Statutory Options or unvested shares of Common Stock under
the Plan (other than the options granted or the shares issued under the
Automatic Option Grant Program) with the right to use shares of Common Stock in
satisfaction of all or part of the Taxes incurred by such holders in connection
with the exercise of their options or the vesting of their shares. Such right
may be provided to any such holder in either or both of the following formats:

                           (i) Stock Withholding: The election to have the
Corporation withhold, from the shares of Common Stock otherwise issuable upon
the exercise of such Non-Statutory Option or the vesting of such shares, a
portion of those shares with an aggregate Fair Market Value equal to the
percentage of the Taxes (not to exceed one hundred percent (100%)) designated by
the holder.

                           (ii) Stock Delivery: The election to deliver to the
Corporation, at the time the Non-Statutory Option is exercised or the shares
vest, one or more shares of Common Stock previously acquired by such holder
(other than in connection with the option exercise or share vesting triggering
the Taxes) with an aggregate Fair Market Value equal to the percentage of the
Taxes (not to exceed one hundred percent (100%)) designated by the holder.

                                       21
<PAGE>   22

         III.     EFFECTIVE DATE AND TERM OF THE PLAN

                  A. The Discretionary Option Grant, Salary Investment and Stock
Issuance Programs shall become effective on the Plan Effective Date and options
may be granted under the Discretionary Option Grant Program from and after the
Plan Effective Date. The Automatic Option Grant Program shall also become
effective on the Plan Effective Date and the initial options under the Automatic
Option Grant Program shall be made to the Eligible Directors at that time.

                  B. The Plan shall serve as the successor to the Predecessor
Plan, and no further option grants shall be made under the Predecessor Plan
after the Plan Effective Date. All options outstanding under the Predecessor
Plan as of such date shall, immediately upon the Plan Effective Date, be
incorporated into the Plan and treated as outstanding options under the Plan.
However, each outstanding option so incorporated shall continue to be governed
solely by the terms of the documents evidencing such option, and no provision of
the Plan shall be deemed to affect or otherwise modify the rights or obligations
of the holders of such incorporated options with respect to their acquisition of
shares of Common Stock.

                  C. One or more provisions of the Plan, including (without
limitation) the option/vesting acceleration provisions of Article II relating to
Corporate Transactions and Changes in Control, may, in the Plan Administrator's
discretion, be extended to one or more options incorporated from the Predecessor
Plan that do not otherwise contain such provisions.

                  D. On June 6, 1996, the Board approved an increase in the
number of shares issuable under the Plan by 1,000,000 shares to 2,286,408
shares, and the Corporation's stockholders approved of such share increase at
the 1996 Annual Meeting of Stockholders. On October 10, 1996, and June 30, 1997,
the Board approved a change in the vesting provisions applicable to Eligible
Directors under the Automatic Option Grant Program and an increase in the number
of shares issuable under the Plan by 750,000 shares to 3,007,577 shares,
respectively, and the Corporation's stockholders approved of such changes at the
1997 Annual Meeting of Stockholders. The provisions in the 1996 and 1997
restatements of the Plan shall apply only to options and stock awards granted
under the Plan from and after the effective date of such restatements. All
options and stock awards granted under the Plan immediately prior to the
effective date of such restatements shall continue to be governed by the terms
and conditions of the Plan (and the instrument evidencing each such option or
stock award) as in effect on the date each such option or stock award was
previously granted, and nothing in the 1996 and 1997 restatements shall be
deemed to affect or otherwise modify the rights or obligations of the holders of
such options or stock awards with respect to the acquisition of shares of Common
Stock thereunder. On July 13, 1998, the Board approved an increase in the number
of shares issuable under the Plan by 5,000,000 shares to 8,007,577 shares, and
the Corporation's stockholders approved such share increase at the 1998 Annual
Meeting of Stockholders. On September 28, 2000, the Board approved an increase
in the number of shares issuable under the Plan by 1,600,000 shares to 9,607,577
shares, and the Corporation's stockholders approved such share increase at the
2000 Annual Meeting of Stockholders.

                                       22
<PAGE>   23
                  E. The Plan shall terminate upon the EARLIEST of (i) September
30, 2005, (ii) the date on which all shares available for issuance under the
Plan shall have been issued pursuant to the exercise of the options or the
issuance of shares (whether vested or unvested) under the Plan or (iii) the
termination of all outstanding options in connection with a Corporate
Transaction. Upon such Plan termination, all options and unvested stock
issuances outstanding on such date shall thereafter continue to have force and
effect in accordance with the provisions of the documents evidencing such
options or issuances.

         IV.      AMENDMENT OF THE PLAN

                  The Board shall have complete and exclusive power and
authority to amend or modify the Plan in any or all respects. However, no such
amendment or modification shall adversely affect the rights and obligations with
respect to options, stock appreciation rights or unvested stock issuances at the
time outstanding under the Plan unless the Optionee or the Participant consents
to such amendment or modification. The Board may not, without the approval of
the Corporation's stockholders, (i) materially increase the number of shares of
Common Stock issuable under the Plan, except for permissible adjustments in the
event of certain changes in the Corporation's capitalization, (ii) materially
modify the requirements for eligibility to participate in the Plan, or (iii)
notwithstanding anything to the contrary elsewhere in the Plan, the Corporation
will not reprice options issued under the Plan by lowering the exercise price of
a previously granted award, by canceling outstanding options and issuing
replacements, or by otherwise replacing existing options with substitute options
with a lower exercise price.

         V.       USE OF PROCEEDS

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

         VI.      REGULATORY APPROVALS

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

                  B. No shares of Common Stock or other assets shall be issued
or delivered under the Plan unless and until there shall have been compliance
with all applicable requirements of Federal and state securities laws, including
the filing and effectiveness of the Form S-8 registration statement for the
shares of Common Stock issuable under the Plan, and all applicable listing
requirements of any stock exchange (or the Nasdaq National Market, if
applicable) on which Common Stock is then listed for trading.

                                       23
<PAGE>   24

         VII.     NO EMPLOYMENT/SERVICE RIGHTS

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

                                       24
<PAGE>   25
                                    APPENDIX

                  The following definitions shall be in effect under the Plan:

                  A. AUTOMATIC OPTION GRANT PROGRAM shall mean the automatic
option grant program in effect under the Plan.

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

                  C. CHANGE IN CONTROL shall mean a change in ownership or
control of the Corporation effected through either of the following
transactions:

                           (i) the acquisition, directly or indirectly, by any
person or related group of persons (other than the Corporation or a person that
directly or indirectly controls, is controlled by, or is under common control
with, the Corporation), of beneficial ownership (within the meaning of Rule
13d-3 of the 1934 Act) of securities possessing more than fifty percent (50%) of
the total combined voting power of the Corporation's outstanding securities
pursuant to a tender or exchange offer made directly to the Corporation's
stockholders which the Board does not recommend such stockholders to accept, or

                           (ii) a change in the composition of the Board over a
period of thirty-six (36) consecutive months or less such that a majority of the
Board members ceases, by reason of one or more contested elections for Board
membership, to be comprised of individuals who either (A) have been Board
members continuously since the beginning of such period or (B) have been elected
or nominated for election as Board members during such period by at least a
majority of the Board members described in clause (A) who were still in office
at the time the Board approved such election or nomination.

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

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

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

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

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

                  G. CORPORATION shall mean Hyperion Solutions Corporation
(formerly known as Arbor Software Corporation), a Delaware corporation.

                                     A - 1
<PAGE>   26

                  H. DISCRETIONARY OPTION GRANT PROGRAM shall mean the
discretionary option grant program in effect under the Plan.

                  I. DOMESTIC RELATIONS ORDER shall mean any judgment, decree or
order (including approval of a property settlement agreement) which provides or
otherwise conveys, pursuant to applicable State domestic relations laws
(including community property laws), marital property rights to any spouse or
former spouse of the Optionee.

                  J. ELIGIBLE DIRECTOR shall mean a non-employee Board member
eligible to participate in the Automatic Option Grant Program in accordance with
the eligibility provisions of Section I of Article V.

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

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

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

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

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

                  N. HOSTILE TAKE-OVER shall mean a change in ownership of the
Corporation effected through the following transaction:

                           (i) the acquisition, directly or indirectly, by any
person or related group of persons (other than the Corporation or a person that
directly or indirectly controls, is controlled by, or is under common control
with, the Corporation) of beneficial ownership (within the meaning of Rule 13d-3
of the 1934 Act) of securities possessing more than fifty percent (50%) of the
total combined voting power of the Corporation's outstanding securities pursuant
to a tender or exchange offer made directly to the Corporation's stockholders
which the Board does not recommend such stockholders to accept, AND

                                     A - 2
<PAGE>   27

                           (ii) more than fifty percent (50%) of the securities
so acquired are accepted from persons other than Section 16 Insiders.

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

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

                           (i) such individual's involuntary dismissal or
discharge by the Corporation for reasons other than Misconduct, or

                           (ii) such individual's voluntary resignation
following (A) a change in his or her position with the Corporation which
materially reduces his or her level of responsibility, (B) a reduction in his or
her level of compensation (including base salary, fringe benefits and
participation in corporate-performance based bonus or incentive programs) by
more than fifteen percent (15%) or (C) a relocation of such individual's place
of employment by more than fifty (50) miles, provided and only if such change,
reduction or relocation is effected by the Corporation without the individual's
consent.

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

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

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

                  T. OPTIONEE shall mean any person to whom an option is granted
under the Discretionary Option Grant, Salary Investment Option Grant or
Automatic Option Grant Program.

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

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

                                     A - 3
<PAGE>   28
                  W. PERMANENT DISABILITY OR PERMANENTLY DISABLED shall mean the
inability of the Optionee or the Participant to engage in any substantial
gainful activity by reason of any medically determinable physical or mental
impairment expected to result in death or to be of continuous duration of twelve
(12) months or more. However, solely for the purposes of the Automatic Option
Grant Program, Permanent Disability or Permanently Disabled shall mean the
inability of the non-employee Board member to perform his or her usual duties as
a Board member by reason of any medically determinable physical or mental
impairment expected to result in death or to be of continuous duration of twelve
(12) months or more.

                  X. PLAN shall mean the Corporation's 1995 Stock Option/Stock
Issuance Plan, as set forth in this document.

                  Y. PLAN ADMINISTRATOR shall mean the particular entity,
whether the Primary Committee, the Board or the Secondary Committee, which is
authorized to administer the Discretionary Option Grant, Salary Investment
Option Grant and Stock Issuance Programs with respect to one or more classes of
eligible persons, to the extent such entity is carrying out its administrative
functions under those programs with respect to the persons under its
jurisdiction.

                  Z. PLAN EFFECTIVE DATE shall mean the date on which the
Underwriting Agreement is executed and the initial public offering price of the
Common Stock is established.

                  AA. PREDECESSOR PLAN shall mean the Corporation's 1992 Stock
Option Plan.

                  BB. PRIMARY COMMITTEE shall mean the committee of two (2) or
more non-employee Board members appointed by the Board to administer the
Discretionary Option Grant, Salary Investment Option Grant and Stock Issuance
Programs with respect to Section 16 Insiders as well as other eligible persons.

                  CC. QUALIFIED DOMESTIC RELATIONS ORDER shall mean a Domestic
Relations Order that would substantially comply with the requirements of Code
Section 414(p) if the Plan were subject to such section. The Plan Administrator
shall have the sole discretion to determine whether a Domestic Relations Order
is a Qualified Domestic Relations Order.

                  DD. SALARY INVESTMENT PROGRAM shall mean the salary reduction
grant program in effect under the Plan.

                  EE. SECONDARY COMMITTEE shall mean a committee of one (1) or
more Board members appointed by the Board to administer the Discretionary Option
Grant, Salary Investment Option Grant and Stock Issuance Programs with respect
to eligible persons other than Section 16 Insiders.

                  FF. SECTION 16 INSIDER shall mean an officer or director of
the Corporation subject to the short-swing profit liabilities of Section 16 of
the 1934 Act.

                  GG. SECTION 12(g) REGISTRATION DATE shall mean the first date
on which the Common Stock is registered under Section 12(g) of the 1934 Act.

                                     A - 4
<PAGE>   29

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

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

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

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

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

                  MM. TAKE-OVER PRICE shall mean the GREATER of (i) the Fair
Market Value per share of Common Stock on the date the option is surrendered to
the Corporation in connection with a Hostile Take-Over or (ii) the highest
reported price per share of Common Stock paid by the tender offeror in effecting
such Hostile Take-Over. However, if the surrendered option is an Incentive
Option, the Take-Over Price shall not exceed the clause (i) price per share.

                  NN. TAXES shall mean the Federal, state and local income and
employment tax liabilities incurred by the holder of Non-Statutory Options or
unvested shares of Common Stock in connection with the exercise of those options
or the vesting of those shares.

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

                  PP. UNDERWRITING AGREEMENT shall mean the agreement between
the Corporation and the underwriter or underwriters managing the initial public
offering of the Common Stock.

                                     A - 5

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