Document:

Exhibit 4.7

                              LOCALEYES CORPORATION
                         RESTATED 1996 STOCK OPTION PLAN

1.        PURPOSE

          This 1996 Stock  Option  Plan (the  "Plan") is intended to reward past
service by, increase  incentive for and encourage stock ownership on the part of
selected key employees of, and independent  contractors  retained by,  LocalEyes
Corporation  (the  "Corporation")  or other  corporations  which  are or  become
subsidiaries of the  Corporation.  It is also the purpose of the Plan to provide
such  employees and  independent  contractors  with a proprietary  interest,  or
increase their  proprietary  interest,  in the Corporation and its subsidiaries,
and to  encourage  them to  continue  in the employ of or to be  retained by the
Corporation or the  subsidiaries.  It is intended that certain  options  granted
pursuant to the Plan shall constitute  incentive stock options ("incentive stock
options")  within the meaning of Section  422 of the  internal  Revenue  Code of
1986, as amended (the "Code"),  and that certain options granted pursuant to the
Plan  shall  not  constitute  incentive  stock  options   ("non-qualified  stock
options").  The word  "subsidiaries" as used in the Plan shall mean corporations
in which the Corporation owns, directly or indirectly, 50 percent or more of the
voting stock, in accordance with Section 424(f) of the Code.

2.        STOCK

          The stock subject to the Plan shall be the shares of the Corporation's
authorized but unissued common stock (the "Common Stock").  The aggregate number
of shares which may be issued under the Plan shall not exceed 1,554,410, subject
to such  adjustments  as may be required  pursuant  to Section 6 hereof.  In the
event that any  outstanding  option under the Plan shall expire or be terminated
for any reason,  the shares of the Common  Stock  allocated  to the  unexercised
portion of such option  shall again  become  available  to be made subject to an
option under the Plan.

3.      ADMINISTRATION

        The Plan  shall be  administered  by the  Board  of  Directors  of the
Corporation  (the  "Board").  The  Board  shall be  authorized,  subject  to the
provisions of the Plan, to establish  such rules and  regulations as it may deem
appropriate  for  the  proper  administration  of the  Plan,  and to  make  such
determinations  under,  and such  interpretations  of, and to take such steps in
connection  with,  the Plan or the  options  granted  thereunder  as it may deem
necessary or advisable.  The interpretation and construction by the Board of any
provisions of the Plan or any option  granted  pursuant  thereto shall be final,
binding and  conclusive.  No member of the Board shall be liable for any action,
failure to act,  determination or interpretation made in good faith with respect
to the Plan or any transaction thereunder.

          Notwithstanding  the foregoing,  the Board shall have the authority to
delegate its duty to administer  the Plan to a committee of the Board  appointed
by the Board. In addition, as of the date of the first registration of an equity
security of the Corporation  under Section 12 of the Securities  Exchange Act of
1934 (the "Exchange  Act"), the Plan shall be administered in such manner as the
Board shall  determine in order to assure that the Plan complies with Rule 16b-3
of the Securities and Exchange Commission ("Rule 16b-3") if the Board shall deem
such   compliance   necessary  or   desirable.   Any   committee   charged  with
administration of the Plan shall have all the powers and protections  authorized
to the Board under the Plan, except those powers set forth in Section 14 hereof,
until the Board shall decide otherwise.

4.        ELIGIBILITY AND AWARD OF OPTIONS

          The Board shall have full and final  authority in its  discretion,  at
any time and from time to time, to grant or authorize the granting of options to
such officers and other key employees of and independent contractors retained by
the Corporation or its subsidiaries,  whether or not members of the Board, as it
may  select,  and for such  numbers of shares as it shall  designate.  The Board
shall have frill and final authority in its discretion to determine, in the case
of officers and other key  employees,  whether  such options  shall be incentive
stock options or non-qualified stock options and whether incentive stock options
and non-qualified  stock options shall be awarded pursuant to separate grants or
in conjunction.  To the extent that the aggregate fair market value  (determined
as of the date on which the option is granted) of the Common  Stock with respect
to which incentive stock options granted to an officer or other key employee are
exercisable  for the first  time by such  individual  during any  calendar  year
(under all incentive  stock option plans of his or her employer  corporation and
its parent and subsidiary  corporations)  exceeds $100,000,  such options (taken
into  account  in the order in which  they were  granted)  shall be  treated  as
non-qualified  stock options.  Persons selected by the Board who are prospective
employees  of or  independent  contractors  retained by the  Corporation  or its
subsidiaries shall be eligible to receive non-qualified stock options; provided,
however,  that,  in the case of  prospective  employees,  such options  shall be
subject  to  such  persons'  becoming   employees  of  the  Corporation  or  its
subsidiaries.  All  options  granted  under  the Plan  shall be  subject  to the
Corporation's  receipt of adequate  consideration in accordance with Section 409
of the California General Corporation Law.

          The date  which an option  shall be  granted  shall be the date of the
Board's  authorization  of such grant or such later date as may be determined by
the Board at the time such grant is  authorized.  Any  individual  may hold more
than one option.

5.        TERMS AND CONDITIONS OF OPTIONS

          Stock  options  granted  pursuant  to the Plan shall be  evidenced  by
agreements in such form as the Board shall  determine,  which  agreements  shall
comply with the following terms and conditions:

          (A)      Optionee's Retention or Employment

                    Each  option  agreement  shall  state  that it shall  not be
construed as granting an optionee who is an independent  contractor any right to
continued  retention by or employment  with, or an optionee who is or becomes an
employee  any  right  to  continued  employment  with,  the  Corporation  or any
subsidiary and that,  subject to any written  retention or employment  agreement
between the optionee and the Corporation or any  subsidiary,  such retention and
employment shall be terminable at will by the Corporation or such subsidiary.

          (B)      Number of Shares

                    Each  option  agreement  shall state the number of shares of
the Common Stock to which the option pertains.

          (C)      Option Price

                    Each  option  agreement  shall  state the  option  price per
share,  which shall be not less than 85 percent,  in the case of a non-qualified
stock option, and 100 percent,  in the case of an incentive stock option, of the
fair  market  value of a share of the  Common  Stock on the date the  option  is
granted.  Notwithstanding the foregoing, the option price per share of an option
granted  to a person  who,  on the date of such  grant  and in  accordance  with
Section 424(d) of the Code,  owns stock  possessing  more than 10 percent of the
total combined  voting power of all classes of stock of the  Corporation  (or of
its parent or subsidiary  corporation) shall be not less than 110 percent of the
fair  market  value of a share of the  Common  Stock on the date the  option  is
granted.  Fair  market  value  shall mean (i) the average of the closing bid and
asked prices of the Common Stock quoted in the  Over-The-Counter  Market Summary
or the closing price quoted on any exchange on which the Common Stock is listed,
whichever is applicable,  as published in the Western Edition of The Wall Street
Journal for the date an option is granted or, if no report is available for such
date, for the next preceding date for which such a report is available;  or (ii)
if the Common Stock is not traded Over-The-Counter or on an exchange, the amount
determined  in good  faith by the Board for the date an  option  is  granted  by
applying the rules and principles of valuation set forth in Treasury  Regulation
Section  20.2031-2,  relating to the valuation of stocks for purposes of Section
2031 of the Code.

           (D)     Medium and Time of Payment

                   The option  price  shall be payable  upon the  exercise of an
option in legal  tender of the United  States (in cash or by  certified  check).
Upon receipt of payment,  the Corporation shall promptly deliver to the optionee
(or the person  entitled to exercise the option) a certificate  or  certificates
for the shares of the Common Stock to which the option pertains.

          (E)      Term and Exercise of Option

                    Each  option  shall  state the time or times when it becomes
exercisable  and, subject to the other provisions of the Plan, the time or times
when it expires,  both of which  provisions shall be determined by the Board. To
the extent that an option has become  exercisable,  it may be exercised in whole
or in such lesser amount as authorized by the option agreement.  If exercised in
part,  the  unexercised  portion of an option  shall  continue to be held by the
optionee and may thereafter be exercised as provided in the option agreement and
herein. Notwithstanding any other provision of the Plan, no option granted under
the Plan shall be  exercisable  after the  expiration of ten (10) years from the
date of its grant,  and no option granted under the Plan to a person who, on the
date of such grant and in accordance with Section 424(d) of the Code, owns stock
possessing  more than 10  percent  of the  total  combined  voting  power of all
classes of stock of the Corporation (or of its parent or subsidiary corporation)
shall be exercisable after the expiration of five (5) years from the date of its
grant.

           (F)     Termination of Employment or Retention

                   (i) If an  optionee  who is an  employee  shall  cease  to be
employed,  or an optionee  who is an  independent  contractor  shall cease to be
retained  (other than to become an employee),  by the Corporation and any of its
subsidiaries for any reason other than death or permanent and total  disability,
his or her option may be exercised within a period,  determined by the Board and
set forth in the  relevant  option  agreement,  not longer than three (3) months
after the date of such cessation of employment or retention, as the case may be,
but only to the  extent  such  option  was  exercisable  under the terms of such
option agreement on such date.

                   (ii)If  an  optionee  who is an  employee  shall  cease to be
employed,  or an optionee  who is an  independent  contractor  shall cease to be
retained,  by the Corporation and any of its subsidiaries by reason of permanent
and  total  disability,  his or her  option  may be  exercised  within a period,
determined  by the Board and set forth in the  relevant  option  agreement,  not
longer  than one (1) year  after the date of such  cessation  of  employment  or
retention,  as the  cage  may  be,  but  only  to the  extent  such  option  was
exercisable under the terms of such option agreement on such date.

                    (iii) If an  optionee  should die while in the employ of, or
while  retained by, the  Corporation  or any subsidiary or within the period not
longer  than three (3) months or one (1) year  referred to above,  whichever  is
applicable, his or her option may be exercised, to the extent it was exercisable
under  the  terms of the  relevant  option  agreement  immediately  prior to the
optionee's  death, at any time within a period,  determined by the Board and set
forth  in such  option  agreement,  not  longer  than  one (1)  year  after  the
optionee's death by the optionee's  executors or administrators or the person or
persons to whom the option is transferred  by will or by the applicable  laws of
descent and distribution. No transfer of an option by the optionee by will or by
the applicable laws of descent and  distribution  shall be effective  unless the
Corporation  shall have been  furnished with written  notice  thereof,  and such
other  evidence as the Board may deem necessary to establish the validity of the
transfer and the  acceptance of the  transferee or  transferees of the terms and
conditions  of  the  option,  and to  establish  compliance  with  any  laws  or
regulations pertaining thereto.

          Permanent and total disability  shall mean an optionee's  inability to
engage  in  any  substantial   gainful  activity  by  reason  of  any  medically
determinable  physical or mental  impairment  which can be expected to result in
death or which has lasted or can be expected to last for a continuous  period of
not less than twelve (12) months,  in  accordance  with Section  22(e)(3) of the
Code.

           (G)     Other Provisions

                   The option agreements authorized under the Plan shall contain
such other  provisions,  including,  without  limitation,  restrictions upon the
exercise of the option,  restrictions  on the  transferability  and/or  right to
retain  shares of the Common Stock  received  upon the exercise of options,  and
restrictions required by any applicable securities laws, as the Board shall deem
advisable.

6.        CHANGES IN CAPITALIZATION, REORGANIZATIONS AND OTHER EVENTS

          Subject to any action by the stockholders of the Corporation  required
by law,  the number of shares of the Common  Stock  covered by the Plan and each
outstanding  option,  and the price per share thereof,  shall be proportionately
adjusted  for any  increase or decrease in the number of issued and  outstanding
shares of the Common Stock  resulting  from a subdivision  or  consolidation  of
shares or the payment of a stock  dividend (but only on the Common Stock) or any
other  increase or decrease  in the number of such shares  effected  without the
receipt of  consideration by the Corporation;  provided,  however,  that no such
adjustment  shall result in the issuance of any fractional  shares of the Common
Stock.  The  issuance  of shares of the  Common  Stock  upon the  conversion  of
convertible securities shall be treated as an issuance for which the Corporation
receives consideration for this purpose.  Adjustments pursuant to this paragraph
shall be made by the Board,  whose  determinations  shall be final,  binding and
conclusive.

          A  dissolution  or  liquidation  of  the  Corporation,   a  merger  or
consolidation  in which the  Corporation  is not the surviving  corporation or a
change in control of the Corporation shall affect each outstanding option in the
manner set forth in the applicable option agreement.

          The grant of an option  pursuant  to the Plan  shall not affect in any
way  the   right   or   power   of  the   Corporation   to   make   adjustments,
reclassifications,  reorganizations  or  changes  in  its  capital  or  business
structure or to merge, consolidate, dissolve, liquidate, sell or transfer all or
any part of its business or assets.

 7.       NONASSIGNABILITY

          No option  granted under the Plan shall be assignable or  transferable
by an optionee except by will or the laws of descent and distribution. An option
granted under the Plan shall be  exercisable,  during the  optionee's  lifetime,
only by the optionee.

8.         NO OBLIGATION TO EXERCISE OPTION

          The granting of an option shall impose no obligation upon the optionee
or a transferee of the optionee to exercise such option.

9.         RIGHTS AS A STOCKHOLDER

          An optionee or a transferee  of an optionee  shall have no rights as a
stockholder with respect to any shares of the Common Stock covered by his or her
option until the date of the issuance of a stock  certificate to the optionee or
transferee for such shares. No adjustment shall be made for dividends  (ordinary
or   extraordinary,   whether  in  cash,   securities  or  other   property)  or
distributions  or other  rights for which the  record  date is prior to the date
such stock certificate is issued, except as provided in Section 6.

10.        MODIFICATION, EXTENSION AND RENEWAL OF OPTIONS

           Subject to the terms and conditions and within the limitations of the
Plan, the Board may modify,  extend,  renew or accelerate the  exercisability of
outstanding options granted under the Plan. Furthermore,  the Board may, subject
to any applicable  provisions of the Plan,  upon the  cancellation of previously
granted higher priced options, regrant options at a lower price. Notwithstanding
the foregoing, however, no modification or cancellation and regrant of an option
shall,  without the written consent of the optionee,  alter or impair any rights
or obligations under any option theretofore granted under the plan.

11.        USE OF PROCEEDS

          The  proceeds  received  from the sale of shares of the  Common  Stock
pursuant  to the  exercise of options  granted  under the Plan shall be used for
general corporate purposes.

12.       APPROVAL OF STOCKHOLDERS

          Options  granted  under the Plan shall be subject to  approval  of the
Plan by the stockholders of the Corporation in accordance with Section 422(b)(l)
of the Code. No option granted hereunder may become exercisable unless and until
such approval is obtained. In the event an equity security of the Corporation is
registered  under  Section  12 of the  Exchange  Act,  the Plan  shall  again be
submitted  for approval by the  stockholders  for purposes of Rule 1 6b-3 and in
accordance  with the provisions of such Rule if the Board shall deem  compliance
with such Rule necessary or desirable..

13.       TERM OF PLAN

          The Plan is effective June 1, 1996,  unless terminated sooner pursuant
to Section 14, shall remain in effect until the earlier of the close of business
on May 31, 2006,  or when all the shares of the Common Stock subject to or which
may become  subject to the Plan have been  issued  upon the  exercise of options
granted under the Plan.

14.       TERMINATION OR AMENDMENT OF THE PLAN

          The Board may from time to time suspend,  discontinue or terminate the
Plan or revise or amend it in any respect whatsoever; provided, however, that no
such action of the Board shall:

          (A) without the consent of the optionee, alter or impair any rights or
obligations under any option theretofore granted under the Plan;

          (B) without the approval of the  stockholders  of the  Corporation  in
accordance with Section 422(b)( 1) of the Code, increase the aggregate number of
shares of the Common Stock which may be issued under  options  granted under the
Plan (except as may be effected pursuant to the provisions of Section 6);

          (C) without the approval of the  stockholders  of the  Corporation  in
accordance  with Section  422(b)(l) of the Code,  change the  designation of the
employees  or class of employees  eligible to receive  incentive  stock  options
under the Plan;

          (D) as of the date of the first  registration of an equity security of
the Corporation under Section 12 of the Exchange Act and if the Board shall deem
compliance with Rule 16b-3  necessary or desirable,  without the approval of the
stockholders  of the  Corporation  for purposes of Rule I 6b-3 and in accordance
with the provisions of such Rule,  materially  increase the benefits accruing to
participants under the Plan,  materially increase the number of securities which
may be  issued  under  the Plan or  materially  modify  the  requirements  as to
eligibility for participation in the Plan; or

          (E) without such approval by the  stockholders  of the  Corporation as
shall be  necessary  in the  opinion of counsel,  otherwise  amend or modify the
Plan.Exhibit 4.6

                                 QUACKWARE, INC.

                         1999 STOCK COMPENSATION PROGRAM

                  1.  Purpose.   This  1999  STOCK  COMPENSATION   PROGRAM  (the
"Program") is intended to secure for Quackware,  Inc., a California  corporation
(the  "Company"),  its  subsidiaries,  and its stockholders the benefits arising
from  ownership of the  Company's  common  stock (the  "Common  Stock") by those
selected  individuals  of  the  Company  and  its  subsidiaries,   who  will  be
responsible for the future growth of such corporations.  The Program is designed
to help attract and retain  superior  personnel  for  positions  of  substantial
responsibility with the Company and its subsidiaries, and to provide individuals
with an additional  incentive to contribute to the success of the  corporations.
Nothing  contained  herein shall be construed to amend or terminate any existing
options,  whether  pursuant to any existing  plans or  otherwise  granted by the
Company.

                  2. Elements of the Program.  In order to maintain  flexibility
in the award of stock  benefits,  the Program is composed  of seven  parts.  The
first part is the Incentive Stock Option Plan (the "Incentive Plan") under which
are granted incentive stock options (the "Incentive  Options").  The second part
is the Non-Qualified Stock Option Plan (the "Nonqualified Plan") under which are
granted nonqualified stock options (the "Nonqualified  Options"). The third part
is the  Restricted  Share Plan (the  "Restricted  Plan") under which are granted
restricted  shares  of Common  Stock.  The  fourth  part is the  Employee  Stock
Purchase Plan (the "Stock Purchase  Plan").  The fifth part is the  Non-Employee
Director Stock Option Plan (the "Directors  Plan") under which grants of options
to purchase shares of Common Stock may be made to non-employee  directors of the
Company.  The sixth part is the Stock Appreciation  Rights Plan (the "SAR Plan")
under which SARs (as defined therein) are granted. The seventh part is the Other
Stock Rights Plan (the "Stock Rights  Plan") under which (i) units  representing
the equivalent of shares of Common Stock (the "Performance Shares") are granted;
(ii) payments of  compensation in the form of shares of Common Stock (the "Stock
Payments")  are  granted;  and (iii)  rights to receive cash or shares of Common
Stock  based on the value of  dividends  paid with  respect to a share of Common
Stock (the "Dividend  Equivalent  Rights") are granted.  The Incentive Plan, the
Nonqualified  Plan, the Restricted  Plan, the Stock Purchase Plan, the Directors
Plan, the SAR Plan and the Stock Rights Plan are included herein as Part I, Part
II,  Part III,  Part IV,  Part V, Part VI and Part  VII,  respectively,  and are
collectively  referred to herein as the "Plans." The grant of an option,  SAR or
restricted  share or rights to purchase  shares under one of the Plans shall not
be  construed  to prohibit the grant of an option,  SAR or  restricted  share or
rights to purchase shares under any of the other Plans.

                  3.  Applicability  of  General  Provisions.  Unless  any  Plan
specifically  indicates  to the  contrary,  all Plans  shall be  subject  to the
General Provisions of the Program set forth below.

                  4.   Administration   of  the  Plans.   The  Plans   shall  be
administered,   construed,  governed,  and  amended  in  accordance  with  their
respective terms.

                  GENERAL PROVISIONS OF STOCK INCENTIVE PROGRAM

                  Article 1.  Administration.  The Program shall be administered
by the Company's Board of Directors (the "Board"). If an award under the Program
is to be made to an  "Executive  Officer"  as  defined in the  Exchange  Act (as
hereinafter  defined),  it must be approved if the Company has a class of equity
securities  registered  under  Section 12 or 15(d) of the  Exchange  Act, by the
Board or by a committee  of the Board,  that is  composed  solely of two or more
directors  who are  "Non-Employee  Directors"  within the  meaning of Rule 16b-3
promulgated  pursuant to the  Securities  Exchange Act of 1934,  as amended (the
"Exchange Act").  The members of the Board,  such committee of the Board or such
other persons appointed to administer the Program, when acting to administer the
Program, are herein collectively referred to as the "Program Administrators." To
the extent  permitted under the Exchange Act, the Internal Revenue Code of 1986,
as amended (the "Code") or any other applicable law, the Program Administrators,
shall  have the  authority  to  delegate  any and all  power  and  authority  to
administer  and operate the Program  hereunder  to such person or persons as the
Program  Administrators  deems appropriate which if formed may be referred to by
such title  specified by the Board.  Subject to the  foregoing  limitations,  as
applicable,  the Board may from time to time remove  members from the committee,
fill all vacancies on the committee,  however caused,  and may select one of the
members of the committee as its Chairman.

                  The Program  Administrators  shall hold meetings at such times
and places as they may  determine  and as  necessary  to approve  all grants and
other  transactions  under the Program as required under Rule 16b-3(d) under the
Exchange Act, shall keep minutes of their meetings,  and shall adopt, amend, and
revoke such rules and  procedures  as they may deem  proper with  respect to the
Program.  Any action of the  Program  Administrators  shall be taken by majority
vote or the unanimous written consent of the Program Administrators.

                  Article 2. Authority of Program Administrators. Subject to the
other provisions of this Program,  and with a view to effecting its purpose, the
Program  Administrators  shall have sole  authority,  in their sole and absolute
discretion,  (a) to construe and interpret the Program;  (b) to define the terms
used herein;  (c) to determine the  individuals  to whom options and  restricted
shares and rights to purchase shares shall be granted under the Program;  (d) to
determine the time or times at which options and  restricted  shares,  rights to
purchase  shares or other  awards  shall be granted  under the  Program;  (e) to
determine  the number and type of shares or  securities  subject to each option,
restricted  share,  purchase  right or other  award,  the duration of each award
granted under the Program, and the price of any share purchase; (f) to determine
all of the other terms and conditions of options,  restricted  shares,  purchase
rights and other awards  granted  under the  Program;  and (g) to make all other
determinations  necessary or advisable for the administration of the Program and
to do everything  necessary or appropriate to administer the Program;  provided,
however,  that the  Board  shall  establish  the  price  for all  shares  issued
hereunder.  All  decisions,  determinations,  and  interpretations  made  by the
Program  Administrators  shall be binding and conclusive on all  participants in
the Program (the "Plan Participants") and on their legal representatives,  heirs
and beneficiaries.

                  Article 3.  Maximum  Number of Shares  Subject to the Program.
Subject to the provisions of Article 7, the maximum  aggregate  number of shares
of Common Stock subject to the Program shall be 810,650  shares.  Subject to the
limitation  contained  in Section 2 of Part 1, the  maximum  number of shares of
Common Stock issuable pursuant to the Program to any single Program  Participant
in any given fiscal year shall be 75,000.  shares. The Board of Directors of the
Company shall make  recommendations to the Program  Administrators  from time to
time with respect to the allocation of the shares reserved under the Program for
the  directors,   officers,   employees  and  agents  of  the  Company  and  its
subsidiaries.  The  shares of Common  Stock  issued  under  the  Program  may be
authorized but unissued  shares,  shares issued and reacquired by the Company or
shares  purchased  by the  Company  on the open  market.  If any of the  options
granted  under the Program  expire or terminate  for any reason before they have
been  exercised in full,  the  unpurchased  shares  subject to those  expired or
terminated  options  shall  cease to reduce the number of shares  available  for
purposes  of the  Program.  If the  conditions  associated  with  the  grant  of
restricted  shares are not achieved within the period specified for satisfaction
of the applicable  conditions,  or if the restricted  share grant terminates for
any reason before the date on which the conditions must be satisfied, the shares
of Common Stock associated with such restricted shares shall cease to reduce the
number of shares available for purposes of the Program.

                  The  proceeds  received  by the  Company  from the sale of its
Common Stock pursuant to the exercise of options,  transfer of restricted shares
or issuance of stock purchased under the Program,  if in the form of cash, shall
be added to the Company's general funds and used for general corporate purposes.

                  Notwithstanding  anything to the contrary in this Program,  at
no time that the  Program  is  subject  to  qualification  under the  California
Corporations Code shall the total number of shares issuable upon exercise of all
outstanding  options and the total number of shares provided for under any stock
bonus or  similar  plan of the  Company  exceed  the  applicable  percentage  as
calculated in accordance  with the conditions and exclusions of Rule  260.140.45
of the  California  Code of  Regulations,  based on the  number of shares of the
Company which are outstanding at the time the  calculation is made,  unless such
limitation is approved in accordance with such Rule.

                  Article 4. Eligibility and Participation. Officers, employees,
directors   (whether  employee   directors  or  non-employee   directors),   and
independent  contractors  or agents of the Company or its  subsidiaries  who are
responsible for or contribute to the management,  growth or profitability of the
business of the Company or its  subsidiaries  shall be eligible for selection by
the Program  Administrators  to participate in the Program.  However,  awards of
Incentive  Options under the Incentive  Plan may be granted only to employees of
the Company or its subsidiaries. An employee may be granted Nonqualified Options
under the Program; provided, however, that the grant of Nonqualified Options and
Incentive Options to an employee shall be the grant of separate options and each
Nonqualified  Option and each Incentive Option shall be specifically  designated
as such in accordance  with applicable  provisions of the Treasury  Regulations.
Employees of the Company or its subsidiaries whose customary  employment for tax
purposes  is at  least  twenty  (20)  hours  per week  and  more  than  five (5)
consecutive  months in any calendar year, and who own less than 5% of the Common
Stock,  shall be eligible to  participate  in the Employee  Stock Purchase Plan.
Consultants or advisors of the Company or its subsidiaries  shall be eligible to
receive awards under the Program, provided that such awards would be exempt from
registration under Rule 701 of the Securities Act of 1933, during such time that
offers of securities  by the Company are eligible for exemption  under Rule 701,
or that such award would be eligible for  registration  on Form S-8, during such
time that offers of  securities to employees  under an employee  benefit plan of
the Company are eligible for registration on Form S-8.

                  The term "subsidiary" as used herein means any company,  other
than the Company, in an unbroken chain of companies,  beginning with the Company
if, at the time of any grant  hereunder,  each of the companies,  other than the
last company in the unbroken chain,  owns stock  possessing more than 50% of the
total  combined  voting  power  of all  classes  of  stock  in one of the  other
companies in such chain.

                  Article 5.  Effective  Date and Term of  Program.  The Program
shall  become  effective  upon its  adoption  by the Board of  Directors  of the
Company subject to approval of the Program by a majority of the voting shares of
the Company voting in person or by proxy at a meeting of stockholders, in either
case  following  adoption of the Program by the Board of  Directors,  which vote
shall be taken or consent granted within 12 months of adoption of the Program by
the  Company's  Board of Directors.  The Program shall  continue in effect for a
term of 10 years  unless  sooner  terminated  under  Article 8 of these  General
Provisions.

                  Article 6. Fair Market  Value.  As used in the Program,  "Fair
Market  Value"  shall  mean,  as of any  date,  the  value of the  Common  Stock
determined  by the Program  Administrators  on the basis of such factors as they
deem appropriate;  provided,  however,  that, if the Common Stock is traded on a
national  securities  exchange or a national market system, Fair Market Value on
any day shall be deemed to be the closing  sales price (or, if no reported  sale
takes place on such day, the mean of the  reported bid and asked  prices) of the
Common Stock on such day on the  principal  such  exchange,  or, if the stock is
included on the composite  tape,  the composite  tape. In each case, the Program
Administrators'  determination  of Fair  Market  Value shall be  conclusive  and
binding on the Company and the Plan Participants.

                  Article 7.  Adjustments.  If the outstanding  shares of Common
Stock are  increased,  decreased,  changed  into,  or exchanged  for a different
number  or  kind  of  shares  or  securities   through  merger,   consolidation,
combination,   exchange  of  shares,  other  reorganization,   recapitalization,
reclassification,  stock  dividend,  stock  split or  reverse  stock  split,  an
appropriate and proportionate adjustment shall be made in the maximum number and
kind of shares as to which  options and  restricted  shares may be granted under
this Program. A corresponding  adjustment changing the number and kind of shares
allocated to unexercised options,  restricted shares, or portions thereof, which
shall have been granted prior to any such change,  shall  likewise be made.  Any
such  adjustment  in  outstanding  options  shall be made without  change in the
aggregate  purchase price  applicable to the unexercised  portion of the option,
but with a corresponding adjustment in the price for each share or other unit of
any security covered by the option.

                  Article 8.  Termination and Amendment of Program.  The Program
shall terminate ten (10) years from the date the Program is adopted by the Board
of Directors,  or, if applicable,  the date a particular Plan is approved by the
stockholders,  whichever is earlier,  or shall terminate at such earlier time as
the Board of Directors may so determine.  No options or restricted  shares shall
be granted and no stock shall be sold and purchased under the Program after that
date.  Subject  to the  limitation  contained  in  Article  9 of  these  General
Provisions, the Program Administrators may at any time amend or revise the terms
of the Program, including the form and substance of the option, restricted share
and stock purchase  agreements to be used  hereunder;  provided,  however,  that
without approval by the  stockholders of the Company  representing a majority of
the voting power (as  contained  in Article 5 of these  General  Provisions)  no
amendment or revision shall (a) increase the maximum  aggregate number of shares
that may be sold or  distributed  pursuant to options  granted or stock sold and
purchased  under Part I or Part IV, except as permitted under Article 7 of these
General  Provisions;  (b) change the  minimum  purchase  price for shares  under
Section 4 of Part I or the Purchase Price for shares under Part IV; (c) increase
the maximum term  established  under Parts I or IV for any option or  restricted
share;  (d) permit the granting of an option,  or right to purchase shares under
Parts I or IV to anyone  other  than as  provided  in  Article 4 of the  General
Provisions; (e) change the term of Parts I or IV described in Article 5 of these
General  Provisions;  or (f) materially  increase the benefits  accruing to Plan
Participants under Parts I or IV of the Program.

                  Article  9.  Prior  Rights  and  Obligations.   No  amendment,
suspension,  or  termination  of the Program  shall,  without the consent of the
individual who has received an option or restricted share or who has purchased a
specified  share  or  shares  under  Part  IV,  alter  or  impair  any  of  that
individual's  rights or obligations under any option or restricted share granted
or  shares  sold and  purchased  under  the  Program  prior  to that  amendment,
suspension, or termination.

                  Article 10. Privileges of Stock Ownership. Notwithstanding the
exercise  of any  option  granted  pursuant  to the terms of this  Program,  the
achievement of any conditions specified in any restricted share granted pursuant
to the terms of this Program or the election to purchase any shares  pursuant to
the  terms of this  Program,  no  individual  shall  have any of the  rights  or
privileges  of a  stockholder  of the  Company in respect of any shares of stock
issuable upon the exercise of his or her option,  the satisfaction of his or her
restricted share conditions or the sale, purchase and issuance of such purchased
shares  until  certificates   representing  the  shares  have  been  issued  and
delivered.  No shares shall be required to be issued and delivered upon exercise
of any option, satisfaction of any conditions with respect to a restricted share
or a purchaser under Part IV unless and until all of the requirements of law and
of all regulatory agencies having jurisdiction over the issuance and delivery of
the securities shall have been fully complied with.

                  Article  11.  Reservation  of  Shares  of  Common  Stock.  The
Company,  during the term of this  Program,  will at all times  reserve and keep
available  such number of shares of its Common Stock as shall be  sufficient  to
satisfy the requirements of the Program. In addition, the Company will from time
to time,  as is necessary to accomplish  the purposes of this  Program,  seek or
obtain from any regulatory agency having jurisdiction any requisite authority in
order to issue and sell shares of Common Stock  hereunder.  The inability of the
Company to obtain from any regulatory  agency having  jurisdiction the authority
deemed by the Company's  counsel to be necessary to the lawful issuance and sale
of any shares of its stock  hereunder shall relieve the Company of any liability
in respect  of the  nonissuance  or sale of the stock as to which the  requisite
authority shall not have been obtained.

                  Article  12. Tax  Withholding.  The  exercise of any option or
restricted  share granted or the sale and issuance of any shares to be purchased
under this Program are subject to the condition  that if at any time the Company
shall determine, in its discretion,  that the satisfaction of withholding tax or
other  withholding  liabilities  under any state or federal law is  necessary or
desirable  as a  condition  of, or in  connection  with,  such  exercise  or the
delivery  or  purchase  of shares  pursuant  thereto,  then in such  event,  the
exercise  of the  option or  restricted  share or the sale and  issuance  of any
shares to be purchased shall not be effective unless such withholding shall have
been  effected  or  obtained  in a  manner  acceptable  to the  Company.  At the
Company's  sole and absolute  discretion,  the Company  may,  from time to time,
accept shares of the  Company's  Common Stock subject to one of the Plans as the
source of payment for such liabilities.

                  Article 13.  Compliance  with Law. It is the express intent of
the  Company  that this  Program  complies in all  respect  with all  applicable
provisions  of state and  federal  law,  including  without  limitation  Section
25102(o)  of the  California  Corporations  Code to the extent  such  Section is
applicable to the Company. It is the express intent of the Company that when any
equity  security  of the  Company is  registered  pursuant  to Section 12 of the
Exchange  Act,  this  Program  shall  comply  in all  respects  with  applicable
provisions  of the Rule  16b-3 or Rule  16a-1(c)(3)  under the  Exchange  Act in
connection  with any  grant  of  awards  to,  or  other  transaction  by, a Plan
Participant  who is  subject  to  Section 16 of the  Exchange  Act  (except  for
transactions exempted under alternative Exchange Act rules). Accordingly, if any
provision of the Program or any agreement  relating to any award thereunder does
not  comply  with Rule 16b-3 or Rule  16a-1(c)(3)  or  Section  25102(o)  of the
California  Corporations Code as then applicable to any such  transaction,  such
provision will be construed or deemed amended to the extent necessary to conform
to the  applicable  requirements  of Rule 16b-3 or Rule  16a-1(c)(3)  or Section
25102(o) of the California Corporations Code so that such Plan Participant shall
avoid  liability  under  Section 16(b) and the Program shall comply with Section
25102(o) as then applicable to any such transaction.  Unless otherwise  provided
in any grant or award to any  person  who is or may  thereafter  be  subject  to
Section 16 of the  Exchange  Act,  the  approval  of such  grant or award  shall
include  the  approval  of the  disposition  of the  Company of  Company  equity
securities  for the  purposes  of  satisfying  the  payment of the  exercise  or
purchase  price or tax  withholding  obligations  related to such grant or award
within the meaning of Rules 16a-1(c)(3) and 16b-3(e).

                  Article 14. Indemnification. No Program Administrator, as that
term is defined in the Program,  or any officer or employee of the Company or an
affiliate  acting at the  direction  or on behalf of the  Program  Administrator
shall be personally liable for any action or determination taken or made in good
faith with respect to the Program, and shall, to the extent permitted by law, be
fully  indemnified  and protected by the Company with respect to any such action
or determination.

                  Article 15. Performance-Based Awards.

                              (a) Each  agreement  for the grant of  Performance
               Shares shall specify the number of Performance  Shares subject to
               such  agreement,  the  Performance  Period  and  the  Performance
               Objective  (each as defined  below),  and each  agreement for the
               grant  of  any  other  award  that  the  Program   Administrators
               determine to make subject to a  Performance  Objective  similarly
               shall  specify the  applicable  number of shares of Common Stock,
               the  period  for  measuring   performance   and  the  Performance
               Objective.  As  used  herein,  "Performance  Objective"  means  a
               performance   objective   specified  in  the   agreement   for  a
               Performance  Share,  or for any other  award  which  the  Program
               Administrators   determine  to  make  subject  to  a  Performance
               Objective,  upon which the vesting or settlement of such award is
               conditioned,  and  "Performance  Period" means the period of time
               specified  in an  agreement  over which  Performance  Shares,  or
               another award which the Program Administrators  determine to make
               subject  to a  Performance  Objective,  are  to be  earned.  Each
               agreement for a performance-based  grant shall specify in respect
               of a Performance Objective the minimum level of performance below
               which no  payment  will be made,  shall  describe  the method for
               determining  the amount of any payment to be made if  performance
               is at or above the minimum  acceptable  level, but falls short of
               full achievement of the Performance Objective,  and shall specify
               the maximum  percentage payout under the agreement.  Such maximum
               percentage in no event shall exceed one hundred percent (100%) in
               the case of  performance-based  restricted shares and two hundred
               percent   (200%)   in  the   case  of   Performance   Shares   or
               performance-based Dividend Equivalent Rights.

                              (b) The Program Administrators shall determine and
               specify,  in their discretion,  the Performance  Objective in the
               agreement   for  a   Performance   Share   or   for   any   other
               performance-based   award,  which  Performance   Objective  shall
               consist of: (i) one or more business criteria,  including (except
               as  limited  under  subparagraph  (c) below for awards to Covered
               Employees  (as  defined  below))  financial,  service  level  and
               individual  performance  criteria;  and (ii) a targeted  level or
               levels of performance with respect to such criteria.  Performance
               Objectives may differ between Plan Participants and between types
               of awards from year to year.

                              (c)  The  Performance  Objective  for  Performance
               Shares and any other performance-based award granted to a Covered
               Employee,  if deemed  appropriate by the Program  Administrators,
               shall be objective and shall  otherwise meet the  requirements of
               Section  162(m)(4)(C) of the Code, and shall be based upon one or
               more of the following performance-based business criteria, either
               on a business  unit or  Company-specific  basis or in  comparison
               with peer group performance:  net sales;  gross sales;  return on
               net  assets;  return  on  assets;  return  on  equity;  return on
               capital;  return on revenues;  cash flow; book value; share price
               performance   (including   options   and  SARs  tied   solely  to
               appreciation  in the Fair Market Value of the  shares);  earnings
               per share; stock price earnings ratio;  earnings before interest,
               taxes,   depreciation  and  amortization   expenses   ("EBITDA");
               earnings before interest and taxes ("EBIT");  or EBITDA,  EBIT or
               earnings  before  taxes  and  unusual  or  nonrecurring  items as
               measured  either  against  the  annual  budget  or as a ratio  to
               revenue.  Achievement of any such Performance  Objective shall be
               measured  over a  period  of  years  not to  exceed  ten  (10) as
               specified by the Program  Administrators in the agreement for the
               performance-based  award. No business  criterion other than those
               named above in this Article 15(c) may be used in establishing the
               Performance  Objective for an award to a Covered  Employee  under
               this  Article  15.  For each  such  award  relating  to a Covered
               Employee, the Program Administrators shall establish the targeted
               level or levels of performance for each such business  criterion.
               The Program  Administrators may, in their discretion,  reduce the
               amount of a payout  otherwise  to be made in  connection  with an
               award under this Article 15(c),  but may not exercise  discretion
               to  increase  such  amount,  and the Program  Administrators  may
               consider   other   performance   criteria  in   exercising   such
               discretion.  All determinations by the Program  Administrators as
               to the achievement of Performance  Objectives  under this Article
               15(c) shall be made in writing.  The Program  Administrators  may
               not delegate any responsibility under this Article 15(c). As used
               herein,  "Covered Employee" shall mean, with respect to any grant
               of an award, an executive of the Company or any subsidiary who is
               a member of the executive  compensation group under the Company's
               compensation  practices (not  necessarily  an executive  officer)
               whom the Program  Administrators  deem may be or become a covered
               employee as defined in Section 162(m)(3) of the Code for any year
               that such award may result in remuneration  over $1 million which
               would not be deductible  under Section 162(m) of the Code but for
               the   provisions   of  the  Program  and  any  other   "qualified
               performance-based  compensation"  plan (as defined  under Section
               162(m) of the Code) of the Company;  provided,  however, that the
               Program  Administrators may determine that a Plan Participant has
               ceased to be a Covered  Employee  prior to the  settlement of any
               award.

                              (d) The Program Administrators,  in their sole and
               absolute   discretion,   may  require  that  one  or  more  award
               agreements  contain  provisions  which provide that, in the event
               Section 162(m) of the Code, or any successor  provision  relating
               to excessive employee  remuneration,  would operate to disallow a
               deduction by the Company with respect to all or part of any award
               under the Program,  a Plan  Participant's  receipt of the benefit
               relating  to such  award  that  would  not be  deductible  by the
               Company shall be deferred until the next succeeding year or years
               in which the Plan Participant's  remuneration does not exceed the
               limit set forth in such provisions of the Code.

                  Article  16.  Death  Beneficiaries.  In  the  event  of a Plan
Participant's death, all of such person's  outstanding awards,  including his or
her rights to receive any accrued but unpaid Stock  Payments,  will  transfer to
the maximum extent permitted by law to such person's  beneficiary (except to the
extent a permitted transfer of a Nonqualified  Option or SAR was previously made
pursuant  hereto).  Each  Plan  Participant  may name,  from  time to time,  any
beneficiary or beneficiaries  (which may be named  contingently or successively)
as his or her beneficiary for purposes of this Program.  Each designation  shall
be on a form  prescribed by the Program  Administrators,  will be effective only
when  delivered  to the  Company,  and when  effective  will  revoke  all  prior
designations by the Plan  Participant.  If a Plan  Participant dies with no such
beneficiary designation in effect, such person's beneficiary shall be his or her
estate and such person's awards will be transferable by will or pursuant to laws
of descent and distribution applicable to such person.

                  Article 17.  Unfunded  Program.  The Program shall be unfunded
and the Company  shall not be required to  segregate  any assets that may at any
time be  represented  by awards  under the  Program.  Neither the  Company,  its
affiliates,  the Program  Administrators,  nor the Board shall be deemed to be a
trustee of any amounts to be paid under the Program nor shall anything contained
in the  Program or any action  taken  pursuant  to its  provisions  create or be
construed to create a fiduciary  relationship  between any such party and a Plan
Participant  or  anyone  claiming  on his or her  behalf.  To the  extent a Plan
Participant or any other person acquires a right to receive payment  pursuant to
an award under the Program,  such right shall be no greater than the right of an
unsecured general creditor of the Company.

                  Article  18.  Choice of Law and  Venue.  The  Program  and all
related  documents  shall be governed by, and construed in accordance  with, the
laws of the  State of  California.  Acceptance  of an award  shall be  deemed to
constitute consent to the jurisdiction and venue of the state and federal courts
located  in  Santa  Clara  County,  State  of  California  for all  purposes  in
connection  with any suit,  action or other  proceeding  relating to such award,
including  the  enforcement  of any rights under the Program or any agreement or
other  document,  and shall be deemed to  constitute  consent to any  process or
notice of motion in connection with such proceeding being served by certified or
registered  mail or personal  service within or without the State of California,
provided a reasonable time for appearance is allowed.

                  Article 19.  Arbitration.  Any disputes  involving the Program
will be resolved by arbitration in Santa Clara County, California before one (1)
arbitrator in accordance with the Commercial  Arbitration  Rules of the American
Arbitration Association.

                  Article 20. Program  Administrators'  Right.  Except as may be
provided  in an  award  agreement,  the  Program  Administrators  may,  in their
discretion, waive any restrictions or conditions applicable to, extend or modify
any period  (including any period in which an option or other  exercisable award
may be exercised,  subject to the  requirements  of the Code)  applicable to, or
accelerate  the vesting of, any award  (other than the right to purchase  shares
pursuant to the Stock Purchase Plan).

                  Article 21. Termination of Benefits Under Certain  Conditions.
The Program  Administrators,  in their sole and absolute discretion,  may cancel
any unexpired,  unpaid or deferred award (other than a right to purchase  shares
pursuant to the Stock Purchase Plan) at any time if the Plan  Participant is not
in  compliance  with all  applicable  provisions  of the  Program  or any  award
agreement  or if the Plan  Participant,  whether  or not he or she is  currently
employed by the Company or one of its subsidiaries, acts in a manner contrary to
the best interests of the Company and its subsidiaries.

                  Article 22.  Conflicts in Program.  In case of any conflict in
the terms of the  Program,  or between the Program and an award  agreement,  the
provisions in the Program which specifically grant such award shall control, and
the  provisions in the Program  shall  control over the  provisions in any award
agreement.

                  Article 23. Optional Deferral.  The right to receive any award
under the Program (other than the right to purchase shares pursuant to the Stock
Purchase Plan) may, at the request of the Plan Participant,  be deferred to such
period and upon such terms and conditions as the Program  Administrators  shall,
in their  discretion,  determine,  which may  include  crediting  of interest on
deferrals of cash and crediting of dividends on deferrals  denominated in shares
of Common Stock.

                  Article 24.  Information to Plan  Participants.  To the extent
required by applicable law, the Company shall provide Plan Participants with the
Company's financial statements at least annually.

                  Article 25.  Company's Right of First Refusal.  Any attempt by
any Plan  Participant to sell,  transfer or otherwise  dispose of any securities
issued to such Plan Participant  under the Program or upon exercise of any other
security  or other right  issued  under the  Program,  that is  transferable  in
accordance  with the terms of this Program and applicable  law, must also comply
with the following provisions:

                              (a) The Plan Participant must have received a bona
               fide offer to purchase the securities  (the "Offer") and the Plan
               Participant   must  then  give  written  notice  to  the  Company
               outlining the terms of the Offer  (including  the identity of the
               maker of the Offer (the "Offeror")).  The Company shall then have
               the right,  for a period of sixty (60) days, to repurchase  [all,
               but not less than all,  of] the  securities  offered  by the Plan
               Participant  upon the terms  contained in the Offer. If the Offer
               includes   the   payment  of  non-cash   consideration   for  the
               securities,  the  Company  shall pay an amount  equal to the Fair
               Market Value of such non-cash consideration.

                              (b) If the Company  does not  exercise  its rights
               hereunder,  the Plan  Participant  may,  within  sixty  (60) days
               thereafter,  sell the offered  securities [or such of the offered
               securities  as to which the Company has not  exercised its rights
               hereunder]14  to the Offeror upon terms not more favorable to the
               Offeror than those contained in the Offer. Any sale of securities
               by the Plan  Participant  after the  expiration of the sixty (60)
               day period referred to in the preceding  sentence shall be deemed
               a new transaction subject to the Company's right of first refusal
               here.

                              (c) The  Company's  right of first  refusal  shall
               terminate  when the Company's  Common Stock is  registered  under
               Section 12 of the  Exchange  Act and listed on or  included  in a
               national  securities  exchange or  interdealer  quotation  system
               registered under the Exchange Act.

                  Article 26. Company's Right of Repurchase. In the event that a
Plan  Participant's  employment with or service to the Company is terminated for
any reason or any of its subsidiaries,  the Company shall have the right, unless
waived by the Program Administrators at the time of any award or thereafter,  to
repurchase  all,  but  not  less  than  all of the  securities  that  such  Plan
Participant has purchased or has been awarded under the Program on the following
terms:

(a)      Upon a Plan Participant's  termination of employment with or service to
         the  Company or any of its  subsidiaries,  the  Company  shall have the
         right for a period of ninety (90) days form the last day of  employment
         or service to repurchase  all, but not less than all of the  securities
         awarded to or purchased by the Plan Participant under the Program.

(b)      The Company shall notify the Plan  Participant  within ninety (90) days
         of the last day of employment or service  regarding the exercise of its
         right of repurchase.

(c)      If the Company  exercises  its right of  repurchase,  the Company  will
         purchase  the  securities  within  thirty  (30) days of delivery of the
         notice of its election to purchase at the higher of (i) the Fair Market
         Value on the Plan Participant's  date of termination,  or (ii) the Fair
         Market  Value  of  such   securities  on  the  date  of  the  Company's
         notification of election to repurchase.

                  Article 27. Lock-Up.  To the extent  requested by any managing
underwriter to the Company,  the Plan Participants  shall enter into such market
lock-up,  escrow or other  agreements as may be requested by such underwriter in
connection with any public offering of the Company's securities.

                                     PART II

                                 QUACKWARE, INC.
                         NON-QUALIFIED STOCK OPTION PLAN

                  Section  1.  Purpose.  The  purpose  of this  Quackware,  Inc.
Non-Qualified  Stock  Option  Plan (the  "Nonqualified  Plan") is to permit  the
Company  to  grant  options  to  purchase  shares  of  its  Common  Stock.   The
Nonqualified Plan is designed to help attract and retain superior  personnel for
positions of substantial  responsibility  with the Company and its subsidiaries,
and to provide  individuals  with an  additional  incentive to contribute to the
success of the Company.  Any option granted  pursuant to the  Nonqualified  Plan
shall be clearly and  specifically  designated  as not being an incentive  stock
option, as defined in Section 422 of the Code. This Nonqualified Plan is Part II
of the Program.  Unless any  provision  herein  indicates to the  contrary,  the
Nonqualified Plan shall be subject to the General Provisions of the Program, and
terms used but not defined in this Nonqualified Plan shall have the meanings, if
any, ascribed thereto in the General Provisions of the Program.

                  Section  2.  Option  Terms  and  Conditions.   The  terms  and
conditions of options  granted under the  Nonqualified  Plan may differ from one
another as the Program  Administrators  shall in their  discretion  determine as
long as all options granted under the Nonqualified Plan satisfy the requirements
of the Nonqualified Plan.

                  Section 3.  Duration  of  Options.  Each option and all rights
thereunder  granted pursuant to the terms of the Nonqualified  Plan shall expire
on the date determined by the Program Administrators,  but in no event shall any
option granted under the Nonqualified Plan expire later than ten (10) years from
the date on which the option is  granted.  In  addition,  each  option  shall be
subject to early termination as provided in the Nonqualified Plan.

                  Section  4.  Purchase  Price.  The  purchase  price for shares
acquired pursuant to the exercise,  in whole or in part, of any option shall not
be less than 85% of the Fair Market Value of the shares at the time of the grant
of the option. Notwithstanding the preceding sentence, if at the time the option
is granted or at the time the option is  exercised,  the Optionee owns more than
10% of the total combined voting power of all classes of stock of the Company or
its  subsidiaries,  the  Purchase  Price shall not be less than 100% of the Fair
Market Value.

                  Section  5.   Exercise  of  Options.   Each  option  shall  be
exercisable  in one or more  installments  during  its  term  and the  right  to
exercise may be cumulative as  determined  by the Program  Administrators.  Each
option, other than options granted to officers, directors or consultants,  shall
be  exercisable  a rate of at least twenty  percent (20%) per year over five (5)
years from the date the option is granted, subject to such reasonable conditions
as  determined by the Program  Administrators;  provided,  that such  limitation
shall only  apply so long as the  Program  is  subject  to  qualification  under
Section 25101(o) of the California Corporations Code. No option may be exercised
for a fraction  of a share of Common  Stock.  The  purchase  price of any shares
purchased  shall  be paid in full in cash or by  certified  or  cashier's  check
payable to the order of the Company or by shares of Common  Stock,  if permitted
by the Program Administrators,  or by a combination of cash, check, or shares of
Common  Stock,  at the time of  exercise  of the  option.  If any portion of the
purchase price is paid in shares of Common Stock, those shares shall be tendered
at their  then Fair  Market  Value as  determined  by  Article  6 under  General
Provisions  of the  Program.  Payment  in shares of Common  Stock  includes  the
automatic  application  of shares of Common Stock  received  upon exercise of an
option to satisfy the exercise price for additional options.

                  Section 6. Reorganization.  In the event of the dissolution or
liquidation of the Company, any option granted under the Nonqualified Plan shall
terminate as of a date to be fixed by the Program Administrators;  provided that
not less than 30 days'  written  notice  of the date so fixed  shall be given to
each  Optionee  and each such  Optionee  shall have the right during such period
(unless  such option  shall have  previously  expired)  to exercise  any option,
including  up to fifty  percent  (50%) of the shares of Common  Stock  under any
option that would not  otherwise  be  exercisable  by reason of an  insufficient
lapse of time.

                  In the event of a  Reorganization  (as defined below) in which
the Company is not the surviving or acquiring  company,  or in which the Company
is or becomes a subsidiary of another  company  after the effective  date of the
Reorganization, then:

                           (a) if there is no plan or agreement  respecting  the
                  Reorganization  (the  "Reorganization  Agreement")  or if  the
                  Reorganization Agreement does not specifically provide for the
                  change,  conversion or exchange of the outstanding options for
                  options of another corporation,  then exercise and termination
                  provisions   equivalent  to  those   described  in  the  first
                  paragraph of this  Section 6 shall apply (which shall  include
                  the right to receive  upon  exercise  the  consideration  that
                  would be  received by a holder of a number of shares of Common
                  Stock issuable upon exercise of the option  immediately  prior
                  to the consummation of the Reorganization); or

                           (b) if there is a Reorganization Agreement and if the
                  Reorganization Agreement specifically provides for the change,
                  conversion, or exchange of the outstanding options for options
                  of another corporation,  then the Program Administrators shall
                  adjust the outstanding  unexercised  options (and shall adjust
                  the options  remaining under the Nonqualified  Plan which have
                  not yet been  granted if the  Reorganization  Agreement  makes
                  specific  provision  for  such  an  adjustment)  in  a  manner
                  consistent    with   the   applicable    provisions   of   the
                  Reorganization Agreement;  provided, however, that in no event
                  shall any such  Reorganization  Agreement  affect the right of
                  any grantee  hereunder  to, in the event of a  Reorganization,
                  exercise  fifty  percent  (50%) of the shares of Common  Stock
                  under any option that would not  otherwise be  exercisable  by
                  reason of an insufficient lapse of time.

                  The term "Reorganization" as used in this Section 6 shall mean
any statutory merger, statutory consolidation,  sale of all or substantially all
of the assets of the Company or a sale of the Common Stock pursuant to which the
Company is or becomes a subsidiary of another  company after the effective  date
of the Reorganization.

                  Notwithstanding  the provisions of this Section 6, the Program
Administrators  may make grants hereunder which  contemplate,  in the event of a
Reorganization,  that the  exercisability of the options is accelerated in whole
or in part, whether pursuant to the terms of a grantee's employment agreement or
otherwise.

                  Adjustments and  determinations  under this Section 6 shall be
made by the Program  Administrators,  whose decisions as to such  adjustments or
determinations shall be final, binding, and conclusive.

                  Section  7.  Written  Notice  Required.   Any  option  granted
pursuant to the terms of this  Nonqualified Plan shall be exercised when written
notice of that exercise has been given to the Company at its principal office by
the person  entitled to exercise the option and full payment for the shares with
respect to which the option is exercised has been received by the Company.

                  Section 8. Compliance with Securities  Laws.  Shares shall not
be issued with respect to any option granted under the Nonqualified Plan, unless
the exercise of that option and the issuance and delivery of the shares pursuant
thereto  shall  comply with all  applicable  provisions  of  foreign,  state and
federal law,  including,  without  limitation,  the  Securities  Act of 1933, as
amended,  and the  Exchange  Act,  and the  rules  and  regulations  promulgated
thereunder, and the requirements of any stock exchange upon which the shares may
then be listed,  and shall be further subject to the approval of counsel for the
Company with respect to such  compliance.  The Program  Administrators  may also
require an Optionee to furnish evidence satisfactory to the Company, including a
written and signed representation letter and consent to be bound by any transfer
restrictions imposed by law, legend,  condition,  or otherwise,  that the shares
are being  purchased  only for  investment  purposes  and  without  any  present
intention to sell or distribute  the shares in violation of any state or federal
law, rule, or regulation. Further, each Optionee shall consent to the imposition
of a legend on the shares of Common  Stock  subject to his or her option and the
imposition of stop-transfer  instructions  restricting their  transferability as
required by law or by this Section 8.

                  Section 9. Continued Employment or Service.  Each Optionee, if
requested by the Program Administrators, must agree in writing as a condition of
receiving his or her option,  to remain in the employment of, or service to, the
Company or any of its  subsidiaries  following  the date of the granting of that
option for a period  specified  by the Program  Administrators.  Nothing in this
Nonqualified  Plan or in any option  granted  hereunder  shall  confer  upon any
Optionee any right to continued employment by, or service to, the Company or any
of its  subsidiaries,  or  limit  in any way the  right  of the  Company  or any
subsidiary  at any time to  terminate or alter the terms of that  employment  or
service arrangement.

                  Section 10.  Option Rights Upon  Termination  of Employment or
Service.  If an  Optionee  ceases to be  employed  by,  or ceases to serve,  the
Company  or any  subsidiary  corporation  for any  reason  other  than  death or
disability, his or her option shall terminate thirty (30) days after the date of
termination  of employment or service  (unless  sooner  terminated in accordance
with its terms);  provided,  however, that in the event employment or service is
terminated  for cause as  defined by  applicable  law,  his or her option  shall
terminate   immediately,   provided,   further,   however,   that  the   Program
Administrators may, in their sole and absolute  discretion,  allow the option to
be  exercised  (to  the  extent  exercisable  on  the  date  of  termination  of
employment) at any time within ninety (90) days after the date of termination of
employment or service,  unless either the option or the Incentive Plan otherwise
provides for earlier termination.

                  Section  11.  Option  Rights Upon  Disability.  If an Optionee
becomes disabled within the meaning of Code Section  422(e)(3) while employed by
the Company or any subsidiary corporation, his or her option shall terminate six
months after the date of  termination  of employment  due to disability  (unless
sooner  terminated in accordance with its terms);  provided,  however,  that the
Program  Administrators  may, in their sole and absolute  discretion,  allow the
option to be exercised (to the extent  exercisable on the date of termination of
employment)  at any time  within  one year  after  the  date of  termination  of
employment  due to  disability,  unless either the option or the Incentive  Plan
otherwise provides for earlier termination.

                  Section 12.  Option  Rights Upon Death of Optionee.  Except as
otherwise  limited by the Program  Administrators at the time of the grant of an
option,  if an Optionee  dies while  employed by, or providing  services to, the
Company or any of its  subsidiaries,  his or her option  shall expire six months
after the date of death (unless sooner terminated in accordance with its terms);
provided,  however,  that the  Program  Administrators  may,  in their  sole and
absolute discretion, allow the option to be exercised (to the extent exercisable
on the date of  death)  at any time  within  one year  after  the date of death,
unless either the option or the Incentive  Plan  otherwise  provides for earlier
termination.  During  this  one-year  or  shorter  period,  the  option  may  be
exercised,  to the extent that it remains  unexercised on the date of death,  by
the person or persons to whom the Optionee's  rights under the option shall pass
by will or by the laws of descent and distribution,  but only to the extent that
the Optionee is entitled to exercise the option at the date of death.

                  Section 13. Options Not Transferable. Options granted pursuant
to the terms of this Nonqualified Plan may not be sold,  pledged,  assigned,  or
transferred  in any  manner  otherwise  than by will or the laws of  descent  or
distribution  and may be exercised  during the  lifetime of an Optionee  only by
that Optionee.  No such options shall be pledged or  hypothecated in any way nor
shall they be subject to execution, attachment, or similar process.

                  Section  14.  Adjustments  to  Number  and  Purchase  Price of
Optioned Shares.  All options granted pursuant to the terms of this Nonqualified
Plan  shall be  adjusted  in a manner  prescribed  by  Article 7 of the  General
Provisions of the Program.

                                 QUACKWARE, INC.
                         NON-QUALIFIED STOCK OPTION PLAN
                                OPTION AGREEMENT

                  THIS OPTION AGREEMENT (the "Agreement"),  dated as of the date
of grant provided in the Notice of Grant of Stock Options (the "Date of Grant"),
is delivered by Quackware, Inc. a California corporation (the "Company"), to the
Optionee identified on the Notice of Grant of Stock Options (the "Notice"),  who
is an employee or  non-employee of the Company or one of its  subsidiaries  (the
Optionee's employer is sometimes referred to herein as the ("Employer").

                  WHEREAS,  the Board of Directors of the Company (the  "Board")
on  October  29,  1999  adopted,  with  subsequent   stockholder  approval,  the
Quackware, Inc. Non-Qualified Stock Option Plan (the "Plan");

                  WHEREAS,  the Plan  provides for the granting of stock options
by the Board or the Program  Administrators to employees or non-employees of the
Company or any  subsidiary  of the Company to purchase,  or to exercise  certain
rights with respect to, shares of the Class A Common Stock of the Company, $.001
par value (the "Stock"),  in accordance  with the terms and provisions  thereof;
and

                  WHEREAS, the Program  Administrators  consider the Optionee to
be a person who is eligible for a grant of non-qualified stock options under the
Plan, and has determined that it would be in the best interest of the Company to
grant the non-qualified stock options documented herein.

                  NOW,  THEREFORE,  the parties hereto,  intending to be legally
bound hereby, agree as follows:

1.       Grant of Option.

                  Subject to the terms and conditions hereinafter set forth, the
Company,  with the approval and at the direction of the Program  Administrators,
hereby grants to the Optionee, as of the Date of Grant, an option to purchase up
to such  number of shares of Stock at such  price per share as  provided  in the
Notice.

                  Such option is hereinafter referred to as the "Option" and the
shares  of  stock  purchasable  upon  exercise  of the  Option  are  hereinafter
sometimes  referred  to as the  "Option  Shares."  The Option is intended by the
parties  hereto to be, and shall be treated  as, an option not  qualified  as an
incentive  stock  option  (as such  term is  defined  under  Section  422 of the
Internal Revenue Code of 1986).

2.       Installment Exercise.

         Subject to such further  limitations as are provided herein, the Option
shall become  exercisable  as provided in the Notice and subject to the terms of
this Agreement and the Plan.

3.       Termination of Option.

                  (a) Subject to the other  provisions  of this  Agreement,  the
Option and all rights hereunder with respect thereto,  to the extent such rights
shall not have been  exercised,  shall  terminate and become null and void after
the expiration of ten years from the Date of Grant (the "Option Term").

                  (b) Upon the  occurrence  of the  Optionee's  ceasing  for any
reason to be employed  by, or to serve,  the Company  (such  occurrence  being a
"termination  of the  Optionee's  employment"),  the  Option,  to the extent not
previously  exercised,  shall  terminate  and become null and void within thirty
(30)  days  after the date of such  termination  of the  Optionee's  employment,
except  (1) in the  event  employment  is  terminated  for cause as  defined  by
applicable law, in which case Optionee's  Option shall terminate and become null
and void  immediately  or (2) in a case  where the  Program  Administrators  may
otherwise  determine in their sole and absolute discretion for up to ninety (90)
days following the  termination of employment or service.  Upon a termination of
the  Optionee's  employment by reason of disability or death,  the Option may be
exercised,  but  only  to  the  extent  that  the  Option  was  outstanding  and
exercisable  on such date of  disability  or  death,  up to a  six-month  period
following the date of such  termination  of the  Optionee's  employment,  unless
extended for a period of up to one year, at the sole and absolute  discretion of
the Program Administrators.

                  (c) In the event of the death of the Optionee,  the Option may
be exercised by the Optionee's legal representative, but only to the extent that
the Option would otherwise have been exercisable by the Optionee.

                  (d) A  transfer  of  the  Optionee's  employment  between  the
Company and any subsidiary of the Company,  or between any  subsidiaries  of the
Company, shall not be deemed to be a termination of the Optionee's employment.

4.       Exercise of Options.

                  (a) The  Optionee  may exercise the Option with respect to all
or any part of the number of Option Shares then exercisable  hereunder by giving
the Secretary of the Company written notice of intent to exercise. The notice of
exercise  shall specify the number of Option Shares as to which the Option is to
be exercised and the date of exercise thereof.

                  (b) Full  payment  (in U.S.  dollars)  by the  Optionee of the
option  price for the  Option  Shares  purchased  shall be made on or before the
exercise  date  specified in the notice of exercise in cash,  or, with the prior
written consent of the Program  Administrators,  in whole or in part through the
surrender of shares of Stock at their Fair Market Value as defined under Article
6 of the General  Provisions of the Program on the exercise  date.  The Optionee
shall also pay any required income tax withholding taxes which may be payable in
U.S. dollars or Option Shares if acceptable to the Company.

                  (c) On the exercise date specified in the Optionee's notice or
as soon thereafter as is practicable, the Company shall cause to be delivered to
the Optionee,  a certificate  or  certificates  for the Option Shares then being
purchased (out of theretofore unissued stock or reacquired Stock, as the Company
may  elect)  upon full  payment  for such  option  Shares.  However,  if (i) the
Optionee  is subject to Section 16 of the  Securities  Exchange  Act of 1934 and
(ii) the Optionee  exercises  the Option  before six months have passed from the
Date of Grant,  the Company  shall be  permitted  if required to comply with the
exemptive  provisions  of Section 16 of the  Securities  Exchange Act of 1934 to
hold in its custody any stock  certificate  arising from such exercise until six
months has  passed  from the Date of Grant.  The  obligation  of the  Company to
deliver Stock shall,  however,  be subject to the condition  that if at any time
the Program Administrators shall determine in their discretion that the listing,
registration  or  qualification  of the  Option or the  Option  Shares  upon any
securities  exchange  or under any  state or  federal  law,  or the  consent  or
approval of any  governmental  regulatory  body,  is necessary or desirable as a
condition of, or in connection  with,  the Option or the issuance or purchase of
Stock  thereunder,  the Option may not be  exercised  in whole or in part unless
such listing, registration,  qualification,  consent or approval shall have been
effected  or  obtained  free of any  conditions  not  acceptable  to the Program
Administrators.

                  (d) If the Optionee  fails to pay for any of the Option Shares
specified in such notice or fails to accept  delivery  thereof,  the  Optionee's
right to purchase such Option Shares may be terminated by the Company.  The date
specified in the  Optionee's  notice as the date of exercise shall be deemed the
date of  exercise of the Option,  provided  that  payment in full for the Option
Shares to be purchased upon such exercise shall have been received by such date.

5.       Adjustment of and Changes in Stock of the Company.

                  In the event of a reorganization,  recapitalization, change of
shares, stock split, spin-off, stock dividend, reclassification,  subdivision or
combination of shares,  merger,  consolidation,  rights  offering,  or any other
change in the corporate structure or shares of capital stock of the Company, the
Program  Administrators  shall make such adjustment as may be required under the
applicable  reorganization  agreement  in the number and kind of shares of Stock
subject to the Option or in the option price;  provided,  however,  that no such
adjustment shall give the Optionee any additional  benefits under the Option. If
there is no  provision  for the  treatment  of the  Option  under an  applicable
reorganization  agreement,  the Option may terminate on a date determined by the
Program  Administrators  following  at  least  30  days  written  notice  to the
Optionee.

6.       No Rights of Stockholders.

                  Neither the Optionee nor any personal representative shall be,
or shall have any of the rights and  privileges of, a stockholder of the Company
with respect to any shares of Stock purchasable or issuable upon the exercise of
the Option, in whole or in part, prior to the date of exercise of the Option.

7.       Non-Transferability of Option.

                  During the Optionee's lifetime,  the Option hereunder shall be
exercisable only by the Optionee or any guardian or legal  representative of the
Optionee,  and the Option shall not be transferable except, in case of the death
of the Optionee, by will or the laws of descent and distribution,  nor shall the
Option be subject to  attachment,  execution or other  similar  process.  In the
event  of  (a)  any  attempt  by  the  Optionee  to  alienate,  assign,  pledge,
hypothecate or otherwise  dispose of the Option,  except as provided for herein,
or (b) the levy of any attachment,  execution or similar process upon the rights
or interest hereby conferred,  the Company may terminate the Option by notice to
the Optionee and it shall thereupon become null and void.

8.       Restriction on Exercise.

                  The Option may not be  exercised if the issuance of the Option
Shares upon such exercise would constitute a violation of any applicable federal
or state  securities  or other law or valid  regulation.  As a condition  to the
exercise of the Option,  the Company  may require the  Optionee  exercising  the
Option to make any  representation or warranty to the Company as may be required
by any applicable law or regulation and, specifically,  may require the Optionee
to provide evidence satisfactory to the Company that the Option Shares are being
acquired only for investment  purposes and without any present intention to sell
or  distribute  the shares in  violation of any federal or state  securities  or
other law or valid regulation.

9.       Employment or Service Not Affected.

                  The  granting  of the  Option  or its  exercise  shall  not be
construed as granting to the Optionee any right with respect to  continuance  of
employment by or service relationship with the Employer. Except as may otherwise
be limited by a written  agreement  between the Employer and the  Optionee,  the
right of the Employer to terminate at will the Optionee's  employment or service
relationship with it at any time (whether by dismissal, discharge, retirement or
otherwise) is specifically reserved by the Company, as the Employer or on behalf
of the Employer (whichever the case may be), and acknowledged by the Optionee.

10.      Amendment of Option.

                  The Option may be amended by the Program Administrators at any
time (i) if the Program  Administrators  determine,  in their sole and  absolute
discretion,  that  amendment  is  necessary  or  advisable  in the  light of any
addition to or change in the Internal Revenue Code of 1986 or in the regulations
issued  thereunder,  or any  federal  or state  securities  law or other  law or
regulation, which change occurs after the Date of Grant and by its terms applies
to the Option; or (ii) other than in the circumstances  described in clause (i),
with the consent of the Optionee.

11.      Notice.

                  All  notices,  requests,  demands,  and  other  communications
hereunder  shall be in  writing  and shall be deemed to have been duly  given if
delivered personally or by certified mail, return receipt requested, as follows:

                  To Company:               Quackware, Inc.
                                            1252 Borregas Avenue
                                            Sunnyvale, CA 94089
                                            Attn: Secretary

                                            To Optionee:      at the address
                                            as provided in the Company's records

12.      Incorporation of Plan by Reference.

                  The  Option  is  granted  pursuant  to the  terms of the Plan,
including the rights of first refusal and  repurchase  referenced in Articles 25
and 26,  respectively,  thereof,  the terms of which are incorporated  herein by
reference,  and the Option shall in all respects be  interpreted  in  accordance
with,  and shall be  subject  to, the Plan.  The  Program  Administrators  shall
interpret and construe the Plan and this instrument, and its interpretations and
determinations  shall be  conclusive  and binding on the parties  hereto and any
other person claiming an interest  hereunder,  with respect to any issue arising
hereunder or thereunder.

13.      Governing Law.

                  The validity, construction,  interpretation and effect of this
instrument  shall  exclusively be governed by and determined in accordance  with
the law of the State of  California,  except to the extent  preempted by federal
law, which shall to the extent govern.

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