Document:

<PAGE>

                                                                     EXHIBIT 4.3

                          MICROWARE SYSTEMS CORPORATION
                        1999 EMPLOYEE STOCK PURCHASE PLAN

         1. ESTABLISHMENT OF PLAN. Microware Systems Corporation, an Iowa
corporation (the "Company"), proposes to grant options for purchase of the
Company's Common Stock to eligible employees of the Company and its
Subsidiaries (as hereinafter defined) pursuant to this Employee Stock
Purchase Plan (this "Plan"). For purposes of this Plan, "Parent Corporation"
and "Subsidiary" (collectively "Subsidiaries") shall have the same meanings
as "parent corporation" and "subsidiary corporation" in Sections 424(e) and
424(f) respectively of the Internal Revenue Code of 1986, as amended (the
"Code"). The Company intends this Plan to qualify as an "employee stock
purchase plan" under Section 423 of the Code (including any amendments to or
replacements of such Section) and this Plan shall be so construed. Any term
not expressly defined in this Plan but defined for purposes of Section 423 of
the Code shall have the same definition herein.

         2. SHARES RESERVED FOR ISSUANCE. A total of 500,000 shares of the
Company's Common Stock are reserved for issuance under this Plan. Such number
shall be subject to adjustments effected in accordance with Section 15 of
this Plan.

         3. PURPOSE. The purpose of this Plan is to provide employees of the
Company and Subsidiaries designated by the Board of Directors of the Company
(the "Board") as eligible to participate in this Plan with a convenient means
of acquiring an equity interest in the Company through Cash Contributions (as
hereinafter defined) and payroll deductions to enhance such employees' sense
of participation in the affairs of the Company and Subsidiaries and to
provide an incentive for continued employment.

         4. ADMINISTRATION. This Plan shall be administered by a committee
appointed by the Board (the "Committee") consisting of at least two (2)
members of the Board, each of whom is a Disinterested Person as defined in
Rule 16b-3(d) of the Securities Exchange Act of 1934 (the "Exchange Act") and
an "Outside Director" within the meaning of Section 162(m) of the Code. As
used in this Plan, references to the "Committee" shall mean either such
committee or the Board if no committee has been established. Committee
members who are not Disinterested Persons may not vote on any matters
affecting the administration of this Plan, but any such member may be counted
for determining the existence of a quorum at any meeting of the Committee.
Subject to the provisions of this Plan and the limitations of Section 423 of
Code or any successor provision in the Code, all questions of interpretation
or application of this Plan shall be determined by the Committee and its
decisions shall be final and binding upon all participants. Members of the
Board shall receive no compensation for their services in connection with the
administration of this Plan, other than standard fees as established from
time to time by the Board for services rendered by Board members serving on
Board Committees. All expenses incurred in connection with the administration
of this Plan shall be paid by the Company.

         5. ELIGIBILITY. Any employee of the Company or the Subsidiaries is
eligible to participate in an Offering Period (as hereinafter defined) under
this Plan except the following:

                  a. Employees who are not employed by the Company or
         Subsidiaries as of the beginning of such Offering Period;

                  b. Employees who, together with any other person whose stock
         would be attributed

<PAGE>

         to such employee pursuant to Section 424(d) of the Code, own stock or
         hold options to purchase stock possessing five percent (5%) or more of
         the total combined voting power or value of all classes of stock of the
         Company or any of its Subsidiaries or who, as a result of being granted
         an option under this Plan with respect to such Offering Period, would
         own stock or hold options to purchase stock possessing five percent
         (5%) or more of the total combined voting power or value of all classes
         of stock of the Company or any of its Subsidiaries.

         6. OFFERING DATES. The offering periods of this Plan (each an
"Offering Period") shall be of three (3) months duration commencing on
January 1, April 1, July 1, and October 1 of each year and ending on March
31, June 30, September 30 and December 31 of each year. Each Offering Period
shall consist of one (1) three (3) month purchase period (individually, a
"Purchase Period") during which payroll deductions of participants are
accumulated under this Plan and aggregated with their respective Cash
Contributions (as hereinafter defined), if any. The first business day of
each Offering Period is referred to as the "Offering Date" The last business
day of each Purchase Period is referred to as the "Purchase Date". The Board
shall have the power to change the duration of Offering Periods or Purchase
Periods with respect to future offerings without stockholder approval if such
change is announced at least fifteen (15) days prior to the scheduled
beginning of the first Offering Period or Purchase Period to be affected.

         7. PARTICIPATION IN THIS PLAN. Eligible employees may become
participants in an Offering Period under this Plan on the first Offering Date
after satisfying the eligibility requirements by delivering to the Company's
Human Resources Department (the "Human Resources Department") not later than
the close of business of the first day of the Offering Period, or such other
date specified by the Committee, a Subscription Agreement in a form
designated by the Company setting forth payroll deductions and Cash
Contributions authorized in Section 10 of this Plan.

                  An eligible employee who does not deliver a subscription
                  agreement to the Human Resources Department by such date after
                  becoming eligible to participate in such Offering Period shall
                  not participate in that Offering Period or any subsequent
                  Offering Period, unless such employee enrolls in this Plan by
                  filing a subscription agreement with the Human Resources
                  Department not later than the commencement of a subsequent
                  Offering Period or such other date specified by the Committee.
                  Once an employee becomes a participant in an Offering Period,
                  such employee will automatically participate in the Offering
                  Period commencing immediately following the last day of the
                  prior Offering Period unless the employee withdraws or is
                  deemed to withdraw from this Plan or terminates further
                  participation in the Offering Period as set forth in Section
                  12 below. Such participant is not required to file any
                  additional subscription agreement in order to continue
                  participation in this Plan. Notwithstanding any provision to
                  the contrary, Cash Contributions will be permitted in any
                  Offering Period.

         8. GRANT OF OPTION ON ENROLLMENT. Enrollment by an eligible employee
in this Plan with respect to an Offering Period will constitute the grant (as
of the Offering Date) by the Company to such employee of an option to
purchase on the Purchase Date up to that number of shares of Common Stock of
the Company determined by dividing (a) the amount accumulated in such
employee's payroll deduction account during such Purchase Period plus all
Cash Contributions by (b) the lower of (i) eighty-five percent (85%) of the
fair market value of a share of the Company's Common Stock on the Offering
Date (but in no event less than the par value of a share of the Company's
Common Stock), or (ii) eighty-five percent (85%) of the fair market value of
a share of the Company's Common Stock on the Purchase Date (but in no event
less than the par value of a share of the Company's Common Stock); PROVIDED,
HOWEVER, that the number of shares of the Company's Common Stock subject to
options granted pursuant to this Plan shall not exceed the lesser of (a) the
maximum number of shares set by the Board pursuant to

<PAGE>

Section 11(c) below with respect to the applicable Offering Period, or (b)
with respect to any participant, the maximum number of shares which may be
purchased pursuant to Section 11(b) below with respect to the applicable
Offering Period. The fair market value of a share of the Company's Common
Stock shall be determined as provided in Section 9 hereof.

         9. PURCHASE PRICE. The purchase price per share at which a share of
Common Stock will be sold in any Offering Period shall be eighty-five percent
(85%) of the lesser of:

                  a.       The fair market value on the Offering Date; or

                  b.       The fair market value on the Purchase Date;

PROVIDED, HOWEVER, that in no event may the purchase price per share of the
Company's Common Stock be below the par value per share of the Company's
Common Stock. For purposes of this Plan, the term "fair market value" on a
given date shall mean the fair market value of the Company's Common Stock as
determined by the Board in its sole discretion, exercised in good faith,
PROVIDED, HOWEVER, that where there is a public market for the Common Stock,
the fair market value per share shall be the average of the last reported bid
and asked prices of the Common Stock on the last trading day prior to the
date of determination (or the average closing price over the number of
consecutive trading days preceding the date of determination as the Board
shall deem appropriate), or, in the event the Common Stock is listed on a
stock exchange or on any Nasdaq listing, the fair market value per share
shall be the closing price on such exchange or quotation system on the last
trading date prior to the date of determination (or the average closing price
over the number of consecutive trading days preceding the date of
determination as the Board shall deem appropriate).

         10. PAYMENT OF PURCHASE PRICE; CHANGES IN PAYROLL DEDUCTIONS, ISSUANCE
OF SHARES.

                  a. The purchase price of the shares for each respective
         participant shall be the aggregate of (a) cash contributions of up to
         $15,000 delivered to the Company during any Offering Period (the "Cash
         Contributions"); and (b) regular payroll deductions made during each
         Offering Period. The aggregated amount of the Cash Contributions and
         accumulated payroll deductions shall not be permitted to exceed $15,000
         during any Offering Period or fiscal year. The deductions are made in
         specified whole dollar amounts with a pay period minimum no less than
         twenty five dollars ($25.00) not to exceed fifteen percent (15%) of a
         participant's compensation during any Offering Period or any lower
         limit set by the Committee. Compensation shall mean all W-2
         compensation, including, but not limited to base salary, wages, and
         overtime; PROVIDED, HOWEVER, that for purposes of determining a
         participant's compensation, any election by such participant to reduce
         his or her regular cash remuneration under Sections 125 or 401(k) of
         the Code shall be treated as if the participant did not make such
         election. Payroll deductions shall commence on the first payday
         following the Offering Date and shall continue to the end of the
         Offering Period unless sooner altered or terminated as provided in this
         Plan.

                  b. A participant may lower or increase the rate of payroll
         deductions during an Offering Period by filing with the Human Resources
         Department a new authorization for payroll deductions in which case the
         new rates shall become effective for the next payroll period commencing
         more than fifteen (15) days after the Human Resources Department's
         receipt of the authorization and shall continue for the remainder of
         the Offering Period unless changed as described below. Such changes in
         the rate of payroll deductions may be made at any time during an
         Offering Period, but not more than one (1) change may be made effective
         during any three month period. A participant may increase or decrease
         the rate of payroll deductions for any subsequent Offering Period by
         filing with the Human Resources Department a new authorization

<PAGE>

         for payroll deductions not later than the beginning of such Offering
         Period.

                  c. Cash Contributions must be received by the Company in the
         form of a cashiers check, certified check or wire transfer no later
         than two business days prior to the end of an Offering Period and no
         increase will be permitted although (i) one decrease will be permitted
         and (ii) Cash Contributions, may be withdrawn through withdrawal from
         the Plan as set forth in Section 12.

                  d. All payroll deductions and all Cash Contributions are
         credited to the respective participant's account established under this
         Plan and are deposited with the general funds of the Company. No
         interest accrues on such amounts. All amounts received or held by the
         Company under this Plan may be used by the Company for any corporate
         purposes, and the Company shall not be obligated to segregate such
         amounts.

                  e. On each Purchase Date, so long as this Plan remains in
         effect and provided that the participant has not submitted a signed and
         completed withdrawal form before that date which notifies the Company
         that the participant wishes to withdraw from the Offering Period under
         this Plan and have all payroll deductions and Cash Contributions, if
         any, in the account maintained on behalf of the participant as of that
         date returned to the participant, the Company shall apply the funds
         then in the participant's account to the purchase of whole and
         fractional shares of Common Stock reserved under the option granted to
         such participant with respect to the Offering Period to the extent that
         such option is exercisable on the Purchase Date. The Purchase Price per
         share shall be as specified in Section 9 of this Plan. As provided in
         Sections 12 and 13 hereof, no Common Stock shall be purchased on a
         Purchase Date on behalf of any employee whose participation in this
         Plan has terminated prior to such Purchase Date.

                  f. Shares purchased hereunder shall be initially maintained in
         separate stock accounts for the participants at a brokerage firm, bank
         or other administrator (the "Administrator") selected by, and pursuant
         to an arrangement with the Company. The Administrator shall maintain
         accounts for the benefit of the participants which shall reflect each
         participant's interest in the shares of Company Stock held by the
         Administrator for the benefit of each participant. Any participant may
         elect to have the Company Stock purchased under the Plan on such
         participant's behalf withdrawn from his or her account and certificates
         issued directly to the participant. Any election under this paragraph
         shall be on the forms provided by the Committee and shall be issued in
         accordance with this Section. In the event that Company Stock under the
         Plan is issued directly to a participant, the Company will deliver to
         each participant a stock certificate or certificates issued in such
         participant's name, or the name of the participant and another person
         designated by the participant as joint tenants with rights of
         survivorship, for the number of whole shares of Company Stock being
         withdrawn from the participant's account, as soon as practicable after
         the participant notifies the Administrator of his or her election to
         withdraw the shares. Only certificates representing full shares of
         Company Stock will be issued to a participant under this paragraph. In
         the event of the complete withdrawal of shares from a participant's
         account, the participant shall receive that number of full shares in
         his or her account and cash in lieu of fractional shares. If and to the
         extent provided by the Committee, for so long as such shares are
         maintained in accounts, all dividends paid with respect to such shares
         may be credited to each participant's account and be automatically
         reinvested in Company Stock as a Cash Contribution. The Committee may
         provide that transaction fees incurred with respect to dividend
         reinvestment be paid by either the Company or the participant.

                  g. During a participant's lifetime, such participant's option
         to purchase shares hereunder is exercisable only by him or her. The
         participant will have no interest or voting right

<PAGE>

         in shares covered by his or her option until such option has been
         exercised. Shares to be delivered to a participant under this Plan
         will be registered in the name of the participant or in the name of
         the participant and, if so designated, his or her spouse.

         11.      LIMITATIONS ON SHARES TO BE PURCHASED.

                  a. No employee shall be entitled to purchase stock under this
         Plan at a rate which, when aggregated with his or her rights to
         purchase stock under all other employee stock purchase plans of the
         Company or any Subsidiary exceeds $25,000 in fair market value,
         determined as of the Offering Date (or such other limit as may be
         imposed by the Code) for each calendar year in which the employee
         participates in this Plan.

                  b. No employee shall be entitled to purchase more than the
         Maximum Share Amount (as defined below) on any single Purchase Date.
         Not less than fifteen (15) days prior to the commencement of any
         Offering Period, the Board may in its sole discretion, set a maximum
         number of shares which may be purchased by an employee at any single
         Purchase Date (hereinafter the "Maximum Share Amount"). Initially,
         there shall be no Maximum Share Amount. If a Maximum Share Amount is
         set, then all participants must be notified of such Maximum Share
         Amount not less than five (5) days prior to the commencement of the
         next Offering Period. Once the Maximum Share Amount is set, it shall
         continue to apply with respect to all succeeding Purchase Dates and
         Offering Periods unless revised by the Board as set forth above.

                  c. If the number of shares to be purchased on a Purchase Date
         by all employees participating in this Plan exceeds the number of
         shares then available for issuance under this Plan, then the Company
         will make a pro rata allocation of the remaining shares in as uniform a
         manner as shall be reasonably practicable and as the Board shall
         determine to be equitable. In such event, the Company shall give
         written notice of such reduction of the number of shares to be
         purchased under a participant's option to each participant affected
         thereby.

                  d. Any payroll deductions and Cash Contributions accumulated
         in a participant's account which are not used to purchase stock due to
         the limitations in this Section 11 shall be returned to the participant
         as soon as practicable after the end of the applicable Purchase Period,
         without interest.

         12.      WITHDRAWAL.

                  a. Each participant may withdraw from an Offering Period under
         this Plan by signing and delivering to the Human Resources Department a
         written notice to that effect on a form provided for such purpose. Such
         withdrawal may be elected at any time at least fifteen (15) days prior
         to the end of an Offering Period.

                  b. Upon withdrawal from this Plan, the accumulated payroll
         deductions and the Cash Contributions, if any, shall be returned to the
         withdrawn participant without interest, and his or her interest in this
         Plan shall terminate. In the event a participant voluntarily elects to
         withdraw from this Plan, he or she may not resume his or her
         participation in this Plan during the same Offering Period, but he or
         she may participate in any Offering Period under this Plan which
         commences on a date subsequent to such withdrawal by filing a new
         Subscription Agreement in the same manner as set forth above for
         initial participation in this Plan.

         13. TERMINATION OF EMPLOYMENT. Termination of a participant's
employment for any

<PAGE>

reason, including retirement or death, immediately terminates his or her
participation in this Plan. In such event, the payroll deductions and Cash
Contributions, if any, credited to the participant's account will be returned
to him or her or, in the case of his or her death, to his or her legal
representatives without interest and the remaining shares credited to the
participant's account shall be distributed to the participant in accordance
with Section 10f. For purposes of this Section 13, an employee will not be
deemed to have terminated employment or failed to remain in the continuous
employ of the Company in the case of a transfer to or from the Company and to
or from any Subsidiary that the Board has designated as eligible to
participate in this Plan, sick leave, military leave, or any other leave of
absence approved by the Board; PROVIDED, HOWEVER, that such leave is for a
period of not more than ninety (90) days or reemployment upon the expiration
of such leave is guaranteed by contract or statute.

         14. RETURN OF PAYROLL DEDUCTIONS AND CASH CONTRIBUTIONS. In the
event a participant's interest in this Plan is terminated by withdrawal or
termination of employment or otherwise, or in the event this Plan is
terminated by the Board, the Company shall promptly deliver to the
participant all payroll deductions and Cash Contributions credited to such
participant's account. No interest shall accrue on the payroll deductions or
Cash Contributions of a participant in this Plan.

         15. CAPITAL CHANGES. Subject to any required action by the
stockholders of the Company, the number of shares of Common Stock covered by
each option under this Plan which has not yet been exercised and the number
shares of Common Stock which have been authorized for issuance under this
Plan but have not yet been placed under option (collectively, the
"Reserves"), as well as the price per share of Common Stock covered by each
option under this Plan which has not yet been exercised, shall be
proportionately adjusted for any increase or decrease in the number of issued
and outstanding shares of Common Stock of the Company resulting from a stock
split or the payment of a stock dividend (but only in the Common Stock) or
any other increase or decrease in the number of issued and outstanding shares
of Common Stock effected without receipt of any consideration by the Company;
PROVIDED, HOWEVER, that conversion of any convertible securities of the
Company shall not be deemed to have been "effected without receipt of
consideration" and PROVIDED, FURTHER, that the price per share of Common
Stock shall not be reduced below its par value per share. Such adjustment
shall be made by the Board, whose determination shall be final, binding and
conclusive. Except as expressly provided herein, no issue by the Company of
shares of stock of any class, or securities convertible into shares of stock
of any class, shall affect, and no adjustment by reason thereof shall be made
with respect to, the number or price of shares of Common Stock subject to an
option.

         In the event of the proposed dissolution or liquidation of the
Company, the Offering Period will terminate immediately prior to the
consummation of such proposed action, unless otherwise provided by the Board.
The Board may, in the exercise of its sole discretion in such instances,
declare that the options under this Plan shall terminate as of a date fixed
by the Board and give each participant the right to exercise his or her
option as to all of the optioned stock, including shares which would not
otherwise be exercisable. In the event of a proposed sale of all or
substantially all the assets of the Company, or the merger or consolidation
of the Company with or into another corporation, each option under this Plan
shall be assumed or an equivalent option shall be substituted by such
successor corporation or a parent or subsidiary of such successor
corporation, unless the Board determines, in the exercise of its sole
discretion and in lieu of such assumption or substitution that the
participant shall have the right to exercise the option as to all of the
optioned stock. If the Board makes an option exercisable in lieu of
assumption or substitution in the event of a merger, consolidation or sale of
assets, the Board shall notify the participant that the option shall be fully
exercisable for a period of fifteen (15) days from the date of such notice,
and the option will terminate upon the expiration of such period.

         The Board may, if it so determines in the exercise of its sole
discretion, also make provision for adjusting the Reserves, as well as the
price per share of Common Stock covered by each outstanding

<PAGE>

option, in the event that the Company effects one or more reorganizations,
recapitalizations, rights offerings or other increases or reductions of
shares of its outstanding Common Stock, or in the event of the Company being
consolidated with or merged into any other corporation; PROVIDED, HOWEVER,
that the price per share of Common Stock shall not be reduced below its par
value per share.

         16. NONASSIGNABILITY. Neither payroll deductions credited to a
participant's account nor Cash Contributions, if any, nor any rights with
regard to the exercise of an option or to receive shares under this Plan may
be assigned, transferred, pledged or otherwise disposed of in any way (other
than by will, the laws of descent and distribution or as provided in Section
23 hereof) by the participant. Any such attempt at assignment, transfer,
pledge or other disposition shall be void and without effect.

         17. REPORTS. Individual accounts will be maintained for each
participant in this Plan. Each participant shall receive promptly after the
end of each Purchase Period and promptly following any other transaction or
activity on the account a report of his or her account setting forth (i) the
Cash Contributions, if any; (ii) the total payroll deductions accumulated;
(iii) the number of shares purchased; (iv) the per share price thereof and
(v) the remaining cash balance, if any, carried forward to the next Purchase
Period or Offering Period, as the case may be.

         18. NOTICE OF DISPOSITION. Each participant shall notify the Company
if the participant disposes of any of the shares purchased in any Offering
Period pursuant to this Plan if such disposition occurs within two (2) years
from the Offering Date or within one (1) year from the Purchase Date on which
such shares were purchased (the "Notice Period"). Unless such participant is
disposing of any of such shares during the Notice Period, such participant
shall keep the certificates representing such shares in his or her name (and
not in the name of a nominee) during the Notice Period. The Company may, at
any time during the Notice Period, place a legend or legends on any
certificate representing shares acquired pursuant to this Plan requesting the
Company's transfer agent to notify the Company of any transfer of the shares.
The obligation of the participant to provide such notice shall continue
notwithstanding the placement of any such legend on the certificates.

         19. NO RIGHTS TO CONTINUED EMPLOYMENT. Neither this Plan nor the
grant of any option hereunder shall confer any right on any employee to
remain in the employ of the Company or any Subsidiary, or restrict the right
of the Company or any Subsidiary to terminate such employee's employment.

         20. EQUAL RIGHTS AND PRIVILEGES. All eligible employees shall have
equal rights and privileges with respect to this Plan so that this Plan
qualifies as an "employee stock purchase plan" within the meaning of Section
423 or any successor provision of the Code and the related regulations. Any
provision of this Plan which is inconsistent with Section 423 or any
successor provision of the Code shall, without further act or amendment by
the Company or the Board, be revised to comply with the requirements of
Section 423. This Section 20 shall take precedence over all other provisions
in this Plan.

         21. NOTICES. All notices or other communications by a participant
under or in connection with the Plan shall be deemed to have been duly given
when received in the form specified by the Company at the location, or other
person, designated by the Company for the receipt thereof.

         22. TERMS; STOCKHOLDER APPROVAL. After this Plan is adopted by the
Board, this Plan will become effective on the date that is the first
commencement of an Offering Period (as defined above). This Plan shall be
approved by the stockholders of the Company, in any manner permitted by
applicable corporate law, within twelve (12) months before or after the date
this Plan is adopted by the Board. No purchase of shares pursuant to this
Plan shall occur prior to such stockholder approval. Thereafter, no later
than twelve (12) months after the Company becomes subject to Section 16(b) of
the Exchange Act,

<PAGE>

the Company will comply with the requirements of Rule 16b-3 with respect to
stockholder approval. This Plan shall continue until the earlier to occur of
(a) termination of this Plan by the Board (which termination may be effected
by the Board at any time), (b) issuance of all of the shares of the Common
Stock reserved for issuance under this Plan, or (c) ten (10) years from the
adoption of this Plan by the Board.

         23.      DESIGNATION OF BENEFICIARY.

                  a. A participant may file a written designation of a
         beneficiary who is to receive any shares and cash, if any, from the
         participant's account under this Plan in the event of such
         participant's death subsequent to the end of a Purchase Period but
         prior to delivery to him of such shares and cash. In addition, a
         participant may file a written designation of a beneficiary who is to
         receive any cash from the participant's account under this Plan in the
         event of such participant's death prior to a Purchase Date.

                  b. Such designation of beneficiary may be changed by the
         participant at any time by written notice. In the event of the death of
         a participant and in the absence of a beneficiary validly designated
         under this Plan who is living at the time of such participant's death,
         the Company shall deliver such shares or cash to the executor or
         administrator of the estate of the participant or if no such executor
         or administrator has been appointed (to the knowledge of the Company),
         the Company, in its discretion, may deliver such shares or cash to the
         spouse or to any one or more dependents or relatives of the
         participant, or if no spouse, dependent or relative is known to the
         Company, then to such other person as the Company may designate.

         24. CONDITIONS UPON ISSUANCE OF SHARES; SECURITIES LAW LIMITATIONS
ON SALE OF SHARES. Shares shall not be issued with respect to an option
unless the exercise of such option and the issuance and delivery of such
shares pursuant thereto shall comply with all applicable provisions of law,
domestic or foreign, including, without limitation, the Securities Act of
1933, as amended, the Exchange Act, the rules and regulations promulgated
thereunder, state securities law and regulations and the requirements of any
stock exchange or automated quotation system upon which the shares may than
be listed, and shall be further subject to the approval of counsel for the
Company with respect to such compliance.

         25. APPLICABLE LAW. Except to the extent governed by federal law,
the Plan shall be governed by the substantive laws (excluding the conflict of
laws rules) of the State of Iowa.

         26. AMENDMENTS OR TERMINATION OF THIS PLAN. The Board may, at any
time, amend, terminate or extend the term of this Plan, except that any such
termination cannot affect options previously granted under this Plan, nor may
any amendments make any change in an option previously granted which would
adversely affect the right of any participant, nor may an amendment be made
without approval of the stockholders of the Company obtained in accordance
with Section 22 hereof within twelve (12) months of the adoption of such
amendment (or earlier if required by Section 22) if such amendment would:

                  a.       Increase the number of shares that may be issued
                           under this Plan;

                  b.       Change the designation of the employees (or class of
                           employees) eligible for participation in this Plan;
                           or

                  c.       Constitute an amendment for which stockholder
                           approval is required in order to comply with Rule
                           16b-3 (or any successor rule) of the Exchange Act.

<PAGE>

         ADOPTED BY the Company on the 28th day of July, 1999.

MICROWARE SYSTEMS CORPORATION

By:  /s/ Kenneth B. Kaplan
   --------------------------------

Its:   Chairman
    -------------------------------<PAGE>

                                                                  EXHIBIT 10.76

                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT ("Agreement") is made and entered into on
the 25th day of May, 1999, by and between Capital Senior Living Corporation,
a Delaware corporation ("CSL" or "the Company"), and Ralph A. Beattie, an
individual residing in the State of Texas ("Employee"). The term of this
Agreement shall be deemed to have commenced as of June 1, 1999 ("Employment
Commencement Date").

         1.       APPOINTMENT, TITLE AND DUTIES. CSL hereby employs Employee
to serve in the position as assigned to him by the Board of Directors. In
such capacity, Employee shall report to the Chief Executive Officer of CSL
and shall have such powers, duties and responsibilities as are customarily
assigned to said position and as may be otherwise assigned to him. In
addition Employee shall have such other duties and responsibilities as may
reasonably be assigned to him by the Board of Directors, including serving
with the consent or at the request of CSL on the board of directors or as an
officer of entities affiliated with CSL (collectively, the "Affiliates") of
affiliated corporations.

         2.       TERM OF AGREEMENT. The initial term of this Agreement shall
be for a three (3) year period ending on May 24, 2002, however, the term of
this Agreement shall automatically be extended for a two (2) year term on a
consecutive basis. This Agreement shall terminate upon the earlier of: (i)
the date of the voluntary resignation of Employee, (ii) the date of
Employee's death or determination of Employee's disability (as defined in
Paragraph 6 below), (iii) the date of notice by CSL to Employee that this
Agreement is being terminated by CSL whether "for cause" (as defined in
Paragraph 6 below) or without cause, or (iv) upon the date a notice of intent
to resign for "good reason" (as defined in Paragraph 6 below) is delivered to
the Company by Employee.

         3.       ACCEPTANCE OF POSITION. Employee hereby accepts the
position assigned by the Board of Directors and agrees that during the term
of this Agreement he will faithfully perform his duties and will devote
substantially all of his business time to the business and affairs of CSL and
will not engage, for his own account or for the account of any other person
or entity, in any other business or enterprise except with the express
written approval of the Board of Directors of CSL. Employee may, at his sole
discretion, (i) serve as a director on the boards of directors of other
entities, businesses and enterprises he currently serves on, and (ii) make
personal, passive investments. Employee agrees to perform his duties
faithfully, diligently and to the best of his ability, to use his best
efforts to advance the best interests of the Company at all times, and to
abide by all moral, ethical and lawful policies, guidelines, procedures,
instructions and orders given to him by the Company from time to time.

<PAGE>

         4.       SALARY AND BENEFITS. During the term of this Agreement:

                  A)       CSL shall pay to Employee a base salary at an annual
                           rate of One Hundred Eighty Thousand Dollars
                           ($180,000) per annum, paid in approximately equal
                           installments no less frequently than semi-monthly. An
                           annual bonus of thirty- three and one-third percent
                           (33-1/3%) of Employee's base salary shall be paid in
                           quarterly installments, subject to increase by the
                           Compensation Committee and subject to meeting
                           performance standards that the Company's reported
                           quarterly earnings per share is not less than the
                           First Call consensus earnings per share for that
                           quarter. The Compensation Committee will use its
                           reasonable discretion to determine the amount of the
                           quarterly bonus to be paid if the reported quarterly
                           earnings per share are lower than the First Call
                           consensus earnings per share. The Company shall
                           deduct from Employee's compensation and bonus, if
                           any, all applicable local, state, Federal or foreign
                           taxes, including, but not limited to, income tax,
                           withholding tax, social security tax and pension
                           contributions (if any).

                  B)       Employee shall participate in all health, retirement,
                           Company-paid insurance, sick leave, disability,
                           expense reimbursement and other benefit programs, if
                           any, which CSL makes available, in its sole
                           discretion, to its senior executives; however,
                           nothing herein shall be construed to obligate the
                           Company to establish or maintain any employee benefit
                           program. The Company may purchase and maintain in
                           force a death and disability insurance policy in an
                           amount at all times equal to not less than an amount
                           equal to Employee's annual base salary multiplied by
                           two (2). The Company would be the beneficiary of said
                           policy and would use said policy for the purposes
                           described in Paragraph 7(A)(i), below. Reimbursement
                           of Employee's reasonable and necessary business
                           expenses incurred in the pursuit of the business of
                           the Company or any of its affiliates shall be made to
                           Employee upon his presentation to the Company of
                           itemized bills, vouchers or accountings prepared in
                           conformance with applicable regulations of the
                           Internal Revenue Service and the policies and
                           guidelines of the Company.

                  C)       Employee shall be entitled to reasonable vacation
                           time in an amount of Four (4) weeks per year pursuant
                           to the Company's Corporate Policies and Procedures
                           Manual, provided that not more than two (2) weeks of
                           such vacation time may be taken consecutively without
                           prior notice to, and the consent of, the Compensation
                           Committee of the Board of Directors of CSL or, if
                           there is no Compensation Committee, the Board of
                           Directors.

         5.       STOCK OPTIONS. Pursuant to the terms of CSL's 1997 Stock
Option Plan, if adopted, Employee shall be entitled to receive a certain
number of options, if available, to purchase the

                                       2

<PAGE>

common stock of the Company. The number of options to be offered to Employee
shall be determined by the Board of Directors of CSL.

         6.       CERTAIN TERMS DEFINED. For purposes of this Agreement:

                  A)       Employee shall be deemed to be disabled if a physical
                           or mental condition shall occur and persist which, in
                           the written opinion of two (2) licensed physicians,
                           has rendered Employee unable to perform his assigned
                           duties for CSL for a period of ninety (90)
                           consecutive calendar days or more, and which
                           condition, in the opinion of such physicians, is
                           likely to continue for an indefinite period of time,
                           rendering Employee unable to return to his duties for
                           CSL. One (1) of the two (2) physicians shall be
                           selected in good faith by the Board of Directors of
                           CSL, and the other of the two (2) physicians shall be
                           selected in good faith by Employee. In the event that
                           the two (2) physicians selected do not agree as to
                           whether Employee is disabled, as described above,
                           then said two (2) physicians shall mutually agree
                           upon a third (3rd) physician whose written opinion as
                           to Employee's condition shall be conclusive upon CSL
                           and Employee for purposes of this Agreement.

                  B)       A termination of Employee's employment by CSL shall
                           be deemed to be "for cause" if it is based upon (i)
                           Employee is charged with and then convicted of any
                           misdemeanor or any felony involving personal
                           dishonesty, (ii) disloyalty by Employee to the
                           Company, including but not limited to embezzlement,
                           or (iii) Employee's failure or refusal to perform his
                           duties in accordance with this Agreement based on a
                           standard of reasonableness.

                  C)       A resignation by Employee shall not be deemed to be
                           voluntary, and shall be deemed to be a resignation
                           for "good reason" if it is based upon (i) a material
                           diminution in Employee's base salary which is not
                           part of an overall diminution for all executive
                           officers of the Company, or (ii) a material breach by
                           CSL of the Company's obligations to Employee under
                           this Agreement or under the Company's Stock Option
                           Plan, if adopted.

         7.       CERTAIN BENEFITS AND OBLIGATIONS UPON TERMINATION.

                  A)       In the event that Employee's employment terminates
                           (i) because of death or disability, (ii) because CSL
                           has terminated Employee other than "for cause" (as
                           described above), including a Fundamental Change and
                           if Employee has been continuously employed by CSL for
                           at least one year prior to the Fundamental Change as
                           described below, or (iii) because Employee has
                           voluntarily resigned for "good reason" as described
                           above, then,

                           i)       CSL shall pay Employee in accordance with
                                    its Corporate Policies

                                       3

<PAGE>

                                    and Procedures Manual his base salary and
                                    annual bonus paid during the term of this
                                    Agreement in the past twelve (12) months for
                                    the balance of the term of this Agreement
                                    (not including any future extensions), but
                                    not less than two (2) years (base salary
                                    plus annual bonus paid during the term of
                                    this Agreement in the past twelve (12)
                                    months for three (3) years if termination
                                    due to a Fundamental Change) from the date
                                    of the notice of termination, and Employee
                                    shall retain all his Company stock options
                                    that are vested; provided, however, the
                                    benefits described in this Paragraph 7(A)(i)
                                    shall terminate at such time as Employee
                                    materially breaches the provisions of
                                    Paragraphs 7(D), 8, 9, or 10 hereof. A
                                    Fundamental Change shall be defined as a
                                    merger, consolidation or any sale of all or
                                    substantially all of the assets of the
                                    Company that requires the consent or vote of
                                    the holders of common stock where the
                                    Company is not the survivor or in control;

                           ii)      All accrued but unpaid or unused vacation,
                                    sick pay and expense reimbursement shall be
                                    calculated in accordance with CSL's
                                    Corporate Policies and Procedures Manual.

                  B)       In the event that Employee's employment terminates
                           for any other cause other than those set forth in
                           Paragraph 7(A), (which can include voluntary
                           resignation without good reason or termination by CSL
                           "for cause"), then,

                           i)       CSL shall pay Employee his base salary and
                                    annual bonus paid during the term of this
                                    Agreement in the past twelve (12) months up
                                    to and through the date of termination;

                           ii)      All accrued but unpaid or unused vacation,
                                    sick pay and expense reimbursement shall be
                                    calculated in accordance with CSL's
                                    corporate Policies and Procedures Manual.

                  C)       In the event that Employee's employment terminates by
                           reason of his death, all benefits provided in this
                           Paragraph 7 shall be paid to Employee's estate or as
                           his executor or personal representative shall direct,
                           but payment may be deferred until Employee's executor
                           or personal representative has been appointed and
                           qualified pursuant to the law in effect in Employee's
                           jurisdiction of residence at the time of his death;

                  D)       Following the termination for any reason of
                           Employee's employment, Employee shall not for himself
                           or any third party, directly or indirectly (i) divert
                           or attempt to divert from the Company or its
                           Affiliates any business of any kind in which it is or
                           has been engaged, including, without limitation, the

                                       4

<PAGE>

                           solicitation of, interference with, or entering into
                           any contract with any of its past or then existing
                           customers, and (ii) employ, solicit for employment,
                           or recommend for employment any person employed by
                           the Company or its Affiliates during the period of
                           such person's employment and for a period of two (2)
                           years thereafter.

         8.       CONFIDENTIALITY. Employee hereby acknowledges his
understanding that as a result of his employment by CSL, he will have access
to, and possession of, valuable and important confidential or proprietary
data, documents and information concerning CSL or its Affiliates, its
operations and its future plans. Employee hereby agrees that he will not,
either during the term of his employment with CSL, or at any time before or
after the term of his employment with CSL, divulge or communicate to any
person or entity, or direct any employee or agent of CSL or its Affiliates or
of his to divulge or communicate to any person or entity, or use to the
detriment of CSL or its Affiliates or for the benefit of any other person or
entity, or make or remove any copies of, such confidential information or
proprietary data or information, whether or not marked or otherwise
identified as confidential or secret. Upon any termination of this Agreement
for any reason whatsoever, Employee shall surrender to CSL or its Affiliates
any and all materials, including but not limited to drawings, manuals,
reports, documents, lists, photographs, maps, surveys, plans, specifications,
accountings and any and all other materials relating to the Company or any of
its business, including all copies thereof, that Employee has in his
possession, whether or not such material was created or compiled by Employee,
but excluding, however, personal memorabilia belonging to Employee and notes
taken by him as a member of the Board of Directors. With the exception of
such excluded items, materials, etc., Employee acknowledges that all such
material is solely the property of CSL or its Affiliates, and that Employee
has no right, title or interest in or to such materials. Notwithstanding
anything to the contrary set forth in this Paragraph 8, the Provisions of
this Paragraph 8 shall not apply to information which: (i) is or becomes
generally available to the public other than as a result of disclosure by
Employee, or (ii) is already known to Employee as of the date of this
Agreement from sources other than CSL or its Affiliates, or (iii) is required
to be disclosed by law or by regulatory or judicial process.

         9.       NON-COMPETITION. Employee hereby agrees that for a period
of one (1) year after any termination for any reason whatsoever of this
Agreement and after the last payment to Employee provided for hereunder, he
will not, directly or indirectly, commence doing business, in any manner
whatsoever, which is in competition with all or any portion of the business
of CSL or its Affiliates in any state in which CSL or its Affiliates then
operate, own, asset manage, or is in the process of developing more than two
(2) facilities. CSL hereby acknowledges and agrees that Employee's ownership
of a class of securities listed on a stock exchange or traded on the
over-the-counter market that represents five percent (5%) or less of the
number of shares of such class of securities then issued and outstanding
shall not constitute a violation of this Paragraph 9.

         10.      WORK PRODUCT. The Employee agrees that all innovations,
improvements, developments, methods, designs, analyses, reports and all
similar or related information which relates to the Company's or any of its
subsidiaries' or Affiliates' actual or anticipated business, or

                                       5

<PAGE>

existing or future products or services and which are conceived, developed or
made by the Employee while employed by the Company or its Affiliates ("Work
Product") belong to the Company or such subsidiary or Affiliate. The Employee
will promptly disclose such Work Product to the Board and perform all actions
reasonably requested by the Board (whether during or after the employment
period) to establish and to confirm such ownership (including, without
limitation, assignments, consents, powers of attorney and other instruments).

         11.      LEGAL ACTION. In the event that any action or proceeding is
brought to enforce the terms and provisions of this Agreement, the prevailing
party shall be entitled to recover reasonable attorneys' fees and costs. In
the event of a breach or threatened breach by Employee of the provisions of
Paragraph 7(D), 8, 9, or 10, Employee and the Company agree that the Company,
shall, in addition to any other available remedies, be entitled to an
injunction restraining Employee from violating the terms of the applicable
Paragraph and that said injunction is appropriate and proper relief for such
violation.

         12.      NOTICES. All notices and other communications provided to
either party hereto under this Agreement shall be in writing and delivered by
hand delivery, overnight courier service or certified mail, return receipt
requested, to the party being notified at said party's address set forth
adjacent to said party's signature on this Agreement, or at such other
address as may be designated by a party in a notice to the other party given
in accordance with this Agreement. Notices given by hand delivery or
overnight courier service shall be deemed received on the date of delivery
shown on the courier's delivery receipt or log. Notices given by certified
mail shall be deemed received three (3) days after deposit in the U.S. Mail.

         13.      CONSTRUCTION. In construing this Agreement, if any portion
of this Agreement shall be found to be invalid or unenforceable, the
remaining terms and provisions of this Agreement shall be given effect to the
maximum extent permitted without considering the void, invalid or
unenforceable provision. In construing this Agreement, the singular shall
include the plural, the masculine shall include the feminine and neuter
genders, as appropriate, and no meaning or effect shall be given to the
captions of the paragraphs in this Agreement, which are inserted for
convenience of reference only.

         14.      CHOICE OF LAW; SURVIVAL. This Agreement shall be governed
and construed in accordance with the internal laws of the State of Texas
without resort to choice of law principles. The provisions of Paragraphs
7(A), (B), (C), (D), 8, 9, and 10 shall survive the termination of this
Agreement for any reason whatsoever.

         15.      INTEGRATION; AMENDMENTS. This is an integrated Agreement.
This Agreement constitutes and is intended as a final expression and a
complete and exclusive statement of the understanding and agreement of the
parties hereto with respect to the subject matter of this Agreement. All
negotiations, discussions and writings between the parties hereto relating to
the subject matter of this Agreement are merged into this Agreement, and
there are no rights conferred, nor promises, agreements, conditions,
undertakings, warranties or representations, oral or written,

                                       6

<PAGE>

expressed or implied, between the undersigned parties as to such matters
other than as specifically set forth herein. No amendment or modification of
or addendum to, this Agreement shall be valid unless the same shall be in
writing and signed by the parties hereto. No waiver of any of the provisions
of this Agreement shall be valid unless in writing and signed by the party
against whom it is sought to be enforced.

                                       7

<PAGE>

         16.      BINDING EFFECT. This Agreement is binding upon and shall
inure to the benefit of the parties hereto and their respective heirs,
personal representatives, successors and assigns; PROVIDED, HOWEVER, that
Employee shall not be entitled to assign his interest in this Agreement
(except for an assignment by operation of law to his estate), or any portion
hereof, or any rights hereunder, to any party. Any attempted assignment by
Employee in violation of this Paragraph 16 shall be null, void, AB INITIO and
of no effect of any kind or nature whatsoever.

         IN WITNESS WHEREOF, the parties have executed this Agreement on the
date set forth above to be effective as of the date specified in the preamble
of this Agreement.

                                    CAPITAL SENIOR LIVING CORPORATION
                                    a Delaware corporation

Address:
14160 Dallas Parkway, #300
Dallas, TX 75240                    By: /s/ James A. Stroud
                                       ----------------------------------------
                                       James A. Stroud, Chairman of the Company

                                    EMPLOYEE

Address:
3624 Haynie Avenue
Dallas, TX 75205                       /s/ Ralph A. Beattie
                                       ----------------------------------------

                                       8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00005-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00005-of-00352.parquet"}]]