Document:

Exhibit 10.2

                          Agreement and Plan of Merger
                                 By and Between
                   ANTs software inc. (a Delaware Corporation)
                                       And
                    ANTs software.com (a Nevada Corporation)

      This Agreement and Plan of Merger is made on this 8th day of December
2000, between ANTs software.com, a Nevada corporation, (hereinafter called the
"Nevada Company"), and ANTs software inc., a Delaware corporation which has
recently been formed for the purpose of this merger the principal purpose of
which is to change the state of incorporation of the Nevada Company,
(hereinafter called the "Delaware Company").

      WHEREAS, the Nevada Company has an authorized capital stock consisting of
Twenty Million (20,000,000) shares of common stock, being a single class,
without series, $0.001 par value per share, of which 12,988,099 shares have been
duly issued, fully paid and are now outstanding on the books of the corporation
as of the date of this agreement (pre-merger); and

      WHEREAS, the Delaware Company has an authorized capital stock consisting
of One Hundred Million (100,000,000) shares of common stock, being a single
class, without series, $0.0001 par value per share, of which one (1) share has
been duly issued, fully paid and is now outstanding as of the date of this
agreement; and

      WHEREAS, the Board of Directors of the Nevada Company and the Delaware
Company, respectively, deem it advisable and generally to the advantage and
welfare of the parties to this agreement and their respective shareholders, that
the Nevada Company merge with and into the Delaware Company pursuant to the
provisions of Sections 92A.005 et seq. of Nevada Revised Statutes and Sections
251 et seq. of the General Corporation Law of the State of Delaware; and

      WHEREAS, pursuant to the 2000 Annual Meeting of Shareholders of the Nevada
Company held on the 12th day of September 2000, representing a majority of
common shares of record of the Nevada Company there being Twelve Million Seven
Hundred Fifty Six Thousand One Hundred Ninety Seven (12,756,197) shares issued
and outstanding entitled to vote at such meeting (pre-merger), a majority of
shareholders of record voted either by proxy or in person, Seven Million One
Hundred Eighty Six Thousand Seven Hundred Five (7,186,705) shares voted FOR and
One Hundred Eight Thousand Forty Seven (108,047) shares voted AGAINST the change
of domicile of the Nevada Company; and

      WHEREAS, the Nevada Company, by approval of a majority of its shareholders
and Directors, and the Delaware Company by approval of its sole shareholder and
sole Director, do agree to a merger of the two corporations upon the following
terms and conditions.

<PAGE>

      NOW THEREFORE, in consideration of the premises and of the mutual
agreement herein contained and of the mutual benefits provided, it is agreed by
and between the parties hereto as follows:

                                 PLAN OF MERGER

      1. Preliminary Matters

      A. The registered office of the Nevada Company in the State of Nevada is
located at 417 West Plumb Lane, Reno, Nevada 89509, and J. Douglas Clark is the
registered agent of the Nevada Company upon whom service of process for the
Nevada Company may be received within the State of Nevada.

      B. The registered office of the Delaware Company in the State of Delaware
is located at 615 South Dupont Highway, Dover, Delaware 19901, County of Kent,
and National Corporate Research, Ltd. is the registered agent of the Delaware
Company upon which service of process for the Delaware Company may be received
within the State of Delaware.

      C. Hereafter, the Nevada Company does appoint the Nevada Secretary of
State as the Registered Agent of the Nevada Company upon whom service of process
may be received on behalf of the Nevada Company within the State of Nevada, and
any notification of procedure shall hereafter be forwarded by the Nevada
Secretary of State to the principal office and place of business of the Delaware
Company at 801 Mahler Road, Suite G, Burlingame, CA 94010.

      D. A copy of this Agreement and Plan of Merger shall be placed permanently
on file at the principal office and place of business of the Delaware Company.

      E. The surviving corporation, the Delaware Company, is to be governed by
the laws of the State of Delaware, but it shall comply with the applicable
provisions of the California Corporations Code, as amended, since it will
transact business in the State of California, and this Agreement and Plan of
Merger shall be filed with the Delaware Secretary of State and the Nevada
Secretary of State so that:

      1) The Delaware Company may be served with process in any proceeding for
the enforcement of the rights of dissenting shareholders of the Nevada Company
against the Delaware Company which is the surviving corporation of this
Agreement and Plan of Merger; and

      2) The Delaware Company agrees to the irrevocable appointment of the
Nevada Secretary of State as its registered agent to accept service of process
in any proceeding within the State of Nevada; and

      3) The Delaware Company agrees that it will promptly pay to any dissenting
shareholders of the Nevada Company, the amount, if any, to which they shall be
entitled under

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<PAGE>

the provisions of Sections 92A.300 et seq. of Nevada Revised Statutes with
respect to the rights of dissenting shareholders; and

      4) A copy of this agreement will be provided to shareholders of the Nevada
Company at no cost.

      2. Merger. The Nevada Company shall be and it hereby is merged into the
Delaware Company, upon the Effective Date defined in Section 3 hereunder.

      3. Effective Date. This Agreement and Plan of Merger shall become
effective immediately upon compliance with the laws of the States of Nevada and
Delaware, the time of such effectiveness being hereinafter called the Effective
Date.

      4. Surviving Corporation. The Delaware Company shall survive the merger
herein contemplated and shall continue to be governed by the laws of the State
of Delaware, but the separate existence of the Nevada Company shall cease
forthwith upon the Effective Date.

      5. Authorized Capital. The authorized capital stock of the Delaware
Company following the Effective Date is and shall remain One Hundred Million
(100,000,000) shares of Common Stock, being of a single class, without series
and with a $0.0001 par value per share as defined in Article IV of its Amended
and Restated Certificate of Incorporation, unless and until they shall be
changed in accordance with the laws of the State of Delaware.

      6. Certificate of Incorporation. Upon the Effective Date, pursuant to
Sections 242 and 245 of the General Corporation Law of the State of Delaware,
the Amended and Restated Certificate of Incorporation of the Delaware Company
now on file with the Secretary of State of Delaware shall be amended to change
the name of the Delaware Company to "ANTs software inc". Such Amended and
Restated Certificate of Incorporation shall be the Certificate of Incorporation
of the Delaware Company following the Effective Date unless and until such
Amended and Restated Certificate of Incorporation shall be amended or repealed
in accordance with the provisions thereof, which power to amend or repeal is
hereby expressly reserved, and all rights or powers of whatsoever nature
conferred with such Amended and Restated Certificate of Incorporation or herein
upon any shareholder or director or officer of the Delaware Company or upon any
other person whomsoever are subject to the reserve of such power. Such Amended
and Restated Certificate of Incorporation shall constitute the Certificate of
Incorporation of the Delaware Company separate and apart from this Agreement and
Plan of Merger and may be separately certified as the Certificate of
Incorporation of the Delaware Company.

      7. By-Laws. The By-Laws of the Delaware Company as they exist on the
Effective Date shall be the By-Laws of the Delaware Company following the
Effective Date unless and until such By-Laws shall be amended or repealed in
accordance with the provisions thereof.

      8. Board of Directors and Officers. The members of the first Board of
Directors and the officers of the Delaware Company immediately after the
effective time of the merger

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<PAGE>

shall be those persons who were members of the Board of Directors and the
officers, respectively, of the Nevada Company, immediately prior to the
effective time of the merger, and such persons shall serve in such offices,
respectively, for the terms provided by law or in the By-Laws or until their
respective successors are duly elected and qualified, including, without
limitations, service by the directors in accordance with the election of such
directors as Class 1 directors, Class 2 directors and Class 3 directors at the
most recent Shareholder meeting of the Nevada Company in anticipation of this
re-incorporation in Delaware.

      9. Vacancies. If, upon the Effective Date, a vacancy shall exist in the
Board of Directors or in any of the officers of the Delaware Company as they are
specified above, such vacancy shall thereafter be filled by appointment and
majority approval of the Board of Directors of the Delaware Company in the
manner provided by law and the By-Laws of the Delaware Company.

      10. Further Assurance of Title. If at any time the Delaware Company shall
consider or be advised that any acknowledgements or assurances in law or other
similar actions are necessary or desirable in order to acknowledge or confirm in
and to the Delaware Company any right, title, or interest in the Nevada Company
held immediately prior to the Effective Date, the Nevada Company and its proper
officers and directors shall and will execute and deliver all such
acknowledgments or assurances in law and do all such things as are necessary or
proper to acknowledge or confirm such right, title or interest in the Delaware
Company in accordance with this Agreement and Plan of Merger, and the Delaware
Company and the proper officers and directors thereof are fully authorized to
take any and all such action in the name of the Nevada Company or otherwise.

      11. Retirement of Outstanding Stock. Forthwith upon the Effective Date,
the one (1) share of the Common Stock of the Delaware Company presently issued
and outstanding shall be retired, and no shares of Common Stock or other
securities of the Delaware Company shall be issued in respect thereof.

      12. Conversion of Outstanding Stock. Forthwith upon the Effective Date,
each of the issued and outstanding shares of Common Stock of the Nevada Company
and all rights in respect thereof shall be converted into one fully paid and
non-assessable share of Common Stock of the Delaware Company, and each
certificate nominally representing shares of Common Stock of the Nevada Company
shall for all purposes be deemed to evidence the ownership of shares of Common
Stock of the Delaware Company. The holders of such certificates of the Nevada
Company shall not be required to surrender their certificates in exchange for
certificates of Common Stock of the Delaware Company but, as certificates
nominally representing shares of Common Stock of the Nevada Company are
surrendered for transfer, the Delaware Company will cause to be issued
certificates representing shares of Common Stock of the Delaware Company, and,
at any time upon surrender by any holder of certificates nominally representing
shares of Common Stock of the Nevada Company, the Delaware Company will cause to
be issued therefore certificates for a like number of shares of Common Stock of
the Delaware Company, subject to any reverse or forward splits of Common Stock
of the Delaware Company in effect thereafter.

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<PAGE>

      13. Retirement of Treasury Stock. Forthwith upon the Effective Date,
shares of Common Stock of the Nevada Company held in the Treasury of the Nevada
Company, if any, on the Effective Date, shall be retired and no shares of Common
Stock or any other securities of the Delaware Company shall be issued in respect
thereof.

      14. Rights and Liabilities of the Delaware Company. At and after the
effective time of the merger, the Delaware Company shall succeed to and possess,
without further act or deed, all of the estate, rights, privileges, powers and
franchises, both public and private, and all of the property, real,
intellectual, personal, and mixed, of each of the parties hereto; all debts due
to the Nevada Company on whatever account shall be vested in the Delaware
Company; all claims, demands, property, rights, privileges, powers and
franchises and every other interest of either of the parties hereto shall be as
effectively the property of the Delaware Company as they were of the respective
parties hereto; the title to any real estate vested by deed or otherwise in the
Nevada Company shall not revert or be in any way impaired by reason of the
merger, but shall be vested in the Delaware Company; all rights of creditors and
all liens upon any property of either of the parties hereto shall be preserved
unimpaired, limited in lien to the property affected by such lien at the
Effective Date of the merger; all debts, liabilities, and duties of the
respective parties hereto shall henceforth attached to the Delaware Company and
may be enforced against it to the same extent as if such debts, liabilities, and
duties had been incurred or contracted by it; and the Delaware Company shall
indemnify and hold harmless the officers and directors of each of the parties
hereto against all such debts, liabilities and duties and against all claims and
demands arising out of the merger.

      15. Book Entries. The merger contemplated hereby shall be treated as a
pooling of interests and as of the Effective Date entries shall be made upon the
books of the Delaware Company in accordance with the following:

      A. The assets and liabilities of the Nevada Company shall be recorded at
the amounts at which they are carried on the books of the Nevada Company
immediately prior to the Effective Date with appropriate adjustment to reflect
the retirement of the one (1) share of Common Stock of the Delaware Company
presently issued and outstanding.

      B. There shall be credited to Capital Account the aggregate amount of the
par value per share of all of the Common Stock of the Delaware Company resulting
from the conversion of the outstanding Common Stock of the Nevada Company.

      C. There shall be credited to Capital Surplus Account an amount equal to
that carried on the Capital Surplus Account of the Nevada Company immediately
prior to the Effective Date.

      D. There shall be credited to Earned Surplus Account an amount equal to
that carried on the Earned Surplus Account of the Nevada Company immediately
prior to the Effective Date.

      16. Options and Warrants. Upon the Effective Date, the Delaware Company
will assume and continue all of the Nevada Company's stock option plans,
including but not limited

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<PAGE>

to its 2000 Stock Option Plan, and the outstanding and unexercised portions of
all options and warrants to buy Common Stock of the Nevada Company shall become
respectively options and warrants for the same number of shares of Common Stock
of the Delaware Company with no other changes in the terms and conditions of
such options and warrants, including exercise prices, and, effective upon the
Effective Date, the Delaware Company shall assume the outstanding and
unexercised portions of any and all such options and warrants and the
obligations of the Nevada Company with respect thereto.

      17. Service of Process on the Delaware Company. The Delaware Company
agrees that it may be served with process in the State of Nevada in any
proceeding for enforcement of any obligation of the Nevada Company as well as
for the enforcement of any obligation of the Delaware Company arising from the
merger, including any suit or other proceeding to enforce the right of any
shareholder as determined in appraisal proceedings pursuant to the provisions of
Sections 92A.300 et seq. of Nevada Revised Statues.

      18. Amendment. At any time before or after approval by the shareholders of
the Nevada Company, this Agreement and Plan of Merger may be amended in any
manner (except that any of the principal terms may not be amended without the
approval of the shareholders of the Nevada Company) as may be determined in the
judgment of the respective Board of Directors of the Nevada Company and the
Delaware Company to be necessary, desirable or expedient in order to clarify the
intention of the parties hereto or to effect or facilitate the purpose and
intent of this Agreement and Plan of Merger.

      19. Termination. This Agreement and Plan of Merger may be terminated and
abandoned by action of the Board of Directors of the Nevada Company at any time
prior to the Effective Date, whether before or after approval of the
shareholders of the parties hereto.

      20. Expenses and Rights of Dissenting Shareholders. The Delaware Company
shall pay all expenses of carrying this Agreement and Plan of Merger into effect
and of accomplishing the merger, including amounts, if any, to which dissenting
shareholders of the Nevada Company may be entitled by reason of this merger.

      21. Authorization. This Agreement and Plan of Merger was duly authorized
by a majority vote of the shareholders and Directors of the Nevada Company at
meetings held on September 12, 2000 and May 24, 2000, respectively, wherein
specific authorization was given for the incorporation and formation of the
Delaware Company for the purpose of changing the domicile of the Nevada Company
to that of the State of Delaware, and was duly adopted by the newly formed Board
of Directors of the Delaware Company.

      22. Counterparts. In order to facilitate the filing and recording of this
Agreement and Plan of Merger, it may be executed in any number of counterparts,
each of which shall be deemed to be an original.

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<PAGE>

      IN WITNESS THEREOF, The Nevada Company and the Delaware Company, pursuant
to the approval and authority duly given by resolutions adopted by their
respective Board of Directors and by approval of a majority of the shareholders,
have caused this Agreement and Plan of Merger to be executed by its respective
President and Secretary, on December 8, 2000.

The Nevada Company                        The Delaware Company

By: ________________________________    By: ____________________________________
    Frederick D. Pettit, President          Frederick D. Pettit, President
                                            and Secretary

By: ________________________________
    William Peichel, Secretary

      The undersigned certify under penalty of perjury that they have read the
foregoing Agreement and Plan of Merger and know the contents thereof, that the
statements therein are true and that this Agreement and Plan of Merger was
executed at Burlingame, California on December 8, 2000.

The Nevada Company                        The Delaware Company

By: ________________________________    By: ____________________________________
    Frederick D. Pettit, President          Frederick D. Pettit, President
                                            and Secretary

By: ________________________________
    William Peichel, Secretary

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<PAGE>

                          CERTIFICATE OF THE SECRETARY
                                       OF
                                ANTS SOFTWARE.COM
                               (a Nevada Company)

      I, William Peichel, the Secretary of ANTs software.com, a corporation
organized and existing under the laws of the State of Nevada (the "Nevada
Company"), hereby certify, as such Secretary, that:

            1. The transaction described in the Agreement and Plan of Merger
attached to this Certificate (the "Plan of Merger") was duly submitted to the
stockholders of the Nevada Company, at the 2000 Annual Meeting of Shareholders
held on September 12, 2000. For the purpose of considering and taking action
upon the proposed Plan of Merger, there were12,756,197 fully paid,
non-assessable shares of Common Stock of the Nevada Company issued and
outstanding entitled to vote, and the holders voted either in person or by
proxy. 7,186,705 shares voted FOR and 108,047 shares voted AGAINST the Plan of
Merger, and thereby the Plan of Merger was also duly adopted as the act of the
shareholders of the Nevada Company.

            2. The principal terms of the Plan of Merger were duly approved by
the Board of Directors of the Nevada Company.

      I declare under penalty of perjury that the foregoing is true and correct.

      Executed on December 8, 2000, at Burlingame, California

                                        ________________________________________
                                        William Peichel, Secretary of
                                        ANTs software.com

                                       8
<PAGE>

                          CERTIFICATE OF THE SECRETARY
                                       OF
                               ANTS SOFTWARE INC.
                              (a Delaware Company)

      I, Frederick D. Pettit, the Secretary of ANTs software inc., a corporation
organized and existing under the laws of the State of Delaware (the "Delaware
Company"), hereby certify, as such Secretary, that the principal terms of the
Plan of Merger were duly approved by the sole Director and the sole shareholder
of the Delaware Company.

      I declare under penalty of perjury that the foregoing is true and correct.

      Executed on December 8, 2000, at Burlingame, California

                                        ________________________________________
                                        Frederick D. Pettit, Secretary of
                                        ANTs software inc.

                                       9Exhibit 10.3

               SETTLEMENT AGREEMENT AND FULL RELEASE OF ALL CLAIMS

      This Settlement Agreement and Full Release of All Claims (the "Agreement")
is made effective as of the 11th day of January, 2001, by and between ANTs
software inc., a Delaware corporation (the "Company") and Frederick D. Pettit
("Pettit"). Its purpose is to set forth the parties' agreement regarding
Pettit's separation from employment as the President, Chief Executive Officer,
Chairman and a director and agent of the Company on December 12, 2000, the
benefits he is to receive in connection with that separation, and the mutual
waivers and releases the parties are giving each other.

      In consideration of the mutual promises and undertakings contained in this
Agreement, the parties agree as follows:

      1. Employment. Pettit understands and agrees that he resigned on December
12, 2000 and that his separation from his employment with the Company as the
President, Chief Executive Officer, Chairman and a director of the Company shall
not give rise to any claim on his part against the Company or any of the
employees, officers, directors or agents of the Company. Pettit further
understands and agrees that, effective immediately, he will no longer represent
or hold himself out to any person or entity as being an agent, representative,
employee or Board member of the Company for any purpose.

      2. Separation Benefits. In consideration for the release Pettit is
providing to the Company in this Agreement and subject to the waiting period and
other requirements set forth in paragraph 6, below, the Company agrees that
Pettit shall be given the following separation benefits:

            2.1 Loan. The Company shall forgive on August 4, 2001 and each 1
year anniversary thereof, until the entire amount of principal and interest have
been discharged, $45,000 of the principal amount and all accrued interest of
that certain loan to Mr. Pettit made in August 1999 in original principal face
amount of $225,000 and in aggregate principal amount currently due and payable
of $180,000, plus accrued and unpaid interest. In the event of a change in
control of the Company in which one party or concert parties obtain a majority
interest in the Company, any remaining balance of Pettit's loan shall be
immediately discharged. In the event the Company fails to meet any financial
obligation in a timely manner, such as, but not restricted to payment of
salaries, leasehold obligations, legal fees, accounting fees, utility bills, or
taxes, then any remaining balance of Pettit's loan shall be immediately
discharged.

            2.2 Cash Payment. The Company shall pay Pettit the sum of $300,000,
payable $75,000 per year for four (4) years on August 4 of each year, without
interest and without withholding.

            2.3 Continued Benefits. All Company contributions to health and
other insurance premiums will cease, but Pettit may, at his election, and
subject to his timely payment of all required premiums, elect continuation
health coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act
of 1985 (COBRA).

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<PAGE>

      3. General Mutual Release. In exchange for the consideration provided in
this Agreement, the adequacy of which is hereby acknowledged, each party hereto,
on behalf of himself or itself and his or its heirs, successors and assigns,
hereby fully releases and forever discharges the other party hereto, including
each of their officers, directors, agents, employees, attorneys, parents,
affiliates and/or subsidiaries, from any and all claims, actions and liabilities
of any kind or character whatsoever, arising in law or in equity, known or
unknown, suspected or unsuspected, that such party has ever had, now has or may
now have against the other party, including, without limitation, all claims
directly or indirectly related to or arising out of Pettit's employment by the
Company, the performance of his duties during that employment, and/or the
termination of or his resignation from that employment. This waiver and release
specifically includes, but is not limited to, all claims, if any, whether
arising in tort or in contract, related to Pettit's employment, including any
and all claims for wrongful discharge or wrongful termination; claims for
alleged violation of public policy or breach of implied covenant of good faith
and fair dealing; claims for breach of fiduciary duty; claims for negligent or
intentional infliction of emotional distress; claims arising in connection with
Pettit's compensation, benefits, warrants and/or stock options; claims for
breach of express or implied contract or for further monetary compensation by
way of additional salary or bonus allegedly due Pettit by reason of his
employment with the Company; and all other claims, based on common law or
federal or state statute, including claims for discrimination based on age
arising under state statute or the federal Age Discrimination in Employment Act,
the Older Workers' Benefits Protection Act, or any similar federal or state law
prohibiting age discrimination.

      Each party further understands and expressly agrees that this Agreement
specifically extends to all claims, whether those claims are presently known to
the party or not, or suspected by the party or not. By signing below, each party
expressly waives the benefits of Section 1542 of the California Civil Code,
which provides:

            "A general release does not extend to claims which the creditor does
      not know or suspect to exist in his favor at the time of executing the
      release which if known by him must have materially affected his settlement
      with the debtor."

      Pettit agrees that he has not assigned or transferred, in whole or in
part, any of the claims, actions or liabilities released by him herein.

      4. No Admission of Liability. The parties deny that either one of them has
any liability to the other. Neither this Agreement, nor the consideration the
parties are receiving under it, shall be deemed or construed as an admission of
liability by any party.

      5. Confidentiality. Each party agrees that the terms and conditions of
this Agreement are and shall remain strictly confidential, and that none of
them, nor anyone acting on his or its behalf, will disclose those terms and
conditions to any third party (i) except for Pettit's tax or legal advisors or
his spouse, or (ii) unless compelled by law to do so.

      6. Waiting Period. Pettit acknowledges that the Company has specifically
advised him to consult with an attorney of his own choosing in order to review
this Agreement and advise

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<PAGE>

him of his rights concerning it. Pettit further acknowledges that the Company
has further advised him that he has twenty-one (21) days from the date this
Agreement was originally presented to him in which to consider whether to sign
it, and that if he chooses to do so, he will be given an additional seven (7)
days from the date he signs it in which to revoke it. Unless revoked by Pettit,
this Agreement shall become effective the day immediately after the expiration
of the seven (7) day period set forth above (the "Effective Date"). Pettit
understands and agrees that this Agreement will not become effective before the
Effective Date. The offer contained in this Agreement will expire and may not be
accepted by Pettit following the expiration of twenty-one (21) days after this
Agreement was first presented to him.

      7. Continuing Obligations; Non-Disclosure; Non-Disparagement. Pettit
expressly agrees that, during two years, he will fully cooperate with the
Company at the Company's expense in the event of any litigation brought against
the Company or any of its officers, directors, agents or employees arising out
of any matters of which he had knowledge or in which he was personally involved
by reason of his employment with the Company. Pettit further acknowledges his
continuing obligation to the Company, to preserve the confidentiality of and not
to disclose to any third party or use in any way in any subsequent employment or
self-employment or for any other purpose, any of the Company's confidential or
proprietary information, including without limitation any of its trade secrets,
financial information, business plans or strategies, customer or client lists,
or any other information of a confidential or proprietary nature learned by him
during the course of his employment with the Company. Pettit agrees not to make
any disparaging remarks of any sort or otherwise communicate any disparaging
comments about the Company or any of its officers, directors, agents, employees,
parents, affiliates and/or subsidiaries to any third party, including without
limitation any of its employees, shareholders, vendors, competitors, clients or
any other person or entity. Pettit agrees not to interfere in any way with the
employment or business relationship that the Company, or any of their officers,
directors, agents, employees, parents, affiliates and/or subsidiaries has with
any past, current or future employees, shareholders, vendors, competitors,
clients or any other person or entity.

      8. Indemnification. Each party shall indemnify, defend and hold harmless
the other and his or its assignees against, and in respect of, any and all
claims, demands, losses, costs, expenses, obligations, liabilities, damages,
recoveries and deficiencies, including interest, penalties and reasonable
attorneys' fees (collectively "Losses") that the other or his or its assignees
may incur which arise, result from or relate to any breach or failure by such
party to perform any of such party's covenants contained in this Agreement.

      9. Voluntary Agreement. Pettit expressly acknowledges and warrants that he
has read and fully understands this Agreement; that he has had the opportunity
to consult with legal counsel of his own choosing in order to have the terms and
conditions of this Agreement fully explained to him; that he is not executing
this Agreement in reliance on any promises, representations or inducements other
than those set forth herein; that he understands he is giving up legal rights by
signing this Agreement; and that he is executing it voluntarily, free of any
duress or coercion, after due deliberation, with a full understanding of what it
means to do so.

      10. Miscellaneous.

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<PAGE>

            10.1 Binding Effect. This Agreement shall be binding upon and inure
to the benefit of the respective heirs, executors, representatives, successors
and assigns of the parties hereto.

            10.2 Further Assurances. The parties shall execute and deliver, such
instruments and take such other actions as may be reasonably be necessary in
order to carry out the intent of this Agreement.

            10.3 Counterparts. This Agreement may be executed in any number of
separate counterparts, each of which shall be deemed to be an original and all
of which together shall be deemed to be one and the same instrument.

            10.4 Headings. The subject headings of the sections and subsections
of this Agreement are included for purposes of convenience only and shall not
affect the construction or interpretation of any of its provisions.

            10.5 Waivers. Any party to this Agreement may waive any right it may
have hereunder or any breach or default hereunder by any other party hereto;
provided that no such waiver will be effective against the waiving party unless
it is in writing and specifically refers to this Agreement. No waiver will be
deemed to be a waiver of any subsequent or other right, breach or default of the
same or similar nature.

            10.6 Entire Agreement. This Agreement, including the documents and
things anticipated to be delivered hereby embodies the entire agreement and
understanding of the parties hereto with respect to the subject matter hereof,
and supersedes all prior or contemporaneous agreements or understandings
(whether written or oral) among the parties, in respect to the subject matter
contained herein. This Agreement may not be modified, amended or terminated
except by written agreement signed by both parties specifically referring to
this Agreement.

            10.7 Governing Law. This Agreement is deemed to have been made in
the State of California and shall be governed by, and construed in accordance
with, the laws of the State of California for contracts made and to be performed
within California.

            10.8 Assignment. Pettit may not assign this Agreement, or assign his
rights or delegate his duties hereunder, without the prior written consent of
the Company.

            10.9 Severability. Any provision of this Agreement which is illegal,
invalid or unenforceable shall be ineffective to the extent of such illegality,
invalidity or unenforceability, without affecting in any way the remaining
provisions hereof.

            10.10 No Rules of Construction. No rules of construction are
intended by the parties hereto or shall be invoked in the interpretation hereof
and, for all purposes, the parties hereto shall all be deemed to be joint
authors hereof.

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<PAGE>

            10.11 Notices. All notices, demands and other communications
provided for hereunder shall, unless otherwise stated herein, be in writing and
shall be personally delivered.

            10.12 Remedies. The remedies herein provided are cumulative and not
exclusive of any remedies provided by law. The party against whom enforcement is
sought shall pay on demand all losses, costs and expenses, if any, of the party
seeking enforcement (including attorney's and other professional's fees actually
incurred) in connection with the enforcement of this Agreement.

            IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed by their respective officers or representatives thereunto duly
authorized, this Agreement to become effective as of the date first above
written.

                                            ANTS SOFTWARE INC.
                                            a Delaware Corporation

                                        By: ____________________________________
                                            Joan Elizabeth Cronin, Executive
                                            Vice President and Managing Director
                                            of Human Resources

                                   Address: 801 Mahler Road, Suite G
                                            Burlingame, CA 94010

                                            ____________________________________
                                            Frederick D. Pettit

                                   Address: 330 Eucalyptus Avenue
                                            Hillsborough, CA 94010

                                       5

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