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                                                                   EXHIBIT 10.01
                             DRIVEWAY CORPORATION

                            1997 STOCK OPTION PLAN

                (as amended and restated on September 13, 1999)

      (as further amended to reflect the Company's 11/2/1999 name change)

                              SECTION 1.  PURPOSE

     The purpose of the Driveway Corporation 1997 Stock Option Plan (the "Plan")
is to enhance the long-term shareholder value of Driveway Corporation, a
Delaware corporation (the "Company"), by offering opportunities to employees,
directors, officers, consultants, agents, advisors and independent contractors
of the Company and its Subsidiaries (as defined in Section 2) to participate in
the Company's growth and success, and to encourage them to remain in the service
of the Company and its Subsidiaries and to acquire and maintain stock ownership
in the Company.

                            SECTION 2.  DEFINITIONS

     For purposes of the Plan, the following terms shall be defined as set forth
below:

2.1  Board

     "Board" means the Board of Directors of the Company.

2.2  Cause

     "Cause" means dishonesty, fraud, misconduct, unauthorized use or disclosure
of confidential information or trade secrets, or conviction or confession of a
crime punishable by law (except minor violations), in each case as determined by
the Plan Administrator, and its determination shall be conclusive and binding.

2.3  Code

     "Code" means the Internal Revenue Code of 1986, as amended from time to
time.

2.4  Common Stock

     "Common Stock" means the common stock, $0.001 par value, of the Company.

2.5  Corporate Transaction

     "Corporate Transaction" means any of the following events:

          (a)  Consummation of any merger or consolidation of the Company in
     which the Company is not the continuing or surviving corporation, or
     pursuant to which shares of the Common Stock are converted into cash,
     securities or other property, if following

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     such merger or consolidation the holders of the Company's outstanding
     voting securities immediately prior to such merger or consolidation own
     less than 66-2/3% of the outstanding voting securities of the surviving
     corporation;

          (b)  Consummation of any sale, lease, exchange or other transfer in
     one transaction or a series of related transactions of all or substantially
     all of the Company's assets other than a transfer of the Company's assets
     to a majority-owned subsidiary corporation (as the term "subsidiary
     corporation" is defined in Section 8.3) of the Company; or

          (c)  Approval by the holders of the Common Stock of any plan or
     proposal for the liquidation or dissolution of the Company.

     Ownership of voting securities shall take into account and shall include
ownership as determined by applying Rule 13d-3(d)(1)(i) (as in effect on the
date of adoption of the Plan) under the Exchange Act.

2.6  Disability

     "Disability" means "disability" as that term is defined for purposes of
Section 22(e)(3) of the Code.

2.7  Early Retirement

     "Early Retirement" means early retirement as that term is defined by the
Plan Administrator from time to time for purposes of the Plan.

2.8  Exchange Act

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

2.9  Fair Market Value

     The "Fair Market Value" shall be as established in good faith by the Plan
Administrator or (a) if the Common Stock is listed on the Nasdaq National
Market, the average of the high and low per share sales prices for the Common
Stock as reported by the Nasdaq National Market for a single trading day or (b)
if the Common Stock is listed on the New York Stock Exchange or the American
Stock Exchange, the average of the high and low per share sales prices for the
Common Stock as such price is officially quoted in the composite tape of
transactions on such exchange for a single trading day.  If there is no such
reported price for the Common Stock for the date in question, then such price on
the last preceding date for which such price exists shall be determinative of
the Fair Market Value.

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2.10  Good Reason

      "Good Reason" means the occurrence of any of the following events or
conditions and the failure of the Successor Corporation to cure such event or
condition within 30 days after receipt of written notice by the Optionee:

          (a)  a change in the Optionee's status, title, position or
responsibilities (including reporting responsibilities) that, in the Optionee's
reasonable judgment, represents a substantial reduction in the status, title,
position or responsibilities as in effect immediately prior thereto; the
assignment to the Optionee of any duties or responsibilities that, in the
Optionee's reasonable judgment, are materially inconsistent with such status,
title, position or responsibilities; or any removal of the Optionee from or
failure to reappoint or reelect the Optionee to any of such positions, except in
connection with the termination of the Optionee's employment for Cause, for
Disability or as a result of his or her death, or by the Optionee other than for
Good Reason;

          (b)  a reduction in the Optionee's annual base salary;

          (c)  the Successor Corporation's requiring the Optionee (without the
Optionee's consent) to be based at any place outside a 35-mile radius of his or
her place of employment prior to a Corporate Transaction, except for reasonably
required travel on the Successor Corporation's business that is not materially
greater than such travel requirements prior to the Corporate Transaction;

          (d)  the Successor Corporation's failure to (i) continue in effect any
material compensation or benefit plan (or the substantial equivalent thereof) in
which the Optionee was participating at the time of a Corporate Transaction,
including, but not limited to, the Plan, or (ii) provide the Optionee with
compensation and benefits substantially equivalent (in terms of benefit levels
and/or reward opportunities) to those provided for under each material employee
benefit plan, program and practice as in effect immediately prior to the
Corporate Transaction;

          (e)  any material breach by the Successor Corporation of its
obligations to the Optionee under the Plan or any substantially equivalent plan
of the Successor Corporation; or

          (f)  any purported termination of the Optionee's employment or
services for Cause by the Successor Corporation that does not comply with the
terms of the Plan or any substantially equivalent plan of the Successor
Corporation.

2.11  Grant Date

      "Grant Date" means the date the Plan Administrator adopted the granting
resolution or a later date designated in a resolution of the Plan Administrator
as the date an Option is to be granted.

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2.12  Incentive Stock Option

      "Incentive Stock Option" means an Option to purchase Common Stock granted
under Section 7 with the intention that it qualify as an "incentive stock
option" as that term is defined in Section 422 of the Code.

2.13  Nonqualified Stock Option

      "Nonqualified Stock Option" means an Option to purchase Common Stock
granted under Section 7 other than an Incentive Stock Option.

2.14  Option

      "Option" means the right to purchase Common Stock granted under Section 7.

2.15  Optionee

      "Optionee" means (i) the person to whom an Option is granted; (ii) for an
Optionee who has died, the personal representative of the Optionee's estate, the
person(s) to whom the Optionee's rights under the Option have passed by will or
by the applicable laws of descent and distribution, or the beneficiary
designated in accordance with Section 9; or (iii) person(s) to whom an Option
has been transferred in accordance with Section 9.

2.16  Plan Administrator

      "Plan Administrator" means the Board or any committee of the Board
designated to administer the Plan under Section 3.1.

2.17  Retirement

      "Retirement" means retirement as of the individual's normal retirement
date as that term is defined by the Plan Administrator from time to time for
purposes of the Plan.

2.18  Securities Act

      "Securities Act" means the Securities Act of 1933, as amended.

2.19  Subsidiary

      "Subsidiary," except as provided in Section 8.3 in connection with
Incentive Stock Options, means any entity that is directly or indirectly
controlled by the Company or in which the Company has a significant ownership
interest, as determined by the Plan Administrator, and any entity that may
become a direct or indirect parent of the Company.

2.20  Successor Corporation

      "Successor Corporation" has the meaning set forth under Section 10.2.

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                          SECTION 3.  ADMINISTRATION

3.1  Plan Administrator

     The Plan shall be administered by the Board or a committee or committees
(which term includes subcommittees) appointed by, and consisting of two or more
members of, the Board.  If and so long as the Common Stock is registered under
Section 12(b) or 12(g) of the Exchange Act, the Board shall consider in
selecting the Plan Administrator and the membership of any committee acting as
Plan Administrator, with respect to any persons subject or likely to become
subject to Section 16 of the Exchange Act, the provisions regarding (a) "outside
directors" as contemplated by Section 162(m) of the Code and (b) "nonemployee
directors" as contemplated by Rule 16b-3 under the Exchange Act.  The Board may
delegate the responsibility for administering the Plan with respect to
designated classes of eligible persons to different committees consisting of two
or more members of the Board, subject to such limitations as the Board deems
appropriate.  Committee members shall serve for such term as the Board may
determine, subject to removal by the Board at any time.

3.2  Administration and Interpretation by the Plan Administrator

     Except for the terms and conditions explicitly set forth in the Plan, the
Plan Administrator shall have exclusive authority, in its discretion, to
determine all matters relating to Options under the Plan, including the
selection of individuals to be granted Options, the type of Options, the number
of shares of Common Stock subject to an Option, all terms, conditions,
restrictions and limitations, if any, of an Option and the terms of any
instrument that evidences the Option.  The Plan Administrator shall also have
exclusive authority to interpret the Plan and may from time to time adopt, and
change, rules and regulations of general application for the Plan's
administration.  The Plan Administrator's interpretation of the Plan and its
rules and regulations, and all actions taken and determinations made by the Plan
Administrator pursuant to the Plan, shall be conclusive and binding on all
parties involved or affected.  The Plan Administrator may delegate
administrative duties to such of the Company's officers as it so determines.

                     SECTION 4.  STOCK SUBJECT TO THE PLAN

4.1  Authorized Number of Shares

     Subject to adjustment from time to time as provided in Section 10.1, a
maximum of 4,177,484 shares of Common Stock shall be available for issuance
under the Plan.  Shares issued under the Plan shall be drawn from authorized and
unissued shares or shares now held or subsequently acquired by the Company.

4.2  Reuse of Shares

     Any shares of Common Stock that have been made subject to an Option that
cease to be subject to the Option (other than by reason of exercise of the
Option to the extent it is exercised for shares) shall again be available for
issuance in connection with future grants of Options under the Plan.

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                            SECTION 5.  ELIGIBILITY

     Options may be granted under the Plan to those officers, directors and key
employees of the Company and its Subsidiaries as the Plan Administrator from
time to time selects.  Options may also be made to consultants, agents, advisors
and independent contractors who provide services to the Company and its
Subsidiaries.

                              SECTION 6.  AWARDS

6.1  Form and Grant of Options

     The Plan Administrator shall have the authority, in its sole discretion, to
determine the type or types of awards to be made under the Plan.  Such awards
may consist of Incentive Stock Options and/or Nonqualified Stock Options.
Options may be granted singly or in combination.

6.2  Acquired Company Option Awards

     Notwithstanding anything in the Plan to the contrary, the Plan
Administrator may grant Options under the Plan in substitution for awards issued
under other plans, or assume under the Plan awards issued under other plans, if
the other plans are or were plans of other acquired entities ("Acquired
Entities") (or the parent of the Acquired Entity) and the new Option is
substituted, or the old award is assumed, by reason of a merger, consolidation,
acquisition of property or of stock, reorganization or liquidation (the
"Acquisition Transaction").  In the event that a written agreement pursuant to
which the Acquisition Transaction is completed is approved by the Board and said
agreement sets forth the terms and conditions of the substitution for or
assumption of outstanding awards of the Acquired Entity, said terms and
conditions shall be deemed to be the action of the Plan Administrator without
any further action by the Plan Administrator, except as may be required for
compliance with Rule 16b-3 under the Exchange Act, and the persons holding such
awards shall be deemed to be Optionees.

                  SECTION 7.  TERMS AND CONDITIONS OF OPTIONS

7.1  Grant of Options

     The Plan Administrator is authorized under the Plan, in its sole
discretion, to issue Options as Incentive Stock Options or as Nonqualified Stock
Options, which shall be appropriately designated.

7.2  Option Exercise Price

     The exercise price for shares purchased under an Option shall be as
determined by the Plan Administrator, but shall not be less than 100% of the
Fair Market Value of the Common Stock on the Grant Date with respect to
Incentive Stock Options.

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7.3  Term of Options

     The term of each Option shall be as established by the Plan Administrator
or, if not so established, shall be 10 years from the Grant Date.

7.4  Exercise of Options

     The Plan Administrator shall establish and set forth in each instrument
that evidences an Option the time at which or the installments in which the
Option shall become exercisable, which provisions may be waived or modified by
the Plan Administrator at any time.  If not so established in the instrument
evidencing the Option, the Option will become exercisable according to the
following schedule, which may be waived or modified by the Plan Administrator at
any time:

 Period of Holder's Continuous Employment or
 Service With the Company or Its Subsidiaries           Percent of Total Option
        From the Option Grant Date                        That Is Exercisable
        --------------------------                        -------------------
              After 1 year                                        25%

Each three-month period of continuous service
         completed thereafter                             An additional 6.25%

            After 4 years                                        100%

     To the extent that the right to purchase shares has accrued thereunder, an
Option may be exercised from time to time by written notice to the Company, in
accordance with procedures established by the Plan Administrator, setting forth
the number of shares with respect to which the Option is being exercised and
accompanied by payment in full as described in Section 7.5.  The Plan
Administrator may determine at any time that an Option may not be exercised as
to less than 100 shares at any one time (or the lesser number of remaining
shares covered by the Option).

7.5  Payment of Exercise Price

     The exercise price for shares purchased under an Option shall be paid in
full to the Company by delivery of consideration equal to the product of the
Option exercise price and the number of shares purchased.  Such consideration
must be paid in cash or by check or, unless the Plan Administrator in its sole
discretion determines otherwise, either at the time the Option is granted or at
any time before it is exercised, a combination of cash and/or check and one or
both of the following alternative forms:  (a) tendering (either actually or, if
and so long as the Common Stock is registered under Section 12(b) or 12(g) of
the Exchange Act, by attestation) Common Stock already owned by the Optionee for
at least six months (or any shorter period necessary to avoid a charge to the
Company's earnings for financial reporting purposes) having a Fair Market Value
on the day prior to the exercise date equal to the aggregate Option exercise
price or (b) if and so long as the Common Stock is registered under Section
12(b) or 12(g) of the Exchange Act, delivery of a properly executed exercise
notice, together with irrevocable instructions, to (i) a brokerage firm
designated by the Company to deliver promptly to the

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Company the aggregate amount of sale or loan proceeds to pay the Option exercise
price and any withholding tax obligations that may arise in connection with the
exercise and (ii) the Company to deliver the certificates for such purchased
shares directly to such brokerage firm, all in accordance with the regulations
of the Federal Reserve Board. In addition, the exercise price for shares
purchased under an Option may be paid, either singly or in combination with one
or more of the alternative forms of payment authorized by this Section 7.5, by:
(y) a promissory note delivered pursuant to Section 12 or (z) such other
consideration as the Plan Administrator may permit.

7.6  Post-Termination Exercises

     The Plan Administrator shall establish and set forth in each instrument
that evidences an Option whether the Option will continue to be exercisable, and
the terms and conditions of such exercise, if an Optionee ceases to be employed
by, or to provide services to, the Company or its Subsidiaries, which provisions
may be waived or modified by the Plan Administrator at any time.  If not so
established in the instrument evidencing the Option, the Option will be
exercisable according to the following terms and conditions, which may be waived
or modified by the Plan Administrator at any time.

     In case of termination of the Optionee's employment or services other than
by reason of death or Cause, the Option shall be exercisable, to the extent of
the number of shares purchasable by the Optionee at the date of such
termination, only (a) within one year if the termination of the Optionee's
employment or services is coincident with Retirement, Early Retirement at the
Company's request or Disability or (b) within three months after the date the
Optionee ceases to be an employee, director, officer, consultant, agent, advisor
or independent contractor of the Company or a Subsidiary if termination of the
Optionee's employment or services is for any reason other than Retirement, Early
Retirement at the Company's request or Disability, but in no event later than
the remaining term of the Option.  Any Option exercisable at the time of the
Optionee's death may be exercised, to the extent of the number of shares
purchasable by the Optionee at the date of the Optionee's death, by the personal
representative of the Optionee's estate, the person(s) to whom the Optionee's
rights under the Option have passed by will or the applicable laws of descent
and distribution or the beneficiary designated pursuant to Section 9 at any time
or from time to time within one year after the date of death, but in no event
later than the remaining term of the Option.  Any portion of an Option that is
not exercisable on the date of termination of the Optionee's employment or
services shall terminate on such date, unless the Plan Administrator determines
otherwise.  In case of termination of the Optionee's employment or services for
Cause, the Option shall automatically terminate upon first notification to the
Optionee of such termination, unless the Plan Administrator determines
otherwise.  If an Optionee's employment or services with the Company are
suspended pending an investigation of whether the Optionee shall be terminated
for Cause, all the Optionee's rights under any Option likewise shall be
suspended during the period of investigation.

     A transfer of employment or services between or among the Company and its
Subsidiaries shall not be considered a termination of employment or services.
The effect of a Company-approved leave of absence on the terms and conditions of
an Option shall be determined by the Plan Administrator, in its sole discretion.

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                SECTION 8.  INCENTIVE STOCK OPTION LIMITATIONS

     To the extent required by Section 422 of the Code, Incentive Stock Options
shall be subject to the following additional terms and conditions:

8.1  Dollar Limitation

     To the extent the aggregate Fair Market Value (determined as of the Grant
Date) of Common Stock with respect to which Incentive Stock Options are
exercisable for the first time during any calendar year (under the Plan and all
other stock option plans of the Company) exceeds $100,000, such portion in
excess of $100,000 shall be treated as a Nonqualified Stock Option.  In the
event the Optionee holds two or more such Options that become exercisable for
the first time in the same calendar year, such limitation shall be applied on
the basis of the order in which such Options are granted.

8.2  10% Shareholders

     If an individual owns more than 10% of the total voting power of all
classes of the Company's stock, then the exercise price per share of an
Incentive Stock Option shall not be less than 110% of the Fair Market Value of
the Common Stock on the Grant Date and the Option term shall not exceed five
years.  The determination of 10% ownership shall be made in accordance with
Section 422 of the Code.

8.3  Eligible Employees

     Individuals who are not employees of the Company or one of its parent
corporations or subsidiary corporations may not be granted Incentive Stock
Options.  For purposes of this Section 8.3, "parent corporation" and "subsidiary
corporation" shall have the meanings attributed to those terms for purposes of
Section 422 of the Code.

8.4  Term

     The term of an Incentive Stock Option shall not exceed 10 years.

8.5  Exercisability

     To qualify for Incentive Stock Option tax treatment, an Option designated
as an Incentive Stock Option must be exercised within three months after
termination of employment for reasons other than death, except that, in the case
of termination of employment due to total disability, such Option must be
exercised within one year after such termination.  Employment shall not be
deemed to continue beyond the first 90 days of a leave of absence unless the
Optionee's reemployment rights are guaranteed by statute or contract.  For
purposes of this Section 8.5, "total disability" shall mean a mental or physical
impairment of the Optionee that is expected to result in death or that has
lasted or is expected to last for a continuous period of 12 months or more and
that causes the Optionee to be unable, in the opinion of the Company and two
independent physicians, to perform his or her duties for the Company and to be
engaged in any substantial gainful activity.  Total disability shall be deemed
to have occurred on the first day

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after the Company and the two independent physicians have furnished their
opinion of total disability to the Plan Administrator.

8.6   Taxation of Incentive Stock Options

      In order to obtain certain tax benefits afforded to Incentive Stock
Options under Section 422 of the Code, the Optionee must hold the shares issued
upon the exercise of an Incentive Stock Option for two years after the Grant
Date of the Incentive Stock Option and one year from the date of exercise. An
Optionee may be subject to the alternative minimum tax at the time of exercise
of an Incentive Stock Option. The Plan Administrator may require an Optionee to
give the Company prompt notice of any disposition of shares acquired by the
exercise of an Incentive Stock Option prior to the expiration of such holding
periods.

8.7   Promissory Notes

      The amount of any promissory note delivered pursuant to Section 12 in
connection with an Incentive Stock Option shall bear interest at a rate
specified by the Plan Administrator but in no case less than the rate required
to avoid imputation of interest (taking into account any exceptions to the
imputed interest rules) for federal income tax purposes.

                           SECTION 9.   ASSIGNABILITY

      No Option granted under the Plan may be assigned, pledged or transferred
by the Optionee other than by will or by the applicable laws of descent and
distribution, and, during the Optionee's lifetime, such Option may be exercised
only by the Optionee or a permitted assignee or transferee of the Optionee (as
provided below). Notwithstanding the foregoing, and to the extent permitted by
Section 422 of the Code, the Plan Administrator, in its sole discretion, may
permit such assignment, transfer and exercisability and may permit an Optionee
to designate a beneficiary who may exercise the Option after the Optionee's
death; provided, however, that any Option so assigned or transferred shall be
subject to all the same terms and conditions contained in the instrument
evidencing the Option.

                           SECTION 10.  ADJUSTMENTS

10.1  Adjustment of Shares

      In the event that, at any time or from time to time, a stock dividend,
stock split, spin-off, combination or exchange of shares, recapitalization,
merger, consolidation, distribution to shareholders other than a normal cash
dividend, or other change in the Company's corporate or capital structure
results in (a) the outstanding shares, or any securities exchanged therefor or
received in their place, being exchanged for a different number or class of
securities of the Company or of any other corporation or (b) new, different or
additional securities of the Company or of any other corporation being received
by the holders of shares of Common Stock of the Company, then the Plan
Administrator shall make proportional adjustments in (i) the maximum number and
kind of securities subject to the Plan as set forth in Section 4.1 and (ii) the
number and kind of securities that are subject to any outstanding Option and the
per share price of such securities, without any change in the aggregate price to
be paid therefor.  The

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determination by the Plan Administrator as to the terms of any of the foregoing
adjustments shall be conclusive and binding.

10.2  Corporate Transaction

      Except as otherwise provided in the instrument that evidences the Option,
in the event of any Corporate Transaction, outstanding Options shall terminate
and cease to remain outstanding immediately following the consummation of the
Corporate Transaction, except to the extent assumed by the surviving
corporation, the successor corporation or its parent corporation, as applicable
(the "Successor Corporation") pursuant to the terms of the agreement of merger
or consolidation entered into between the Company and the Successor Corporation.
In the event that an Optionee's employment or services should subsequently
terminate within one year following a Corporate Transaction in which Options are
assumed or replaced and do not otherwise accelerate at that time, the Optionee
shall be entitled to exercise, in addition to any vested portion of the Option,
that portion of the unvested Option that would otherwise be vested and
exercisable if the Option vested on a pro rata basis after each full month of
employment or service, unless such employment or services are terminated by the
Successor Corporation for Cause or by the Optionee voluntarily without Good
Reason.

10.3  Further Adjustment of Options

      Subject to Section 10.2, the Plan Administrator shall have the discretion,
exercisable at any time before a sale, merger, consolidation, reorganization,
liquidation or change in control of the Company, as defined by the Plan
Administrator, to take such further action as it determines to be necessary or
advisable, and fair and equitable to Optionees, with respect to Options.  Such
authorized action may include (but shall not be limited to) establishing,
amending or waiving the type, terms, conditions or duration of, or restrictions
on, Options so as to provide for earlier, later, extended or additional time for
exercise and other modifications, and the Plan Administrator may take such
actions with respect to all Optionees, to certain categories of Optionees or
only to individual Optionees.  The Plan Administrator may take such action
before or after granting Options to which the action relates and before or after
any public announcement with respect to such sale, merger, consolidation,
reorganization, liquidation or change in control that is the reason for such
action.

10.4  Limitations

      The grant of Options will in no way affect the Company's right to adjust,
reclassify, reorganize or otherwise change its capital or business structure or
to merge, consolidate, dissolve, liquidate or sell or transfer all or any part
of its business or assets.

10.5  Fractional Shares

      In the event of any adjustment in the number of shares covered by an
Option, each such Option shall cover only the number of full shares resulting
from such adjustment.

                           SECTION 11.  WITHHOLDING

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      The Company may require the Optionee to pay to the Company the amount of
any withholding taxes that the Company is required to withhold with respect to
the grant or exercise of any Option.  Subject to the Plan and applicable law,
the Plan Administrator may, in its sole discretion, permit the Optionee to
satisfy withholding obligations, in whole or in part, by paying cash, by
electing to have the Company withhold shares of Common Stock or by transferring
shares of Common Stock to the Company, in such amounts as are equivalent to the
Fair Market Value of the withholding obligation.  The Company shall have the
right to withhold from any shares of Common Stock issuable pursuant to an Option
or from any cash amounts otherwise due or to become due from the Company to the
Optionee an amount equal to such taxes.  The Company may also deduct from any
Option any other amounts due from the Optionee to the Company or a Subsidiary.

         SECTION 12.  LOANS, INSTALLMENT PAYMENTS AND LOAN GUARANTEES

      To assist an Optionee (including an Optionee who is an officer or a
director of the Company) in acquiring shares of Common Stock pursuant to an
Option granted under the Plan, the Plan Administrator, in its sole discretion,
may authorize, either at the Grant Date or at any time before the acquisition of
Common Stock pursuant to the Option, (a) the extension of a loan to the Optionee
by the Company, (b) the payment by the Optionee of the purchase price, if any,
of the Common Stock in installments, or (c) the guarantee by the Company of a
loan obtained by the Optionee from a third party.  The terms of any loans,
installment payments or loan guarantees, including the interest rate and terms
of repayment, will be subject to the Plan Administrator's discretion.  Loans,
installment payments and loan guarantees may be granted with or without
security.  The maximum credit available is the purchase price, if any, of the
Common Stock acquired, plus the maximum federal and state income and employment
tax liability that may be incurred in connection with the acquisition.

           SECTION 13.  REPURCHASE AND FIRST REFUSAL RIGHTS; ESCROW

13.1  Repurchase Rights

      The Plan Administrator shall have the discretion to authorize the issuance
of unvested shares of Common Stock pursuant to the exercise of an Option.
Should the Optionee cease to be employed by or provide services to the Company,
then all shares of Common Stock issued upon exercise of an Option that are
unvested at the time of cessation of employment or the service relationship
shall be subject to repurchase at the exercise price paid for such shares.  The
terms and conditions upon which such repurchase right shall be exercisable
(including the period and procedure for exercise) shall be established by the
Plan Administrator and set forth in the agreement evidencing such right.

      All the Company's outstanding repurchase rights under this Section 13.1
are assignable by the Company at any time. Such rights shall automatically
terminate, and all shares subject to such terminated rights shall immediately
vest in full, upon the occurrence of a Corporate Transaction, except to the
extent that (a) any such repurchase right is expressly assigned to the

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Successor Corporation in connection with the Corporate Transaction or (b) such
termination is precluded by other limitations imposed by the Plan Administrator
at the time the repurchase right is issued.

      The Plan Administrator shall have the discretionary authority, exercisable
either before or after the Optionee's cessation of employment or service, to
cancel the Company's outstanding repurchase rights with respect to one or more
shares purchased or purchasable by the Optionee under an Option and thereby
accelerate the vesting of such shares in whole or in part at any time.

13.2  First Refusal Rights

      Until the date on which the initial registration of the Common Stock under
Section 12(b) or 12(g) of the Exchange Act first becomes effective, the Company
shall have the right of first refusal with respect to any proposed sale or other
disposition by the Optionee of any shares of Common Stock issued pursuant to an
Option granted under the Plan.  Such right of first refusal shall be exercisable
in accordance with the terms and conditions established by the Plan
Administrator and set forth in the agreement evidencing such right.

13.3  Escrow

      To ensure that shares of Common Stock acquired upon exercise of an Option
that are subject to any repurchase or forfeiture right and/or security for any
promissory note will be available for repurchase, the Plan Administrator may
require the Optionee to deposit the certificate or certificates evidencing such
shares with an agent designated by the Plan Administrator under the terms and
conditions of escrow and security agreements approved by the Plan Administrator.
If the Plan Administrator does not require such deposit as a condition of
exercise of an Option, the Plan Administrator reserves the right at any time to
require the Optionee to so deposit the certificate or certificates in escrow.
The Company shall bear the expenses of the escrow.

      As soon as practicable after the expiration of any repurchase rights or
forfeiture rights, and after full repayment of any promissory note secured by
the shares in escrow, the agent shall deliver to the Optionee the shares no
longer subject to such restrictions and no longer security for any promissory
note.

      In the event of any stock dividend, stock split or consolidation of shares
or any like capital adjustment of any of the outstanding securities of the
Company, any and all new, substituted or additional securities or other property
to which the Optionee is entitled by reason of ownership of shares acquired upon
exercise of an Option shall be subject to any repurchase rights and/or security
for any promissory note with the same force and effect as the shares subject to
such repurchase rights and/or security interest immediately before such event.

                         SECTION 14.  MARKET STANDOFF

     In connection with any underwritten public offering by the Company of its
equity securities pursuant to an effective registration statement filed under
the Securities Act, including the Company's initial public offering, a person
shall not sell, make any short sale of, loan,

                                      -13-
<PAGE>

hypothecate, pledge, grant any option for the purchase of, or otherwise dispose
of or transfer for value or otherwise agree to engage in any of the foregoing
transactions with respect to any shares issued pursuant to an Option granted
under the Plan without the prior written consent of the Company or its
underwriters. Such limitations shall be in effect for such period of time as may
be requested by the Company or such underwriters and agreed to by the Company's
officers and directors with respect to their shares; provided, however, that in
no event shall such period exceed 180 days. The limitations of this Section 14
shall in all events terminate two years after the effective date of the
Company's initial public offering. Holders of shares issued pursuant to an
Option granted under the Plan shall be subject to the market standoff provisions
of this Section 14 only if the officers and directors of the Company are also
subject to similar arrangements.

      In the event of any stock split, stock dividend, recapitalization,
combination of shares, exchange of shares or other change affecting the
Company's outstanding Common Stock effected as a class without the Company's
receipt of consideration, any new, substituted or additional securities
distributed with respect to the purchased shares shall be immediately subject to
the provisions of this Section 14, to the same extent the purchased shares are
at such time covered by such provisions.

      In order to enforce the limitations of this Section 14, the Company may
impose stop-transfer instructions with respect to the purchased shares until the
end of the applicable standoff period.

                SECTION 15.  AMENDMENT AND TERMINATION OF PLAN

15.1  Amendment of Plan

      The Plan may be amended only by the Board in such respects as it shall
deem advisable; however, to the extent required for compliance with Section 422
of the Code or any applicable law or regulation, shareholder approval will be
required for any amendment that will (a) increase the total number of shares as
to which Options may be granted under the Plan, (b) modify the class of persons
eligible to receive Options, or (c) otherwise require shareholder approval under
any applicable law or regulation.

15.2  Termination of Plan

      The Board may suspend or terminate the Plan at any time.  The Plan will
have no fixed expiration date; provided, however, that no Incentive Stock
Options may be granted more than 10 years after the earlier of the Plan's
adoption by the Board and approval by the shareholders.

15.3  Consent of Optionee

      The amendment or termination of the Plan shall not, without the consent of
the Optionee, impair or diminish any rights or obligations under any Option
theretofore granted under the Plan.

                                      -14-
<PAGE>

     Any change or adjustment to an outstanding Incentive Stock Option shall
not, without the consent of the Optionee, be made in a manner so as to
constitute a "modification" that would cause such Incentive Stock Option to fail
to continue to qualify as an Incentive Stock Option.

                             SECTION 16.  GENERAL

16.1  Option Agreements

      Options granted under the Plan shall be evidenced by a written agreement
that shall contain such terms, conditions, limitations and restrictions as the
Plan Administrator shall deem advisable and that are not inconsistent with the
Plan.

16.2  Continued Employment or Services; Rights in Options

      None of the Plan, participation in the Plan or any action of the Plan
Administrator taken under the Plan shall be construed as giving any person any
right to be retained in the employ of the Company or limit the Company's right
to terminate the employment or services of any person.

16.3  Registration

      The Company shall be under no obligation to any Optionee to register for
offering or resale or to qualify for exemption under the Securities Act, or to
register or qualify under state securities laws, any shares of Common Stock,
security or interest in a security paid or issued under, or created by, the
Plan, or to continue in effect any such registrations or qualifications if made.
The Company may issue certificates for shares with such legends and subject to
such restrictions on transfer and stop-transfer instructions as counsel for the
Company deems necessary or desirable for compliance by the Company with federal
and state securities laws.

      Inability of the Company to obtain, from any regulatory body having
jurisdiction, the authority deemed by the Company's counsel to be necessary for
the lawful issuance and sale of any shares hereunder or the unavailability of an
exemption from registration for the issuance and sale of any shares hereunder
shall relieve the Company of any liability in respect of the nonissuance or sale
of such shares as to which such requisite authority shall not have been
obtained.

      As a condition to the exercise of an Option, the Company may require the
Optionee to represent and warrant at the time of any such exercise or receipt
that such shares are being purchased or received only for the Optionee's own
account and without any present intention to sell or distribute such shares if,
in the opinion of counsel for the Company, such a representation is required by
any relevant provision of the aforementioned laws.  At the option of the
Company, a stop-transfer order against any such shares may be placed on the
official stock books and records of the Company, and a legend indicating that
such shares may not be pledged, sold or otherwise transferred, unless an opinion
of counsel is provided (concurred in by counsel for the Company) stating that
such transfer is not in violation of any applicable law or regulation, may be
stamped on stock certificates to ensure exemption from registration.  The Plan
Administrator

                                      -15-
<PAGE>

may also require such other action or agreement by the Optionee as may from time
to time be necessary to comply with the federal and state securities laws.

16.4  No Rights as a Shareholder

      No Option shall entitle the Optionee to any dividend, voting or other
right of a shareholder unless and until the date of issuance under the Plan of
the shares that are the subject of such Option, free of all applicable
restrictions.

16.5  Compliance With Laws and Regulations

      Notwithstanding anything in the Plan to the contrary, the Board, in its
sole discretion, may bifurcate the Plan so as to restrict, limit or condition
the use of any provision of the Plan to Optionees who are officers or directors
subject to Section 16 of the Exchange Act without so restricting, limiting or
conditioning the Plan with respect to other Optionees.  Additionally, in
interpreting and applying the provisions of the Plan, any Option granted as an
Incentive Stock Option pursuant to the Plan shall, to the extent permitted by
law, be construed as an "incentive stock option" within the meaning of Section
422 of the Code.

16.6  No Trust or Fund

      The Plan is intended to constitute an "unfunded" plan.  Nothing contained
herein shall require the Company to segregate any monies or other property, or
shares of Common Stock, or to create any trusts, or to make any special deposits
for any immediate or deferred amounts payable to any Optionee, and no Optionee
shall have any rights that are greater than those of a general unsecured
creditor of the Company.

16.7  Severability

      If any provision of the Plan or any Option is determined to be invalid,
illegal or unenforceable in any jurisdiction, or as to any person, or would
disqualify the Plan or any Option under any law deemed applicable by the Plan
Administrator, such provision shall be construed or deemed amended to conform to
applicable laws, or, if it cannot be so construed or deemed amended without, in
the Plan Administrator's determination, materially altering the intent of the
Plan or the Option, such provision shall be stricken as to such jurisdiction,
person or Option, and the remainder of the Plan and any such Option shall remain
in full force and effect.

16.8  Appendix Provisions

      Optionees who are residents of the State of California shall be subject to
the additional terms and conditions set forth in Appendix A to the Plan.

                          SECTION 17.  EFFECTIVE DATE

      The Plan's effective date is the date on which it is adopted by the Board,
so long as it is approved by the Company's shareholders at any time within 12
months of such adoption.

                                      -16-
<PAGE>

     Adopted by the Board on January 13, 1997 and approved by the Company's
shareholders on February 5, 1997.  Plan amended and restated by the Board on
September 13, 1999, and further amended to reflect the Company's November 2,
1999 name change.

                                      -17-
<PAGE>

                      APPENDIX A FOR CALIFORNIA RESIDENTS
                                      TO
                  DRIVEWAY CORPORATION 1997 STOCK OPTION PLAN

     This Appendix to the Driveway Corporation 1997 Stock Option Plan (the
"Plan") shall have application only to Optionees who are residents of the State
of California.  Capitalized terms contained herein shall have the same meanings
given to them in the Plan, unless otherwise provided in this Appendix.
Notwithstanding any provision contained in the Plan to the contrary and to the
extent required by applicable law, the following terms and conditions shall
apply to all Options granted to residents of the State of California, until such
time as the Common Stock becomes a "listed security" under the Securities Act:

     1.   Nonqualified Stock Options shall have an exercise price that is not
less than 85% of the Fair Market Value of the stock at the time the Option is
granted, as determined by the Board, except that the exercise price shall be
110% of the Fair Market Value in the case of any person who owns stock
possessing more than 10% of the total combined voting power of all classes of
stock of the Company or its parent or subsidiary corporations.

     2.   Options shall have a term of not more than 10 years from the date the
Option is granted.

     3.   Options shall be nontransferable other than by will or the laws of
descent and distribution.  Notwithstanding the foregoing, and to the extent
permitted by Section 422 of the Code, the Plan Administrator, in its discretion,
may permit distribution of an Option to an inter vivos or testamentary trust in
which the Option is to be passed to beneficiaries upon the death of the trustor
(settlor), or by gift to "immediate family" as that term is defined in Rule 16a-
1(e) of the Exchange Act.

     4.   Options shall become exercisable at the rate of at least 20% per year
over five years from the date the Option is granted, subject to reasonable
conditions such as continued employment.  However, in the case of an Option
granted to officers, directors or consultants of the Company or any of its
affiliates, the Option may become fully exercisable, subject to reasonable
conditions such as continued employment, at any time or during any period
established by the Company or any of its affiliates.

     5.   Unless employment is terminated for Cause, the right to exercise an
Option in the event of termination of employment, to the extent that the
Optionee is otherwise entitled to exercise an Option on the date employment
terminates, shall be

             a.  at least six months from the date of termination of employment
if termination was caused by death or Disability; and

             b.  at least 30 days from the date of termination if termination of
employment was caused by other than death or Disability;

                                      -1-
<PAGE>

             c.  but in no event later than the remaining term of the
Option.

     6.   No Option may be granted to a resident of California more than 10
years after the earlier of the date of adoption of the Plan and the date the
Plan is approved by the shareholders.

     7.   Any Option exercised before shareholder approval is obtained shall be
rescinded if shareholder approval is not obtained within 12 months before or
after the Plan is adopted.  Such shares shall not be counted in determining
whether such approval is obtained.

     8.   The Company shall provide annual financial statements of the Company
to each California resident holding an outstanding Option under the Plan. Such
financial statements need not be audited and need not be issued to key employees
whose duties at the Company assure them access to equivalent information.

     9.   Any right of repurchase on behalf of the Company in the event of an
Optionee's termination of employment shall be (a) at a purchase price that is
not less than the Fair Market Value of the securities upon termination of
employment, and the right to repurchase shall be exercised for cash or
cancellation of purchase money indebtedness for the shares within 90 days of
termination of employment (or in the case of securities issued upon exercise of
Options after the date of termination, within 90 days after the date of the
exercise), and the right shall terminate when the Company's securities become
publicly traded; or (b) at the original purchase price, provided that the right
to repurchase at the original purchase price lapses at the rate of at least 20%
of the shares per year over five years from the date the Option is granted
(without respect to the date the Option was exercised or became exercisable) and
the right to repurchase shall be exercised for cash or cancellation of purchase
money indebtedness for the shares within 90 days of termination of employment
(or in the case of securities issued upon exercise of Options after the date of
termination, within 90 days after the date of the exercise).  In addition to the
restrictions set forth in clauses (a) and (b), the securities held by an
officer, director or consultant of the Company or an affiliate of the Company
may be subject to additional or greater restrictions.

                                      -2-
<PAGE>

                    PLAN ADOPTION AND AMENDMENTS/ADJUSTMENTS
<TABLE>
<CAPTION>
       Date of
      Adoption/
      Amendment/                                            Date of Shareholder
      Adjustment       Section      Effect of Amendment           Approval
      ----------       -------      -------------------     -------------------
      <S>              <C>          <C>                     <C>
</TABLE>

                                      -3-<PAGE>

                                                                   EXHIBIT 10.02

                  DRIVEWAY CORPORATION 1997 STOCK OPTION PLAN
                          Notice of Stock Option Grant

          We are pleased to inform you that you have been selected by Driveway
Corporation (the "Company") to receive the following Option to purchase Common
Stock of the Company.  The terms of the Option are as set forth in this Notice,
the attached Stock Option Agreement and the Company's 1997 Stock Option Plan
(the "Plan"):

       Name of Optionee:
                                             -------------------------

       Total Number of Shares Granted:
                                             -------------------------

       Type of Option:                       Incentive Stock Option

       Exercise Price Per Share:             $
                                              --------

       Date of Grant:
                                             ------------------------

       Vesting Commencement Date:            ------------------------

       Vesting Schedule:                     This Option may be exercised
                                             immediately, in whole or in part,
                                             subject to the Company's right to
                                             repurchase shares acquired on
                                             exercise, which right shall lapse
                                             in accordance with the following
                                             schedule: the first 25% of the
                                             shares subject to the Option will
                                             vest and cease to be subject to the
                                             repurchase option one year after
                                             the Vesting Commencement Date. The
                                             remainder of the shares subject to
                                             the Option will vest and cease to
                                             be subject to the repurchase option
                                             as to an additional 6.25% of the
                                             shares subject to the Option after
                                             each full three-month period of
                                             continuous employment or service
                                             thereafter. The Option will be
                                             fully vested 4 years from the
                                             Vesting Commencement Date.

       Expiration Date:                      -----------------------------------

By your signature and the signature of the Company's representative below, you
and the Company agree that this Option is granted under and governed by the
terms and conditions of the Plan and the Stock Option Agreement, both of which
are attached to and made a part of this document.

Optionee:                           Driveway Corporation

                                    By:
-------------------------                  -------------------------------

                                    Title:
-------------------------                  -------------------------------
Print Name
<PAGE>

THE OPTION GRANTED PURSUANT TO THIS AGREEMENT AND THE SHARES ISSUABLE UPON THE
EXERCISE THEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, AND MAY NOT BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED WITHOUT AN
EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR AN OPINION OF COUNSEL,
SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT
REQUIRED.

                  Driveway Corporation 1997 Stock Option Plan:
                             Stock Option Agreement

SECTION 1.    Grant Of Option.

          (a) Option. On the terms and conditions set forth in the Notice of
     Stock Option Grant and this Agreement, the Company grants to the Optionee
     on the Date of Grant the Option to purchase at the Exercise Price the
     number of Shares set forth in the Notice of Stock Option Grant (the
     "Option"). The Exercise Price is agreed to be at least 100% of the Fair
      ------
     Market Value per Share on the Date of Grant (110% of Fair Market Value if
     Section 8.2 of the Plan applies). This Option is intended to be an ISO or a
     Nonstatutory Option, as provided in the Notice of Stock Option Grant.

          (b) Stock Plan and Defined Terms. This Option is granted pursuant to
     the Plan, a copy of which the Optionee acknowledges having received. The
     provisions of the Plan are incorporated into this Agreement by this
     reference. Unless otherwise defined herein, capitalized terms are defined
     in Section 13 of this Agreement.

SECTION 2.    RIGHT TO EXERCISE.

          (a) Exercisability. Subject to the terms and conditions set forth in
this Agreement and the Plan, this Option shall vest and become exercisable
according to the Vesting Schedule set forth in the Notice of Stock Option Grant.

          (b) $100,000 Limitation. If the Option is designated as an ISO on the
Notice of Stock Option Grant and the aggregate Exercise Price Per Share with
respect to which the Option first becomes exercisable during any calendar year
(under the Option and all other ISOs you hold) exceeds $100,000, the excess
portion will be treated as a nonqualified stock option, unless the Internal
Revenue Service changes the rules and regulations governing the $100,000 limit
for ISOs. A portion of the Option may be treated as a nonqualified stock option
if certain events cause exercisability of the Option to accelerate.

          (c)  Stockholder Approval.  Any other provision of this Agreement
notwithstanding, no portion of this Option shall be exercisable at any time
prior to the approval of the Plan by the Company's stockholders.

                                       2
<PAGE>

SECTION 3.    No Transfer Or Assignment Of Option.

          Except as otherwise provided in this Agreement, this Option and the
rights and privileges conferred hereby shall not be sold, pledged or otherwise
transferred (whether by operation of law or otherwise) and shall not be subject
to sale under execution, attachment, levy or similar process.

SECTION 4.    Exercise Procedures.

          (a) Notice of Exercise. The Optionee or the Optionee's representative
may exercise this Option by giving written notice to the Company pursuant to
Section 12(c). The notice shall specify the election to exercise this Option,
the number of Shares for which it is being exercised and the form of payment.
The notice shall be signed by the person exercising this Option. In the event
that this Option is being exercised by the representative of the Optionee, the
notice shall be accompanied by proof (satisfactory to the Company) of the
representative's right to exercise this Option. The Optionee or the Optionee's
representative shall deliver to the Company, at the time of giving the notice,
payment in a form permissible under Section 5 for the full amount of the
Purchase Price.

          (b) Issuance of Shares. After receiving a proper notice of exercise,
the Company shall cause to be issued a certificate or certificates for the
Shares as to which this Option has been exercised, registered in the name of the
person exercising this Option (or in the names of such person and his or her
spouse as community property or as joint tenants with right of survivorship).
The Company shall cause such certificate or certificates to be deposited in
escrow or delivered to or upon the order of the person exercising this Option.

          (c) Withholding Taxes. In the event that the Company determines that
it is required to withhold any tax as a result of the exercise of this Option,
the Optionee, as a condition to the exercise of this Option, shall make
arrangements satisfactory to the Company to enable it to satisfy all withholding
requirements. The Optionee shall also make arrangements satisfactory to the
Company to enable it to satisfy any withholding requirements that may arise in
connection with the disposition of Shares purchased by exercising this Option.

SECTION 5.     Payment For Stock.

               (a) Cash. All or part of the Purchase Price may be paid in cash
or cash equivalents.

               (b) Surrender of Stock. All or any part of the Purchase Price may
be paid by surrendering, or attesting to the ownership of, Shares of Common
Stock that are already owned by the Optionee. Such Shares shall be surrendered
to the Company in good form for transfer and shall be valued at their Fair
Market Value on the date when this Option is exercised. The Optionee shall not
surrender, or attest to the ownership of, Shares in payment of the Purchase
Price if such action would cause the Company to recognize compensation expense
(or additional compensation expense) with respect to this Option for financial
reporting purposes.

               (c) Exercise/Sale. If Stock is publicly traded, all or part of
the Purchase Price and any withholding taxes may be paid by the delivery (on a
form prescribed by the Company)

                                       3
<PAGE>

of an irrevocable direction to a securities broker approved by the Company to
sell Shares and to deliver all or part of the sales proceeds to the Company.

          (d) Exercise/Pledge. If Stock is publicly traded, all or part of the
Purchase Price and any withholding taxes may be paid by the delivery (on a
form prescribed by the Company) of an irrevocable direction to pledge
Shares to a securities broker or lender approved by the Company, as
security for a loan, and to deliver all or part of the loan proceeds to the
Company.

SECTION 6.    Term And Expiration.

          (a) Basic Term. This Option shall in any event expire on the
expiration date set forth in the Notice of Stock Option Grant, which date is 10
years after the Date of Grant (five years after the Date of Grant if this Option
is designated as an ISO in the Notice of Stock Option Grant and Section 8.2 of
the Plan applies).

          (b) Termination of Service (Except by Death). If the Optionee's
Continuous Status as an Employee or Consultant (as such term is defined in the
Plan) terminates for any reason other than death, then this Option shall expire
on the earliest of the following occasions:

               (i) The expiration date determined pursuant to Subsection (a)
          above (the "Expiration Date");

               (ii) The date that is twelve (12) months after the termination of
          Optionee's Continuous Status as an Employee or Consultant as a result
          of his or her total and permanent disability within the meaning of
          Section 22(e)(3) of the Code;

               (iii) The date that is six (6) months after the termination of
          Optionee's Continuous Status as an Employee or Consultant as a result
          of a disability which does not fall within the meaning of Subsection
          (ii) above, provided, however, that to the extent that Optionee fails
                      --------  -------
          to exercise an Option which is an ISO within three months of the date
          of such termination, the Option will not qualify for ISO treatment;

               (iv) The date that is six (6) months after Optionee's death if it
          occurs during the period of Continuous Status as an Employee or
          Consultant; or

               (v) The date three (3) months after the termination of the
          Optionee's Service for any reason other than as described in
          Subsections (ii), (iii) or (iv) above.

The Optionee may exercise all or part of this Option at any time before its
expiration under the preceding sentence, but only to the extent that this Option
had become vested and exercisable before the Optionee's Service terminated.
When the Optionee's Service terminates, this Option shall expire immediately
with respect to the number of Shares for which this Option is not yet vested and
exercisable.  Notwithstanding the foregoing, in the event that the Optionee dies
within thirty (30) days after termination of Service but before the expiration
of this Option, all or part of this Option may be exercised until the earlier of
six (6) months after the date of Optionee's death

                                       4
<PAGE>

or the Expiration Date by the executors or administrators of the Optionee's
estate or by any person who has acquired this Option directly from the Optionee
by beneficiary designation, bequest or inheritance, but only to the extent that
this Option had become exercisable before the Optionee's Service terminated.

               (c) Leaves of Absence. For any purpose under this Agreement,
Service shall be deemed to continue while the Optionee is on a bona fide leave
of absence, if such leave was approved by the Company in writing and if
Continuous Status as an Employee or Consultant for such purpose is expressly
required by the terms of such leave or by applicable law (as determined by the
Company).

               (d) Notice Concerning ISO Treatment. If this Option is designated
as an ISO in the Notice of Stock Option Grant, it ceases to qualify for
favorable tax treatment as an ISO to the extent it is exercised (i) more than
three months after the date the Optionee ceases to be an Employee for any reason
other than death or permanent and total disability (as defined in Section
22(e)(3) of the Code), (ii) more than 12 months after the date the Optionee
ceases to be an Employee by reason of such permanent and total disability or
(iii) after the Optionee has been on a leave of absence for more than 90 days,
unless the Optionee's reemployment rights are guaranteed by statute or by
contract.

SECTION 7.    Right Of First Refusal.

               (a) Right of First Refusal. In the event that the Optionee
proposes to sell, pledge or otherwise transfer to a third party any Shares
issued upon the exercise of this Option, or any interest in such Shares, the
Company shall have the Right of First Refusal with respect to all of such
Shares. If the Optionee desires to transfer Shares acquired under this
Agreement, the Optionee shall give a written Transfer Notice to the Company
describing fully the proposed transfer, including the number of Shares proposed
to be transferred, the proposed transfer price, the name and address of the
proposed Transferee and proof satisfactory to the Company that the proposed sale
or transfer will not violate any applicable federal or state securities laws.
The Transfer Notice shall be signed both by the Optionee and by the proposed
Transferee and must constitute a binding commitment of both parties to the
transfer of the Shares. The Company shall have the right to purchase all of the
Shares on the terms of the proposal described in the Transfer Notice (subject,
however, to any change in such terms permitted under Subsection (b) below) by
delivery of a notice of exercise of the Right of First Refusal within 30 days
after the date when the Transfer Notice was received by the Company. The
Company's rights under this Subsection (a) shall be freely assignable, in whole
or in part.

               (b) Transfer of Shares. If the Company fails to exercise its
Right of First Refusal within 30 days after the date when it received the
Transfer Notice, the Optionee may, not later than 90 days following receipt of
the Transfer Notice by the Company, conclude a transfer of the Shares subject to
the Transfer Notice on the terms and conditions described in the Transfer
Notice, provided that any such sale is made in compliance with applicable
federal and state securities laws and not in violation of any other contractual
restrictions to which the Optionee is bound. Any proposed transfer on terms and
conditions different from those described in the Transfer Notice, as well as any
subsequent proposed transfer by the Optionee, shall again be subject to the
Right of First Refusal and shall require compliance with the procedure
described in

                                       5
<PAGE>

Subsection (a) above. If the Company exercises its Right of First Refusal, the
parties shall consummate the sale of the Shares on the terms set forth in the
Transfer Notice within 60 days after the date when the Company received the
Transfer Notice (or within such longer period as may have been specified in the
Transfer Notice); provided, however, that in the event the Transfer Notice
provided that payment for the Shares was to be made in a form other than cash or
cash equivalents paid at the time of transfer, the Company shall have the option
of paying for the Shares with cash or cash equivalents equal to the present
value of the consideration described in the Transfer Notice.

               (c) Additional Shares or Substituted Securities. In the event of
the declaration of a stock dividend, the declaration of an extraordinary
dividend payable in a form other than stock, a spin-off, a stock split, an
adjustment in conversion ratio, a recapitalization or a similar transaction
affecting the Company's outstanding securities without receipt of consideration,
any new, substituted or additional securities or other property (including money
paid other than as an ordinary cash dividend) which are by reason of such
transaction distributed with respect to any Shares subject to this Section 7 or
into which such Shares thereby become convertible shall immediately be subject
to this Section 7. Appropriate adjustments to reflect the distribution of such
securities or property shall be made to the number and/or class of the Shares
subject to this Section 7.

               (d) Termination of Right of First Refusal. Any other provision of
this Section 7 notwithstanding, in the event that the Stock is readily tradable
on an established securities market when the Optionee desires to transfer
Shares, the Company shall have no Right of First Refusal, and the Optionee shall
have no obligation to comply with the procedures prescribed by Subsections (a)
and (b) above.

               (e) Permitted Transfers. This Section 7 shall not apply to (i) a
transfer by beneficiary designation, will or intestate succession or (ii) a
transfer to the Optionee's spouse, children or grandchildren or to a trust by
the Optionee for the benefit of the Optionee or the Optionee's spouse, children
or grandchildren, provided in either case that the Transferee agrees in writing
on a form prescribed by the Company to be bound by all provisions of this
Agreement. If the Optionee transfers any Shares acquired under this Agreement,
either under this Subsection (e) or after the Company has failed to exercise the
Right of First Refusal, then this Section 7 shall apply to the Transferee to the
same extent as to the Optionee.

               (f) Termination of Rights as Stockholder. If the Company makes
available, at the time and place and in the amount and form provided in this
Agreement, the consideration for the Shares to be purchased in accordance with
this Section 7, then after such time the person from whom such Shares are to be
purchased shall no longer have any rights as a holder of such Shares (other than
the right to receive payment of such consideration in accordance with this
Agreement). Such Shares shall be deemed to have been purchased in accordance
with the applicable provisions hereof, whether or not the certificate(s)
therefor have been delivered as required by this Agreement.

                                       6
<PAGE>

SECTION 8.    Legality Of Initial Issuance.

          No Shares shall be issued upon the exercise of this Option unless and
until the Company has determined that:

               (a) It and the Optionee have taken any actions required to
register the Shares under the Securities Act or to perfect an exemption from the
registration requirements thereof;

               (b) Any applicable listing requirement of any stock exchange or
other securities market on which Stock is listed has been satisfied; and

               (c) Any other applicable provision of state or federal law has
been satisfied.

By acceptance of this Option, Optionee acknowledges that Optionee has read and
understands Section 16.3 of the Plan.

SECTION 9.   No Registration Rights.

          The Company may, but shall not be obligated to, register or qualify
the sale of Shares under the Securities Act or any other applicable law.  The
Company shall not be obligated to take any affirmative action in order to cause
the sale of Shares under this Agreement to comply with any law.

SECTION 10.  Restrictions On Transfer.

               (a) Securities Law Restrictions. Regardless of whether the
offering and sale of Shares under the Plan have been registered under the
Securities Act or have been registered or qualified under the securities laws of
any state, the Company at its discretion may impose restrictions upon the sale,
pledge or other transfer of such Shares (including the placement of appropriate
legends on stock certificates or the imposition of stop-transfer instructions)
if, in the judgment of the Company, such restrictions are necessary or desirable
in order to achieve compliance with the Securities Act, the securities laws of
any state or any other law.

               (b) Market Stand-Off. In connection with any underwritten public
offering by the Company of its equity securities pursuant to an effective
registration statement filed under the Securities Act, including the Company's
initial public offering, the Optionee shall not directly or indirectly sell,
make any short sale of, loan, hypothecate, pledge, offer, grant or sell any
option or other contract for the purchase of, purchase any option or other
contract for the sale of, or otherwise dispose of or transfer, or agree to
engage in any of the foregoing transactions with respect to, any Shares acquired
under this Agreement without the prior written consent of the Company or its
underwriters. Such restriction (the "Market Stand-Off") shall be in effect for
such period of time following the date of the final prospectus for the offering
as may be requested by the Company or such underwriters. In no event, however,
shall such period exceed 180 days. The Market Stand-Off shall in any event
terminate two years after the date of the Company's initial public offering. In
the event of the declaration of a stock dividend, a spin-off, a stock split, an
adjustment in conversion ratio, a recapitalization or a similar transaction
affecting the Company's outstanding securities without receipt of consideration,
any new, substituted or additional securities which are by reason of such
transaction distributed with

                                       7
<PAGE>

respect to any Shares subject to the Market Stand-Off, or into which such Shares
thereby become convertible, shall immediately be subject to the Market Stand-
Off. In order to enforce the Market Stand-Off, the Company may impose stop-
transfer instructions with respect to the Shares acquired under this Agreement
until the end of the applicable stand-off period. The Company's underwriters
shall be beneficiaries of the agreement set forth in this Subsection (b). This
Subsection (b) shall not apply to Shares registered in the public offering under
the Securities Act, and the Optionee shall be subject to this Subsection (b)
only if the directors and officers of the Company are subject to similar
arrangements.

               (c) Investment Intent at Grant. The Optionee represents and
agrees that the Shares to be acquired upon exercising this Option will be
acquired for investment, and not with a view to the sale or distribution
thereof.

               (d) Investment Intent at Exercise. In the event that the sale of
Shares under the Plan is not registered under the Securities Act but an
exemption is available which requires an investment representation or other
representation, the Optionee shall represent and agree at the time of exercise
that the Shares being acquired upon exercising this Option are being acquired
for investment, and not with a view to the sale or distribution thereof, and
shall make such other representations as are deemed necessary or appropriate by
the Company and its counsel.

               (e) Legends. All certificates evidencing Shares purchased under
this Agreement shall bear the following legend:

     "THE SHARES REPRESENTED HEREBY MAY NOT BE SOLD, ASSIGNED, TRANSFERRED,
     ENCUMBERED OR IN ANY MANNER DISPOSED OF, EXCEPT IN COMPLIANCE WITH THE
     TERMS OF A WRITTEN AGREEMENT BETWEEN THE COMPANY AND THE REGISTERED HOLDER
     OF THE SHARES (OR THE PREDECESSOR IN INTEREST TO THE SHARES).  SUCH
     AGREEMENT GRANTS TO THE COMPANY CERTAIN RIGHTS OF FIRST REFUSAL UPON AN
     ATTEMPTED TRANSFER OF THE SHARES.  THE SECRETARY OF THE COMPANY WILL UPON
     WRITTEN REQUEST FURNISH A COPY OF SUCH AGREEMENT TO THE HOLDER HEREOF
     WITHOUT CHARGE."

All certificates evidencing Shares purchased under this Agreement in an
unregistered transaction shall bear the following legend (and such other
restrictive legends as are required or deemed advisable under the provisions of
any applicable law):

     "THE SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
     SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED, OR
     OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH
     ACT OR AN OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY AND ITS COUNSEL,
     THAT SUCH REGISTRATION IS NOT REQUIRED."

               (f) Removal of Legends. If, in the opinion of the Company and its
counsel, any legend placed on a stock certificate representing Shares sold under
this Agreement is no longer

                                       8
<PAGE>

required, the holder of such certificate shall be entitled to exchange such
certificate for a certificate representing the same number of Shares but without
such legend.

               (g) Administration. Any determination by the Company and its
counsel in connection with any of the matters set forth in this Section 10 shall
be conclusive and binding on the Optionee and all other persons.

SECTION 11.    Adjustment Of Shares.

          In the event of any transaction described in Section 10 of the Plan,
the terms of this Option (including, without limitation, the number and kind of
Shares subject to this Option and the Exercise Price) shall be adjusted as set
forth in Section 10 of the Plan.  In the event that the Company is a party to a
merger or consolidation, this Option shall be subject to the agreement of merger
or consolidation, as provided in Section 10 of the Plan.

SECTION 12.    Miscellaneous Provisions.

               (a) Rights as a Stockholder. Neither the Optionee nor the
Optionee's representative shall have any rights as a stockholder with respect to
any Shares subject to this Option until the Optionee or the Optionee's
representative becomes entitled to receive such Shares by filing a notice of
exercise and paying the Purchase Price pursuant to Sections 4 and 5.

               (b) No Retention Rights. Nothing in this Option or in the Plan
shall confer upon the Optionee any right to continue in Service for any period
of specific duration or interfere with or otherwise restrict in any way the
rights of the Company (or any Parent or Subsidiary employing or retaining the
Optionee) or of the Optionee, which rights are hereby expressly reserved by
each, to terminate his or her Service at any time and for any reason, with or
without cause.

               (c) Notice. Any notice required by the terms of this Agreement
shall be given in writing and shall be deemed effective upon personal delivery
or upon deposit with the United States Postal Service, by registered or
certified mail, with postage and fees prepaid. Notice shall be addressed to the
Company at its principal executive office and to the Optionee at the address
that he or she most recently provided to the Company.

               (d) Entire Agreement. The Notice of Stock Option Grant, this
Agreement and the Plan constitute the entire contract between the parties hereto
with regard to the subject matter hereof. They supersede any other agreements,
representations or understandings (whether oral or written and whether express
or implied) which relate to the subject matter hereof.

               (e) Assigns. This Agreement will inure to the benefit of the
successors and assigns of the Company and be binding upon Optionee and
Optionee's heirs, executors, administrators, successors and assigns.

               (f) No Waiver. No waiver of any provision of this Agreement will
be valid unless in writing, signed by the person against whom such waiver is
sought to be enforced, nor will failure to enforce any right hereunder
constitute a continuing waiver of the same or a waiver of any other right
hereunder.

                                       9
<PAGE>

               (g) Choice of Law. This Agreement shall be governed by, and
construed in accordance with, the laws of the State of California, as such
laws are applied to contracts entered into and performed in such State.

SECTION 13.    Definitions.

               (a)  "Agreement" shall mean this Stock Option Agreement.

               (b) "Board of Directors" shall mean the Board of Directors of the
Company, as constituted from time to time or, if a Committee has been appointed,
such Committee.

               (c) "Code" shall mean the Internal Revenue Code of 1986, as
amended.
               (d) "Committee" shall mean a committee of the Board of Directors,
as described in Section 2 of the Plan.

               (e) "Company" shall mean Driveway Corporation, a Delaware
corporation.

               (f) "Consultant" shall mean a person who performs bona fide
services for the Company, a Parent or a Subsidiary as a consultant or advisor,
excluding Employees and Outside Directors.

               (g) "Date of Grant" shall mean the date specified in the Notice
of Stock Option Grant, which date shall be the later of (i) the date on which
the Board of Directors resolved to grant this Option or (ii) the first day of
the Optionee's Service.

               (h) "Disability" shall mean that the Optionee is unable to engage
in any substantial gainful activity by reason of any medically determinable
physical or mental impairment.

               (i) "Employee" shall mean any individual who is a common-law
employee of the Company, a Parent or a Subsidiary.

               (j) "Exercise Price" shall mean the amount for which one Share
may be purchased upon exercise of this Option, as specified in the Notice of
Stock Option Grant.

               (k) "Fair Market Value" shall mean the fair market value of a
Share, as determined by the Board of Directors in good faith. Such determination
shall be conclusive and binding on all persons.

               (l) "ISO" shall mean an employee incentive stock option described
in Section 422(b) of the Code.

               (m) "Nonstatutory Option" shall mean a stock option not described
in Sections 422(b) or 423(b) of the Code.

               (n) "Notice of Stock Option Grant" shall mean the document so
entitled to which this Agreement is attached.

                                      10
<PAGE>

               (o) "Optionee" shall mean the individual named in the Notice of
Stock Option Grant.

               (p) "Outside Director" shall mean a member of the Board of
Directors who is not an Employee.

               (q) "Parent" shall mean any corporation (other than the Company)
in an unbroken chain of corporations ending with the Company, if each of the
corporations other than the Company owns stock possessing 50% or more of the
total combined voting power of all classes of stock in one of the other
corporations in such chain.

               (r) "Plan" shall mean the Driveway Corporation 1997 Stock Option
Plan, as in effect on the Date of Grant.

               (s) "Purchase Price" shall mean the Exercise Price multiplied by
the number of Shares with respect to which this Option is being exercised.

               (t) "Right of First Refusal" shall mean the Company's right of
first refusal described in Section 7.

               (u) "Securities Act" shall mean the Securities Act of 1933, as
amended.

               (v) "Service" shall mean service as an Employee, Outside Director
or Consultant.

               (w) "Share" shall mean one share of Stock issued upon exercise of
an Option, as adjusted in accordance with Section 10 of the Plan (if
applicable).

               (x)  "Stock" shall mean the Common Stock of the Company.

               (y) "Subsidiary" shall mean any corporation (other than the
Company) in an unbroken chain of corporations beginning with the Company, if
each of the corporations other than the last corporation in the unbroken chain
owns stock possessing 50% or more of the total combined voting power of all
classes of stock in one of the other corporations in such chain.

               (z) "Transferee" shall mean any person to whom the Optionee has
directly or indirectly transferred any Share acquired under this Agreement.

               (aa) "Transfer Notice" shall mean the notice of a proposed
transfer of Shares described in Section 7.

                                      11

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