Document:

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                                                                   EXHIBIT 10.17

THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON THE EXERCISE HEREOF
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY
APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE SOLD OR TRANSFERRED UNLESS SUCH
SALE OR TRANSFER IS IN ACCORDANCE WITH THE REGISTRATION REQUIREMENTS OF SUCH ACT
AND APPLICABLE LAWS OR SOME OTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS
OF SUCH ACT AND APPLICABLE LAWS IS AVAILABLE WITH RESPECT THERETO.

                         COMMON STOCK PURCHASE WARRANT

Warrant No. 6                                           Number of Shares  63,560

                            DESKTALK SYSTEMS, INC.

                            Void after May 1, 2005

     1.   Issuance. This Warrant is issued to Geocapital IV, L.P. by DeskTalk
          --------
Systems, Inc., a California corporation (hereinafter with its successors called
the "Company").

     2.   Purchase Price: Number of Shares. Subject to the terms and conditions
          --------------------------------
hereinafter set forth, the registered holder of this Warrant (the "Holder"),
commencing on August 21, 1998 (the "Issue Date"), is entitled upon surrender of
this Warrant, with the subscription form annexed hereto duly executed, at the
office of the Company, 19401 South Vermont Avenue, Torrance, California 90502,
or such other office as the Company shall notify the Holder of in writing, to
purchase from the Company at a purchase price of $2.36 per share (the "Purchase
Price") up to an aggregate of 63,560 fully paid and nonassessable shares of
common stock, no par value, of the Company (the "Common Stock"). Until such time
as this Warrant is exercised in full or expires, the Purchase Price and the
number of shares of Common Stock issuable upon exercise of this Warrant are
subject to adjustment as hereinafter provided.

     3.   Payment of Purchase Price. The Purchase Price may be paid (i) in cash
          -------------------------
or by check, (ii) by the surrender by the Holder to the Company of any
promissory notes or other obligations issued by the Company, with all such notes
and obligations so surrendered being credited against the Purchase Price in an
amount equal to the principal amount thereof plus accrued interest to the date
of surrender, (iii) through delivery by the Holder to the Company of
<PAGE>

other securities issued by the Company, with such securities being credited
against the Purchase Price in an amount equal to the fair market value thereof,
as determined in good faith by the Board of Directors of the Company (the
"Board"), or (iv) by any combination of the foregoing. The Board shall promptly
respond in writing to an inquiry by the Holder as to the fair market value of
any securities the Holder may wish to deliver to the Company pursuant to clause
(iii) above.

     4.     Net Issue Election. The Holder may elect to receive, without the
            ------------------
payment by the Holder of any additional consideration, shares equal to the value
of this Warrant or any portion hereof by the surrender of this Warrant or such
portion to the Company, with the net issue election notice annexed hereto duly
executed, at the office of the Company. Thereupon, the Company shall issue to
the Holder such number of fully paid and nonassessable shares of Common Stock as
is computed using the following formula:

                             X = Y (A-B)
                                 -------
                                    A

where X =  the number of shares to be issued to the Holder pursuant to this
Section 4.

           Y =  the number of shares covered by this Warrant in respect of which
           the net issue election is made pursuant to this Section 4.

           A =  the fair market value of one share of Common Stock, as
           determined in good faith by the Board, as at the time the net issue
           election is made pursuant to this Section 4.

           B =  the Purchase Price in effect under this Warrant at the time the
           net issue election is made pursuant to this Section 4.

The Board shall promptly respond in writing to an inquiry by the Holder as to
the fair market value of one share of Common Stock.

     5.     Partial Exercise. This Warrant may be exercised in part at the
            ----------------
discretion of the Holder, and the Holder shall be entitled to receive a new
warrant, which shall be dated as of the date of this Warrant, covering the
number of shares in respect of which this Warrant shall not have been exercised.

     6.     Issuance Date. The person or persons in whose name or names any
            -------------
certificate representing shares of Common Stock is issued hereunder shall be
deemed to have become the holder of record of the shares represented thereby as
at the close of business on the date this Warrant is exercised with respect to
such shares, whether or not the transfer books of the Company shall be closed.

                                      -2-
<PAGE>

     7.   Expiration Date: Automatic Exercise. This Warrant shall expire on May
          -----------------------------------
1, 2005 and shall be void thereafter. Notwithstanding the foregoing, this
Warrant shall automatically be deemed to be exercised in full pursuant to the
provisions of Section 4 hereof, without any further action on behalf of the
Holder, immediately prior to the time this Warrant would otherwise expire
pursuant to the preceding sentence.

     8.   Reserved Shares: Valid Issuance. The Company covenants that it will at
          -------------------------------
all times from and after the date hereof reserve and keep available such number
of its authorized shares of Common Stock, free from all preemptive or similar
rights therein, as will be sufficient to permit the exercise of this Warrant in
full. The Company further covenants that such shares as may be issued pursuant
to the exercise of this Warrant will, upon issuance, be duly and validly issued,
fully paid and nonassessable, and free from all taxes, liens, and charges with
respect to the issuance thereof.

     9.   Dividends. If after the Issue Date the Company shall subdivide the
          ---------
Common Stock, by split-up or otherwise, or combine the Common Stock, or issue
additional shares of Common Stock in payment of a stock dividend on the Common
Stock, the number of shares issuable on the exercise of this Warrant shall
forthwith be proportionately increased in the case of a subdivision or stock
dividend, or proportionately decreased in the case of a combination, and the
Purchase Price shall forthwith be proportionately decreased in the case of a
subdivision or stock dividend, or proportionately increased in the case of a
combination.

     10.  Mergers and Reclassifications. If after the Issue Date there shall be
          -----------------------------
any reclassification, capital reorganization, or change of the Common Stock
(other than as a result of a subdivision, combination, or stock dividend
provided for in Section 9 hereof), or any consolidation of the Company with, or
merger of the Company into, another corporation or other business organization
(other than a consolidation or merger in which the Company is the continuing
corporation and which does not result in any reclassification or change of the
outstanding Common Stock), or any sale or conveyance to another corporation or
other business organization of all or substantially all of the assets of the
Company, then, as a condition of such reclassification, reorganization, change,
consolidation, merger, sale, or conveyance, lawful provisions shall be made and
duly executed documents evidencing the same from the Company or its successor
shall be delivered to the Holder, so that the Holder shall thereafter have the
right to purchase, at a total price not to exceed that payable upon the exercise
of this Warrant in full, the kind and amount of shares of stock and other
securities and property receivable upon such reclassification, reorganization,
change, consolidation, merger, sale, or conveyance by a holder of the number of
shares of Common Stock which might have been purchased by the Holder immediately
prior to such reclassification, reorganization, change, consolidation, merger,
sale, or conveyance, and in any such case appropriate provisions shall be made
with respect to the rights and interest of the Holder to the end that the
provisions hereof (including without limitation, provisions for the adjustment
of the Purchase Price and the number of shares issuable hereunder) shall
thereafter be applicable in relation to any shares of stock or other securities
and property thereafter deliverable upon exercise hereof.

                                      -3-
<PAGE>

     11.  Adjustments for Issuances Below Purchase Price. In case the Company
          ----------------------------------------------
shall at any time or from time to time after the Issue Date issue or sell any
shares of Common Stock for a consideration per share less than the Purchase
Price in effect for this Warrant immediately prior to the time of such issue or
sale, or pay any dividend or make any other distribution upon the Common Stock
payable in cash, property, or securities of the Company other than Common Stock,
or in securities of a corporation other than the Company, then forthwith upon
such issue or sale, or upon the payment of such dividend or the making of such
other distribution, as the case may be, the Purchase Price shall (until another
such issue or sale, or dividend or other distribution) be reduced to a price
(calculated to the nearest cent) determined by dividing (i) an amount equal to
the sum of(X) the number of shares of Common Stock outstanding immediately prior
to such issue or sale or the payment of such dividend or the making of such
other distribution, multiplied by the Purchase Price in effect immediately prior
to such event plus (Y) the consideration, if any, received by the Company upon
such issue or sale minus (Z) the amount of such dividend or other distribution
in respect of Common Stock, by (ii) the total number of shares of Common Stock
outstanding immediately after such issue or sale or dividend or other
distribution. Further, the number of shares purchasable hereunder shall be
increased to a number determined by dividing (i) the number of shares
purchasable hereunder immediately prior to such issue or sale or dividend or
other distribution, multiplied by the Purchase Price hereunder immediately prior
to such event, by (ii) the Purchase Price in effect immediately after the
foregoing adjustment. The provisions of this Section 11 shall not apply to (i)
shares issued in transactions to which Sections 9 or 10 of this Warrant apply;
(ii) shares of Common Stock (appropriately adjusted for subdivisions,
combinations, stock dividends, and the like) or rights to subscribe for or to
purchase shares of Common Stock or options for the purchase of shares of Common
Stock (appropriately adjusted for subdivisions, combinations, stock dividends,
and the like) offered, granted, or issued to employees, officers, directors, or
consultants of the Company in connection with their service to the Company, plus
such number of shares of Common Stock (as so adjusted) which are repurchased by
the Company from such persons after the Issue Date pursuant to contractual
rights held by the Company and at repurchase prices not exceeding the respective
original purchase prices paid by such persons to the Company therefor.

          For the purpose of this Section 11, the following provisions shall
also be applicable:

      A.  In case the Company shall in any manner offer any rights to subscribe
    for or to purchase shares of Common Stock, or grant any options for the
    purchase of shares of Common Stock, at a price less than the Purchase Price
    in effect immediately prior to the time of the offering of such rights or
    the granting of such options, as the case may be, all shares of Common Stock
    which the holders of such rights or options shall be entitled to subscribe
    for or purchase pursuant to such rights or options shall be deemed to be
    issued or sold as of the date of the offering of such rights or the granting
    of such options, as the case may be, and the minimum aggregate consideration
    named in such rights or options for the Common Stock covered thereby, plus
    the consideration received by the Company for such rights or options, shall
    be deemed to be the consideration actually received by the Company

                                      -4-
<PAGE>

     (as of the date of the offering of such rights or the granting of such
     options, as the case may be) for the issue or sale of such shares.

          B. In case the Company shall in any manner issue or sell any shares of
     any class or obligations directly or indirectly convertible into or
     exchangeable for shares of Common Stock and the price per share for which
     Common Stock is deliverable upon such conversion or exchange (determined by
     dividing (i) the total minimum amount received or receivable by the Company
     in consideration of the issue or sale of such convertible or exchangeable
     shares or obligations, plus the total minimum amount of premiums, if any,
     payable to the Company upon conversion or exchange, by (ii) the total
     number of shares of Common Stock necessary to effect the conversion or
     exchange of all such convertible or exchangeable shares or obligations)
     shall be less than the Purchase Price in effect immediately prior to the
     time of such issue or sale, then such issue or sale shall be deemed to be
     an issue or sale (as of the date of issue or sale of such convertible or
     exchangeable shares or obligations) of the total maximum number of shares
     of Common Stock necessary to effect the conversion or exchange of all such
     convertible or exchangeable shares or obligations, and the total minimum
     amount received or receivable by the Company in consideration of the issue
     or sale of such convertible or exchangeable shares or obligations, plus the
     total minimum amount of premiums, if any, payable to the Company upon
     exchange or conversion, shall be deemed to be the consideration actually
     received (as of the date of the issue or sale of such convertible or
     exchangeable shares or obligations) for the issue or sale of such Common
     Stock.

          C. In the case of any dividend or other distribution on the Common
     Stock of the Company payable in property, securities of the Company other
     than Common Stock or securities of a corporation other than the Company,
     such dividend or other distribution shall be deemed to have been paid or
     made at a value equal to the fair value of the property or securities so
     distributed. Any dividend or distribution referred to in this Subsection C
     shall be deemed to have been paid or made on the day following the date
     fixed for the determination of stockholders entitled to receive such
     dividend or distribution.

          D. In determining the amount of consideration received by the Company
     for Common Stock, securities convertible thereinto, or exchangeable
     therefor, or rights or options for the purchase thereof, no deduction shall
     be made for expenses or underwriting discounts or commissions paid by the
     Company. The Board shall determine in good faith the fair value of the
     amount of consideration other than money received by the Company upon the
     issue by it of any of its securities. The Board shall also determine in
     good faith the fair value of any dividend or other distribution made upon
     Common Stock payable in property, securities of the Company other than
     Common Stock or securities of a corporation other than the Company. The
     Board shall, in case any Common Stock, securities convertible thereinto or
     exchangeable therefor, or rights or options for the purchase thereof are
     issued with other stock, securities or assets of the Company, determine in
     good faith what part of the consideration received therefor is applicable
     to the issue of the Common

                                      -5-
<PAGE>

     Stock, securities convertible thereinto or exchangeable therefor, or rights
     or options for the purchase thereof.

       E.   If there shall be any change in (i) the minimum aggregate
     consideration named in the rights or options referred to in Subsection A
     above, (ii) the consideration received by the Company for such rights or
     options, (iii) the price per share for which Common Stock is deliverable
     upon the conversion or exchange of the convertible or exchangeable shares
     or obligations referred to in Subsection B above, (iv) the number of shares
     which may be subscribed for or purchased pursuant to the rights or options
     referred to in Subsection A above, or (v) the rate at which the convertible
     or exchangeable shares or obligations referred to in Subsection B above are
     convertible into or exchangeable for Common Stock, then the Purchase Price
     in effect at the time of such event shall be readjusted to the Purchase
     Price which would have been in effect at such time had such rights,
     options, or convertible or exchangeable shares or obligations still
     outstanding provided for such changed consideration, price per share,
     number of shares, or rate of conversion or exchange, as the case may be, at
     the time initially offered, granted, issued or sold, but only if as a
     result of such adjustment the Purchase Price then in effect hereunder is
     thereby reduced.

       12.  Fractional Shares. In no event shall any fractional share of Common
            -----------------
Stock be issued upon any exercise of this Warrant. If, upon exercise of this
Warrant as an entirety, the Holder would, except as provided in this Section 12,
be entitled to receive a fractional share of Common Stock, then the Company
shall issue the next higher number of full shares of Common Stock, issuing a
full share with respect to such fractional share.

       13.  Certificate of Adjustment. Whenever the Purchase Price is adjusted,
            -------------------------
as herein provided, the Company shall promptly deliver to the Holder a
certificate setting forth the Purchase Price after such adjustment and setting
forth a brief statement of the facts requiring such adjustment.

       14.  Notices of Record Date, Etc. In the event of:
            ---------------------------

       (a)  any taking by the Company of a record of the holders of any class of
     securities for the purpose of determining the holders thereof who are
     entitled to receive any dividend or other distribution, or any right to
     subscribe for, purchase or otherwise acquire any shares of stock of any
     class or any other securities or property, or to receive any other right,

       (b)  any reclassification of the capital stock of the Company, capital
     reorganization of the Company, consolidation or merger involving the
     Company, or sale or conveyance of all or substantially all of its assets,
     or

       (c)  any voluntary or involuntary dissolution, liquidation, or winding-up
     of the Company,

                                      -6-
<PAGE>

then and in each such event the Company will mail or cause to be mailed to the
Holder a notice specifying (i) the date on which any such record is to be taken
for the purpose of such dividend, distribution or right, and stating the amount
and character of such dividend, distribution or right, or (ii) the date on which
any such reclassification, reorganization, consolidation, merger, sale or
conveyance, dissolution, liquidation, or winding-up is to take place, and the
time, if any is to be fixed, as of which the holders of record in respect of
such event are to be determined. Such notice shall be mailed at least twenty
(20) days prior to the date specified in such notice on which any such action is
to be taken.

     15.  Amendment. The terms of this Warrant may be amended, modified, or
          ---------
waived only with the written consent of the Company and the holders of Warrants
representing at least two-thirds of the total number of shares of Common Stock
then issuable upon the exercise of this Warrant or any new warrants issued to
replace this Warrant. No such amendment, modification or waiver shall be
effective as to this Warrant unless the terms of such amendment, modification or
waiver shall apply with the same force and effect to all of the other Warrants
then outstanding.

     16.  Transfers: Warrant Register: Etc,
          ---------------------------------

     A.   Subject to compliance with applicable federal and state securities
   laws and receipt of an opinion satisfactory to the Company, this Warrant may
   be transferred by the Holder with respect to any or all of the shares
   purchasable hereunder. Upon surrender of this Warrant to the Company and
   receipt of an opinion satisfactory to the Company, together with the
   assignment hereof properly endorsed, for transfer of this Warrant as an
   entirety by the Holder, the Company shall issue a new warrant of the same
   denomination to the assignee. Upon surrender of this Warrant to the Company,
   together with the assignment hereof properly endorsed, by the Holder for
   transfer with respect to a portion of the shares of Common Stock purchasable
   hereunder, the Company shall issue a new warrant to the assignee
   (collectively with the Holder, the "Holders"), in such denomination as shall
   be requested by the Holder hereof, and shall issue to such Holder a new
   warrant covering the number of shares in respect of which this Warrant shall
   not have been transferred (such new warrant, in combination with the Warrant,
   hereinafter referred to as the "Warrants"). Holders of the Warrants shall be
   entitled to the same rights and privileges as the Holder of this Warrant.

      B.  The Company will maintain a register containing the names and
   addresses of the Holders of the Warrants. The Holders may change their
   addresses as shown on the warrant register by written notice to the Company
   requesting such change. Any notice or written communication required or
   permitted to be given to the Holders may be given by certified mail or
   delivered to the Holders at their respective addresses as shown on the
   warrant register.

      C.  In case this Warrant shall be mutilated, lost, stolen, or destroyed,
   the Company shall issue a new warrant of like tenor and denomination and
   deliver the same (i) in exchange and substitution for and upon surrender and
   cancellation of any mutilated

                                      -7-
<PAGE>

   Warrant, or (ii) in lieu of any Warrant lost, stolen, or destroyed, upon
   receipt of evidence reasonably satisfactory to the Company of the loss,
   theft, or destruction of such Warrant (including a reasonably detailed
   affidavit with respect to the circumstances of any loss, theft, or
   destruction) and of indemnity reasonably satisfactory to the Company,
   provided, however, that, so long as the original holder remains the
   registered holder of this Warrant, no indemnity shall be required other than
   its written agreement to indemnify the Company against any loss arising from
   the issuance of such new warrant.

     17.  Registration Rights. The Amended and Restated Registration Rights
          -------------------
Agreement dated April 18, 1997 between the Company and the Holder and the other
parties thereto shall be amended to include the common stock issuable upon
exercise of this Warrant in the definition of Registrable Securities contained
in Section 1.2.

     18.  No Impairment. The Company will not, by amendment of its Articles of
          -------------
Incorporation or through any reclassification, capital reorganization,
consolidation, merger, sale or conveyance of assets, dissolution, liquidation,
issue or sale of securities, or any other voluntary action, avoid or seek to
avoid the observance or performance of any of the terms of this Warrant, but
will at all times in good faith assist in the carrying out of all such terms and
in the taking of all such action as may be necessary or appropriate in order to
protect the rights of the Holder.

     19.  Governing Law. The provisions and terms of this Warrant shall be
          -------------
governed by and construed in accordance with the internal laws of the State of
California.

     20.  Successors and Assigns. This Warrant shall be binding upon the
          ----------------------
Company's successors and assigns and shall inure to the benefit of the Holder's
successors, legal representatives, and permitted assigns.

     21.  Business Days. If the last or appointed day for the taking of any
          -------------
action required or the expiration of any right granted herein shall be a
Saturday or Sunday or a legal holiday in California, then such action may be
taken or right may be exercised on the next succeeding day which is not a
Saturday or Sunday or such a legal holiday.

Dated: August 21,1998                        DESKTALK SYSTEMS, INC.

(Corporate Seal)                             By: /s/ David Kaufman
                                                ----------------------
                                                 Name:  David Kaufman
ATTEST:                                          Title: President

By: /s/ Paul Madick
   ----------------------------
    Name:  Paul Madick
    Title: Corporate Secretary

                                      -8-
<PAGE>

                                 SUBSCRIPTION
                                 ------------

To: _______________________                       Date: __________________

     The undersigned hereby subscribes for _________ shares of Common Stock
covered by this Warrant. The certificate(s) for such shares shall be issued in
the name of the undersigned or as otherwise indicated below:

                                                ________________________
                                                Signature

                                                ________________________
                                                Name for Registration

                                                ________________________
                                                Mailing Address

                                      -9-
<PAGE>

                           NET ISSUE ELECTION NOTICE
                           -------------------------

To:_______________________                        Date: ______________________

     The undersigned hereby elects under Section 4 to surrender the right to
purchase shares of Common Stock pursuant to this Warrant. The certificate(s) for
the shares issuable upon such net issue election shall be issued in the name of
the undersigned or as otherwise indicated below.

                                                ___________________________
                                                Signature

                                                __________________________
                                                Name for Registration

                                                __________________________
                                                Mailing Address

                                      -10-<PAGE>

                                                                   EXHIBIT 10.18

                             DESKTALK SYSTEMS, INC.,
                            A CALIFORNIA CORPORATION

                        1998 INCENTIVE STOCK OPTION PLAN
                            Effective April 22, 1998
<PAGE>

                                TABLE OF CONTENTS

                        1998 INCENTIVE STOCK OPTION PLAN
                            Effective April 22, 1998

Paragraph                                                                Page
---------                                                                ----

 1.   PURPOSE .......................................................       1

 2.   STOCK SUBJECT TO THE PLAN .....................................       1

 3.   ADMINISTRATION ................................................       1

 4.   EMPLOYEES ELIGIBLE ............................................       2

 5.   OPTION PRICE ..................................................       2

 6.   TERM OF OPTIONS ...............................................       2

 7.   EXERCISE OF OPTIONS ...........................................       2

 8.   NON-TRANSFERABILITY OF OPTIONS ................................       3

 9.   TERMINATION OF EMPLOYMENT .....................................       3

10.   DISABILITY OF OPTIONEE ........................................       3

11.   DEATH OF OPTIONEE .............................................       3

12.   ADJUSTMENTS UPON CHANGES IN CAPITALIZATION ....................       4

13.   MERGER OR CONSOLIDATION .......................................       4

14.   VESTING OF RIGHTS UNDER OPTIONS ...............................       4

15.   RESTRICTIVE STOCK PURCHASE AGREEMENT ..........................       4

16.   PREEMPTION BY APPLICABLE LAWS AND REGULATIONS .................       5

17.   NO RESTRICTION ON CORPORATE ACTION ............................       5

18.   RESTRICTED SECURITIES .........................................       5

19.   NON-ASSIGNABILITY .............................................       5

20.   APPLICATION OF FUNDS ..........................................       5

21.   AMENDMENT AND TERMINATION .....................................       5

22.   EFFECTIVE DATE ................................................       6

23.   GOVERNING LAW; CONSTRUCTION ...................................       6

24.   TITLES AND HEADINGS ...........................................       6

                                      (ii)
<PAGE>

                             DESKTALK SYSTEMS, INC.

                        1998 INCENTIVE STOCK OPTION PLAN
                            Effective April 22, 1998

     DESKTALK SYSTEMS, INC., a California corporation (the "Company"), hereby
formulates and adopts the following 1998 INCENTIVE STOCK OPTION PLAN (the "1998
Plan") for key employees of the Company.

     1.  PURPOSE. The purpose of the 1998 Plan is to further the growth and
         -------
development of the Company by encouraging key employees of the Company to obtain
a proprietary interest in the Company through the ownership of Common Stock,
thereby providing such employees with additional incentive to continue in the
employ and to promote the success of the Company, and affording the Company the
means of attracting to its service employees of outstanding quality.

     2.  STOCK SUBJECT TO THE PLAN.
         -------------------------

         2.1   An aggregate of eight hundred thousand (800,000) shares of Common
Stock of the Company (the "Common Stock"), subject however, to adjustment or
change pursuant to Paragraph 12 hereof, shall be reserved for issuance upon the
exercise of options which may be granted from time to time in accordance with
1998 Plan (the "Options"). If, for any reason, an Option shall lapse, expire or
terminate without having been exercised in full, the unpurchased shares covered
thereby shall again be available for the purposes of the 1998 Plan.

         2.2   Subject to Paragraph 2.1 above, the aggregate fair market value
(determined as of the time the option is granted) of the Common Stock underlying
Options granted to any key employee in any calendar year shall not exceed
$100,000 calculated under section 422 (d) of the Internal Revenue Code of 1986,
as amended, with respect to such employee.

     3.  ADMINISTRATION. The Board of Directors shall administer the 1998 Plan
         --------------
and, subject to the provisions of the 1998 Plan, shall have authority in its
discretion to determine the employees to whom, and the time or times at which,
Options shall be granted and the number of shares to be subject to each Option.
In making such determination, the Board of Directors may take into account the
nature of the services rendered by the respective employees, their present and
potential contributions to the Company's success and such other factors as the
Board of Directors in its sole discretion shall deem relevant. Subject to the
express provisions of the 1998 Plan, the Board of Directors shall also have the
authority to interpret the 1998 Plan, to prescribe, amend and rescind rules and
regulations relating to it, to the term and the terms and provisions of the
respective Option Agreements, which shall be substantially in the form attached
hereto as Exhibit "A", and to make all of the determinations necessary or
advisable for the administration of the 1998 Plan all of which determinations
shall be conclusive and not subject to review.

                                       1
<PAGE>

     4.  EMPLOYEES ELIGIBLE. Options may be granted under the 1998 Plan to any
         ------------------
key employee of the Company. Employees who are also officers or directors of the
Company shall not by reason of such offices be ineligible to receive Options
under the 1998 Plan. No person who would own, directly or indirectly,
immediately after the granting of an Option to him, more than ten percent (10%)
of the total combined voting power or value of all classes or stock of the
Company shall be eligible to receive any options under the 1998 Plan, unless the
exercise price of the Option granted is at least 110 percent of the fair market
value of the stock subject to the Option. An employee receiving an option under
the 1998 Plan is hereinafter referred to as an "Optionee".

     5.  OPTION PRICE. The exercise price per share for each option shall be
         ------------
equal to the fair market value for each share of the common stock of the Company
on the date of grant as determined by the Board of Directors after consideration
of the earnings history, book value and prospects of the Company in light of
market conditions generally. The exercise price as fixed by the Board of
Directors shall be conclusive and not subject to review.

     6.  TERM OF OPTIONS. The term of each Option shall be six years from the
         ---------------
date of grant thereof, but shall be subject to earlier termination as herein
provided. Except as provided in Paragraphs 10 and 11 hereof, no Option shall be
exercisable unless the Optionee shall have been an employee of the Company
continuously from the date of grant to the date of exercise. The Board of
Directors may, in its discretion, accelerate the exercisability of all or part
of an Optionee's Option that is not exercisable as of the date of death,
disability or employment termination of the optionee.

     7.  EXERCISE OF OPTIONS.
         -------------------

         7.1   No Option granted under the 1998 Plan shall be exercisable until
one year from the date of grant. Thereafter each Option shall be exercisable as
follows:

               7.1.1    At the end of one year from such date of grant, up to
twenty-five percent (25%) of the total shares subject to such Option; and

               7.1.2    At the end of the thirteenth month of employment and at
the expiration of each month thereafter from the date of grant an additional
1/48 of the total shares subject to such Option until the completion of the
fourth year of employment when the Option shall be one hundred percent (100%)
exercisable until termination of the option. Provided, however, that no option
may be exercised as to less than one hundred (100) shares at any one time (or
the remaining shares then purchasable under the option if less than one hundred
(100) shares).

                                       2
<PAGE>

         7.2   The exercise of an Option shall be contingent upon receipt from
the optionee of a written representation that at the time of such exercise it is
the Optionee's then present intention to acquire the Option shares for
investment and not with a view to distribution or resale thereof, the signing of
the Company's then standard Lock Up Agreement restricting, under certain
conditions the sell or transfer of the Stock upon registration under the
Securities Act of 1933 as amended, and upon receipt by the Company of cash, or a
certified or bank cashier's check to its order, for the full purchase price of
such shares and such other representations as may be reasonably required by the
Corporation.

         7.3   An Optionee shall have none of the rights of a shareholder with
respect to shares subject to the option until a certificate for such shares
shall have been issued to the Optionee upon the due exercise of the option.

     8.  NON-TRANSFERABILITY OF OPTIONS. No Option granted pursuant to the 1998
         ------------------------------
Plan shall be transferable otherwise than by a Will or the laws of descent and
distribution and an Option may be exercised, during the lifetime of the
optionee, only by the optionee.

     9.  TERMINATION OF EMPLOYMENT. In the event that the employment of an
         -------------------------
Optionee shall be terminated by the Company for any reason, other than by reason
of death or disability, such Option shall forthwith terminate, lapse and expire,
except that within one month from the date of termination the Optionee may
exercise an Option to the extent such Option was exercisable by such Optionee at
the date of termination. So long as an Optionee shall continue to be in the
employ of the Company, his or her Option shall not be affected by any change of
duties or position. Absence on leave approved by the Company shall not be
considered an interruption of employment for any purpose under the 1998 Plan.
Nothing in the 1998 Plan or in any Option Agreement granted hereunder shall
confer upon any optionee any right to continue in the employ of the Company or
interfere in any way with the right of the Company to terminate the employment
of an optionee at any time.

     10. DISABILITY OF OPTIONEE. If the employment of an Optionee shall be
         ----------------------
terminated by reason of disability, such Optionee may, within three months from
the date of termination for such cause, exercise the option to the extent such
Option was exercisable by such Optionee at the date of termination.
Notwithstanding the foregoing, no option may be exercised after six years from
the date of its grant.

     11. DEATH OF OPTIONEE. If an Optionee shall die while in the employ of the
         -----------------
Company, the Option theretofore granted to him or her may be exercised, but only
to the extent such Option was exercisable by the optionee at the date of death,
by the legatees of such optionee under his or her Last Will, or by his or her
personal representative or distributees, within three months from the date of
death, but in no event after six years from the date of the grant of the Option.

                                       3
<PAGE>

     12. ADJUSTMENTS UPON CHANGES IN CAPITALIZATION. If at any time after the
         ------------------------------------------
date of grant of an Option, the Company shall, by stock dividend, stock split,
reverse stock split, combination, reclassification or exchange or through merger
or consolidation, or otherwise, change its shares of Common Stock into a
different number or kind or class of shares or other securities or property,
then the number of shares covered by such Option and the price per share thereof
shall be proportionally adjusted for any such change by the Board of Directors
whose determination thereon shall be conclusive. In the event that a fraction of
a share results from the foregoing adjustment, the fraction shall be eliminated
and the price per share of the remaining shares subject to the Option adjusted
accordingly.

     13. MERGER OR CONSOLIDATION. After a merger of one or more corporations
         -----------------------
into the Company in which the Company shall survive, or after the consolidation
of the Company and one or more corporations, in which the resulting corporation
remains as an independent corporation, Optionee shall, at the same cost, be
entitled upon exercise of an Option to receive (subject to any required action
by shareholders) such securities of the surviving or resulting corporation as
the Board of Directors of such corporation, in its sole discretion, and without
liability to any person, shall determine to be equivalent, as nearly as
practicable to the nearest whole number and class of shares, to the shares, that
were then subject to such Option, and such shares, after such merger or
consolidation, shall be deemed to be shares of Common Stock for all purposes of
the 1998 Plan.

     14. VESTING OF RIGHTS UNDER OPTIONS. Neither anything contained in the 1998
         -------------------------------
Plan nor in any resolution adopted or to be adopted by the Board of Directors or
the shareholders of the Company shall constitute the vesting of any rights under
any Option. The vesting of such rights shall take place only when a written
option Agreement substantially in the form of the Option Agreement which is
attached to the 1998 Plan as Exhibit "A" shall be duly executed and delivered by
and on behalf of the Company and the employee to whom the option shall be
granted.

     15. RESTRICTIVE STOCK PURCHASE AGREEMENT. Concurrently with the exercise of
         ------------------------------------
an option, the optionee shall execute a Restrictive Stock Purchase Agreement
(the "Agreement") substantially in the form attached as Exhibit "B" to the 1998
Plan and incorporated herein by this reference. The purpose of the Restrictive
Stock Purchase Agreement is to provide the optionee with an opportunity to
dispose of his or her Common Stock upon the occurrence of certain events, to
provide that such Common Stock shall be transferable only upon compliance with
the terms and conditions of the Agreement and to provide for continuity of
operating, administrative and sales personnel of the Company to be derived from
the opportunity of share ownership.

                                       4
<PAGE>

     16. PREEMPTION BY APPLICABLE LAWS AND REGULATIONS. Anything in the 1998
         ---------------------------------------------
Plan or any agreement entered into pursuant to the 1998 Plan to the contrary
notwithstanding, if, at any time specified herein or therein for the making of
any determination or the issuance or other distribution of shares of Common
Stock, as the case may be, any law, regulation or requirement of any
governmental authority having jurisdiction shall require either the Company or
the Optionee (or the Optionee's beneficiary) , as the case may be, to take any
action in connection with such determination, the shares then to be issued or
distributed, or the making of such determination or payment, as the case may be,
shall be deferred until such action shall have been taken.

     17. NO RESTRICTION ON CORPORATE ACTION. Nothing contained in the 1998 Plan
         ----------------------------------
shall be construed to prevent the Company from taking any corporate action that
is deemed by the Board of Directors of the Company to be appropriate or in the
best interest of the Company, whether or not such action would have an adverse
effect on the 1998 Plan or any award made under the 1998 Plan. No Optionee,
beneficiary or other person shall have any claim against the Company as the
result of any such action.

     18. RESTRICTED SECURITIES. All Options and all shares issued pursuant to
         ---------------------
the 1998 Plan shall not be registered under the Federal Securities Laws or any
State Securities Laws, and the Option and all such shares shall be "Restricted
Securities" as defined in Rule 144 of the General Rules and Regulations of the
Securities Act of 1933, as amended (the "Act") and may not be offered for sale,
sold, or otherwise transferred except pursuant to an effective registration
statement under the Act or pursuant to an exemption from registration under the
Act. Accordingly, all certificates evidencing shares covered by an option shall
bear a restrictive legend to this effect.

     19. NON-ASSIGNABILITY. Neither an optionee nor an Optionee's beneficiary
         -----------------
shall have the power or right to sell, exchange, pledge, transfer, assign or
otherwise encumber or dispose of such Optionee's or beneficiary's interest
arising under the 1998 Plan; nor shall such interest be subject to seizure for
the payment of an Optionee's or beneficiary's debts, judgments, alimony or
separate maintenance or be transferable by operation of law in the event of an
Optionee's or beneficiary's bankruptcy or insolvency and to the extent any such
interest arising under the 1998 Plan is awarded to a spouse pursuant to any
marital dissolution proceeding, such interest shall be deemed to be terminated
and forfeited notwithstanding any vesting provisions or other terms herein or in
the agreement evidencing such award.

     20. APPLICATION OF FUNDS. The proceeds received from the sale of shares
         --------------------
pursuant to the 1998 Plan will be added to the working capital of the Company
and be available for general corporate purposes.

     21. AMENDMENT AND TERMINATION. The Board of Directors may from time to time
         -------------------------
and at any time suspend, discontinue or terminate the 1998 Plan and any awards
and grants hereunder. The Board of Directors may amend the 1998 Plan from time
to time in such respects as it may deem advisable.

                                       5
<PAGE>

     22. EFFECTIVE DATE. The 1998 Plan, having been adopted by the Board of
         --------------
Directors at a meeting duly held on April 22, 1998, shall be effective as of
such date, upon, and subject to, its approval by a majority in interest of the
Common Stock of the Company on or before the first anniversary of such date.
Unless renewed by the Board of Directors, the 1998 Plan shall terminate on April
21, 2008.

     23. GOVERNING LAW; CONSTRUCTION. All rights and obligations under the 1998
         ---------------------------
Plan shall be governed by, and the 1998 Plan shall be construed in accordance
with, the laws of the State of California without regard to the principles of
conflicts of laws.

     24. TITLES AND HEADINGS. Titles and headings herein are for purposes of
         -------------------
reference only, and shall in no way limit, define or otherwise affect the
meaning or interpretation of any provisions of the 1998 Plan.

                                       6
<PAGE>

                                   Exhibit "A"

                                OPTION AGREEMENT

                             DESKTALK SYSTEMS, INC.,
                            A CALIFORNIA CORPORATION
<PAGE>

                                TABLE OF CONTENTS
                                OPTION AGREEMENT

Paragraph                                                                 Page
---------                                                                 ----

1.   PURCHASE PRICE.....................................................     1

2.   EXERCISE OF OPTION.................................................     1

3.   METHOD OF EXERCISE.................................................     1

4.   TERMINATION OF EMPLOYMENT..........................................     1

5.   DEATH OR DISABILITY................................................     2

6.   ADJUSTMENTS TO CAPITALIZATION......................................     2

7.   MERGER OR CONSOLIDATION............................................     2

8.   VESTING OF RIGHTS..................................................     2

9.   NON-TRANSFERABILITY................................................     2

10.  NOTICES...........................................................      3

11.  INVESTMENT REPRESENTATION.........................................      3

12.  RESTRICTIVE STOCK PURCHASE AGREEMENT..............................      3

13.  INUREMENT.........................................................      4

14.  GOVERNING LAW......................................................     4

                                      (i)
<PAGE>

                             DESKTALK SYSTEMS, INC.
                                OPTION AGREEMENT

     This Agreement is made and entered into by and between DESKTALK SYSTEMS,
INC., a California corporation (the "Company"), with its principal office at
19401 South Vermont Avenue, Suite F100, Torrance, California 90502, and
__________________________________________(the "Optionee"), whose address is
___________________________________________, as of the _________day of
________________________, 19___, pursuant to the 1998 Incentive Stock Option
Plan of the Company (the "1998 Plan").

     As an incentive and an inducement to the Optionee to continue in the employ
of the Company, and to devote his or her best efforts to promote the success of
the Company, the Company hereby grants to the Optionee the option to purchase
from the Company, at the times and upon the terms and conditions hereinafter set
forth, an aggregate of shares of common stock (the "Shares") of the Company (the
"Option").

     1.  PURCHASE PRICE. Subject to the terms and conditions hereinafter set
         --------------
forth, the purchase price of the Shares shall be ______________ per share.

     2.  EXERCISE OF OPTION. The Option granted herein may be exercised at the
         ------------------
end of one year from the date hereof as to up to twenty-five percent (25%) of
the total Shares and at the end of the thirteenth month of employment and the
end of each subsequent month as to an additional 1/48 of the total Shares until
one hundred percent of the Option is exercisable, provided, however, that this
Option may not be exercised as to less than one hundred shares at any one time
(or the remaining shares then purchasable under the Option if less than one
hundred shares) and may not be exercised more than six years from the date of
grant, unless sooner terminated pursuant to the terms hereof.

     3.  METHOD OF EXERCISE. Subject to prior termination as provided in
         ------------------
Paragraphs 4 and 5 hereof, the Option shall be exercisable as set forth above by
giving ten days written notice of exercise to the Company, which notice shall
specify the number of Shares to be purchased and the purchase price to be paid
therefore, and concurrently making payment to the Company of such purchase price
by certified or bank cashier's check payable to the order of the Company. Upon
such exercise of the Option, the Company shall promptly issue the Shares so
purchased. Such notice of exercise shall be accompanied by the letter required
by Paragraph 11, below.

     4.  TERMINATION OF EMPLOYMENT. If the Optionee's services as an employee of
         -------------------------
the Company shall terminate at any time and for any reason, with or without
cause, the Option, together with all rights, privileges and obligations
hereunder, shall terminate forthwith; provided, however, that for one month
after such date of termination any unexercised portion of the Option which might
have been exercised at the date of such termination may be exercised, in the
manner provided in Paragraph 3 above. Notwithstanding the foregoing, no Option
may be exercised after six years from the date of its grant.

                                       1
<PAGE>

     5.  DEATH OR DISABILITY. If the optionee's services as an employee of the
         -------------------
Company shall terminate by reason of death or disability, the option, together
with all rights, privileges and obligations hereunder, shall terminate
forthwith; provided, however, that for three months after such date of
termination any unexercised portion of the Option which might have been
exercised at the date of such termination may be exercised, in the manner
provided in Paragraph 3 above, by the Optionee or the Optionee's executor or
administrators. Notwithstanding the foregoing, no option may be exercised after
six years from the date of its grant.

     6.  ADJUSTMENTS TO CAPITALIZATION. If at any time after the date hereof,
         -----------------------------
the Company shall, by stock dividend, stock split, reverse stock split,
combination, reclassification or exchange or through merger or consolidation, or
otherwise, change its shares of common stock into a different number or kind or
class of shares or other securities or property, the number of shares
purchasable upon exercise of the Option and the purchase price therefore shall
be proportionally adjusted by the Board of Directors pursuant to the 1998 Plan.

     7.  MERGER OR CONSOLIDATION. After a merger of one or more corporations
         -----------------------
into the Company in which the Company shall survive, or after the consolidation
of the Company and one or more corporations, in which the resulting corporation
remains as an independent corporation, Optionee shall, at the same cost, be
entitled upon exercise of an Option to receive (subject to any required action
by shareholders) such securities of the surviving or resulting corporation as
the Board of Directors of such corporation, in its sole discretion, and without
liability to any person, shall determine to be equivalent, as nearly as
practicable to the nearest whole number and class of shares, to the Shares, and
such shares, after such merger or consolidation, shall be deemed to be Shares
subject to the 1998 Plan.

     8.  VESTING OF RIGHTS. The Optionee (or any executor or administrator of
         -----------------
the optionee who may exercise the Option pursuant to this Agreement) shall not
be deemed to be a shareholder of the Company nor shall he or she have any rights
or privileges as a shareholder of the Company by virtue of the Option, and he or
she shall acquire such status, rights and privileges only when, as and to the
extent the Option is duly exercised in accordance with the terms hereof.

     9.  NON-TRANSFERABILITY. The Option and the rights and privileges conferred
         -------------------
hereby shall not be transferable other than by will or by the laws of descent
and distribution, and during the Optionee's lifetime shall be exercisable only
by the optionee.

                                       2
<PAGE>

     10. NOTICES. Any notice required to be given under the terms of this
         -------
Agreement, including any written notice of exercise given pursuant to Paragraph
3 hereof, shall be given by registered or certified mail, return receipt
requested. Any such notice shall be addressed, if to the Company, at its address
as set forth above, to the attention of its President, and if to the Optionee,
at his or her address as set forth above, or at such other address as either
party may hereafter designate by notice to the other.

     11. INVESTMENT REPRESENTATION. If the Shares have not been registered under
         -------------------------
the Securities Act of 1933, as amended (the "Act"), the exercise of any part or
all of the Option shall be conditioned upon delivery to the Company of a letter
from the Optionee addressed to the Company stating in substance (i) that the
Shares proposed to be acquired by the Optionee upon such exercise are being
acquired for his or her own account for investment and not with a view to sale
or distribution, and (ii) that the Optionee understands that the Shares acquired
must be held indefinitely unless they are subsequently registered under the Act,
or an exemption from such registration is available. In addition, in all cases,
the Optionee shall deliver to the Company prior to exercise of any part or all
of the Option Shares a letter to the Company stating in substance (i) that if
requested at any time by the Company or any representative of the underwriters
in connection with any registration of the offering of any securities of the
Company under the Securities Act of 1933, as amended (the "Securities Act"), the
Optionee agrees not to sell or otherwise dispose of, whether privately
negotiated or open market transactions, any shares of Common Stock or other
securities of the Company held by the Optionee during such period as the Company
and the representatives of the underwriters may request (not to exceed 180 days)
following the effective date of any registration statement of the Company filed
under the Securities Act for an underwritten public offering, and the Optionee
agrees that the Company may impose stop-transfer instructions with respect to
any securities of the Company subject to the foregoing restrictions until the
end of such market standoff period, and the Optionee shall enter into a 180 day
(or such lesser period as the representative of the underwriters may request)
market standoff agreement with the representative of the Company's underwriters
for each underwritten public offering by the Company.

     12. RESTRICTIVE STOCK PURCHASE AGREEMENT. Concurrently with the exercise of
         ------------------------------------
an Option, the Optionee shall execute a Restrictive Stock Purchase Agreement
(the "Agreement") substantially in the form attached as Exhibit "B" to the 1998
Plan and incorporated herein by this reference. The purpose of the Restrictive
Stock Purchase Agreement is to provide the Corporation with an opportunity to
acquire the Shares upon the occurrence of certain events, to provide that such
Shares shall be transferable only upon compliance with the terms and conditions
of the Agreement and to provide for continuity of operating, administrative and
sales personnel of the Company to be derived from the opportunity of share
ownership.

                                       3
<PAGE>

     13. INUREMENT. This Agreement shall be binding. upon and inure to the
         ---------
benefit of any successor or successors of the Company.

     14. GOVERNING LAW. This Agreement shall be interpreted under the laws of
         -------------
the State of California applicable to agreements entered into and to be
performed entirely within such state.

     IN WITNESS WHEREOF, this Agreement has been executed by a duly authorized
officer of the Company and by the Optionee as of the day and year set forth
below.

Dated: _________________________       DESKTALK SYSTEMS, INC.

                                       By_____________________________________
                                         David J. Kaufman, President

Dated: _________________________       NAME

                                       By______________________________________
                                         Optionee

                                       4
<PAGE>

                                   Exhibit "B"

                      RESTRICTIVE STOCK PURCHASE AGREEMENT
                                 BY AND BETWEEN

                             DESKTALK SYSTEMS, INC.,
                            A CALIFORNIA CORPORATION

                                       AND

            _________________________________________________________

                               Stock Option Issuee
<PAGE>

                                TABLE OF CONTENTS
                      RESTRICTIVE STOCK PURCHASE AGREEMENT

  Paragraph                                                               Page
  ---------                                                               ----

  1.     RESTRICTION ON SUBJECT STOCK..................................      1

  2.     INTER VIVOS TRANSFERS.........................................      2

  3.     PURCHASE ON TERMINATION.......................................      3

  4.     PURCHASE PRICE................................................      4

  5.     LEGEND CONDITION; CERTIFICATES................................      4

  6.     CONTINUED EMPLOYMENT..........................................      5

  7.     TERMINATION...................................................      5

  8.     INVESTMENT REPRESENTATION.....................................      5

  9.     GOVERNING LAW; SUCCESSORS.....................................      5

  10.    ENFORCEMENT...................................................      6

  11.    ARBITRATION...................................................      6

  12.    SEVERABILITY..................................................      6

  13.    ATTORNEYS' FEES...............................................      6

  14.    PARAGRAPH HEADINGS............................................      6

  15.    NOTICES.......................................................      7

  16.    ENTIRE AGREEMENT..............................................      7

  17.    REPRESENTATION OF COUNSEL.....................................      8

  18.    EFFECTIVE DATE................................................      8

                                       (i)
<PAGE>

                                   Exhibit "B"

                      RESTRICTIVE STOCK PURCHASE AGREEMENT

THIS AGREEMENT (the "Agreement") is made as of _________________, 19_____, by
and between DESKTALK SYSTEMS, INC., a California corporation (the "Company"),
located at 19401 South Vermont Avenue, Suite F100, Torrance, California 90502
and ________________________________________ (the "Purchaser"), with reference
to the following facts:

     A.  The Company is a corporation engaged in the business of producing and
distributing computer network management software;

     B.  The authorized capitalization of the Company consists of 20,000,000
shares of common stock (the "Common Stock") and 4,000,000 shares of preferred
stock (the "Preferred Stock";

     C.  The Purchaser has been engaged as a key employee of the Company, and
in connection with such  employment the Company  granted  Purchaser an option to
purchase_______________(___)  shares of Common Stock (the "Option")  pursuant to
its 1998 Incentive Stock Option Plan, and evidenced by an Option Agreement dated
_____________________, 19_______(the "Option Agreement");

     D.  The Purchaser has exercised the Option with respect to
___________________ (_____) shares of Common Stock (the "Subject Stock") for
_____________________($_____________) per share, pursuant to the terms of the
Option Agreement, and the Company proposes to issue the Subject Stock, subject
to the terms of this Agreement; and

     E.  Concurrently with such sale and issuance, the Company and the Purchaser
are entering into this Agreement (i) to provide for the disposition of the
Subject Stock upon the occurrence of certain events, (ii) to provide the Subject
Stock shall be transferable by the Purchaser only upon compliance with the terms
and conditions of this Agreement and (iii) to provide for continuity of
operating, administrative and sales personnel of the Company through equity
ownership of the Company.

NOW THEREFORE, in consideration of the mutual covenants herein contained, it is
agreed as follows:

     1.  RESTRICTION ON SUBJECT STOCK. The Purchaser shall not have the right or
         ----------------------------
power either voluntarily or involuntarily (by operation of law or otherwise) to
sell, assign, transfer, pledge, hypothecate, or in any way encumber any shares
of the Subject Stock, or any legal or economic interest therein without the
prior written consent of the Company except in accordance with this Agreement.
In the event the Subject Stock is transferred in violation of this Paragraph,
the transfer shall be null and void.

                                       1
<PAGE>

         1.1   If the Purchaser desires to sell all or any part of the Subject
Stock in a bona fide transaction during his lifetime, he shall give written
notice thereof to the Company. The notice shall name the proposed transferee and
specify the number of shares sought to be sold, the price offered per share, the
terms of payment and any other material terms or conditions of the sale,
including a written copy of the proposed offer to purchase.

         1.2   The Company shall have an option to purchase all or any part of
the Subject Stock the Purchaser desires to sell at the price and upon the terms
specified in the notice. The Company shall have thirty (30) days after the
receipt of such written notice to exercise its option. It shall exercise the
option by giving notice of such exercise to the Purchaser and by paying the
purchase price in the same manner as provided in the purchase offer.

         1.3   If the Company does not exercise the option provided for in this
Paragraph 1 as to all of the shares offered for sale by the Purchaser, the
Purchaser shall be entitled to sell the Subject Stock not purchased free of any
restrictions. He shall be entitled to surrender to the Company his Certificates
representing such unpurchased shares and to receive in lieu thereof new
Certificates for an equal number of shares, without the endorsement provided for
in Paragraph 5.1 hereof. Thereupon, the Purchaser shall cease to be a party to
this Agreement.

         1.4   If the offer from a proposed buyer for all or any part of the
Subject Stock states a consideration other than cash or evidences of
indebtedness, then for the purpose of determining the price stated in the offer,
the value of such other consideration shall be the fair market value of such
consideration either as agreed upon by the Purchaser and the Company within
twenty (20) days after the date of the notice or, if such agreement is not
reached, then as determined by arbitration pursuant to the procedure set forth
in Paragraph 11 hereof, and the parties shall be bound by the valuation so
determined.

     2.  INTER VIVOS TRANSFERS. Notwithstanding any provisions to the contrary
         ---------------------
contained in this Agreement, the Purchaser, while he or she is living, may at
any time transfer any or all of his or her interest in the fully paid Subject
Stock to his or her spouse, descendants, spouses of any such descendants, or the
trustee(s) of trust(s) at any time established by the Purchaser for the sole
benefit of one or more of such persons (hereinafter collectively called "Family
Members"). In such event, the Family Member shall hold the interest involved
subject to all of the terms of this Agreement and, upon demand made at any time
by any of the parties to this Agreement, shall execute an appropriate instrument
to that effect. All actions hereunder taken or omitted by the Purchaser
hereunder shall be binding on such Family Member. Any obligations of the
Purchaser hereunder shall be obligations of such Family Member. The Purchaser
and Family Members of the Purchaser shall be deemed one and the same indivisible
unit, and all interest transferred as permitted by this Paragraph

                                       2
<PAGE>

shall be still deemed to be held and owned by the Purchaser for the purpose of
this Agreement.

     3.  PURCHASE ON TERMINATION.
         -----------------------

         3.1   If the Purchaser

               (i)      dies;

               (ii)     becomes disabled (as hereinafter defined);

               (iii)    has his employment by the Company terminated with or
                        without cause;

               (iv)     voluntarily terminates his employment with the Company;

               (v)      obtains or becomes subject to an order for relief under
                        the United States Bankruptcy Code, or a similar law in
                        other jurisdictions;

               (vi)     makes an assignment for the benefit of his or her
                        creditors;

               (vii)    is subject to legal process which shall permit the
                        taking of any shares of the Subject Stock including,
                        without limitation, division of the Subject Stock with
                        a spouse in a marital dissolution  proceeding (all of
                        the foregoing being defined as a "Triggering Event");

the Company shall have the right to purchase from the Purchaser (or his or her
estate, successors, assigns, executor, administrator or personal representative
or trustees of intervivos trusts referred to in Paragraph 2 hereof, hereinafter
collectively referred to as "personal representative") , and the Purchaser (or
his or her personal representative) shall sell to the Company, all of the
Subject Stock at the purchase price and on the terms and conditions hereinafter
set forth.

         3.2   The closing for the purchase and sale (the "Closing"), if the
company exercises its right to acquire the subject stock, shall take place at
the office of the Company in Torrance, California within ninety (90) days after
the Company becomes aware of the Triggering Event; provided, however, if such
Triggering Event is occasioned by the death of the Purchaser, the Closing shall
take place within ninety (90) days after the later of (i) the qualification of
the personal representative of the Purchaser or (ii) the Company becoming aware
of the Triggering Event. The Company shall give the Purchaser, or his or her

                                        3
<PAGE>

personal representative, and the Escrow Agent (as hereinafter defined) at least
ten (10) days prior notice of the time, date and place of Closing. At the
Closing, the Company shall remit the purchase price (as hereinafter defined) in
the manner set forth in Paragraph 4 hereof.

         3.3   The term "disability", as used herein, shall mean such mental or
physical incapacity which prevents the Purchaser from thereafter performing his
normal and customary services for the Company. The determination of whether such
disability exists shall be made by the Company, in its sole discretion, and the
determination of the Company shall be final and binding upon the Purchaser and
his or her personal representative, if any.

         3.4   The restrictions on transferability of the Subject Stock shall
lapse as to any shares of the Subject Stock not acquired by the Company pursuant
to this Agreement upon the occurrence of a Triggering Event.

     4.  PURCHASE PRICE. The purchase price to be paid by the Company for each
         --------------
share of the Subject Stock shall be determined by first computing one hundred
percent (100%) of the fair market value of the Company, as of the end of the
last fiscal quarter prior to the Triggering Event. The fair market value as so
determined shall then be divided by the number of shares of Common Stock then
outstanding and the quotient multiplied by the number of shares of the Subject
Stock owned by the Purchaser. The determination of fair market value shall be
made by the Board of Directors after consideration of the earnings history, book
value, and prospects of the Company in light of market conditions generally. All
values fixed by the Board of Directors shall be conclusive, final and binding
upon (i) the Company and its successors and assigns and (ii) the Purchaser and
the personal representative of Purchaser. Any lien or encumbrance on the Subject
Stock as of the Closing shall reduce the purchase price by an amount equal to
the value of any and all such liens and encumbrances. The purchase price to be
paid by the Company for the Subject Stock shall be paid to the Purchaser (or his
or her personal representative) by cashier's or certified check at the Closing.

     5.  LEGEND CONDITION; CERTIFICATES.
         ------------------------------

         5.1   Each stock certificate now or hereafter issued to the Purchaser
evidencing the Subject Stock shall be endorsed as follows:

         "This stock certificate and the rights represented hereby are subject
         to all of the terms, covenants, conditions and limitations of a certain
         agreement made and entered into by __________________________________
         with DESKTALK SYSTEMS, INC. , dated as of ____________________ (the
         "Agreement"), a copy of which is on file with the Secretary of the
         aforesaid Company, and the holder of this certificate accepts and
         agrees to be bound by the Agreement."

                                       4
<PAGE>

         5.2   If the Purchaser is a California resident at the date of this
Agreement, then this Agreement shall be executed by the Purchaser and his or her
spouse, if any. If the Purchaser becomes a California resident at any time after
the date of this Agreement, his or her spouse shall promptly execute such an
acknowledgment.

         5.3   Each stock certificate now or hereafter issued to the Purchaser
evidencing any shares of the Subject Stock shall bear any legend required by the
California Department of corporations or any other governmental agency with
respect to the issuance and transfer of the Subject Stock.

         5.4   Each stock certificate now or hereafter issued to the Purchaser
evidencing any shares of the Subject Stock shall be endorsed as follows:

         "The shares represented by this certificate have not been registered
         under the Securities Act of 1933, as amended, and are being issued
         pursuant to an exemption that limits their disposition and the
         transfer of such shares is therefore subject to those limitations."

     6.  CONTINUED EMPLOYMENT. Nothing in this Agreement shall confer upon the
         --------------------
Purchaser any right to continue in the employ of or to consult for the Company
or shall affect any right of the Company to terminate the employment of
Purchaser as would exist in the absence of this Agreement.

     7.  TERMINATION. All restrictions under this Agreement shall continue until
         -----------
thirty (30) days after the Common Stock has been listed for trading on a United
States national securities exchange or has been trading in the over-the-counter
market for at least three months on the National Association of Security Dealers
Automated Quotation System. Thereafter this Agreement shall be of no further
force or effect.

     8.  INVESTMENT REPRESENTATION. The Purchaser represents that he or she is
         -------------------------
purchasing the Subject Stock for his or her own account for investment purposes
only and not with a view to the distribution thereof, and that he or she will
not dispose of the Subject Stock in violation of the federal securities laws of
the United States, or the State of California, or the jurisdiction where he or
she resides.

     9.  GOVERNING LAW; SUCCESSORS. The execution, delivery, effectiveness and
         -------------------------
performance of this Agreement shall be governed by and construed under the local
laws of the State of California.

                                        5
<PAGE>

This Agreement shall be binding upon and inure to the benefit of the parties
hereto, and their respective heirs, representatives, executors, administrators,
successors and assigns, and the Purchaser, by signing this Agreement, directs
his or her personal representative to open his or her estate promptly in the
courts of proper jurisdiction and to procure, execute and deliver all documents,
including, but not limited to, appropriate orders of the Superior Court, Probate
Division (or court of comparable jurisdiction), and estate and inheritance tax
waivers, as shall be required to effectuate the purposes of this Agreement.

     10. ENFORCEMENT. The Purchaser acknowledges that it will be impossible to
         -----------
measure in money the damage to the Company if the Purchaser fails to comply with
any of the restrictions or obligations herein imposed upon the transfer,
encumbrance or other disposition of the Subject Stock, that such restrictions
and obligations are material, and that in the event of any such failure, the
Company will not have an adequate remedy at law or in damages. Therefore, the
Purchaser hereby consents to the issuance of an injunction or the enforcement of
the equitable remedies against him or her upon the filing of an action by an
aggrieved party without bond or other security, to compel performance of the
terms hereof, and waives any defenses thereto, including, without limiting the
generality of the foregoing, the defenses of (a) failure of consideration, (b)
breach of any other provision of this Agreement, and (c) availability of relief
in damages. The foregoing provisions shall not limit any other remedies which
the aggrieved party may have at law or in equity in connection with any breach,
interpretation or nonperformance hereof.

     11. ARBITRATION. Subject to Paragraph 10 hereof, any controversy or claim
         -----------
arising out of or relating to this Agreement, or the breach thereof, shall be
settled by binding arbitration in the City of Los Angeles, in accordance with
the then current rules of the American Arbitration Association, and judgment
upon the award rendered by the arbitrator(s) may entered in any court having
jurisdiction thereof.

     12. SEVERABILITY. In the event any provision or provisions of this
         ------------
Agreement are for any reason adjudged to be indefinite, invalid or otherwise
unenforceable, such provision or provisions shall to such extent be severed and
disregarded, and the remaining provisions hereof shall subsist and be carried
into effect.

     13. ATTORNEYS' FEES. In the event any action, suit or proceeding is
         ---------------
instituted under or in connection with this Agreement by any party hereto
against any party hereto, the unsuccessful party therein agrees to pay the other
party therein such attorneys' fees as the Court or board of arbitration assuming
jurisdiction may adjudge reasonable in such action, suit or proceeding.

     14. PARAGRAPH HEADINGS. The headings of the paragraphs of this Agreement
         ------------------
are inserted solely for convenience and are not a part of and are not intended
to govern, limit or aid in the construction of any term or provision hereof.

                                        6
<PAGE>

     15. NOTICES.
         -------

         15.1  All notices hereunder to the Purchaser shall be sent to the
Purchaser at his or her address hereinabove set forth or at such other address
as the Purchaser may designate by written notice sent to the Company at its
office in Torrance, California, addressed to the attention of Paul Madick,
General Counsel.

         15.2  All notices to the Company hereunder shall be sent to its offices
in Torrance, California at the address hereinabove set forth, addressed to the
attention of Paul Madick, General Counsel.

         15.3  All notices shall be in writing and shall be deemed to have been
given on the date of service if served personally on the party to whom
addressed; or if mailed within the United States within seventy-two (72) hours
after mailing, if sent by first-class mail, registered or certified, return
receipt requested, postage prepaid.

         15.4  Any address set forth in this Agreement may be changed by any
party giving notice of such change to the other parties hereto in the manner
provided above.

     16. ENTIRE AGREEMENT. Except for the Option Agreement, this Agreement is
         ----------------
the entire agreement between the parties with respect to the subject matter
hereof, and supersedes all prior agreements, arrangements and understandings
related to the subject matter hereof. This Agreement may be amended,
supplemented or discharged, and any provision hereof may be modified or waived
only by a written agreement executed by all of the parties hereto.

                                        7
<PAGE>

     17. REPRESENTATION OF COUNSEL. The Purchaser acknowledges that Paul Madick,
         -------------------------
is counsel for the Company and does not represent the individual interest of the
Purchaser in this matter. The Purchaser acknowledges that he or she has been
advised, and has been given the opportunity, to seek independent counsel to
advise him or her on' both the form and substance of this Agreement.

     18. EFFECTIVE DATE. This Agreement shall be effective as of the date it
         --------------
becomes fully executed by the parties hereto.

     IN WITNESS WHEREOF, the parties hereinbefore duly authorized have executed
this Agreement the day and year set forth opposite their respective signatures.

__________________________________          ______________________________
Purchaser                                   Date

DESKTALK SYSTEMS, INC.

By________________________________          ______________________________
David J. Kaufman, President                 Date

                                        8
<PAGE>

     This is Page 9 of a Restrictive Stock Purchase Agreement by and between
DeskTalk Systems, Inc., and the spouse of the undersigned.

     I acknowledge that I have read and know and understand the contents of the
Restrictive Stock Purchase Agreement between my spouse and DeskTalk Systems,
Inc. (the "Company") , and hereby agree to be bound by its terms and provisions.
I am aware that by the provisions of the Agreement my spouse agrees to sell to
the Company shares of common stock upon the terms and conditions contained
therein, including my community, quasi-community, or similar interest in such
shares, and I agree that I will not bequeath such shares or any of them or any
interest therein by my Will if I should predecease my spouse. I direct that the
residuary clause in my Will shall not be deemed to apply to my community,
quasicommunity, or similar interest, if any, in such shares. I consent to have
the terms and conditions of the Agreement specifically enforced against my
estate if the executor of my estate shall fail to abide by such provisions and
my desires herein expressed.

Date:_____________________________

                                       ________________________________________

                                        9

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