Document:

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                                                                     Exhibit 4.6

                              CIRRUS LOGIC, INC.

                                1996 STOCK PLAN
                                ---------------

                  (Amended and Restated as of July 25, 2001)

     1.  Purposes of the Plan.  The purposes of this Stock Plan are:
         --------------------

         . to attract and retain the best available personnel for positions of
           substantial responsibility,

         . to provide additional incentive to Employees and Consultants, and

         . to promote the success of the Company's business.

     Options granted under the Plan may be Incentive Stock Options or
Nonstatutory Stock Options, as determined by the Administrator at the time of
grant.  Stock Purchase Rights may also be granted under the Plan.

     2.   Definitions.  As used herein, the following definitions shall apply:
          -----------

          (a)  "Administrator" means the Board or any of its Committees as shall
                -------------
be administering the Plan, in accordance with Section 4 of the Plan.

          (b)  "Applicable Laws" means the legal requirements relating to the
                ---------------
administration of stock option plans under U.S. state corporate laws, U.S.
federal and state securities laws, the Code and the applicable laws of any
foreign country or jurisdiction where Options or Stock Purchase Rights will be
or are being granted under the Plan.

          (c)  "Board" means the Board of Directors of the Company.
                -----

          (d)  "Code" means the Internal Revenue Code of 1986, as amended.
                ----

          (e)  "Committee"  means a Committee appointed by the Board in
                ---------
accordance with Section 4 of the Plan.

          (f)  "Common Stock" means the Common Stock of the Company.
                ------------

          (g)  "Company" means Cirrus Logic, Inc., a Delaware corporation.
                -------

          (h)  "Consultant" means any person, including an advisor, engaged by
                ----------
the Company or a Parent or Subsidiary to render services and who is compensated
for such services.
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The term "Consultant" shall not include Directors who are paid only a director's
fee by the Company or who are not compensated by the Company for their services
as Directors.

          (i)  "Continuous Status as an Employee or Consultant" means that the
                ----------------------------------------------
employment or consulting relationship with the Company, any Parent, or
Subsidiary, is not interrupted or terminated.  Continuous Status as an Employee
or Consultant shall not be considered interrupted in the case of (i) any leave
of absence approved by the Company or (ii) transfers between locations of the
Company or between the Company, its Parent, any Subsidiary, or any successor.  A
leave of absence approved by the Company shall include sick leave, military
leave, or any other personal leave approved by an authorized representative of
the Company.  For purposes of Incentive Stock Options, no such leave may exceed
ninety days, unless reemployment upon expiration of such leave is guaranteed by
statute or contract.  If reemployment upon expiration of a leave of absence
approved by the Company is not so guaranteed, on the 181st day of such leave any
Incentive Stock Option held by the Optionee shall cease to be treated as an
Incentive Stock Option and shall be treated for tax purposes as a Nonstatutory
Stock Option.

          (j)  "Director" means a member of the Board.
                --------

          (k)  "Disability" means total and permanent disability as defined in
                ----------
Section 22(e)(3) of the Code.

          (l)  "Employee" means any person, including Officers and Directors,
                --------
employed by the Company or any Parent or Subsidiary of the Company.  Neither
service as a Director nor payment of a director's fee by the Company shall be
sufficient to constitute "employment" by the Company.

          (m)  "Exchange Act" means the Securities Exchange Act of 1934, as
                ------------
amended.

          (n)  "Fair Market Value" means, as of any date, the value of Common
                -----------------
Stock determined as follows:

          (i)    If the Common Stock is listed on any established stock exchange
or a national market system, including without limitation the Nasdaq National
Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its Fair Market
Value shall be the closing sales price for such stock (or the closing bid, if no
sales were reported) as quoted on such exchange or system for the last market
trading day prior to the time of determination, as reported in The Wall Street
Journal or such other source as the Administrator deems reliable;

          (ii)   If the Common Stock is regularly quoted by a recognized
securities dealer but selling prices are not reported, the Fair Market Value of
a Share of Common Stock shall be the mean between the high bid and low asked
prices for the Common Stock on the last market trading day prior to the day of
determination, as reported in The Wall Street Journal or such other source as
the Administrator deems reliable;

          (iii)  In the absence of an established market for the Common Stock,
the Fair Market Value shall be determined in good faith by the Administrator.

                                      -2-
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          (o)  "Incentive Stock Option" means an Option intended to qualify as
                ----------------------
an incentive stock option within the meaning of Section 422 of the Code and the
regulations promulgated thereunder.

          (p)  "Nonstatutory Stock Option" means an Option not intended to
                -------------------------
qualify as an Incentive Stock Option.

          (q)  "Notice of Grant" means a written notice evidencing certain terms
                ---------------
and conditions of an individual Option or Stock Purchase Right grant.  The
Notice of Grant is part of the Option Agreement.

          (r)  "Officer" means a person who is an officer of the Company within
                -------
the meaning of Section 16 of the Exchange Act and the rules and regulations
promulgated thereunder.

          (s)  "Option" means a stock option granted pursuant to the Plan.
                ------

          (t)  "Option Agreement" means a written agreement between the Company
                ----------------
and an Optionee evidencing the terms and conditions of an individual Option
grant.  The Option Agreement is subject to the terms and conditions of the Plan.

          (u)  "Optioned Stock" means the Common Stock subject to an Option or
                --------------
Stock Purchase Right.

          (v)  "Optionee" means an Employee or Consultant who holds an
                --------
outstanding Option or Stock Purchase Right.

          (w)  "Parent" means a "parent corporation," whether now or hereafter
                ------
existing, as defined in Section 424(e) of the Code.

          (x)  "Plan" means this 1996 Stock Option Plan.
                ----

          (y)  "Restricted Stock" means shares of Common Stock acquired pursuant
                ----------------
to a grant of Stock Purchase Rights under Section 11 below.

          (z)  "Restricted Stock Purchase Agreement" means a written agreement
                -----------------------------------
between the Company and the Optionee evidencing the terms and restrictions
applying to stock purchased under a Stock Purchase Right.  The Restricted Stock
Purchase Agreement is subject to the terms and conditions of the Plan and the
Notice of Grant.

          (aa) "Rule 16b-3" means Rule 16b-3 of the Exchange Act or any
                ----------
successor to Rule 16b-3, as in effect when discretion is being exercised with
respect to the Plan.

          (bb) "Section 16(b)" means Section 16(b) of the Securities Exchange
                -------------
Act of 1934, as amended.

          (cc) "Share" means a share of the Common Stock, as adjusted in
                -----
accordance with Section 13 of the Plan.

                                      -3-
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          (dd) "Stock Purchase Right" means the right to purchase Common Stock
                --------------------
pursuant to Section 11 of the Plan, as evidenced by a Notice of Grant.

          (ee) "Subsidiary" means a "subsidiary corporation," whether now or
                ----------
hereafter existing, as defined in Section 424(f) of the Code.

     3.   Stock Subject to the Plan.  Subject to the provisions of Section 13 of
          -------------------------
the Plan, the maximum aggregate number of Shares which may be optioned and sold
under the Plan is 15,300,000 Shares.  Such authorized share reserve includes the
2,500,000 shares initially reserved under the Plan authorized by the Board May
21, 1996 and approved by the stockholders August 1, 1996, plus (i) an increase
of an additional 2,000,000 shares, of which 1,000,000 shares were authorized by
the Board March 19, 1997 and 1,000,000 shares were authorized by the Board May
28, 1997, and which increases were approved by the stockholders July 31, 1997
(the "1997 Increase"), (ii) an increase of an additional 2,000,000 shares
authorized by the Board April 1, 1998 and approved by the stockholders July 21,
1998 (the "1998 Increase"), (iii) an increase of an additional 2,000,000 shares
authorized by the Board April 1, 1999 and approved by the stockholders July 29,
1999 (the "1999 Increase"), (iv) an increase of an additional 3,500,000 shares
authorized by the Board July 27, 2000 and approved by the stockholders September
28, 2000 (the "2000 Increase"), and (v) an increase of an additional 3,300,000
shares authorized by the Board April 25, 2001 and approved by the stockholders
July 25, 2001 (the "2001 Increase").  The Shares may be authorized, but
unissued, or reacquired Common Stock.

          If an Option or Stock Purchase Right expires or becomes unexercisable
without having been exercised in full, the unpurchased Shares which were subject
thereto shall become available for future grant or sale under the Plan (unless
the Plan has terminated); provided, however, that Shares that have actually been
issued under the Plan, whether upon exercise of an Option or Stock Purchase
Right, shall not be returned to the Plan and shall not become available for
future distribution under the Plan, except that if Shares of Restricted Stock
are repurchased by the Company at their original purchase price, and the
original purchaser of such Shares did not receive any benefits of ownership of
such Shares, such Shares shall become available for future grant under the Plan.
For purposes of the preceding sentence, voting rights shall not be considered a
benefit of Share ownership.

     4.   Administration of the Plan.
          --------------------------

          (a)  Procedure.
               ---------

               (i)    Multiple Administrative Bodies. If permitted by Rule 16b-
                      ------------------------------
3, the Plan may be administered by different bodies with respect to Directors,
Officers who are not Directors, and Employees who are neither Directors nor
Officers.

               (ii)   Administration With Respect to Directors and Officers
                      -----------------------------------------------------
Subject to Section 16(b). With respect to Option or Stock Purchase Right grants
------------------------
made to Employees who are also Officers or Directors subject to Section 16(b) of
the Exchange Act, the Plan shall be administered by (A) the Board, if the Board
may administer the Plan in a manner complying with the rules under Rule 16b-3
relating to the disinterested administration of employee benefit plans under

                                      -4-
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which Section 16(b) exempt discretionary grants and awards of equity securities
are to be made, or (B) a committee designated by the Board to administer the
Plan, which committee shall be constituted to comply with the rules under Rule
16b-3 relating to the disinterested administration of employee benefit plans
under which Section 16(b) exempt discretionary grants and awards of equity
securities are to be made. Once appointed, such Committee shall continue to
serve in its designated capacity until otherwise directed by the Board. From
time to time the Board may increase the size of the Committee and appoint
additional members, remove members (with or without cause) and substitute new
members, fill vacancies (however caused), and remove all members of the
Committee and thereafter directly administer the Plan, all to the extent
permitted by the rules under Rule 16b-3 relating to the disinterested
administration of employee benefit plans under which Section 16(b) exempt
discretionary grants and awards of equity securities are to be made.

               (iii)  Administration With Respect to Other Persons. With respect
                      --------------------------------------------
to Option or Stock Purchase Right grants made to Employees or Consultants who
are neither Directors nor Officers of the Company, the Plan shall be
administered by (A) the Board or (B) a committee designated by the Board, which
committee shall be constituted to satisfy Applicable Laws. Once appointed, such
Committee shall serve in its designated capacity until otherwise directed by the
Board. The Board may increase the size of the Committee and appoint additional
members, remove members (with or without cause) and substitute new members, fill
vacancies (however caused), and remove all members of the Committee and
thereafter directly administer the Plan, all to the extent permitted by
Applicable Laws.

          (b)  Powers of the Administrator.  Subject to the provisions of the
               ---------------------------
Plan, and in the case of a Committee, subject to the specific duties delegated
by the Board to such Committee, the Administrator shall have the authority, in
its discretion:

               (i)    to determine the Fair Market Value of the Common Stock, in
accordance with Section 2(n) of the Plan;

               (ii)   to select the Consultants and Employees to whom Options
and Stock Purchase Rights may be granted hereunder;

               (iii)  to determine whether and to what extent Options and Stock
Purchase Rights or any combination thereof, are granted hereunder;

               (iv)   to determine the number of shares of Common Stock to be
covered by each Option and Stock Purchase Right granted hereunder;

               (v)    to approve forms of agreement for use under the Plan;

               (vi)   to determine the terms and conditions, not inconsistent
with the terms of the Plan, of any award granted hereunder. Such terms and
conditions include, but are not limited to, the exercise price, the time or
times when Options or Stock Purchase Rights may be exercised (which may be based
on performance criteria), any vesting acceleration or waiver of forfeiture
restrictions, and any restriction or limitation regarding any Option or Stock
Purchase Right or the

                                      -5-
<PAGE>

shares of Common Stock relating thereto, based in each case on such factors as
the Administrator, in its sole discretion, shall determine;

               (vii)  to construe and interpret the terms of the Plan and awards
granted pursuant to the Plan;

               (viii) to prescribe, amend and rescind rules and regulations
relating to the Plan, including rules and regulations relating to sub-plans
established for the purpose of qualifying for preferred tax treatment under
foreign tax laws;

               (ix)   to modify or amend each Option or Stock Purchase Right
(subject to Section 15(c) of the Plan), including the discretionary authority to
extend the post-termination exercisability period of Options longer than is
otherwise provided for in the Plan;

               (x)    to authorize any person to execute on behalf of the
Company any instrument required to effect the grant of an Option or Stock
Purchase Right previously granted by the Administrator;

               (xi)   to determine the terms and restrictions applicable to
Options and Stock Purchase Rights and any Restricted Stock; and

               (xii)  to make all other determinations deemed necessary or
advisable for administering the Plan.

          (c)  Effect of Administrator's Decision.  The Administrator's
               ----------------------------------
decisions, determinations and interpretations shall be final and binding on all
Optionees and any other holders of Options or Stock Purchase Rights.

     5.   Eligibility.  Nonstatutory Stock Options and Stock Purchase Rights may
          -----------
be granted to Employees and Consultants.  Incentive Stock Options may be granted
only to Employees.  If otherwise eligible, an Employee or Consultant who has
been granted an Option or Stock Purchase Right may be granted additional Options
or Stock Purchase Rights.

     6.   Limitations.
          -----------

          (a)  Each Option shall be designated in the written option agreement
as either an Incentive Stock Option or a Nonstatutory Stock Option. However,
notwithstanding such designation, to the extent that the aggregate Fair Market
Value of the Shares with respect to which Incentive Stock Options are
exercisable for the first time by the Optionee during any calendar year (under
all plans of the Company and any Parent or Subsidiary) exceeds $100,000, such
Options shall be treated as Nonstatutory Stock Options.

          (b)  Neither the Plan nor any Option or Stock Purchase Right shall
confer upon an Optionee any right with respect to continuing the Optionee's
employment or consulting relationship with the Company, nor shall they interfere
in any way with the Optionee's right or the Company's right to terminate such
employment or consulting relationship at any time, with or without cause.

                                      -6-
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          (c)  The following limitations shall apply to grants of Options to
Employees:

               (i)    No Employee shall be granted, in any fiscal year of the
Company, Options to purchase more than 400,000 Shares.

               (ii)   In connection with his or her initial employment, an
Employee may be granted Options to purchase up to an additional 800,000 Shares
which shall not count against the limit set forth in subsection (i) above.

               (iii)  The foregoing limitations shall be adjusted
proportionately in connection with any change in the Company's capitalization as
described in Section 13.

               (iv)   If an Option is cancelled in the same fiscal year of the
Company in which it was granted (other than in connection with a transaction
described in Section 13), the cancelled Option will be counted against the
limits set forth in subsections (i) and (ii) above.

     7.   Term of Plan.  Subject to Section 19 of the Plan, the Plan shall
          ------------
become effective upon the earlier to occur of its adoption by the Board or its
approval by the stockholders of the Company as described in Section 19 of the
Plan.  It shall continue in effect for a term of ten (10) years unless
terminated earlier under Section 15 of the Plan.

     8.   Term of Option.  The term of each Option shall be stated in the Notice
          --------------
of Grant; provided, however, that in the case of an Incentive Stock Option, the
          --------
term shall be ten (10) years from the date of grant or such shorter term as may
be provided in the Notice of Grant.

     9.   Option Exercise Price and Consideration.
          ---------------------------------------

          (a)  Exercise Price. The per share exercise price for the Shares to be
               --------------
issued pursuant to exercise of an Option shall be no less than 100% of the Fair
Market Value per Share on the date of grant.

          (b)  Waiting Period and Exercise Dates.  At the time an Option is
               ---------------------------------
granted, the Administrator shall fix the period within which the Option may be
exercised and shall determine any conditions which must be satisfied before the
Option may be exercised. In so doing, the Administrator may specify that an
Option may not be exercised until either the completion of a service period or
the achievement of performance criteria with respect to the Company or the
Optionee.

          (c)  Form of Consideration.  The Administrator shall determine the
               ---------------------
acceptable form of consideration for exercising an Option, including the method
of payment. In the case of an Incentive Stock Option, the Administrator shall
determine the acceptable form of consideration at the time of grant.  Such
consideration may consist entirely of:

               (i)    cash;

               (ii)   check;

                                      -7-
<PAGE>

               (iii)  promissory note;

               (iv)   other Shares which (A) in the case of Shares acquired upon
exercise of an option, have been owned by the Optionee for more than six months
on the date of surrender, and (B) have a Fair Market Value on the date of
surrender equal to the aggregate exercise price of the Shares as to which said
Option shall be exercised;

               (v)    delivery of a properly executed exercise notice together
with such other documentation as the Administrator and the broker, if
applicable, shall require to effect an exercise of the Option and delivery to
the Company of the sale or loan proceeds required to pay the exercise price;

               (vi)   a reduction in the amount of any Company liability to the
Optionee, including any liability attributable to the Optionee's participation
in any Company-sponsored deferred compensation program or arrangement;

               (vii)  any combination of the foregoing methods of payment; or

               (viii) such other consideration and method of payment for the
issuance of Shares to the extent permitted by Applicable Laws.

     10.  Exercise of Option.
          ------------------

          (a)  Procedure for Exercise; Rights as a Shareholder.  Any Option
               -----------------------------------------------
granted hereunder shall be exercisable according to the terms of the Plan and at
such times and under such conditions as determined by the Administrator and set
forth in the Option Agreement.

               (i)    An Option may not be exercised for a fraction of a Share.

               (ii)   An Option shall be deemed exercised when the Company
receives: (i) written notice of exercise (in accordance with the Option
Agreement) from the person entitled to exercise the Option, and (ii) full
payment for the Shares with respect to which the Option is exercised. Full
payment may consist of any consideration and method of payment authorized by the
Administrator and permitted by the Option Agreement and the Plan. Shares issued
upon exercise of an Option shall be issued in the name of the Optionee or, if
requested by the Optionee, in the name of the Optionee and his or her spouse.
Until the stock certificate evidencing such Shares is issued (as evidenced by
the appropriate entry on the books of the Company or of a duly authorized
transfer agent of the Company), no right to vote or receive dividends or any
other rights as a shareholder shall exist with respect to the Optioned Stock,
notwithstanding the exercise of the Option. The Company shall issue (or cause to
be issued) such stock certificate promptly after the Option is exercised. No
adjustment will be made for a dividend or other right for which the record date
is prior to the date the stock certificate is issued, except as provided in
Section 13 of the Plan.

               (iii)  Exercising an Option in any manner shall decrease the
number of Shares thereafter available, both for purposes of the Plan and for
sale under the Option, by the number of Shares as to which the Option is
exercised.

                                      -8-
<PAGE>

          (b)  Termination of Employment or Consulting Relationship.  Upon
               ----------------------------------------------------
termination of an Optionee's Continuous Status as an Employee or Consultant,
other than upon the Optionee's death or Disability, the Optionee may exercise
his or her Option within such period of time as is specified in the Notice of
Grant to the extent that he or she is entitled to exercise it on the date of
termination (but in no event later than the expiration of the term of such
Option as set forth in the Notice of Grant).  In the absence of a specified time
in the Notice of Grant, the Option shall remain exercisable for three (3) months
following the Optionee's termination.  Notwithstanding the above, in the event
the Company is involved in a merger as a result of which Optionees are precluded
from selling shares of the acquiring company until the publication of financial
results covering post-merger combined operations ("Pooling Restrictions"),
options held by Optionees subject to such Pooling Restrictions (including
options that are assumed or substituted pursuant to Section 13(c)) shall remain
exercisable until five (5) business days after the expiration of such Pooling
Restrictions (but not beyond the original term of the Option) notwithstanding an
earlier termination of such Optionee's Continuous Status as an Employee or
Consultant.  If, on the date of termination, the Optionee is not entitled to
exercise his or her entire Option, the Shares covered by the unexercisable
portion of the Option shall revert to the Plan.  If, after termination, the
Optionee does not exercise his or her Option within the time specified by the
Administrator, the Option shall terminate, and the Shares covered by such Option
shall revert to the Plan.

          Notwithstanding the above, in the event of an Optionee's change in
status from Consultant to Employee or Employee to Consultant, the Optionee's
Continuous Status as an Employee or Consultant shall not automatically terminate
solely as a result of such change in status.  In such event, an Incentive Stock
Option held by the Optionee shall cease to be treated as an Incentive Stock
Option and shall be treated for tax purposes as a Nonstatutory Stock Option
three months and one day following such change of status.

          (c)  Disability of Optionee.  Upon termination of an Optionee's
               ----------------------
Continuous Status as an Employee or Consultant as a result of the Optionee's
Disability, the Optionee may exercise his or her Option at any time within
twelve (12) months (or such other period of time as is determined by the
Administrator) from the date of termination, but only to the extent that the
Optionee is entitled to exercise it on the date of termination (and in no event
later than the expiration of the term of the Option as set forth in the Notice
of Grant).  If, on the date of termination, the Optionee is not entitled to
exercise his or her entire Option, the Shares covered by the unexercisable
portion of the Option shall revert to the Plan.  If, after termination, the
Optionee does not exercise his or her Option within the time specified herein,
the Option shall terminate, and the Shares covered by such Option shall revert
to the Plan.

          (d)  Death of Optionee.  In the event of the death of an Optionee, the
               -----------------
Option may be exercised at any time within twelve (12) months (or such other
period of time as is determined by the Administrator) following the date of
death (but in no event later than the expiration of the term of such Option as
set forth in the Notice of Grant), by the Optionee's estate or by a person who
acquired the right to exercise the Option by bequest or inheritance, but only to
the extent that the Optionee was entitled to exercise the Option at the date of
death.  If, at the time of death, the Optionee was not entitled to exercise his
or her entire Option, the Shares covered by the unexercisable portion of the
Option shall immediately revert to the Plan.  If, after death, the Optionee's
estate or a person who acquired the right to exercise the Option by bequest or
inheritance does not exercise the Option

                                      -9-
<PAGE>

within the time specified herein, the Option shall terminate, and the Shares
covered by such Option shall revert to the Plan.

          (e)  Rule 16b-3.  Options granted to individuals subject to Section 16
               ----------
of the Exchange Act ("Insiders") must comply with the applicable provisions of
Rule 16b-3 and shall contain such additional conditions or restrictions as may
be required thereunder to qualify for the maximum exemption from Section 16 of
the Exchange Act with respect to Plan transactions.

     11.  Stock Purchase Rights.
          ---------------------

          (a)  Rights to Purchase.  Stock Purchase Rights may be issued either
               ------------------
alone, in addition to, or in tandem with other awards granted under the Plan
and/or cash awards made outside of the Plan.  After the Administrator determines
that it will offer Stock Purchase Rights under the Plan, it shall advise the
offeree in writing, by means of a Notice of Grant, of the terms, conditions and
restrictions related to the offer, including the number of Shares that the
offeree shall be entitled to purchase, the price to be paid, and the time within
which the offeree must accept such offer, which shall in no event exceed ninety
(90) days from the date upon which the Administrator made the determination to
grant the Stock Purchase Right.  The offer shall be accepted by execution of a
Restricted Stock Purchase Agreement in the form determined by the Administrator.
The aggregate number of Shares subject to grants of Stock Purchase Rights shall
not exceed ten percent (10%) of the Shares subject to the Plan pursuant to
Section 3.

          (b)  Repurchase Option. Unless the Administrator determines otherwise,
               -----------------
the Restricted Stock Purchase Agreement shall grant the Company a repurchase
option exercisable upon the voluntary or involuntary termination of the
purchaser's employment with the Company for any reason (including death or
Disability); provided that the minimum period of employment over which any such
Company repurchase option lapses shall not be less than three (3) years. The
purchase price for Shares repurchased pursuant to the Restricted Stock purchase
agreement shall be the original price paid by the purchaser and may be paid by
cancellation of any indebtedness of the purchaser to the Company. The repurchase
option shall lapse at a rate determined by the Administrator.

          (c)  Rule 16b-3. Stock Purchase Rights granted to Insiders, and Shares
               ----------
purchased by Insiders in connection with Stock Purchase Rights, shall be subject
to any restrictions applicable thereto in compliance with Rule 16b-3. An Insider
may only purchase Shares pursuant to the grant of a Stock Purchase Right, and
may only sell Shares purchased pursuant to the grant of a Stock Purchase Right,
during such time or times as are permitted by Rule 16b-3.

          (d)  Other Provisions.  The Restricted Stock Purchase Agreement shall
               ----------------
contain such other terms, provisions and conditions not inconsistent with the
Plan as may be determined by the Administrator in its sole discretion.  In
addition, the provisions of Restricted Stock Purchase Agreements need not be the
same with respect to each purchaser.

          (e)  Rights as a Shareholder.  Once the Stock Purchase Right is
               -----------------------
exercised, the purchaser shall have the rights equivalent to those of a
shareholder, and shall be a shareholder when his or her purchase is entered upon
the records of the duly authorized transfer agent of the Company.

                                      -10-
<PAGE>

No adjustment will be made for a dividend or other right for which the record
date is prior to the date the Stock Purchase Right is exercised, except as
provided in Section 13 of the Plan.

          (f)  Issuance of Shares. As soon as possible after full payment of the
               ------------------
purchase price as provided herein, the Shares purchased shall be duly issued. In
accordance with any applicable administrative guidelines it establishes, the
Committee shall withhold from any payment of Shares due as a result of a grant
of Options or Stock Purchase Rights the minimum amount of federal, state and
other taxes required by law to be withheld from such grant, unless the Optionee
pays such minimum withholding amount in cash or by delivering to the Company
Shares having a Fair Market Value, as determined by the Committee, equal to such
minimum withholding amount, or a combination of cash and Shares having an
aggregate value equal to such minimum withholding amount.

          (g)  Shares Available Under the Plan.  Exercise of a Stock Purchase
               -------------------------------
Right in any manner shall result in a decrease in the number of Shares that
thereafter shall be available for reissuance under the Plan.

     12.  Non-Transferability of Options and Stock Purchase Rights.  An Option
          --------------------------------------------------------
or Stock Purchase Right may not be sold, pledged, assigned, hypothecated,
transferred, or disposed of in any manner other than by will or by the laws of
descent or distribution and may be exercised, during the lifetime of the
Optionee, only by the Optionee.

     13.  Adjustments Upon Changes in Capitalization, Dissolution, Merger or
          ------------------------------------------------------------------
Asset Sale.
----------

          (a)  Changes in Capitalization.  Subject to any required action by the
               -------------------------
stockholders of the Company, the number of shares of Common Stock covered by
each outstanding Option and Stock Purchase Right, and the number of shares of
Common Stock which have been authorized for issuance under the Plan but as to
which no Options or Stock Purchase Rights have yet been granted or which have
been returned to the Plan upon cancellation or expiration of an Option or Stock
Purchase Right, as well as the price per share of Common Stock covered by each
such outstanding Option or Stock Purchase Right, shall be proportionately
adjusted for any increase or decrease in the number of issued shares of Common
Stock resulting from a stock split, reverse stock split, stock dividend,
combination or reclassification of the Common Stock, or any other increase or
decrease in the number of issued shares of Common Stock effected without receipt
of consideration by the Company; provided, however, that conversion of any
convertible securities of the Company shall not be deemed to have been "effected
without receipt of consideration."  Such adjustment shall be made by the Board,
whose determination in that respect shall be final, binding and conclusive.
Except as expressly provided herein, no issuance by the Company of shares of
stock of any class, or securities convertible into shares of stock of any class,
shall affect, and no adjustment by reason thereof shall be made with respect to,
the number or price of shares of Common Stock subject to an Option or Stock
Purchase Right.

          (b)  Dissolution or Liquidation.   In the event of the proposed
               --------------------------
dissolution or liquidation of the Company, the Administrator shall notify each
Optionee as soon as practicable prior to the effective date of such proposed
transaction.  The Administrator in its discretion may provide for an Optionee to
have the right to exercise his or her Option or Stock Purchase Right until

                                      -11-
<PAGE>

ten (10) days prior to such transaction as to all of the Optioned Stock covered
thereby, including Shares as to which the Option would not otherwise be
exercisable. In addition, the Administrator may provide that any Company
repurchase option applicable to any Shares purchased upon exercise of an Option
or Stock Purchase Right shall lapse as to all such Shares, provided the proposed
dissolution or liquidation takes place at the time and in the manner
contemplated. To the extent it has not been previously exercised, an Option or
Stock Purchase Right will terminate immediately prior to the consummation of
such proposed action.

          (c)  Merger or Asset Sale.  In the event of a merger of the Company
               --------------------
with or into another corporation, or the sale of substantially all of the assets
of the Company, each outstanding Option and Stock Purchase Right shall be
assumed or an equivalent option or right substituted by the successor
corporation or a Parent or Subsidiary of the successor corporation, or in the
event that the successor corporation refuses to assume or substitute for the
Option or Stock Purchase Right, the Optionee shall have the right to exercise
the Option or Stock Purchase Right as to all of the Optioned Stock, including
Shares as to which it would not otherwise be exercisable.  If an Option or Stock
Purchase Right is exercisable in lieu of assumption or substitution in the event
of a merger or sale of assets, the Administrator shall notify the Optionee that
the Option or Stock Purchase Right shall be fully exercisable for a period of
fifteen (15) days from the date of such notice, and the Option or Stock Purchase
Right shall terminate upon the expiration of such period.  For the purposes of
this paragraph, the Option or Stock Purchase Right shall be considered assumed
if, following the merger or sale of assets, the option or right confers the
right to purchase or receive, for each Share of Optioned Stock subject to the
Option or Stock Purchase Right immediately prior to the merger or sale of
assets, the consideration (whether stock, cash, or other securities or property)
received in the merger or sale of assets by holders of Common Stock for each
Share held on the effective date of the transaction (and if holders were offered
a choice of consideration, the type of consideration chosen by the holders of a
majority of the outstanding Shares); provided, however, that if such
consideration received in the merger or sale of assets was not solely common
stock of the successor corporation or its Parent, the Administrator may, with
the consent of the successor corporation, provide for the consideration to be
received upon the exercise of the Option or Stock Purchase Right, for each Share
of Optioned Stock subject to the Option or Stock Purchase Right, to be solely
common stock of the successor corporation or its Parent equal in fair market
value to the per share consideration received by holders of Common Stock in the
merger or sale of assets.

     14.  Date of Grant.  The date of grant of an Option or Stock Purchase Right
          -------------
shall be, for all purposes, the date on which the Administrator makes the
determination granting such Option or Stock Purchase Right, or such other later
date as is determined by the Administrator.  Notice of the determination shall
be provided to each Optionee within a reasonable time after the date of such
grant.

     15.  Amendment and Termination of the Plan.
          -------------------------------------

          (a) Amendment and Termination.  The Board may at any time amend,
              -------------------------
alter, suspend or terminate the Plan.

          (b) Shareholder Approval.  The Company shall obtain shareholder
              --------------------
approval of any Plan amendment to the extent necessary and desirable to comply
with Rule 16b-3 or with

                                      -12-
<PAGE>

Sections 162(m) or 422 of the Code (or any successor rule or statute or other
applicable law, rule or regulation, including the requirements of any exchange
or quotation system on which the Common Stock is listed or quoted). Such
shareholder approval, if required, shall be obtained in such a manner and to
such a degree as is required by the applicable law, rule or regulation.

          (c)  Effect of Amendment or Termination.  No amendment, alteration,
               ----------------------------------
suspension or termination of the Plan shall impair the rights of any Optionee,
unless mutually agreed otherwise between the Optionee and the Administrator,
which agreement must be in writing and signed by the Optionee and the Company.

          (d) Plan Amendments.  The Plan was amended in order to approve the
              ---------------
1997 Increase, the 1998 Increase, the 1999 Increase, the 2000 Increase, and the
2001 Increase respectively, and this restatement incorporates such amendments.

     16.  Conditions Upon Issuance of Shares.
          ----------------------------------

          (a)  Legal Compliance.  Shares shall not be issued pursuant to the
               ----------------
exercise of an Option or Stock Purchase Right unless the exercise of such Option
or Stock Purchase Right and the issuance and delivery of such Shares shall
comply with all relevant provisions of law, including, without limitation, the
Securities Act of 1933, as amended, the Exchange Act, the rules and regulations
promulgated thereunder, Applicable Laws, and the requirements of any stock
exchange or quotation system upon which the Shares may then be listed or quoted,
and shall be further subject to the approval of counsel for the Company with
respect to such compliance.

          (b)  Investment Representations.  As a condition to the exercise of an
               --------------------------
Option or Stock Purchase Right, the Company may require the person exercising
such Option or Stock Purchase Right to represent and warrant at the time of any
such exercise that the Shares are being purchased only for investment 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.

     17.  Liability of Company.
          --------------------

          (a)  Inability to Obtain Authority.  The inability of the Company to
               -----------------------------
obtain authority from any regulatory body having jurisdiction, which authority
is deemed by the Company's counsel to be necessary to the lawful issuance and
sale of any Shares hereunder, shall relieve the Company of any liability in
respect of the failure to issue or sell such Shares as to which such requisite
authority shall not have been obtained.

          (b) Grants Exceeding Allotted Shares.  If the Optioned Stock covered
              --------------------------------
by an Option or Stock Purchase Right exceeds, as of the date of grant, the
number of Shares which may be issued under the Plan without additional
shareholder approval, such Option or Stock Purchase Right shall be void with
respect to such excess Optioned Stock, unless shareholder approval of an
amendment sufficiently increasing the number of Shares subject to the Plan is
timely obtained in accordance with Section 15(b) of the Plan.

                                      -13-
<PAGE>

     18.  Reservation of Shares.  The Company, during the term of this Plan,
          ---------------------
will at all times reserve and keep available such number of Shares as shall be
sufficient to satisfy the requirements of the Plan.

     19.  Shareholder Approval.  Continuance of the Plan shall be subject to
          --------------------
approval by the stockholders of the Company within twelve (12) months before or
after the date the Plan is adopted.  Such shareholder approval shall be obtained
in the manner and to the degree required under applicable federal and state law.

                                      -14-<PAGE>

NOTE:  PORTIONS OF EXHIBIT A OF THIS EXHIBIT INDICATED BY "[****]" ARE SUBJECT
TO A CONFIDENITAL TREATMENT REQUEST UNDER RULE 406 OF THE SECURITIES ACT OF 1933
AND RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AND HAVE BEEN OMITTED
FROM THIS EXHIBIT.  COMPLETE, UNREDACTED COPIES OF THIS EXHIBIT HAVE BEEN FILED
WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THIS COMPANY'S
CONFIDENTIAL TREATMENT REQUEST.

                                                                    Exhibit 10.1

                              EMPLOYMENT AGREEMENT
                              --------------------

     THIS EMPLOYMENT AGREEMENT ("Agreement") is made effective as of the 1st day
of April, 2001, by and between Clarus Corporation, a Delaware corporation (the
"Company") and Steven M. Hornyak, a Georgia resident, ("Employee").

     WHEREAS, the Company and Employee desire to continue the employment of
Employee with the Company; and

     WHEREAS, the Company and Employee desire to set forth in writing all of the
covenants, terms and conditions of their agreement and understanding as to such
employment.

     NOW THEREFORE, in consideration of the foregoing, the mutual promises
contained herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto, intending to
be legally bound, agree as follows:

     1.   Employment and Duties.  The Company hereby employs Employee, and
          ---------------------
Employee hereby accepts continued employment, as its Chief Strategy Officer and
Executive Vice President, Americas.  Employee agrees to serve in such capacities
and to faithfully and diligently perform such duties, responsibilities and
services that are incidental thereto, as well as such other duties,
responsibilities and services as may be prescribed or requested by the President
and Chief Executive Officer of the Company from time to time.  Employee shall
devote his full time, attention and best efforts to the performance of his
duties, responsibilities and services to the Company in a lawful manner and in
accordance with all policies of and instructions from the Company.

     2.   Term.  The term of this Agreement will commence on the date set forth
          ----
above and will terminate one (1) year thereafter, unless said Agreement is
terminated at an earlier date as provided herein.  The Agreement shall
automatically renew for identical and successive one (1) year term(s) unless
either party notifies the other of its intention not to renew the Agreement at
least 30 days prior to the expiration of the one year term then in effect;
provided, however, that all post-termination obligations under Sections 5, 6 and
7 shall survive termination or expiration of this Agreement as provided herein.
<PAGE>

     3.   Compensation and Employee Benefits.
          ----------------------------------

          (a)  Compensation.  Employee shall receive an annualized salary (the
"Base Salary") of Two Hundred Thousand Dollars ($200,000.00), which shall be
paid in accordance with the Company's regular payroll practices and subject to
any and all withholdings pursuant to applicable law.

          Employee is also eligible to receive additional incentive compensation
as set forth on Exhibit A if the Company meets the revenue, expense and
                ---------
profitability targets and the Employee attains the specified management business
objectives set forth on Exhibit "A," which is attached hereto and incorporated
                        ------------
herein by reference.  The Employee's right to receive incentive compensation
hereunder will be measured on a quarterly basis and, if earned, will be payable
quarterly.

          (b)  Employee/Fringe Benefits.  Employee shall be eligible to
participate in all employee benefit programs and fringe benefits (including, but
not limited to, medical, dental, vision, life, accidental death and
dismemberment, travel, accident and short-term/long-term disability insurance
plans or programs, paid time-off, paid holidays, etc.) generally made available
to executive employees of the Company, subject to any and all terms, conditions,
and eligibility requirements for said programs and benefits, as may from time to
time be prescribed by the Company.  The Company may alter, modify, add to or
delete its employee benefit plans at any time as it determines in its sole
discretion.

          (c)  Other Business Expenses.  The Company shall reimburse Employee
for his actual out-of-pocket, business expenses that are incurred by Employee
and are reasonable and necessary in relation to and in furtherance of Employee's
performance of his duties to the Company.  Such reimbursement shall be subject
to compliance with the Company's reimbursement policies and the provision of
substantiating documents of said expenses as may be reasonably requested by the
Company.

          (d) Vacation.   Employee shall be entitled to twenty-four (24) days
Paid Time Off (PTO) per year (which includes vacation, illness and other
personal time away from work) as well as seven (7) days of paid holiday in
accordance with the Company's normal policies; provided, that vacation shall be
taken at such times as shall not unreasonably interfere with the Employee's
responsibilities hereunder.  Up to five (5) days of unused PTO may be carried
forward from one year into the next.

     4.   Termination.  This Agreement may be terminated prior to the expiration
          ------------
of the term as follows:

          (a) Death or Disability.  The Employee's employment hereunder shall
terminate automatically upon Employee's death.  In such event, Employee's estate
shall be entitled to receive any earned and unpaid Base Salary, prorated through
the date of death.  If the Employee is prevented from performing his material
duties hereunder as a result of physical or mental illness, injury or incapacity
for either (i) a period of ninety (90) consecutive days or (ii)

                                       2
<PAGE>

more than one hundred-eighty (180) days in the aggregate in any twelve (12)
month period, then the Company may terminate the Employee's employment upon
written notice to Employee. While receiving disability income payments under the
Company's disability income plan, the Employee shall not be entitled to receive
any Base Salary hereunder, but shall continue to participate in the Company's
benefit plans, to the extent permitted by such plans, until the termination of
his employment.

          (b) For Cause.  The Company may terminate the Employee's employment
hereunder for Cause at any time upon notice to the Employee setting forth in
reasonable detail the nature of such Cause.  In the event that the Company
terminates Employee's employment for Cause (or Employee resigns from his
employment with the Company), the Company shall not be obligated to pay any
salary or other compensation to Employee after the effective date of
termination, other than accrued and unpaid Base Salary earned through the date
of termination.

          (c) Without Cause.  In the event the Company terminates this Agreement
without Cause, then Employee shall be entitled to (i) severance pay in the form
of continuation of his annualized Base Salary for a period of one (1) year from
the date of such termination, which shall be paid in accordance with the
Company's regular payroll practices and subject to any and all withholdings
pursuant to applicable law, and (ii) a pro rata portion of his incentive bonus,
if any, contemplated by Section 3(a) for the quarter in which his employment
terminated based upon the number of days in the quarter elapsed prior to such
termination.  In addition, the Company shall continue to provide, through COBRA
or otherwise, medical insurance coverage contemplated by Section 3(c) for a
period of twelve months following the date of Employee's termination without
Cause, or Employee's earlier commencement of employment with any other entity.
Payment of the severance benefits set forth herein shall be subject to
Employee's continued compliance with the provisions of Section 5 hereof.
Notwithstanding anything to the contrary herein, the Company's obligations to
under this Section 4(c) shall terminate on the date on which Employee commences
new employment.  For purposes hereof, the commencement of a  full-time position,
whether as an employee, consultant or independent contractor shall be deemed to
be commencement of "new employment".

          (d) Change of Control.  The Employee may terminate his employment
hereunder at any time during the three (3) month period beginning three (3)
months after a Change of Control has occurred by written notice given to the
Company.  In the event of such termination:

               (i) The Company shall continue to pay to the Employee his Base
          Salary as of the date of the Change of Control for a period of twelve
          (12) months from the date of termination or such earlier date on which
          Employee commences new employment.

               (ii) The Company shall pay to the Employee a pro rata portion of
          his incentive bonus, if any, contemplated by Section 3(a) for the
          quarter in which his employment terminated based upon the number of
          days in the quarter elapsed prior to termination.

                                       3
<PAGE>

               (iii)  The Company shall continue to provide Employee with the
          medical insurance coverage contemplated by Section 3(c), through COBRA
          or otherwise, for a period equal to the earlier of (x) twelve (12)
          months from the date of termination or (y) Employee's commencement of
          employment with any other entity.

     5.   Protective  Covenants.  Employee is, and will become during the course
          ---------------------
of employment, intimately familiar with Confidential Information, Trade Secrets,
products and services, and other property of the Company.  The protection of the
Company requires that all such property and information must remain the sole and
private property of the Company to be used only for the Company's benefit, not
to be disclosed to any other party nor used by Employee against the Company or
for the benefit of any other person.  Employee shall, upon request of the
Company, and without request promptly on termination of employment, deliver all
Company Property in Employee's possession or control to the Company.  Employee
acknowledges and agrees that title to all Company Property is vested in the
Company. In addition, Employee warrants, represents, covenants and agrees,
during the term of his employment and for the periods described below, as
follows:

          (a) Covenant Not to Compete in Certain Ways.  By virtue of his
position with the Company, Employee shall be given an opportunity to, and shall
have an obligation to, participate in strategic planning with respect to
competitors of the Company and shall be made privy to the Company's marketing
strategy, product development, pricing, timing and other matters specifically
designed to address market competition.  Employee further acknowledges that the
use and/or disclosure by him of such secret information and knowledge would be
inevitable in the event Employee were to become engaged by such a competitor in
a capacity similar to the capacity in which Employee is employed by the Company.
Employee therefore agrees that, for a period of one (1) year following
termination of his employment with the Company, he shall not directly or
indirectly, within the State of Georgia or within a 100-mile radius of the
addresses of the competitors of the Company expressly listed on Exhibit "B"
                                                                -----------
hereto (the "Named Competitors"), become engaged or employed by any Named
Competitor in a capacity substantially identical to the functions and duties
Employee performs on behalf of the Company.  Employee acknowledges that the
Named Competitors designated on Exhibit "B" are the key competitors of the
                                -----------
Company as of the date hereof.  Employee acknowledges and agrees that there are
many other entities with whom Employee can profitably use his skills and
abilities, including other competitors of the Company, and that it is entirely
proper and reasonable for him to agree not to work for the Named Competitors in
the prescribed capacity for the prescribed times and within the prescribed
locations.  The parties agree that Exhibit "B" may be updated and amended from
                                   -----------
time to time by substituting therefor a modified Exhibit "B" that has been
                                                 -----------
signed by both the Company and Employee, and that the Named Competitors shall
thereafter refer to the companies listed on such amended Exhibit "B."
                                                         ------------

          (b) Covenant Not to Solicit Business from Certain Customers.  The
Employee acknowledges that during the course of his employment by the Company,
Employee shall have a duty to, and shall be given an opportunity to, make
contact with and strengthen ties with Customers and potential Customers of the
Company.  The Employee shall not, for a period of two (2) years after
termination of his employment with the Company, directly or indirectly, for

                                       4
<PAGE>

himself or any other person or entity, solicit any Customer for the purchase or
license by such Customer of any product or service competitive with any of the
products and services which are offered by the Company within the one-year
period preceding termination of Employee's employment.

          (c) Covenant Not to Solicit Employees.  For a period of two (2) years
following the date of termination of his employment with the Company, Employee
shall not, directly or indirectly, for himself or any other person or entity,
employ, solicit or recommend the employment of any employee of the Company for
the purpose of causing such employee to take employment with Employee or any
other person or entity until such employee or former employee has ceased to be
employed by the Company for a period of six (6) months.

          (d) Covenant Not to Disclose Confidential Information or Trade
Secrets.  Employee shall not disclose to any person whatsoever or use any Trade
Secrets or Confidential Information of the Company, other than as necessary in
the fulfillment of his duties to the Company in the course of employment.  This
paragraph shall be effective during the term of this Agreement and for a period
of two (2) years after termination of employment with respect to all
Confidential Information, and shall remain in effect with respect to all Trade
Secrets so long as such information remains a trade secret under applicable law.

     6.   Work Product; Inventions.
          -------------------------

          (a)  Ownership by the Company.  The Company shall own all right, title
and interest in and to all work product developed by Employee in Employee's
provision of services to the Company, including without limitation, all
preliminary designs and drafts, all other works of authorship, all derivative
works and patentable and unpatentable inventions and improvements, all copies of
such works in whatever medium such copies are fixed or embodied, and all
worldwide copyrights, trademarks, patents or other intellectual property rights
in and to such works (collectively the "Work Product").  All copyrightable
materials of the Work Product shall be deemed a "work made for hire" for the
purposes of U.S. Copyright Act, 17 U.S.C. (S) 101 et seq., as amended.

          (b)  Assignment and Transfer.  In the event any right, title or
interest in and to any of the Work Product (including without limitation all
worldwide copyrights, trademarks, patents or other intellectual property rights
therein) does and shall not vest automatically in and with the Company, Employee
agrees to and hereby does irrevocably assign, convey and otherwise transfer to
the Company, and the Company's respective successors and assigns, all such
right, title and interest in and to the Work Product with no requirement of
further consideration from or action by Employee or the Company.

          (c)  Registration Rights.  The Company shall have the exclusive
worldwide right to register, in all cases as "claimant" and when applicable as
"author," all copyrights in and to any copyrightable element of the Work
Product, and file any and all applicable renewals and extensions of such
copyright registrations. The Company shall also have the exclusive worldwide
right to file applications for and obtain (i) patents on and for any of the Work
Product

                                       5
<PAGE>

in Employee's name and (ii) assignments for the transfer of the ownership of any
such patents to the Company.

          (d)  Additional Documents.  Employee agrees to execute and deliver all
documents requested by the Company regarding or related to the ownership and/or
other intellectual property rights and registrations specified herein.  Employee
hereby further irrevocably designates and appoints the Company as Employee's
agent and attorney-in-fact to act for and on Employee's behalf and stead to
execute, register and file any such assignments, applications, registrations,
renewals and extensions and to do all other lawfully permitted acts to further
the registration, prosecution and issuance of patents, copyright or similar
protections with the same legal force and effect as if executed by Employee.

     7.   Employee's Obligations Upon Termination.  Upon the termination of
          ----------------------------------------
Employee's employment hereunder for whatever reason, Employee automatically
tenders Employee's resignation from any office Employee may hold with the
Company, and Employee shall not at any time thereafter represent himself to be
connected or to have any connection with the Company or its related entities.

     8.  Assignment.  Due to the personal service nature of Employee's
         ----------
obligations, Employee may not assign this Agreement.  Subject to the
restrictions in this Section, this Agreement shall be binding upon and benefit
the parties hereto, and their respective heirs, successors or assigns.

     9.   Legality and Severability.  The parties covenant and agree that the
          -------------------------
provisions contained herein are reasonable and are not known or believed to be
in violation of any federal, state, or local law, rule or regulation.  In the
event a court of competent jurisdiction finds any provision herein (or subpart
thereof) to be illegal or unenforceable, the parties agree that the court shall
modify said provision(s) (or subpart(s) thereof) to make said provision(s) (or
subpart(s) thereof) and this Agreement valid and enforceable.  Any illegal or
unenforceable provision (or subpart thereof), or any modification by any court,
shall not affect the remainder of this Agreement, which shall continue at all
times to be valid and enforceable.

     10.   Entire Agreement; Modification; Governing Law.  This Agreement
           ---------------------------------------------
constitutes the entire understanding between the parties regarding the subject
matters addressed herein and supersedes any prior oral or written agreements
between the parties.  This Agreement can only be modified by a writing signed by
both parties, and shall be interpreted in accordance with and governed by the
laws of the State of Georgia without regard to the choice of law provisions
thereof.  Notwithstanding the foregoing, the protective provisions contained in
Paragraph 5 hereof shall be governed and enforced in accordance with the laws of
the state in which enforcement of such provisions is sought.

     11.   Negotiated Agreement.  Employee and the Company agree that this
           --------------------
Agreement shall  be construed as drafted by both of them, as parties of
equivalent bargaining power, and not for or against either of them as drafter.

                                       6
<PAGE>

     12.   Review and Voluntariness of Agreement.  Employee acknowledges
           -------------------------------------
Employee has had an opportunity to read, review, and consider the provisions of
this Agreement, that Employee has in fact read and does understand such
provisions, and that Employee has voluntarily entered into this Agreement.

     13.  Non-Waiver.  The failure of the Company to insist upon or enforce
          -----------
strict performance of any provision of this Agreement or to exercise any rights
or remedies thereunder will not be construed as a waiver by the Company to
assert or rely upon any such provision, right or remedy in that or any other
instance.

     14.   No Conflicting Obligations.  Employee hereby acknowledges and
           --------------------------
represents that Employee's execution of this Agreement and performance of
employment-related obligations and duties for the Company as set forth hereunder
will not cause any breach, default or violation of any other employment, non-
disclosure, confidentiality, non-competition or other agreement to which
Employee may be a party or otherwise bound.  Employee hereby agrees that he will
not use in the performance of his duties for the Company (or otherwise disclose
to the Company) any trade secrets or confidential information of any prior
employer or other person or entity if and to the extent that such use or
disclosure may cause a breach or violation of any obligation or duty owed to
such employer, person, or entity under any agreement or applicable law.

     15.   Forum; Enforcement.  In the event of litigation arising from this
           ------------------
Agreement, Employee hereby expressly consents to jurisdiction and venue in any
State or Federal Court sitting in Fulton County, State of Georgia, and waives
any objections to such jurisdiction and venue. Employee further agrees that if
Employee were to breach the provisions of Section 5 or 6 hereof, the Company
would be irreparably harmed and therefore, in addition to any other remedies
available at law, the Company shall be entitled to equitable relief, including
without limitation, specific performance and preliminary and permanent
injunction, against any breach or threatened breach of said Sections 5 and 6,
without having to post bond.

     16.   Notices.  Any notice or other communications under this Agreement
           -------
shall be in writing, signed by the party making the same, and shall be delivered
personally or sent by certified or registered mail, postage prepaid, addressed
as follows:

          If to Employee:           Steven M. Hornyak

          If to the Company:        Clarus Corporation
                                    3970 Johns Creek Court
                                    Suwanee, Georgia 30024
                                    Attention: President

or to such other address as may hereafter be designated by either party hereto.
All such notices shall be deemed given on the date received.

     17.  Definitions.  As used in this Agreement, the following terms shall
          -----------
have the following meanings:

                                       7
<PAGE>

          (a)   "Cause."

               (i) The Employee's repeated failure to perform (other than by
          reason of disability), or gross negligence in the performance of, his
          material duties and responsibilities hereunder and the continuance of
          such failure or negligence for a period of thirty (30) days after
          notice to the Employee;

               (ii) Material breach by the Employee of any provision of this
          Agreement or any other written agreement between the Employee and the
          Company or any of its affiliates; and

               (iii)  Other conduct by the Employee that involves a material
          violation of law or breach of fiduciary obligation on the part of the
          Employee or is otherwise materially harmful to the business,
          interests, reputation or prospects of the Company or any of its
          affiliates.

          (b) "Change of Control"  For the purposes herein, a "Change of
Control" shall be deemed to have occurred on the earliest of the following
dates:

               (i) The date any entity or person shall have become the
          beneficial owner of, or shall have obtained voting control over, (X)
          fifty-one percent (51%) or more of the outstanding Common Stock of the
          Company if the Company's stock is not then registered with the SEC and
          publicly traded or (Y) forty percent (40%) or more of the outstanding
          Common Stock of the Company if the Company has consummated its initial
          public offering;

               (ii) The date the stockholders of the Company approve a
          definitive agreement (A) to merge or consolidate the Company with or
          into another corporation, in which the Company is not the continuing
          or surviving corporation or pursuant to which any shares of Common
          Stock of the Company would be converted into cash, securities or other
          property of another corporation, other than (X) a merger or
          consolidation of the Company in which holders of Common Stock
          immediately prior to the merger or consolidation have the same
          proportionate ownership of Common Stock of the surviving corporation
          immediately after the merger as immediately before and (Y) a merger or
          consolidation of the Company in which holders of Common Stock
          immediately prior to the merger or consolidation continue to own at
          least a majority of the combined voting securities of the Company (or
          the surviving entity) outstanding immediately after such merger or
          consolidation, or (B) to sell or otherwise dispose of all or
          substantially all the assets of the Company; or

               (iii)  The date there shall have been a change in a majority of
          the Board of Directors of the Company within a 12-month period unless
          the nomination for election by the Company's stockholders of each new
          director was approved by the vote of two-thirds of the directors then
          still in office who were in office at the beginning of the 12-month
          period.

                                       8
<PAGE>

          (c) "Company Property."  All property, including, without limitation,
real, personal, tangible or intangible, including all computer programs,
electronic data, educational or instructional materials, inventions,
Confidential Information, Trade Secrets, facilities, trade names, logos,
patents, copyrights and all tangible materials and supplies (whether originals
or duplicates and including, but not in any way limited to, computer diskettes,
brochures, materials, sample products, video tape cassettes, film, catalogs,
books, records, manuals, sales presentation literature, training materials,
calling or business cards, customer records, customer files, customer names,
addresses and phone numbers, directives, correspondence, documents, contracts,
orders, messages, memoranda, notes, circulars, agreements, bulletins, invoices
and receipts), which in any way pertain to the Company's business, whether
furnished to Employee by the Company or prepared, compiled or acquired by
Employee while employed by the Company, all being the sole property of the
Company.

          (d) "Confidential Information." All information or material regarding
the Company's business that has or could have commercial value or other utility
in the business in which the Company is engaged or contemplates engaging, or
information which if disclosed without authorization could be detrimental to the
business of the Company, including, but not limited to, its business plans,
marketing plans, methods of operation, products, software programs,
documentation of computer programs, programming procedures, algorithms,
formulas, equipment, techniques, existing and contemplated services, inventions,
systems, devices (whether or not patentable), financial information and
practices, plans, pricing, selling and marketing techniques, proposals or bids
for actual or potential customers, names, addresses and phone numbers of the
Company's customers, credit information and financial data of the Company and
the Company's customers, particular business requirements of the Company's
customers, and special methods and processes involved in designing, producing
and selling the Company's products and services, all shall be deemed
Confidential Information and the Company's exclusive property; provided,
however, that Confidential Information shall not include information that has
entered the public domain other than through the actions of Employee.
Confidential Information shall also include the foregoing types of information
with respect to all affiliates of the Company.

          (e) "Customer."  Customer means any customer or prospective customer
of the Company with whom Employee had Material Contact during the twelve (12)
months immediately preceding the termination of the Employee's employment with
the Company.

          (f) "Material Contact."  Material Contact means interaction between
the Employee and the customer or potential customer which takes place in an
effort to further the business relationship, and shall be deemed to exist
between the Employee and each customer or potential customer of the Company with
whom the Employee dealt; whose dealings with the Company were coordinated or
supervised by the Employee; or about whom the Employee obtained and used
confidential information in the ordinary course of business as a result of such
Employee's association with the Company.

          (g) "Trade Secrets."  All information, including, but not limited to,
technical or non-technical data, formulas, patterns, programs, devices, methods,
processes, financial data,

                                       9
<PAGE>

product plans or a list of actual or potential customers or suppliers, which
derives economic value from not being generally known and which is the subject
of reasonable efforts by the Company to maintain its secrecy.

                    [EXECUTION SET FORTH ON FOLLOWING PAGE]

                                       10
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have hereunto affixed their hands
and seals as of the date first above written.

                    THE COMPANY:

                    CLARUS CORPORATION

                    By:  /s/ Stephen P. Jeffery
                         --------------------------------------------
                         Stephen P. Jeffery, Chief Executive Officer

                    EMPLOYEE:

                    /s/ Steven M. Hornyak
                    --------------------------------------------------
                    Steven M. Hornyak

                                       11
<PAGE>

                                  EXHIBIT "A"
                                  -----------

                             INCENTIVE COMPENSATION

<TABLE>
<CAPTION>
                     2001 Compensation Plan
                         Steve Hornyak

<S>              <C>                                   <C>           <C>
 $  200,000      Base Salary
                 License Production:
                 ------------------------------
 $               [****]                                    $118,000  [****]
                 [****]                                              [****]
                 Services Revenue:                                   Services Revenue
                 ------------------------------                      ----------------
 $  42,480       [****]                                    $ 42,500  [****]
                 [****]                                              [****]
 $  20,000       Quarterly Bonuses (4@$5,000) based on
                 meeting/beating EPS
 $  20,000       Bonus upon obtaining annual total
                 revenue/production plan
-----------------------------------------------
 $  400,730      Total Compensation at Plan
-----------------------------------------------
</TABLE>

NOTES
1.  Must maintain margins. Expenses must be in line with plan. Over-achievement
on revenue production will result in allowance for additional expenses. CEO has
right to modify compensation plan if budget and margins not properly managed.

<TABLE>
<S>                   <C>       <C>       <C>        <C>       <C>
                      Q1        Q2        Q3         Q4        2001
-----------------------------------------------------------------------
License               $[****]   $[****]   $[****]    $[****]   $[****]
-----------------------------------------------------------------------
Services                                                       $[****]
-----------------------------------------------------------------------
</TABLE>

                                       12
<PAGE>

                                  EXHIBIT "B"
                                  -----------

             List of Competitors Pursuant to Section 5 of Agreement

          Name:                             Address:
          ----                              -------

1.   Ariba Corporation                   1565 Charleston Road
                                         Mountain View, CA 94043

                                         600 Northpark Town Center
                                         1200 Abernathy Road
                                         Atlanta, GA 30328

                                         and

                                         Jamboree Center
                                         One Plaza Park
                                         Suite 600
                                         Irvine, CA 92614

2.   Commerce One                        CarrAmerica Corporate Center
                                         Buildings #1 & #4
                                         4440 Rosewood Drive
                                         Pleasanton, CA 94588

                                         And

                                         999 Peachtree Street, Suite 140
                                         Atlanta, GA 30309
                                         U.S.A.

3.   Purchase Pro                        3291 North Buffalo Drive
                                         Las Vegas, Nevada 89129

4.   Metiom, Inc.                        One Liberty Plaza - 22nd Floor
                                         New York, NY 10006

                                         and
                                         555 North Point Center East
                                         Alpharetta, GA 30022

                                       13
<PAGE>

Printed Name of Employee:

Steven M. Hornyak

/s/  Steven M. Hornyak
-------------------------------------------------
Signature of Employee

Effective Date:   April 1, 2001

CLARUS CORPORATION

By:  /s/  Stephen P. Jeffery
     --------------------------------------------
     Stephen P. Jeffery, Chief Executive Officer

Effective Date:   April 1, 2001

                                       14

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