Document:

<PAGE>
                                 EXHIBIT 10.10

<PAGE>
Note: Information in this document marked with an "[*]" has been omitted and
filed separately with the Commission. Confidential treatment has been requested
with respect to the omitted portions.

                              EMPLOYMENT AGREEMENT

        This Employment Agreement made and entered into by and between PIXAR, a
California corporation (the "Company") and JOHN LASSETER ("Employee") effective
as of February 24, 1997.

        Reference is made to that certain executed Employment Agreement ("Prior
Agreement") made and entered into by and between Pixar, a California corporation
Company and John Lasseter dated as of August 1, 1991.

        As an inducement for Pixar to enter into this Employment Agreement, the
parties agree that notwithstanding anything to the contrary contained in the
Prior Agreement, the Term of the Prior Agreement shall expire on February 23,
1997 and no bonus shall be payable to Employee other than as set forth in this
Employment Agreement.

        1. ENGAGEMENT:

               1.1 Guaranteed Employment Term.

                      (a) The Company agrees to employ Employee and Employee
agrees to accept such employment, for a guaranteed period commencing on February
24, 1997 ("Start Date") and ending on February 23, 2004. Company may terminate
this Employment Agreement prior to the expiration of the Term in accordance with
Company's Termination Rights under 6.5 below or in the event of Employee's
death, Incapacity or Default or an event of Force Majeure as more fully set
forth in paragraph 6.8 below. Employee may not terminate Employee's services
hereunder prior to the expiration of the Term except as more fully set forth in
paragraphs 6.7 and 6.8 below.

               1.2 Duties and Responsibilities.

                      (a) During the Term and any extensions thereof, Employee
shall be employed by the Company as a director of animated motion pictures and
as "Vice President - Creative" of the Company (which corporate officer position
has been approved by Company's Board of Directors), reporting directly to the
CEO of Company or the Office of the President, as the CEO of Company may from
time to time designate. Company and Employee acknowledge that Employee's first
priority shall be the directing or supervision of feature length animated motion
pictures ("Picture(s)") and serving, at Company's direction, as Company's
representative to Walt Disney Pictures ("Disney") in the exercise of Company's
creative control rights and obligations and that Employee's other duties for
Company shall not materially interfere with such priority services. Employee
agrees that during the Term he will render exclusive services to Company and
devote his full time, effort and energies during business hours to his
responsibilities for the Company, and that he shall faithfully and to the best
of his ability discharge those duties.

<PAGE>
                      (b) During the Term, Company and Employee shall have the
following creative control rights with respect to the development,
pre-production, production and post-production of the Pictures, made for home
video productions and short subject motion pictures (collectively, the
"Productions"): (i) with respect to Productions for which Employee renders
executive producing services (but not directing services) [*], provided that in
the event of [*], the [*]; and (ii) with respect to Productions directed by
Employee, [*], provided that each party shall [*] and so not to [*]. The parties
acknowledge that [*].

               1.3 Location. Company agrees that Employee's services for Company
will be based within a thirty (30) mile radius of Company's current headquarters
in Richmond, California unless otherwise approved by Employee. Employee hereby
approves the intended location of a new facility in Emeryville, California.

        2. COMPENSATION:

               2.1 Salary. Subject to the full and complete performance by
Employee of all of Employee's material obligations hereunder, Company shall pay
to Employee the following:

                      (a) Signing Bonus. Company shall pay to Employee the sum
of $1,250,000 within ten (10) business days after the execution of this
Employment Agreement.

                      (b) Salary. Company shall pay to Employee the annual
salary of $700,000, with eight percent (8%) cumulative annual increases at each
anniversary date of the Start Date. Employee's salary shall be payable in
accordance with Company's customary payroll practices. All payments made to
Employee as salary, signing bonus, theatrical motion picture bonus or otherwise
shall be subject to such deductions, withholdings and limitations as shall from
time to time be required by law, governmental regulations or orders, and any
agreements between Company and Employee.

               2.2 Theatrical Motion Picture Bonus.

                      (a) If Employee is entitled to receive a "directed by"
credit on the Picture and Employee fully performs all directing services
requested by Company in accordance with this Agreement and material obligations
requested by Company in accordance with the terms of this Agreement in
connection with the applicable Picture, Employee shall be entitled to receive
contingent bonuses (which bonuses are cumulative at each box office benchmark)
based upon the domestic theatrical box office gross receipts of such Picture as
reported in the Daily Variety (or if Daily Variety discontinues such service,
the parties shall mutually determine an appropriate replacement, but in the

[*] Certain information on this page has been omitted and filed separately with
    the Commission. Confidential treatment has been requested with respect to
    the omitted portions.

                                      -2-

<PAGE>
event of a disagreement relating to such replacement, the decision of Company
shall govern), as follows, payable within 30 days after such milestone is
reported in Daily Variety:

<TABLE>
<CAPTION>
       Box Office Gross                               Bonus
       ----------------                               -----
       <S>                                            <C>
       [*]                                            $100,000
       [*]                                            (an additional) $150,000
       [*]                                            (an additional) $200,000
       [*]                                            (an additional) $250,000
       [*]                                            (an additional) $300,000
       [*]                                            (an additional) $300,000
       [*]                                            (an additional) $400,000
       [*]                                            (an additional) $400,000
       [*]                                            (an additional) $500,000
       [*]                                            (an additional) $500,000
</TABLE>

                      (b) Vesting. If Employee's services are terminated
(including, but not limited to, termination as a result of expiration of the
Term of this Agreement) as director in connection with a Picture by any reason
other than Employee's breach or default of a material term or condition
hereunder, the contingent compensation set forth in Section 2.2(a) above with
regard to such Picture shall vest each month that Employee performs services on
such Picture as to a percentage equal to the quotient obtained when one is
divided by the total number of months of scheduled pre-production, production
and post-production of such Picture, but in no event shall the total number of
scheduled pre-production, production and post-production months exceed
forty-eight (48) months. As an example only, if production, pre-production and
post-production for a Picture are scheduled for a total of four years (i.e.,
forty-eight (48) months), then vesting shall be 1/48th or 2.083% for each month
of Employee's services on such Picture. Notwithstanding the foregoing, if
Employee's services are terminated for any reason other than Default under
Section 6.8 below, then if Employee has completed services for seventy-five
percent (75%) or more of the total schedule as computed above, then the
contingent compensation set forth in Section 2.2(a) above shall be deemed fully
vested.

               2.3 Stock Options. Company shall grant to Employee 125,000
additional non qualified options for the purchase of Company's common stock
pursuant to the terms and conditions of Company's Stock Option Plan and a new
Employee Stock Option Agreement consistent with the terms of Company's Stock
Option Plan and the terms of this Agreement. Company agrees that the exercise
price for said stock options shall be the price of Company's common stock at the
close of business on Friday, February 21, 1997. Company agrees that such plan
will provide for a vesting of the stock options over a four year period, with
the first 25% vesting on the first anniversary date of this Agreement, and the
balance vesting on an equal monthly basis over the remaining three (3) years,

[*] Certain information on this page has been omitted and filed separately with
    the Commission. Confidential treatment has been requested with respect to
    the omitted portions.

                                      -3-

<PAGE>
provided, that if Company exercises its Termination Rights under Section 6.5
below, Employee's stock options will be deemed fully vested.

[*] Certain information on this page has been omitted and filed separately with
    the Commission. Confidential treatment has been requested with respect to
    the omitted portions.

                                      -4-

<PAGE>
               2.4 Fringe Benefits. Employee shall be eligible to participate,
in accordance with their terms, in all medical and health plans, life insurance
and pension plans and such other employment benefits or programs (other than
executive bonus plans) as are maintained by Company for its employees provided
that Company shall at all times be free to modify or amend such plans on a
Company wide basis in accordance with the provisions thereof. Notwithstanding
the foregoing, in no event shall such fringe benefits (other than executive
bonus plans) be less favorable to Employee under those accorded to any other
employee of Company other than Steve Jobs.

               2.5 Paid Vacations. Employee shall be entitled to paid vacation
in accordance with the vacation policy of Company, but in no event less than
four (4) weeks per annum. Notwithstanding the foregoing, Employee shall not be
entitled to accrue any vacation time in any contract year in which Employee is
on Sabbatical. Employee may use up to two (2) weeks of previously accrued
vacation time in a contract year in which Employee takes a Sabbatical, but in no
event more than four (4) consecutive days at any one time during said contract
year.

               2.6 Sabbatical. Company shall allow Employee three (3)
consecutive months of time off ("Sabbatical") to be taken after the completion
of all Employee's services required by Company in accordance with this Agreement
on each Picture which Employee directs under this Agreement. Company and
Employee shall mutually determine the start date of the Sabbatical, which shall
be no later than twelve (12) months from the initial theatrical release of the
Picture directed by Employee, unless Employee otherwise agrees. Employee agrees
to contact Company to discuss business and creative matters no less frequently
than once during each month of the Sabbatical. During each Sabbatical, (i)
Employee shall be entitled to compensation in the full amount of Employee's then
current salary and benefits and (ii) all terms and conditions of this Agreement
(including, without limitation, exclusivity and vesting) shall remain in effect.

               2.7 Expenses. Company recognizes that in connection with
Employee's performance of Employee's duties and obligations hereunder Employee
will incur certain ordinary and necessary expenses of a business character
including, without limitation, travel and expenses relating to the Pictures.
Company shall reimburse Employee for all such reasonable business expenses upon
presentation of itemized statements of such expenses and appropriate
substantiation thereof, in each case in accordance with Company's standard
policies. With respect to business travel, Employee shall be treated no less
favorably in class of travel (with respect to commercial airlines, but excluding
private airplane transportation) and expenses than (i) other executives of
Company or (ii) any individual on the same business trip as Employee. All such
expenses shall be subject to the pre-approval of Company.

        3. WRITING SERVICES:

               3.1 Services. At Company's request, Employee shall render writing
services and supervisory services to create stories, treatments and screenplays
for the Pictures hereunder.

                                      -5-

<PAGE>
               3.2 Credits. In the event Employee creates the applicable story
and renders writing services in connection with any Picture, Employee shall
receive a "story by" credit, in first position, on screen in the end titles, or
the main titles if any other person receives credit in the main titles of the
Picture, (which credit may be shared with no more than three (3) other writers).
The Size (as hereinafter defined) of said credit shall be not less than 50% of
the Size of the regular title and no less than that accorded to any other
individual (other than principal cast members) receiving credit in connection
with the Picture. Additionally, Employee shall receive credit in the billing
block portion of paid advertising issued and controlled by Company or the
distributor (subject to the distributor's customary exclusions and restrictions
for animated pictures) in a Size not less than 35% of the regular title.
Notwithstanding the foregoing, Employee shall receive credit in excluded
advertising whenever a writer, producer, director, technical director or
executive producer receive credit in said billing block (other than award or
congratulatory ads). "Size" shall mean height, width and thickness. All other
characteristics of Employee's credit shall be at Company's sole discretion.
Notwithstanding the foregoing, the parties acknowledge that Employee will
receive a shared "Story By" writing credit on "Bugs" in third position behind
Andrew Stanton and Joe Ranft.

        4. EXECUTIVE PRODUCING SERVICES:

               4.1 Services. Employee shall render executive producing services
on a non-exclusive first priority basis on all Productions produced by Company
during the Term, other than with respect to those Productions which Employee
directs. Employee agrees to render all such services as required by Company in
accordance with this Agreement and customarily rendered by executive producers
of first class productions in the entertainment industry and to comply with all
reasonable instructions, requests, rules and regulations of Company in
connection therewith, whether or not the same involve matters of artistic taste
and judgment during the development, production and post production of the
Productions.

               4.2 Credits. As to each Production for which at least seventy
five percent (75%) of the actual production schedule was completed during the
Term and subject to Employee's full performance of all material executive
producing services and material obligations in connection therewith, and further
subject to the distributor's standard exclusions and exceptions as customarily
negotiated for deals of this nature, Company shall accord Employee the following
credit, on screen: Executive Producer, on a card which may be shared, which
credit shall be in first position of all other executive producer credits, and
which credit may be in the main titles (or end titles of the film if all other
individual credits are in the end titles). Said credit shall be no less than 50%
of the regular title and in Size of type of the title and no less than the Size
of type accorded to any other individual (other than the principal cast members)
of the Picture. In addition, Employee shall be entitled to receive credit in the
billing block portion of paid advertising issued or controlled by Company or the
distributor (subject to distributor's standard exceptions and exclusions as
customarily negotiated for deals of this nature) in a Size of type not less than
35% of the Size of type of the regular title of the Picture. Employee shall also
receive credit in excluded advertising in which a writer, producer, director,
technical director or

                                      -6-

<PAGE>
executive producer receive credit in said billing block (other than award or
congratulatory ads). All other characteristics of the foregoing credit shall be
subject to Company's sole discretion. Notwithstanding the foregoing, Employee
shall not be entitled to an executive producer credit on those Productions on
which Employee receives a "directed by" credit.

        5. DIRECTING SERVICES:

               5.1 Services.

                      (a) Employee shall render services in the capacity of the
director for three (3) Pictures during the Term, it being understood that
Employee's services for the third Picture are subject to subparagraph (b) below.
The parties acknowledge that the first Picture is "Bugs". Employee agrees to
render all such services as required by Company and customarily rendered by
directors of first-class feature length animated motion pictures in the motion
picture industry and to comply with all reasonable directions, requests, rules
and regulations of Company in connection therewith, whether or not the same
involve matters of artistic taste and judgment. If Company and Employee desire
to engage a co-director in connection with any Picture directed by Employee,
said co-director shall be subject to the approval of Employee, which approval
shall be exercised in Employee's sole discretion. Notwithstanding the foregoing,
if Company elects to proceed to production of a Picture during the Term and it
is reasonably anticipated by Company that the Term shall expire prior to
completion of Employee's directing services in connection therewith and Employee
and Company have not concluded an agreement for Employee's post term directing
services under subparagraph (b) below, then Company will have the right to
engage the services of a co-director in consultation with Employee. In any
event, such co-director will be subject to Employee's creative direction during
Employee's services as the director.

                      (b) Notwithstanding anything to the contrary contained
herein, if Company elects to proceed to production of a Picture during the Term
and it is reasonably anticipated by Company that the Term shall expire prior to
the completion of Employee's directing services in connection therewith (Company
and Employee specifically acknowledge that the third Picture may fall under this
category), either Company or Employee may initiate good faith negotiations for
post term directing services in connection with the applicable Picture (with the
salary and theatrical motion picture bonus set forth herein as a floor for such
directing services). If the parties are unable to reach an agreement after a
period of thirty (30) days from commencement of said negotiations ("Negotiation
Period"), Employee shall have the right by written notice to Company within five
(5) business days after expiration of the Negotiation Period to extend the Term
for up to six (6) months at then current salary level. If Employee fails to
submit such notice, the Term of this Agreement shall be extended on a
week-to-week basis until either party terminates upon seven (7) days written
notice.

               5.2 Credits. As to each Picture produced for which Employee
renders directing services, and subject to Employee's full performance of all
material directing services requested by Company in accordance with this
Agreement and material obligations in connection therewith, and

                                      -7-

<PAGE>
further subject to the distributor's standard exclusions and exceptions as
customarily negotiated for deals of this nature Company shall accord Employee
the following sole credit, on screen, on a separate card, in the end titles or
in the main titles if any other individual receives credit in the main titles:
"Directed by John Lasseter", which shall be the last card in the main titles or
the first card of individual credits in the end titles, subject to industry wide
collective bargaining agreements. Said credit shall be no less than 50% of the
regular title and in a Size of type not less than the Size of type accorded to
any other individual (other than the cast members) of the Picture. In addition,
Employee shall be entitled to receive credit in the billing block portion of
paid advertising (including packaging of video devices) issued or controlled by
Company or the distributors (subject to the distributor's standard exceptions
and exclusions and subject to the distributor's customary restrictions as
customarily negotiated for deals of this nature) in a Size of type not less than
35% of the Size of type of the regular title of the Picture and 20% of the
artwork title of the Picture. Employee shall also receive credit outside of the
billing block or in excluded advertising in which any individual (other than
principal cast members) receives credit in said excluded ads or outside the
billing block (other than award or congratulatory ads). All other
characteristics of the foregoing credit shall be subject to Company's sole
discretion.

               5.3 Delivery. With respect to each of the Pictures which Employee
directs, Employee, to the extent within Employee's control, shall comply with
the delivery and picture specification requirements of the distributor of the
Picture, of which Employee is informed in writing.

               5.4 Sequels/Remakes. If within twelve (12) years after the
initial release (if any) of the applicable Picture directed by Employee, Company
(or its successor and assigns) elects in its sole discretion to produce a
theatrical sequel, theatrical remake, television motion picture, mini-series or
series, or "made for video production" based on any of the Pictures directed by
Employee ("Subsequent Productions") then provided that the applicable Picture
was completed at a final negative cost not exceeding 110% of the approved budget
excluding the contingency (excluding excess cost incurred due to Force Majeure
events and other causes beyond Employee's control, changes pre-approved by
Company, net insurance recoveries and retroactive increases to scale personnel
under any collective bargaining agreement which are not reasonably anticipated),
that Employee is not in Default hereunder and provided further that Employee is
available when reasonably required by Company, then Employee shall have the
first opportunity to be the director for the Subsequent Production which, if
after the Term shall be upon terms to be negotiated in good faith within
Company's standard parameters. If Company and Employee fail to agree on the
terms for Employee's engagement on the Subsequent Productions within thirty (30)
days following commencement of the negotiations, or if Employee is unavailable
or elects not to direct, then Company shall have no further obligation to
Employee under this paragraph 5.4.

               5.5 Videocassette. If any Picture is produced and Employee
performs his services hereunder, Employee shall be entitled to receive one (1)
videocassette copy and one (1) laser disc copy of the Picture if and when
commercially available for release to the public.

                                      -8-

<PAGE>
               5.6 Premieres. Employee and his spouse shall be invited to all
major celebrity premieres of the Picture (if any) in the United States which he
directs and shall be entitled to payment of first class transportation and
expenses.

               5.7 No Union. The parties acknowledge that Company is not a
signatory to the DGA Basic Agreement and that the DGA Basic Agreement does not
currently apply to the Pictures.

               5.8 E&O Insurance. Company shall include Employee as an
additional insured on Company's errors and omissions insurance policy consistent
with custom and practice in the industry.

        6. GENERAL TERMS:

               6.1 Right to Insure. Company shall have the right to secure in
its own name, or otherwise, and at its own expense, life, health, accident or
other insurance covering Employee and Employee shall have no right, title or
interest in and to such insurance. Employee shall assist Company in procuring
such insurance by submitting to examinations and by signing such applications
and other instruments as may be required by the insurance carriers to which
application is made for any such insurance. If Company is unable to obtain such
insurance at customary rates and deductibles, Company shall have the right which
must be exercised if at all within sixty (60) days from the date of this
Agreement to terminate this Agreement.

               6.2 Noncompetitive Employment.

                      (a) Employee acknowledges that the nature of the services
furnished by Company to its clients requires that Employee at all times perform
Employee's services under this Agreement without divided loyalties or
obligations to any other person including, without limitation, to any person who
may become an employer of Employee following the end of the Term. Accordingly,
and without limiting the generality of the principle set forth in the preceding
sentence, it shall be a breach of this Agreement for Employee, without prior
written notice to and prior written consent of Company, to accept employment
with any business, individual, partnership, corporation, trust, joint venture,
unincorporated association or other entity or person other than the Company at
any time during the Term of this Agreement. During the Term, Employee may not
discuss, seek, solicit or accept future post Term employment.

                      (b) During the Term of this Agreement Employee shall not
become financially interested in (other than as a stockholder owning less than
one percent (1%) of the outstanding capital stock of any publicly traded
corporation) or directly associated with any other business or Person engaged in
a business that is involved in (i) developing, producing, distributing or
exploiting motion pictures, home videos, television programs, interactive
products or other audio visual works; (ii) the development, sale, licensing or
use of computer software for the creation or production of motion pictures, home
videos, television programs, interactive products or other audio visual works or
(iii) any other business that is competitive with the Company's business or
activities without the prior written consent of Company.

                                      -9-

<PAGE>
                      (c) After the expiration or termination of the Term for
any reason whatsoever, Employee shall not either alone or jointly with or on
behalf of others, either directly or indirectly, whether as principal, partner,
agent, shareholder, director, employee, consultant or otherwise, at any time
during the period of two (2) years following the expiration or termination of
the Term, offer employment to, or solicit the employment or engagement of, or
otherwise entice away from the employment of Company or Disney or any affiliated
entity, either for Employee's own account or for any other person, firm or
company, any person who is then employed by Company or Disney or any such
affiliated entity, whether or not such person would commit any breach of said
person's contract by reason of leaving the service of Company, Disney or any
affiliated entity.

               6.3 Nondisclosure Agreement. Employee acknowledges and confirms
his continuing obligations under the Non-Disclosure Agreement previously
executed by Company and Employee regarding confidentiality and inventions (the
"Confidentiality Agreement"). Employee further acknowledges that said
Confidentiality Agreement applies to the terms and conditions of the
co-production agreement between Company and Disney to the extent Employee has
knowledge of the terms and conditions thereof. To the extent of any
inconsistency between this Agreement and the Confidentiality Agreement, this
Agreement shall govern.

               6.4 Ownership. The results and proceeds of Employee's services
hereunder including, but not limited to, creating, designing, sketching,
animation, writing and/or directing in connection with ideas, stories,
screenplays and the Pictures, Productions or any other Pixar production's or
works shall be deemed a work-made-for-hire specially ordered or commissioned by
Company ("Results and Proceeds"). As between Employee and Company, Company shall
exclusively own all now known or hereafter existing rights of every kind
throughout the universe, in perpetuity and in all languages, pertaining to such
Results and Proceeds, and all elements therein, for all now known or hereafter
existing uses, media, and forms (including, without limitation, all copyrights
and renewals and extension thereof), motion picture, television, sequel, remake,
character and allied rights therein, and the foregoing is inclusive of a full
assignment to Company thereof. In addition, Company shall have the right,
throughout the world and in perpetuity, to use and reproduce, and license others
to use and reproduce, Employee's name, likeness and biographical data relating
to Employee in connection with the Picture and the advertising or exploitation
thereof (including without limitation, in promotional films and featurettes
relating to any Pictures or projects); provided that in no event shall Employee
be depicted as using or endorsing any product, commodity or service. The use of
Employee's credit in a billing block shall not be deemed a use or endorsement of
a product, commodity or service. Company shall have the right, but not the
obligation, to use, adapt, change or revise any work or product of Artist or any
part thereof or the title thereof and to combine the same with other material or
works and Employee hereby expressly waives any so-called "moral rights" of
authors in the world.

               6.5 Termination Without Cause. Company shall have the unilateral
right, at any time in the Company's sole and absolute discretion, to terminate
Employee's employment by the Company, without cause, and for any reason or for
no reason (the Company's "Termination Rights"). The Company's Termination Rights
are not limited or restricted by, and shall supersede, any policy of the

                                      -10-

<PAGE>
Company requiring or favoring continued employment of its employees during
satisfactory performance, any seniority system or any procedure governing the
manner in which the Company's discretion is to be exercised. No exercise by the
Company of its Termination Rights shall, under any circumstances, be deemed to
constitute (i) a breach by the Company of any term of this Agreement, express or
implied (including without limitation a breach of any implied covenant of good
faith and fair dealing), (ii) a wrongful discharge of Employee or a wrongful
termination of Employee's employment by the Company, (iii) a wrongful
deprivation by the Company of Employee's office (or authority, opportunities or
other benefits relating thereto), or injury to reputation, or (iv) the breach by
the Company of any other duty or obligation, express or implied, which the
Company may owe to Employee pursuant to any principle or provision of law
(whether contract or tort), unless the Company's determination to terminate
Employee pursuant to this Section 6.5 shall constitute a violation of any
applicable federal, state or municipal statute, ordinance, rule or regulation,
respecting which the parties may not contact otherwise. If the Company elects to
terminate Employee's employment pursuant to this Section 6.5, the Company shall
have no obligation or liability to Employee pursuant to this Agreement or
otherwise, except to (a) pay to Employee within ten (10) business days of the
exercise of the Termination Right an amount equal to seventy-five percent (75%)
of the balance of the Salary due to Employee under Section 2.1(b) through the
remainder of the Term, and (b) pay to Employee the vested portion of the
Theatrical Motion Picture Bonus as and if due pursuant to the terms of Section
2.2. Upon exercise of such Termination Right, Employee shall have no further
obligation to provide services to Company hereunder and Employee shall be free
to accept third party employment.

               6.6 Equitable Relief for Breach. Employee acknowledges that the
services to be rendered by Employee under the terms of this Agreement, and the
rights and privileges granted to Company by Employee under its terms, are of a
special, unique, unusual, extraordinary and intellectual character, which gives
them a peculiar value, the loss of which cannot be reasonably or adequately
compensated in damages in any action at law, and that a material breach by
Employee of any of the provisions contained in this Agreement will cause Company
great and irreparable injury and damage. Employee acknowledges that Company
shall be entitled, in addition to any other remedies it may have at law, to seek
the remedies of injunction, specific performance, and other equitable relief for
any breach of this Agreement by Employee. This provision shall not, however, be
construed as a waiver of any of the rights which Company may have for damages,
or otherwise.

               6.7 Breach By Company. In the event of any breach of this
Agreement by Company, Employee shall give Company written notice thereof. If
Company does not cure such breach within thirty (30) days of receiving written
notice thereof, Employee's remedy shall be limited to an action at law for
damages and/or declaratory relief and Employee shall not be entitled to rescind
this Agreement or to injunctive relief or other equitable remedies; provided,
however, the foregoing shall not be deemed a waiver of Employee's statutory or
common law right to discontinue rendering services hereunder in the event of a
material breach by Company of this Agreement. No inadvertent failure to comply
with the provisions of paragraphs 3.2, 4.2 or 5.2 nor any failure by third
parties to comply with their agreement with Company shall constitute a breach of
this Agreement by Company. Upon written notice from Employee specifying the
precise nature of the failure to accord credit as herein provided, Company
agrees to use reasonable efforts to cure prospectively any such breach, but
Company shall not be

                                      -11-

<PAGE>
obligated to recall any prints or advertising material. Company shall use good
faith business efforts to advise third party licensees of the credit obligations
to Employee under this Agreement. Notwithstanding the foregoing, Company will
contractually require Disney to comply with the credit obligations hereunder.

               6.8 Suspension/Termination.

                      (a) In the event of Employee's death during the Term,
Company shall terminate Employee's services and pay pursuant to paragraph 6.8(f)
below.

                      (b) If Employee is prevented from fully performing
Employee's material obligations hereunder by reason of illness, accident or
mental or physical disability, or by reason of any law or authority (all of
which events are herein called "Incapacity"), Company may suspend the services
and compensation of Employee during the period of such Incapacity and/or extend
the Term of Employee's services hereunder for a period of time equal to the
period of such suspension. In the event such Incapacity continues for a period
of fourteen (14) consecutive days or twenty-one (21) days in the aggregate while
Employee is rendering directing services during production of any Picture
hereunder or six (6) consecutive weeks or ten (10) weeks in the aggregate, at
any other time hereunder, Company may terminate the employment of Employee's
services by giving thirty (30) days prior written notice to Employee.

                      (c) The Company may terminate this Agreement immediately
upon written notice to Employee for an event of "Default." For purposes of this
Agreement, a termination for "Default" occurs if Employee is terminated for any
of the following reasons:

                             (i) Gross negligence by Employee of his duties
pursuant to this Agreement.

                             (ii) Conviction of Employee of any felony or any
lesser crime or offense involving the property of Company.

                             (iii) Any material breach by Employee of any of the
terms or covenants of this Agreement, it being understood that Employee shall
have a period of five (5) days from written notice from Company to cure an
alleged breach.

                      (d) The unearned salary provided for hereunder to Employee
may, at Company's option, be suspended during any interruption of Company's
business which prevents the performance of Employee's duties which has been
caused by an event of force majeure, including, but not limited to, strikes,
work stoppage or other labor dispute, acts of God, or other events of force
majeure ("Force Majeure"). If any such period of suspension hereunder shall
continue for a period of six (6) weeks or more, Company or Employee shall have
the right to elect to terminate this Agreement by written notice. In the event
Employee elects to submit a notice of termination, said election shall be deemed
null and void if Company elects to resume its payment obligations to Employee
with one (1)

                                      -12-

<PAGE>
week of Company's receipt of said notice. If this Agreement is terminated due to
an event of Force Majeure and Company elects to thereafter resume production of
the applicable Picture within eighteen (18) months, Employee shall have the
first opportunity upon fifteen (15) business days prior notice to the start date
to be reinstated as the director under the terms and conditions of this
Agreement. During any suspension for an event of Force Majeure, Employee's
services to Company shall be on a non-exclusive basis.

                      (e) In the event of any such suspension or suspensions
hereunder, the Term of this Agreement shall be extended (unless earlier
terminated as provided above) for an additional period of time equal to the
period of such suspension or suspensions, and the dates for any increase in
salary provided for herein shall be correspondingly postponed.

                      (f) In the event of Employee's termination for death,
Incapacity, Default or Force Majeure pursuant to subsections (a), (b), (c) or
(d) above, Company shall be obligated to pay Employee only the specified salary,
bonuses, fringe benefits, expenses and vacation accrued through the date of
termination and any rights Employee may have under the Stock Option Plan shall
be determined under the terms thereof.

               6.9 Assignment. Company may not assign its rights under this
contract unless to a company which acquires all or substantially all of
Company's assets or to a single purpose production entity which is formed by
Company for purposes of producing the Pictures (in which event Company may only
assign Employee's services and Company shall remain liable for all obligations
of said single purpose entity), without Employee's consent. This Agreement is
personal to Employee and Employee shall not have the right to assign Employee's
interest in this Agreement, any rights under this Agreement or any duties
imposed under this Agreement nor shall Employee have the right to pledge,
hypothecate or otherwise encumber Employee's right to receive compensation
hereunder without the prior written notice to Company.

               6.10 Successors and Assigns. This Agreement shall be binding upon
and inure to the benefit of the parties hereto and their respective successors
and assigns.

               6.11 Notices. Any notice, consent or other communication under
this Agreement shall be in writing and shall be considered given when mailed by
registered or certified mail, postage prepaid, to the parties at the addresses
set forth below (or at such other address as a party may specify by notice in
accordance with the provisions hereof to the other).

                      Company:

                      PIXAR
                      1001 W. Cutting Boulevard #200
                      Richmond, CA 94804-2452

                      With a copy to:

                                      -13-

<PAGE>
                      Ziffren, Brittenham, Branca & Fischer
                      2121 Avenue of the Stars
                      32nd Floor
                      Los Angeles, CA 90067
                      Attention: Sam Fischer, Esq.

                      John Lasseter
                      590 Daniel Young Dr.
                      Sonoma, CA 95476

                      With a copy to:

                      Crosby, Heafey, Roach & May
                      700 S. Flower
                      Suite 2200
                      Los Angeles, CA 90017
                      Attention: Nancy Newhouse Porter

               6.12 Governing Law. This Agreement shall be governed by and
construed and enforced in accordance with the laws of the State of California
(regardless of that jurisdiction or any other jurisdictions' choice of law
principles).

               6.13 Complete Agreement, Modification and Termination. This
agreement, along with the Stock Option Plan, and the Confidentiality Agreement,
contains a complete statement of all the arrangements between the parties with
respect to Employee's employment by Company, supersedes all existing agreements,
whether written or oral, between them concerning Employee's employment, and may
be changed only in a writing executed by all parties hereto. In entering into
this Agreement, neither party has relied upon any representation, warranty,
assurance or statement of intention not expressly set forth herein.

               6.14 Validity. If any one or more of the provisions (or any part
thereof) of this Agreement shall be held to be invalid, illegal or unenforceable
in any respect, the validity, legality and enforceability of the remaining
provisions (or any part thereof) shall not in any way be affected or impaired
thereby.

               6.15 Waiver. The failure of a party to insist upon strict
adherence to any term, condition or other provision of this Agreement shall not
be considered a waiver or deprive that party of the right thereafter to insist
upon strict adherence to that term or any other term, condition or other
provision of this Agreement.

               6.16 Commitment to Others. Employee shall not have any right or
authority to and shall not employ any person in any capacity nor contract or
purchase or rent any article or material, nor

                                      -14-

<PAGE>
make any commitment, agreement or obligation whereby Company shall be required
to pay any monies or other consideration without Company's prior consent in each
instance.

               6.17 I-9. All of Company's obligations under this Agreement are
expressly conditioned upon Employee's completion to Company's reasonable
satisfaction of an I-9 Form (Employee Eligibility Verification Form) and upon
Employee's submission to Company of original documents reasonably satisfactory
to Company to demonstrate Employee's employment eligibility.

               6.18 Headings. The headings of this Agreement are solely for
convenience of reference and shall not affect its interpretation.

               6.19 Arbitration. Any controversy or claim arising out of, or
relating to, this Agreement, or the making, performance or interpretation
thereof, shall be fully and finally settled by binding arbitration in San
Francisco, California, in accordance with the rules of the American Arbitration
Association the existing, and judgment on the arbitration award may be entered
in any court having jurisdiction over the subject matter of the controversy;
provided, however, that this arbitration provision shall not apply to any
dispute concerning any obligations arising under paragraphs 6.2, 6.3 and 6.4 of
this Agreement.

               6.20 Indemnity. Company shall indemnify and hold harmless
Employee from and against any and all liability, costs, damages and expenses
(including reasonable attorneys' fees and court costs) which Employee may
sustain or suffer by reason of any third party claim resulting from the
development, production or distribution of the Picture and which is not caused
by a breach by Employee hereunder.

               6.21 EMPLOYEE ACKNOWLEDGES THAT HE HAS HAD THE OPPORTUNITY TO
CONSULT WITH THE ADVISOR OF HIS CHOICE AND THAT HE HAS FREELY AND VOLUNTARILY
ENTERED INTO THIS AGREEMENT.

        IN WITNESS WHEREOF, the parties have executed this Agreement as of
February 23, 1997.

                                      PIXAR

                                      By /s/ Steve Jobs
                                         --------------------------------

                                      EMPLOYEE

                                      /s/ John Lasseter
                                      -----------------------------------
                                      JOHN LASSETER

                                      -15-<PAGE>

                                                                    EXHIBIT 4.01

                          VERITAS SOFTWARE CORPORATION
                           1993 EQUITY INCENTIVE PLAN

           AS ADOPTED OCTOBER 1, 1993, AND AS AMENDED APRIL 22, 1994,
              APRIL 20, 1995, JANUARY 12, 1997 AND JANUARY 26, 1999

      1. PURPOSE. The purpose of the Plan is to provide incentives to attract,
retain and motivate eligible persons whose present and potential contributions
are important to the success of the Company, its Parent, Subsidiaries and
Affiliates, by offering them an opportunity to participate in the Company's
future performance through awards of Options, Restricted Stock and Stock
Bonuses. Capitalized terms not defined in the text are defined in Section 24.

      2. SHARES SUBJECT TO THE PLAN.

            2.1 Number of Shares Available. Subject to Sections 2.2 and 18, the
total number of Shares reserved and available for grant and issuance pursuant to
the Plan shall be 125,341,602(i) Shares. In addition, on each January 1, the
aggregate number of shares of the Company's Common Stock reserved for issuance
under this Plan shall be increased automatically by a number of shares equal to
four and one-half percent (4 1/2%) of the total outstanding shares of the
Company as of the immediately preceding December 31; provided, however, that
such increase shall in no event exceed 36,000,000 shares per year. Any Shares
issuable upon exercise of options granted pursuant to the Company's 1991
Executive Stock Option Plan, and the Company's 1985 Stock Option Plan (the
"Prior Plans") that expire or become unexercisable for any reason without having
been exercised in full, shall no longer be available for distribution under the
Prior Plans, but shall be available for distribution under this Plan. Subject to
Sections 2.2 and 18, Shares shall again be available for grant and issuance in
connection with future Awards under the Plan that: (a) are subject to issuance
upon exercise of an Option but cease to be subject to such Option for any reason
other than exercise of such Option, (b) are subject to an Award granted
hereunder but are forfeited or are repurchased by the Company at the original
issue price, or (c) are subject to an Award that otherwise terminates without
Shares being issued. The total number of Shares issued under the Plan upon
exercise of ISOs will in no event exceed 225,000,000 Shares (adjusted in
proportion to any adjustment under Section 2.2 below) over the term of the Plan.

            2.2 Adjustment of Shares. In the event that the number of
outstanding Shares is changed by a stock dividend, recapitalization, stock
split, reverse stock split, subdivision, combination, reclassification or
similar change in the capital structure of the Company without consideration,
then (a) the number of Shares reserved for issuance under the Plan, (b) the
Exercise Prices of and number of Shares subject to outstanding Options, and (c)
the number of Shares subject to other outstanding Awards shall be
proportionately adjusted, subject to any required action by the Board or the
shareholders of the Company and compliance with applicable securities laws;
provided, however, that fractions of a Share shall not be issued but shall
either be paid in cash at Fair Market Value or shall be rounded down to the
nearest Share, as determined by the Committee; and provided, further, that the
Exercise Price of any Option may not be decreased to below the par value of the
Shares.

      3. ELIGIBILITY. ISOs (as defined in Section 5 below) may be granted only
to employees (including officers and directors who are also employees) of the
Company or of a Parent or Subsidiary of the Company. All other Awards may be
granted to employees, officers, directors, consultants, independent contractors
and advisers of the Company or any Parent, Subsidiary or Affiliate of the
Company; provided such consultants, contractors and advisers render bona fide
services not in connection with the offer and sale of securities in a
capital-raising transaction.

----------

(i) Includes 18,211,411 shares pursuant to the provision for automatic annual
increase, effective January 1, 2002.

<PAGE>

"Named Executive Officers" (as that term is defined in Item 402(a)(3) of
Regulation S-K promulgated under the Exchange Act) shall each be eligible to
receive up to an aggregate maximum of 3,037,500 Shares at any time during the
term of this Plan pursuant to the grant of Awards hereunder, not to exceed
3,037,500 Shares during any one twelve (12) month period. A person may be
granted more than one Award under the Plan.

      4. ADMINISTRATION.

            4.1 Committee Authority. The Plan shall be administered by the
Committee or the Board acting as the Committee. Subject to the general purposes,
terms and conditions of the Plan, and to the direction of the Board, the
Committee shall have full power to implement and carry out the Plan. The
Committee shall have the authority to:

            (a)   construe and interpret the Plan, any Award Agreement and any
                  other agreement or document executed pursuant to the Plan;

            (b)   prescribe, amend and rescind rules and regulations relating to
                  the Plan;

            (c)   select persons to receive Awards;

            (d)   determine the form and terms of Awards;

            (e)   determine the number of Shares or other consideration subject
                  to Awards;

            (f)   determine whether Awards will be granted singly, in
                  combination, in tandem, in replacement of, or as alternatives
                  to, other Awards under the Plan or any other incentive or
                  compensation plan of the Company or any Parent, Subsidiary or
                  Affiliate of the Company;

            (g)   grant waivers of Plan or Award conditions;

            (h)   determine the vesting, exercisability and payment of Awards;

            (i)   correct any defect, supply any omission, or reconcile any
                  inconsistency in the Plan, any Award or any Award Agreement;

            (j)   determine whether an Award has been earned; and

            (k)   make all other determinations necessary or advisable for the
                  administration of the Plan.

            4.2 Committee Discretion. Any determination made by the Committee
with respect to any Award shall be made in its sole discretion at the time of
grant of the Award or, unless in contravention of any express term of the Plan
or Award, at any later time, and such determination shall be final and binding
on the Company and all persons having an interest in any Award under the Plan.
The Committee may delegate to one or more officers of the Company the authority
to grant an Award under the Plan to Participants who are not Insiders of the
Company, provided such officer is a member of the Board.

            4.3 Compliance With Code Section 162m. If two or more members of the
Board are Outside Directors, the Committee shall be comprised of at least two
members of the Board, all of whom are Outside Directors.

      5. OPTIONS. The Committee may grant Options to eligible persons and shall
determine whether such Options shall be Incentive Stock Options within the
meaning of the Code ("ISOs") or Nonqualified Stock Options ("NQSOs"), the number
of Shares subject to the Option, the Exercise Price of the Option, the period
during which the Option may be exercised, and all other terms and conditions of
the Option, subject to the following:

            5.1 Form of Option Grant. Each Option granted under the Plan shall
be evidenced by an Award Agreement which shall expressly identify the Option as
an ISO or NQSO ("Stock Option Agreement"), and be in such

                                       2
<PAGE>

form and contain such provisions (which need not be the same for each
Participant) as the Committee shall from time to time approve, and which shall
comply with and be subject to the terms and conditions of the Plan.

            5.2 Date of Grant. The date of grant of an Option shall be the date
on which the Committee makes the determination to grant such Option, unless
otherwise specified by the Committee. The Stock Option Agreement and a copy of
the Plan will be delivered to the Participant within a reasonable time after the
granting of the Option.

            5.3 Exercise Period. Options shall be exercisable within the times
or upon the events determined by the Committee as set forth in the Stock Option
Agreement; provided, however, that no Option shall be exercisable after the
expiration of one hundred twenty (120) months from the date the Option is
granted, and provided further that no Option granted to a person who directly or
by attribution owns more than ten percent (10%) of the total combined voting
power of all classes of stock of the Company or any Parent or Subsidiary of the
Company ("Ten Percent Shareholder") shall be exercisable after the expiration of
five (5) years from the date the Option is granted. The Committee also may
provide for the exercise of Options to become exercisable at one time or from
time to time, periodically or otherwise, in such number or percentage as the
Committee determines.

            5.4 Exercise Price. The Exercise Price shall be determined by the
Committee when the Option is granted and may be not less than 85% of the Fair
Market Value of the Shares on the date of grant; provided that (i) the Exercise
Price of an ISO shall be not less than 100% of the Fair Market Value of the
Shares on the date of grant and (ii) the Exercise Price of any Option granted to
a Ten Percent Shareholder shall not be less than 110% of the Fair Market Value
of the Shares on the date of grant. Payment for the Shares purchased may be made
in accordance with Section 8 of the Plan.

            5.5 Method of Exercise. Options may be exercised only by delivery to
the Company or its designee of a written stock option exercise agreement (the
"Exercise Agreement") in a form approved by the Committee (which need not be the
same for each Participant), stating the number of Shares being purchased, the
restrictions imposed on the Shares, if any, and such representations and
agreements regarding Participant's investment intent and access to information,
if any, as may be required or desirable by the Company to comply with applicable
securities laws, together with payment in full of the Exercise Price for the
number of Shares being purchased.

            5.6 Termination. Notwithstanding the exercise periods set forth in
the Stock Option Agreement, exercise of an Option shall always be subject to the
following:

            (a)   If the Participant is Terminated for any reason except death
                  or Disability, then Participant may exercise such
                  Participant's Options only to the extent that such Options
                  would have been exercisable upon the Termination Date no later
                  than ninety (90) days after the Termination Date (or such
                  shorter time period as may be specified in the Stock Option
                  Agreement), but in any event, no later than the expiration
                  date of the Options.

            (b)   If the Participant is terminated because of death or
                  Disability (or the participant dies within three months of
                  such termination), then Participant's Options may be exercised
                  only to the extent that such Options would have been
                  exercisable by Participant on the Termination Date and must be
                  exercised by Participant (or Participant's legal
                  representative or authorized assignee) no later than twelve
                  (12) months after the Termination Date (or such shorter time
                  period as may be specified in the Stock Option Agreement), but
                  in any event no later than the expiration date of the Options.

            5.7 Limitations on Exercise. The Committee may specify a reasonable
minimum number of Shares that may be purchased on any exercise of an Option,
provided that such minimum number will not prevent Participant from exercising
the Option for the full number of Shares for which it is then exercisable.

            5.8 Limitations on ISOs. The aggregate Fair Market Value (determined
as of the date of grant) of Shares with respect to which ISOs are exercisable
for the first time by a Participant during any calendar year (under

                                       3
<PAGE>

the Plan or under any other incentive stock option plan of the Company or any
Affiliate, Parent or Subsidiary of the Company) shall not exceed $100,000. If
the Fair Market Value of Shares on the date of grant with respect to which ISOs
are exercisable for the first time by a Participant during any calendar year
exceeds $100,000, the Options for the first $100,000 worth of Shares to become
exercisable in such calendar year shall be ISOs and the Options for the amount
in excess of $100,000 that become exercisable in that calendar year shall be
NQSOs. In the event that the Code or the regulations promulgated thereunder are
amended after the Effective Date of the Plan to provide for a different limit on
the Fair Market Value of Shares permitted to be subject to ISOs, such different
limit shall be automatically incorporated herein and shall apply to any Options
granted after the effective date of such amendment.

            5.9 Modification, Extension or Renewal. The Committee may modify,
extend or renew outstanding Options and authorize the grant of new Options in
substitution therefor, provided that any such action may not, without the
written consent of Participant, impair any of Participant's rights under any
Option previously granted. Any outstanding ISO that is modified, extended,
renewed or otherwise altered shall be treated in accordance with Section 424(h)
of the Code. The Committee may reduce the Exercise Price of outstanding Options
without the consent of Participants affected by a written notice to them;
provided, however, that the Exercise Price may not be reduced below the minimum
Exercise Price that would be permitted under Section 5.4 of the Plan for Options
granted on the date the action is taken to reduce the Exercise Price; provided,
further, that the Exercise Price shall not be reduced below the par value of the
Shares, if any.

            5.10 No Disqualification. Notwithstanding any other provision in the
Plan, no term of the Plan relating to ISOs shall be interpreted, amended or
altered, nor shall any discretion or authority granted under the Plan be
exercised, so as to disqualify the Plan under Section 422 of the Code or,
without the consent of the Participant affected, to disqualify any ISO under
Section 422 of the Code.

      6. RESTRICTED STOCK. A Restricted Stock Award is an offer by the Company
to sell to an eligible person Shares that are subject to restrictions. The
Committee shall determine to whom an offer will be made, the number of Shares
the person may purchase, the price to be paid (the "Purchase Price"), the
restrictions to which the Shares shall be subject, and all other terms and
conditions of the Restricted Stock Award, subject to the following:

            6.1 Form of Restricted Stock Award. All purchases under a Restricted
Stock Award made pursuant to the Plan shall be evidenced by an Award Agreement
("Restricted Stock Purchase Agreement") that shall be in such form (which need
not be the same for each Participant) as the Committee shall from time to time
approve, and shall comply with and be subject to the terms and conditions of the
Plan. The offer of Restricted Stock shall be accepted by the Participant's
execution and delivery of the Restricted Stock Purchase Agreement and full
payment for the Shares to the Company within thirty (30) days from the date the
Restricted Stock Purchase Agreement is delivered to the person. If such person
does not execute and deliver the Restricted Stock Purchase Agreement along with
full payment for the Shares to the Company within thirty (30) days, then the
offer shall terminate, unless otherwise determined by the Committee.

            6.2 Purchase Price. The Purchase Price of Shares sold pursuant to a
Restricted Stock Award shall be determined by the Committee and shall be at
least 85% of the Fair Market Value of the Shares when the Restricted Stock Award
is granted, except in the case of a sale to a Ten Percent Shareholder, in which
case the Purchase Price shall be 100% of the Fair Market Value. Payment of the
Purchase Price may be made in accordance with Section 8 of the Plan.

            6.3 Restrictions. Restricted Stock Awards shall be subject to such
restrictions as the Committee may impose. The Committee may provide for the
lapse of such restrictions in installments and may accelerate or waive such
restrictions, in whole or part, based on length of service, performance or such
other factors or criteria as the Committee may determine.

      7. STOCK BONUSES.

            7.1 Awards of Stock Bonuses. A Stock Bonus is an award of Shares
(which may consist of Restricted Stock) for services rendered to the Company or
any Parent, Subsidiary or Affiliate of the Company. A Stock Bonus may be awarded
for past services already rendered to the Company, or any Parent, Subsidiary or
Affiliate of the Company pursuant to an Award Agreement (the "Stock Bonus
Agreement") that shall be in such form (which

                                       4
<PAGE>

need not be the same for each Participant) as the Committee shall from time to
time approve, and shall comply with and be subject to the terms and conditions
of the Plan. A Stock Bonus may be awarded upon satisfaction of such performance
goals as are set out in advance in Participant's individual Award Agreement (the
"Performance Stock Bonus Agreement") that shall be in such form (which need not
be the same for each Participant) as the Committee shall from time to time
approve, and shall comply with and be subject to the terms and conditions of the
Plan. Stock Bonuses may vary from Participant to Participant and between groups
of Participants, and may be based upon the achievement of the Company, Parent,
Subsidiary or Affiliate and/or individual performance factors or upon such other
criteria as the Committee may determine.

            7.2 Terms of Stock Bonuses. The Committee shall determine the number
of Shares to be awarded to the Participant and whether such Shares shall be
Restricted Stock. If the Stock Bonus is being earned upon the satisfaction of
performance goals pursuant to a Performance Stock Bonus Agreement, then the
Committee shall determine: (a) the nature, length and starting date of any
period during which performance is to be measured (the "Performance Period") for
each Stock Bonus; (b) the performance goals and criteria to be used to measure
the performance, if any; (c) the number of Shares that may be awarded to the
Participant; and (d) the extent to which such Stock Bonuses have been earned.
Performance Periods may overlap and Participants may participate simultaneously
with respect to Stock Bonuses that are subject to different Performance Periods
and different performance goals and other criteria. The number of Shares may be
fixed or may vary in accordance with such performance goals and criteria as may
be determined by the Committee. The Committee may adjust the performance goals
applicable to the Stock Bonuses to take into account changes in law and
accounting or tax rules and to make such adjustments as the Committee deems
necessary or appropriate to reflect the impact of extraordinary or unusual
items, events or circumstances to avoid windfalls or hardships.

            7.3 Form of Payment. The earned portion of a Stock Bonus may be paid
currently or on a deferred basis with such interest or dividend equivalent, if
any, as the Committee may determine. Payment may be made in the form of cash,
whole Shares, including Restricted Stock, or a combination thereof, either in a
lump sum payment or in installments, all as the Committee shall determine.

            7.4 Termination During Performance Period. If a Participant is
Terminated during a Performance Period for any reason, then such Participant
shall be entitled to payment (whether in Shares, cash or otherwise) with respect
to the Stock Bonus only to the extent earned as of the date of Termination in
accordance with the Performance Stock Bonus Agreement, unless the Committee
shall determine otherwise.

      8. PAYMENT FOR SHARE PURCHASES.

            8.1 Payment. Payment for Shares purchased pursuant to the Plan may
be made in cash (by check) or, where expressly approved for the Participant by
the Committee and where permitted by law:

            (a)   by cancellation of indebtedness of the Company to the
                  Participant;

            (b)   by surrender of Shares that either: (1) have been owned by
                  Participant for more than six (6) months and have been paid
                  for within the meaning of SEC Rule 144 (and, if such shares
                  were purchased from the Company by use of a promissory note,
                  such note has been fully paid with respect to such Shares); or
                  (2) were obtained by Participant in the public market;

            (c)   by tender of a full recourse promissory note having such terms
                  as may be approved by the Committee and bearing interest at a
                  rate sufficient to avoid imputation of income under Sections
                  483 and 1274 of the Code; provided, however, that Participants
                  who are not employees of the Company shall not be entitled to
                  purchase Shares with a promissory note unless the note is
                  adequately secured by collateral other than the Shares;
                  provided, further, that the portion of the Purchase Price
                  equal to the par value of the Shares, if any, must be paid in
                  cash;

            (d)   by waiver of compensation due or accrued to Participant for
                  services rendered;

            (e)   by tender of property;

                                       5
<PAGE>

            (f)   with respect only to purchases upon exercise of an Option, and
                  provided that a public market for the Company's stock exists:

                  (1)   through a "same day sale" commitment from Participant
                        and a broker-dealer that is a member of the National
                        Association of Securities Dealers (a "NASD Dealer")
                        whereby Participant irrevocably elects to exercise the
                        Option and to sell a portion of the Shares so purchased
                        to pay for the Exercise Price, and whereby the NASD
                        Dealer irrevocably commits upon receipt of such Shares
                        to forward the Exercise Price directly to the Company;
                        or

                  (2)   through a "margin" commitment from Participant and a
                        NASD Dealer whereby Participant irrevocably elects to
                        exercise the Option and to pledge the Shares so
                        purchased to the NASD Dealer in a margin account as
                        security for a loan from the NASD Dealer in the amount
                        of the Exercise Price, and whereby the NASD Dealer
                        irrevocably commits upon receipt of such Shares to
                        forward the Exercise Price directly to the Company;

            or

            (g)   by any combination of the foregoing.

            8.2 Loan Guarantees. The Committee may help the Participant pay for
Shares purchased under the Plan by authorizing a guarantee by the Company of a
third-party loan to the Participant.

      9. WITHHOLDING TAXES.

            9.1 Withholding Generally. Whenever Shares are to be issued in
satisfaction of Awards granted under the Plan, the Company may require the
Participant to remit to the Company an amount sufficient to satisfy federal,
state and local withholding tax requirements prior to the delivery of any
certificate or certificates for such Shares. Whenever, under the Plan, payments
in satisfaction of Awards are to be made in cash, such payment shall be net of
an amount sufficient to satisfy federal, state, and local withholding tax
requirements.

            9.2 Stock Withholding. When, under applicable tax laws, a
Participant incurs tax liability in connection with the exercise or vesting of
any Award that is subject to tax withholding and the Participant is obligated to
pay the Company the amount required to be withheld, the Committee may in its
sole discretion allow the Participant to satisfy the minimum withholding tax
obligation by electing to have the Company withhold from the Shares to be issued
that minimum number of Shares having a Fair Market Value equal to the minimum
amount required to be withheld, determined on the date that the amount of tax to
be withheld is to be determined; but in no event will the Company withhold
Shares if such withholding would result in adverse accounting consequences to
the Company. All elections by a Participant to have Shares withheld for this
purpose will be made in accordance with the requirements established by the
Committee for such elections and be in writing in a form acceptable to the
Committee.

      10. PRIVILEGES OF STOCK OWNERSHIP.

            10.1 Voting and Dividends. No Participant shall have any of the
rights of a shareholder with respect to any Shares until the Shares are issued
to the Participant. After Shares are issued to the Participant, the Participant
shall be a shareholder and have all the rights of a shareholder with respect to
such Shares, including the right to vote and receive all dividends or other
distributions made or paid with respect to such Shares; provided, that if such
Shares are Restricted Stock, then any new, additional or different securities
the Participant may become entitled to receive with respect to such Shares by
virtue of a stock dividend, stock split or any other change in the corporate or
capital structure of the Company shall be subject to the same restrictions as
the Restricted Stock; provided, further,

                                       6
<PAGE>

that the Participant shall have no right to retain such dividends or
distributions with respect to Shares that are repurchased at the Participant's
original Purchase Price pursuant to Section 12.

            10.2 Financial Statements. The Company shall provide financial
statements to each Participant prior to such Participant's purchase of Shares
under the Plan, and to each Participant annually during the period such
Participant has Options outstanding; provided, however, the Company shall not be
required to provide such financial statements to Participants whose services in
connection with the Company assure them access to equivalent information.

      11. TRANSFERABILITY. Awards granted under the Plan, and any interest
therein, shall not be transferable or assignable by Participant, and may not be
made subject to execution, attachment or similar process, otherwise than by will
or by the laws of descent and distribution or as consistent with the specific
Plan and Award Agreement provisions relating thereto. During the lifetime of the
Participant an Award shall be exercisable only by the Participant, and any
elections with respect to an Award, may be made only by the Participant.

      12. RESTRICTIONS ON SHARES. At the discretion of the Committee, the
Company may reserve to itself and/or its assignee(s) in the Award Agreement a
right to repurchase a portion of or all Shares which have not yet vested that
are held by a Participant following such Participant's Termination at any time
within ninety (90) days after the later of Participant's Termination Date and
the date Participant purchases Shares under this Plan, for cash and/or
cancellation of purchase money indebtedness, at the Participant's Exercise Price
or Purchase Price, as the case may be.

      13. CERTIFICATES. All certificates for Shares or other securities
delivered under the Plan shall be subject to such stock transfer orders, legends
and other restrictions as the Committee may deem necessary or advisable,
including restrictions under any applicable federal, state or foreign securities
law, or any rules, regulations and other requirements of the SEC or any stock
exchange or automated quotation system upon which the Shares may be listed.

      14. ESCROW; PLEDGE OF SHARES. To enforce any restrictions on a
Participant's Shares, the Committee may require the Participant to deposit all
certificates, together with stock powers or other instruments of transfer
approved by the Committee, appropriately endorsed in blank, with the Company or
an agent designated by the Company to hold in escrow until such restrictions
have lapsed or terminated, and the Committee may cause a legend or legends
referencing such restrictions to be placed on the certificates. Any Participant
who is permitted to execute a promissory note as partial or full consideration
for the purchase of Shares under the Plan shall be required to pledge and
deposit with the Company all or part of the Shares so purchased as collateral to
secure the payment of Participant's obligation to the Company under the
promissory note; provided, however, that the Committee may require or accept
other or additional forms of collateral to secure the payment of such obligation
and, in any event, the Company shall have full recourse against the Participant
under the promissory note notwithstanding any pledge of the Participant's Shares
or other collateral. In connection with any pledge of the Shares, Participant
shall be required to execute and deliver a written pledge agreement in such form
as the Committee shall from time to time approve. The Shares purchased with the
promissory note may be released from the pledge on a prorata basis as the
promissory note is paid.

      15. EXCHANGE AND BUYOUT OF AWARDS. The Committee may, at any time or from
time to time, authorize the Company, with the consent of the respective
Participants, to issue new Awards in exchange for the surrender and cancellation
of any or all outstanding Awards. The Committee may at any time buy from a
Participant an Award previously granted with payment in cash, Shares (including
Restricted Stock) or other consideration, based on such terms and conditions as
the Committee and the Participant shall agree.

      16. SECURITIES LAW AND OTHER REGULATORY COMPLIANCE. An Award shall not be
effective unless such Award is in compliance with all applicable federal and
state securities laws, rules and regulations of any governmental body, and the
requirements of any stock exchange or automated quotation system upon which the
Shares may then be listed, as they are in effect on the date of grant of the
Award and also on the date of exercise or other issuance. Notwithstanding any
other provision in the Plan, the Company shall have no obligation to issue or
deliver certificates for Shares under the Plan prior to (a) obtaining any
approvals from governmental agencies that the Company determines are necessary
or advisable, and/or (b) completion of any registration or other qualification
of such shares under any state or federal law or ruling of any governmental body
that the Company determines to be

                                       7
<PAGE>

necessary or advisable. The Company shall be under no obligation to register the
Shares with the SEC or to effect compliance with the registration, qualification
or listing requirements of any state securities laws, stock exchange or
automated quotation system, and the Company shall have no liability for any
inability or failure to do so.

      17. NO OBLIGATION TO EMPLOY. Nothing in the Plan or any Award granted
under the Plan shall confer or be deemed to confer on any Participant any right
to continue in the employ of, or other relationship with, the Company or any
Parent, Subsidiary or Affiliate of the Company or limit in any way the right of
the Company or any Parent, Subsidiary or Affiliate of the Company to terminate
Participant's employment or other relationship at any time, with or without
cause.

      18. CORPORATE TRANSACTIONS.

            18.1 Assumption or Replacement of Awards by Successor. In the event
of (a) a merger or consolidation in which the Company is not the surviving
corporation (other than a merger or consolidation with a wholly-owned
subsidiary, a reincorporation of the Company in a different jurisdiction, or
other transaction in which there is no substantial change in the shareholders of
the Company and the Awards granted under the Plan are assumed or replaced by the
successor corporation, which assumption shall be binding on all Participants),
(b) a dissolution or liquidation of the Company, (c) the sale of substantially
all of the assets of the Company, or (d) any other transaction which qualifies
as a "corporate transaction" under Section 424(a) of the Code wherein the
shareholders of the Company give up all of their equity interest in the Company
(except for the acquisition, sale or transfer of all or substantially all of the
outstanding shares of the Company), any or all outstanding Awards may be assumed
or replaced by the successor corporation, which assumption or replacement shall
be binding on all Participants. In the alternative, the successor corporation
may substitute equivalent Awards or provide substantially similar consideration
to Participants as was provided to shareholders (after taking into account the
existing provisions of the Awards). The successor corporation may also issue, in
place of outstanding Shares of the Company held by the Participant,
substantially similar shares or other property subject repurchase restrictions
no less favorable to the Participant.

            18.2 Expiration of Options. In the event such successor corporation,
if any, refuses to assume or substitute the Options, as provided above, pursuant
to a transaction described in Subsection 18.1(a) above, such Options shall
expire on such transaction at such time and on such conditions as the Board
shall determine. In the event such successor corporation, if any, refuses to
assume or substitute the Options as provided above, pursuant to a transaction
described in Subsections 18.1(b), (c) or (d) above, or there is no successor
corporation, and if the Company ceases to exist as a separate corporate entity,
then, notwithstanding any contrary terms in the Award Agreement, the Options
shall expire on a date at least twenty (20) days after the Board gives written
notice to Participants specifying the terms and conditions of such termination.

            18.3 Other Treatment of Awards. Subject to any greater rights
granted to Participants under the foregoing provisions of this Section 18, in
the event of the occurrence of any transaction described in Section 18.1, any
outstanding Awards shall be treated as provided in the applicable agreement or
plan of merger, consolidation, dissolution, liquidation, sale of assets or other
"corporate transaction."

            18.4 Assumption of Awards by the Company. The Company, from time to
time, also may substitute or assume outstanding awards granted by another
company, whether in connection with an acquisition of such other company or
otherwise, by either (a) granting an Award under the Plan in substitution of
such other company's award, or (b) assuming such award as if it had been granted
under the Plan if the terms of such assumed award could be applied to an Award
granted under the Plan. Such substitution or assumption shall be permissible if
the holder of the substituted or assumed award would have been eligible to be
granted an Award under the Plan if the other company had applied the rules of
the Plan to such grant. In the event the Company assumes an award granted by
another company, the terms and conditions of such award shall remain unchanged
(except that the exercise price and the number and nature of Shares issuable
upon exercise of any such option will be adjusted appropriately pursuant to
Section 424(a) of the Code). In the event the Company elects to grant a new
Option rather than assuming an existing option, such new Option may be granted
with a similarly adjusted Exercise Price.

            18.5 Acceleration of Officer Options. The Committee in its sole
discretion may grant Options to certain officers under which the vesting will
accelerate upon the occurrence of a transaction described in Subsections
18.1(a), 18.1(b), 18.1(c) or 18.1(d) above in which there is a successor
corporation, as to an additional 1/48th of the

                                       8
<PAGE>

Shares subject to such Options for each month of employment the officer
completed with the Company from the date of the grant to the date of
transaction. In addition, the vesting of such Options shall accelerate for an
additional twenty four months at the rate of 1/48th of the Shares subject to
such option; provided that: (i) if requested to do so, the officer remains
employed with the successor for a period of six months following the date of
such transaction or (ii) the officer is not requested to remain with the
successor following the date of such transaction.

      19. ADOPTION AND SHAREHOLDER APPROVAL. The Plan shall become effective on
the date that it is adopted by the Board (the "Effective Date"). The Plan shall
be approved by the shareholders of the Company (excluding Shares issued pursuant
to this Plan), consistent with applicable laws, within twelve months before or
after the Effective Date. Upon the Effective Date, the Board may grant Awards
pursuant to the Plan; provided, however, that: (a) no Option may be exercised
prior to initial shareholder approval of the Plan; (b) no Option granted
pursuant to an increase in the number of Shares approved by the Board shall be
exercised prior to the time such increase has been approved by the shareholders
of the Company; and (c) in the event that shareholder approval is not obtained
within the time period provided herein, all Awards granted hereunder shall be
cancelled, any Shares issued pursuant to any Award shall be cancelled and any
purchase of Shares hereunder shall be rescinded.

      20. TERM OF PLAN. The Plan will terminate ten (10) years from the
Effective Date or, if earlier, the date of shareholder approval.

      21. AMENDMENT OR TERMINATION OF PLAN. The Board may at any time terminate
or amend the Plan in any respect, including without limitation amendment of any
form of Award Agreement or instrument to be executed pursuant to the Plan;
provided, however, that the Board shall not, without the approval of the
shareholders of the Company, amend the Plan in any manner that requires such
shareholder approval pursuant to the Code or the regulations promulgated
thereunder as such provisions apply to ISO plans.

      22. NONEXCLUSIVITY OF THE PLAN. Neither the adoption of the Plan by the
Board, the submission of the Plan to the shareholders of the Company for
approval, nor any provision of the Plan shall be construed as creating any
limitations on the power of the Board to adopt such additional compensation
arrangements as it may deem desirable, including, without limitation, the
granting of stock options and bonuses otherwise than under the Plan, and such
arrangements may be either generally applicable or applicable only in specific
cases.

      23. GOVERNING LAW. The Plan and all agreements, documents and instruments
entered into pursuant to the Plan shall be governed by and construed in
accordance with the internal laws of the State of California, excluding that
body of law pertaining to conflict of laws.

      24. DEFINITIONS. As used in the Plan, the following terms shall have the
following meanings:

            "Affiliate" means any corporation that directly, or indirectly
through one or more intermediaries, controls or is controlled by, or is under
common control with, another corporation, where "control" (including the terms
"controlled by" and "under common control with") means the possession, direct or
indirect, of the power to cause the direction of the management and policies of
the corporation, whether through the ownership of voting securities, by contract
or otherwise.

            "Award" means any award under the Plan, including any Option,
Restricted Stock or Stock Bonus.

            "Award Agreement" means, with respect to each Award, the signed
written agreement between the Company and the Participant setting forth the
terms and conditions of the Award.

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

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

            "Committee" means the committee appointed by the Board to administer
the Plan, or if no committee is appointed, the Board.

                                       9
<PAGE>

            "Company" means VERITAS Software Corporation, a corporation
organized under the laws of the State of Delaware, any successor corporation
thereto and any corporation that assumes the Plan.

            "Disability" means a disability, whether temporary or permanent,
partial or total, within the meaning of Section 22(e)(3) of the Code, as
determined by the Committee.

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

            "Exercise Price" means the price at which a holder of an Option may
purchase the Shares issuable upon exercise of the Option.

            "Fair Market Value" means, as of any date, the value of a share of
the Company's Common Stock determined as follows:

            (a)   if such Common Stock is then quoted on the Nasdaq National
                  Market, its last reported sale price on the Nasdaq National
                  Market or, if no such reported sale takes place on such date,
                  the average of the closing bid and asked prices;

            (b)   if such Common Stock is publicly traded and is then listed on
                  a national securities exchange, the last reported sale price
                  or, if no such reported sale takes place on such date, the
                  average of the closing bid and asked prices on the principal
                  national securities exchange on which the Common Stock is
                  listed or admitted to trading;

            (c)   if such Common Stock is publicly traded but is not quoted on
                  the Nasdaq National Market nor listed or admitted to trading
                  on a national securities exchange, the average of the closing
                  bid and asked prices on such date, as reported by The Wall
                  Street Journal, for the over-the-counter market; or

            (d)   if none of the foregoing is applicable, by the Board of
                  Directors of the Company in good faith.

            "Insider" means an officer or director of the Company or any other
person whose transactions in the Company's Common Stock are subject to Section
16 of the Exchange Act.

            "Option" means an award of an option to purchase Shares pursuant to
Section 5.

            "Outside Director" means any director who is not (i) a current
employee of the Company or any Parent, Subsidiary or Affiliate of the Company;
(ii) a former employee of the Company or any Parent, Subsidiary or Affiliate of
the Company who is receiving compensation for prior services (other than
benefits under a tax-qualified pension plan); (iii) a current or former officer
of the Company or any Parent, Subsidiary or Affiliate of the Company; or (iv)
currently receiving compensation for personal services in any capacity, other
than as a director, from the Company or any Parent, Subsidiary or Affiliate of
the Company; provided, however, that at such time as the term "Outside
Director", as used in Section 162(m) is defined in regulations promulgated under
Section 162(m) of the Code, "Outside Director" shall have the meaning set forth
in such regulations, as amended from time to time and as interpreted by the
Internal Revenue Service.

            "Parent" means any corporation (other than the Company) in an
unbroken chain of corporations ending with the Company, if at the time of the
granting of an Award under the Plan, each of such corporations other than the
Company owns stock possessing 50% or more of the total combined voting power of
all classes of stock in one of the other corporations in such chain.

            "Participant" means a person who receives an Award under the Plan.

            "Plan" means this VERITAS Software Corporation 1993 Equity Incentive
Plan, as amended from time to time.

            "Restricted Stock Award" means an award of Shares pursuant to
Section 6.

                                       10
<PAGE>

            "SEC" means the Securities and Exchange Commission.

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

            "Shares" means shares of the Company's Common Stock reserved for
issuance under the Plan, as adjusted pursuant to Sections 2 and 15, and any
successor security.

            "Stock Bonus" means an award of Shares, or cash in lieu of Shares,
pursuant to Section 7.

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

            "Termination" or "Terminated" means, for purposes of the Plan with
respect to a Participant, that the Participant has ceased to provide services as
an employee, director, consultant, independent contractor or adviser, to the
Company or a Parent, Subsidiary or Affiliate of the Company, except in the case
of sick leave, military leave, or any other leave of absence approved by the
Committee, provided, that such leave is for a period of not more than ninety
(90) days, or reinstatement upon the expiration of such leave is guaranteed by
contract or statute. The Committee shall have sole discretion to determine
whether a Participant has ceased to provide services and the effective date on
which the Participant ceased to provide services (the "Termination Date").

                                       11
<PAGE>

                          VERITAS SOFTWARE CORPORATION

                           1993 EQUITY INCENTIVE PLAN

                             STOCK OPTION AGREEMENT

                          NEW HIRE STOCK OPTION GRANTS

This Stock Option Agreement ("Agreement") is made and entered into as of the
effective date of grant (the "Date of Grant") set forth in the attached Notice
of Grant of Stock Options and Signature Page to Stock Option Agreement (the
"Notice of Grant") by and between VERITAS Software Corporation, a Delaware
corporation (the "Company"), and the participant named in the Notice of Grant
("Participant"). Capitalized terms not defined herein shall have the meaning
ascribed to them in the Company's 1993 Equity Incentive Plan, as amended January
26, 1999 (the "Plan").

1. GRANT OF OPTION. The Company hereby grants to Participant an option (the
"Option") to purchase the total number of shares of Common Stock of the Company
set forth in the Notice of Grant (the "Shares") at the exercise price per share
set forth in the Notice of Grant, subject to all of the terms and conditions of
this Agreement and the Plan. If designated as an Incentive Stock Option above,
the Option is intended to qualify as an "incentive stock option" ("ISO") within
the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the
"Code").

2. VESTING SCHEDULE.

      2.1 Vesting Schedule for New Hire Grants. Subject to the terms and
conditions of the Plan and this Agreement, the Option shall be exercisable as it
vests. The Shares subject to the Option shall vest as follows:

      Provided Participant continues to provide services to the Company or any
Subsidiary, Parent or Affiliate of the Company throughout the specified period,
the Option shall vest as to portions of the Shares as follows: (a) the Option
shall not vest with respect to any of the Shares until the Participant has
completed six (6) months employment with the Company or any Subsidiary, Parent
or Affiliate of the Company; (b) upon the Participant's completion of six (6)
months employment with the Company or any Subsidiary, Parent or Affiliate of the
Company, the Option shall vest as to twelve and one half percent (12.5%) of the
Total Option Shares; and (c) each month thereafter, the Option shall vest as to
1/48th of the Total Option Shares until the Option is vested with respect to one
hundred percent (100%) of the Shares. If application of the vesting percentage
causes a fractional Share, such Share shall be rounded down to a whole Share.

      2.2 Expiration. The Option shall expire on the Expiration Date set forth
in the Notice of Grant and must be exercised, if at all, on or before the
Expiration Date.

      2.3 Extension of Vesting for Part-Time Employees. In the event Participant
is a full time employee of the Company or any Subsidiary, Parent or Affiliate of
the Company on the Date of Grant, and subsequently agrees with the Company or
any Subsidiary, Parent or Affiliate of the Company to reduce Participant's
normal working hours to at least twenty (20) and fewer than (30) hours per week,
all references to 1/48th in Section 2.1 above shall be automatically deemed to
be 1/96th from that date forward, until such time as Participant returns to a
normal full time schedule, whereupon the vesting percentage shall revert to
1/48th per month from that date forward. In the event Participant is an employee
of the Company or any Subsidiary on the Date of Grant with normal working hours
of at least twenty (20) hours per week, and subsequently agrees with the Company
or any Subsidiary, Parent or Affiliate of the Company to reduce Participant's
normal working hours to fewer than twenty (20) per week, the Option shall cease
to vest until such time (if any) when Participant returns to a working schedule
of at least twenty (20) hours per week.

3. TERMINATION.

      3.1 Termination for Any Reason Except Death or Disability. If Participant
is Terminated for any reason, except death or Disability, the Option, to the
extent (and only to the extent) that it would have been

<PAGE>

exercisable by Participant on the date of Termination, may be exercised by
Participant no later than ninety (90) days after the date of Termination, but in
any event no later than the Expiration Date.

      3.2 Termination Because of Death or Disability. If Participant is
Terminated because of death or Disability of Participant, the Option, to the
extent that it is exercisable by Participant on the date of Termination, may be
exercised by Participant (or Participant's legal representative) no later than
twelve (12) months after the date of Termination, but in any event no later than
the Expiration Date.

      3.3 No Obligation to Employ. Nothing in the Plan or this Agreement shall
confer on Participant any right to continue in the employ of, or any other
relationship with, the Company or any Parent, Subsidiary or Affiliate of the
Company, or limit in any way the right of the Company or any Parent, Subsidiary
or Affiliate of the Company to terminate Participant's employment or other
relationship at any time, with or without cause.

4. MANNER OF EXERCISE.

      4.1 Stock Option Exercise Agreement. To exercise this Option, Participant
(or in the case of exercise after Participant's death, Participant's executor,
administrator, heir or legatee, as the case may be) must deliver to the Company
an executed stock option exercise agreement in the form as may be approved by
the Company from time to time (the "Exercise Agreement"), which shall set forth,
inter alia. Participant's election to exercise the Option, the number of Shares
being purchased, any restrictions imposed on the Shares and any representations,
warranties and agreements regarding Participant's investment intent and access
to information as may be required by the Company to comply with applicable
securities laws. If someone other than Participant exercises the Option, then
such person must submit documentation reasonably acceptable to the Company that
such person has the right to exercise the Option. Alternatively, Participant may
elect to exercise the Option by way of a Company-sponsored program with an
on-line stock broker ("the Broker") whereby Participant conveys Participant's
intent to exercise the Option through the Broker's Internet site.

      4.2 Limitations on Exercise. The Option may not be exercised unless such
exercise is in compliance with all applicable federal and state securities laws,
as they are in effect on the date of exercise. The Option may not be exercised
as to fewer than 100 Shares unless it is exercised as to all Shares as to which
the Option is then exercisable.

      4.3 Payment. The Exercise Agreement shall be accompanied by full payment
of the Exercise Price for the Shares being purchased in cash (by check), or
where permitted by law:

            (a)   provided that a public market for the Company's stock exists,
                  (1) through a "same day sale" commitment from Participant and
                  a broker-dealer that is a member of the National Association
                  of Securities Dealers (a "NASD Dealer") whereby Participant
                  irrevocably elects to exercise the Option and to sell a
                  portion of the Shares so purchased to pay for the Exercise
                  Price and whereby the NASD Dealer irrevocably commits upon
                  receipt of such Shares to forward the Exercise Price directly
                  to the Company, or (2) through a "margin" commitment from
                  Participant -- and a NASD Dealer whereby Participant
                  irrevocably elects to exercise the Option and to pledge the
                  Shares so purchased to the NASD Dealer in a margin account as
                  security for a loan from the NASD Dealer in the amount of the
                  Exercise Price, and whereby the NASD Dealer irrevocably
                  commits upon receipt of such Shares to forward the Exercise
                  Price directly to the Company; or

            (b)   by any combination of the foregoing.

      4.4 Tax Withholding. Prior to the issuance of the Shares upon exercise of
the Option, Participant must pay or provide for any applicable federal or state
withholding obligations of the Company. If the Committee permits, Participant
may provide for payment of withholding taxes upon exercise of the Option by
requesting that the Company retain Shares with a Fair Market Value equal to the
minimum amount of taxes required to be withheld. In such case, the Company shall
issue the net number of Shares to the Participant by deducting the Shares
retained from the Shares issuable upon exercise.

      4.5 Issuance of Shares. Provided that the Exercise Agreement and payment
are in form and substance satisfactory to counsel for the Company, the Company
shall issue the Shares registered in the name of Participant,

                                       2
<PAGE>

Participant's authorized assignee, or Participant's legal representative, and
shall deliver certificates representing the Shares with the appropriate legends
affixed thereto.

5. NOTICE OF DISQUALIFYING DISPOSITION OF ISO SHARES. If the Option is an ISO,
and if Participant sells or otherwise disposes of any of the Shares acquired
pursuant to the ISO on or before the later of (1) the date two years after the
Date of Grant, and (2) the date one year after transfer of such Shares to
Participant upon exercise of the Option, Participant shall immediately notify
the Company in writing of such disposition. Participant agrees that Participant
may be subject to income tax withholding by the Company on the compensation
income recognized by Participant from the early disposition by payment in cash
or out of the current wages or other compensation payable to Participant.

6. COMPLIANCE WITH LAWS AND REGULATIONS. The exercise of the Option and the
issuance and transfer of Shares shall be subject to compliance by the Company
and Participant with all applicable requirements of federal and state securities
laws and with all applicable requirements of any stock exchange on which the
Company's Common Stock may be listed at the time of such issuance or transfer.
Participant understands that the Company is under no obligation to register or
qualify the Shares with the Securities and Exchange Commission, any state
securities commission or any stock exchange to effect such compliance.

7. NONTRANSFERABILITY OF OPTION. The Option may not be transferred in any manner
other than by will or by the laws of descent and distribution and may be
exercised during the lifetime of Participant only by Participant. The terms of
the Option shall be binding upon the executors, administrators, successors and
assigns of Participant.

8. TAX CONSEQUENCES. Set forth below is a brief summary as of the Date of Grant
of some of the United States federal and California tax consequences of exercise
of the Option and disposition of the Shares. THIS SUMMARY IS NECESSARILY
INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. PARTICIPANT
SHOULD CONSULT A TAX ADVISOR BEFORE EXERCISING THE OPTION OR DISPOSING OF THE
SHARES. Participants residing in other states or other countries should contact
their own tax advisors.

      8.1 Exercise of ISO. If the Option qualifies as an ISO, there will be no
regular federal or California income tax liability upon the exercise of the
Option, although the excess, if any, of the Fair Market Value of the Shares on
the date of exercise over the Exercise Price will be treated as a tax preference
item for federal and state income tax purposes and may subject the Participant
to the alternative minimum tax in the year of exercise.

      8.2 Exercise of Nonqualified Stock Option. If the Option does not qualify
as an ISO, there may be regular federal and California income tax liability upon
the exercise of the Option. Participant will be treated as having received
compensation income (taxable at ordinary income tax rates) equal to the excess,
if any, of the Fair Market Value of the Shares on the date of exercise over the
Exercise Price. The Company will be required to withhold from Participant's
compensation or collect from Participant and pay to the applicable taxing
authorities an amount equal to a percentage of this compensation income at the
time of exercise.

      8.3 Disposition of Shares. If the Shares are held for more than twelve
(12) months after the date of the transfer of the Shares pursuant to the
exercise of the Option (and, in the case of an ISO, are disposed of more than
two years after the Date of Grant), any gain realized on disposition of the
Shares will be treated as long term capital gain for federal and California
income tax purposes. If Shares purchased under an ISO are disposed of within one
year of exercise or within two years after the Date of Grant, any gain realized
on such disposition will be treated as compensation income (taxable at ordinary
income rates) to the extent of the excess, if any, of the Fair Market Value of
the Shares on the date of exercise over the Exercise Price. The Company will be
required to withhold from Participant's compensation or collect from Participant
and pay to the applicable taxing authorities an amount equal to a percentage of
this compensation income at the time of exercise.

9. PRIVILEGES OF STOCK OWNERSHIP. Participant shall not have any of the rights
of a shareholder with respect to any Shares until Participant exercises the
Option and pays the Exercise Price.

10. INTERPRETATION. All disputes regarding the interpretation of this Agreement,
the Plan or the Notice of Grant must be submitted by Participant or the Company
to the Committee for review. The resolution of such a dispute by the Committee
shall be final and binding on the Company and Participant.

                                       3
<PAGE>

11. ENTIRE AGREEMENT. The Plan and the Notice of Grant are incorporated herein
by reference. This Agreement, the Plan and the Notice of Grant constitute the
entire agreement of the parties and supersede all prior undertakings and
agreements with respect to the subject matter hereof.

12. NOTICES. Any notice required to be given or delivered to the Company under
the terms of this Agreement shall be in writing and addressed to the Corporate
Secretary of the Company at its principal corporate offices. Any notice required
to be given or delivered to Participant shall be in writing and addressed to
Participant at the address indicated on the Notice of Grant or to such other
address as such party may designate in writing from time to time to the Company.
All notices shall be deemed to have been given or delivered upon: personal
delivery; three (3) days after deposit in the United States mail by certified or
registered mail (return receipt requested); one (1) business day after deposit
with any return receipt express courier (prepaid); or one (1) business day after
transmission by facsimile or telecopier.

13. SUCCESSORS AND ASSIGNS. The Company may assign any of its rights under this
Agreement. This Agreement shall be binding upon and inure to the benefit of the
successors and assigns of the Company. Subject to the restrictions on transfer
set forth herein, this Agreement shall be binding upon Participant and
Participant's heirs, executors, administrators, legal representatives,
successors and assigns.

14. GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with the laws of the State of California.

15. ACCEPTANCE. Participant hereby acknowledges receipt of a copy of the Plan,
this Agreement and the Notice of Grant. Participant has read and understands the
terms and provisions thereof, and accepts the Option subject to all the terms
and conditions of the Plan, this Agreement and the Notice of Grant. Participant
acknowledges that there may be adverse tax consequences upon exercise of the
Option or disposition of the Shares and that Participant should consult a tax
adviser prior to such exercise or disposition.

                                       4
<PAGE>

                          VERITAS SOFTWARE CORPORATION

                           1993 EQUITY INCENTIVE PLAN

                             STOCK OPTION AGREEMENT

                         SUBSEQUENT STOCK OPTION GRANTS

This Stock Option Agreement ("Agreement") is made and entered into as of the
effective date of grant (the "Date of Grant") set forth in the attached Notice
of Grant of Stock Options and Signature Page to Stock Option Agreement (the
"Notice of Grant") by and between VERITAS Software Corporation, a Delaware
corporation (the "Company"), and the participant named in the Notice of Grant
("Participant"). Capitalized terms not defined herein shall have the meaning
ascribed to them in the Company's 1993 Equity Incentive Plan, as amended January
26, 1999 (the "Plan").

1. GRANT OF OPTION. The Company hereby grants to Participant an option (the
"Option") to purchase the total number of shares of Common Stock of the Company
set forth in the Notice of Grant (the "Shares") at the exercise price per share
set forth in the Notice of Grant, subject to all of the terms and conditions of
this Agreement and the Plan. If designated as an Incentive Stock Option above,
the Option is intended to qualify as an "incentive stock option" ("ISO") within
the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the
"Code").

2. VESTING SCHEDULE.

      2.1 Vesting Schedule for Subsequent Grants. Subject to the terms and
conditions of the Plan and this Agreement, the Option shall be exercisable as it
vests. The Shares subject to the Option shall vest as follows:

      Provided Participant continues to provide services to the Company or any
Subsidiary, Parent or Affiliate of the Company throughout the specified period,
the Option shall vest as to portions of the Shares as follows: (a) one month
following the Date of Grant, the Option shall vest as to 1/48th of the Total
Option Shares; and (b) each month thereafter, the Option shall vest as to 1/48th
of the Total Option Shares until the Option is vested with respect to one
hundred percent (100%) of the Shares. If application of the vesting percentage
causes a fractional Share, such Share shall be rounded down to a whole Share.

      2.2 Expiration. The Option shall expire on the Expiration Date set forth
in the Notice of Grant and must be exercised, if at all, on or before the
Expiration Date.

      2.3 Extension of Vesting for Part-Time Employees. In the event Participant
is a full time employee of the Company or any Subsidiary, Parent or Affiliate of
the Company on the Date of Grant, and subsequently agrees with the Company or
any Subsidiary, Parent or Affiliate of the Company to reduce Participant's
normal working hours to at least twenty (20) and fewer than (30) hours per week,
all references to 1/48th in Section 2.1 above shall be automatically deemed to
be 1/96th from that date forward, until such time as Participant returns to a
normal full time schedule, whereupon the vesting percentage shall revert to
1/48th per month from that date forward. In the event Participant is an employee
of the Company or any Subsidiary on the Date of Grant with normal working hours
of at least twenty (20) hours per week, and subsequently agrees with the Company
or any Subsidiary, Parent or Affiliate of the Company to reduce Participant's
normal working hours to fewer than twenty (20) per week, the Option shall cease
to vest until such time (if any) when Participant returns to a working schedule
of at least twenty (20) hours per week.

3. TERMINATION.

      3.1 Termination for Any Reason Except Death or Disability. If Participant
is Terminated for any reason, except death or Disability, the Option, to the
extent (and only to the extent) that it would have been exercisable by
Participant on the date of Termination, may be exercised by Participant no later
than ninety (90) days after the date of Termination, but in any event no later
than the Expiration Date.

      3.2 Termination Because of Death or Disability. If Participant is
Terminated because of death or Disability of Participant, the Option, to the
extent that it is exercisable by Participant on the date of Termination,

<PAGE>

may be exercised by Participant (or Participant's legal representative) no later
than twelve (12) months after the date of Termination, but in any event no later
than the Expiration Date.

      3.3 No Obligation to Employ. Nothing in the Plan or this Agreement shall
confer on Participant any right to continue in the employ of, or any other
relationship with, the Company or any Parent, Subsidiary or Affiliate of the
Company, or limit in any way the right of the Company or any Parent, Subsidiary
or Affiliate of the Company to terminate Participant's employment or other
relationship at any time, with or without cause.

4. MANNER OF EXERCISE.

      4.1 Stock Option Exercise Agreement. To exercise this Option, Participant
(or in the case of exercise after Participant's death, Participant's executor,
administrator, heir or legatee, as the case may be) must deliver to the Company
an executed stock option exercise agreement in the form as may be approved by
the Company from time to time (the "Exercise Agreement"), which shall set forth,
inter alia. Participant's election to exercise the Option, the number of Shares
being purchased, any restrictions imposed on the Shares and any representations,
warranties and agreements regarding Participant's investment intent and access
to information as may be required by the Company to comply with applicable
securities laws. If someone other than Participant exercises the Option, then
such person must submit documentation reasonably acceptable to the Company that
such person has the right to exercise the Option. Alternatively, Participant may
elect to exercise the Option by way of a Company-sponsored program with an
on-line stock broker ("the Broker") whereby Participant conveys Participant's
intent to exercise the Option through the Broker's Internet site.

      4.2 Limitations on Exercise. The Option may not be exercised unless such
exercise is in compliance with all applicable federal and state securities laws,
as they are in effect on the date of exercise. The Option may not be exercised
as to fewer than 100 Shares unless it is exercised as to all Shares as to which
the Option is then exercisable.

      4.3 Payment. The Exercise Agreement shall be accompanied by full payment
of the Exercise Price for the Shares being purchased in cash (by check), or
where permitted by law:

            (a)   provided that a public market for the Company's stock exists,
                  (1) through a "same day sale" commitment from Participant and
                  a broker-dealer that is a member of the National Association
                  of Securities Dealers (a "NASD Dealer") whereby Participant
                  irrevocably elects to exercise the Option and to sell a
                  portion of the Shares so purchased to pay for the Exercise
                  Price and whereby the NASD Dealer irrevocably commits upon
                  receipt of such Shares to forward the Exercise Price directly
                  to the Company, or (2) through a "margin" commitment from
                  Participant and a NASD Dealer -- whereby Participant
                  irrevocably elects to exercise the Option and to pledge the
                  Shares so purchased to the NASD Dealer in a margin account as
                  security for a loan from the NASD Dealer in the amount of the
                  Exercise Price, and whereby the NASD Dealer irrevocably
                  commits upon receipt of such Shares to forward the Exercise
                  Price directly to the Company; or

            (b)   by any combination of the foregoing.

      4.4 Tax Withholding. Prior to the issuance of the Shares upon exercise of
the Option, Participant must pay or provide for any applicable federal or state
withholding obligations of the Company. If the Committee permits, Participant
may provide for payment of withholding taxes upon exercise of the Option by
requesting that the Company retain Shares with a Fair Market Value equal to the
minimum amount of taxes required to be withheld. In such case, the Company shall
issue the net number of Shares to the Participant by deducting the Shares
retained from the Shares issuable upon exercise.

      4.5 Issuance of Shares. Provided that the Exercise Agreement and payment
are in form and substance satisfactory to counsel for the Company, the Company
shall issue the Shares registered in the name of Participant, Participant's
authorized assignee, or Participant's legal representative, and shall deliver
certificates representing the Shares with the appropriate legends affixed
thereto.

5. NOTICE OF DISQUALIFYING DISPOSITION OF ISO SHARES. If the Option is an ISO,
and if Participant sells or otherwise disposes of any of the Shares acquired
pursuant to the ISO on or before the later of (1)

                                       2
<PAGE>

the date two years after the Date of Grant, and (2) the date one year after
transfer of such Shares to Participant upon exercise of the Option, Participant
shall immediately notify the Company in writing of such disposition. Participant
agrees that Participant may be subject to income tax withholding by the Company
on the compensation income recognized by Participant from the early disposition
by payment in cash or out of the current wages or other compensation payable to
Participant.

6. COMPLIANCE WITH LAWS AND REGULATIONS. The exercise of the Option and the
issuance and transfer of Shares shall be subject to compliance by the Company
and Participant with all applicable requirements of federal and state securities
laws and with all applicable requirements of any stock exchange on which the
Company's Common Stock may be listed at the time of such issuance or transfer.
Participant understands that the Company is under no obligation to register or
qualify the Shares with the Securities and Exchange Commission, any state
securities commission or any stock exchange to effect such compliance.

7. NONTRANSFERABILITY OF OPTION. The Option may not be transferred in any manner
other than by will or by the laws of descent and distribution and may be
exercised during the lifetime of Participant only by Participant. The terms of
the Option shall be binding upon the executors, administrators, successors and
assigns of Participant.

8. TAX CONSEQUENCES. Set forth below is a brief summary as of the Date of Grant
of some of the United States federal and California tax consequences of exercise
of the Option and disposition of the Shares. THIS SUMMARY IS NECESSARILY
INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. PARTICIPANT
SHOULD CONSULT A TAX ADVISOR BEFORE EXERCISING THE OPTION OR DISPOSING OF THE
SHARES. Participants residing in other states or other countries should contact
their own tax advisors.

      8.1 Exercise of ISO. If the Option qualifies as an ISO, there will be no
regular federal or California income tax liability upon the exercise of the
Option, although the excess, if any, of the Fair Market Value of the Shares on
the date of exercise over the Exercise Price will be treated as a tax preference
item for federal and state income tax purposes and may subject the Participant
to the alternative minimum tax in the year of exercise.

      8.2 Exercise of Nonqualified Stock Option. If the Option does not qualify
as an ISO, there may be regular federal and California income tax liability upon
the exercise of the Option. Participant will be treated as having received
compensation income (taxable at ordinary income tax rates) equal to the excess,
if any, of the Fair Market Value of the Shares on the date of exercise over the
Exercise Price. The Company will be required to withhold from Participant's
compensation or collect from Participant and pay to the applicable taxing
authorities an amount equal to a percentage of this compensation income at the
time of exercise.

      8.3 Disposition of Shares. If the Shares are held for more than twelve
(12) months after the date of the transfer of the Shares pursuant to the
exercise of the Option (and, in the case of an ISO, are disposed of more than
two years after the Date of Grant), any gain realized on disposition of the
Shares will be treated as long term capital gain for federal and California
income tax purposes. If Shares purchased under an ISO are disposed of within one
year of exercise or within two years after the Date of Grant, any gain realized
on such disposition will be treated as compensation income (taxable at ordinary
income rates) to the extent of the excess, if any, of the Fair Market Value of
the Shares on the date of exercise over the Exercise Price. The Company will be
required to withhold from Participant's compensation or collect from Participant
and pay to the applicable taxing authorities an amount equal to a percentage of
this compensation income at the time of exercise.

9. PRIVILEGES OF STOCK OWNERSHIP. Participant shall not have any of the rights
of a shareholder with respect to any Shares until Participant exercises the
Option and pays the Exercise Price.

10. INTERPRETATION. All disputes regarding the interpretation of this Agreement,
the Plan or the Notice of Grant must be submitted by Participant or the Company
to the Committee for review. The resolution of such a dispute by the Committee
shall be final and binding on the Company and Participant.

11. ENTIRE AGREEMENT. The Plan and the Notice of Grant are incorporated herein
by reference. This Agreement, the Plan and the Notice of Grant constitute the
entire agreement of the parties and supersede all prior undertakings and
agreements with respect to the subject matter hereof.

                                       3
<PAGE>

12. NOTICES. Any notice required to be given or delivered to the Company under
the terms of this Agreement shall be in writing and addressed to the Corporate
Secretary of the Company at its principal corporate offices. Any notice required
to be given or delivered to Participant shall be in writing and addressed to
Participant at the address indicated on the Notice of Grant or to such other
address as such party may designate in writing from time to time to the Company.
All notices shall be deemed to have been given or delivered upon: personal
delivery; three (3) days after deposit in the United States mail by certified or
registered mail (return receipt requested); one (1) business day after deposit
with any return receipt express courier (prepaid); or one (1) business day after
transmission by facsimile or telecopier.

13. SUCCESSORS AND ASSIGNS. The Company may assign any of its rights under this
Agreement. This Agreement shall be binding upon and inure to the benefit of the
successors and assigns of the Company. Subject to the restrictions on transfer
set forth herein, this Agreement shall be binding upon Participant and
Participant's heirs, executors, administrators, legal representatives,
successors and assigns.

14. GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with the laws of the State of California.

15. ACCEPTANCE. Participant hereby acknowledges receipt of a copy of the Plan,
this Agreement and the Notice of Grant. Participant has read and understands the
terms and provisions thereof, and accepts the Option subject to all the terms
and conditions of the Plan, this Agreement and the Notice of Grant. Participant
acknowledges that there may be adverse tax consequences upon exercise of the
Option or disposition of the Shares and that Participant should consult a tax
adviser prior to such exercise or disposition.

                                       4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00039-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00039-of-00352.parquet"}]]