Document:

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                                                                     EXHIBIT 4.2

                              INFORMIX CORPORATION
                        1997 EMPLOYEE STOCK PURCHASE PLAN

                                    SECTION 1
                                     PURPOSE

     INFORMIX CORPORATION hereby establishes the Informix Corporation 1997
Employee Stock Purchase Plan, effective as of July 1, 1997 (and amended on
January 9, 1998 and June 21, 2000), in order to provide eligible employees of
the Company and its participating Subsidiaries with the opportunity to purchase
Common Stock through payroll deductions. The Plan is intended to qualify as an
employee stock purchase plan under Section 423(b) of the Code.

                                    SECTION 2
                                   DEFINITIONS

          2.1       "1934 ACT" means the Securities Exchange Act of 1934, as
amended. Reference to a specific Section of the 1934 Act or regulation
thereunder shall include such Section or regulation, any valid regulation
promulgated under such Section, and any comparable provision of any future
legislation or regulation amending, supplementing or superseding such Section or
regulation.

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

          2.3       "CODE" means the Internal Revenue Code of 1986, as amended.
Reference to a specific Section of the Code or regulation thereunder shall
include such Section or regulation, any valid regulation promulgated under such
Section, and any comparable provision of any future legislation or regulation
amending, supplementing or superseding such Section or regulation.

          2.4       "COMMITTEE" means the committee appointed by the Board to
administer the Plan. Any member of the Committee may resign at any time by
notice in writing mailed or delivered to the Secretary of the Company. As of the
effective date of the Plan, the Committee shall be administered by the
Compensation Committee of the Board.

          2.5       "COMMON STOCK" means the common stock of the Company.

          2.6       "COMPANY" means Informix Corporation, a Delaware
corporation.

          2.7       "COMPENSATION" means a Participant's base salary or regular
wages (including sick pay and vacation pay), overtime, bonuses and commissions.
The Committee, in its discretion, may (on a uniform and nondiscriminatory basis)
establish a different definition of Compensation prior to an Enrollment Date for
all options to be granted on such Enrollment Date.

          2.8       "ELIGIBLE EMPLOYEE" means every Employee of an Employer,
except (a) any Employee who immediately after the grant of an option under the
Plan, would own stock and/or hold outstanding options to purchase stock
possessing five percent (5%) or more of the total combined voting power or value
of all classes of stock of the Company or of any Subsidiary of the Company
(including stock attributed to such Employee pursuant to Section 424(d) of the
Code), or (b) as provided in the

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following sentence. The Committee, in its discretion, from time to time may,
prior to an Enrollment Date for all options to be granted on such Enrollment
Date, determine (on a uniform and nondiscriminatory basis) that an Employee
shall not be an Eligible Employee if he or she: (1) has not completed at least
two years of service since his or her last hire date, (2) customarily works not
more than 20 hours per week, (3) customarily works not more than 5 months per
calendar year, or (4) is an officer or other manager.

          2.9       "EMPLOYEE" means an individual who is a common-law employee
of any Employer, whether such employee is so employed at the time the Plan is
adopted or becomes so employed subsequent to the adoption of the Plan.

          2.10      "EMPLOYER" or "EMPLOYERS" means any one or all of the
Company and those Subsidiaries which, with the consent of the Board, have
adopted the Plan.

          2.11      "ENROLLMENT DATE" means the first day of each calendar
quarter and/or such other dates determined by the Committee (in its discretion
and on a uniform and nondiscriminatory basis) from time to time.

          2.12      "GRANT DATE" means any date on which a Participant is
granted an option under the Plan.

          2.13      "PARTICIPANT" means an Eligible Employee who (a) has become
a Participant in the Plan pursuant to Section 4.1 and (b) has not ceased to be a
Participant pursuant to Section 8 or Section 9.

          2.14      "PLAN" means the Informix Corporation 1997 Employee Stock
Purchase Plan, as set forth in this instrument and as hereafter amended from
time to time.

          2.15      "PURCHASE DATE" means the last day of each March, June,
September and December, or such other specific business days as may be
established by the Committee (in its discretion and on a uniform and
nondiscriminatory basis) from time to time prior to an Enrollment Date for all
options to be granted on such Enrollment Date.

          2.16      "SUBSIDIARY" means any corporation in an unbroken chain of
corporations beginning with the Company if each of the corporations other than
the last corporation in the unbroken chain then owns stock possessing fifty
percent (50%) or more of the total combined voting power of all classes of stock
in one of the other corporations in such chain.

                                    SECTION 3
                           SHARES SUBJECT TO THE PLAN

          3.1       NUMBER AVAILABLE. A maximum of 8,000,000 shares of Common
Stock shall be available for issuance pursuant to the Plan. This includes
4,000,000 Shares added to the Plan by amendment effective June 21, 2000. Shares
sold under the Plan may be newly issued shares or treasury shares.

          3.2       ADJUSTMENTS. In the event of any reorganization,
recapitalization, stock split, reverse stock split, stock dividend, combination
of shares, merger, consolidation, offering of rights or other similar change in
the capital structure of the Company, the Board may make such adjustment, if
any, as it deems appropriate in the number, kind and purchase price of the
shares available for purchase under the Plan and in the maximum number of shares
subject to any option under the Plan.

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                                    SECTION 4
                                   ENROLLMENT

          4.1       PARTICIPATION. Each Eligible Employee may elect to become a
Participant by enrolling or re-enrolling in the Plan effective as of any
Enrollment Date. In order to enroll, an Eligible Employee must complete, sign
and submit to the Company an enrollment form in such form as may be specified by
the Committee (in its discretion and on a uniform and nondiscriminatory basis)
from time to time. Any enrollment form received by the Company no later than the
business day immediately preceding an Enrollment Date shall be effective on that
Enrollment Date, provided that the Committee, in its discretion, may (on a
uniform and nondiscriminatory basis) specify an earlier or later deadline for
the submission of enrollment forms. Any Participant whose option expires and who
has not withdrawn from the Plan automatically will be re-enrolled in the Plan on
the Enrollment Date immediately following the Purchase Date on which his or her
option expires.

          4.2       PAYROLL WITHHOLDING. On his or her enrollment form, each
Participant must elect to make Plan contributions via payroll withholding from
his or her Compensation. Pursuant to such procedures as the Committee may
specify from time to time, a Participant may elect to have withholding equal to
a whole percentage from 1% to 15% (or such lesser percentage that the Committee
may establish from time to time for all options to be granted on any Enrollment
Date). A Participant may elect to increase or decrease his or her rate of
payroll withholding (effective as of any Enrollment Date) by submitting a new
enrollment form in accordance with such procedures as may be established by the
Committee from time to time. A Participant may stop his or her payroll
withholding by submitting a new enrollment form in accordance with such
procedures as may be established by the Committee from time to time. In order to
be effective as of a specific date, an enrollment form must be received by the
Company no later than the deadline specified by the Committee, in its discretion
and on a uniform and nondiscriminatory basis, from time to time. Any Participant
who is automatically re-enrolled in the Plan will be deemed to have elected to
continue his or her contributions at the percentage last elected by the
Participant.

                                    SECTION 5
                        OPTIONS TO PURCHASE COMMON STOCK

          5.1       GRANT OF OPTION. On each Enrollment Date on which the
Participant enrolls or re-enrolls in the Plan, he or she shall be granted an
option to purchase shares of Common Stock.

          5.2       DURATION OF OPTION. Each option granted under the Plan shall
expire on the earliest to occur of (a) the completion of the purchase of shares
on the last Purchase Date occurring within 12 months of the Grant Date of such
option, (b) such shorter enrollment period as may be established by the
Committee from time to time prior to an Enrollment Date for all options to be
granted on such Enrollment Date, or (c) the date on which the Participant ceases
to be such for any reason. Until otherwise determined by the Committee for all
options to be granted on an Enrollment Date, the period referred to in clause
(b) in the preceding sentence shall mean the expiration of 3 months from the
Grant Date.

          5.3       NUMBER OF SHARES SUBJECT TO OPTION. The number of shares
available for purchase by each Participant under the option will be established
by the Committee from time to time prior to an Enrollment Date for all options
to be granted on such Enrollment Date. Until otherwise determined by the
Committee for all options to be granted on an Enrollment Date, in no event shall
the maximum number of shares purchasable with any option exceed 20,000 shares
(amended as of January 9, 1998). In addition and notwithstanding the preceding,
an option (taken together with all other options then outstanding under this
Plan and under all other similar employee stock purchase plans of the Employers)

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shall not give the Participant the right to purchase shares at a rate which
accrues in excess of $25,000 of fair market value at the applicable Grant Dates
of such shares in any calendar year during which such Participant is enrolled in
the Plan at any time.

          5.4       OTHER TERMS AND CONDITIONS. Each option shall be subject to
the following additional terms and conditions:

          (a)       payment for shares purchased under the option shall be made
only through payroll withholding under Section 4.2;

          (b)       purchase of shares upon exercise of the option will be
accomplished only in accordance with Section 6.1;

          (c)       the price per share under the option will be determined as
provided in Section 6.1; and

          (d)       the option in all respects shall be subject to such other
terms and conditions (applied on a uniform and nondiscriminatory basis), as the
Committee shall determine from time to time in its discretion.

                                    SECTION 6
                               PURCHASE OF SHARES

          6.1       EXERCISE OF OPTION. Subject to Section 6.2, on each Purchase
Date, the funds then credited to each Participant's account shall be used to
purchase whole shares of Common Stock. Any cash remaining after whole shares of
Common Stock have been purchased shall be carried forward in the Participant's
account for the purchase of shares on the next Purchase Date. The price per
Share of the Shares purchased under any option granted under the Plan shall be
eighty-five percent (85%) of the lower of:

          (a)       the closing price per Share on the Grant Date for such
option on the NASD National Market System; or

          (b)       the closing price per Share on the Purchase Date on the NASD
National Market System.

For purposes of this Section 6.1, (1) if a Grant Date is not a business day, the
closing price per Share for such date shall be deemed to be the closing price
per Share on the first business day immediately following such date, and (2) if
a Purchase Date is not a business day, the closing price per Share for such date
shall be deemed to be the closing price per Share on the last business day
immediately preceding such date.

          6.2       DELIVERY OF SHARES. As directed by the Committee in its sole
discretion, shares purchased on any Purchase Date shall be delivered directly to
the Participant or to a custodian or broker designated by the Committee to hold
shares for the benefit of the Participants. As determined by the Committee from
time to time, such shares shall be delivered as physical certificates or by
means of a book entry system.

          6.3       EXHAUSTION OF SHARES. If at any time the shares available
under the Plan are over-enrolled, enrollments shall be reduced proportionately
to eliminate the over-enrollment. Such reduction

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method shall be "bottom up," with the result that all option exercises for one
share shall be satisfied first, followed by all exercises for two shares, and so
on, until all available shares have been exhausted. Any funds that, due to
over-enrollment, cannot be applied to the purchase of whole shares shall be
refunded to the Participants (without interest thereon).

                                    SECTION 7
                                   WITHDRAWAL

          7.1       WITHDRAWAL. A Participant may withdraw from the Plan by
submitting a completed enrollment form to the Company. A withdrawal will be
effective only if it is received by the Company by the deadline specified by the
Committee (in its discretion and on a uniform and nondiscriminatory basis) from
time to time. When a withdrawal becomes effective, the Participant's payroll
contributions shall cease and all amounts then credited to the Participant's
account shall be distributed to him or her (without interest thereon).

                                    SECTION 8
                           CESSATION OF PARTICIPATION

          8.1       TERMINATION OF STATUS AS ELIGIBLE EMPLOYEE. A Participant
shall cease to be a Participant immediately upon the cessation of his or her
status as an Eligible Employee (for example, because of his or her termination
of employment from all Employers for any reason). As soon as practicable after
such cessation, the Participant's payroll contributions shall cease and all
amounts then credited to the Participant's account shall be distributed to him
or her (without interest thereon). If a Participant is on a Company-approved
leave of absence, his or her participation in the Plan shall continue for so
long as he or she remains an Eligible Employee and has not withdrawn from the
Plan pursuant to Section 7.1.

                                    SECTION 9
                           DESIGNATION OF BENEFICIARY

          9.1       DESIGNATION. Each Participant may, pursuant to such uniform
and nondiscriminatory procedures as the Committee may specify from time to time,
designate one or more Beneficiaries to receive any amounts credited to the
Participant's account at the time of his or her death. Notwithstanding any
contrary provision of this Section 9, Sections 9.1 and 9.2 shall be operative
only after (and for so long as) the Committee determines (on a uniform and
nondiscriminatory basis) to permit the designation of Beneficiaries.

          9.2       CHANGES. A Participant may designate different Beneficiaries
(or may revoke a prior Beneficiary designation) at any time by delivering a new
designation (or revocation of a prior designation) in like manner. Any
designation or revocation shall be effective only if it is received by the
Committee. However, when so received, the designation or revocation shall be
effective as of the date the designation or revocation is executed (whether or
not the Participant still is living), but without prejudice to the Committee on
account of any payment made before the change is recorded. The last effective
designation received by the Committee shall supersede all prior designations.

          9.3       FAILED DESIGNATIONS. If a Participant dies without having
effectively designated a Beneficiary, or if no Beneficiary survives the
Participant, the Participant's Account shall be payable to his or her estate.

<PAGE>

                                   SECTION 10
                                 ADMINISTRATION

          10.1      PLAN ADMINISTRATOR. The Plan shall be administered by the
Committee. The Committee shall have the authority to control and manage the
operation and administration of the Plan.

          10.2      ACTIONS BY COMMITTEE. Each decision of a majority of the
members of the Committee then in office shall constitute the final and binding
act of the Committee. The Committee may act with or without a meeting being
called or held and shall keep minutes of all meetings held and a record of all
actions taken by written consent.

          10.3      POWERS OF COMMITTEE. The Committee shall have all powers and
discretion necessary or appropriate to supervise the administration of the Plan
and to control its operation in accordance with its terms, including, but not by
way of limitation, the following discretionary powers:

          (a)       To interpret and determine the meaning and validity of the
provisions of the Plan and the options and to determine any question arising
under, or in connection with, the administration, operation or validity of the
Plan or the options;

          (b)       To determine any and all considerations affecting the
eligibility of any employee to become a Participant or to remain a Participant
in the Plan;

          (c)       To cause an account or accounts to be maintained for each
Participant;

          (d)       To determine the time or times when, and the number of
shares for which, options shall be granted;

          (e)       To establish and revise an accounting method or formula for
the Plan;

          (f)       To designate a custodian or broker to receive shares
purchased under the Plan and to determine the manner and form in which shares
are to be delivered to the designated custodian or broker;

          (g)       To determine the status and rights of Participants and their
Beneficiaries or estates;

          (h)       To employ such brokers, counsel, agents and advisers, and to
obtain such broker, legal, clerical and other services, as it may deem necessary
or appropriate in carrying out the provisions of the Plan;

          (i)       To establish, from time to time, rules for the performance
of its powers and duties and for the administration of the Plan;

          (j)       To adopt such procedures and subplans as are necessary or
appropriate to permit participation in the Plan by employees who are foreign
nationals or employed outside of the United States; and

          (k)       To delegate to any one or more of its members or to any
other person, severally or jointly, the authority to perform for and on behalf
of the Committee one or more of the functions of the Committee under the Plan.

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          10.4      DECISIONS OF COMMITTEE. All actions, interpretations, and
decisions of the Committee shall be conclusive and binding on all persons, and
shall be given the maximum possible deference allowed by law.

          10.5      ADMINISTRATIVE EXPENSES. All expenses incurred in the
administration of the Plan by the Committee, or otherwise, including legal fees
and expenses, shall be paid and borne by the Employers, except any stamp duties
or transfer taxes applicable to the purchase of shares may be charged to the
account of each Participant. Any brokerage fees for the purchase of shares by a
Participant shall be paid by the Company, but fees and taxes (including
brokerage fees) for the transfer, sale or resale of shares by a Participant, or
the issuance of physical share certificates, shall be borne solely by the
Participant.

          10.6      ELIGIBILITY TO PARTICIPATE. No member of the Committee who
is also an employee of an Employer shall be excluded from participating in the
Plan if otherwise eligible, but he or she shall not be entitled, as a member of
the Committee, to act or pass upon any matters pertaining specifically to his or
her own account under the Plan.

          10.7      INDEMNIFICATION. Each of the Employers shall, and hereby
does, indemnify and hold harmless the members of the Committee and the Board,
from and against any and all losses, claims, damages or liabilities (including
attorneys' fees and amounts paid, with the approval of the Board, in settlement
of any claim) arising out of or resulting from the implementation of a duty, act
or decision with respect to the Plan, so long as such duty, act or decision does
not involve gross negligence or willful misconduct on the part of any such
individual.

                                   SECTION 11
                      AMENDMENT, TERMINATION, AND DURATION

          11.1      AMENDMENT, SUSPENSION, OR TERMINATION. The Board, in its
sole discretion, may amend or terminate the Plan, or any part thereof, at any
time and for any reason. If the Plan is terminated, the Board, in its
discretion, may elect to terminate all outstanding options either immediately or
upon completion of the purchase of shares on the next Purchase Date, or may
elect to permit options to expire in accordance with their terms (and
participation to continue through such expiration dates). If the options are
terminated prior to expiration, all amounts then credited to Participants'
accounts which have not been used to purchase shares shall be returned to the
Participants (without interest thereon) as soon as administratively practicable.

          11.2      DURATION OF THE PLAN. The Plan shall commence on the date
specified herein, and subject to Section 11.1 (regarding the Board's right to
amend or terminate the Plan), shall remain in effect thereafter.

                                   SECTION 12
                               GENERAL PROVISIONS

          12.1      PARTICIPATION BY SUBSIDIARIES. One or more Subsidiaries of
the Company may become participating Employers by adopting the Plan and
obtaining approval for such adoption from the Board. By adopting the Plan, a
Subsidiary shall be deemed to agree to all of its terms, including (but not
limited to) the provisions granting exclusive authority (a) to the Board to
amend the Plan, and (b) to the Committee to administer and interpret the Plan.
An Employer may terminate its participation in the Plan at any time. The
liabilities incurred under the Plan to the Participants employed by each
Employer shall be

<PAGE>

solely the liabilities of that Employer, and no other Employer shall be liable
for benefits accrued by a Participant during any period when he or she was not
employed by such Employer.

          12.2      INALIENABILITY. In no event may either a Participant, a
former Participant or his or her Beneficiary, spouse or estate sell, transfer,
anticipate, assign, hypothecate, or otherwise dispose of any right or interest
under the Plan; and such rights and interests shall not at any time be subject
to the claims of creditors nor be liable to attachment, execution or other legal
process. Accordingly, for example, a Participant's interest in the Plan is not
transferable pursuant to a domestic relations order.

          12.3      SEVERABILITY. In the event any provision of the Plan shall
be held illegal or invalid for any reason, the illegality or invalidity shall
not affect the remaining parts of the Plan, and the Plan shall be construed and
enforced as if the illegal or invalid provision had not been included.

          12.4      REQUIREMENTS OF LAW. The granting of options and the
issuance of shares shall be subject to all applicable laws, rules, and
regulations, and to such approvals by any governmental agencies or securities
exchanges as the Committee may determine are necessary or appropriate.

          12.5      COMPLIANCE WITH RULE 16b-3. Any transactions under this Plan
with respect to officers (as defined in Rule 16a-1 promulgated under the 1934
Act) are intended to comply with all applicable conditions of Rule 16b-3. To the
extent any provision of the Plan or action by the Committee fails to so comply,
it shall be deemed null and void, to the extent permitted by law and deemed
advisable by the Committee. Notwithstanding any contrary provision of the Plan,
if the Committee specifically determines that compliance with Rule 16b-3 no
longer is required, all references in the Plan to Rule 16b-3 shall be null and
void.

          12.6      NO ENLARGEMENT OF EMPLOYMENT RIGHTS. Neither the
establishment or maintenance of the Plan, the granting of options, the purchase
of shares, nor any action of any Employer or the Committee, shall be held or
construed to confer upon any individual any right to be continued as an employee
of the Employer nor, upon dismissal, any right or interest in any specific
assets of the Employers other than as provided in the Plan. Each Employer
expressly reserves the right to discharge any employee at any time, with or
without cause.

          12.7      APPORTIONMENT OF COSTS AND DUTIES. All acts required of the
Employers under the Plan may be performed by the Company for itself and its
Subsidiaries, and the costs of the Plan may be equitably apportioned by the
Committee among the Company and the other Employers. Whenever an Employer is
permitted or required under the terms of the Plan to do or perform any act,
matter or thing, it shall be done and performed by any officer or employee of
the Employers who is thereunto duly authorized by the Employers.

          12.8      CONSTRUCTION AND APPLICABLE LAW. The Plan is intended to
qualify as an "employee stock purchase plan" within the meaning of Section
423(b) of the Code. Any provision of the Plan which is inconsistent with Section
423(b) of the Code shall, without further act or amendment by the Company or the
Committee, be reformed to comply with the requirements of Section 423(b). The
provisions of the Plan shall be construed, administered and enforced in
accordance with such Section and with the laws of the State of California
(excluding California's conflict of laws provisions).

          12.9      CAPTIONS. The captions contained in and the table of
contents prefixed to the Plan are inserted only as a matter of convenience, and
in no way define, limit, enlarge or describe the scope or intent of the Plan nor
in any way shall affect the construction of any provision of the Plan.

<PAGE>

EXECUTION

IN WITNESS WHEREOF, Informix Corporation, by its duly authorized officer, has
executed the Plan on the date indicated below.

INFORMIX CORPORATION

By:  /s/ Phillip E. White
Name:   Phillip E. White
Title:  Chairman of the Board,
          President and Chief
          Executive Officer

Dated: May 22, 1997

Approved by the stockholders: May 22, 1997

Amendment approved by the stockholders: June 21, 2000<PAGE>

                                                                     EXHIBIT 4.3

                              INFORMIX CORPORATION

                      1998 NON-STATUTORY STOCK OPTION PLAN

                  (EFFECTIVE AS OF JULY 17, 1998 AND AMENDED ON
              AUGUST 5, 1999, OCTOBER 21, 1999 AND APRIL 28, 2000)

          1.        PURPOSES OF THE PLAN. The purposes of this Non-Statutory
Stock Option Plan are:

          (a)       to attract and retain the best available personnel for
positions of substantial responsibility,

          (b)       to provide additional incentive to Employees and Consultants
(who are neither Officers nor Directors), and

          (c)       to promote the success of the Company's business.

          Options granted under the Plan will be Nonstatutory Stock Options.

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

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

          (b)       "APPLICABLE LAWS" means the requirements relating to the
administration of stock option plans under U.S. state corporate laws, U.S.
federal and state securities laws, the Code, any stock exchange or quotation
system on which the Common Stock is listed or quoted and the applicable laws of
any foreign country or jurisdiction where Options are, or will be, granted under
the Plan.

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

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

          (e)       "COMMITTEE" means a committee of Directors appointed by the
Board in accordance with Section 4 of the Plan.

          (f)       "COMMON STOCK" means the common stock of the Company.

          (g)       "COMPANY" means Informix Corporation, a Delaware
corporation.

          (h)       "CONSULTANT" means any person, including an advisor, engaged
by the Company or a Parent or Subsidiary to render services to such entity.

          (i)       "DIRECTOR" means a member of the Board.

          (j)       "DISABILITY" means total and permanent disability as defined
in Section 22(e)(3) of the Code.

<PAGE>

          (k)       "EMPLOYEE" means any person employed by the Company or any
Parent or Subsidiary of the Company. An Employee shall not cease to be an
Employee in the case of (i) any leave of absence approved by the Company or (ii)
transfers between locations of the Company or between the Company, its Parent,
any Subsidiary, or any successor. Neither service as a Director nor payment of a
director's fee by the Company shall be sufficient to constitute "employment" by
the Company.

          (l)       "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended.

          (m)       "FAIR MARKET VALUE" means, as of any date, the value of
Common Stock determined as follows:

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

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

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

          (n)       "NOTICE OF GRANT" means a written or electronic notice
evidencing certain terms and conditions of an individual Option grant. The
Notice of Grant is part of the Option Agreement.

          (o)       "OFFICER" means any Employee who is (i) an officer of the
Company pursuant to the specifications set forth in the By-Laws of the Company,
(ii) holds a position of vice-president or above, or (iii) is otherwise treated
as an officer by the Company.

          (p)       "OPTION" means a nonstatutory stock option granted pursuant
to the Plan, that is not intended to qualify as an incentive stock option within
the meaning of Section 422 of the Code and the regulations promulgated
thereunder.

          (q)       "OPTION AGREEMENT" means an agreement between the Company
and an Optionee evidencing the terms and conditions of an individual Option
grant. The Option Agreement is subject to the terms and conditions of the Plan.

          (r)       "OPTION EXCHANGE PROGRAM" means a program whereby
outstanding options are surrendered in exchange for options with a lower
exercise price.

          (s)       "OPTIONED STOCK" means the Common Stock subject to an
Option.

<PAGE>

          (t)       "OPTIONEE" means the holder of an outstanding Option granted
under the Plan.

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

          (v)       "PLAN" means this 1998 Non-Statutory Stock Option Plan.

          (w)       "SHARE" means a share of the Common Stock, as adjusted in
accordance with Section 12 of the Plan.

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

          3.        STOCK SUBJECT TO THE PLAN. Subject to the provisions of
Section 12 of the Plan, the maximum aggregate number of Shares which may be
optioned and sold under the Plan is fifteen million five hundred thousand
(15,500,000) Shares. The Shares may be authorized, but unissued, or reacquired
Common Stock.

          4.        ADMINISTRATION OF THE PLAN.

          (a)       The Plan shall be administered by (i) the Board or (ii) a
Committee, which committee shall be constituted to satisfy Applicable Laws.

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

                    (i)       to determine the Fair Market Value of the Common
                              Stock;

                    (ii)      to select the Employees (other than Officers and
                              Directors) to whom Options may be granted
                              hereunder;

                    (iii)     to determine whether and to what extent Options
                              are granted hereunder;

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

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

                    (vi)      to determine the terms and conditions, not
                              inconsistent with the terms of the Plan, of any
                              award granted hereunder. Such terms and conditions
                              include, but are not limited to, the exercise
                              price, the time or times when Options may be
                              exercised (which may be based on performance
                              criteria), any vesting acceleration or waiver of
                              forfeiture restrictions, and any restriction or
                              limitation regarding any Option or the shares of
                              Common Stock relating thereto, based in each case
                              on such factors as the Administrator, in its sole
                              discretion, shall determine;

                    (vii)     to reduce the exercise price of any Option to the
                              then current Fair Market Value if the Fair Market
                              Value of the Common Stock covered by such Option
                              shall have declined since the date the Option was
                              granted;

<PAGE>

                    (viii)    to institute an Option Exchange Program;

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

                    (x)       to modify or amend each Option (subject to Section
                              14(b) of the Plan), including the discretionary
                              authority to extend the post-termination
                              exercisability period of Options longer than is
                              otherwise provided for in the Plan;

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

                    (xii)     to determine the terms and restrictions applicable
                              to Options;

                    (xiii)    to allow Optionees to satisfy withholding tax
                              obligations by electing to have the Company
                              withhold from the Shares to be issued upon
                              exercise of an Option that number of Shares having
                              a Fair Market Value equal to the amount required
                              to be withheld. The Fair Market Value of the
                              Shares to be withheld shall be determined on the
                              date that the amount of tax to be withheld is to
                              be determined. All elections by an Optionee to
                              have Shares withheld for this purpose shall be
                              made in such form and under such conditions as the
                              Administrator may deem necessary or advisable; and

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

          (c)       EFFECT OF ADMINISTRATOR'S DECISION. The Administrator's
decisions, determinations and interpretations shall be final and binding on all
Optionees and any other holders of Options.

          5.        ELIGIBILITY. Options may be granted hereunder only to
Employees and Consultants who are neither Officers nor Directors.

          6.        LIMITATION. Neither the Plan nor any Option shall confer
upon an Optionee any right with respect to continuing the Optionee's
relationship as an Employee with the Company, nor shall they interfere in any
way with the Optionee's right or the Company's right to terminate such
relationship at any time, with or without cause.

          7.        TERM OF PLAN. The Plan shall become effective upon July 17,
1998. It shall continue in effect for ten (10) years, unless sooner terminated
under Section 14 of the Plan.

          8.        TERM OF OPTION. The term of each Option shall be stated in
the Option Agreement.

          9.        OPTION EXERCISE PRICE AND CONSIDERATION.

          (a)       EXERCISE PRICE. The per share exercise price for the Shares
to be issued pursuant to exercise of an Option shall be determined by the
Administrator.

<PAGE>

          (b)       WAITING PERIOD AND EXERCISE DATES. At the time an Option is
granted, the Administrator shall fix the period within which the Option may be
exercised and shall determine any conditions which must be satisfied before the
Option may be exercised.

          (c)       FORM OF CONSIDERATION. The Administrator shall determine the
acceptable form of consideration for exercising an Option, including the method
of payment. Such consideration may consist entirely of:

                    (i)       cash;

                    (ii)      check;

                    (iii)     promissory note;

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

                    (v)       consideration received by the Company under a
                              cashless exercise program implemented by the
                              Company in connection with the Plan;

                    (vi)      such other consideration and method of payment for
                              the issuance of Shares to the extent permitted by
                              Applicable Laws; or

                    (vii)     any combination of the foregoing methods of
                              payment.

          10.       EXERCISE OF OPTION.

          (a)       PROCEDURE FOR EXERCISE; RIGHTS AS A STOCKHOLDER. Any Option
granted hereunder shall be exercisable according to the terms of the Plan and at
such times and under such conditions as determined by the Administrator and set
forth in the Option Agreement. An Option may not be exercised for a fraction of
a Share.

                    An Option shall be deemed exercised when the Company
receives: (i) written or electronic notice of exercise (in accordance with the
Option Agreement) from the person entitled to exercise the Option, and (ii) full
payment for the Shares with respect to which the Option is exercised. Full
payment may consist of any consideration and method of payment authorized by the
Administrator and permitted by the Option Agreement and the Plan. Shares issued
upon exercise of an Option shall be issued in the name of the Optionee or, if
requested by the Optionee, in the name of the Optionee and his or her spouse.
Until the Shares are issued (as evidenced by the appropriate entry on the books
of the Company or of a duly authorized transfer agent of the Company), no right
to vote or receive dividends or any other rights as a stockholder shall exist
with respect to the Optioned Stock, notwithstanding the exercise of the Option.
The Company shall issue (or cause to be issued) such Shares promptly after the
Option is exercised. No adjustment will be made for a dividend or other right
for which the record date is prior to the date the Shares are issued, except as
provided in Section 12 of the Plan.

<PAGE>

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

          (b)       TERMINATION OF RELATIONSHIP AS AN EMPLOYEE. If an Optionee
ceases to be a an Employee, other than upon the Optionee's death or Disability,
the Optionee may exercise his or her Option, but only within such period of time
as is specified in the Option Agreement, and only to the extent that the Option
is vested on the date of termination (but in no event later than the expiration
of the term of such Option as set forth in the Option Agreement). If, on the
date of termination, the Optionee is not vested as to his or her entire Option,
the Shares covered by the unvested portion of the Option shall revert to the
Plan. If, after termination, the Optionee does not exercise his or her Option
within the time specified by the Administrator, the Option shall terminate, and
the Shares covered by such Option shall revert to the Plan.

          (c)       DISABILITY OF OPTIONEE. If an Optionee ceases to be an
Employee as a result of the Optionee's Disability, the Optionee may exercise his
or her Option within such period of time as is specified in the Option
Agreement, to the extent the Option is vested on the date of termination,
including as to accelerated vesting as set forth in the Option Agreement (but in
no event later than the expiration of the term of such Option as set forth in
the Option Agreement). If, on the date of termination, the Optionee is not
vested as to his or her entire Option, the Shares covered by the unvested
portion of the Option shall revert to the Plan. If, after termination, the
Optionee does not exercise his or her Option within the time specified herein,
the Option shall terminate, and the Shares covered by such Option shall revert
to the Plan.

          (d)       DEATH OF OPTIONEE. If an Optionee dies while an Employee,
the Option may be exercised within such period of time as is specified in the
Option Agreement (but in no event later than the expiration of the term of such
Option as set forth in the Notice of Grant), by the Optionee's estate or by a
person who acquires the right to exercise the Option by bequest or inheritance,
but only to the extent that the Option is vested on the date of death, including
as to accelerated vesting as set forth in the Option Agreement. If, at the time
of death, the Optionee is not vested as to his or her entire Option, the Shares
covered by the unvested portion of the Option shall immediately revert to the
Plan. The Option may be exercised by the executor or administrator of the
Optionee's estate or, if none, by the person(s) entitled to exercise the Option
under the Optionee's will or the laws of descent or distribution. If the Option
is not so exercised within the time specified herein, the Option shall
terminate, and the Shares covered by such Option shall revert to the Plan.

          (e)       BUYOUT PROVISIONS. The Administrator may at any time offer
to buy out for a payment in cash or Shares, an Option previously granted based
on such terms and conditions as the Administrator shall establish and
communicate to the Optionee at the time that such offer is made.

          11.       NON-TRANSFERABILITY OF OPTIONS. Unless determined otherwise
by the Administrator, an Option may not be sold, pledged, assigned,
hypothecated, transferred, or disposed of in any manner other than by will or by
the laws of descent or distribution and may be exercised, during the lifetime of
the Optionee, only by the Optionee. If the Administrator makes an Option
transferable, such Option shall contain such additional terms and conditions as
the Administrator deems appropriate.

          12.       CHANGES IN CAPITALIZATION AND OWNERSHIP.

          (a)       CHANGES IN CAPITALIZATION. Subject to any required action by
the stockholders of the Company, the number of shares of Common Stock covered by
each outstanding Option, and the number of shares of Common Stock which have
been authorized for issuance under the Plan but as to which no

<PAGE>

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

          (b)       CHANGES IN CONTROL. All obligations of the Company under the
Plan, with respect to Option granted thereunder, shall be binding on any
successor to the Company, whether the existence of such successor is the result
of a direct on indirect purchase, merger, consolidation, or otherwise, of all or
substantially all of the business and/or assets of the Company.

          13.       DATE OF GRANT. The date of grant of an Option shall be, for
all purposes, the date on which the Administrator makes the determination
granting such Option, or such other later date as is determined by the
Administrator. Notice of the determination shall be provided to each Optionee
within a reasonable time after the date of such grant.

          14.       AMENDMENT AND TERMINATION OF THE PLAN.

          (a)       AMENDMENT AND TERMINATION. The Board may at any time amend,
alter, suspend or terminate the Plan.

          (b)       EFFECT OF AMENDMENT OR TERMINATION. No amendment,
alteration, suspension or termination of the Plan shall impair the rights of any
Optionee, unless mutually agreed otherwise between the Optionee and the
Administrator, which agreement must be in writing and signed by the Optionee and
the Company. Termination of the Plan shall not affect the Administrator's
ability to exercise the powers granted to it hereunder with respect to options
granted under the Plan prior to the date of such termination.

          15.       CONDITIONS UPON ISSUANCE OF SHARES.

          (a)       LEGAL COMPLIANCE. Shares shall not be issued pursuant to the
exercise of an Option unless the exercise of such Option and the issuance and
delivery of such Shares shall comply with Applicable Laws and shall be further
subject to the approval of counsel for the Company with respect to such
compliance.

          (b)       INVESTMENT REPRESENTATIONS. As a condition to the exercise
of an Option the Company may require the person exercising such Option to
represent and warrant at the time of any such exercise that the Shares are being
purchased only for investment and without any present intention to sell or
distribute such Shares if, in the opinion of counsel for the Company, such a
representation is required.

          16.       INABILITY TO OBTAIN AUTHORITY. The inability of the Company
to obtain authority from any regulatory body having jurisdiction, which
authority is deemed by the Company's counsel to be necessary to the lawful
issuance and sale of any Shares hereunder, shall relieve the Company of any
liability in

<PAGE>

respect of the failure to issue or sell such Shares as to which such requisite
authority shall not have been obtained.

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

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