Document:

<PAGE>   1
                                                                    EXHIBIT 10.2

THE SECURITIES EVIDENCED BY THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE OR FOREIGN SECURITIES
LAWS, AND NO INTEREST MAY BE SOLD, DISTRIBUTED, ASSIGNED, OFFERED, PLEDGED OR
OTHERWISE TRANSFERRED UNLESS (A) THERE IS AN EFFECTIVE REGISTRATION STATEMENT
UNDER SUCH ACT AND APPLICABLE STATE OR FOREIGN SECURITIES LAWS COVERING ANY SUCH
TRANSACTION INVOLVING SAID SECURITIES, (B) THE COMPANY RECEIVES AN OPINION OF
LEGAL COUNSEL FOR THE HOLDER OF THE SECURITIES SATISFACTORY TO THE COMPANY
STATING THAT SUCH TRANSACTION IS EXEMPT FROM REGISTRATION, (C) SUCH TRANSACTION
IS IN COMPLIANCE WITH RULE 144 OF THE ACT, OR (D) THE COMPANY OTHERWISE
SATISFIES ITSELF THAT SUCH TRANSACTION IS EXEMPT FROM REGISTRATION.

No. W
Issued:  January 28, 2000                    Warrant to Purchase Ordinary
Void After June 28, 2001                     Shares

                            BACKWEB TECHNOLOGIES LTD.

                                     WARRANT

         THIS IS TO CERTIFY that, for $10 and other value received and subject
to these terms and conditions, RealNetworks, Inc, a Washington corporation, or
such person to whom this Warrant is transferred (the "HOLDER"), is entitled to
exercise this Warrant to purchase from BackWeb Technologies Ltd., an Israeli
corporation (the "COMPANY"), 114,500 fully paid and nonassessable Ordinary
Shares (the "WARRANT SHARES") at a price per share of U.S. $32.75 (the "EXERCISE
PRICE") (such number of shares, type of security and the Exercise Price being
subject to adjustment as provided below). The Exercise Price is equal to the
average NASDAQ National Market closing price of the Company's Ordinary Shares
for the 60 trading days before January 14, 2000.

1.       METHOD OF EXERCISE

         1.1      CASH EXERCISE RIGHT

This Warrant may be exercised by the Holder, at any time until June 28, 2001
(the "EXERCISE PERIOD"), in whole or in part, by delivering to the Company at
c/o BackWeb Technologies Inc., 2077 Gateway Place, Suite 500, San Jose, CA 95110
(or such other office or agency of the Company as it may designate by notice in
writing to the Holder at the address of the Holder appearing on the books of the
Company) (a) this Warrant certificate, (b) a certified or cashier's check
payable to the Company or a wire transfer in the amount of

<PAGE>   2
the Exercise Price multiplied by the number of shares for which this Warrant is
being exercised (the "PURCHASE PRICE"), (c) the Notice of Cash Exercise attached
as EXHIBIT A duly completed and executed by the Holder and (d) the Investment
Representations attached as EXHIBIT C duly completed and executed by the Holder.

         1.2      NET ISSUANCE RIGHT

         Notwithstanding the payment provisions set forth above, the Holder may
elect to convert this Warrant into Warrant Shares by surrendering this Warrant
at the office of the Company at the address set forth in Section 1.1 and
delivering to the Company the Notice of Net Issuance Exercise attached as
EXHIBIT B duly completed and executed by the Holder (together with the
Investment Representations attached as EXHIBIT C duly completed and executed by
the Holder, in which case the Company shall issue to the Holder the number of
Warrant Shares of the Company equal to the result obtained by (a) subtracting B
from A, (b) multiplying the difference by C, and (c) dividing the product by A
as set forth in the following equation:

X = (A - B) x C where:
    -----------
         A

                  X  =  the number of Warrant Shares issuable upon net
                        issuance exercise pursuant to the provisions of this
                        Section 1.2.

                  A  =  the Daily Price (as defined below) of one Warrant
                        Share on the day immediately preceding the date on
                        which the Holder delivers written notice to the
                        Company pursuant to this Section 1.2.

                  B  =  the Exercise Price for one Warrant Share under this
                        Warrant.

                  C  =  the number of Warrant Shares as to which this
                        Warrant is exercisable pursuant to the provisions of
                        Section 1.1.

         If the foregoing calculation results in a negative number, then no
Warrant Shares shall be issued upon net issuance exercise pursuant to this
Section 1.2.

         "DAILY PRICE" of a Warrant Share shall mean:

         (a) If the Company's Ordinary Shares are listed and traded on the New
York Stock Exchange, Inc. ("NYSE"), the closing price on such day as reported on
the NYSE Composite Transactions Tape;

         (b) If the Company's Ordinary Shares are not listed and traded on the
NYSE, the closing price on such day as reported by the principal national
securities exchange on which the Ordinary Shares are listed and traded;

                                      -2-
<PAGE>   3
         (c) If the Company's Ordinary Shares are not listed and traded on any
such securities exchange, the last reported sale price on such day on the
National Market of the National Association of Securities Dealers, Inc.
Automated Quotation System ("NASDAQ");

         (d) If the Company's Ordinary Shares are not traded on the NASDAQ
National Market, but are traded in the over-the-counter market, the average of
the closing bid and asked prices reported on such day; and

         (e) If none of the above is applicable, the Daily Price shall be the
fair market value of the Ordinary Shares as determined in good faith by the
Company's Board of Directors.

         Notwithstanding any of the foregoing, if the Holder disagrees with the
determination by the Board of Directors of the fair market value, if applicable,
the fair market value shall be determined by a nationally recognized investment
banking firm (i) which does not (and whose directors, officers, employees and
affiliates do not) have a direct or indirect financial interest in the Company,
(ii) which has not been, and, at the time it is called upon to give independent
financial advice to the Company, is not (and none of whose directors, officers,
employees or affiliates is) a promoter, director or officer of the Company or
any of its affiliates or an underwriter with respect to any of the Company's
securities, (iii) which does not provide any advice or opinions to the Company
except as an independent financial expert and (iv) which is mutually agreeable
to the Company and the Holder (the "INDEPENDENT FINANCIAL EXPERT"). If the
Company and the Holder do not promptly agree as to the Independent Financial
Expert, each shall appoint one investment-banking firm and the two firms so
appointed shall select the Independent Financial Expert to be employed by the
Company. All fees and expenses of the Independent Financial Expert for opinions
and services it provides as an Independent Financial Expert shall be paid by the
Company. In making its determination of the value of the Ordinary Shares, the
Independent Financial Expert shall use one or more valuation methods that the
Independent Financial Expert, in its best professional judgment, determines to
be most appropriate. After the Independent Financial expert has made its
determination, the Company shall cause the Independent Financial Expert to
prepare and make available to the Holder a report stating the methods of
valuation considered or used and the value of the Common Stock or other security
it values and containing a statement as to the nature and scope of the
examination made.

2.       DELIVERY OF STOCK CERTIFICATES; NO FRACTIONAL SHARES

2.1      Within 10 days after the payment of the Purchase Price following the
exercise of this Warrant (in whole or in part) or after notice of net issuance
exercise and compliance with Section 1.2, the Company at its expense shall issue
in the name of and deliver to the Holder (a) a certificate or certificates for
the number of fully paid and nonassessable Warrant Shares to which the Holder
shall be entitled upon such exercise, and (b) a new Warrant of like tenor to
purchase up to that number of Warrant Shares, if any, as to which this Warrant
has not been exercised if this Warrant has not expired. The Holder shall for all
purposes be deemed to have become the holder of record of such Warrant Shares on
the date this Warrant

                                      -3-
<PAGE>   4
was exercised (the date the Holder has fully complied with the requirements of
Section 1.1 or 1.2), irrespective of the date of delivery of the certificate or
certificates representing the Warrant Shares; provided that, if the date such
exercise is made is a date when the stock transfer books of the Company are
closed, such person shall be deemed to have become the holder of record of such
Warrant Shares at the close of business on the next succeeding date on which the
stock transfer books are open.

         2.2 No fractional shares shall be issued upon the exercise of this
Warrant. In lieu of fractional shares, the Company shall pay the Holder a sum in
cash equal to the Daily Price of the fractional share on the date of exercise.

3.       COVENANTS AS TO WARRANT SHARES

         The Company covenants that at all times during the Exercise Period
there shall be reserved for issuance and delivery upon exercise of this Warrant
such number of Warrant Shares as is necessary for exercise in full of this
Warrant and, from time to time, it will take all steps necessary to provide
sufficient reserves of Warrant Shares.

4.       ADJUSTMENTS UPON CERTAIN EVENTS

         Upon a merger, consolidation, acquisition of all or substantially all
of the property or stock, liquidation or other reorganization of the Company
(collectively, a "REORGANIZATION") during the Exercise Period lawful provision
shall be made so that the Holder shall thereafter be entitled to receive, upon
exercise of this Warrant, the number of shares of securities of the successor
corporation resulting from such Reorganization (and cash and other property), to
which a holder of the Warrant Shares issuable upon exercise of this Warrant
would have been entitled in such Reorganization if this Warrant had been
exercised immediately prior to such Reorganization. In any such case,
appropriate adjustment (as determined in good faith by the Company's Board of
Directors) shall be made in the application of the provisions of this Warrant
with respect to the rights and interest of the Holder after the Reorganization
to the end that the provisions of this Warrant (including adjustments of the
Exercise Price and the number and type of securities purchasable pursuant to the
terms of this Warrant) shall be applicable after that event, as near as
reasonably may be, in relation to any shares deliverable after that event upon
the exercise of this Warrant.

         4.2      ADJUSTMENTS FOR STOCK SPLITS, DIVIDENDS

         If the Company shall subdivide the number of outstanding shares of the
same class as the Warrant Shares into a greater number of shares, then the
Exercise Price in effect before such dividend or subdivision shall be
proportionately reduced and the number of Warrant Shares at that time issuable
pursuant to the exercise of this Warrant shall be proportionately increased;
and, conversely, if the Company shall contract the number of outstanding shares
of the same class as the Warrant Shares by combining such shares into a smaller
number of shares, then the Exercise Price in effect before such combination
shall be proportionately increased and the number of Warrant Shares at that time
issuable pursuant to the exercise or

                                      -4-
<PAGE>   5
conversion of this Warrant shall be proportionately decreased. Each adjustment
in the number of Warrant Shares issuable shall be to the nearest whole share.

         4.3      CERTIFICATE AS TO ADJUSTMENTS

         In the case of any adjustment in the Exercise Price or number and type
of securities issuable upon exercise of this Warrant, the Company will promptly
give written notice to the Holder in the form of a certificate, certified and
confirmed by an officer of the Company, setting forth the adjustment in
reasonable detail.

5.       SECURITIES LAWS RESTRICTIONS; LEGEND ON WARRANT SHARES

         5.1 This Warrant and the securities issuable upon exercise have not
been registered under the Securities Act of 1933, as amended (the "ACT"), or
applicable state or foreign securities laws, and no interest may be sold,
distributed, assigned, offered, pledged or otherwise transferred to any entity
other than a subsidiary of the Holder unless (a) there is an effective
registration statement under such Act and applicable state and foreign
securities laws covering any such transaction involving said securities, (b) the
Company receives an opinion of legal counsel for the holder of the securities
satisfactory to the Company stating that such transaction is exempt from
registration, (c) such transaction is in compliance with Rule 144 of the Act, or
(d) the Company otherwise satisfies itself that such transaction is exempt from
registration.

         5.2 A legend setting forth or referring to the above restrictions shall
be placed on this Warrant, any replacement and any certificate representing the
Warrant Shares, and a stop transfer order shall be placed on the books of the
Company and with any transfer agent until such securities may be legally sold or
otherwise transferred.

6.       EXCHANGE OF WARRANT; LOST OR DAMAGED WARRANT CERTIFICATE

         This Warrant is exchangeable upon its surrender by the Holder at the
office of the Company. Upon receipt by the Company of satisfactory evidence of
the loss, theft, destruction or damage of this Warrant and either (in the case
of loss, theft or destruction) reasonable indemnification or (in the case of
damage) the surrender of this Warrant for cancellation, the Company will execute
and deliver to the Holder, without charge, a new Warrant of like denomination.

7.       NOTICES OF RECORD DATE, ETC.

         In the event of

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

                                      -5-
<PAGE>   6
         (b) any reorganization of the Company, any reclassification or
recapitalization of the capital structure of the Company, or any transfer of all
or substantially all the assets of the Company to, or consolidation or merger
of, the Company with or into any person;

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

         (d) any proposed issue or grant by the Company to the holders of
Warrant Shares of any shares of any class or any other securities, or any right
or warrant to subscribe for, purchase or otherwise acquire any units of any
class or any other securities; or

         (e) any other event as to which the Company is required to give notice
to any holders of Warrant Shares,

then and in each such event the Company will mail to the Holder a notice
specifying (i) the date on which any such record is to be taken, (ii) the date
on which any such reorganization, reclassification, recapitalization, transfer,
consolidation, merger, dissolution, liquidation or winding-up is to take place,
and the time, if any is to be fixed, as to which the holders of record of
Warrant Shares or securities into which the Warrant Shares are convertible shall
be entitled to exchange their shares for securities or other property
deliverable on such reorganization, reclassification, recapitalization,
transfer, consolidation, merger, dissolution, liquidation or winding-up, (iii)
the amount and character of any stock or other securities, or rights or
warrants, proposed to be issued or granted, the date of such proposed issue or
grant and the persons or class of persons to whom such proposed issue or grant
is to be offered or made, and (iv) in reasonable detail, the facts, including
the proposed date, concerning any other such event. Such notice shall be
delivered to the Holder at least 20 business days prior to the date specified in
the notice.

8.       REPRESENTATIONS AND WARRANTIES OF THE HOLDER

         The Holder is an accredited investor as defined in Rule 501(a) of
Regulation D promulgated under the Act.

         The Holder is aware of the Company's business affairs and financial
condition and has acquired sufficient information about the Company to reach an
informed and knowledgeable decision to acquire this Warrant and the Warrant
Shares. The Holder is acquiring this Warrant and the Warrant Shares issuable
upon exercise thereof for its own account, to hold for investment, and not with
a view to or for sale in connection with any distribution thereof in violation
of the Act, and, upon any exercise of this Warrant, the Holder shall confirm the
same in writing, by executing the form attached as EXHIBIT C hereto. The Holder
shall not make any sale, transfer or other disposition of this Warrant or any
Warrant Shares issuable upon exercise thereof in violation of the Act or the
General Rules and Regulations promulgated thereunder by the Securities and
Exchange Commission (the "SEC") or in violation of any applicable state or
foreign securities law.

                                      -6-
<PAGE>   7
         The Holder has been advised that this Warrant, and the Warrant Shares
issuable upon exercise thereof, have not been registered under the Act or state
or foreign securities laws in reliance upon an exemption from registration, and
that reliance by the Company on such exemptions is predicated in part on
Holder's representations set forth herein.

         The Holder has been informed that under the Act, this Warrant and the
Warrant Shares issuable upon conversion thereof must be held indefinitely unless
subsequently registered under the Act or unless an exemption from such
registration (such as Rule 144) is available with respect to any proposed
transfer or disposition by the Holder. The Holder further agrees that the
Company may refuse to permit the Holder to sell, transfer or dispose of this
Warrant, and the Warrant Shares issuable upon conversion thereof (except as
permitted under Rule 144) unless there is in effect a registration statement
under the Act and any applicable state or foreign securities laws covering such
transfer, or unless the Holder furnishes an opinion of counsel reasonably
satisfactory to counsel for the Company, to the effect that such registration is
not required; provided, however, such opinion will not be required in connection
with a transfer in compliance with Rule 144 or to a subsidiary of the Purchaser.

9.       MISCELLANEOUS

         9.1      HOLDER AS OWNER

         The Company may deem and treat the holder of record of this Warrant as
the absolute owner for all purposes regardless of any notice to the contrary.

         9.2      NO SHAREHOLDER RIGHTS

         This Warrant shall not entitle the Holder to any voting rights or any
other rights as a shareholder of the Company or to any other rights except the
rights stated herein; and no dividend or interest shall be payable or shall
accrue in respect of this Warrant or the Warrant Shares, until this Warrant is
exercised.

         9.3      NOTICES

         Unless otherwise provided, any notice under this Warrant shall be given
in writing and shall be deemed effectively given (a) upon personal delivery to
the party to be notified, (b) upon confirmation of receipt by fax by the party
to be notified, (c) two business days after deposit with a reputable overnight
courier, prepaid for overnight delivery and addressed as set forth in (d), or
(d) five days after deposit with the United States Post Office or any foreign
postal service, postage prepaid, registered or certified with return receipt
requested and addressed to the party to be notified at the address indicated
below, or at such other address as such party may designate by 10 days' advance
written notice to the other party given in the foregoing manner.

                                      -7-
<PAGE>   8
         If to the Holder:

                           To the address last furnished
                           in writing to the Company by
                           the Holder

         If to the Company:

                           BackWeb Technologies Ltd.
                           c/o BackWeb Technologies Inc.
                           2077 Gateway Place, Suite 500
                           San Jose, CA 95110
                           Attn: General Counsel
                           Facsimile: (408) 933-1800
                           Phone: (408) 933-1763

         9.4      AMENDMENTS AND WAIVERS

         Any term of this Warrant may be amended and the observance of any term
may be waived (either generally or in a particular instance and either
retroactively or prospectively) only with the written consent of the Company and
the Holder. Any amendment or waiver effected in accordance with this Section 9.4
shall be binding on each future Holder and the Company.

         9.5      GOVERNING LAW

         This Warrant shall be governed by and construed under the laws of the
state of California without regard to principles of conflict of laws.

         9.6      SUCCESSORS AND ASSIGNS; TRANSFER

         The terms and conditions of this Warrant shall inure to the benefit of
and be binding on the respective successors and assigns of the parties. This
Warrant may not be transferred or assigned without the consent of the Company,
except, subject to applicable U.S., state, and foreign securities laws, to a
subsidiary of the Holder.

                            [Signature page follows.]

                                      -8-
<PAGE>   9
         IN WITNESS WHEREOF, the parties have executed this Warrant as of the
date first written above.

BackWeb Technologies Ltd.                  RealNetworks, Inc.

By: /s/ Eli Barkat                         By: /s/ Paul Bialek

                                      -9-
<PAGE>   10
                             NOTICE OF CASH EXERCISE

To :  BackWeb Technologies Ltd.

         The undersigned hereby irrevocably elects to purchase ___________
Ordinary Shares of BackWeb Technologies Ltd. (the "COMPANY") issuable upon the
exercise of the attached Warrant and requests that certificates for such shares
be issued in the name of and delivered to the address of the undersigned stated
below and, if said number of shares shall not be all the shares that may be
purchased pursuant to the attached Warrant, that a new Warrant evidencing the
right to purchase the balance of such shares be registered in the name of, and
delivered to, the undersigned at the address stated below. The undersigned
agrees with and represents to the Company that said shares are acquired for the
account of the undersigned for investment and not with a view to, or for sale in
connection with, any distribution or public offering within the meaning of the
Securities Act of 1933, as amended.

         Payment enclosed in the amount of $___________.

         Dated:  ________________

         Name of Holder of Warrant:_____________________________________________
                                                 (please print)

         Address:  _____________________________________________________________

         Signature:  ___________________________________________________________

<PAGE>   11
                                                                       Exhibit B

                         NOTICE OF NET ISSUANCE EXERCISE

To:      BackWeb Technologies Ltd.

         The undersigned hereby irrevocably elects to convert the attached
Warrant into such number of shares of Common Stock of BackWeb Technologies Ltd.
(the "COMPANY") as is determined pursuant to Section 1.2 of the attached
Warrant. The undersigned requests that certificates of such net issuance shares
be delivered to the address of the undersigned stated below. The undersigned
agrees with and represents to the Company that said shares are acquired for the
account of the undersigned for investment and not with a view to, or for sale in
connection with, any distribution or public offering within the meaning of the
Securities Act of 1933, as amended.

         Dated:  ____________________

         Name of Holder of Warrant:_____________________________________________
                                                 (please print)

         Address:  _____________________________________________________________

         Signature:  ___________________________________________________________

<PAGE>   12
                                                                       EXHIBIT C

                           INVESTMENT REPRESENTATIONS

         THIS AGREEMENT MUST BE COMPLETED, SIGNED AND RETURNED TO BACKWEB
TECHNOLOGIES LTD. ALONG WITH THE NOTICE OF EXERCISE OR NOTICE OF NET ISSUANCE
EXERCISE, AS THE CASE MAY BE BEFORE THE STOCK ISSUABLE UPON EXERCISE OF THE
WARRANT DATED JANUARY __, 2000, WILL BE ISSUED.

                                                ______________, 20__

         BackWeb Technologies Ltd.
         3 Abba Hillel Street
         Ramat Gan, Israel
         Attn:  Chief Executive Officer

         Ladies and Gentlemen:

                  The undersigned, ____________ ("Purchaser"), intends to
acquire up to _______ shares of the Ordinary Shares (the "Ordinary Shares") of
BackWeb Technologies Ltd. (the "Company") from the Company pursuant to the
exercise of that certain Warrant held by Purchaser. The Stock will be issued to
Purchaser in a transaction not involving a public offering and pursuant to an
exemption from registration under the Securities Act of 1933, as amended (the
"1933 Act") and applicable state securities laws. In connection with such
purchase and in order to comply with the exemptions from registration relied
upon by the Company, Purchaser represents, warrants and agrees as follows:

                  Purchaser is an accredited investor as defined in Rule 501(a)
of Regulation D promulgated under the Securities Act.

                  Purchaser is acquiring the Ordinary Shares for its own
account, to hold for investment, and not with a view to or for sale in
connection with any distribution of the Ordinary Shares in violation of the 1933
Act. Purchaser shall not make any sale, transfer or other disposition of the
Ordinary Shares in violation of the 1933 Act or the General Rules and
Regulations promulgated thereunder by the Securities and Exchange Commission
(the "SEC") or in violation of any applicable state securities law.

                  Purchaser has been advised that the Ordinary Shares have not
been registered under the 1933 Act or state securities laws on the ground that
this transaction is exempt from

                                      -2-
<PAGE>   13
registration, and that reliance by the Company on such exemptions is predicated
in part on Purchaser's representations set forth in this letter.

                  Purchaser has been informed that under the 1933 Act, the
Ordinary Shares must be held indefinitely unless it is subsequently registered
under the 1933 Act or unless an exemption from such registration (such as Rule
144) is available with respect to any proposed transfer or disposition by
Purchaser of the Ordinary Shares. Purchaser further agrees that the Company may
refuse to permit Purchaser to sell, transfer or dispose of the Ordinary Shares
(except as permitted under Rule 144) unless there is in effect a registration
statement under the 1933 Act and any applicable state securities laws covering
such transfer, or unless Purchaser furnishes an opinion of counsel reasonably
satisfactory to counsel for the Company, to the effect that such registration is
not required; provided, however, such opinion will not be required in connection
with a transfer in compliance with Rule 144 or to a subsidiary of the Purchaser.

                  Purchaser also understands and agrees that there will be
placed on the certificate(s) for the Ordinary Stock, or any substitutions
therefor, a legend stating in substance:

                  THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE OR
FOREIGN SECURITIES LAWS, AND NO INTEREST MAY BE SOLD, DISTRIBUTED, ASSIGNED,
OFFERED, PLEDGED OR OTHERWISE TRANSFERRED UNLESS (A) THERE IS AN EFFECTIVE
REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE OR FOREIGN SECURITIES
LAWS COVERING ANY SUCH TRANSACTION INVOLVING SAID SECURITIES, (B) THE COMPANY
RECEIVES AN OPINION OF LEGAL COUNSEL FOR THE HOLDER OF THE SECURITIES
SATISFACTORY TO THE COMPANY STATING THAT SUCH TRANSACTION IS EXEMPT FROM
REGISTRATION, (C) SUCH TRANSACTION IS IN COMPLIANCE WITH RULE 144 OF THE ACT, OR
(D) THE COMPANY OTHERWISE SATISFIES ITSELF THAT SUCH TRANSACTION IS EXEMPT FROM
REGISTRATION.

                  Purchaser has carefully read this letter and has discussed its
requirements and other applicable limitations upon Purchaser's resale of the
Ordinary Shares with Purchaser's counsel.

                                       Very truly yours,

                                       _________________________________________

                                       By: _____________________________________

                                       Title: __________________________________

                                      -3-
<PAGE>   14
                                   ASSIGNMENT

         For value received the undersigned sells, assigns and transfers to the
transferee named below, and the transferee agrees to be bound by all the terms
and conditions of, the attached Warrant, together with all right, title and
interest, and the undersigned does irrevocably constitute and appoint the
transfer agent of BackWeb Technologies Ltd. (the "COMPANY") as the undersigned's
attorney, to transfer said Warrant on the books of the Company, with full power
of substitution in the premises.

         Dated:  __________________________

         Name of Holder of Warrant:_____________________________________________
                                                 (please print)

         Address:  _____________________________________________________________

         Signature of Transferor:  _____________________________________________

         Name of transferee:____________________________________________________
                                                 (please print)

         Address of transferee:_________________________________________________

         Signature of Transferee:  _____________________________________________<PAGE>   1
                                                                    EXHIBIT 10.2

                      FIRST AMENDMENT TO SECOND AMENDED AND
                           RESTATED STOCK OPTION PLAN
                                       OF
                                FUTURELINK CORP.
                             a Delaware corporation

        The undersigned, being the duly elected and acting Secretary of
FutureLink Corp., a Delaware corporation (the "Company"), does hereby certify as
follows:

        1. The Board of Directors of the Company duly adopted the following
resolution as of December __, 1999 amending the Company's Second Amended and
Restated Stock Option Plan:

        "RESOLVED, that Sections 6 and 7.4 of the Plan of this Company are
        hereby amended to read in their entirety as follows:

                6. SHARES SUBJECT TO OPTIONS. The stock available for grant of
                Options under the Plan shall be shares in the Company's
                authorized but unissued or reacquired, Common Stock. The
                aggregate number of shares which may be issued pursuant to
                exercise of Options granted under the Plan, as amended, shall
                not exceed twenty percent (20%) of the shares of Common Stock,
                calculated on a fully diluted basis not including Common Stock
                underlying outstanding stock options, at the time of each grant
                (subject to adjustment as provided in Section 7.13 hereof)
                including shares previously issued under the Plan; provided,
                however, that at no time shall the total number of shares of
                Common Stock issuable upon the exercise of all outstanding
                options and the total number of shares of Common Stock provided
                for under any stock bonus or similar plan of the Company exceed
                the applicable percentage as calculated in accordance with the
                conditions and exclusions of Rule 260.140.45 of Title 10 of the
                California Code of Regulations, based on the shares of Common
                Stock of the Company which are outstanding at the time the
                calculation is made. The maximum number of shares with respect
                to which options may be granted to any employee in any one
                calendar year shall be 500,000 shares (subject to adjustment as
                provided in Section 7.13 hereof). The maximum number of shares
                with respect to which Incentive Stock Options may be granted
                under this Plan shall not exceed 2,000,000 in the aggregate
                (subject to adjustment as provided in Section 7.13 hereof). In
                the event that any outstanding Option under the Plan for any
                reason expires, or is terminated, the shares of Common Stock
                allocable to the unexercised portion of the Option shall again
                be available for Options under the Plan as if no Option had been
                granted with respect to such shares.

                7.4 TERM OF OPTION. No Option shall be exercisable after the
                expiration of the earliest of (a) ten years after the date the
                option is granted, (b) three months after the date the
                Optionee's employment with the Company and its

<PAGE>   2

                subsidiaries terminates if such termination is for any reason
                other than disability or death, (c) one year after the date the
                Optionee's employment with the Company and its subsidiaries
                terminates if such termination is a result of death or
                disability; provided, however, that the Option agreement for any
                Option may provide for shorter periods in each of the foregoing
                instances, except that such shorter periods shall not be less
                than thirty (30) days in the event of termination of employment
                for any reason other than death or disability and not less than
                six (6) months in the event of termination as a result of death
                or disability. Notwithstanding the foregoing, in the case of any
                Incentive Stock Option granted under the Plan to an employee who
                owns stock possessing more than 10% of the total combined voting
                power of all classes of stock of the Company, its parent or any
                of its subsidiary corporations, the term of such Option shall
                not be more than five years from the date the Option is
                granted."

        2. Such amendment has not been rescinded or repealed and is now in full
force and effect.

        IN WITNESS WHEREOF, I have hereunto executed this certificate dated as
of December __, 1999.

                                            /s/ KYLE B.A. SCOTT
                                            ------------------------------------
                                            Kyle B.A. Scott, Secretary

<PAGE>   3

                                FUTURELINK CORP.
                                 SECOND AMENDED
                                  AND RESTATED

                                STOCK OPTION PLAN

                                                                               i

<PAGE>   4
                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                               PAGE
                                                                                               ----
<S>     <C>                                                                                    <C>
1.       Purpose............................................................................    1

2.       Incentive and Non-Qualified Stock Options..........................................    1

3.       Definitions........................................................................    1
         3.1     Board......................................................................    1
         3.2     Code.......................................................................    1
         3.3     Common Stock...............................................................    1
         3.4     Company....................................................................    1
         3.5     Disabled or Disability.....................................................    1
         3.6     Fair Market Value..........................................................    1
         3.7     Incentive Stock Option.....................................................    2
         3.8     Non-Qualified Stock Option.................................................    2
         3.9     Optionee...................................................................    2
         3.10   Plan........................................................................    2
         3.11   Plan Administrator..........................................................    2
         3.12   Stock Option or Option......................................................    2

4.       Administration.....................................................................    2
         4.1     Administration by Board....................................................    2
         4.2     Administration by Committee................................................    3

5.       Eligibility........................................................................    3

6.       Shares Subject to Options..........................................................    4

7.       Terms and Conditions of Options....................................................    4
         7.1     Number of Shares Subject to Option.........................................    4
         7.2     Option Price...............................................................    4
         7.3     Notice and Payment.........................................................    5
         7.4     Term of Option.............................................................    6
         7.5     Exercise of Option.........................................................    6
         7.6     No Transfer of Option......................................................    7
         7.7     Limit on Incentive Stock Options...........................................    7
         7.8     Restriction on Issuance of Shares..........................................    7
         7.9     Investment Representation..................................................    7
         7.10   Rights as a Shareholder or Employee.........................................    7
         7.11   No Fractional Shares........................................................    8
         7.12   Exercisability in the Event of Death........................................    8
         7.13   Recapitalization or Reorganization of Company...............................    8
</TABLE>

                                                                              ii

<PAGE>   5

<TABLE>
<S>                                                                                            <C>
         7.14   Modification, Extension, and Renewal of Options.............................    9
         7.15   Other Provisions............................................................    9

8.       Termination or Amendment of the Plan...............................................    9

9.       Indemnification....................................................................    10

10.      Effective Date and Term of Plan....................................................    10
</TABLE>

                                                                             iii
<PAGE>   6

                                FUTURELINK CORP.
                  SECOND AMENDED AND RESTATED STOCK OPTION PLAN

1.       PURPOSE. The purpose of this FutureLink Corp. Stock Option Plan
         ("Plan") is to further the growth and development of FutureLink Corp.
         (the "Company") by providing, through ownership of stock of the
         Company, an incentive to officers, other key employees and directors
         who are in a position to contribute materially to the prosperity of the
         Company, to increase such persons' interests in the Company's welfare,
         to encourage them to continue their services to the Company or its
         subsidiaries, and to attract individuals of outstanding ability to
         enter the employment or service of the Company or its subsidiaries, to
         remain or become directors of the Company and to provide valuable
         services to the Company or its subsidiaries.

2.       INCENTIVE AND NON-QUALIFIED STOCK OPTIONS. Two types of Stock Options
         (referred to herein as "Options" without distinction between such two
         types, except as provided herein) may be granted under the Plan:
         Options intended to qualify as Incentive Stock Options under Section
         422 of the Code and Non-Qualified Stock Options not specifically
         authorized or qualified for favorable income tax treatment by the Code.

3.       DEFINITIONS. The following definitions are applicable to the Plan:

         3.1      BOARD. The Board of Directors of the Company.

         3.2      CODE. The Internal Revenue Code of 1986, as amended from time
                  to time.

         3.3      COMMON STOCK. The shares of the $.0001 par value per share
                  common stock of the Company.

         3.4      COMPANY. FutureLink Corp., a Delaware corporation.

         3.5      DISABLED OR DISABILITY. For the purposes of Section 7.4, a
                  disability of the type defined in Section 22(e)(3) of the
                  Code. The determination of whether an individual is disabled
                  or has a Disability is determined under procedures established
                  by the Plan Administrator for purposes of the Plan.

         3.6      FAIR MARKET VALUE. For purposes of the Plan, the "fair market
                  value" per share of the Common Stock of the Company at any
                  date shall be (a) if the Common Stock is listed on an
                  established stock exchange or exchanges or The Nasdaq Stock
                  Market's National Market System, the closing price per share
                  on the last trading day immediately preceding such date on the
                  principal exchange on which it is traded or as reported by The
                  Nasdaq Stock Market, or (b) if the Common Stock is not then
                  listed on an

                                                                               1
<PAGE>   7

                  exchange or The Nasdaq Stock Market's National Market System,
                  the closing price per share on the last trading day
                  immediately preceding such date reported by The Nasdaq Stock
                  Market, or if sales are not reported by The Nasdaq Stock
                  Market, the average of the closing bid and asked prices per
                  share for the Common Stock in the over-the-counter market as
                  quoted on the last trading day immediately preceding such
                  date, or (c) if the Common Stock is not then listed on an
                  exchange, The Nasdaq Stock Market's National Market System or
                  reported by The Nasdaq Stock Market or quoted in the
                  over-the-counter market, a value determined in good faith by
                  the Plan Administrator.

         3.7      INCENTIVE STOCK OPTION. Any Stock Option which qualifies as an
                  "incentive stock option" within the meaning of Section 422 of
                  the Code.

         3.8      NON-QUALIFIED STOCK OPTION. Any Stock Option that is not an
                  Incentive Stock Option.

         3.9      OPTIONEE. The recipient of a Stock Option.

         3.10     PLAN. The FutureLink Corp. Second Amended and Restated Stock
                  Option Plan, as amended from time to time.

         3.11     PLAN ADMINISTRATOR. The Board or the Compensation Committee
                  designated pursuant to Section 4.2 hereof to administer,
                  construe and interpret the terms of the Plan.

         3.12     STOCK OPTION OR OPTION. Any option to purchase shares of
                  Common Stock granted pursuant to Section 7 hereof.

4.       ADMINISTRATION.

         4.1      ADMINISTRATION BY BOARD. Subject to Section 4.2 hereof, the
                  Plan Administrator shall be the Board of Directors of the
                  Company (the "Board") during such periods of time as all
                  members of the Board are "outside directors" as defined in
                  Treas. Regs. Section 1.162-27(e)(3) ("outside directors").
                  Anything to the contrary notwithstanding, the requirement that
                  all members of the Board be outside directors shall not apply
                  for any period of time during which the Company's Common Stock
                  is not registered pursuant to Section 12 of the Securities
                  Exchange Act of 1934, as amended. Subject to the provisions of
                  the Plan, the Plan Administrator shall have authority to
                  construe and interpret the Plan, to promulgate, amend, and
                  rescind rules and regulations relating to its administration,
                  from time to time to select from among the eligible employees
                  and directors (as determined pursuant to Section 5) of the
                  Company and its subsidiaries those employees and directors to
                  whom Stock Options will be granted, to determine the timing
                  and manner of the grant of the Options, to

                                                                               2
<PAGE>   8

                  determine the exercise price, the number of shares covered by
                  and all of the terms of the Stock Options, to determine the
                  duration and purpose of leaves of absence which may be granted
                  to Stock Option holders without constituting termination of
                  their employment for purposes of the Plan, and to make all of
                  the determinations necessary or advisable for administration
                  of the Plan. The interpretation and construction by the Plan
                  Administrator of any provision of the Plan, or of any
                  agreement issued and executed under the Plan, shall be final
                  and binding upon all parties. No member of the Board shall be
                  liable for any action or determination undertaken or made in
                  good faith with respect to the Plan or any agreement executed
                  pursuant to the Plan.

         4.2      ADMINISTRATION BY COMMITTEE. The Board may, in its sole
                  discretion, delegate any or all of its duties as Plan
                  Administrator and, subject to the provisions of Section 4.1 of
                  the Plan, if at any time the Board includes any person who is
                  not an outside director, the Board shall delegate all of its
                  duties as Plan Administrator during such period of time to a
                  compensation committee (the "Committee") of not fewer than two
                  (2) members of the Board, all of the members of which
                  Committee shall be persons who, in the opinion of the counsel
                  to the Company are outside directors and "non-employee
                  directors" within the meaning of Rule 16b-3(b)(3)(i)
                  promulgated by the Securities and Exchange Commission, to be
                  appointed by and serve at the pleasure of the Board. Anything
                  to the contrary notwithstanding, the requirement that all
                  members of the Committee be non-employee directors and outside
                  directors shall not apply for any period of time during which
                  the Company's Common Stock is not registered pursuant to
                  Section 12 of the Securities Exchange Act of 1934, as amended.
                  Those provisions of the Plan that make express reference to
                  Rule 16b-3 under the Securities Exchange Act of 1934, as
                  amended, shall apply only to reporting persons under such act.
                  From time to time, the Board may increase or decrease (to not
                  less than two members) the size of the Committee, and add
                  additional members to, or remove members from, the Committee.
                  The Committee shall act pursuant to a majority vote, or the
                  written consent of a majority of its members, and the minutes
                  shall be kept of all of its meetings and copies thereof shall
                  be provided to the Board. Subject to the provisions of the
                  Plan and the directions of the Board, the Committee may
                  establish and follow such rules and regulations for the
                  conduct of its business as it may deem advisable. No member of
                  the Committee shall be liable for any action or determination
                  undertaken or made in good faith with respect to the Plan or
                  any agreement executed pursuant to the Plan.

5.       ELIGIBILITY. Subject to the determination of the Plan Administrator,
         any employee, director or consultant (including any officer or director
         who is an employee) of the Company or any of its subsidiaries shall be
         eligible to receive Options under the Plan; provided, however any
         person who owns more than ten

                                                                               3
<PAGE>   9

         percent (10%) of the total combined voting power of all classes of
         outstanding stock of the Company, its parent or any of its subsidiaries
         shall not receive an Option unless (i) the purchase price of the shares
         subject to the Option is at least one hundred ten percent (110%) of the
         Fair Market Value of such shares on the date of grant, and (ii) if such
         Option is intended to be an Incentive Stock Option, such Option by its
         terms is not exercisable after the expiration of five (5) years from
         the date of grant. An Optionee may receive more than one Option under
         the Plan. Non-employee directors and non-employee consultants shall not
         be eligible to receive any Incentive Stock Option under the Plan.

6.       SHARES SUBJECT TO OPTIONS. The stock available for grant of Options
         under the Plan shall be shares in the Company's authorized but unissued
         or reacquired, Common Stock. The aggregate number of shares which may
         be issued pursuant to exercise of Options granted under the Plan, as
         amended, shall not exceed twenty percent of the shares of Common Stock,
         calculated on a fully diluted basis not including Common Stock
         underlying outstanding stock options, at the time of each grant
         (subject to adjustment as provided in Section 7.13 hereof) including
         shares previously issued under the Plan. The maximum number of shares
         with respect to which options may be granted to any employee in any one
         calendar year shall be 500,000 shares (subject to adjustment as
         provided in Section 7.13 hereof). The maximum number of shares with
         respect to which Incentive Stock Options may be granted under this Plan
         shall not exceed 2,000,000 in the aggregate (subject to adjustment as
         provided in Section 7.13 hereof). In the event that any outstanding
         Option under the Plan for any reason expires, or is terminated, the
         shares of Common Stock allocable to the unexercised portion of the
         Option shall again be available for Options under the Plan as if no
         Option had been granted with respect to such shares.

7.       TERMS AND CONDITIONS OF OPTIONS. Options granted under the Plan shall
         be evidenced by agreements (which need not be identical) in such form
         and containing such provisions which are consistent with the Plan as
         the Plan Administrator shall from time to time approve. Such agreements
         may incorporate all or any of the terms hereof by reference and shall
         comply with and be subject to the following terms and conditions.

         7.1      NUMBER OF SHARES SUBJECT TO OPTION. Each Option agreement
                  shall specify the number of shares subject to the Option.

         7.2      OPTION PRICE. The purchase price for any shares subject to an
                  Option granted under the Plan shall be determined by the Plan
                  Administrator at the time of grant in accordance with the
                  requirements of this Section 7.2. In all instances, the
                  purchase price for any shares subject to an Option under the
                  Plan shall be at least eighty-five percent (85%) of the Fair
                  Market Value of such shares on the date of grant; provided,
                  however, if such Option is an Incentive Stock Option, the
                  purchase price for the shares subject to such Option shall not
                  be less than one hundred percent (100%)

                                                                               4
<PAGE>   10

                  of the Fair Market Value of such shares on the date of grant.
                  Notwithstanding the foregoing, with respect to any Option
                  granted to any person who owns more than ten percent (10%) of
                  the total combined voting power of all classes of outstanding
                  stock of the Company, its parent or any of it's subsidiaries,
                  the purchase price of the shares subject to such Option shall
                  be at least one hundred ten percent (110%) of the Fair Market
                  Value of such shares on the date of grant.

7.3      NOTICE AND PAYMENT. Any exercisable portion of a Stock Option may be
         exercised only by:

         (a)      delivery of a written notice to the Company, prior to the time
                  when such Stock Option becomes unexercisable under Section 7.4
                  hereof, stating the number of shares being purchased and
                  complying with all applicable rules established by the Plan
                  Administrator;

         (b)      payment in full of the exercise price of such Option by, as
                  applicable (i) cash or cheque for an amount equal to the
                  aggregate Option exercise price for the number of shares being
                  purchased, (ii) in the discretion of the Plan Administrator,
                  upon such terms as the Plan Administrator shall approve, a
                  copy of instructions to a broker directing such broker to sell
                  the Common Stock for which such Option is exercised, and to
                  remit to the Company the aggregate exercise price of such
                  Options (a "cashless exercise"), or (iii) in the discretion of
                  the Plan Administrator, upon such terms as the Plan
                  Administrator shall approve, the Optionee may pay all or a
                  portion of the purchase price for the number of shares being
                  purchased by tendering shares of the Company's Common Stock
                  owned by the Optionee, duly endorsed for transfer to the
                  Company, with a Fair Market Value on the date of delivery
                  equal to the aggregate purchase price of the shares with
                  respect to which such Stock Option or portion is thereby
                  exercised (a "stock for stock exercise");

         (c)      payment of the amount of tax required to be withheld (if any)
                  by the Company or any parent or subsidiary corporation as a
                  result of the exercise of a Stock Option. At the discretion of
                  the Plan Administrator, upon such terms as the Plan
                  Administrator shall approve, the Optionee may pay all or a
                  portion of the tax withholding by (i) cash or cheque payable
                  to the Company, (ii) cashless exercise, (iii) stock-for-stock
                  exercise, or (iv) a combination of one or more of the
                  foregoing payment methods; and

                                                                               5
<PAGE>   11

         (d)      delivery of a written notice to the Company requesting that
                  the Company direct the transfer agent to issue to the Optionee
                  (or to his or her designee) a certificate for the number of
                  shares of Common Stock for which the Option was exercised or,
                  in the case of a cashless exercise, for any shares that were
                  not sold in the cashless exercise.

         Notwithstanding the foregoing, the Company may, in its sole and
         absolute discretion, extend and maintain, or arrange for the extension
         and maintenance of, credit to any Optionee to finance the Optionee's
         purchase of shares pursuant to exercise of any Stock Option, on such
         terms as may be approved by the Plan Administrator, subject to
         applicable regulations of the Federal Reserve Board and any other laws
         or regulations in effect at the time such credit is extended.

7.4      TERM OF OPTION. No Option shall be exercisable after the expiration of
         the earliest of (a) ten years after the date the option is granted, (b)
         three months after the date the Optionee's employment with the Company
         and its subsidiaries terminates if such termination is for any reason
         other than disability or death, (c) one year after the date the
         Optionee's employment with the Company and its subsidiaries terminates
         if such termination is a result of death or disability; provided,
         however, that the Option agreement for any Option may provide for
         shorter periods in each of the foregoing instances. Notwithstanding the
         foregoing, in the case of any Incentive Stock Option granted under the
         Plan to an employee who owns stock possessing more than 10% of the
         total combined voting power of all classes of stock of the Company, its
         parent or any of its subsidiary corporations, the term of such Option
         shall not be more than five years from the date the Option is granted.

7.5      EXERCISE OF OPTIONS. No Option shall be exercisable during the lifetime
         of an Optionee by any person other than the Optionee. Subject to the
         foregoing, the Plan Administrator shall have the power to set the time
         or times within which each Option shall be exercisable and to
         accelerate the time or times of exercise. Unless otherwise provided by
         the Plan Administrator, each Option granted under the Plan shall become
         excisable on a cumulative basis as to one-third (1/3) of the total
         number of shares covered thereby at any time after one year from the
         date the Option is granted and an additional one third (1/3) of such
         total number of shares at any time after the end of each consecutive
         one-year period thereafter until the Option has become exercisable as
         to all of such total number of shares. Notwithstanding the foregoing,
         any Options granted under the Plan shall become exercisable at a
         minimum rate of twenty percent (20%) per year. To the extent that an
         Optionee has the right to exercise an Option and purchase shares
         pursuant thereto, the Option may be exercised from time to time by
         written notice to the Company, stating the number of shares

                                       6
<PAGE>   12

         being purchased and accompanied by payment in full of the exercise
         price for such shares.

7.6      NO TRANSFER OF OPTION. No Option shall be transferable by an Optionee
         other than by will or the laws of decent and distribution.

7.7      LIMIT ON INCENTIVE STOCK OPTIONS. The aggregate Fair Market Value
         (determined at the time the Option is granted) of the Common Stock with
         respect to which any Incentive Stock Options granted to an Optionee are
         exercisable for the first time by an Optionee during any calendar year
         (under all stock option plans of the Company and its subsidiaries)
         shall not exceed $100,000. To the extent that the aggregate Fair Market
         Value (determined at the time the Stock Option is granted) of the
         Common Stock with respect to which Incentive Stock Options are
         exercisable for the first time by an Optionee during any calendar year
         (under all Incentive Stock Option plans of the Company and any parent
         or subsidiary corporations) exceeds $100,000, such Stock Options shall
         be treated as Non-Qualified Stock Options. The determination of which
         Stock Option shall be treated as Non-Qualified Stock Options shall be
         made by taking Stock Options into account in the order in which they
         were granted.

7.8      RESTRICTION ON ISSUANCE OF SHARES. The issuance of Options and shares
         shall be subject to compliance with all of the applicable requirements
         of law with respect to the issuance and sale of securities, including,
         without limitation, any required qualification under the securities
         laws of the United States, Canada, any state of the United States or
         any province of Canada. If an Optionee acquires shares of Common Stock
         pursuant to the exercise of an Option at a time when the shares are not
         registered pursuant to Section 12 of the Securities Exchange Act of
         1934, as amended, the Plan Administrator, in its sole discretion, may
         require as a condition of issuance of shares covered by the Option that
         the shares of Common Stock shall be subject to restrictions on
         transfer. The Company may place a legend on the certificates evidencing
         the shares, reflecting the fact that they are subject to restrictions
         on transfer pursuant to the terms of this Section.

7.9      INVESTMENT REPRESENTATION. Each Option shall contain and any Optionee
         may be required, as a condition of the grant of the Option and the
         issuance of shares covered by his or her Option, to represent that the
         Option and the shares to be acquired pursuant to exercise of the Option
         will be acquired for investment purposes only without a view to
         distribution thereof; and in such case, the Company may place a legend
         on the certificate evidencing the shares reflecting the fact that they
         were acquired for investment and cannot be sold or transferred unless
         registered under the Securities Act of 1933, as amended, or unless
         counsel for the Company is satisfied that the circumstances of the
         proposed transfer do not require such registration.

                                                                               7
<PAGE>   13

7.10     RIGHTS AS A SHAREHOLDER OR EMPLOYEE. An Optionee or transferee of an
         Option shall have no right as a shareholder of the Company with respect
         to any shares covered by any Option until the date of the issuance of a
         share certificate for such shares. No adjustment shall be made for
         dividends (ordinary or extraordinary, whether cash, securities, or
         other property) or distributions or other rights for which the record
         date is prior to the date such share certificate is issued, except as
         provided in Section 7.13. Nothing in the Plan or in any Option
         agreement shall confer upon any employee any right to continue in the
         employ of the Company or any of its subsidiaries or interfere in any
         way with any right of the Company or any subsidiary to terminate the
         Optionee's employment at any time.

7.11     NO FRACTIONAL SHARES. In no event shall the Company be required to
         issue fractional shares upon the exercise of an Option.

7.12     EXERCISABILITY IN THE EVENT OF DEATH. In the event of the death of the
         Optionee, any Option or unexercised portion thereof granted to the
         Optionee, to the extent exercisable by him or her on the date of death,
         may be exercised by the Optionee's personal representatives, heirs, or
         legatees subject to the provisions of Section 7.4 hereof.

7.13     RECAPITALIZATION OR REORGANIZATION OF COMPANY. Except as otherwise
         provided herein, appropriate and proportionate adjustments shall be
         made in the number and class of shares subject to the Plan, to the
         Option rights granted under the Plan, including any formula grants or
         automatic grant authorizations, and the exercise price of such Option
         rights, in the event that the number of shares of Common Stock of the
         Company are increased or decreased as a result of a stock dividend (but
         only on Common Stock), stock split, reverse stock split,
         recapitalization, reorganization, merger, consolidation, separation, or
         like change in the corporate or capital structure of the Company. In
         the event there shall be any other change in the number or kind of the
         outstanding shares of Common Stock of the Company, or any stock or
         other securities into which such Common Stock shall have been changed,
         or for which it shall have been exchanged, whether by reason of a
         complete liquidation of the Company or a merger, reorganization, or
         consolidation of the Company with any other corporation in which the
         Company is not the surviving corporation or the Company becomes
         wholly-owned subsidiary of another corporation, then if the Plan
         Administrator shall, it its sole discretion, determine that such change
         equitably requires an adjustment to shares of the Common Stock
         currently subject to Options under the Plan, or to prices or terms of
         outstanding Options, such adjustment shall be made in accordance with
         such determination.

                                                                               8
<PAGE>   14

         To the extent that the foregoing adjustments relate to stock or
         securities of the Company, such adjustments shall be made by the Plan
         Administrator, the determination of which in that respect shall be
         final, binding and conclusive. No right to purchase fractional shares
         shall result from any adjustment of Options pursuant to this Section.
         In case of any such adjustment, the shares subject to the option shall
         be rounded down to the nearest whole share. Notice of any adjustment
         shall be given by the Company to each Optionee whose Options shall have
         been so adjusted and such adjustment (whether or not notice is given)
         shall be effective and binding for all purposes of the Plan.

         In the event of a complete liquidation of the Company or a merger,
         reorganization, or consolidation of the Company with any other
         corporation in which the Company is not the surviving corporation or
         the Company becomes a wholly-owned subsidiary of another corporation,
         any unexercised Options theretofore granted under the Plan shall be
         deemed cancelled unless the surviving corporation in any such merger,
         reorganization, or consolidation elects to assume the Options under the
         Plan or to issue substitute Options in place thereof; provided,
         however, that, notwithstanding the foregoing, if such Options would be
         cancelled in accordance with the foregoing, the Optionee shall have the
         right, exercisable during a ten-day period ending on the fifth day
         prior to such liquidation, merger, or consolidation, to exercise such
         Option in whole or in part without regard to any installment exercise
         provisions in the Option Agreement.

7.14     MODIFICATION, EXTENSION, AND RENEWAL OF OPTIONS. Subject to the terms
         and conditions and within the limitations of the Plan, the Plan
         Administrator may modify, extend, or renew outstanding Options granted
         under the Plan, and accept the surrender of outstanding Options (to the
         extent not theretofore exercised). The Plan Administrator shall not,
         however, modify any outstanding Incentive Stock Option in any manner
         which would cause the Option not to qualify as an Incentive Stock
         Option within the meaning of Section 422 of the Code. Notwithstanding
         the foregoing, no modification of an Option shall, without the consent
         of the Optionee, alter or impair any rights of the Optionee under the
         Option. However, a termination of the Option in which the Optionee
         receives a cash payment equal to the difference between the Fair Market
         Value and the exercise price for all shares subject to exercise under
         any outstanding Option shall not alter or impair any rights of the
         Optionee.

7.15     OTHER PROVISIONS. Each Option may contain such other terms, provisions,
         and conditions not inconsistent with the Plan as may be determined by
         the Plan Administrator.

                                                                               9
<PAGE>   15

8.       TERMINATION OR AMENDMENT OF THE PLAN. The Board may at any time
         terminate or amend the Plan; provided that, without approval of the
         holders of a majority of the shares of Common Stock of the Company
         represented and voting at a duly held meeting at which a quorum is
         present (which shares voting affirmatively also constitute a majority
         of the required quorum) or by the written consent of a majority of the
         outstanding shares of Common Stock, there shall be, except by operation
         of the provisions of Section 7.13, no increase in the total number of
         shares covered by the Plan, no change in the class of persons eligible
         to receive Options granted under the Plan, and no extension of the term
         of the Plan beyond ten (10) years after the earlier of the date the
         Plan is adopted or the date the Plan is approved by the Company's
         shareholders; and provided further that, without the consent of the
         Optionee or as provided by Section 7.14 hereof, no amendment may
         adversely affect any then outstanding Option or any unexercised portion
         thereof.

9.       INDEMNIFICATION. To the extent permitted by law, the Certificate of
         Incorporation of the Company, the Bylaws of the Company and any
         indemnity agreements between the Company and its directors or
         employees, between the Company and its directors or employees, the
         Company shall indemnify each member of the Board and of the Plan
         Administrator, and any other employee of the Company with duties under
         the Plan, against expenses (including any amount paid in settlement)
         reasonably incurred by him in connection with any claims against him by
         reason of his conduct in the performance of his duties under the Plan.

10.      EFFECTIVE DATE AND TERM OF PLAN. This Plan shall become effective (the
         "Effective Date") on June 29, 1998. No options granted under the Plan
         will be effective unless the Plan is approved by shareholders of the
         Company within 12 months of the date of adoption. Unless sooner
         terminated by the Board in its sole discretion, the Plan will expire on
         June 28, 2008.

         Amended as of November 17, 1999.

                                         FUTURELINK CORP.

                                         By: /s/ Raghu Kilambi
                                             -----------------------------
                                             Raghu Kilambi
                                             Chief Financial Officer

                                         By: /s/ Kyle B.A. Scott
                                             -----------------------------
                                             Kyle B.A. Scott
                                             General Counsel & Secretary

                                                                              10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00001-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00001-of-00352.parquet"}]]