Document:

<PAGE>   1
                                                                    EXHIBIT 10.2

                             1997 STOCK OPTION PLAN
                                       OF
                       SOFTWARE TECHNOLOGIES CORPORATION

     1.   PURPOSE.

          This 1997 Stock Option Plan (the "Plan") is intended to allow
directors, consultants and employees of Software Technologies Corporation
("STC" or the "Company" herein) and Subsidiaries which it may have from time to
time (together the "Company") to be granted certain options to purchase shares
of STC common stock ("Stock Options") which shall be (a) incentive stock
options within the meaning of Section 422 of the Internal Revenue Code of 1986,
as amended (the "Code") ("Incentive Stock Options") or (b) Nonstatutory Stock
Options (sometimes referred to as restricted or non-qualified stock options).
The purpose of the Plan is to provide its directors, consultants and employees
with additional incentives to make valuable contributions to the long term
performance and growth of the company and to attract and retain directors,
consultants and employees of ability. Awards to employees from time to time may
be concentrated among officers and key management employees. Individuals
receiving awards under the Plan are herein referred to as "Participants".
"Subsidiary" herein means a corporation which is a subsidiary as defined in IRC
section 424(f); namely, any corporation in an unbroken chain of corporations
beginning with STC, if at the time of the award each of the corporations other
than the last in the chain 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.

     2.   ADMINISTRATION.

          2.1  The Plan shall be administered by the Board of Directors of STC
(the "Board"), or by a committee consisting of two or more members of the Board
(the Board, or, if applicable, the Committee administering the Plan shall
hereinafter be referred to as the "Committee"). If and when the Company becomes
subject to Section 16 of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), all Committee members must qualify as non-employee directors,
as that term is defined in Rule 16b-32 promulgated by the Securities and
Exchange Commission (the "Commission") pursuant to the Exchange Act.
Notwithstanding the foregoing, no action of the Committee shall be invalid if
the non-employee director requirement in the preceding sentence is not met. The
Committee shall select one of its members as Chairman and shall act by vote of a
majority of a quorum, or by unanimous written consent. A majority of its members
shall constitute a quorum. The Committee shall be governed by the provisions of
STC's Bylaws and of California law applicable to the Board, except as otherwise
provided herein or determined by the Board.

          2.2  Subject to complying with applicable federal and state
securities laws, rules and regulations including applicable exemptions, and
subject to qualifying Incentive Stock Options for favorable tax treatment under
Section 422 of the Code, the Committee

<PAGE>   2
     shall have full and complete authority, in its discretion, but subject to
     the express provisions of the Plan set out herein below: to approve the
     Optionees nominated by the management of the Company to be granted Stock
     Options; to determine the number of Stock Options to be granted to an
     Optionee; to determine the time or times at which Stock Options shall be
     granted; to establish the terms and conditions upon which Stock Options may
     be exercised and upon which the underlying shares may be issued; to
     establish the terms and conditions upon which Stock Options may vest; to
     remove or adjust any restrictions and conditions upon Stock Options; to
     specify, at the time of grant, provisions relating to exercisability of
     Stock Options and to accelerate or otherwise modify the exercisability of
     any Stock Options; and to adopt such rules and regulations and to make all
     other determinations deemed necessary or desirable for the administration
     of the Plan. All interpretations and constructions of the Plan by the
     Committee, and all of its actions hereunder, shall be binding and
     conclusive on all persons for all purposes.

          2.3  The Company hereby agrees to indemnify and hold harmless each
     Board member, each Committee member and each employee of the Company, and
     the estate and heirs of such persons against all claims, liabilities,
     expenses, penalties, damages or other pecuniary losses, including legal
     fees incurred or suffered by such persons as a result of his or her
     responsibilities, obligations or duties in connection with the Plan, to the
     extent that insurance, if any, does not cover the payment of such items.

     3.   ELIGIBILITY AND PARTICIPATION.

          Any employee (including any officer) of the Company shall be eligible
     to receive grants of Stock Options which qualify as Incentive Stock Options
     under the Plan.

          Incentive Stock Options and Nonstatutory Stock Options shall be
     granted only to those Board members, consultants, employees and officers
     who qualify for an exemption under applicable federal and state (including
     California) securities laws, rules and regulations.

     4.   GRANTS AND CERTAIN LIMITATIONS.

          4.1  While normally the Committee will grant Incentive Stock Options
     to employees, it shall have the discretion to grant Stock Options which are
     Nonstatutory Stock options to any eligible individual. Stock Options shall
     be appropriately designated by the Committee at the time of grant.

               The aggregate fair market value (determined as of the time an
     Incentive Stock Option is granted) of the Common Stock with respect to
     which Incentive Stock Options are exercisable for the first time by any
     Employee during any one calendar year (under all plans of the Company and
     any parent or subsidiary of the Company) may not

                                  Page 2 of 10

<PAGE>   3
exceed the maximum amount permitted under Section 422 of the Code (currently
$100,000.00). Nonstatutory Stock options shall not be subject to the
limitations relating to incentive stock options contained in the preceding
sentence.

          4.2  Subject to the provisions of paragraph 11 hereof, the number of
shares of Common Stock issued and issuable pursuant to the exercise of Stock
Options granted in any year hereunder shall not exceed 30% of the then
outstanding shares of common stock of STC (after giving effect to the
conversion of any outstanding convertible preferred or convertible senior
common shares) or such lesser percent as may be determined by the Board but in
no event shall exceed 1,700,000 shares. Each Stock Option shall be evidenced by
a written agreement (the "Option Agreement") in a form approved by the
Committee, which shall be executed on behalf of the Company and by the Optionee
to whom the Stock Option is granted.

          4.3  If a Stock Option expires, terminates or is cancelled for any
reason without having been exercised in full, the shares of Common Stock not
purchased thereunder shall again be available for purposes of the Plan.

     5.   EXERCISE OF OPTION PURCHASE PRICE.

          The purchase price (the "Exercise Price") of shares of Common Stock
subject to each Stock Option ("Option Shares") shall be equal to (a) 100% of
the fair market value ("Fair Market Value") of such shares as determined by the
Committee as of the date of grant of any Incentive Stock Option and (b) at
least 85% of the Fair Market Value of such shares as determined by the Committee
as of the date of grant of any Nonstatutory Stock Option. Notwithstanding the
foregoing, the Exercise Price of Option Shares subject to an Incentive Stock
Option granted to an Optionee who at the time of grant owns stock possessing
more than 10% of the total combined voting power of all classes of stock of the
Company or of any parent or Subsidiary shall be at least equal to 110% of the
Fair Market Value of such shares on the date of grant of such Stock Option.

     6.   TERM OF OPTION.

          The Stock Option period (the "Term") shall be ten years commencing on
the date of grant of the Stock Option or such shorter period as is determined
by the Committee at the time of the grant. Such provisions need not be uniform.
Notwithstanding the foregoing, the Term of an Incentive Stock Option granted to
an Optionee who at the time of grant owns stock possessing more than 10% of the
total combined voting power of all classes of stock of the Company or of any
parent or subsidiary shall not exceed five years. Each Stock Option shall
provide that it will vest and be exercisable in such installments as the
Committee in its sole discretion may determine; provided that Incentive Stock
Options granted hereunder shall vest and be exercisable at the rate of at least
20% per year measured from the date of grant. If an Optionee shall not in any
period purchase all of the Option Shares which such Optionee is entitled to
purchase in such period, such Optionee may

                                  Page 3 of 10

<PAGE>   4
purchase all or any part of such Option Shares at any time prior to the
expiration of the Stock Option.

     7.   EXERCISE OF OPTIONS.

          7.1  Each Stock Option may be exercised in whole or in part (but not
as to fractional shares) by delivering it for surrender or endorsement to the
Company, attention of the Chief Financial Officer, at the principal office of
the Company, together with payment of the Exercise Price and an executed Notice
and Agreement of Exercise in the form prescribed by paragraph 7.2. Payment may
be made in cash, by cashier's or certified check, or by surrender of
outstanding shares of the Company's Common Stock valued pursuant to paragraph 5
(if the Committee authorizes payment in stock).

          7.2  Exercise of each Stock Option is conditioned upon the agreement
of the Optionee to the terms and conditions of this Plan, the Option Agreement
and by the execution and delivery of a Notice and Agreement of Exercise in a
form to be determined by the Committee in its discretion. Such Notice and
Agreement of Exercise shall set forth the agreement of the Optionee that: (a)
no Option Shares will be sold or otherwise distributed in violation of the
Securities Act of 1933 (the "Securities Act") or any other applicable federal
or state securities laws, (b) each Option Share certificate may be imprinted
with legends reflecting any applicable federal and state securities law
restrictions and conditions, (c) the Company may comply with said securities
law restrictions and issue "stop transfer" instructions to its Transfer Agent
and Registrar without liability and (e) the Optionee will notify the Company in
writing, to the attention of the Chief Financial Officer, at least ten days in
advance of any proposed transfer or sale of any option shares, (f) if the
Participant is subject to reporting requirements under Section 16(a) of the
Securities Exchange Act of 1934, the Participant will furnish to the Company a
copy of each Form 4 or Form 5 filed by him and will timely file all reports
required under federal securities laws.

          7.3  No Stock Option shall be exercisable unless and until any
applicable registration or qualification requirements of federal and state
securities laws, and all other legal requirements, have been fully complied
with, or an exemption therefrom in the opinion of counsel to the Company is
available for the issuance of Stock Options and Option Shares. At such time as
the Company is eligible to file a Registration Statement on Form S-8 covering
the issuance of Stock Options and Options Shares, the Company will use
reasonable efforts to maintain the effectiveness of such Registration Statement
under the Securities Act, but there may be times when no such Registration
Statement will be currently effective. The exercise of Stock Options may be
temporarily suspended without liability to the Company during times when no such
Registration Statement is currently effective, or during times when, in the
reasonable opinion of the Committee, such suspension is necessary to preclude
violation of any requirements of applicable law or regulatory bodies having
jurisdiction over the Company. If any Stock Option would expire for any reason
except the end of its term during such a suspension, then if exercise of such
Stock Option is duly tendered before its expiration, such Stock Option shall be
exercisable and exercised (unless the attempted exercise

                                  Page 4 of 10

<PAGE>   5
is withdrawn) as of the first day after the end of such suspension. The Company
shall have no obligation to file any Registration Statement covering resales of
Option Shares.

      8.    EMPLOYMENT REQUIREMENTS.

            Unless otherwise provided by the Committee, except as provided in
paragraph 10 below, a Stock Option granted to an Employee may not be exercised
unless at all times during the period from the date of grant and ending on the
day 3 months before the date of exercise such Employee was an employee of the
Company. For purposes of this Paragraph 8, the period of continuous employment
of an Employee with the Company shall be deemed to include (without extending
the term of the Stock Option) any period during which such Employee is on leave
of absence with the consent of the Company, provided that such leave of absence
shall not exceed three (3) months and that such Employee returns to the employ
of the Company at the expiration of such leave of absence. If such Employee
fails to return to the employ of the Company at the expiration of such leave of
absence, such Employee's employment with the Company shall be deemed terminated
as of the date such leave of absence commenced.

            The continuous employment of an Employee with the Company shall also
be deemed to include any period during which such Employee is a member of the
Armed Forces of the United States, provided that such Employee returns to the
employ of the Company within ninety (90) days (or such longer period as may be
prescribed by law) from the date such Employee first becomes entitled to
discharge. If an Employee does not return to the employ of the Company within
ninety (90) days (or such longer period as may be prescribed by law) from the
date such Employee first becomes entitled to discharge from the Armed Forces,
such Employee's employment with the Company shall be deemed to have terminated
as of the date such Employee's military service ended.

      9.    RESTRICTIONS ON TRANSFER.

            Each Stock Option granted under this Plan, except as expressly
provided by the Committee with respect to Nonstatutory Stock Options, under
this Plan shall be transferable only by will or the laws of descent and
distribution. No interest of any Optionee under the Plan shall be subject to
attachment, execution, garnishment, sequestration, the laws of bankruptcy or
any other legal or equitable process. Each Stock Option granted under this Plan
shall be exercisable during an Optionee's lifetime only by such Optionee or by
such Optionee's legal representative.

      10.   TERMINATION OF EMPLOYMENT.

            10.1  Unless otherwise provided by the Committee with respect to
Nonstatutory Stock Options, upon the termination of the employment of an
Employee with the Company for any reason other than for Disability as described
in paragraph 10.2 below, (a) all Stock Options to the extent then presently
exercisable by such Employee shall remain

                                  Page 5 of 10
<PAGE>   6

exercisable only for a period ending within three months after the date of such
termination of employment (except that the three months period shall be extended
to six (6) months if the Employee shall die during such three months period),
and (b) all Stock Options of such Employee not then vested shall terminate as
of the date of such termination of employment and shall not be exercisable
thereafter.

          10.2 In the case of an Employee terminated because of disability as
defined in Section 22(e) of the code the three month period described in
Section 10.1 above shall be one year.

          10.3 "Disability" under Section 22(e) of the Code means the total and
permanent incapacity of an Employee, due to physical impairment or legally
established mental incompetence, to perform the duties of such Employee's
employment with the Company. In reaching such determination, the Committee may
rely on medical evidence by a licensed physician designated by the Committee.

     11.  ADJUSTMENT UPON CHANGE IN CAPITALIZATION.

          11.1 The number and class of shares subject to each outstanding Stock
Option, the Exercise Price thereof (but not the total price), the maximum
number of Stock Options that may be granted under the Plan, and the minimum
number of shares as to which a Stock Option may be exercised at any one time,
shall be proportionately adjusted in the event of any increase or decrease in
the number of the issued shares of Common Stock which results from a split-up
or consolidation of shares, payment of a stock dividend or dividends, a
recapitalization (other than the conversion of convertible securities according
to their terms), a combination of shares or other like capital adjustment, so
that upon exercise of the Stock Option, the Optionee shall receive the number
and class of such shares such Optionee would have received had such Optionee
been the holder of the number of shares of Common Stock for which the Stock
Option is being exercised upon the date of such change or increase or decrease
in the number of issued shares of the Company.

          11.2 Upon a reorganization, merger or consolidation of the Company
with one or more corporations as a result of which STC is not the surviving
corporation, or in which STC survives as a wholly-owned subsidiary of another
corporation, or upon a sale of all or substantially all of the property of the
Company to another corporation, or any dividend or distribution to shareholders
of the Company's assets in kind (other than a regular cash dividend, if any),
adequate adjustment or other provisions shall be made by the Company or other
party to such transaction so that there shall remain and/or be substituted for
the Option Shares provided for herein, the shares, securities or assets which
would have been issuable or payable in respect of or in exchange for such Option
Shares then remaining, as if the Optionee had been the owner of such shares as
of the applicable date. Any securities so substituted shall be subject to
similar successive adjustments.

                                  Page 6 of 10
<PAGE>   7

          11.3 In the sole discretion of the Committee, Stock Options may
include provisions, on terms (which need not be uniform) authorized by the
Committee in its sole discretion, that accelerate the Optionees' rights to
exercise Stock Options upon a sale of substantially all of the Company's
assets, its dissolution or upon a change in the controlling shareholder
interest in STC resulting from a tender offer, reorganization, merger or
consolidation or from any other transaction or occurrence, whether or not
similar to the foregoing (each, a "Change in Control").

     12.  WITHHOLDING TAXES.

          The Company shall have the right at the time of exercise of any Stock
Option which is then not an Incentive Stock Option to make adequate provision
for any federal, state, local or foreign taxes which it believes are or may be
required by law to be withheld with respect to such exercise ("Tax Liability"),
to ensure the payment of such Tax Liability. The Company may provide for the
payment of any Tax Liability by any of the following means or a combination of
such means, as determined by the Committee in its sole and absolute discretion
in the particular case: (i) by requiring the Optionee to tender a cash payment
to the Company, (ii) by withholding from the Optionee's salary, (iii) by
withholding from the Option Shares which would otherwise be issuable upon
exercise of the Stock Option that number of Option Shares having an aggregate
fair market value (determined in the manner prescribed by paragraph 5) as of
the date the withholding tax obligation arises in an amount which is equal to
the Optionee's Tax Liability or (iv) by any other method deemed appropriate by
the Committee.

     13.  RELATIONSHIP TO OTHER EMPLOYEE BENEFIT PLANS.

          Stock Options granted hereunder shall not be deemed to be salary or
other compensation to any Optionee for purposes of any pension, thrift,
profit-sharing, stock purchase or any other employee benefit plan now
maintained or hereafter adopted by the Company.

     14.  AMENDMENTS AND TERMINATION.

          The Board of Directors may at any time suspend, amend or terminate
this Plan. No amendment or modification of this Plan may be adopted, except
subject to shareholder approval, which would: (a) materially increase the
benefits accruing to Optionees under this Plan, (b) materially increase the
number of securities which may be issued under this Plan (except for adjustments
pursuant to paragraph 11 hereof), or (c) materially modify the requirements as
to eligibility for participation in the Plan.

                                  Page 7 of 10
<PAGE>   8

     15.  SUCCESSORS IN INTEREST.

     The provisions of this Plan and the actions of the Committee shall be
binding upon all heirs, successors and assigns of the Company and of each
Optionee.

     16.  OTHER DOCUMENTS.

          All documents prepared, executed or delivered in connection with this
Plan shall be, in substance and form, as established and modified by the
committee or by persons under its direction and supervision; provided, however,
that all such documents shall be subject in every respect to the provisions of
this Plan, and in the event of any conflict between the terms of any such
document and this Plan, the provisions of this Plan shall prevail. All Stock
Options granted under the Plan shall be evidenced by written agreements
executed by the Company and the Optionees to whom the Stock Options have been
granted. Each agreement shall specify whether a Stock Option is an incentive
stock option or a nonstatutory stock option.

     17.  NO OBLIGATION TO CONTINUE EMPLOYMENT.

          This Plan and grants hereunder shall not impose any obligation on the
Company to continue to employ any Optionee. Moreover, no provision of this Plan
or any document executed or delivered pursuant hereto shall be deemed modified
in any way by any employment contract between an Optionee (or other employee)
and the Company.

     18.  MISCONDUCT OF AN OPTIONEE.

          Notwithstanding any other provision of this Plan, if an Optionee
commits fraud or dishonesty toward the Company or wrongfully uses or discloses
any trade secret, confidential data or other information proprietary to the
Company, or intentionally takes any other action materially inimical to the
best interests of the Company, as determined by the Committee, in its sole and
absolute discretion, such Optionee shall forfeit all rights and benefits under
this Plan.

     19.  TERM OF PLAN.

          This Plan was adopted by the Board effective ___________, 1997. No
Stock Option may be granted under this Plan beyond ten years from that date,
and no Stock Option may be exercised later than ten years after its date of
grant.

     20.  GOVERNING LAW.

          This Plan shall be construed in accordance with, and governed by, the
laws of the State of California.

                                  Page 8 of 10

<PAGE>   9
      21.   SHAREHOLDER APPROVAL.

            No Stock Option shall be exercisable unless and until the
shareholders of the Company have approved this Plan and all other legal
requirements have been fully complied with. The Company shall submit the Plan
to its shareholders for approval, within twelve (12) months of Board adoption
of the Plan, by holders of a majority of its common shares given by their
written consent or by vote at a shareholders meeting duly noticed and held.
While no stock option may be exercised until such shareholder consent has been
given, the date of the grant and the fair market value of the underlying shares
shall be as of the date the option is awarded by the Committee.

      22.   PRIVILEGES OF STOCK OWNERSHIP.

            The holder of a Stock Option shall not be entitled to the
privileges of stock ownership as to any shares of the Company Common Stock not
actually issued to such holder.

      23.   ANNUAL FINANCIAL STATEMENTS.

            STC will deliver to each holder of a Stock Option granted hereunder
a copy of its annual financial statement each year when completed.

      24.   COMPLIANCE WITH TAX AND SECURITIES LAWS.

            STC adopts this plan so that Incentive Stock Options granted under
it will comply with Section 422 of the Code. Incentive Stock Options and
Nonstatutory Stock Options shall be granted and shares shall be issued upon
exercise thereof only when under the circumstances the grant and issuance are
exempt from or qualify under applicable federal

                                  Page 9 of 10
<PAGE>   10
and state securities laws, rules and regulations. Consequently, the Committee
shall administer, and interpret the Plan in order to comply with all such
applicable federal and state exemptions.

                                 Page 10 of 10<PAGE>   1

                                                                   EXHIBIT 10.3

                        SOFTWARE TECHNOLOGIES CORPORATION

                                 1998 STOCK PLAN
                            (AS AMENDED AND RESTATED)

        1. Purposes of the Plan. The purposes of this 2000 Stock Plan are:

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

             -    to provide additional incentive to Employees, Directors and
                  Consultants, and

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

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

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

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

           (b) "Applicable Laws" means the 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 or Stock Purchase Rights 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 Software Technologies 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.

<PAGE>   2
           (j) "Disability" means total and permanent disability as defined in
Section 22(e)(3) of the Code.

           (k) "Employee" means any person, including Officers and Directors,
employed by the Company or any Parent or Subsidiary of the Company. A Service
Provider 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.
For purposes of Incentive Stock Options, no such leave may exceed ninety days,
unless reemployment upon expiration of such leave is guaranteed by statute or
contract. If reemployment upon expiration of a leave of absence approved by the
Company is not so guaranteed, on the 181st day of such leave any Incentive Stock
Option held by the Optionee shall cease to be treated as an Incentive Stock
Option and shall be treated for tax purposes as a Nonstatutory Stock Option.
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; or

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

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

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

                                      -2-
<PAGE>   3

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

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

           (s) "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.

           (t) "Option Exchange Program" means a program whereby outstanding
Options are surrendered in exchange for Options with a lower exercise price.

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

           (v) "Optionee" means the holder of an outstanding Option or Stock
Purchase Right granted under the Plan.

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

           (x) "Plan" means this 1998 Stock Plan.

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

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

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

           (bb) "Section 16(b) " means Section 16(b) of the Exchange Act.

           (cc) "Service Provider" means an Employee, Director or Consultant.

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

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

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

                                      -3-
<PAGE>   4

        3. Stock Subject to the Plan. Subject to the provisions of Section 13 of
the Plan, the maximum aggregate number of Shares that may be optioned and sold
under the Plan is 13,725,903 Shares. The Shares may be authorized, but
unissued, or reacquired Common Stock.

          The number of Shares reserved for issuance under the Plan shall
increase annually on the first day of the Company's fiscal year beginning in
2001 by an amount of Shares equal to the lesser of (i) 6,000,000 Shares (ii) 5%
of the outstanding Shares on such date or (iii) an amount determined by the
Board. The Shares may be authorized but unissued, or reacquired Common Stock.

           If an Option or Stock Purchase Right expires or becomes unexercisable
without having been exercised in full, or is surrendered pursuant to an Option
Exchange Program, the unpurchased Shares which were subject thereto shall become
available for future grant or sale under the Plan (unless the Plan has
terminated); provided, however, that Shares that have actually been issued under
the Plan, whether upon exercise of an Option or Right, shall not be returned to
the Plan and shall not become available for future distribution under the Plan,
except that if Shares of Restricted Stock are repurchased by the Company at
their original purchase price, such Shares shall become available for future
grant under the Plan.

        4. Administration of the Plan.

           (a) Procedure.

               (i) Multiple Administrative Bodies. Different Committees with
respect to different groups of Service Providers may administer the Plan.

               (ii) Section 162(m). To the extent that the Administrator
determines it to be desirable to qualify Options granted hereunder as
"performance-based compensation" within the meaning of Section 162(m) of the
Code, the Plan shall be administered by a Committee of two or more "outside
directors" within the meaning of Section 162(m) of the Code.

               (iii) Rule 16b-3. To the extent desirable to qualify transactions
hereunder as exempt under Rule 16b-3, the transactions contemplated hereunder
shall be structured to satisfy the requirements for exemption under Rule 16b-3.

               (iv) Other Administration. Other than as provided above, the Plan
shall be administered by (A) the Board or (B) 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;

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

                                      -4-
<PAGE>   5

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

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

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

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

               (vii) to institute an Option Exchange Program;

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

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

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

               (xi) 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 or Stock Purchase Right 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;

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

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

                                      -5-
<PAGE>   6

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

        5. Eligibility. Nonstatutory Stock Options and Stock Purchase Rights may
be granted to Service Providers. Incentive Stock Options may be granted only to
Employees.

        6. Limitations.

           (a) Each Option shall be designated in the Option Agreement as either
an Incentive Stock Option or a Nonstatutory Stock Option. However,
notwithstanding such designation, to the extent that the aggregate Fair Market
Value of the Shares with respect to which Incentive Stock Options are
exercisable for the first time by the Optionee during any calendar year (under
all plans of the Company and any Parent or Subsidiary) exceeds $100,000, such
Options shall be treated as Nonstatutory Stock Options. For purposes of this
Section 6(a), Incentive Stock Options shall be taken into account in the order
in which they were granted. The Fair Market Value of the Shares shall be
determined as of the time the Option with respect to such Shares is granted.

           (b) Neither the Plan nor any Option or Stock Purchase Right shall
confer upon an Optionee any right with respect to continuing the Optionee's
relationship as a Service Provider 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.

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

               (i) No Service Provider shall be granted, in any fiscal year of
the Company, Options to purchase more than [________] Shares.

               (ii) In connection with his or her initial service, a Service
Provider may be granted Options to purchase up to an additional [________]
Shares, which shall not count against the limit set forth in subsection (i)
above.

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

               (iv) If an Option is cancelled in the same fiscal year of the
Company in which it was granted (other than in connection with a transaction
described in Section 13), the cancelled Option will be counted against the
limits set forth in subsections (i) and (ii) above. For this purpose, if the
exercise price of an Option is reduced, the transaction will be treated as a
cancellation of the Option and the grant of a new Option.

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

        8. Term of Option. The term of each Option shall be stated in the Option
Agreement. In the case of an Incentive Stock Option, the term shall be ten (10)
years from the date of grant or such shorter term as may be provided in the
Option Agreement. Moreover, in the case of an

                                      -6-
<PAGE>   7

Incentive Stock Option granted to an Optionee who, at the time the Incentive
Stock Option is granted, owns stock representing more than ten percent (10%) of
the total combined voting power of all classes of stock of the Company or any
Parent or Subsidiary, the term of the Incentive Stock Option shall be five (5)
years from the date of grant or such shorter term as may be provided 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, subject to the following:

               (i) In the case of an Incentive Stock Option

                   (A) granted to an Employee who, at the time the Incentive
Stock Option is granted, owns stock representing more than ten percent (10%) of
the voting power of all classes of stock of the Company or any Parent or
Subsidiary, the per Share exercise price shall be no less than 110% of the Fair
Market Value per Share on the date of grant.

                   (B) granted to any Employee other than an Employee described
in paragraph (A) immediately above, the per Share exercise price shall be no
less than 100% of the Fair Market Value per Share on the date of grant.

               (ii) In the case of a Nonstatutory Stock Option, the per Share
exercise price shall be determined by the Administrator. In the case of a
Nonstatutory Stock Option intended to qualify as "performance-based
compensation" within the meaning of Section 162(m) of the Code, the per Share
exercise price shall be no less than 100% of the Fair Market Value per Share on
the date of grant.

               (iii) Notwithstanding the foregoing, Options may be granted with
a per Share exercise price of less than 100% of the Fair Market Value per Share
on the date of grant pursuant to a merger or other corporate transaction.

           (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 that 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. In the case of an Incentive Stock Option, the Administrator shall
determine the acceptable form of consideration at the time of grant. Such
consideration may consist entirely of:

               (i) cash;

               (ii) check;

               (iii) promissory note;

                                      -7-
<PAGE>   8

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

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

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

        10. Exercise of Option.

            (a) Procedure for Exercise; Rights as a Shareholder. Any Option
granted hereunder shall be exercisable according to the terms of the Plan and at
such times and under such conditions as determined by the Administrator and set
forth in the Option Agreement. Unless the Administrator provides otherwise,
vesting of Options granted hereunder shall be tolled during any unpaid leave of
absence. 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 shareholder shall exist
with respect to the Optioned Stock, notwithstanding the exercise of the Option.
The Company shall issue (or cause to be issued) such 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 13 of the Plan.

                  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 a Service Provider. If an
Optionee ceases to be a Service Provider, other than upon the Optionee's death
or Disability, the Optionee may exercise his or her Option within such period of
time as is specified in the Option Agreement 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). In the absence of
a specified time in the

                                      -8-
<PAGE>   9

Option Agreement, the Option shall remain exercisable for three (3) months
following the Optionee's termination. 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 a Service
Provider 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 (but in no event
later than the expiration of the term of such Option as set forth in the Option
Agreement). In the absence of a specified time in the Option Agreement, the
Option shall remain exercisable for twelve (12) months following the Optionee's
termination. 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 a Service Provider,
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. In the
absence of a specified time in the Option Agreement, the Option shall remain
exercisable for twelve (12) months following the Optionee's termination. 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. Stock Purchase Rights.

            (a) Rights to Purchase. Stock Purchase Rights may be issued either
alone, in addition to, or in tandem with other awards granted under the Plan
and/or cash awards made outside of the Plan. After the Administrator determines
that it will offer Stock Purchase Rights under the Plan, it shall advise the
offeree in writing or electronically, by means of a Notice of Grant, of the
terms, conditions and restrictions related to the offer, including the number of
Shares that the offeree shall be entitled to purchase, the price to be paid, and
the time within which the offeree must accept such offer. The offer shall be
accepted by execution of a Restricted Stock Purchase Agreement in the form
determined by the Administrator.

                                       -9-
<PAGE>   10

            (b) Repurchase Option. Unless the Administrator determines
otherwise, the Restricted Stock Purchase Agreement shall grant the Company a
repurchase option exercisable upon the voluntary or involuntary termination of
the purchaser's service with the Company for any reason (including death or
Disability). The purchase price for Shares repurchased pursuant to the
Restricted Stock Purchase Agreement shall be the original price paid by the
purchaser and may be paid by cancellation of any indebtedness of the purchaser
to the Company. The repurchase option shall lapse at a rate determined by the
Administrator.

            (c) Other Provisions. The Restricted Stock Purchase Agreement shall
contain such other terms, provisions and conditions not inconsistent with the
Plan as may be determined by the Administrator in its sole discretion.

            (d) Rights as a Shareholder. Once the Stock Purchase Right is
exercised, the purchaser shall have the rights equivalent to those of a
shareholder, and shall be a shareholder when his or her purchase is entered upon
the records of the duly authorized transfer agent of the Company. No adjustment
will be made for a dividend or other right for which the record date is prior to
the date the Stock Purchase Right is exercised, except as provided in Section 13
of the Plan.

        12. Non-Transferability of Options and Stock Purchase Rights. Unless
determined otherwise by the Administrator, an Option or Stock Purchase Right may
not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any
manner other than by will or by the laws of descent or distribution and may be
exercised, during the lifetime of the Optionee, only by the Optionee. If the
Administrator makes an Option or Stock Purchase Right transferable, such Option
or Stock Purchase Right shall contain such additional terms and conditions as
the Administrator deems appropriate.

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

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

                                      -10-
<PAGE>   11

            (b) Dissolution or Liquidation. In the event of the proposed
dissolution or liquidation of the Company, the Administrator shall notify each
Optionee as soon as practicable prior to the effective date of such proposed
transaction. The Administrator in its discretion may provide for an Optionee to
have the right to exercise his or her Option until ten (10) days prior to such
transaction as to all of the Optioned Stock covered thereby, including Shares as
to which the Option would not otherwise be exercisable. In addition, the
Administrator may provide that any Company repurchase option applicable to any
Shares purchased upon exercise of an Option or Stock Purchase Right shall lapse
as to all such Shares, provided the proposed dissolution or liquidation takes
place at the time and in the manner contemplated. To the extent it has not been
previously exercised, an Option or Stock Purchase Right will terminate
immediately prior to the consummation of such proposed action.

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

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

                                      -11-
<PAGE>   12

        15. Amendment and Termination of the Plan.

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

            (b) Shareholder Approval. The Company shall obtain shareholder
approval of any Plan amendment to the extent necessary and desirable to comply
with Applicable Laws.

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

        16. Conditions Upon Issuance of Shares.

            (a) Legal Compliance. Shares shall not be issued pursuant to the
exercise of an Option or Stock Purchase Right unless the exercise of such Option
or Stock Purchase Right and the issuance and delivery of such Shares shall
comply with 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 or Stock Purchase Right, the Company may require the person exercising
such Option or Stock Purchase Right to represent and warrant at the time of any
such exercise that the Shares are being purchased only for investment and
without any present intention to sell or distribute such Shares if, in the
opinion of counsel for the Company, such a representation is required.

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

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

        19. Shareholder Approval. The Plan shall be subject to approval by the
shareholders of the Company within twelve (12) months after the date the Plan is
adopted. Such shareholder approval shall be obtained in the manner and to the
degree required under Applicable Laws.

                                      -12-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00002-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00002-of-00352.parquet"}]]