Document:

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                                                                   EXHIBIT 10.16

                            C-CUBE MICROSYSTEMS INC.

                         MANAGEMENT RETENTION AGREEMENT

        This Management Retention Agreement (the "Agreement") is made and
entered into by and between Umesh Padval (the "Employee") and C-Cube
Microsystems Inc. (the "Company"), effective as of 18 February, 2000 (the
"Effective Date").

                                    RECITALS

                A.      It is expected that the Company from time to time will
consider the possibility of an acquisition by another company or other change
of control. The Board of Directors of the Company (the "Board") recognizes that
such consideration can be a distraction to Employee and can cause Employee to
consider alternative employment opportunities. The Board has determined that it
is in the best interests of the Company and its shareholders to assure that the
Company will have the continued dedication and objectivity of Employee,
notwithstanding the possibility, threat or occurrence of a Change of Control
(as defined below) of the Company.

                B.      The Board believes that it is in the best interests of
the Company and its shareholders to provide Employee with an incentive to
continue his employment and to motivate Employee to maximize the value of the
Company upon a Change of Control for the benefit of its shareholders.

                C.      The Board believes that it is imperative to provide
Employee with certain severance benefits upon Employee's termination of
employment in anticipation of or following a Change of Control which provides
Employee with enhanced financial security and provides incentive and
encouragement to Employee to remain with the Company notwithstanding the
possibility of a Change of Control.

                D.      Certain capitalized terms used in the Agreement are
defined in Section 8 below.

        The parties hereto agree as follows:

        1.      Term of Agreement. This Agreement shall terminate upon the date
that all obligations of the parties hereto with respect to this Agreement have
been satisfied.

        2.      At-Will Employment. The Company and Employee acknowledge that
Employee's employment is and shall continue to be at-will, as defined under
applicable law. If Employee's employment terminates for any reason, including
(without limitation) a termination prior to a Change of Control (other than a
termination in anticipation of a Change of Control), Employee shall not be
entitled to any payments, benefits, damages, awards or compensation other than
as provided

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by this Agreement, or as may otherwise be available in accordance with the
Company's established employee plans and practices or pursuant to other
agreements with the Company.

     3. Change of Control Severance Benefits.

        (a) Termination Without Cause or by Reason of an Involuntary
Termination. If Employee's employment is terminated (i) for reasons other than
Cause (other than by reason of Employee's death or Disability) or (ii) by reason
of an Involuntary Termination, in either case in anticipation of, on or within
twelve (12) months following a Change of Control, then Employee shall be
entitled to receive the following benefits from the Company:

            (i) Salary Continuation. Employee shall receive continuation of Base
Salary for a period of twelve (12) months following Employee's termination of
employment; provided, however, any such salary continuation shall immediately
terminate upon Employee's commencement of full-time employment with another
employer. All such severance payments shall be made in accordance with the
Company's normal payroll practices. Such continuation of Base Salary shall be in
lieu of any and all other benefits for which Employee is entitled to receive on
the date of Employee's termination of employment pursuant to any Company
severance and benefit plans and practices or pursuant to other agreements with
the Company.

            (ii) Employee Benefits Continuation. Employee shall receive one
hundred percent (100%) of Company-paid health, dental, vision, long-term
disability and life insurance coverage at the same level of coverage as was
provided to Employee immediately prior to Employee's termination of employment
("Company-Paid Coverage"). If such coverage included Employee's dependents
immediately prior to Employee's termination, such dependents shall also be
covered at the Company's expense. Company-Paid Coverage shall continue until the
earlier of (i) twelve (12) months following the date of Employee's termination,
or (ii) the date upon which Employee or Employee's dependents become covered
under another employer's group health, dental, vision, long-term disability or
life insurance plans.

            (iii) Equity Compensation Accelerated Vesting. Immediately upon
Employee's termination, one hundred percent (100%) of the unvested portion of
any stock option, restricted stock or other Company equity compensation held by
the Employee shall automatically be accelerated in full so as to become
completely vested.

        (b) Voluntary Resignation; Termination For Cause. If the Employee's
employment terminates by reason of the Employee's voluntary resignation that is
not an Involuntary Termination, or if the Employee is terminated for Cause, then
the Employee shall not be entitled to receive severance or other benefits except
for those (if any) as may then be established under the Company's then existing
severance and benefits plans or pursuant to other written agreements with the
Company.

        (c) Disability; Death. If the Employee's employment with the Company
terminates as a result of the Employee's Disability, or if Employee's employment
is terminated due to the death of the Employee, then the Employee shall not be
entitled to receive severance or other

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benefits except for those (if any) as may then be established under the
Company's then existing severance and benefits plans or pursuant to other
written agreements with the Company.

          (d)  Termination Apart from Change of Control. In the event the
Employee's employment is terminated for any reason, either prior to the
occurrence of a Change of Control (but not in anticipation of such Change of
Control) or after the twelve (12)-month period following a Change of Control,
then the Employee shall be entitled to receive severance and any other benefits
only as may then be established under the Company's existing severance and
benefits plans or pursuant to other written agreements with the Company.
Notwithstanding the preceding sentence, in the event Employee's employment is
terminated (i) by the Company other than for Cause, or (ii) by Employee by
reason of Involuntary Termination, in either case prior to the occurrence of a
Change of Control (but not in anticipation of such Change of Control) or after
the twelve (12)-month period following a Change of Control, the unvested
portion of any stock option, restricted stock or other Company equity
compensation held by Employee shall partially accelerate with respect to the
number of shares that would have vested during the twelve (12)-month period
following Employee's termination had Employee remained an employee during such
twelve (12)-month period, and shall become automatically vested with respect to
such shares.

     4.   Non-solicitation. Employee agrees that during the period of
Employee's employment with the Company and for a period of twelve (12) months
following the Employee's termination of employment for any reason, Employee
will not:

          (a)  Directly or indirectly induce or attempt to influence any
employee of the Company to leave its employ; or

          (b)  Without prior written authorization from the Company, disclose
to anyone outside the Company, or use in other than the Company's business, any
confidential information and material relating to the business of the Company.

     5.   Execution of Release Agreement upon Termination. As a condition of
entering into this Agreement and receiving the benefits hereunder, Employee
agrees to execute a release of claims agreement substantially in the form
attached hereto as Exhibit A upon the termination of his employment with the
Company. The Company agrees that any claim or claims it brings against Employee
must be brought within twelve (12) months of the termination date of Employee's
employment. All claims not brought by the Company within twelve (12) months of
the termination date of Employee's employment shall be forever barred.

     6.   Limitation on Payments. In the event that the severance and other
benefits provided for in this Agreement or otherwise payable to Employee (i)
constitute "parachute payments" within the meaning of Section 280G of the
Internal Revenue Code of 1986, as amended (the "Code") and (ii) but for this
Section 6, would be subject to the excise tax imposed by Section 4999 of the
Code (the "Excise Tax"), then Employee's benefits hereunder shall be either

          (a)  delivered in full, or

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          (b)  delivered as to such lesser extent which would result in no
portion of such severance benefits being subject to the Excise Tax,

whichever of the foregoing amounts, taking into account the applicable federal,
state and local income and employment taxes and the Excise Tax, results in the
receipt by Employee on an after-tax basis, of the greatest amount of severance
benefits, notwithstanding that all or some portion of such benefits may be
taxable under the Excise Tax. Unless the Company and Employee otherwise agree in
writing, any determination required under this Section 6 shall be made in
writing in good faith by the accounting firm serving as the Company's
independent public accountants immediately prior to the Change of Control (the
"Accountants"). For purposes of making the calculations required by this Section
6, the Accountants may make reasonable assumptions and approximations concerning
applicable taxes and may rely on reasonable, good faith interpretations
concerning the application of the Code. The Company and Employee shall furnish
to the Accountants such information and documents as the Accountants may
reasonably request in order to make a determination under this Section. The
Company shall bear all costs the Accountants may reasonably incur in connection
with any calculations contemplated by this Section 6.

     7.   Pooling of Interests Limitation. To the extent any of the benefits
(including the equity compensation vesting acceleration) hereunder would cause
a contemplated Change of Control transaction that was intended to be accounted
for as a "pooling-of-interests" transaction to become ineligible for such
accounting treatment under generally accepted accounting principles, as
determined by the Accountants, then this Agreement shall automatically be
deemed amended to provide Employee with such lesser benefits as would allow for
the contemplated Change of Control transaction to be accounted for as a
"pooling-of-interests" transaction.

     8.   Definition of Terms. The following terms, when capitalized to in this
Agreement, shall have the following meanings:

          (a)  Base Salary. "Base Salary" shall mean Employee's annual Company
salary at the rate in effect immediately preceding Employee's date of
termination with the Company.

          (b)  Cause. "Cause" shall mean either (i) any act of personal
dishonesty taken by Employee in connection with his responsibilities as an
employee and intended to result in substantial personal enrichment of Employee
at the expense of the Company, (ii) Employee's conviction of or entry of a plea
of nolo contendere to a felony, (iii) a willful act by Employee which
constitutes gross misconduct and which is demonstrably injurious to the
Company, or (iv) following delivery to Employee of a written demand for
performance from the Company which describes the basis for the Company's belief
that Employee has not substantially performed his duties, continued substantial
violations by Employee of Employee's obligations to the Company which are
demonstrably willful and deliberate on Employee's part.

          (c)  Change of Control. "Change of Control" shall mean the occurrence
of any of the following events:

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          (i)  Any "person" (as such term is used in Sections 13(d) and 14(d) of
the Securities Exchange Act of 1934, as amended) becomes the "beneficial owner"
(as defined in Rule 13d-3 under said Act), directly or indirectly, of securities
of the Company representing fifty percent (50%) or more of the total voting
power represented by the Company's then outstanding voting securities; or

          (ii)  The consummation of the sale or disposition by the Company of
all or substantially all the Company's assets; or

          (iii)  The consummation of a merger or consolidation of the Company
with any other corporation, other than a merger or consolidation which would
result in the voting securities of the Company outstanding immediately prior
thereto continuing to represent (either by remaining outstanding or by being
converted into voting securities of the surviving entity or its parent) at least
fifty percent (50%) of the total voting power represented by the voting
securities of the Company or such surviving entity or its parent outstanding
immediately after such merger or consolidation; or

          (iv)  A change in the composition of the Board occurring within a
two-year period, as a result of which fewer than a majority of the directors are
Incumbent Directors. "Incumbent Directors" shall mean directors who either (A)
are directors of the Company as of the date upon which this Agreement was
entered into, or (B) are elected, or nominated for election, to the Board with
the affirmative votes of at least a majority of those directors whose election
or nomination was not in connection with any transaction described in
subsections (i), (ii), or (iii) above, or in connection with an actual or
threatened proxy contest relating to the election of directors to the Company;
or

          (v)  The sale, spin-off or other disposition to third parties by the
Company of all or substantially all of the business or division of the Company
that employes the Employee.

     (d)  Disability. "Disability" shall mean that the Employee has been unable
to perform his Company duties as the result of his incapacity due to physical or
mental illness, and such inability, at least 26 weeks after its commencement, is
determined to be total and permanent by a physician selected by the Company or
its insurers and acceptable to the Employee or the Employee's legal
representative (such Agreement as to acceptability not to be unreasonably
withheld). Termination resulting from Disability may only be effected after at
least 30 days' written notice by the Company of its intention to terminate the
Employee's employment. In the event that the Employee resumes the performance of
substantially all of his duties hereunder before the termination of his
employment becomes effective, the notice of intent to terminate shall
automatically be deemed to have been revoked.

     (e)  Involuntary Termination. "Involuntary Termination" shall mean (i)
without Employee's express written consent, a material reduction of Employee's
duties, authority and responsibilities, relative to Employee's duties,
authority and responsibilities as in effect immediately prior to such
reduction, or the assignment to Employee of such reduced duties, authority and

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responsibilities; provided, however, that a reduction in duties, authority and
responsibilities solely by virtue of the Company being acquired and made part of
a larger entity (as, for example, when the Chief Financial Officer of C-Cube
Microsystems, Inc. remains as such following a Change of Control and is not made
the Chief Financial Officer of the acquiring corporation) shall not constitute
"Involuntary Termination;" (ii) a reduction by the Company in the Base Salary of
Employee as in effect immediately prior to such reduction, other than any such
reduction which is part of, and generally consistent with, a general reduction
of officers salaries or cash incentive compensation; (iii) a material reduction
by the Company in the kind or level of employee benefits, to which Employee was
entitled immediately prior to such reduction with the result that Employee's
overall benefits package is materially reduced; (iv) the relocation of Employee
to a facility or a location more than thirty-five (35) miles from Employee's
then present location, without Employee's express written consent; (v) any
purported termination of Employee by the Company which is not effected for
Disability or for Cause, or any purported termination for which the grounds
relied upon are not valid; or (vi) the failure of the Company to obtain the
assumption of this agreement by any successors contemplated in Section 9(a)
below. A resignation tendered by Employee pursuant to a direct request of the
Board shall, for purposes of this Agreement, be treated as an Involuntary
Termination.

     9.   Successors.

          (a)  Company's Successors. Any successor to the Company (whether
direct or indirect and whether by purchase, merger, consolidation, liquidation
or otherwise) to all or substantially all of the Company's business and/or
assets (or, in the case of a transaction described in subsection 8(c)(v), the
successor to such business or division) shall assume the obligations under this
Agreement and agree expressly to perform the obligations under this Agreement
in the same manner and to the same extent as the Company would be required to
perform such obligations in the absence of a succession. For all purposes under
this Agreement, the term "Company" shall include any such successor to the
Company which executes and delivers the assumption agreement described in this
Section 9(a) or which becomes bound by the terms of this Agreement by operation
of law.

          (b)  Employee's Successors. The terms of this Agreement and all rights
of Employee hereunder shall inure to the benefit of, and be enforceable by,
Employee's personal or legal representatives, executors, administrators,
successors, heirs, distributees, devisees and legatees.

     10.  Notice.

          (a)  General. Notices and all other communications contemplated by
this Agreement shall be in writing and shall be deemed to have been duly given
when personally delivered or when mailed by U.S. registered or certified mail,
return receipt requested and postage prepaid. In the case of Employee, mailed
notices shall be addressed to him at the home address which he most recently
communicated to the Company in writing. In the case of the Company, mailed
notices shall be addressed to its corporate headquarters, and all notices shall
be directed to the attention of its Secretary.

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            (b) Notice of Termination. Any termination by the Company for Cause
or by Employee as a result of an Involuntary Termination shall be communicated
by a notice of termination to the other party hereto give in accordance with
Section 10(a) of this Agreement. Such notice shall indicate the specific
termination provision in this Agreement relied upon, shall set forth in
reasonable detail the facts and circumstances claimed to provide a basis for
termination under the provision so indicated, and shall specify the termination
date (which shall be not more than 30 days after the giving of such notice). The
failure by Employee to include in the notice any fact or circumstance which
contributes to a showing of Involuntary Termination shall not waive any right of
Employee hereunder or preclude Employee from asserting such fact or circumstance
in enforcing his rights hereunder.

      11. Miscellaneous Provisions.

            (a) Waiver. No provision of this Agreement shall be modified, waived
or discharged unless the modification, waiver or discharge is agreed to in
writing and signed by Employee and by an authorized officer of the Company
(other than Employee). No waiver by either party of any breach of, or of
compliance with, any condition or provision of this Agreement by the other party
shall be considered a waiver of any other condition or provision or of the same
condition or provision at another time.

            (b) Whole Agreement. No agreements, representations or
understandings (whether oral or written and whether express or implied) which
are not expressly set forth in this Agreement have been made or entered into by
either party with respect to the subject matter hereof. This Agreement
represents the entire understanding of the parties hereto with respect to the
subject matter hereof and supersedes all prior arrangements and understandings
regarding same.

            (c) Choice of Law. The validity, interpretation, construction and
performance of this Agreement shall be governed by the laws of the State of
California.

            (d) Severability. The invalidity or unenforceability of any
provision or provisions of this Agreement shall not affect the validity or
enforceability of any other provision hereof, which shall remain in full force
and effect.

            (e) Withholding. All payments made pursuant to this Agreement will
be subject to withholding of applicable income and employment taxes to the
extent required by law.

            (f) Counterparts. This Agreement may be executed in counterparts,
each of which shall be deemed an original, but all of which together will
constitute one and the same instrument.

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     IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the
case of the Company by its duly authorized officer, as of the day and year set
forth below.

DATE: 28 February 2000                  C-CUBE MICROSYSTEMS, INC.
     --------------------

                                        By: /s/ ALEXANDRE BALKANSKI
                                           ----------------------------------
                                                  Alexandre Balkanski

                                        Title:    CEO
                                              -------------------------------

                                        EMPLOYEE

                                          /s/ UMESH PADVAL           2/18/00
                                        -------------------------------------
                                                     Umesh Padval

                                      -8-
<PAGE>   9
                                   EXHIBIT A

                        FORM RELEASE OF CLAIMS AGREEMENT

     This Release of Claims Agreement ("Agreement") is made by and between
________________ (the "Company") and Umesh Padval ("Employee").

     WHEREAS, Umesh Padval was employed by the Company;

     WHEREAS, the Company (or the Company's predecessor) and Employee have
entered into a Management Retention Agreement effective as of ____________, 2000
(the "Management Agreement");

     NOW THEREFORE, in consideration of the mutual promises made herein, the
Company and Employee (collectively referred to as "the Parties") hereby agree as
follows:

          1. Termination. Employee's employment with the Company terminated on
_______________.

          2. Consideration. Subject to and in consideration of Employee's
release of claims as provided herein, the Company has agreed to pay Employee
certain benefits as set forth in the Management Agreement.

          3. Payment of Salary. Employee acknowledges and represents that except
as to amounts that remain payable to Employee pursuant to the terms of the
Management Agreement, the Company has paid all salary, wages, bonuses, accrued
vacation, commissions and any and all other benefits due to Employee.

          4. Release of Claims. Employee agrees that the foregoing consideration
represents settlement in full of all outstanding obligations owed to Employee by
the Company. Employee, on behalf of himself, and his respective heirs, family
members, executors and assigns, hereby fully and forever releases the Company
and its past, present and future officers, agents, directors, employees,
investors, shareholders, administrators, affiliates, divisions, subsidiaries,
parents, predecessor and successor corporations, and assigns, from, and agrees
not to sue or otherwise institute or cause to be instituted any legal or
administrative proceedings concerning any claim, duty, obligation or cause of
action relating to any matters of any kind, whether presently known or unknown,
suspected or unsuspected, that he may possess arising from any omissions, acts
or facts that have occurred up until and including the Effective Date of this
Agreement including, without limitation,

               (a) any and all claims relating to or arising from Employee's
employment relationship with the Company and the termination of that
Relationship;

               (b) any and all claims relating to, or arising from, Employee's
right to purchase, or actual purchase of shares of stock of the Company,
including, without limitation, any
<PAGE>   10
claims for fraud, misrepresentation, breach of fiduciary duty, breach of duty
under applicable state corporate law, and securities fraud under any state or
federal law;

               (c) any and all claims for wrongful discharge of employment;
termination in violation of public policy; discrimination; breach of contract,
both express and implied; breach of a covenant of good faith and fair dealing,
both express and implied; promissory estoppel; negligent or intentional
infliction of emotional distress; negligent or intentional misrepresentation,
negligent or intentional interference with contract or prospective economic
advantage; unfair business practices; defamation; libel; slander; negligence;
personal injury; assault; battery; invasion of privacy; false imprisonment; and
conversion;

               (d) any and all claims for violation of any federal, state or
municipal statute, including, but not limited to, Title VII of the Civil Rights
Act of 1964, the Civil Rights Act of 1991, the Age Discrimination in Employment
Act of 1967, the Americans with Disabilities Act of 1990, the Fair Labor
Standards Act, the Employee Retirement Income Security Act of 1974, The Worker
Adjustment and Retraining Notification Act, the California Fair Employment and
Housing Act, and Labor Code section 201, et seq. and section 970, et seq. and
all amendments to each such Act as well as the regulations issued thereunder;

               (e) any and all claims for violation of the federal, or any
state, constitution;

               (f) any and all claims arising out of any other laws and
regulations relating to employment or employment discrimination; and

               (g) any and all claims for attorneys' fees and costs.

               (h) Employee agrees that the release set forth in this section
shall be and remain in effect in all respects as a complete general release as
to the matters released. This release does not extend to any obligations
incurred under this Agreement. This release does not apply to the Company's
obligation to indemnify Employee for acts committed in the course and scope of
his employment to the fullest extent provided for in the California Labor Code,
or any other right or contract of indemnification. This release does not apply
under any Company employee benefit and/or retirement plan to the extent rights
are provided for in such plan(s).

          5. Acknowledgment of Waiver of Claims under ADEA. Employee
acknowledges that he is waiving and releasing any rights he may have under the
Age Discrimination in Employment Act of 1967 ("ADEA") and that this waiver and
release is knowing and voluntary. Employee and the Company agree that this
waiver and release does not apply to any rights or claims that may arise under
the ADEA after the Effective Date of this Agreement. Employee acknowledges that
the consideration given for this waiver and release agreement is in addition to
anything of value to which Employee was already entitled. Employee further
acknowledges that he has been advised by this writing that (a) he should consult
with an attorney prior to executing this Agreement; (b) he has at least
twenty-one (21) days within which to consider this Agreement; (c) he has seven
(7) days following the execution of this Agreement by the parties to revoke the
Agreement; and (d) this Agreement shall not be effective until the revocation
period has expired. Any revocation should be

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<PAGE>   11
in writing and delivered to the Company by close of business on the seventh day
from the date that Employee signs this Agreement.

                6.      Civil Code Section 1542. Employee represents that he is
not aware of any claims against the Company other than the claims that are
released by this Agreement. Employee acknowledges that he has been advised by
legal counsel and is familiar with the provisions of California Civil Code
Section 1542, which provides as follows:

                A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE
                CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS
                FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF
                KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS
                SETTLEMENT WITH THE DEBTOR.

        Employee, being aware of said code section, agrees to expressly waive
any rights he may have thereunder, as well as under any other statute or common
law principles of similar effect.

                7.      No Pending or Future Lawsuits. Employee represents that
(1) he has no lawsuits, claims, or actions pending in his name, or on behalf of
any other person or entity, against the Company or any other person or entity
referred to herein, or (2) in the event he has brought a lawsuit, claim or
action on behalf of himself, he will dismiss the lawsuit, claim or action with
prejudice, or (3) in the event he has brought a lawsuit, claim or action on
behalf of any other person or entity, he will dismiss the lawsuit, claim or
action with prejudice, if permitted by applicable law. Employee also represents
that he does not intend to bring any claims on his own behalf or on behalf of
any other person or entity against the company or any other person or entity
referred to herein.

                8.      Confidentiality. Employee agrees to use his best
efforts to maintain in confidence the existence of this Agreement, the contents
and terms of this Agreement, and the consideration for this Agreement
(hereinafter collectively referred to as "Release Information"). Employee
agrees to take every reasonable precaution to prevent disclosure of any Release
Information to third parties, and agrees that there will be no publicity,
directly or indirectly, concerning any Release Information. Employee agrees to
take every precaution to disclose Release Information only to those attorneys,
accountants, governmental entities, and family members who have a reasonably
need to know of such Release Information.

                9.      No Cooperation. Employee agrees that he will not
counsel or assist any attorneys or their clients in the presentation or
prosecution of any disputes, differences, grievances, claims, charges, or
complaints by any third party against the Company and/or any officer, director,
employee, agent, representative, shareholder or attorney of the Company, unless
under a subpoena or other court order to do so.

                10.     Mutual Non-Disparagement. The Company agrees that its
officers and directors will not make any negative or derogatory comments about
Employee at any time, and Employee agrees that he will not make any negative or
derogatory comments about the Company at any time. The Company agrees that it
will respond to any third party inquiries about Employee, by
<PAGE>   12
stating only the date Employee began and terminated his employment, and that it
is Company policy not to make further comments about departed employees.

     11. Costs. The Parties shall each bear their own costs, expert fees,
attorneys' fees and other fees incurred in connection with this Agreement.

     12. Authority. Employee represents and warrants that he has the capacity to
act on his own behalf and on behalf of all who might claim through him to bind
them to the terms and conditions of this Agreement.

     13. No Representations. Employee represents that he has had the opportunity
to consult with an attorney, and has carefully read and understands the scope
and effect of the provisions of this Agreement. Neither party has relied upon
any representations or statements made by the other party hereto which are not
specifically set forth in this Agreement.

     14. Severability In the event that any provision hereof becomes or is
declared by a court of competent jurisdiction to be illegal, unenforceable or
void, this Agreement shall continue in full force and effect without said
provision.

     15. Entire Agreement. This Agreement and the Management Agreement and the
agreements and plans referenced in such Agreements (including, without
limitation, all of Employee's stock option, equity compensation and/or
restricted stock purchase plans) represent the entire agreement and
understanding between the Company and Employee concerning Employee's separation
from the Company, and supersede and replace any and all prior agreements and
understandings concerning Employee's relationship with the Company and his
compensation by the Company. This Agreement may only be amended in writing
signed by Employee and an executive officer of the Company.

     16. Governing Law. This Agreement shall be governed by the internal
substantive laws, but not the choice of law rules, of the State of California.

     17. Effective Date. This Agreement is effective eight (8) days after it has
been signed by both Parties.

     18. Counterparts. This Agreement may be executed in counterparts, and each
counterpart shall have the same force and effect as an original and shall
constitute an effective, binding agreement on the part of each of the
undersigned.

     19. Voluntary Execution of Agreement. This Agreement is executed
voluntarily and without any duress or undue influence on the part or behalf of
the Parties hereto, with the full intent of releasing all claims. The Parties
acknowledge that:

         (a) They have read this Agreement;

         (b) They have been represented in the preparation, negotiation and
execution of this Agreement by legal counsel of their own choice or that they
have voluntarily declined to seek such counsel;
<PAGE>   13
          (c) They understand the terms and consequences of this Agreement and
of the releases it contains;

          (d) They are fully aware of the legal and binding effect of this
Agreement.

     IN WITNESS WHEREOF, the Parties have executed this Agreement on the
respective dates set forth below.

                                             COMPANY

Dated: _________, _____                      By _______________________________

                                             UMESH PADVAL, an individual

Dated: _________, _____                      __________________________________

                                                                             -5-<PAGE>   1
                                                                   EXHIBIT 10.18

                              INGENUUS CORPORATION
                            2000 AMENDED AND RESTATED
                                STOCK OPTION PLAN

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

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

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

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

     Options granted under the Plan will be Nonstatutory Stock Options.

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

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

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

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

          (d)  "Change of Control" means:

               (i)  The acquisition by any "person" (as such term is used in
Sections 13(d) and 14(d) of the Exchange Act) (other than the Company or a
person that directly or indirectly controls, is controlled by, or is under
common control with, the Company) of the "beneficial ownership" (as defined in
Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the
Company representing fifty percent (50%) or more of the total voting power
represented by the Company's then outstanding voting securities; or

               (ii) The closing of a merger or consolidation of the Company with
any other corporation or entity, other than a merger or consolidation which
would result in the voting securities of the Company outstanding immediately
prior thereto continuing to represent (either by remaining outstanding or by
being converted into voting securities of the surviving entity) at least fifty
percent (50%) of the total voting power represented by the voting securities of
the Company or

<PAGE>   2

such surviving entity outstanding immediately after such merger or
consolidation, or the approval by the stockholders of the Company of an
agreement for the sale or disposition by the Company of all or substantially all
the Company's assets.

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

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

          (g)  "Common Stock" means the common stock of the Company.

          (h)  "Company" means Ingenuus Corporation, a Delaware corporation.

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

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

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

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

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

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

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

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

                                       2

<PAGE>   3

               (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.

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

          (p)  "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.

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

          (r)  "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.

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

          (t)  "Optioned Stock" means the Common Stock subject to an Option.

          (u)  "Optionee" means the holder of an outstanding Option granted
under the Plan.

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

          (w)  "Plan" means this 2000 Amended and Restated Stock Option Plan.

          (x)  "Service Provider" means an Employee, including an Officer,
Director.

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

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

     3.   Stock Subject to the Plan. Subject to the provisions of Section 13 of
the Plan, the maximum aggregate number of Shares which may be optioned and sold
under the Plan is 5,000,000 Shares. The Shares may be authorized, but unissued,
or reacquired Common Stock.

     If an Option 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 shall not be
returned to the Plan and shall not become available for future distribution
under the Plan.

                                       3

<PAGE>   4

     4.   Administration of the Plan.

          (a)  Procedure.

               (i)  Multiple Administrative Bodies. The Plan may be administered
by different Committees with respect to different groups of Service Providers.

               (ii) 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 may be
granted hereunder;

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

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

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

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

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

               (viii) to institute an Option Exchange Program;

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

               (x)  to 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;

                                       4

<PAGE>   5

               (xi) to modify or amend each Option (subject to Section 14(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;

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

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

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

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

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

     5.   Eligibility. Nonstatutory Stock Options may be granted to Service
Provider; provided, however, that notwithstanding anything to the contrary
contained in the Plan, Options may not be granted to Officers and Directors.

     6.   Limitations. Neither the Plan nor any Option 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.

     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.

     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.

          (b)  Waiting Period and Exercise Dates. At the time an Option is
granted, the Administrator shall fix the period within which the Option may be
exercised and shall determine any conditions which must be satisfied before the
Option may be exercised.

                                       5

<PAGE>   6

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

               (i)  cash

               (ii) check

               (iii) promissory note;

               (iv) other Shares which (A) in the case of Shares acquired upon
exercise of an option, have been owned by the Optionee for more than six (6)
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; or

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

     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

                                       6

<PAGE>   7

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, but only within such
period of time as is specified in the Option Agreement, and only to the extent
that the Option is vested on the date of termination (but in no event later than
the expiration of the term of such Option as set forth in the Option Agreement).
In the absence of a specified time in the 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.

                                        7

<PAGE>   8

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

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

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

          (b)  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 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 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 where the Company is not the surviving entity,
or the sale of substantially all of the assets of the Company, each outstanding
Option shall be fully vested and exercisable, including Shares which would not
otherwise be vested or exercisable. If an Option becomes fully vested and
exercisable, the Administrator shall notify the Option in writing or
electronically that the Option

                                       8

<PAGE>   9

shall be fully vested and exercisable for a period of fifteen (15) days from the
date of such notice, and the Option shall terminate upon the expiration of such
period.

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

     14.  Amendment and Termination of the Plan.

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

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

     15.  Conditions Upon Issuance of Shares.

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

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

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

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

                                      9

<PAGE>   10

                              INGENUUS CORPORATION
                      2000 AMENDED AND RESTATED STOCK PLAN
                             STOCK OPTION AGREEMENT

     Unless otherwise defined herein, the terms defined in the Plan shall have
the same defined meanings in this Option Agreement.

     I.   NOTICE OF STOCK OPTION GRANT

     [Optionee's Name and Address]

     You have been granted an option to purchase Common Stock of the Company,
subject to the terms and conditions of the Plan and this Option Agreement, as
follows:

     Grant Number
                                  ----------------------------------------------

     Date of Grant
                                  ----------------------------------------------

     Vesting Commencement Date
                                  ----------------------------------------------

     Exercise Price per Share    $
                                  ----------------------------------------------

     Total Number of Shares Granted
                                     -------------------------------------------

     Total Exercise Price        $
                                  ----------------------------------------------

     Type of Option:              ______  Nonstatutory Stock Option ("NSO")

     Term/Expiration Date:
                                  ----------------------------------------------

     Vesting Schedule:

     This Option may be exercised, in whole or in part, in accordance with the
following schedule:

     25% of the Shares subject to the Option shall vest twelve (12) months after
the Vesting Commencement Date, and [_____] of the Shares subject to the Option
shall vest each month thereafter, subject to the Optionee continuing to be a
Service Provider on such dates.

     Termination Period:

     This Option may be exercised for three (3) months after Optionee ceases to
be a Service Provider. Upon the death or Disability of the Optionee, this Option
may be exercised for such longer period as provided in the Plan. In no event
shall this Option be exercised later than the Term/Expiration Date as provided
above.

                                       10
<PAGE>   11

     II.  AGREEMENT

          (a)  Grant of Option. The Plan Administrator of the Company hereby
grants to the Optionee named in the Notice of Grant attached as Part I of this
Agreement (the "Optionee") an option (the "Option") to purchase the number of
Shares, as set forth in the Notice of Grant, at the exercise price per share set
forth in the Notice of Grant (the "Exercise Price"), subject to the terms and
conditions of the Plan, which is incorporated herein by reference. In the event
of a conflict between the terms and conditions of the Plan and the terms and
conditions of this Option Agreement, the terms and conditions of the Plan shall
prevail.

          (b)  Exercise of Option.

               (i)  Right to Exercise. This Option is exercisable during its
term in accordance with the Vesting Schedule set out in the Notice of Grant and
the applicable provisions of the Plan and this Option Agreement.

               (ii) Method of Exercise. This Option is exercisable by delivery
of an exercise notice, in the form attached as Exhibit A (the "Exercise
Notice"), which shall state the election to exercise the Option, the number of
Shares in respect of which the Option is being exercised (the "Exercised
Shares"), and such other representations and agreements as may be required by
the Company pursuant to the provisions of the Plan. The Exercise Notice shall be
completed by the Optionee and delivered to Secretary of the Company. The
Exercise Notice shall be accompanied by payment of the aggregate Exercise Price
as to all Exercised Shares. This Option shall be deemed to be exercised upon
receipt by the Company of such fully executed Exercise Notice accompanied by
such aggregate Exercise Price.

     No Shares shall be issued pursuant to the exercise of this Option unless
such issuance and exercise complies with Applicable Laws. Assuming such
compliance, for income tax purposes the Exercised Shares shall be considered
transferred to the Optionee on the date the Option is exercised with respect to
such Exercised Shares.

          (c)  Method of Payment. Payment of the aggregate Exercise Price shall
be by any of the following, or a combination thereof, at the election of the
Optionee:

               (i)  cash;

               (ii) check; or

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

          (d)  Non-Transferability of Option. This Option may not be transferred
in any manner otherwise than by will or by the laws of descent or distribution
and may be exercised during the lifetime of Optionee only by the Optionee. The
terms of the Plan and this Option Agreement shall be binding upon the executors,
administrators, heirs, successors and assigns of the Optionee.

                                       11

<PAGE>   12

          (e)  Term of Option. This Option may be exercised only within the term
set out in the Notice of Grant, and may be exercised during such term only in
accordance with the Plan and the terms of this Option Agreement.

          (f)  Tax Consequences. Some of the federal tax consequences relating
to this Option, as of the date of this Option, are set forth below. THIS SUMMARY
IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO
CHANGE. THE OPTIONEE SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THIS OPTION
OR DISPOSING OF THE SHARES.

               (i)  Exercising the Option. The Optionee may incur regular
federal income tax liability upon exercise of an NSO. The Optionee will be
treated as having received compensation income (taxable at ordinary income tax
rates) equal to the excess, if any, of the Fair Market Value of the Exercised
Shares on the date of exercise over their aggregate Exercise Price. If the
Optionee is an Employee or a former Employee, the Company will be required to
withhold from his or her compensation or collect from Optionee and pay to the
applicable taxing authorities an amount in cash equal to a percentage of this
compensation income at the time of exercise, and may refuse to honor the
exercise and refuse to deliver Shares if such withholding amounts are not
delivered at the time of exercise.

               (ii) Disposition of Shares. If the Optionee holds NSO Shares for
at least one year, any gain realized on disposition of the Shares will be
treated as long-term capital gain for federal income tax purposes.

          (g)  Entire Agreement; Governing Law. The Plan is incorporated herein
by reference. The Plan and this Option Agreement constitute the entire agreement
of the parties with respect to the subject matter hereof and supersede in their
entirety all prior undertakings and agreements of the Company and Optionee with
respect to the subject matter hereof, and may not be modified adversely to the
Optionee's interest except by means of a writing signed by the Company and
Optionee. This agreement is governed by the internal substantive laws, but not
the choice of law rules, of Delaware.

          (h)  NO GUARANTEE OF CONTINUED SERVICE. OPTIONEE ACKNOWLEDGES AND
AGREES THAT THE VESTING OF SHARES PURSUANT TO THE VESTING SCHEDULE HEREOF IS
EARNED ONLY BY CONTINUING AS A SERVICE PROVIDER AT THE WILL OF THE COMPANY (AND
NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED AN OPTION OR PURCHASING SHARES
HEREUNDER). OPTIONEE FURTHER ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT, THE
TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO
NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A
SERVICE PROVIDER FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL
NOT INTERFERE WITH OPTIONEE'S RIGHT OR THE COMPANY'S RIGHT TO TERMINATE
OPTIONEE'S RELATIONSHIP AS A SERVICE PROVIDER AT ANY TIME, WITH OR WITHOUT
CAUSE.

                                       12

<PAGE>   13

     By your signature and the signature of the Company's representative below,
you and the Company agree that this Option is granted under and governed by the
terms and conditions of the Plan and this Option Agreement. Optionee has
reviewed the Plan and this Option Agreement in their entirety, has had an
opportunity to obtain the advice of counsel prior to executing this Option
Agreement and fully understands all provisions of the Plan and Option Agreement.
Optionee hereby agrees to accept as binding, conclusive and final all decisions
or interpretations of the Administrator upon any questions relating to the Plan
and Option Agreement. Optionee further agrees to notify the Company upon any
change in the residence address indicated below.

OPTIONEE:                                  INGENUUS CORPORATION

---------------------------------          ---------------------------------

Signature By

---------------------------------

Print Name Title

---------------------------------

Residence Address

---------------------------------

                                       13

<PAGE>   14

                                    EXHIBIT A
                      2000 AMENDED AND RESTATED STOCK PLAN
                                 EXERCISE NOTICE

Ingenuus Corporation
830 East Arques Avenue
Sunnyvale, CA 94086
Attention: Secretary

     1. Exercise of Option. Effective as of today, ________________, 20__, the
undersigned ("Purchaser") hereby elects to purchase ______________ shares (the
"Shares") of the Common Stock of Ingenuus Corporation (the "Company") under and
pursuant to the 2000 Amended and Restated Stock Option Plan (the "Plan") and the
Stock Option Agreement dated, 20__ (the "Option Agreement"). The purchase price
for the Shares shall be $__________, as required by the Option Agreement.

     2. Delivery of Payment. Purchaser herewith delivers to the Company the full
purchase price for the Shares.

     3. Rrepresentations of Purchaser. Purchaser acknowledges that Purchaser has
received, read and understood the Plan and the Option Agreement and agrees to
abide by and be bound by their terms and conditions.

     4. Rights as Shareholder. Until the issuance (as evidenced by the
appropriate entry on the books of the Company or of a duly authorized transfer
agent of the Company) of the Shares, 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 Shares so acquired shall
be issued to the Optionee as soon as practicable after exercise of the Option.
No adjustment will be made for a dividend or other right for which the record
date is prior to the date of issuance, except as provided in Section 13 of the
Plan.

     5. Tax Consultation. Purchaser understands that Purchaser may suffer
adverse tax consequences as a result of Purchaser's purchase or disposition of
the Shares. Purchaser represents that Purchaser has consulted with any tax
consultants Purchaser deems advisable in connection with the purchase or
disposition of the Shares and that Purchaser is not relying on the Company for
any tax advice.

     6. Entire Agreement; Governing Law. The Plan and Option Agreement are
incorporated herein by reference. This Agreement, the Plan and the Option
Agreement constitute the entire agreement of the parties with respect to the
subject matter hereof and supersede in their entirety all prior undertakings and
agreements of the Company and Purchaser with respect to the subject matter
hereof, and may not be modified adversely to the Purchaser's interest except by
means of a writing signed by the Company and Purchaser. This agreement is
governed by the internal substantive laws, but not the choice of law rules, of
Delaware.

                                       14
<PAGE>   15

Submitted by:                         Accepted by:

PURCHASER:                            INGENUUS CORPORATION

---------------------------------     ---------------------------------

Signature                             By

---------------------------------     ---------------------------------

Print Name                            Its

Address:                              Address:

                                      Ingenuus Corporation
---------------------------------     830 East Arques Avenue Sunnyvale, CA 94086
                                      Date Received
---------------------------------                   ------------------------

                                       15

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