Document:

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                                                                     EXHIBIT 4.8

                   FORM OF NONQUALIFIED STOCK OPTION AGREEMENT

         THIS AGREEMENT made and entered into this ______ day of _____________,
2000, by and between Circle International Group, Inc., a Delaware corporation
(the "Company"), and _______________________________, an employee of the Company
(the "Employee"),

                                   WITNESSETH:

         WHEREAS, the Company has adopted the 2000 Stock Option Plan (the
"Plan"), providing for the granting to its employees of stock options relating
to shares of its common stock (the "Common Stock"),

         WHEREAS, the Plan provides for the grant of options which are not
intended to be incentive stock options within the meaning of Section 422A of the
Internal Revenue Code of 1986, as amended, ("non-qualified stock option"); and

         WHEREAS, the Employee is in a position to make an important
contribution to the long-term performance of the Company.

         NOW, THEREFORE, in consideration of the foregoing and of the mutual
covenants hereinafter set forth and other good and valuable consideration, the
receipt and adequacy of which are hereby acknowledged, the parties hereto hereby
agree as follows:

         1. Grant Of Option. The Company hereby grants to the Employee a
non-qualified stock option to purchase __________ shares of the Common Stock at
the price set forth in Paragraph 2 hereof, on the terms and conditions
hereinafter stated. The parties agree that this option will not be treated as an
"incentive stock option".

         2. Exercise Price. The purchase price per share is ____________________
Point _________ Dollars ($_______.___) (which is the fair market value of such
Common Stock at date of grant), which shall be paid in the legal tender of the
United States.

         3. Number Of Shares. The number of shares of Common Stock covered
hereby and the price per share thereof shall be proportionately adjusted for any
increase or decrease in the number of issued and outstanding shares of Common
Stock resulting from a subdivision or consolidation of shares or the payment of
a stock dividend in excess of 2% or any other increase or decrease in the number
of issued and outstanding shares of Common Stock effected without receipt of
consideration by the Company.

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         Subject to any required approval of the Stockholders of the Company, if
the Company shall be the surviving corporation in any merger or consolidation,
this option (to the extent that it is still outstanding) shall pertain to and
apply to the securities of which a holder of the same number of shares of Common
Stock that are subject to the option would have been entitled. To the extent
that the foregoing adjustments relate to stock or securities of the Company, any
such adjustments shall be made by the Human Resources and Compensation Committee
(the "Committee"), whose determination in that respect shall be final, binding
and conclusive.

         In the event of a change in control (as defined below) any and all
outstanding options shall automatically vest in full and shall be immediately
exercisable without regards to any limitations on the date of the occurrence of
the change in control. A change in control shall be deemed to have occurred if:

                  (a)      as a result of or in connection with any tender
                           offer, exchange offer, merger, or acquisition other
                           business combination, sale of assets or contested
                           election or combination of the foregoing, the persons
                           who were Directors of the company just prior to such
                           event cease to constitute a majority of the Board of
                           the Company or its successor;

                  (b)      the stockholders of the company approve a merger or
                           consolidation of the Company with another Company and
                           as a result of such merger or consolidation less than
                           70% of the outstanding voting securities of the
                           surviving or resulting Company shall then be owned in
                           the aggregate by the former stockholders of the
                           Company, other than (A) any party to such merger or
                           consolidations, or (B) any affiliates to any such
                           party;

                  (c)      a tender offer or exchange offer is made and
                           consummated for the ownership of securities of the
                           Company representing 50% or more of the combined
                           voting power of the Company's then outstanding voting
                           securities;

                  (d)      any person is or becomes the beneficial owner,
                           directly or indirectly, of at least 20% of the
                           combined voting power of the Company's outstanding
                           securities, except by reason of a repurchase by the
                           Company of its securities; or

                  (e)      a plan of liquidation or an agreement for the sale or
                           transfer of substantially all of the Company's assets
                           to another Company that is not a wholly owned Company
                           of the Company.

         The grant of this option shall not affect in any way the right or power
of the Company to make adjustments, reclassifications, reorganizations or
changes of its capital or business structure or to merge or to consolidate or to
dissolve, liquidate or sell, or transfer all or any part of its business or
assets.

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         4. Commencement Of Exercisability. This option may not be exercised in
whole or in part until one year has elapsed from the date of this Agreement.
Subject to the conditions stated herein, the right to exercise this option shall
accrue in installments as follows:

                  (i) During the period of 12 months beginning one year after
the date of this Agreement, this option may be exercised to the extent of 25% of
the shares subject to option;

                  (ii) During the period of 12 months beginning
________________, 2002, this option may be exercised to the extent of 25% of the
shares subject to option plus the shares as to which the right to exercise this
option has previously accrued but has not been exercised.

                  (iii) During the period of 12 months beginning
________________, 2003, this option may be exercised to the extent of 25% of the
shares subject to option plus the shares as to which the right to exercise this
option has previously accrued but has not been exercised.

                  (iv) During the period of 12 months beginning
________________, 2004, this option may be fully exercised to the extent that it
has not previously been exercised.

         No partial exercise of this option will be permitted for less than ten
shares.

         5. Termination Of Option. In the event of termination of the Employee's
employment for any reason other than death, this option shall immediately
terminate; provided, however, that if such cessation of employment is with the
consent of the Board of Directors, expressed in the form of a resolution, or is
pursuant to the Employee's retirement under the provisions of any pension,
profit sharing or other retirement plan of the Company then in effect, or is on
account of permanent illness or disability, this option may be exercised
(subject to the provisions of Paragraph 12 hereof) within three months after the
date the Employee ceases to be an employee of the Company, but only to the
extent that it was exercisable on the date of such cessation of employment.

         6. Persons Eligible To Exercise. This option shall be exercisable
during the Employee's lifetime only by the Employee and shall be nontransferable
by the Employee otherwise than by will or the laws of descent and distribution,
or by a beneficiary designation made in a form and manner acceptable to the
Committee.

         7. After The Death Of Employee. In the event of the Employee's death
while in the employ of the Company, or during a three-month period following
termination of employment during which the Employee is permitted to exercise
this option pursuant to Paragraph 5 hereof, this option may be exercised
(subject to the provisions of Paragraph 12 hereof) at any time within one year
after the Employee's death by the Employee's transferee to the same extent as
the Employee could have exercised the option immediately prior to the employee's
death. The Employee's

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transferee shall be the person or persons, designated by the Employee on a
Beneficiary Designation Form furnished by the Committee, provided, however, that
if at the time of the Employee's death, there is no effective Beneficiary
Designation Form on file with the Committee, the Employee's transferee shall be
deemed to be the executor or administrator of the employee's estate or any
person who shall have acquired the option from the Employee by the employee's
will or the applicable law of descent and distribution. Any such transferee
exercising this option must furnish the Company upon request of the Committee
(a) written notice of the Employee's status as transferee, (b) evidence
satisfactory to the Company to establish the validity of the transfer of the
option in compliance with any laws or regulations pertaining to said transfer,
and (c) written acceptance of the terms and conditions of the option as
prescribed in this Agreement.

         8. Exercise Of Option. This option may be exercised by the person then
entitled to do so as to any share which may then be purchased by giving written
notice of exercise to the Company, specifying the number of full shares to be
purchased and accompanied by full payment of the purchase price thereof and the
amount of any income tax the Company is required by law to withhold by reason of
such exercise.

         9. No Rights Of Stockholder. Neither the Employee nor any person
claiming under or through the Employee shall be or have any of the rights or
privileges of a stockholder of the Company in respect of any of the shares
issuable upon the exercise of the option, until the date of the receipt of
payment by the Company and the issuance of a stock certificate to the Employee
for such shares in accordance with the terms hereof.

         10. Addresses For Notices. Any notice to be given to the Company under
the terms of this Agreement shall be addressed to Circle International Group,
Inc., in care of its Corporate Secretary, at 260 Townsend Street, San Francisco,
California 94107, or at such other address as the Company may hereinafter
designate in writing. Any notice to be given to the Employee shall be addressed
to the address set forth beneath the Employee's signature hereto, or at any such
other address as the Employee may hereafter designate in writing.

         Any such notice shall be deemed to have been duly given if and when
enclosed in a properly sealed envelope, addressed as aforesaid, registered and
deposited, postage and registry fee prepaid, in a post office or branch post
office regularly maintained by the United States Government.

         11. Non-Transferability Of Option. Except as otherwise stated herein,
the option herein granted and the rights and privileges conferred hereby shall
not be transferred, assigned, pledged or hypothecated in any way (whether by
operation or law or otherwise) and shall not be subject to sale under execution,
attachment or similar process upon the rights and privileges conferred hereby.
Upon any attempt to transfer, assign, pledge or otherwise dispose of said

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option, or of any right or privilege conferred hereby, contrary to the
provisions hereof, or upon any attempted sale under any execution, attachment or
similar process upon the rights and privileges conferred hereby shall
immediately become null and void.

         12. Maximum Term Of Option. Notwithstanding any other provision of this
Agreement, this option is not exercisable after the expiration of ten years from
the date hereof.

         13. Binding Agreement. Subject to the limitations on transferability
contained herein, this Agreement shall be binding upon and inure to the benefit
of the heirs, legal representatives, successors and assigns of the parties
hereto.

         14. Suspension Of Exercisability. The rights awarded hereby are subject
to the requirement that, if at any time the Committee shall determine, in its
sole discretion, that the listing, registration or qualification of the shares
of Common Stock subject to such rights upon any securities exchange or under any
state or federal law, or the consent or approval of any government regulatory
body, is necessary or desirable as a condition, or in connection with, the
granting of such rights or the issue of shares in connection therewith, such
rights may not be exercised or paid in whole or in part unless such listing,
registration, qualification, consent or approval shall have been effected or
obtained free of any conditions not acceptable to the Committee.

         15. Arbitration. The parties hereto agree that any action relating to
this stock option agreement shall be instituted and processed in the courts in
San Francisco County, California, and each party waives the right to change of
venue. Further, the parties agree that any action relating to their agreement
shall be submitted to final and binding arbitration pursuant to the provisions
of the California Civil Code.

         16. Option Has No Effect On Employment. Nothing in this Agreement shall
be construed as giving the Employee the right to be retained as an Employee, as
impairing the rights of the Company to terminate the employee's service, or as
altering the at-will employment status of employee, as the case may be. The
Company shall have the right, which is expressly reserved, to terminate or
change the terms of the employment of the Employee at any time for any reason
whatsoever, with or without good cause.

         17. Payment Of Tax. Whenever shares of Common Stock are to be issued in
satisfaction of the rights conferred hereby, the Company shall have the right to
require the optionee to remit to the Company an amount sufficient to satisfy
federal, state and local withholding tax requirements prior to the delivery of
any certificate or certificates for such shares. Whenever payments are to be
made in cash, such payments shall be net of an amount sufficient to satisfy
federal, state and local withholding tax requirements.

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         18. Plan Governs. This Agreement is subject to all terms and provisions
of the Plan. In the event of a conflict between one or more provisions of this
Agreement and one or more provisions of the Plan, the provisions of the Plan
shall govern. Terms used in this Agreement that are not defined in this
Agreement shall have the meaning set forth in the Plan.

         19. Committee Authority. The Committee shall have the power to
interpret the Plan and this Agreement and to adopt such rules for the
administration, interpretation and application of the Plan as are consistent
therewith and to interpret or revoke any such rules. All actions taken and all
interpretations and determinations made by the Committee in good faith shall be
final and binding upon Employee, the Company and all other interested persons.
No member of the Committee shall be personally liable for any action,
determinations or interpretations made in good faith with respect to the Plan or
this Agreement.

         IN WITNESS HEREOF, the parties hereto have executed this Agreement, in
duplicate, the day and year first above written.

                                        CIRCLE INTERNATIONAL GROUP, INC.

                                        By
                                          ------------------------------

ACCEPTED:

--------------------------------
             Employee

--------------------------------
             Address

--------------------------------<PAGE>   1
                                                                     EXHIBIT 4.9

PRIVATE AND CONFIDENTIAL

                                   ----------

                                  RULES OF THE

                         CIRCLE INTERNATIONAL GROUP INC

                              SHARESAVE SCHEME 2000

                                   ----------

                         IR REF: SR52432/IDA

                                Deloitte & Touche
                                   Hill House
                               1 Little New Street
                                     London
                                    EC4A 3TR

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<TABLE>
<CAPTION>
                                    CONTENTS

RULE                                                                     PAGE
<S>                                                                      <C>
1               Definitions                                                 1
2               Application for options                                     5
3               Scaling down                                                6
4               Grant of options                                            7
5               Number of shares in respect of
                which options may be granted                                8
6               Rights of exercise and lapse of options                     9
7               Takeover, reconstructions and
                amalgamation and liquidation                               11
8               Manner of exercise                                         13
9               Issue of transfer of shares                                13
10              Adjustments                                                14
11              Administration                                             14
12              Alterations                                                15
13              General                                                    16
</TABLE>

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        RULES OF THE CIRCLE INTERNATIONAL GROUP INC SHARESAVE SCHEME 2000

1.   DEFINITIONS

     1.1     In this Scheme, the following words and expressions shall bear,
             unless the context otherwise requires, the meanings set out
             below:

     "APPROPRIATE PERIOD"     the meaning given by paragraph 15(2) of Schedule 9
                              to the Taxes Act;

     "ASSOCIATED COMPANY"     within the meaning of section 187(2) of
                              the Taxes Act;

     "THE BOARD"              the board of directors of the Company, or a
                              duly authorised committee appointed by the board
                              to administer the Plan;

     "BONUS DATE"             the date on which the bonus becomes payable
                              under the Sharesave Contract made in connection
                              with an Option being, in the case of a 3 year
                              contract, the date of completion of 36 monthly
                              contributions, in the case of a 5 year contract,
                              the date of completion of 60 monthly contributions
                              and, in the case of a 7 year contract, the second
                              anniversary of the date of completion of 60
                              monthly contributions;

     "BUSINESS DAY"           any day on which the London (or New York as
                              appropriate) Stock Exchange is open for the
                              transaction of business;

     "CLOSE COMPANY"          a close company as defined in section
                              414(1) of the Taxes Act as varied by Paragraph 8
                              of Schedule 9 to the Taxes Act;

     "THE COMPANY"            Circle International Group Inc a
                              corporation registered in Delaware, USA;

     "CONTROL"                within the meaning of section 840 of the Taxes
                              Act;

     "DATE OF GRANT"          the date on which the Option Committee
                              resolves to grant an Option;

     "DATE OF INVITATION"     the date on which the Option
                              Committee invites applications for Options;

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    "ELIGIBLE EMPLOYEE"    any individual who:

                           (a) (i)      is a full time director who works at
                                        least 25 hours a week (excluding meal
                                        breaks) or is an employee of one or more
                                        Participating Companies; and

                               (ii)     has such qualifying period (if any)
                                        of continuous service (being a period
                                        commencing not earlier than two years
                                        prior to the Date of Grant) as the
                                        Option Committee may determine; and

                               (iii)    is subject to income tax under
                                        Case 1 of Schedule E as defined in the
                                        Taxes Act; or

                           (b) is a full time director who works at least 25
                               hours a week (excluding meal breaks) or an
                               employee and is nominated by the Option Committee
                               either individually or as a member of a category
                               of such full time directors or employees;

    "EMPLOYEES' SHARE      the meaning given by s743 of the Companies Act 1985;
    SCHEMES"

    "EXERCISE PRICE"       the amount payable in relation to the exercise of an
                           Option, whether in whole or in part, being an amount
                           equal to the relevant Option Price multiplied by the
                           number of Shares in respect of which the Option is
                           exercised;

    "MARKET VALUE"         in relation to a Share on any day:

                           i)  where shares of the same class are not admitted
                               to the Official List of the London or New York
                               Stock Exchange, its market value as determined in
                               accordance with Part VIII of the Taxation of
                               Chargeable Gains Act 1992 and agreed in advance
                               with the Shares Valuation Division of the Inland
                               Revenue. For the avoidance of doubt, the market
                               value of shares of the same class listed on the
                               NASDAQ Stock Market shall be calculated in this
                               way; and

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<PAGE>   5
                          (ii)  where shares of the same class are so listed,
                                its middle market quotation (as derived from the
                                Daily Official List of the London or New York
                                Stock Exchange) for the immediately preceding
                                Business Day or, if the Board so determines, the
                                average of the middle market quotations over the
                                3 immediately preceding Business Days or such
                                other price as agreed in advance with the Shares
                                Valuation Division of the Inland Revenue.

"MATERIAL INTEREST"       the meaning given by section 187(3) of the Taxes Act;

"MAXIMUM CONTRIBUTION"    the lesser of:

                          (a)   such maximum monthly contribution as may be
                                permitted pursuant to paragraph 24 of Schedule 9
                                to the Taxes Act; or

                          (b)   such maximum monthly contribution as may be
                                determined from time to time by the Option
                                Committee;

"MEMBER OF A CONSORTIUM"   the meaning given by section 187(7) of the Taxes Act;

"MONTHLY CONTRIBUTIONS"    monthly contributions agreed to be paid by a
                           Participant under the Sharesave Contract made in
                           connection with his Option;

"OPTION"                   a right to acquire Shares under the Scheme which is
                           either subsisting or (where the context so admits or
                           requires) is proposed to be granted;

"OPTION COMMITTEE"         a Committee duly appointed by the Board which where
                           comprising directors shall only include directors who
                           do not hold any executive office with the Company or
                           any of its subsidiaries or who will not themselves
                           participate in the Scheme;

"OPTION PRICE"             the price per Share, as determined by the Board, at
                           which an Eligible Employee may acquire Shares upon
                           the exercise of an Option being not less than:

                           (a)  85 per cent of the Market Value of the Shares;
                                and

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<PAGE>   6

                           (b)     if the Shares are to be subscribed, their
                                   nominal value,

                           but subject to any adjustment pursuant to Rule 10;

"PARTICIPANT"              an executive director or employee, or former director
                           or employee, to whom an Option has been granted or
                           (where the context so admits or requires) the
                           personal representatives of any such person;

"PARTICIPATING COMPANY"    (a)     the Company; and

                           (b)     any other company which is under the Control
                                   of the Company, is a Subsidiary of the
                                   Company and is for the time being designated
                                   by the Board as a Participating Company;

"REPAYMENT"                in relation to a Sharesave Contract, the aggregate of
                           the Monthly Contributions which the Participant has
                           made and any bonus due at the Bonus Date;

"SHARESAVE CONTRACT"       a contract under a certified contractual savings
                           scheme (within the meaning of section 326 of the
                           Taxes Act) approved by the Inland Revenue for the
                           purpose of Schedule 9 to the Taxes Act;

"THE SCHEME"               the Circle International Group Inc Sharesave
                           Scheme in its present form or as from time to
                           time amended in accordance with its provisions;

"SHARE"                    a fully paid ordinary share in the capital of
                           the Company which satisfies the conditions
                           specified in paragraphs 10 to 14 (inclusive) of
                           Schedule 9 to the Taxes Act;

"SPECIFIED AGE"            60 years of age;

"SUBSIDIARY"               the meaning given by sections 736 and 736A of
                           the Companies Act 1985;

"TAXES ACT"                the Income and Corporation Taxes Act 1988.

1.2    In the Scheme where the context so admits or requires the singular
       includes the plural and the masculine includes the feminine and vice
       versa; references to any statutory provisions shall include any
       modification or re-enactment.

                                                                               4
<PAGE>   7

        1.3     Headings shall be ignored in construing these Rules.

 2.     APPLICATION FOR OPTIONS

        2.1     The Option Committee may invite applications for Options from
                Eligible Employees. Invitations shall only be made within 42
                days commencing on any of the following:

                2.1.1   the day on which the Scheme is formally approved by
                        the Inland Revenue;

                2.1.2   the day immediately following the day on which the
                        Company makes an announcement of its results for the
                        last preceding financial year, half year or other
                        period;

                2.1.3   any day on which the Board resolves that exceptional
                        circumstances exist which justify the making of
                        invitations;

                2.1.4   any day on which changes to the legislation or
                        regulations affecting sharesave schemes approved by the
                        Inland Revenue are announced, effected or made;

                2.1.5   any day on which a new Sharesave Contract prospectus is
                        announced or takes effect.

                If the grant of any Option is prevented by statute, order,
                regulation, or government directive, or by any code adopted by
                the Company based on the London Stock Exchange's model code for
                securities transactions by directors of listed companies, then
                the Option Committee may make invitations within the period of
                42 days after the lifting of such restrictions.

        2.2     Any invitation to apply for Options shall be in writing and
                shall include details of:

                (a)     eligibility;

                (b)     the Option Price or the mechanism by which the Option
                        Price will be notified to Eligible Employees (which for
                        the avoidance of doubt, may be different in respect of
                        3, 5 and/or 7 year Sharesave Contracts);

                (c)     the Maximum Contribution payable;

                (d)     whether the Eligible Employees may elect for a 3,
                        5 or 7 year Sharesave Contract;

                (e)     the date by which applications made pursuant to Rule 2.3
                        must be received (being neither earlier than 14 days nor
                        later than 25 days after the Date of Invitation),

                                                                               5
<PAGE>   8

                and the Option Committee may determine and include in the
                invitations details of the maximum number of Shares over which
                applications for Options are to be invited.

        2.3     Applications for Options must incorporate or be accompanied by a
                proposal for a Sharesave Contract. If application is made for
                more than 1 Option, each Option must incorporate or be
                accompanied by a proposal for a Sharesave Contract.

        2.4     An application for an Option shall be in writing in such form as
                the Option Committee may from time to time prescribe save that
                it shall provide for the applicant to state:

                (a)     the Monthly Contributions (being a multiple of (pound)1
                        and not less than (pound)5) which he wishes to make
                        under the Sharesave Contract to be made in connection
                        with the Option for which application is made;

                (b)     that his proposed Monthly Contributions (when taken
                        together with any monthly contributions he makes
                        under any other Sharesave Contract) will not exceed
                        the Maximum Contribution;

                (c)     if Eligible Employees may elect for a 3, 5 or 7 years
                        Sharesave Contract, his election in that respect.

        2.5     Each application for an Option shall provide that, in the event
                of excess applications, each application shall be deemed to have
                been modified or withdrawn in accordance with the steps taken by
                the Option Committee to scale down applications pursuant to Rule
                3.

        2.6     Proposals for a Sharesave Contract shall be limited to such
                building society or bank as the Option Committee may designate.

        2.7     Each application shall be deemed to be for an Option over the
                largest whole number of Shares which can be acquired at the
                Option Price with the Repayment under the Sharesave Contract
                entered into in connection with the Option.

        2.8     Eligible Employees may apply for more than one Option in
                response to any invitation. However, where an Eligible Employee
                applies for more than one Option, he shall be deemed for the
                purposes of Rule 3 to have applied for a single Option.

 3.     SCALING DOWN

        3.1     If valid applications are received for a total number of Shares
                in excess of any maximum number of Shares determined by the
                Option Committee pursuant to Rule 2.2, or any limitation under
                Rule 5, the Option Committee shall scale down applications by
                taking, at its absolute discretion, any of the following steps
                until the number of Shares available equals or exceeds such
                total number of Shares applied for:

                                                                               6
<PAGE>   9

          (a)  by treating any elections for the maximum bonus (being that bonus
               receivable if savings are made under a 7 year contract) as
               elections for the standard bonus (being that bonus receivable if
               savings are made under a 5 year contract) and then, so far as
               necessary, by reducing the proposed Monthly Contributions
               pro-rata to the excess over such amount as the Board shall
               determine for this purpose being not less than (pound)5 and then,
               so far as necessary selecting by lot; or

          (b)  by treating each election for a bonus as an election for no bonus
               and then, so far as necessary, by reducing the proposed Monthly
               Contributions pro rata to the excess over such amount as the
               Board shall determine for this purpose being not less than
               (pound)5 and then, so far as necessary, selecting by lot; or

          (c)  by reducing the proposed Monthly Contributions pro rata to the
               excess over such amount as the Board shall determine for this
               purpose being not less than (pound)5 and then, so far as
               necessary, selecting by lot.

     3.2  If the number of Shares available is insufficient to enable an Option
          based on Monthly Contributions of (pound)5 a month to be granted to
          each Eligible Employee making a valid application, the Option
          Committee may, as an alternative to selecting by lot, determine in its
          absolute discretion that no Options shall be granted.

     3.3  If the Option Committee so determines, the provisions in Rule 3.1(a),
          (b) and (c) may be modified or applied in any manner as may be agreed
          in advance with the Inland Revenue.

     3.4  If in applying the scaling down provisions contained in this Rule 3,
          Options cannot be granted within the 30 day period referred to in Rule
          4.2 below, the Option Committee may extend that period by twelve days
          regardless of the expiry of the relevant period set out in Rule 2.1.

4.   GRANT OF OPTIONS

     4.1  No Option shall be granted to any person if:

          (a)  at the Date of Grant that person shall have ceased to be an
               Eligible Employee; or

          (b)  that person has, or has had at any time within the twelve month
               period preceding the Date of Grant, a Material Interest in the
               issued ordinary share capital of a Close Company which is the
               Company or a company which has Control of the Company or is a
               Member of a Consortium which owns the Company.

                                                                               7

<PAGE>   10

     4.2  Within 30 days of the day (or the first day) by reference to which the
          Option Price was calculated if the shares are listed on the Official
          List of the London Stock Exchange or, if the Shares are not so listed,
          the date agreement is reached with the Inland Revenue as to the Market
          Value of a Share, the Option Committee may, subject to Rule 3 above,
          grant to each Eligible Employee who has submitted a valid application,
          an Option in respect of the number of Shares for which application has
          been deemed to be made under Rule 2.7. The grant of such Options
          should occur within the 42 day period in Rule 2.1.

     4.3  The Company shall issue to each Participant an option certificate in
          such form (not inconsistent with the provisions of the Scheme) as the
          Option Committee may from time to time prescribe. Each such
          certificate shall specify the Date of Grant of the Option, the class
          of Shares over which the Option is granted, the Option Price and the
          Bonus Date.

     4.4  Except as otherwise provided in these Rules, every Option shall be
          personal to the Participant to whom it is granted and shall not be
          transferable.

     4.5  No amount shall be paid in respect of the grant of an Option.

5.   NUMBER OF SHARES IN RESPECT OF WHICH OPTIONS MAY BE GRANTED

     5.1  INDIVIDUAL LIMITS

          No Eligible Employee shall be granted an Option to the extent it would
          at the proposed Date of Grant cause the aggregate amount of his
          contributions under all Sharesave Contracts to exceed the lesser of:

          5.1.1 a Monthly Contribution of (pound)250; and

          5.1.2 the maximum Monthly Contribution specified by the Board.

     5.2  SCHEME LIMITS

          5.2.1 The number of Shares which may be allocated under the Scheme on
                any day shall not, when added to the aggregate of the number of
                Shares which have been allocated in the previous 10 years under
                the Scheme and any other Employees' Share Scheme adopted by the
                Company, exceed such number as represents 10 per cent of the
                ordinary share capital of the Company in issue immediately prior
                to that day.

          5.2.2 In determining the above limits no account shall be taken of any
                Shares where the right to acquire such Shares was released or
                lapsed without being exercised or the right to acquire Shares
                was granted on or before the Company was admitted to the
                official list of the London Stock Exchange.

                                                                               8

<PAGE>   11

          5.2.3 References in this Rule to the "allocation" of Shares mean, in
                the case of any share option scheme, the placing of unissued
                shares under option and, in relation to other types of
                Employees' Share Scheme, the issue and allotment of shares.

6.   RIGHTS OF EXERCISE AND LAPSE OF OPTIONS

     6.1  (a)  Save as provided in Rules 6.2, 6.3, 6.4 and Rule 7, an Option
               shall not be exercised earlier than the Bonus Date under the
               Sharesave Contract entered into in connection with the Option.

          (b)  Save as provided in Rule 6.2, an Option shall not be exercised
               later than six months after the Bonus Date under the Sharesave
               Contract entered into in connection with the Option.

          (c)  Save as provided in Rules 6.2 and 6.3, an Option may only be
               exercised by a Participant whilst he is a director or employee of
               a Participating Company.

          (d)  An Option may not be exercised by a Participant if he has, or has
               had at any time within the twelve month period preceding the date
               of exercise, a Material Interest in the issued ordinarily share
               capital of a Close Company which is the Company or a company
               which has Control of the Company or is a Member of a Consortium
               which owns the Company, nor may an Option be exercised by the
               personal representatives of a deceased Participant if the
               Participant had such a Material Interest at the date of his
               death.

          (e)  An Option may be exercised in part only, however, if such partial
               exercise occurs the unexercised part shall lapse at the date of
               exercise.

     6.2  An Option may be exercised by the personal representatives of a
          deceased Participant to the extent of the Repayments due under the
          Sharesave Contract at the date of death:

          (a)  within twelve months following the date of his death if such
               death occurs before the Bonus Date;

          (b)  within twelve months following the Bonus Date in the event of his
               death within six months after the Bonus Date.

     6.3  An Option may, to the extent of the Repayment due under the Sharesave
          Contract at the date of cessation, be exercised by a Participant
          within six months following his ceasing to hold the office or
          employment by virtue of which he is eligible to participate in the
          Scheme by reason of:

          (a)  injury, disability, redundancy within the meaning of the
               Employment Rights Act 1996 or retirement on reaching the
               Specified Age or any other age at which he is bound to retire in
               accordance with the terms of his contract of employment; or

                                                                               9

<PAGE>   12

          (b)  his office or employment being in a company of which the Company
               ceases to have Control; or

          (c)  the transfer of his contract of employment (which relates to a
               business or part of a business) to a person who is neither an
               Associated Company nor a company of which the Company has
               Control; or

          (d)  retirement at any age at which he is entitled to retire in
               accordance with the terms of his contract of employment (other
               than at the Specified Age or any age at which he is bound to
               retire), early retirement with the agreement of the employer, or
               pregnancy, but in each case only if such cessation of office or
               employment is more than three years after the Date of Grant.

          For the purposes of the Scheme, a woman who leaves employment due to
          pregnancy will be regarded as having left the employment on the day on
          which she indicates that she does not intend to return to work. In the
          absence of such indication she will be regarded as having left
          employment on the last day on which she is entitled to return to work
          under the Employment Rights Act 1996 or if later, any other date
          specified in the terms of her employment.

     6.4  An Option may, to the extent of the Repayment due under the Sharesave
          Contract at the date of reaching the Specified Age, be exercised by a
          Participant within six months following the date he reaches the
          Specified Age if he continues after that date to hold the office or
          employment by virtue of which he is eligible to participate in the
          Scheme.

     6.5  No person shall be treated for the purposes of Rule 6.3 as ceasing to
          hold an office or employment by virtue of which that person is
          eligible to participate in the Scheme until that person ceases to hold
          any office or employment in the Company or any Associated Company or
          any company of which the company has Control.

     6.6  An Option granted to a Participant shall lapse upon the occurrence of
          the earliest of the following:

          (a)  subject to (b) below, six months after the Bonus Date under the
               Sharesave Contract entered into in connection with the Option;

          (b)  where the Participant dies before the Bonus Date, twelve months
               after the date of death, and where the Participant dies in the
               period of six months after the Bonus Date, twelve after the Bonus
               Date;

          (c)  the expiry of any of the six month periods specified in Rule 6.3
               (a) to (d), save that if at the time any of such applicable
               periods expire, time is running under the twelve month periods
               specified in Rule 6.2, the Option shall not lapse by reason of
               this rule 6.6 until the expiry of the relevant twelve month
               period in Rule 6.2;

                                                                              10

<PAGE>   13

          (d)  the expiry of any of the period specified in Rules 7.3 to 7.5,
               save where an Option is released in consideration of the grant of
               a New Option over New Shares in the Acquiring Company (during one
               of the periods specified in Rules 7.3 and 7.4) pursuant to Rule
               7.6;

          (e)  the Participant ceasing to hold any office or employment with a
               Participating Company or any Associated Company or any company of
               which the company has control howsoever that cessation occurs
               whether lawful or unlawful for any reason other than those
               specified in Rule 6.3 or as a result of his death;

          (f)  subject to Rule 7.5, the passing of an effective resolution, or
               the making of an order by the court, for the winding-up of the
               Company;

          (g)  the Participant being deprived (otherwise than on death) of the
               legal or beneficial ownership of the Option by operation of law,
               or doing anything or omitting to do anything which causes him to
               be so deprived or become bankrupt; and

          (h)  before an Option has become capable of being exercised, the
               Participant giving notice that he intends to stop paying Monthly
               Contributions, or being deemed under the terms of the Sharesave
               Contract to have given such notice by making an application for
               Repayment of the Monthly Contributions.

7.   TAKEOVER, RECONSTRUCTIONS AND AMALGAMATION, AND LIQUIDATION

     7.1  If any person obtains Control of the Company as a result of making an
          offer to acquire Shares which is either unconditional or is made on a
          condition such that if it is satisfied the person making the offer
          will have Control of the Company, Option may be exercised within six
          months of the time when the person making the offer has obtained
          Control of the Company and any condition subject to which the offer is
          made has been satisfied or waived.

     7.2  For the purpose of Rule 7.1 a person shall be deemed to have obtained
          Control of the Company if he and others acting in concert with him
          have together obtained Control of it.

     7.3  If any person becomes bound or entitled to acquire Shares under
          sections 428 to 430F of the Companies Act 1985 an Option may be
          exercised at any time when that person remains so bound or entitled.

     7.4  If, under section 425 of the Companies Act 1985 the court sanctions a
          compromise or arrangement proposed for the purposes of, or in
          connection with, a scheme for the reconstruction of the Company or its
          amalgamation with any other company or companies, an Option may be
          exercised within six months of the court sanctioning the compromise or
          arrangement.

                                                                              11

<PAGE>   14

     7.5  If a resolution for the voluntary winding-up of the Company is passed,
          an Option may be exercised within two months from the date of the
          passing of the resolution.

     7.6  If any company ('the Acquiring Company'):

          (a)  obtains Control of the Company as a result of making:

               (i)  a general offer to acquire the whole of the issued ordinary
                    share capital of the Company which is made on a condition
                    such that if it is satisfied the Acquiring Company will have
                    Control of the Company; or

               (ii) a general offer to acquire all the shares in the Company
                    which are of the same class as the Shares which may be
                    acquired by the exercise of Options,

               in either case ignoring any Shares which are already owned by it
               or a member of the same group of companies; or

          (b)  obtains control of the Company in pursuance of a compromise or
               arrangement sanctioned by the court under section 425 of the
               Companies Action 1985; or

          (c)  becomes bound or entitled to acquire shares under sections 428 to
               430F of the Companies Act 1985,

          any Participant may at any time within the Appropriate Period, by
          agreement with the Acquiring Company, release any Option which has not
          lapsed ("the Old Option") in consideration of the grant to him of an
          option ("the New Option") which (for the purposes of paragraph 15 of
          Schedule 9 to the Taxes Act) is equivalent to the Old Option but
          relates to shares in a different company (whether the Acquiring
          Company itself or some other company falling within paragraph 10(b) or
          (c) of Schedule 9 to the Taxes Act).

     7.7  The New Option shall not be regarded for the purposes of Rule 7.6 as
          equivalent to the Old Option unless the conditions set out in
          paragraph 15(3) of Schedule 9 to the Taxes Act are satisfied, but so
          that the provisions of the Scheme shall be construed as if:

          (a)  the New Option were granted under the Scheme at the same time as
               the Old Option;

          (b)  except for the purposes of the definitions of "Participating
               Company" and "Subsidiary" in Rule 1, the reference to Circle
               International Group Inc in the definition of "the Company" in
               Rule 1 were a reference to the different company mentioned in
               Rule 7.6;

                                                                              12

<PAGE>   15

          (c)  Rules 12.1 and 12.2 were omitted.

8.   MANNER OF EXERCISE

     8.1  An Option may only be exercised during the periods specified in Rules
          6 and 7, and only with monies not exceeding the amount of the
          Repayment under the Sharesave Contract entered into in connection
          therewith as at the date of such exercise. For this purpose, no
          account shall be taken of such part (if any) of the Repayment of any
          Monthly Contribution, the due date for the repayment of which under
          the Sharesave Contract arises after the date of the Repayment.

     8.2  Exercise shall be by the delivery to the Secretary of the Company or
          its duly appointed agent, of an option certificate covering the Shares
          over which the Option is to be exercised, with the notice of exercise
          in the prescribed form duly completed and signed by the Participant
          (or by his duly authorised agent) together with any remittance for the
          Exercise Price payable, or authority to the Company to withdraw and
          apply monies equal to the Exercise Price payable, or authority to the
          Company to withdraw and apply monies equal to the Exercise Price from
          the Sharesave Contract, to acquire the Shares over which the Option is
          to be exercised. The effective date of exercise shall be the date of
          delivery of the notice of exercise.

9.   ISSUE OR TRANSFER OF SHARES

     9.1  Shares to be issued pursuant to the exercise of an Option shall be
          allotted within 28 days following the effective date of exercise of
          the Option.

     9.2  The Board shall procure the transfer of Shares to be transferred
          pursuant to the exercise of an Option within 28 days following the
          effective date of exercise of the Option.

     9.3  Shares to be issued pursuant to the Scheme will rank pari passu in all
          respects with the Shares then in issue, except that they will not rank
          for any rights attaching to shares by reference to a record date
          preceding the date of exercise.

     9.4  Shares to be transferred pursuant to the Scheme will be transferred
          free of all liens, charges and encumbrances and together with all
          rights attaching thereto, except they will not rank for any rights
          attaching to Shares by reference to a record date preceding the date
          of exercise.

     9.5  If, and so long as, the Shares are listed on the London Stock
          Exchange, the Company shall apply for a listing for any Shares issued
          pursuant to the Scheme as soon as practicable after the allotment
          thereof.

                                                                              13

<PAGE>   16

10.  ADJUSTMENTS

     10.1 The number of Shares over which an Option is granted and the Option
          Price thereof shall be adjusted in such manner as the Option Committee
          shall determine following any capitalisation issue, rights issue,
          subdivision, consolidation or reduction of share capital of the
          Company or any other variation of share capital to the intent that (as
          nearly as many be without involving fractions of a Share or an Option
          Price calculated to more than two decimal places) the Exercise Price
          payable in respect of an Option shall remain unchanged, provided that
          no adjustment made pursuant to this Rule 10.1 shall be made without
          the prior approval of the Inland Revenue).

     10.2 Subject to Rule 10.3, an adjustment may be made under Rule 10.1 which
          would have the effect of reducing the Option Price of unissued Shares
          to less than the nominal value of a Share, but only if, and to the
          extent that, the Board shall be authorised to capitalise from the
          reserves of the Company a sum equal to the amount by which the nominal
          value of the Shares in respect of which the Option is exercisable
          exceeds the adjusted Exercise Price, and so that on exercise of any
          Option in respect of which the Option Price has been reduced, the
          Option Committee shall capitalise and apply such sum (if any) as is
          necessary to pay up the amount by which the aggregate nominal value of
          the Shares in respect of which the Option is exercised exceeds the
          Exercise Price for such Shares.

     10.3 Where an Option subsists over both issued and unissued Shares, an
          adjustment permitted by Rules 10.2 may only be made if the reduction
          of the Option Price of both the issued and unissued Shares can be made
          to the same extent.

     10.4 The Option Committee may take such steps as it may consider necessary
          to notify Participants of any adjustments made under this Rule 10 and
          to call in, cancel, endorse, issue or reissue an Option certificate
          consequent upon such adjustment.

11.  ADMINISTRATION

     11.1 Any notice or other communication made under, or in connection with,
          the Scheme may be given by personal delivery or by sending the same by
          post, in the case of a company to its registered office and in the
          case of an individual to his last known address, or, where he is a
          director or employee of the Company or an Associated Company, either
          to his last known address or to the address of the place of business
          at which he performs the whole or substantially the whole of the
          duties of his office or employment, and where a notice or other
          communication is given by first-class post, it shall be deemed to have
          been received 48 hours after it was put into the post properly
          addressed and stamped.

     11.2 The Company may distribute to Participants copies of any notice or
          document normally sent by the Company to the holders of Shares.

                                                                              14

<PAGE>   17

     11.3 If any option certificate shall be worn out, defaced or lost, it may
          be replaced on such evidence being provided as the Board may require.

     11.4 The Company shall at all times keep available for allotment unissued
          Shares at least sufficient to satisfy all Options under which Shares
          may be subscribed or procure that sufficient Shares are available
          for transfer to satisfy all Options under which Shares may be
          acquired.

     11.5 The decision of the Option Committee in any dispute relating to an
          Option or the due exercise thereof or any other matter in respect of
          the Scheme shall be final and conclusive.

     11.6 The costs of introducing and administering the Scheme shall be borne
          by the Company.

12.  ALTERATIONS

     12.1 Subject to the provisions of this Rule 12, the Option Committee may at
          any time alter or add to all or any of the provisions of the Scheme in
          any respect except that no such alteration or addition shall take
          effect until approved by the Inland Revenue.

     12.2 No alteration or addition to the advantage of present or future Option
          Holders shall be made without prior approval by ordinary resolution of
          the members of the Company in general meeting to any of the provisions
          of the Scheme as related to:

          (i)    the persons to whom Options may be granted;

          (ii)   limitations on the grant of Options;

          (iii)  the determination of the price at which Shares may be acquired
                 by the exercise of Options;

          (iv)   the adjustment of Options;

          (v)    the restrictions on the exercise of Options;

          (vi)   the rights to be attached upon their issue to Shares issued
                 upon the exercise of Options;

          (vii)  the rights of Participants on the winding up of the company;

          (viii) the transferability of Options; and

          (ix)   the terms of this Rule 12.

                                                                              15

<PAGE>   18

     12.3 Shareholder approval shall not be required for any alteration or
          addition which is necessary or desirable in order to:

          (i)    obtain or maintain Inland Revenue approval of the Scheme under
                 Schedule 9 to the Taxes Act or any other enactment; or

          (ii)   comply with or take account of the provisions of any proposes
                 or existing legislation, or to take advantage of any changes to
                 the legislation; or

          (iii)  obtain or maintain favourable taxation treatment of the
                 Company, and Subsidiary or any Option Holder.

     This exception does not apply to any alteration or addition to the
     definition of "Option Price" and the limits in Rule 5.

13.  GENERAL

     13.1 The Scheme shall terminate upon the tenth anniversary of its adoption
          by the Company in general meeting or at any earlier time by the
          passing of a resolution by the Board or an ordinary resolution of the
          Company in general meeting. Termination of the Scheme shall be without
          prejudice to the subsisting rights of Participants.

     13.2 The Company and any Subsidiary of the Company may provide money to the
          trustees of any trust or any other person to enable them or him to
          acquire Shares to be held for the purposes of the Scheme, or enter
          into any guarantee or indemnity for these purposes, to the extent
          permitted by section 153 of the Companies Act 1985, provided that any
          trust deed to be made for this purpose shall, at a time when the
          Scheme is approved by the Inland Revenue under Schedule 9 to the Taxes
          Act, have previously been submitted to the Inland Revenue.

     13.3 The rights and obligations of any individual under the terms of his
          office or employment with the Company, a Participating Company, a
          Subsidiary of the Company, or an Associated Company shall not be
          affected by his participation in the Scheme or any right which he may
          have to participate therein, and an individual who participates
          therein shall waive all and any rights to compensation or damages in
          consequence of the termination of his office or employment with any
          such company for any reason whatsoever insofar as those rights arise,
          or may arise, from his ceasing to have rights under or be entitled to
          exercise any Option under the Scheme as a result of such termination,
          or from the loss or diminution in value of such rights or
          entitlements.

                                                                              16

<PAGE>   19

     13.4 Notwithstanding any other provision of the Scheme the Board may amend
          or add to the provisions of the Scheme and the terms of Options as
          they consider necessary or desirable to take account of or to mitigate
          or to comply with relevant overseas taxation, securities or exchange
          control laws provided that the terms of Options granted under this
          Scheme are not more favourable than the terms of options granted to
          other Eligible Employees.

     13.5 These Rules shall be governed by and construed in accordance with
          English law.

                                                                              17

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