Document:

<PAGE>

                                                                   EXHIBIT 10.35

                               UTi WORLDWIDE INC.

                              AMENDED AND RESTATED
                2004 NON-EMPLOYEE DIRECTORS SHARE INCENTIVE PLAN

                                   ----------

                             COMBINED ELECTIVE GRANT

                                       AND

                           DEFERRAL ELECTION AGREEMENT

                   (FOR USE PURSUANT TO SECTION 6 OF THE PLAN)

                                   ----------

     AGREEMENT, made this __ day of ________, 20__, by and between me, as a
participant in the UTi Worldwide Inc. Amended and Restated 2004 Non-Employee
Directors Share Incentive Plan (the "Plan"), and UTi Worldwide Inc. (the
"Company").

1.   QUARTERLY COMPENSATION

     (a)  I hereby elect to receive ______% of my Quarterly Compensation in
          Shares, as permitted by Section 6 of the Plan.

     (b)  I understand and acknowledge that this election to receive Shares in
          lieu of Quarterly Compensation (a "Share Election") will take effect
          on the first day of the next fiscal quarter after the date of this
          election. This Share Election will supersede any prior Share Election
          that I have made.

     (c)  I understand and acknowledge that any Share Election for which I have
          made an irrevocable Deferral Election (as defined below) with respect
          to the same portion of Quarterly Compensation will be ineffective.

     (d)  I understand and acknowledge that this Share Election will continue in
          full force until either the effective date of a superseding written
          Share Election made by me, or until I am no longer a director of the
          Company, or until the Plan is terminated by appropriate corporate
          action, whichever shall occur first.

2.   DEFERRAL OF QUARTERLY COMPENSATION

     (a)  Deferral Election. I hereby elect to defer the receipt of ______% of
          my Quarterly Compensation that would otherwise be due to me pursuant
          to Sections 6(e) and 7(a) of the Plan. I recognize and agree that the
          Company will establish an Account for me under the Plan, and will
          credit that Account in accordance with Section 7 of the Plan with the
          number of Deferred Share Units obtained when (i) my Quarterly
          Compensation earned during the fiscal quarter subject to this Deferral
          Election is divided by (ii) the Fair Market Value on the last day of
          the fiscal quarter for which compensation has been deferred.

<PAGE>

UTi Worldwide Inc.
Amended and Restated 2004 Non-Employee Directors Share Incentive Plan
Combined Elective Grant and Deferral Election Agreement
Page 2

     (b)  Revocability of Elections.

          (i)  Effect of Elections. I understand and acknowledge that the
               election made in paragraph 2(a) hereof (the "Deferral Election")
               shall be irrevocable with respect to compensation subject to this
               Deferral Election, and that it shall continue in full force until
               either the effective date of a superseding written Deferral
               Election made by me, or until my role as a director of the
               Company is terminated, or until the Plan is terminated by
               appropriate corporate action, whichever shall occur first. I
               further understand and acknowledge that the distribution election
               made in paragraphs 2(e) and 2(f) hereof shall be effective
               immediately with respect to compensation subject to this Deferral
               Election and that I may change such distribution election under
               paragraph 2(e) only in accordance with paragraph 2(b)(ii) below.
               My elections in paragraphs 2(g) and 2(h) shall be revocable until
               my death, at which time they become irrevocable.

          (ii) Changing of Elections. I recognize that I may, by submitting an
               effective superseding election, at any time and from time to time
               file new elections under paragraph (2)(e) hereof. I understand
               and acknowledge that a superceding election under paragraph
               (2)(e) shall be effective on the first day of the thirteenth
               (13th) month after I make such superseding election only if:

               (1)  I make such election at least one (1) year before the date
                    that the Shares would have been distributed (or begun to be
                    distributed) to me pursuant to my initial election pursuant
                    to paragraph 2(e) and

               (2)  Such election defers my receipt of Shares for at least five
                    (5) years from the date that the Shares would have been
                    distributed (or begun to be distributed) to me pursuant to
                    my initial election pursuant to paragraph 2(e).

     (c)  Effective Date of Election. I understand and acknowledge that this
          Deferral Election will take effect on the next January 1st after the
          date of this Deferral Election, and will be ineffective with respect
          to any Quarterly Compensation earned after the date of this Deferral
          Election but prior to such date. This Deferral Election will supersede
          any prior Deferral Election made by me. Notwithstanding the foregoing,
          I understand that this Deferral Election will be effective immediately
          for this calendar year only with respect to Quarterly Compensation
          that is earned by me in future fiscal quarters if I have recently
          become an Eligible Director, so long as I sign and deliver this
          Deferral Election to the Company within thirty (30) days after the
          date that I became an Eligible Director.

     (d)  Nature of Distribution. I recognize that distributions in respect of
          my Account will be made (i) in the form of one Share for each Deferred
          Share Unit credited to my

                                       2

<PAGE>

UTi Worldwide Inc.
Amended and Restated 2004 Non-Employee Directors Share Incentive Plan
Combined Elective Grant and Deferral Election Agreement
Page 3

          Account by virtue of this Deferral Election, and (ii) a cash payment
          with respect to each Share that I receive pursuant to paragraph
          2(d)(i) hereof in an amount equal to the cash dividends declared and
          paid on the Company's outstanding Shares between the date the Deferred
          Share Unit in respect of such Share was credited to my Account and the
          issuance of the Shares to me. Cash shall also be paid in lieu of
          fractional Shares.

     (e)  Manner of Distributions Upon Cessation of My Continuous Service. I
          hereby elect to commence receiving distributions from my Account
          following the date that my membership on the board terminates (such
          date being the cessation of my "Continuous Service") in the following
          manner:

               [ ]  three (3) substantially equal installment distributions to
                    be made before the last day of each of the three (3)
                    calendar years following the cessation of my Continuous
                    Service.

               [ ]  a lump sum distribution of ______ Shares as soon as
                    practicable following the cessation of my Continuous Service
                    and, with respect to the remaining Shares, in ____
                    substantially equal annual installments (not to exceed ten
                    (10)) on each January 1 following such distribution until
                    such Shares are distributed.

     (f)  Manner of Distributions Upon A Change in Control. I hereby elect to
          commence receiving distributions from my Account in the event of a
          Change in Control that is a permissible distribution event under Code
          Section 409A(a)(2)(A)(v) (as certified by the Board) in the following
          manner:

               [ ]  a lump sum distribution to be made as soon as
                    administratively practicable after the Change in Control.

               [ ]  a lump sum distribution of ______ Shares as soon as
                    practicable following the cessation of my Continuous
                    Service, and, with respect to the remaining Shares, in ____
                    substantially equal annual installments (not to exceed 10)
                    on each January 1st following such distribution until such
                    Shares are distributed.

     (g)  Form of Payment to Beneficiary. In the event of my death before
          collecting all of my Account, any remaining portion of my Account
          shall be distributed to my beneficiary or beneficiaries named below in
          the following manner--

               [ ]  in a single lump sum to be distributed as soon as
                    administratively practicable following my death.

               [ ]  in accordance with the payment schedule selected in
                    paragraphs 2(e) and 2(f) hereof (with payments made as
                    though I survived to collect all benefits, and as though I
                    terminated service on the date of my death if payments had
                    not already begun).

                                       3

<PAGE>

UTi Worldwide Inc.
Amended and Restated 2004 Non-Employee Directors Share Incentive Plan
Combined Elective Grant and Deferral Election Agreement
Page 4

     (h)  Designation of Beneficiary. In the event of my death before I have
          collected all of my Account, I hereby direct that my beneficiaries
          shall be as follows:

          (i)  Primary Beneficiary. I hereby designate the person(s) named below
               to be my primary beneficiary and to receive the balance of any
               unpaid portion of my Account.

<TABLE>
<CAPTION>
      Name of         Social Security                     Percentage of
Primary Beneficiary        Number       Mailing Address   Death Benefit
-------------------   ---------------   ---------------   -------------
<S>                   <C>               <C>               <C>
                                                                %
                                                                %
</TABLE>

          (ii) Contingent Beneficiary. In the event that a primary beneficiary
               or beneficiaries named above are not living at the time of my
               death, I hereby designate the following person(s) to be my
               contingent beneficiary for purposes of the Plan with respect to
               any Shares not otherwise previously issued to a primary
               beneficiary pursuant to paragraph 2(i)(i) above.

<TABLE>
<CAPTION>
        Name of          Social Security                     Percentage of
Contingent Beneficiary        Number       Mailing Address   Death Benefit
----------------------   ---------------   ---------------   -------------
<S>                      <C>               <C>               <C>
                                                                   %
                                                                   %
</TABLE>

3.   SATISFACTION OF COMMITMENTS. The parties recognize and agree that the
     Company will have fully honored and discharged its obligations under this
     Agreement and the Plan if the Company distributes my Account in accordance
     with the provisions hereof.

4.   CHANGE IN U.S. TAX LAWS. The parties recognize and agree that the Company
     will take any actions that it considers reasonably necessary or proper to
     assure that any changes in the U.S. federal tax laws will not accelerate
     the date of my income taxation to a date before I receive distributions of
     Shares or cash pursuant to my elections in this Agreement. If such taxation
     will occur on an accelerated basis and I have not executed such documents,
     if any, that the Company considers reasonably necessary or proper to avoid
     immediate taxation, then the Company shall distribute Shares and cash to me
     having a value equal to the income I recognize.

5.   DEFINED TERMS. The parties agree that any term in this Agreement that
     begins with initial capital letters shall have the special meaning defined
     in the Plan unless the context clearly requires otherwise.

6.   TAXES. By signing this Agreement, I recognize and agree that I am solely
     responsible for the satisfaction of any federal, state, or local taxes that
     may arise under the Plan (including any taxes arising under Sections 409A
     or 4999 of the Code), and that neither the Company nor

                                       4

<PAGE>

UTi Worldwide Inc.
Amended and Restated 2004 Non-Employee Directors Share Incentive Plan
Combined Elective Grant and Deferral Election Agreement
Page 5

     any of its employees, officers, directors, or service providers has any
     right or obligation to provide me with tax planning advice, or to structure
     the terms of the Plan or any payments to me in a manner that mitigates my
     tax liability. The Company shall not have any obligation to pay, mitigate,
     or protect me from any such tax liabilities. Nevertheless, if the Company
     reasonably determines that my receipt of payments or benefits pursuant to
     Section 7(d) of the Plan upon cessation of my Continuous Service and my
     election in paragraph 2(e) hereof would cause me to incur liability for
     additional tax under Section 409A of the Code, then the Company may in its
     discretion suspend such payments or benefits until the end of the six-month
     period following termination of my service with the Company (the "409A
     Suspension Period"). As soon as reasonably practical after the end of the
     409A Suspension Period, the Company shall make a lump sum payment to me, in
     cash, in an amount equal to any payments and benefits that the Company does
     not make during the 409A Suspension Period. Thereafter, I shall receive any
     remaining payments and benefits due pursuant to Section 7(d) of the Plan
     and my election in paragraphs 2(e) and 2(f) hereof in accordance with the
     terms of such provisions (as if there had not been any suspension
     beforehand).

                            [signature page follows]

                                       5

<PAGE>

UTi Worldwide Inc.
Amended and Restated 2004 Non-Employee Directors Share Incentive Plan
Combined Elective Grant and Deferral Election Agreement
Page 6

WITNESSED BY:                           PARTICIPANT

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

                                        UTi WORLDWIDE INC.

                                        ----------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                       6EXHIBIT 10.3
--------------------------------------------------------------------------------

                              MEGADATA CORPORATION

                        AMENDED 1999 STOCK INCENTIVE PLAN

                                                                        PURPOSES

                  The purposes of the Megadata Corporation 1999 Stock Incentive
Plan (the "Plan") are (i) to enable Megadata Corporation (the "Company") and its
Related Companies (as defined below) to attract, retain, and reward employees
and strengthen the existing mutuality of interests between such employees and
the Company's stockholders by offering such employees an equity interest in the
Company, and (ii) to enable the Company to pay part of the compensation of its
Outside Directors (as defined in Section 5.2) in shares of the Company's common
stock and options to purchase the Company's common stock, thereby increasing
such director's proprietary interests in the Company, and (iii) to enable the
Company to pay all or part of the compensation of its Consultants (as defined in
Section 5.2) in shares of the Company's common stock and options to purchase the
Company's common stock, thereby increasing such Consultants proprietary
interests in the Company. For purposes of the Plan, a "Related Company" means
any corporation, partnership, joint venture or other entity in which the Company
owns, directly or indirectly, at least a 20% beneficial ownership interest.

                  Types Of Awards

                  Awards to employees under the plan may be in the form of (i)
Stock Options; (ii) Stock Appreciation Rights; (iii) Restricted Stock; (iv)
Deferred Stock; (v) Bonus Stock: (vi) Loans; and/or (vii) Tax Offset Payments.
Outside Directors may receive only Stock Options and Limited Stock Appreciation
Rights as provided in Section 15; Consultants may receive only Stock Options and
Consultants' Stock Grants as provided in Section 15.5.

                  An eligible employee, Outside Director or Consultant may be
granted one or more types of awards, which may be independent or granted in
tandem. If two awards are granted in tandem, the employee, Outside Director or
Consultant may exercise (or otherwise receive the benefit of) one award only to
the extent he or she relinquishes the tandem award.

                  Administration

                  The Plan shall be administered by the Company's Board of
Directors (the "Board") or such committee of Directors as the Board shall
designate (the "Committee"), which shall consist of not less than three
Directors each of whom is (a) a disinterested person, as such term is defined in
Rule 16b-3 under the Securities Exchange Act of 1934 or any successor rule, and
(b) an outside director satisfying the requirements of Section 162(m) of the
Internal Revenue Code of 1986, as amended, or any successor thereto (the
"Code"). The members of the Committee shall serve at the pleasure of the Board.

<PAGE>

                  The Committee shall have the following authority with respect
to awards under the Plan other than awards to Outside Directors: to recommend
awards to eligible employees and Consultants under the Plan; to adopt, alter and
repeal such administrative rules, guidelines and practices governing the Plan as
it shall deem advisable; to interpret the terms and provisions of the Plan and
awards granted under the Plan; and to otherwise supervise the administration of
the Plan. In particular, and without limiting its authority and powers, except
with respect to awards to Outside Directors, the Committee shall have the
authority:

                  to recommend whether and to what extent any award or
combination of awards will be granted hereunder, including whether any awards
will be granted in tandem with each other;

                  to recommend the employees and Consultants to whom awards will
be granted;

                  to recommend the number of shares of the common stock of the
Company (the "Stock") to be covered by each award granted hereunder subject to
the limitations contained herein;

                  to recommend the terms and conditions of any award granted
hereunder, including, but not limited to, any vesting or other restrictions
based solely on such performance objectives (the "Performance Objectives");

                  to recommend the treatment of awards upon an employee's (or
Consultant's) retirement, disability, death, termination for cause or other
termination of employment;

                  to recommend pursuant to a formula or otherwise the fair
market value of the Stock on a given date; provided, however, that if the
Committee fails to recommend or the Board of Directors fails to make a
determination, fair market value of the Stock on a given date shall be the
closing sale price on a given date, or if no such sale of Stock occurs on such
date, the weighted average of the closing sale price on the nearest trading
dates before and after such date;

                  to recommend that awards equal to the amount of any dividends
declared with respect to the number of shares covered by an award (i) will be
paid to the grantee currently or (ii) will be deferred and deemed to be
reinvested or (iii) will otherwise be credited to the grantee, or that the
grantee has no rights with respect to such dividends;

                  to recommend whether, to what extent, and under what
circumstances Stock and other amounts payable with respect to an award will be
deferred either automatically or at the election of a grantee, including
providing for and determining the amount (if any) of deemed earnings on any
deferred amount during any deferral period;

                  to recommend that the shares of Stock received as a result of
an award shall be subject to a right of first refusal, pursuant to which the
grantee shall be required to offer to the Company any shares that the grantee
wishes to sell, subject to such terms and conditions as the Committee may
specify;

                  to recommend amendment of the terms of any award,
prospectively or retroactively; provided, however, that no amendment shall
impair the rights of the award holder without his or her written consent; and

                                      -2-
<PAGE>

                  to recommend substitute new Stock Options for previously
granted Stock Options, or for options granted under other plans or agreements,
in each case including previously granted options having higher option prices.

                  All awards and the other matters identified above will require
the approval of the Company's Board of Directors, and the Board of Directors
shall have the authority to take any of the actions identified above regardless
of whether such action is recommended by the Committee. The Board may delegate
to the Committee any of the powers of the Board specified herein.

                  Each option or Stock or other award granted under this Plan
shall be evidenced by an Option Agreement or Award Agreement between the Company
and the grantee of the award.

                  The Board shall have the right to designate awards as
"Performance Awards." Awards so designated shall be granted and administered in
a manner designed to preserve the deductibility of the compensation resulting
from such awards in accordance with Section 162(m) of the Code. The grant or
vesting of a Performance Award shall be subject to the achievement of
Performance Objectives established by the Board based on one or more of the
following criteria, in each case applied to the Company on a consolidated basis
and/or to a business unit, and which the Board may use as an absolute measure,
as a measure of improvement relative to prior performance, or as a measure of
comparable performance relative to a peer group of companies; sales, operating
profits, operating profits before interest expense and taxes, net earnings,
earnings per share, return on equity, return on assets, return on invested
capital, total shareholder return, cash flow, debt to equity ratio, market
share, stock price, economic value added, and market value added. The
Performance Objectives for a particular Performance Award relative to a
particular fiscal year shall be established by the Board in writing no later
than 90 days after the beginning of such year. The Board's determination as to
the achievement of Performance Objectives relating to a Performance Objective
shall be made in writing. The Board shall have discretion to modify the
Performance Objective or vesting conditions of a Performance Award only to the
extent that the exercise of such discretion would not cause the Performance
Award to fail to qualify as "performance-based compensation" within the meaning
of Section 162(m) of the Code.

                  With respect to awards to Outside Directors, the Board shall
have the authority to interpret the Plan; to adopt, amend, and rescind
administrative regulations to further the purposes of the Plan; and to take any
other action necessary to the proper operation of the Plan. However, the Board
shall have no discretion to vary the amount or terms of awards as set forth in
Section 15, except as provided in Section 4.4.

                  All determinations made by the Board pursuant to the
provisions of the Plan shall be final and binding on all persons, including the
Company and Plan participants.

                  The Board may from time to time delegate to one or more
officers of the Company any or all of its authorities granted hereunder except
with respect to awards granted to persons subject to Section 16 of the
Securities Exchange Act of 1934 or Performance Awards. The Board shall specify
the maximum number of shares that the officer or officers to whom such authority
is delegated may award.

                                      -3-
<PAGE>

                  Stock Subject To Plan

                  The total number of shares with respect to which awards may be
issued under the Plan shall be 2,200,000 shares of the Company's common stock,
of which 1,500,000 shares shall be used for awards for employees and 700,000
shares shall be used for awards to Outside Directors, Consultants, as well as
employees of the Company (all subject to adjustments as provided below). Such
shares may consist of authorized but unissued shares or treasury shares. The
exercise of a Stock Appreciation Right for cash or the payment of any other
award in cash shall not count against this share limit.

                  To the extent a Stock Option terminates without having been
exercised, or an award terminates without the award holder having received
payment of the award, or shares awarded are forfeited, the shares subject to
such award shall again be available for distribution in connection with future
awards under the Plan. Shares of Stock equal in number to the shares surrendered
in payment of the option price, and shares of Stock which are withheld in order
to satisfy federal, state or local tax liability, shall not count against the
above limit, and shall again be available for grants under the Plan.

                  No employee shall be granted Stock Options, Stock Appreciation
Rights, Restricted Stock, Deferred Stock, and/or Bonus Stock, or any combination
of the foregoing with respect to more than 100,000 shares of Stock under the
Plan in any fiscal year (subject to adjustment as provided in Section 4.4). No
employee shall be granted a Tax Offset Payment in any fiscal year with respect
to more than the number of shares of Stock covered by awards granted to such
employee in such fiscal year.

                  In the event of any merger, reorganization, consolidation,
sale of substantially all assets, recapitalization, stock dividend, stock split,
spin-off, split-up, split-off, distribution of assets or other change in
corporate structure affecting the Stock, a substitution or adjustment, as may be
determined to be appropriate by the Board in its sole discretion, shall be made
in the aggregate number of shares reserved for issuance under the Plan, the
number of shares as to which awards may be granted to any individual in any
calendar year, the number of shares subject to outstanding awards and the
amounts to be paid by award holders or the Company, as the case may be, with
respect to outstanding awards; provided, however, that no such adjustment shall
increase the aggregate value of any outstanding award. In the event of a change
described in this Section 4.4 occurs, the Board shall make the appropriate
adjustment in the awards previously granted and to be granted to Outside
Directors under the Plan; provided that no such adjustment shall increase the
aggregate value of any outstanding award.

                  Eligibility

                  Employees of the Company or a Related Company, including
employees who are officers and/or directors of the Company, are eligible to be
granted awards under the Plan, other than under Section 15. Except as provided
in Section 5.2, persons who are not employees are not eligible to be granted
awards under the Plan. The participants under the Plan shall be selected from
time to time by the Committee, in its sole discretion, from among those
eligible.

                                      -4-
<PAGE>

                  Awards under Section 15 of the Plan shall be made solely to
Outside Directors and Consultants. "Outside Director" shall mean any director of
the Company other than one who is an employee of the Company or a Related
Company. "Consultant" shall mean a person (other than an Outside Director) who
provides services to the Company or a Related Company in a capacity other than
that of an employee.

                  Stock Options

                  The Stock Options awarded to employees under the Plan may be
of two types: (i) Incentive Stock Options within the meaning of Section 422 of
the Code or any successor provision thereto; and (ii) Non-Qualified Stock
Options. To the extent that any Stock Option does not qualify as an Incentive
Stock Option, it shall constitute a Non-Qualified Stock Option.

                  Subject to the following provisions, Stock Options awarded to
employees under the Plan shall be in such form and shall have such terms and
conditions as the Board may determine:

                  Option Price. The option price per share of Stock purchasable
under a Stock Option shall be determined by the Board, and may not be less than
the fair market value of the Stock on the date of the award of the Stock Option.

                  Option Term. The term of each Stock Option shall be fixed by
the Board. However, unless determined to the contrary, the term of the stock
option shall be ten years from the date of grant, subject to earlier termination
in the event of termination of service.

                  Exercisability. Stock Options shall be exercisable at such
time or times and subject to such terms as shall be determined by the Board. The
Board may waive such exercise provisions or accelerate the exercisability of the
Stock Option at any time in whole or in part. However, unless determined to the
contrary, all options shall vest 33-1/3% on each of the first, second, and third
anniversary of the grant provided however, that no option shall vest in whole or
in part prior to November 30, 2000. Any option granted prior to November 30,
1999, shall have its first anniversary date on November 30, 2000, with
subsequent anniversaries on each November 30th of the following years.

                  Method Of Exercise. Stock Options may be exercised in whole or
in part at any time during the option period by giving written notice of
exercise to the Company specifying the number of shares to be purchased,
accompanied by payment of the purchase price. Payment of the purchase price
shall be made in such manner and on such terms as the Board may provide in the
award, which may include cash (including cash equivalents), delivery of shares
of Stock already owned by the optionee or subject to awards hereunder, "cashless
exercise", any other manner permitted by law determined by the Board, or any
combination of the foregoing. A "cashless exercise" must use mature shares held
for at least six months or use a third party broker. If the Board determines
that a Stock Option may be exercised using shares of Restricted Stock, then
unless the Board provides otherwise, a number of the shares received upon such
exercise equal to the number of shares of restricted Stock so used shall be
restricted in accordance with the original terms of the Restricted Stock award.

                                      -5-
<PAGE>

                  No Stockholder Rights. An optionee shall have neither rights
to dividends nor other rights of a stockholder with respect to shares subject to
a Stock Option until the optionee has given written notice of exercise and has
paid for such shares.

                  Non-Transferability. Unless otherwise provided by the Board,
(i) Stock Options shall not be transferable by the optionee other than by will
or by the laws of descent and distribution, and (ii) during the optionee's
lifetime, all Stock Options shall be exercisable only by the optionee or by his
or her guardian or legal representative.

                  Termination Of Employment. Following the termination of an
optionee's employment with the Company or a Related Company, the Stock Option
shall be exercisable to the extent determined by the Board and the Board may
provide that upon termination of employment all options and awards are forfeited
and are no longer exercisable. The Board may provide different post-termination
exercise provisions with respect to termination of employment for different
reasons. The Board may provide that, notwithstanding the option term fixed
pursuant to Section 6.2(b), a Stock Option which is outstanding on the date of
an optionee's death shall remain outstanding for an additional period after the
date of such death.

                  Notwithstanding the provisions of Section 6.2, no Incentive
Stock Option shall (i) have an option price which is less than 100% of the fair
market value of the Stock on the date of the award of the Incentive Stock
Option, (ii) be exercisable more than ten years after the date such Incentive
Stock Option is awarded, or (iii) be awarded more than ten years after the
effective date of the Plan specified in Section 19. No Incentive Stock Option
granted to an employee who owns more than 10% of the total combined voting power
of all classes of stock of the Company or any of its parent or subsidiary
corporations, as defined in Section 424 of the Code, shall (a) have an option
price which is less than 110% of the fair market value of the Stock on the date
of award of the Incentive Stock Option or (b) be exercisable more than five
years after the date such Incentive Stock Option is awarded.

                  Stock Appreciation Rights

                  A Stock Appreciation Right awarded to an employee shall
entitle the holder thereof to receive payment of an amount, in cash, shares of
Stock or a combination thereof, as determined by the Board, equal in value to
the excess of the fair market value of the number of shares of Stock as to which
the award is granted on the date of exercise over an amount specified by the
Board. Any such award shall be in such form and shall have such terms and
conditions as the Board may determine. The grant shall specify the number of
shares of Stock as to which the Stock Appreciation Right is granted.

                  The Board may provide that a Stock Appreciation Right awarded
to an employee may be exercised only within the 60-day period following
occurrence of a Change of Control (as defined in Section 17.2)(such Stock
Appreciation Right being referred to herein as a Limited Stock Appreciation
Right). The Board may also provide that in the event of a Change of Control the
amount to be paid upon an employee's exercise of a Stock Appreciation Right
shall be based on the Change of Control Price (as defined in Section 17.3).

                                      -6-
<PAGE>

                  Restricted Stock

                  Subject to the following provisions, all awards of Restricted
Stock to employees shall be in such form and shall have such terms and
conditions as the Board may determine:

                  The Restricted Stock award shall specify the number of shares
of Restricted Stock to be awarded, the price, if any, to be paid by the
recipient of the Restricted Stock and the date or dates on which, or the
conditions upon the satisfaction of which, the Restricted Stock will vest. The
grant and/or the vesting of Restricted Stock may be conditioned upon the
completion of a specified period of service with the Company or a Related
Company, upon the attainment of specified Performance Objectives or upon such
other criteria as the Board may determine.

                  Stock certificates representing the Restricted Stock awarded
to an employee shall be registered in the employee's name, but the Board may
direct that such certificates be held by the Board on behalf of the employee.
Except as may be permitted by the Board, no share of Restricted Stock may be
sold, transferred, assigned, pledged or otherwise encumbered by the employee
until such share has vested in accordance with the terms of the Restricted Stock
award. At the time Restricted Stock vests, a certificate for such vested shares
shall be delivered to the employee (or his or her designated beneficiary in the
event of death), free of all restrictions.

                  The Board may provide that the employee shall have the right
to vote or receive dividends on Restricted Stock. Unless the Board provides
otherwise, Stock received as a dividend on, or in connection with a stock split
of, Restricted Stock shall be subject to the same restrictions as the Restricted
Stock.

                  Except as may be provided by the Board, in the event of an
employee's termination of employment before all of his or her Restricted Stock
has vested, or in the event any conditions to the vesting of Restricted Stock
have not been satisfied prior to any deadline for the satisfaction of such
conditions set forth in the award, the shares of Restricted Stock which have not
vested shall be forfeited, and the Board may provide that (i) any purchase price
paid by the employee shall be returned to the employee or (ii) a cash payment
equal to the Restricted Stock's fair market value on the date of forfeiture, if
lower, shall be paid to the employee.

                  The Board may waive, in whole or in part, any or all of the
conditions to receipt of, or restrictions with respect to, any or all of the
employee's Restricted Stock, other than Performance Awards whose vesting was
made subject to satisfaction of one or more Performance Objectives (except that
the Board may waive conditions or restrictions with respect to Performance
Awards if such waiver would not cause the Performance Award to fail to qualify
as "performance-based compensation" within the meaning of Section 162(m) of the
Code).

                  Deferred Stock Awards

                  Subject to the following provisions, all awards of Deferred
Stock to employees shall be in such form and shall have such terms and
conditions as the Board may determine:

                  The Deferred Stock award shall specify the number of shares of
Deferred Stock to be awarded to any employee and the duration of the period (the
"Deferral Period") during which, and the conditions under which, receipt of the
Stock will be deferred. The Board may condition the grant or vesting of Deferred
Stock, or receipt of Stock or cash at the end of the Deferral Period, upon the
attainment of specified Performance Objectives or such other criteria as the
Committee may determine.

                                      -7-
<PAGE>

                  Except as may be provided by the Board, Deferred Stock awards
may not be sold, assigned, transferred, pledged or otherwise encumbered during
the Deferral Period.

                  At the expiration of the Deferral Period, the employee (or his
or her designated beneficiary in the event of death) shall receive (i)
certificates for the number of shares of Stock equal to the number of shares
covered by the Deferred Stock award, (ii) cash equal to the fair market value of
such Stock, or (iii) a combination of shares and cash, as the Committee may
determine.

                  In the event of an employee's termination of employment before
the Deferred Stock has vested, his or her Deferred Stock award shall be
forfeited.

                  The Board may waive, in whole or in part, any or all of the
conditions to receipt of, or restrictions with respect to, Stock or cash under a
Deferred Stock award, other than with respect to Performance Awards (except that
the Board may waive conditions or restrictions with respect to Performance
Awards if such waiver would not cause the Performance Award to fail to qualify
as "performance-based compensation" within the meaning of Section 162(m) of the
Code).

                  Bonus Stock

                  The Committee may award Bonus Stock to an eligible employee
subject to such terms and conditions as the Committee shall determine, provided
no person who is the beneficial owner of 5% or more of the outstanding shares of
the Company shall be entitled to receive such an award. The grant of Bonus Stock
may be conditioned upon the attainment of specified Performance Objectives or
upon such other criteria as the Committee may determine. The Board may waive
such conditions in whole or in part other than with respect to Performance
Awards (except that the Board may waive conditions or restrictions with respect
to Performance Awards if such waiver would not cause the Performance Award to
fail to qualify as "performance-based compensation" within the meaning of
Section 162(m) of the Code). The Board shall also have the right to eliminate or
reduce the amount of Bonus Stock otherwise payable under an award. Unless
otherwise specified by the Board, no money shall be paid by the recipient for
Bonus Stock. Alternatively, the Board may offer eligible employees the
opportunity to purchase Bonus Stock at a discount from its fair market value.
The Bonus Stock award shall be satisfied by the delivery of the designated
number of shares of Stock which are not subject to restriction.

                  Loans

                  The Board may provide (except with respect to a person who is
the beneficial owner of 5% or more of the outstanding shares of the Company or
any director or executive officer of the Company) that the Company shall make,
or arrange for, a loan or loans to an employee with respect to the exercise of
any Stock Option award under the Plan, with respect to the payment of the
purchase price, if any, of any Restricted Stock awarded hereunder or with
respect to any taxes arising from an award hereunder: provided, however, that

                                      -8-
<PAGE>

the Company shall not loan to an employee more than the sum of (i) the excess of
the purchase or exercise price of an award over the par value of any shares of
Stock awarded plus (ii) the amount of any taxes arising from such award. The
Board shall have full authority to decide whether a loan will be made hereunder
and to determine the amount, term and provisions of any such loan, including the
interest rate to be charged, whether the loan will be with recourse against the
borrower, any security for the loan, the terms on which the loan is to be repaid
and the conditions, if any, under which the loan may be forgiven.

                  Tax Offset Payments

                  The Board may provide for a Tax Offset Payment by the Company
to an employee (except with respect to a person who is the beneficial owner of
5% or more of the outstanding shares of the Company) with respect to one or more
awards granted under the Plan. The Tax Offset Payment shall be in an amount
specified by the Board, which shall not exceed the amount necessary to pay the
federal, state, local and other taxes payable with respect to the applicable
award and the receipt of the Tax Offset Payment, assuming that the employee is
taxed at the maximum tax rate applicable to such income. The Tax Offset Payment
shall be paid solely in cash.

                  Election To Defer Awards

                  The Board may permit an employee to elect to defer receipt of
an award for a specified period or until a specified event, upon such terms as
are determined by the Board.

                  Tax Withholding

                  Each employee shall, no later than the date as of which the
value of an award first becomes includable in such person's gross income for tax
purposes, pay to the Company, or make arrangements satisfactory to the Board
regarding payment of any federal, state, local or other taxes of any kind
required by law to be withheld with respect to the award. The obligations of the
Company under the Plan shall be conditional on such payment or arrangements, and
the Company (and, where applicable, any Related Company), shall, to the extent
permitted by law, have the right to deduct any such taxes from any payment of
any kind otherwise due to the employee.

                  To the extent permitted by the Board, and subject to such
terms and conditions as the Board may provide, an employee may elect to have the
withholding tax obligations, or any additional tax obligation with respect to
any awards hereunder, satisfied by (i) having the Company withhold shares of
Stock otherwise deliverable to such person with respect to the award or (ii)
delivering to the Company shares of unrestricted Stock. Alternatively, the Board
may require that a portion of the shares of Stock otherwise deliverable be
applied to satisfy the withholding tax obligations with respect to the award.

                  Stock Options, Limited Stock Appreciation Rights and Stock
Grants for Outside Directors And Consultants

                                      -9-
<PAGE>

                  (a) Initial Grant. Each person who was an Outside Director on
the date of adoption of the Original Plan by the Stockholders was granted
automatically (without action of the Board) on such date a Stock Option to
purchase 15,000 shares. Each person who becomes an Outside Director after such
date shall be granted, on the first trading day coincident with or immediately
following the effective date of his or her election as an Outside Director, a
Stock Option to purchase 15,000 shares, or such lesser amount as is approved by
the Board of Directors.

                  (b) For purposes of this Section 15.1, the term trading day
shall mean a day on which the Stock is traded on a national securities exchange,
on the NASDAQ National Market, or in the over-the-counter market.

                  Stock Options granted under this Section 15 shall be
Non-Qualified Stock Options, and shall have the following terms and conditions:

                  Option Price. The option price per share of Stock purchasable
under the Stock Option shall be equal to the closing sales price of the Stock on
the date the Stock Option is granted.

                  Term Of Option. The term of the Stock Option shall be ten
years from the date of grant, subject to earlier termination in the event of
termination of service, as set forth in paragraphs (e) and (f) below.

                  Exercisability. Subject to paragraphs (e) and (f) below, each
Stock Option granted to an Outside Director on the date the original plan was
adopted vested with respect to 33-1/3% of the underlying shares on November 30,
2000, and an additional 33-1/3% on November 30, 2001, and the balance on
November 30, 2002, provided that the optionee was a director of the Company on
each such date. The minimum number of shares with respect to which a Stock
Option may be exercised is the lesser of 100 shares or the number of shares then
subject to the Stock Option. Options subsequently granted pursuant to the terms
section 15 shall vest 33-1/3% on each of the first, second, and third
anniversaries of the date of grant, but in no event prior to November 30, 2000.
Any option granted prior to November 30, 1999, shall have its first anniversary
date on November 30, 2000, with subsequent anniversaries on each November 30th
of the following years.

                  Method Of Exercise. The Stock Options may be exercised in
whole or in part at any time during the option period by giving written notice
of exercise to the Company specifying the number of shares to be purchased,
accompanied by payment of the purchase price. Payment of the purchase price
shall be made in cash (including cash equivalents) or by delivery of shares of
Stock already owned by the optionee for at least six months, or by any
combination or the foregoing. Shares delivered upon payment of the exercise
price shall be valued at the average of the high and low sales price of the
Stock on the date of exercise (or, if the Stock is not traded on such date, at
the weighted average of the high and low prices on the nearest trading dates
before and after such date).

                  Termination Of Service Of Directors. If an Outside Director's
status as a director is terminated for any reason, such director's Stock Options
may be exercised for three years following such termination of service (but not
beyond the Option term), but only to the extent such Options were vested on the
date of termination of service.

                                      -10-
<PAGE>

                  Change Of Control. Notwithstanding any other provision of the
Plan, upon the occurrence of a Change of Control (as defined in Section 17.2),
all Outside Directors' Stock Options outstanding at the time of such Change of
Control shall become immediately vested and exercisable for three years after
the director's termination service (but not beyond the option term).

                  Non-Transferability. Outside Directors' Stock Options shall
not be transferable by the optionee other than by laws of descent and
distribution. During an optionee's lifetime, all Outside Directors' Stock
Options shall be exercisable only by the optionee or by his or her guardian or
legal representative.

                  Shareholder Rights. The holder of an Outside Directors' Stock
Option shall, as such, have none of the rights of a shareholder.

                  Limited Stock Appreciation Rights In Tandem With Options. Each
Stock Option granted to an Outside Director under this Section 15 shall be
granted in tandem with a Limited Stock Appreciation Right which may be exercised
only within the 60-day period following a Change of Control (as defined in
Section 17.2). Upon exercise of the Limited Stock Appreciation Right, the holder
shall receive, for each share with respect to which the Limited Stock
Appreciation Right is exercised, an amount equal in value to the excess of the
Change of Control Price (as defined in Section 17.3) over the exercise price of
the related Stock Option. The Limited Stock Appreciation Right shall be payable
solely in cash, and shall be within 30 days of the exercise of the Limited Stock
Appreciation Right.

                  Notwithstanding the foregoing, if on any date on which awards
are to be granted under this Section 15 the remaining shares available for
issuance to Outside Directors and Consultants are insufficient to enable each
Outside Director to receive the Stock Option and/or Quarterly Stock Grant to
which he or she is entitled, then: (a) no award shall be made on such date to
any Consultant; and (b) each Outside Director who is entitled to be granted an
award pursuant to this Section 15 on such date shall be granted a Stock Option
to purchase and/or a Quarterly Stock Grant with respect to, his or her pro rata
portion of such remaining shares.

                  From time to time the Board, at its sole discretion, may elect
to award to Consultants of the Company, Stock Options to purchase shares of the
Company's Stock. In addition, the Board, at its sole discretion, may award
shares of Stock to such Consultants. These awards may be granted whenever the
Board determines that issuing such options or shares will be in the best
interests of the Company, or as a direct payment to be made the Consultant in
lieu of a cash payment for services to be rendered to the Company. Such Awards
granted to Consultants under this section will be considered non repetitive,
"one time" awards, and will carry with them such terms, conditions, and
restrictions as the Board shall prescribe, provided however, that Stock options
granted to Consultants shall also be subject to Section 15.2 (as applicable).

                                      -11-
<PAGE>

                  Amendments And Termination

                  The Board may discontinue the Plan at any time and may amend
it from time to time. No amendment or discontinuation of the Plan shall
adversely affect any award previously granted without the award holder's written
consent. The provisions of Section 15 shall not be amended more than once every
six months, other than to conform with the Internal Revenue Code, the Employee
Retirement Income Security Act, or the rules thereunder. Amendments may be made
without stockholder approval except as required to satisfy Rule 16b-3 under the
Securities Exchange Act of 1934 (or any successor rule), Sections 162(m) or 422
of the Code, or other regulatory requirements.

                  Change Of Control

                  In the event of a Change of Control, unless otherwise
determined by the Board at the time of grant or by amendment (with the holder's
consent) of such grant:

                  all outstanding Stock Options and all outstanding Stock
Appreciation Rights (including Limited Stock Appreciation Rights) awarded under
the Plan shall become fully exercisable and vested;

                  the restrictions and deferral limitations applicable to any
outstanding Restricted Stock and Deferred Stock awards under the Plan shall
lapse and such shares and awards shall be deemed fully vested; and

                  to the extent the cash payment of any award is based on the
fair market value of Stock, such fair market value shall be the Change of
Control Price.

                  A "Change of Control" shall be deemed to occur subsequent to
the date of the Plan on:

                  the date that any person or group deemed a person under
Sections 3(a)(9) and 13(d)(3) of the Securities Exchange Act of 1934 (other than
the Company and its subsidiaries as determined immediately prior to that date)
has become the beneficial owner, directly or indirectly (with beneficial
ownership determined as provided in Rule 13d-3, or any successor rule, under the
Securities Exchange Act of 1934) of securities of the Company representing 25%
or more of the total combined voting power of all classes of stock of the
Company having the right under ordinary circumstances to vote at an election of
the Board, unless such person has acquired 80% or more of such securities
directly from the Company;

                  the date on which one-third or more of the members of the
Board shall consist or persons other than Current Directors (for these purposes,
a "Current Director" shall mean a member of the Board on the effective date of
the Plan, as well as any member of the Board whose nomination or election has
been approved by a majority of the Current Directors then on the Board);

                                      -12-
<PAGE>

                  consummation of a merger or consolidation of the Company with
another corporation where the Company is not the surviving entity and where (i)
the stockholders of the Company, immediately prior to the merger or
consolidation, would not beneficially own, immediately after the merger or
consolidation, shares entitling such stockholders to 50% or more of all votes
(without consideration of the rights of any class of stock to elect directors by
a separate class vote) to which all stockholders of the corporation issuing cash
or securities in the merger or consolidation would be entitled in the election
of directors, or (ii) where the members of the Board, immediately prior to the
merger or consolidation, would not, immediately after the merger or
consolidation constitute a majority of the Board of Directors of the corporation
issuing cash or securities in the merger; or

                  consummation of an agreement providing for the sale or
disposition of all or substantially all of the assets of the Company.

                  "Change of Control Price" means the highest price per share
paid in any transaction reported in the NASDAQ National Market or on any
national securities exchange where the Stock is traded, or paid or offered in
any transaction related to a Change of Control at any time during the 90-day
period ending with the Change of Control. Notwithstanding the foregoing
sentence, in the case of Stock Appreciation Rights granted in tandem with
Incentive Stock Options, the Change of Control Price shall be the highest price
paid on the date on which the Stock Appreciation Right is exercised.

                  General Provisions

                  Each award under the Plan shall be subject to the requirement
that, if at any time the Board shall determine that (i) the listing,
registration or qualification of the Stock subject or related thereto upon any
securities exchange or under any state or federal law, or (ii) the consent or
approval of any government regulatory body or (iii) an agreement by the
recipient of an award with respect to the disposition of Stock is necessary or
desirable (in connection with any requirement or interpretation of any federal
or state securities law, rule or regulation) as a condition of, or in connection
with, the granting of such award or the issuance, purchase or delivery of Stock
there under, such award shall not be granted or exercised, in whole or in part,
unless such listing, registration, qualification, consent, approval or agreement
shall have been effected or obtained free of any conditions not acceptable to
the Board.

                  Nothing set forth in this Plan shall prevent the Board from
adopting other or additional compensation arrangements. Neither the adoption of
the Plan nor any award hereunder shall confer upon any employee, Outside
Director or Consultant any right to continued service in any capacity.

                  Determinations by the Board under the Plan relating to the
form, amount, and terms and conditions of awards need not be uniform, and may be
made selectively among persons who receive or are eligible to receive awards
under the Plan, whether or not such persons are similarly situated.

                  No member of the Board or the Committee, nor any officer or
employee of the Company acting on behalf of the Board or the Committee, shall be
personally liable for any action, determination or interpretation taken or made
with respect to the Plan, and all members of the Board or the Committee and all
officers or employees of the Company acting on their behalf shall, to the extent
permitted by law, be fully indemnified and protected by the Company in respect
of any such action, determination or interpretation.

                                      -13-
<PAGE>

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

                  Effective Date Of Plan

                  The provisions of the Plan with respect to Outside Directors
were adopted and shall be effective on March 23, 1999, and the provisions of the
Plan with respect to employees were adopted and shall be effective on March 23,
1999, and the provisions of the Plan with respect to Consultants were adopted
and shall be effective on March 23, 1999, in each case subject to the approval
by the Company's stockholders at the 1999 Annual Meeting of Stockholders.

                  Section 20. Duration

                  The Plan shall terminate on the earliest to occur of: (i) the
adoption of a resolution of the Company's Board of Directors terminating the
Plan; (ii) the date all shares of Common Stock subject to the Plan are purchased
according to the Plan's provisions; or (iii) ten years from the effective date
of the Plan.

                                      -14-

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