Document:

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                                                                    Exhibit 10.2

                                 SELECTICA, INC.
                              3 West Plumeria Drive
                             San Jose, CA 95134-2111
                               September 22, 2003

Sanjay Mittal
754 Bodega Court
Fremont, CA 94539

Dear Sanjay:

      This letter (the "Agreement") confirms the agreement between you and
Selectica, Inc. (the "Company") regarding the termination of your employment
with the Company.

      1. TERMINATION DATE. Your termination from employment with the Company and
as President, Chief Executive Officer and Chief Technical Officer of the Company
and Chairman of the Company's Board of Directors (the "Board") is effective as
of September 7, 2003 (the "Termination Date").

      2. EFFECTIVE DATE AND RESCISSION. You have up to 21 days after you
received this Agreement to review it. You are advised to consult an attorney of
your own choosing (at your own expense) before signing this Agreement.
Furthermore, you have up to seven days after you signed this Agreement to revoke
it. If you wish to revoke this Agreement after signing it, you may do so by
delivering a letter of revocation to me. If you do not revoke this Agreement,
the eighth day after the date you signed it will be the "Effective Date."
Because of the seven-day revocation period, no part of this Agreement will
become effective or enforceable until the Effective Date.

      3. SALARY AND VACATION PAY. You acknowledge and agree that the Company has
paid you $36,937.90 (less all applicable withholding taxes and other
deductions). This amount represents all of your salary earned through the
Termination Date and all of your accrued but unused vacation time or PTO. You
acknowledge that, prior to the execution of this Agreement, you were not
entitled to receive any additional money from the Company and that the only
payments and benefits that you are entitled to receive from the Company in the
future are those specified in this Agreement.

      4. CHIEF TECHNICAL ADVISOR. If you sign and do not revoke this Agreement,
the Company agrees to continue your service as Chief Technical Advisor to the
Company ("CTA Service"), commencing on September 8, 2003, and continuing until
you or the Company, at the sole discretion of either party, elect to terminate
your CTA Service in writing ("CTA Term"). During the CTA Term, (a) you will
receive $20,000 per month as your fee for the CTA Service; (b) if you elect to
continue your group health insurance coverage under the Consolidated
<PAGE>
Sanjay Mittal
September 22, 2003
Page 2

Omnibus Budget Reconciliation Act ("COBRA") after the Termination Date, then the
Company will pay your monthly premium under COBRA throughout the CTA Term and
for a period of 18 months following the month in which the CTA Service
terminates, but in no event will the Company pay your monthly premium under
COBRA after you are no longer eligible for COBRA coverage under the Company's
health plans, according to the requirements under COBRA; (c) your options to
purchase shares of the Company's Common Stock, as described in Section 6 below,
will continue to vest during the CTA Term or while you serve as a member of the
Board; and (d) you will retain your Company email address during the CTA Term or
while you serve as a member of the Board. In no event will the Company require
you to provide more than 20 hours of CTA Service per month. The Company will
reasonably accommodate your schedule and other employment activities such that
you will not be required to perform services at unreasonable times or places or
that interfere with other employment in which you may be engaged. The CTA
Service shall include, but is not limited to, consultation regarding the
strategic technology initiatives and direction of the Company and meeting with
current and prospective customers of the Company. During the CTA Term you will
receive direction from one Company representative designated by the Board. It is
the express intention of you and the Company that you are to render the CTA
Service as an independent contractor, and not as an employee, agent, joint
venturer or partner of the Company. Nothing in this Agreement shall be
interpreted or construed as creating or establishing an employment relationship
between the Company and you. Both you and the Company understand and agree that
during the CTA Term you may, and probably will, perform services for others,
except that you may not undertake to render services that violate this Agreement
or the Proprietary Information Agreement described in Section 13 below and will
not engage in any activity that is in any way competitive with the business or
demonstrably anticipated business of the Company, and will not assist any other
person or organization in competing or in preparing to compete with any business
or demonstrably anticipated business of the Company. During the CTA Term, the
Company will reimburse you for necessary and reasonable business expenses
directly related to your CTA Service that have been previously authorized by the
Board's designated representative, upon your presentation of an itemized account
and appropriate supporting documentation, all in accordance with the Company's
generally applicable policies. You will also receive indemnification with
respect to your CTA Service to the same extent as indemnification is provided
under the indemnification agreement described in Section 13 below.

      5. PERSONAL ITEMS. The Company will allow you to retain the computers (2
laptops, 1 desktop), 2 printers, 1 polycom phone, cellular phone and RIM
Blackberry provided to you by the Company for your home office, provided that
you must return to the Company and delete all information in the computers that
belongs to the Company. You agree that the aggregate value of such items is
$1,500.00. In order to retain these items, you further agree that you will take
all necessary actions to allow the Company to withhold all necessary amounts
from the payment set forth under Section 4 of this Agreement to cover all
applicable withholding taxes resulting from your retention of these items and
agree that you will make any arrangements required by the Company to satisfy the
applicable withholding taxes. The Company will pay the cell phone, DSL and
Blackberry fees and charges for the period during which you serve as the CTA and
following the termination of the CTA Service, you will be responsible for such
fees and charges.
<PAGE>
Sanjay Mittal
September 22, 2003
Page 3

      6. OPTIONS. On September 28, 2001, the Company granted you an option to
purchase 330,000 shares of its Common Stock at an exercise price per share of
$2.40 (the "First Option") and another option to purchase 170,000 shares of its
Common Stock at an exercise price per share of $2.40 (the "Second Option"). On
December 11, 2002, the Company granted you an option to purchase 500,000 shares
of its Common Stock at an exercise price per share of $2.56 (the "Third Option"
and collectively with the First Option and Second Option, known as "Options").
As of the Termination Date, you will be vested in 302,500 of the shares that are
subject to the First Option, 155,833 of the shares that are subject to the
Second Option and 111,111 shares that are subject to the Third Option. The Stock
Option Agreements and applicable stock option plans evidencing the Options will
remain in full force and effect, and you agree to remain bound by such
agreements and option plans. You acknowledge and agree that your termination
from employment with the Company does not result in any vesting acceleration
with respect to the Options, and the Options will only continue to vest
following the Termination Date as you provide CTA Service or service as a member
of the Board. Any other Stock Option Agreements or Stock Purchase Agreements
between you and the Company will also remain in full force and effect.

      7. INITIAL RELEASE OF ALL CLAIMS. In consideration for receiving the
benefits described in Sections 4 and 5 above, you waive, release and promise
never to assert any claims or causes of action, whether or not now known,
against the Company or its predecessors, successors or past or present
subsidiaries, stockholders, directors, officers, employees, consultants,
attorneys, agents, assigns and employee benefit plans with respect to any
matter, including (without limitation) any matter related to your employment
with the Company or the termination of that employment, including (without
limitation) claims to attorneys' fees or costs, claims of wrongful discharge,
constructive discharge, emotional distress, defamation, invasion of privacy,
violation of public policy, personal injury, retaliation, fraud, breach of
contract or breach of the covenant of good faith and fair dealing and any claims
of discrimination or harassment based on sex, age, race, national origin,
disability or any other basis under Title VII of the Civil Rights Act of 1964,
the Fair Labor Standards Act, the Equal Pay Act of 1963, the Americans With
Disabilities Act, the Civil Rights Act of 1866, the Age Discrimination in
Employment Act of 1967 (ADEA), the California Labor Code, the California Fair
Employment and Housing Act, the California Family Rights Act, the Family Medical
Leave Act and all other laws and regulations relating to employment. However,
this release covers only those claims that arose prior to the execution of this
Agreement. Execution of this Agreement does not bar any claim that arises after
execution of this Agreement, including (without limitation) a claim for breach
of this Agreement. The Company waives, releases and promises never to assert any
claims for causes of action, whether or not now known, against you, your heirs
successors or assigns, with respect to any matter, including (without
limitation) any matter related to your employment with the Company, including
(without limitation) claims to attorneys' fees or costs, claims of violation of
any corporate standards or policies, misrepresentation (intentional or
unintentional), defamation, invasion of privacy, violation of public policy,
fraud, breach of contract or breach of the covenant of good faith and fair
dealing. However, this release covers only those claims that arose prior to the
execution of this Agreement. Execution of this Agreement does not bar any claim
that arises after execution of this Agreement, including (without limitation) a
claim for breach of this Agreement.
<PAGE>
Sanjay Mittal
September 22, 2003
Page 4

      8. WAIVER. You and the Company understand that each is releasing
potentially unknown claims, and that you and the Company have limited knowledge
with respect to some of the claims being released. You and the Company
acknowledge that there is a risk that, after signing this Agreement, you or the
Company may learn information that might have affected either or our decision to
enter into this Agreement. You and the Company assume this risk and all other
risks of any mistake in entering into this Agreement. You and the Company agree
that this Agreement is fairly and knowingly made and you and the Company
expressly waive and release any and all rights and benefits under Section 1542
of the California Civil Code (or any analogous law of any other state), which
reads as follows: "A general release does not extend to claims which the
creditor does not know or suspect to exist in his favor at the time of executing
the release, which if known by him must have materially affected his settlement
with the debtor."

      9. SECOND RELEASE OF CLAIMS. Provided you execute and do not revoke the
General Release of All Claims attached hereto as Exhibit A (the "Release") in
accordance with the terms of the Release, the Company agrees to provide you with
the following severance benefits although you otherwise would not have been
entitled to receive any severance pay from the Company: on the date that is
eight days following the execution of the Release and provided you do not revoke
the Release within such period, the Company will make an aggregate severance
payment to you equal to $412,500 (which is equal to eighteen (18) months of your
monthly base salary of $22,916.66 that was in effect on your Termination Date)
in the form of a lump sum payment. Such severance payment will be subject to all
applicable withholding taxes. You understand that you must immediately return
this severance payment to the Company in the event it is determined by the final
judgment in a court of law having proper jurisdiction (after appeals, if
processed) that you breached any provision of this Agreement or the Release.

      10. PROMISE NOT TO SUE. You and the Company agree that neither you nor it
will ever, individually or with or through any other person or entity, commence,
aid in any way (except as required by legal process) or prosecute, or cause or
permit to be commenced or prosecuted, any action or other proceeding based on
any claim that is the subject of this Agreement.

      11. PROPRIETARY INFORMATION. You agree that all Inventions (as defined
below) and all other business, technical and financial information (including,
without limitation, the identity of and information relating to customers or
employees) you develop, learn or obtain during the CTA Term that relate to the
Company or the business or demonstrably anticipated business of the Company or
that are received by or for the Company in confidence, constitute "Proprietary
Information." "Inventions" shall include all inventions (whether or not
patentable), works of authorship, mask works, designs, know-how, ideas and
information made or conceived or reduced to practice, in whole or in part, by
you during the CTA Term. The Company shall own all right, title and interest
(including patent rights, copyrights, trade secret rights, and all other
intellectual property rights) relating to any and all Inventions that are
disclosed pursuant to, arise from or relate to the CTA Service. You shall and
hereby do make all assignments necessary to accomplish the foregoing. You agree
to execute such documents as the Company may reasonably request in order to
further evidence, record, perfect, maintain and enforce such
<PAGE>
Sanjay Mittal
September 22, 2003
Page 4

assignments. If you are unavailable to execute such documents for any reason,
you hereby irrevocably designate and appoint the Company as your agent and
attorney-in-fact to act for and in your behalf to execute and file any document
and to do all other lawfully permitted acts to further the purposes of the
foregoing with the same legal force and effect as if executed by you. You will
hold in confidence and not disclose or, except within the scope of your CTA
Service, use any Proprietary Information. However, you shall not be obligated
under this paragraph with respect to information you can document is or becomes
readily publicly available without restriction through no fault of yours. Upon
termination of your CTA Service, you will promptly return to the Company all
items containing or embodying Proprietary Information (including all copies),
except that you may keep your personal copies of (i) your compensation records,
(ii) materials distributed to stockholders generally and (iii) this Agreement.
You also recognize and agree that you have no expectation of privacy with
respect to the Company's telecommunications, networking or information
processing systems (including, without limitation, stored computer files, email
messages and voice messages) and that your activity and any files or messages on
or using any of those systems may be monitored at any time without notice. Any
such monitoring, if and when it happens, will be performed in accordance with
established Company policies.

      12. NO ADMISSION. Nothing contained in this Agreement will constitute or
be treated as an admission by you or the Company of liability, any wrongdoing or
any violation of law.

      13. OTHER AGREEMENTS. At all times in the future, you will remain bound by
your Proprietary Information and Inventions Agreement with the Company, which
you signed on April 4, 1999 ("Proprietary Information Agreement"), and a copy of
which is attached as Exhibit B, and the indemnification agreement that you have
executed on March 10, 2000 with the Company, a copy of which is attached as
Exhibit C. You agree that Section 7 of the employment agreement between you and
the Company, dated January 1, 2003 (the "Employment Agreement") remains in full
force and effect and agree that in no event are you entitled to any of the
termination benefits described in Section 6 of the Employment Agreement as a
result of your termination from employment, effective as of the Termination
Date, nor will you be entitled to such termination benefits at any time in the
future. Except as expressly provided in this Agreement, this Agreement renders
null and void all prior agreements between you and the Company and constitutes
the entire agreement between you and the Company regarding the subject matter of
this Agreement. This Agreement may be modified only in a written document signed
by you and a duly authorized member of the Board.

      14. COMPANY PROPERTY. You represent that you have returned to the Company
all property that belongs to the Company, including (without limitation) copies
of documents that belong to the Company and files stored on your computer(s)
that contain information belonging to the Company, except that you may retain
the items described in Section 5 above. During your tenure as CTA and a member
of the Board, you are entitled to have a number of confidential documents that
you will immediately return to the Company or destroy once you cease to be in
neither position.
<PAGE>
Sanjay Mittal
September 22, 2003
Page 6

      15. CONFIDENTIALITY OF AGREEMENT. You and the Company agree that neither
you nor it will disclose to others the existence or terms of this Agreement,
except that you may disclose such information (a) to your spouse, attorney or
tax adviser if such individuals agree that they will not disclose to others the
existence or terms of this Agreement, (b) in response to a subpoena or other
legal process requiring said disclosure, or (c) that is in the public domain
other than through your act or acts in violation of this Agreement, and the
Company may disclose the existence or terms of this Agreement (a) to those
officers and directors with a need to know the same, (b) in response to a
subpoena or other legal process requiring said disclosure, (c) if the
information is in the public domain other than through the Company's act or acts
in violation of this Agreement, (d) if such disclosure is required by applicable
law, including but not limited to SEC disclosure and filing requirements, or (e)
if such disclosure is deemed required after consultation with the Company's
outside counsel.

      16. NO DISPARAGEMENT. You agree that you will not make any negative or
disparaging statements (orally or in writing) about the Company or its
stockholders, directors, officers, employees, products, services or business
practices, except as required by subpoena or other compulsory process of law.
The Company agrees that neither its officers nor the members of the Board will
make any negative or disparaging statements (orally or in writing) about you,
your service to the Company or your personal conduct except as required by
subpoena or other compulsory process of law.

      17. SEVERABILITY. If any term of this Agreement is held to be invalid,
void or unenforceable, the remainder of this Agreement will remain in full force
and effect and will in no way be affected, and the parties will use their best
efforts to find an alternate way to achieve the same result.

      18. CHOICE OF LAW. This Agreement will be construed and interpreted in
accordance with the laws of the State of California (other than their
choice-of-law provisions).

      19. EXECUTION. This Agreement may be executed in counterparts, each of
which will be considered an original, but all of which together will constitute
one agreement. Execution of a facsimile copy will have the same force and effect
as execution of an original, and a facsimile signature will be deemed an
original and valid signature.

      Please indicate your agreement with the above terms by signing below.

                                       Very truly yours,

                                       Selectica, Inc.

                                       By:      /s/ Michael Lyons
                                            ----------------------------
                                       Title:   Director
                                               -------------------------
<PAGE>
Sanjay Mittal
September 22, 2003
Page 7

I agree to the terms of this Agreement, and I am voluntarily signing this
release of all claims. I acknowledge that I have read and understand this
Agreement, and I understand that I cannot pursue any of the claims and rights
that I have waived in this Agreement at any time in the future.

/s/ Sanjay Mittal
---------------------------
Signature of Sanjay Mittal

Dated:  9/22/03
<PAGE>
                                    EXHIBIT A

                          GENERAL RELEASE OF ALL CLAIMS

      In consideration of the severance benefits to be provided to Mr. Sanjay
Mittal ("Mittal") by Selectica, Inc. ("the Company"), as described in the letter
agreement to which this General Release of All Claims (the "Release") is
attached as Exhibit A (the "Letter Agreement"), Mittal, on Mittal's own behalf
and on behalf of Mittal's heirs, executors, administrators and assigns, hereby
fully and forever releases and discharges the Company and its directors,
officers, employees, attorneys, consultants, agents, successors, predecessors,
subsidiaries, parent, stockholders, employee benefit plans and assigns (together
called "the Releasees"), from all known and unknown claims and causes of action
including, without limitation, any claims or causes of action arising out of or
relating in any way to Mittal's employment and service with the Company,
including the termination of that employment and service.

      1. Mittal understands and agrees that this Release is a full and complete
waiver of all claims, including (without limitation) claims to attorneys' fees
or costs, claims of wrongful discharge, constructive discharge, breach of
contract, breach of the covenant of good faith and fair dealing, harassment,
retaliation, discrimination, violation of public policy, defamation, invasion of
privacy, interference with a leave of absence, personal injury, fraud or
emotional distress and any claims of discrimination or harassment based on sex,
age, race, national origin, disability or any other basis under Title VII of the
Civil Rights Act of 1964, the Fair Labor Standards Act, the Equal Pay Act of
1963, the Americans With Disabilities Act, the Civil Rights Act of 1866, the Age
Discrimination in Employment Act of 1967 (ADEA), the California Labor Code, the
California Fair Employment and Housing Act, the California Family Rights Act,
the Family Medical Leave Act or any other federal, state, municipal or local law
or regulation relating to employment or employment discrimination. Mittal
further understands and agrees that this waiver includes all claims, known and
unknown, to the greatest extent permitted by applicable law.

      2. Mittal also hereby agrees that nothing contained in this Release shall
constitute or be treated as an admission of liability or wrongdoing or of any
violation of law by the Releasees or Mittal.

      3. In addition, Mittal understands that he is releasing potentially
unknown claims, and that Mittal has limited knowledge with respect to some of
the claims being released. Mittal acknowledges that there is a risk that, after
signing this Release, Mittal may learn information that might have affected
Mittal's decision to enter into this Release. Mittal assumes this risk and all
other risks of any mistake in entering into this Release. Mittal agrees that
this Release is fairly and knowingly made and expressly waives and releases any
and all rights and benefits under Section 1542 of the California Civil Code (or
any analogous law of any other state), which states as follows:

                  A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR
            DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF
            EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY
            AFFECTED HIS SETTLEMENT WITH THE DEBTOR.
<PAGE>
      4. Mittal agrees that he will never, individually or with any other
person, commence, aid in any way (except as required by legal process) or
prosecute, or cause or permit to be commenced or prosecuted, any action or other
proceeding based on any claim that is the subject of this Release.

      5. If any provision of this Release is found to be unenforceable, it shall
not affect the enforceability of the remaining provisions and the court shall
enforce all remaining provisions to the full extent permitted by law.

      6. This Release and the Letter Agreement, including the agreements or
provisions within agreements specified in the Letter Agreement as remaining in
full force and effect, constitute the entire agreement between Mittal and
Releasees with regard to the subject matter of this Release. They supersede any
other agreements, representations or understandings, whether oral or written and
whether express or implied, which relate to the subject matter of this Release.
Mittal understands and agrees that this Release may be modified only in a
written document signed by Mittal and a duly authorized member of the Company's
Board of Directors (other than himself).

      7. Mittal agrees that the Company shall have no duty to provide to Mittal
any severance benefits described in the Letter Agreement unless and until Mittal
has returned to the Company any and all of the Company's property in Mittal's
possession or under Mittal's control (including, but not limited to, keys;
credit cards; access badges; the Company files or documents, including copies
thereof; or facsimile machines, except as allowed by his tenure as CTA or member
of the Company's Board of Directors), except that Mittal may retain certain
personal items described in Section 5 of the Letter Agreement.

      8. This Release shall be construed and interpreted in accordance with the
laws of the State of California.

      9. Mittal understands that Mittal has the right to consult with an
attorney before signing this Release. Mittal also understands that, as provided
under the Older Workers Benefit Protection Act of 1990, Mittal has 21 days after
receipt of this Release to review and consider this Release, discuss it with an
attorney of Mittal's own choosing, and decide to execute it or not execute it.
Mittal also understands that Mittal may revoke this Release during a period of
seven days after Mittal signs it and that this Release will not become effective
for seven days after Mittal signs it (and then only if Mittal does not revoke
it). In order to revoke this Release, within seven days after Mittal executes
this Release, Mittal must deliver to Mike Lyons, a member of the Company's Board
of Directors, a letter stating that he is revoking it.

      10. Mittal understands that if Mittal chooses to revoke this Release
within seven days after Mittal signs it, Mittal will not receive any of the
severance benefits set forth in the Letter Agreement and the Release will have
no effect.

      11. Mittal agrees not to disclose to others the terms of this Release,
except that Mittal may disclose such information (a) to Mittal's spouse and to
Mittal's attorney or accountant in order for such attorney or accountant to
render services to Mittal related to this Release, (b) in
<PAGE>
      12. response to a subpoena or other legal process requiring said
disclosure, or (c) that is in the public domain other than through Mittal's act
or acts in violation of this Agreement.

      13. Mittal states that before signing this Release, Mittal:

            -     Has read it,

            -     Understands it,

            -     Knows that he is giving up important rights,

            -     Is aware of his right to consult an attorney before signing
                  it, and

            -     Has signed it knowingly and voluntarily.

Date:
      ---------------------   ------------------------------------------
                              Signature

                              ------------------------------------------
                              Print Full Name
<PAGE>
                                    EXHIBIT B

           Proprietary Information and Inventions Agreement
<PAGE>
                                    EXHIBIT C
                            Indemnification Agreement<PAGE>

                                                                    EXHIBIT 4.02

                         FLEXTRONICS INTERNATIONAL LTD.

                        1997 EMPLOYEE SHARE PURCHASE PLAN

                          As Adopted September 10, 1997
             As Amended August 27, 1999, September 21, 2000, August
                         29, 2002 and September 30, 2003

         1. ESTABLISHMENT OF PLAN. Flextronics International Ltd. (the
"COMPANY") proposes to grant options for purchase of the Company's Ordinary
Shares to eligible employees of the Company and its Participating Subsidiaries
(as hereinafter defined) pursuant to this Employee Share Purchase Plan (this
"PLAN"). For purposes of this Plan, "PARENT CORPORATION" and "SUBSIDIARY"
(collectively, "PARTICIPATING SUBSIDIARIES") shall have the same meanings as
"parent corporation" and "subsidiary corporation" in Sections 424(e) and 424(f),
respectively, of the Internal Revenue Code of 1986, as amended (the "CODE").
"PARTICIPATING SUBSIDIARIES" are Parent Corporations or Subsidiaries that the
Board of Directors of the Company (the "BOARD") designates from time to time as
corporations that shall participate in this Plan. The Company intends this Plan
to qualify as an "employee stock purchase plan" under Section 423 of the Code
(including any amendments to or replacements of such Section), and this Plan
shall be so construed. Any term not expressly defined in this Plan but defined
for purposes of Section 423 of the Code shall have the same definition herein. A
total of 4,400,000* Ordinary Shares of the Company are reserved for issuance
under this Plan. Such number shall be subject to adjustments effected in
accordance with Section 14 of this Plan.

         2. PURPOSE. The purpose of this Plan is to provide eligible employees
of the Company and Participating Subsidiaries with a convenient means of
acquiring an equity interest in the Company through payroll deductions, to
enhance such employees' sense of participation in the affairs of the Company and
Participating Subsidiaries, and to provide an incentive for continued
employment.

         3. ADMINISTRATION. This Plan shall be administered by the Board or by a
committee of not less than two members of the Board appointed to administer this
Plan (the "COMMITTEE"). As used in this Plan, references to the "Committee"
shall mean either such committee or the Board if no committee has been
established. Subject to the provisions of this Plan and the limitations of
Section 423 of the Code or any successor provision in the Code, all questions of
interpretation or application of this Plan shall be determined by the Committee
and its decisions shall be final and binding upon all participants. Members of
the Committee shall receive no compensation for their services in connection
with the administration of this Plan, other than standard fees as established
from time to time by the Board for services rendered by Board members serving on
Board committees. All expenses incurred in connection with the administration of
this Plan shall be paid by the Company.

         4. ELIGIBILITY. Any employee of the Company or the Participating
Subsidiaries is eligible to participate in an Offering Period (as hereinafter
defined) under this Plan except the following:

            (a) employees who are not employed by the Company or Participating
Subsidiaries one month before the beginning of such Offering Period;

            (b) employees who are customarily employed for twenty (20) hours or
less per week;

            (c) employees who are customarily employed for five (5) months or
less in a calendar year;

            (d) employees who, together with any other person whose shares would
be attributed to such employee pursuant to Section 424(d) of the Code, own
shares or hold options to purchase shares possessing five percent (5%) or more
of the total combined voting power or value of all classes of shares of the
Company or any of its Participating Subsidiaries or who, as a result of being
granted an option under this Plan with respect to such Offering Period, would

-----------------------------
*        The initial number of shares reserved for issuance was 600,000 shares.
         An amendment to increase the number of shares reserved for issuance to
         1,600,000 shares was approved by shareholders on August 27, 1999. An
         amendment to increase the number of shares reserved for issuance to
         2,400,000 shares was approved by shareholders on September 21, 2000. An
         amendment to increase the number of shares reserved for issuance to
         3,400,000 shares was approved by shareholders on August 29, 2002. An
         amendment to increase the number of shares reserved for issuance to
         4,400,000 shares was approved by shareholders on September 30, 2003.
         All share numbers reflect the two-for-one stock splits effected as a
         bonus issue (the Singapore equivalent of a stock dividend) paid on
         December 22, 1998, December 22, 1999 and October 16, 2000.

<PAGE>

own shares or hold options to purchase shares possessing five percent (5%) or
more of the total combined voting power or value of all classes of shares of the
Company or any of its Participating Subsidiaries; and

            (e) individuals who provide services to the Company or any of its
Participating Subsidiaries as independent contractors who are reclassified as
common law employees for any purpose other than federal income and employment
tax purposes.

         5. OFFERING DATES. The offering periods of this Plan (each, an
"OFFERING PERIOD") shall be of six (6) months duration commencing on December 1
and June 1 of each year and ending on May 31 and November 30 of each year. Each
Offering Period shall consist of one (1) six-month purchase period (a "PURCHASE
PERIOD") during which payroll deductions of the participants are accumulated
under this Plan. The first Offering Period shall begin on December 1, 1997. The
first business day of each Offering Period is referred to as the "OFFERING
DATE". The last business day of each Purchase Period is referred to as the
"PURCHASE DATE". The Board shall have the power to change the duration of
Offering Periods or Purchase Periods with respect to offerings (and specifically
shall have the power to change the duration of Offering Periods from six (6)
months to twenty-four (24) months) without shareholder approval if such change
is announced at least fifteen (15) days prior to the scheduled beginning of the
first Offering Period or Purchase Period to be affected.

         6. PARTICIPATION IN THIS PLAN. Eligible employees may become
participants in an Offering Period under this Plan on the first Offering Date
after satisfying the eligibility requirements by delivering a subscription
agreement to the Company's treasury department (the "TREASURY DEPARTMENT") not
later than fifteen (15) days before such Offering Date unless a later time for
filing the subscription agreement authorizing payroll deductions is set by the
Committee for all eligible employees with respect to a given Offering Period. An
eligible employee who does not deliver a subscription agreement to the Treasury
Department by such date after becoming eligible to participate in such Offering
Period shall not participate in that Offering Period or any subsequent Offering
Period unless such employee enrolls in this Plan by filing a subscription
agreement with the Treasury Department not later than fifteen (15) days
preceding a subsequent Offering Date. Once an employee becomes a participant in
an Offering Period, such employee will automatically participate in the Offering
Period commencing immediately following the last day of the prior Offering
Period unless the employee withdraws or is deemed to withdraw from this Plan or
terminates further participation in the Offering Period as set forth in Section
11 below. Such participant is not required to file any additional subscription
agreement in order to continue participation in this Plan.

         7. GRANT OF OPTION ON ENROLLMENT. Enrollment by an eligible employee in
this Plan with respect to an Offering Period will constitute the grant (as of
the Offering Date) by the Company to such employee of an option to purchase on
the Purchase Date up to that number of whole Ordinary Shares of the Company
determined by dividing (a) the amount accumulated in such employee's payroll
deduction account during such Purchase Period by (b) the lower of (i)
eighty-five percent (85%) of the fair market value of an Ordinary Share of the
Company on the Offering Date (but in no event less than the par value of the
Company's Ordinary Shares), or (ii) eighty-five percent (85%) of the fair market
value of an Ordinary Share of the Company on the Purchase Date (but in no event
less than the par value of the Company's Ordinary Shares) and rounding down to
the nearest whole number, provided, however, that the number of Ordinary Shares
of the Company subject to any option granted pursuant to this Plan shall not
exceed the lesser of (a) the maximum number of shares set by the Committee
pursuant to Section 10(c) below with respect to the applicable Purchase Date, or
(b) the maximum number of shares which may be purchased pursuant to Section
10(b) below with respect to the applicable Purchase Date. The fair market value
of the Company's Ordinary Shares shall be determined as provided in Section 8
hereof.

         8. PURCHASE PRICE. The purchase price per share at which an Ordinary
Share of the Company will be sold in any Offering Period shall be eighty-five
percent (85%) of the lesser of:

            (a) The fair market value on the Offering Date; or

            (b) The fair market value on the Purchase Date.

            Notwithstanding the foregoing, in no event may the purchase price of
an Ordinary Share of the Company be less than the par value. For purposes of
this Plan, the term "FAIR MARKET VALUE" means, as of any date, the value of an
Ordinary Share of the Company determined as follows:

                                       2

<PAGE>

                  (a)      if such Ordinary Shares are then quoted on the Nasdaq
                           National Market, the closing price on the Nasdaq
                           National Market on the date of determination as
                           reported in The Wall Street Journal;

                  (b)      if such Ordinary Shares are publicly traded and are
                           then listed on a national securities exchange, the
                           closing price on the date of determination on the
                           principal national securities exchange on which the
                           Ordinary Shares are listed or admitted to trading as
                           reported in The Wall Street Journal;

                  (c)      if such Ordinary Shares are publicly traded but are
                           not quoted on the Nasdaq National Market nor listed
                           or admitted to trading on a national securities
                           exchange, the average of the closing bid and asked
                           prices on the date of determination as reported in
                           The Wall Street Journal;

                  (d)      if none of the foregoing is applicable, by the Board
                           in good faith.

         9. PAYMENT OF PURCHASE PRICE; CHANGES IN PAYROLL DEDUCTIONS; ISSUANCE
OF SHARES.

            (a) The purchase price of the shares is accumulated by regular
payroll deductions made during each Offering Period. The deductions are made as
a percentage of the participant's compensation in one percent (1%) increments
not less than two percent (2%), nor greater than ten percent (10%) or such lower
limit set by the Committee. Compensation shall mean base salary, overtime pay,
commissions, bonuses, and shift premiums not to exceed $250,000 per year,
provided however, that for purposes of determining a participant's base salary,
any election by such participant to reduce his or her regular cash remuneration
under Sections 125 or 401(k) of the Code shall be treated as if the participant
did not make such election. Payroll deductions shall commence on the first
payday following the Offering Date and shall continue to the end of the Offering
Period unless sooner altered or terminated as provided in this Plan.

            (b) A participant may lower (but not increase) the rate of payroll
deductions during an Offering Period by filing with the Treasury Department a
new authorization for payroll deductions, in which case the new rate shall
become effective for the next payroll period commencing more than fifteen (15)
days after the Treasury Department's receipt of the authorization and shall
continue for the remainder of the Offering Period unless changed as described
below. Such change in the rate of payroll deductions may be made at any time
during an Offering Period, but not more than one (1) change may be made
effective during any Offering Period. A participant may increase or decrease the
rate of payroll deductions for any subsequent Offering Period by filing with the
Treasury Department a new authorization for payroll deductions not later than
fifteen (15) days before the beginning of such Offering Period.

            (c) All payroll deductions made for a participant are credited to
his or her account under this Plan and are deposited with the general funds of
the Company. No interest accrues on the payroll deductions. All payroll
deductions received or held by the Company may be used by the Company for any
corporate purpose, and the Company shall not be obligated to segregate such
payroll deductions.

            (d) On each Purchase Date, so long as this Plan remains in effect
and provided that the participant has not submitted a signed and completed
withdrawal form before that date which notifies the Company that the participant
wishes to withdraw from that Offering Period under this Plan and have all
payroll deductions accumulated in the account maintained on behalf of the
participant as of that date returned to the participant, the Company shall apply
the funds then in the participant's account to the purchase of whole Ordinary
Shares of the Company reserved under the option granted to such participant with
respect to the Offering Period to the extent that such option is exercisable on
the Purchase Date. The purchase price per share shall be as specified in Section
8 of this Plan. Any cash remaining in a participant's account after such
purchase of shares shall be refunded to such participant in cash, without
interest; provided, however that any amount remaining in such participant's
account on a Purchase Date which is less than the amount necessary to purchase a
full Ordinary Share of the Company shall be carried forward, without interest,
into the next Purchase Period or Offering Period, as the case may be. In the
event that this Plan has been oversubscribed, all funds not used to purchase
shares on the Purchase Date shall be returned to the participant, without
interest. No Ordinary Shares shall be purchased on a Purchase Date on behalf of
any employee whose participation in this Plan has terminated prior to such
Purchase Date.

                                        3

<PAGE>

            (e) As promptly as practicable after the Purchase Date, the Company
shall issue shares for the participant's benefit representing the shares
purchased upon exercise of his or her option.

            (f) During a participant's lifetime, such participant's option to
purchase shares hereunder is exercisable only by him or her. The participant
will have no interest or voting right in shares covered by his or her option
until such option has been exercised.

         10. LIMITATIONS ON SHARES TO BE PURCHASED.

            (a) No participant shall be entitled to purchase shares under this
Plan at a rate which, when aggregated with his or her rights to purchase shares
under all other employee share purchase plans of the Company or any Subsidiary,
exceeds $25,000 in fair market value, determined as of the Offering Date (or
such other limit as may be imposed by the Code) for each calendar year in which
the employee participates in this Plan.

            (b) No more than two hundred percent (200%) of the number of shares
determined by using eighty-five percent (85%) of the fair market value of an
Ordinary Share of the Company on the Offering Date as the denominator may be
purchased by a participant on any single Purchase Date.

            (c) No participant shall be entitled to purchase more than the
Maximum Share Amount (as defined below) on any single Purchase Date. Not less
than thirty (30) days prior to the commencement of any Offering Period, the
Committee may, in its sole discretion, set a maximum number of shares which may
be purchased by any employee at any single Purchase Date (hereinafter the
"MAXIMUM SHARE AMOUNT"). Until otherwise determined by the Committee, there
shall be no Maximum Share Amount. In no event shall the Maximum Share Amount, if
any, exceed the amounts permitted under Section 10(b) above. If a new Maximum
Share Amount is set, then all participants must be notified of such Maximum
Share Amount prior to the commencement of the next Offering Period. Once the
Maximum Share Amount is set, it shall continue to apply with respect to all
succeeding Purchase Dates and Offering Periods unless revised by the Committee
as set forth above.

            (d) If the number of shares to be purchased on a Purchase Date by
all employees participating in this Plan exceeds the number of shares then
available for issuance under this Plan, then the Company will make a pro rata
allocation of the remaining shares in as uniform a manner as shall be reasonably
practicable and as the Committee shall determine to be equitable. In such event,
the Company shall give written notice of such reduction of the number of shares
to be purchased under a participant's option to each participant affected
thereby.

            (e) Any payroll deductions accumulated in a participant's account
which are not used to purchase shares due to the limitations in this Section 10
shall be returned to the participant as soon as practicable after the end of the
applicable Purchase Period, without interest.

         11. WITHDRAWAL.

            (a) Each participant may withdraw from an Offering Period under this
Plan by signing and delivering to the Treasury Department a written notice to
that effect on a form provided for such purpose. Such withdrawal may be elected
at any time at least fifteen (15) days prior to the end of an Offering Period.

            (b) Upon withdrawal from this Plan, the accumulated payroll
deductions shall be returned to the withdrawn participant, without interest, and
his or her interest in this Plan shall terminate. In the event a participant
voluntarily elects to withdraw from this Plan, he or she may not resume his or
her participation in this Plan during the same Offering Period, but he or she
may participate in any Offering Period under this Plan which commences on a date
subsequent to such withdrawal by filing a new authorization for payroll
deductions in the same manner as set forth above for initial participation in
this Plan.

            (c) If the purchase price on the first day of any current Offering
Period in which a participant is enrolled is higher than the purchase price on
the first day of any subsequent Offering Period, the Company will automatically
enroll such participant in the subsequent Offering Period. Any funds accumulated
in a participant's account prior to the first day of such subsequent Offering
Period will be applied to the purchase of shares on the Purchase Date
immediately prior

                                       4

<PAGE>

to the first day of such subsequent Offering Period. A participant does not need
to file any forms with the Company to automatically be enrolled in the
subsequent Offering Period

         12. TERMINATION OF EMPLOYMENT. Termination of a participant's
employment for any reason, including retirement, death or the failure of a
participant to remain an eligible employee of the Company or of a Participating
Subsidiary, immediately terminates his or her participation in this Plan. In
such event, the payroll deductions credited to the participant's account will be
returned to him or her or, in the case of his or her death, to his or her legal
representative, without interest. For purposes of this Section 12, an employee
will not be deemed to have terminated employment or failed to remain in the
continuous employ of the Company or of a Participating Subsidiary in the case of
sick leave, military leave, or any other leave of absence approved by the Board;
provided that such leave is for a period of not more than ninety (90) days or
reemployment upon the expiration of such leave is guaranteed by contract or
statute.

         13. RETURN OF PAYROLL DEDUCTIONS. In the event a participant's interest
in this Plan is terminated by withdrawal, termination of employment or
otherwise, or in the event this Plan is terminated by the Board, the Company
shall promptly deliver to the participant all payroll deductions credited to
such participant's account. No interest shall accrue on the payroll deductions
of a participant in this Plan.

         14. CAPITAL CHANGES. Subject to any required action by the shareholders
of the Company, the number of Ordinary Shares covered by each option under this
Plan which has not yet been exercised and the number of Ordinary Shares which
have been authorized for issuance under this Plan but have not yet been placed
under option (collectively, the "RESERVES"), as well as the price of each
Ordinary Share covered by each option under this Plan which has not yet been
exercised, shall be proportionately adjusted for any increase or decrease in the
number of issued and outstanding Ordinary Shares of the Company resulting from a
stock split or the payment of a stock dividend (but only on the Ordinary Shares)
or any other increase or decrease in the number of issued and outstanding
Ordinary Shares effected without receipt of any consideration by the Company;
provided, however, that (a) conversion of any convertible securities of the
Company shall not be deemed to have been "effected without receipt of
consideration" and (b) no such adjustment shall be made if as a result, the
purchase price for each Ordinary Share shall fall below the par value thereof
and if such adjustment would but for this paragraph (b) result in the purchase
price being less than the par value of an Ordinary Share, the purchase price
payable shall be the par value of an Ordinary Share. Such adjustment shall be
made by the Committee, whose determination shall be final, binding and
conclusive. Except as expressly provided herein, no issue by the Company of
shares of any class, or securities convertible into shares of any class, shall
affect, and no adjustment by reason thereof shall be made with respect to, the
number or price of Ordinary Shares subject to an option.

         In the event of the proposed dissolution or liquidation of the Company,
the Offering Period will terminate immediately prior to the consummation of such
proposed action, unless otherwise provided by the Committee. The Committee may,
in the exercise of its sole discretion in such instances, declare that the
options under this Plan shall terminate as of a date fixed by the Committee and
give each participant the right to exercise his or her option as to all of the
optioned shares, including shares which would not otherwise be exercisable. In
the event of (i) a merger or consolidation in which the Company is not the
surviving corporation (other than a merger or consolidation with a wholly-owned
subsidiary, a reincorporation of the Company in a different jurisdiction, or
other transaction in which there is no substantial change in the shareholders of
the Company or their relative share holdings and the options under this Plan are
assumed, converted or replaced by the successor corporation, which assumption
will be binding on all participants), (ii) a merger in which the Company is the
surviving corporation but after which the shareholders of the Company
immediately prior to such merger (other than any shareholder that merges, or
which owns or controls another corporation that merges, with the Company in such
merger) cease to own their shares or other equity interest in the Company, (iii)
the sale of substantially all of the assets of the Company, or (iv) the
acquisition, sale, or transfer of more than 50% of the outstanding shares of the
Company by tender offer or similar transaction, each option under this Plan may
be assumed or an equivalent option may be substituted by such successor
corporation or a parent or subsidiary of such successor corporation. In the
event such surviving corporation refuses to assume or substitute options under
this Plan, (i) this Plan will terminate upon the consummation of such
transaction, unless otherwise provided by the Committee, and (ii) the Committee
may declare that the options under this Plan shall terminate as of a date fixed
by the Committee, and give each Participant the right to exercise such
participant's option as to all of the optioned shares. If the Committee makes an
option fully exercisable in the event of a merger, consolidation or sale of
assets, the Committee shall notify the participant that the option shall be
fully exercisable for a certain period, and the option and this Plan will
terminate upon the expiration of such period.

                                       5

<PAGE>

         The Committee may, if it so determines in the exercise of its sole
discretion, also make provision for adjusting the Reserves, as well as the price
per share of Ordinary Shares covered by each outstanding option, in the event
that the Company effects one or more reorganizations, recapitalizations, rights
offerings or other increases or reductions of its outstanding Ordinary Shares,
or in the event of the Company being consolidated with or merged into any other
corporation, provided however, that no such adjustment shall be made if as a
result, the purchase price for each Ordinary Share would fall below the par
value thereof and if such adjustment would result in the purchase price being
less than the par value of an Ordinary Share, the purchase price payable shall
be the par value of an Ordinary Share.

         15. NONASSIGNABILITY. Neither payroll deductions credited to a
participant's account nor any rights with regard to the exercise of an option or
to receive shares under this Plan may be assigned, transferred, pledged or
otherwise disposed of in any way (other than by will or the laws of descent and
distribution) by the participant. Any such attempt at assignment, transfer,
pledge or other disposition shall be void and without effect.

         16. REPORTS. Individual accounts will be maintained for each
participant in this Plan. Each participant shall receive promptly after the end
of each Purchase Period a report of his or her account setting forth the total
payroll deductions accumulated, the number of shares purchased, the per share
price thereof and the remaining cash balance, if any, carried forward to the
next Purchase Period or Offering Period, as the case may be.

         17. NOTICE OF DISPOSITION. Each participant shall notify the Company if
the participant disposes of any of the shares purchased in any Offering Period
pursuant to this Plan if such disposition occurs within two (2) years from the
Offering Date or within one (1) year from the Purchase Date on which such shares
were purchased (the "NOTICE PERIOD"). Unless such participant is disposing of
any of such shares during the Notice Period, such participant shall keep the
certificates representing such shares in his or her name (and not in the name of
a nominee) during the Notice Period. The Company may, at any time during the
Notice Period, place a legend or legends on any certificate representing shares
acquired pursuant to this Plan requesting the Company's transfer agent to notify
the Company of any transfer of the shares. The obligation of the participant to
provide such notice shall continue notwithstanding the placement of any such
legend on the certificates.

         18. NO RIGHTS TO CONTINUED EMPLOYMENT. Neither this Plan nor the grant
of any option hereunder shall confer any right on any employee to remain in the
employ of the Company or any Participating Subsidiary, or restrict the right of
the Company or any Participating Subsidiary to terminate such employee's
employment.

         19. EQUAL RIGHTS AND PRIVILEGES. All eligible employees shall have
equal rights and privileges with respect to this Plan so that this Plan
qualifies as an "employee stock purchase plan" within the meaning of Section 423
or any successor provision of the Code and the related regulations. Any
provision of this Plan which is inconsistent with Section 423 or any successor
provision of the Code shall, without further act or amendment by the Company,
the Committee or the Board, be reformed to comply with the requirements of
Section 423. This Section 19 shall take precedence over all other provisions in
this Plan.

         20. NOTICES. All notices or other communications by a participant to
the Company under or in connection with this Plan shall be deemed to have been
duly given when received in the form specified by the Company at the location,
or by the person, designated by the Company for the receipt thereof.

         21. TERM; SHAREHOLDER APPROVAL. This Plan will become effective on the
date that it is adopted by the Board. This Plan shall be approved by the
shareholders of the Company, in any manner permitted by applicable corporate
law, within twelve (12) months before or after the date this Plan is adopted by
the Board. No purchase of shares pursuant to this Plan shall occur prior to such
shareholder approval. This Plan shall continue until the earlier to occur of (a)
termination of this Plan by the Board (which termination may be effected by the
Board at any time), (b) issuance of all of the Ordinary Shares reserved for
issuance under this Plan, or (c) ten (10) years from the adoption of this Plan
by the Board.

         22. CONDITIONS UPON ISSUANCE OF SHARES; LIMITATION ON SALE OF SHARES.
Shares shall not be issued with respect to an option unless the exercise of such
option and the issuance and delivery of such shares pursuant thereto shall
comply with all applicable provisions of law, domestic or foreign, including,
without limitation, the Securities Act of 1933, as amended, the Securities
Exchange Act of 1934, the rules and regulations promulgated thereunder, and the

                                       6

<PAGE>

requirements of any stock exchange or automated quotation system upon which the
shares may then be listed, and shall be further subject to the approval of
counsel for the Company with respect to such compliance.

         23. APPLICABLE LAW. The Plan shall be governed by the substantive laws
of Singapore.

         24. AMENDMENT OR TERMINATION OF THIS PLAN. The Board may at any time
amend, terminate or extend the term of this Plan, except that any such
termination cannot affect options previously granted under this Plan, nor may
any amendment make any change in an option previously granted which would
adversely affect the right of any participant, nor may any amendment be made
without approval of the shareholders of the Company obtained in accordance with
Section 21 hereof within twelve (12) months of the adoption of such amendment
(or earlier if required by Section 21) if such amendment would:

            (a) increase the number of shares that may be issued under this
Plan; or

            (b) change the designation of the employees (or class of employees)
eligible for participation in this Plan.

                                       7

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