Document:

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                                                                   EXHIBIT 10.06

                    LEAVE OF ABSENCE AND SEVERANCE AGREEMENT
                           (PRESENTED: JULY 13, 2000)

This Leave of Absence and Severance Agreement hereafter, (the "Agreement") made
and entered into as of July 13, 2000, by and between Kellogg Company, a Delaware
corporation ("the Company") and John D. Cook, an individual ("Employee").

PURPOSE

The purpose of this Leave of Absence and Severance Agreement is to set forth the
arrangements with respect to Employee's resignation as an officer of the
Company, and its subsidiaries, divisions and affiliates, and related matters,
effective July 21, 2000. As of that date, Employee is relieved of all his
titles, duties, responsibilities, and authority as an officer and otherwise with
respect to the Company. This date shall be considered the Employee's "last day
worked."

TERMS AND CONDITIONS

   A.    Except as otherwise provided in this Agreement, for the period
         beginning July 21, 2000, through August 31, 2000, Employee will be an
         "employee" ON A PAID LEAVE OF ABSENCE. During this paid leave of
         absence, Employee shall receive his regularly scheduled salary
         payments. Except as otherwise provided herein, benefits for Employee
         and his eligible dependents (as outlined in "A Guide To Your
         Medical/Mental/Prescription Drug Benefits", as amended, and under the
         Executive Income Survivor Plan, subject to the respective terms and
         provisions thereof, including any amendment or alteration thereof after
         the date of this Agreement) shall be continued during the paid leave of
         absence period ending August 31, 2000.

         For the period beginning September 1, 2000 and continuing through July
         20, 2003, Employee will be an "employee" on an UNPAID LEAVE OF ABSENCE
         for the sole purpose of stock option and stock grant vesting, as more
         particularly described in Paragraph D. During Employee's paid and
         unpaid leaves of absence, Employee shall not hold any title or position
         with the Company, and Employee shall have no titles, duties,
         responsibilities or authority with respect to the Company, its business
         and/or operations.

   B.    As more fully provided herein below, the lump sum payment described
         herein is in consideration of Employee's release of any and all cause
         or causes of action he has, has had, or may have against the Company.

         Within thirty (30) days of September 1, 2000 Employee shall be paid a
         lump sum payment equal to $2,121,600 (two million, one hundred
         twenty-one thousand, six hundred dollars), less applicable deductions,
         upon execution of this Agreement. The amount payable to Employee under
         this Agreement is consistent with the severance

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         terms of Employee's January 26, 1999 (revised from original January 20,
         1999) Employment Agreement.

         All tax liability, with respect to any and all payments or services
         received by Employee under this Agreement (other than employer
         withholding and employer payroll taxes), will be Employee's
         responsibility.

         Upon payment of the lump sum amounts in this Agreement, Employee's
         right to all other benefits including, but not limited to, medical,
         dental, short- and long-term disability life/AD&D insurances,
         eligibility for pension credited service, EAP assistance, eligibility
         to participate in the Matching Grants Program, eligibility to
         contribute and/or receive matching for the savings and investment plan,
         except as specifically provided in this Agreement, shall terminate at
         the end of the PAID leave of absence period (i.e., August 31, 2000).

         Continued insurance coverage pursuant to COBRA regulations and
         conversion privileges, if any, will be available to Employee at the end
         of the paid leave of absence period. Employee shall be responsible for
         the payment of all premiums for any continuation period. Additional
         information will be sent at a later date.

C.       Within sixty (60) days of the last day worked, the Company will pay to
         Employee that sum which is equivalent to all unused, earned, accrued
         prorated vacation of Employee as of the last day worked. Employee shall
         not be entitled to any future vacation pay accruals from and after the
         last day worked.

D.       Employee's right to exercise all nonqualified stock options and stock
         grants pursuant to the Company the 1991 Key Employee Long-Term
         Incentive Plan ("the Plans"), shall continue only through July 20, 2003
         of the unpaid leave of absence period, subject to and administered in
         accordance with the respective option grants and Plan provisions.

         This includes employee's right to exercise the 200,000 (two hundred
         thousand) stock option grants awarded as part of Employee's sign-on
         bonus and Employment Agreement terms and conditions dated January 26,
         1999. The ability to utilize the accelerated ownership feature of the
         Plans shall continue for eligible stock options, throughout the unpaid
         leave of absence period, unless this feature is altered, modified
         and/or otherwise terminated earlier. Any stock option grants and/or
         stock grants not exercised in accordance with and subject to "the
         Plans", by July 20, 2003, shall expire.

E.       The Company will pay Employee for financial planning and/or tax advice
         for 2000 only, up to $10,000.

F.       Employee will be eligible, at the Company's expense, for secretarial
         assistance from a designated Kellogg employee during the consulting
         period as outlined in this Paragraph H of this Agreement.

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G.       The Company shall pay a one-time lump sum of $150,000 (one hundred
         fifty thousand dollars) for any and all moving expenses incurred
         post-termination. Applicable taxes and withholding shall be deducted
         from this lump sum amount. This lump sum relocation payment shall be
         paid within thirty (30) days of the end of the paid leave of absence
         period.

H.       Employee agrees to make himself available at mutually convenient times
         for consulting to the Company until December 31, 2000 or until he
         secures full-time employment, whichever is earlier. Employee agrees
         that no further consideration shall be paid for such consulting
         services.

I.       Employee will be eligible for outplacement assistance at the Company's
         expense, by a mutually agreeable agency.

J.       In further consideration of the following noncompete provisions,
         Employee agrees that monetary consideration and benefits provided under
         this Agreement includes separate consideration for agreeing to the
         following non-competition restrictions. Employee agrees that, for the
         respective Restricted Periods (as hereinafter defined), Employee shall
         not:

         (i) accept full-time employment, for or on behalf of the following
         companies that compete in the cereal, meat alternative and/or
         convenience foods business: Gardenburger, General Mills, Post, Quaker
         (foods), Nabisco, Frito Lay, Pillsbury, Malto Meal, Ralcorp Cereal,
         and/or other private label cereal companies and/or

         (ii) provide consulting services to, for or with any person, firm,
         partnership, corporation or other business relating directly or
         indirectly to the manufacture, production, distribution, selling and/or
         marketing of any of the products (as defined below) in the geographic
         areas (as defined herein), including specifically, but not limited to,
         the following competing companies: Gardenburger, Post, General Mills,
         Quaker, Nabisco, Frito Lay, Pillsbury, Malto Meal, Ralcorp Cereal
         and/or other private label cereal company. However, nothing in this
         paragraph shall prohibit Employee from providing consulting services to
         food and/or beverage companies and/or their respective divisions with
         respect to products other than the Products.

         (iii) directly or indirectly, permit any business firm which Employee,
         individually or jointly with others may own, manage, operate, or
         control, to engage in the manufacture, production, distribution, sale
         or marketing of any of the Products in the Geographic Area excluding
         ownership of publicly traded securities, and/or

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         (iv) directly or indirectly participate with any person, firm,
         partnership, corporation, or other business whose efforts and/or
         intentions include purchasing and/or considering or evaluating for
         purchase, acquisition, or takeover the Company and/or any of its
         divisions, subsidiaries, affiliates, or related entities during the
         Restricted Period within the Geographic Area, as defined under this
         Agreement and/or

         (v) directly or indirectly solicit or attempt to solicit for employment
         any employee, manager, director, officer of Kellogg Company or its
         affiliates or related businesses and/or

         (vi) call upon, solicit, divert or take away or attempt to take away
         the business or patronage of any customer of the Company.

         For purposes of this non-compete provision, the term "Products" shall
         mean any ready-to-eat cereal products, any meat alternative product,
         toaster pastries, cereal bars, granola bars, frozen waffles, crispy
         marshmallow squares, and/or any other similar grain-based convenience
         food. For purposes of this non-compete provision, the term "Geographic
         Area" shall mean any country in the world where the Company (including
         any subsidiary, division or affiliate thereof) manufactures, produces,
         distributes, sells or markets any of the Products at any time during
         the applicable Restricted Period (as defined below). For purposes of
         this paragraph, the Restricted Period with respect to the Products
         shall be two (2) years from the date of this Agreement.

         To prevent any misunderstanding and conflicts regarding activities that
         may violate these promises Employee has made in this noncompetition
         agreement, Employee may, at his option, consult with the Company
         (specifically, the Executive Vice President, Corporate Development,
         General Counsel and Secretary, Janet L. Kelly) to discuss proposed
         actions to determine whether or not they may be violative from the
         Company's point of view.

         Employee acknowledges that a violation of the terms of this Noncompete
         provision may give rise to irreparable injury to the Company
         inadequately compensable in damages, and accordingly, Employee agrees
         that the Company may seek injunctive relief against such breach or
         threatened breach, in addition to any other legal remedies which may be
         available, including recovery of monetary damages. In any action
         successfully brought by the Company against Employee to enforce the
         rights of the Company under this Noncompete provision, the Company
         shall also be entitled to recover cost of the action, (exclusive of
         attorney's fees) and the period of the restrictions stated above shall
         be deemed to commence upon the entry of the Court's Order for relief.

K.       As a result of these lump sum payments, the Company, its subsidiaries,
         divisions and affiliates (including the directors, officers and
         employees of any of them) shall have no further obligations of any kind
         or nature to Employee, including, without limitation,

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         obligations for any other termination, severance, bonus, etc., except
         as specifically provided herein, and except as may be provided under
         the applicable eligible Company benefit plans in accordance with their
         terms.

L.       Employee further agrees to and shall return to the Company no later
         than his last day worked, without limitation, all files, documents,
         correspondence, memoranda, customer and client lists, prospect lists,
         subscription lists, contracts, pricing policies, operational methods,
         marketing plans or strategies, product development techniques or plans,
         business acquisition plans, employee records, technical processes,
         designs and design projects, inventions, research project
         presentations, proposals, quotations, data, notes, records,
         photographic slides, photographs, posters, manuals, brochures, internal
         publications, books, films, drawings, videos, sketches, plans,
         outlines, computer disks, computer files, work plans, specifications,
         credit cards, keys (including elevator, pass, building and door keys),
         identification cards, and any other documents, writings and materials
         that Employee came to possess or otherwise acquire as a result of
         and/or in connection with the Company. Should Employee later find any
         Company property in his possession, Employee agrees to immediately
         return it. Except for key/pass for access to temporary office/secretary
         and any materials used while consulting to Kellogg as per paragraph H.

M.       Employee agrees that he will not divulge any/all proprietary and/or
         confidential business information, except to the extent required
         pursuant to a legal subpoena or a legal proceeding. Employee agrees
         that any and all information regarding the terms and conditions of this
         Agreement shall be kept confidential and not disclosed to anyone,
         except Employee's spouse, tax accountant and/or attorney.

N.       Employee agrees not to take any wrongful action with the intention of
         damaging the Company. Employee agrees to cooperate with the Company in
         connection with any and all existing or future investigations or
         litigation of any nature brought against it or its affiliates involving
         events which occurred during his employment with the Company. The
         Company will consider the convenience to the Employee and his other
         commitments in the timing and nature of its request for his cooperation
         hereunder and he shall not be considered in breach of his obligations
         hereunder if these commitments preclude his availability to the Company
         at any time or place. Employee agrees to notify the Company immediately
         if subpoenaed or asked to appear as a witness in any matter related to
         the Company or its affiliates. Nothing herein shall prevent Employee
         from communicating with or participating in any government
         investigation.

O.       Employee has carefully read this Leave of Absence and Severance
         Agreement and understands its contents. Employee recognizes that he
         will have no further job responsibilities at the Company.

P.       Subject to the Company's performance of its obligations under this
         Agreement, on behalf of Employee, his heirs, executors and
         administrators, Employee irrevocably and

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         unconditionally releases, waives and forever discharges the Company,
         its owners, stockholders, affiliates, subsidiaries, agents, directors,
         officers, employees, attorneys, representatives, insurance carriers,
         attorneys, advisors, and their predecessors, successors, heirs,
         executors, administrators and assigns from any and all claims, demands
         and causes of action he now has or may claim to now have arising from
         or relating in any way to his employment, leave of absence, or
         separation of employment. This includes, but is not limited to, all
         claims under the Age Discrimination in Employment Act of 1967 (as
         amended), Title VII of the Civil Rights Act of 1964, as amended,
         Section 1981 of the Civil Rights Act of 1986, as amended, the Civil
         Rights Act of 1991, the Elliott-Larsen Civil Rights Act and any other
         employment discrimination laws, the Family Medical Leave Act of 1993,
         the Rehabilitation Act of 1993, the Equal Pay Act of 1963, the Uniform
         Services Employment and Reemployment Rights Act of 1964, Americans with
         Disabilities Act, the Workers Adjustment and Retraining Notification
         Act (WARN), claims for attorney fees, and any common law or other
         federal, state or local law or ordinance.

         Employee agrees that this Leave of Absence and Severance Agreement is
         intended to and shall preclude any claim that his separation was in
         retaliation for exercising any right to which Employee is entitled
         under the provisions of an employee benefit plan, or for the purpose of
         interfering with the attainment of any right to which Employee may
         become entitled under such a plan or under the Employee Retirement
         Income Security Act of 1974, as amended, in violation of Section 510 of
         ERISA, 29 USC Sec. 1140, except as specifically altered and/or modified
         by the Leave of Absence and Severance Agreement. Nothing in the
         Agreement shall be construed as barring any other claims under Section
         502 ERISA.

         Employee agrees he has not filed any charges, claims, or lawsuits
         against the Company involving any aspect of his employment that have
         not been terminated as of the date of this Agreement. If Employee has
         filed any charges, claims, or lawsuits against the Company, Employee
         agrees to seek immediate dismissal with prejudice and provide written
         confirmation immediately (i.e., court order, and/or agency
         determination) as a condition to receiving any benefits under this
         Agreement. Employee additionally waives and releases any right he may
         have to recover in any lawsuit or proceeding brought by him, an
         administrative agency, or any other person on his behalf or which
         includes him in any class involving any aspect of his employment. If
         Employee intentionally breaches any portion of this Paragraph, Employee
         acknowledges that he will be liable for all expenses, including costs
         and reasonable attorney's fees incurred by any entity released in
         defending the lawsuit or claim, regardless of the outcome.

Q.       Employee has been advised to seek legal counsel to understand its full
         force and effect. Employee has been given the opportunity to consult
         with a lawyer.

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R.       Employee agrees and acknowledges that the consideration (severance pay
         and benefits) described in this Agreement is in full settlement of any
         and all such aforementioned claims, demands and causes of action he has
         or may have.

S.       The Company agrees to indemnify, hold and save harmless Employee from
         and against any and all claims, liens, demands, damages, liability,
         actions, causes of action, cooperation with future investigations,
         settlement costs, and approved attorney's fees and expenses sustained
         or asserted against Employee arising out of, resulting from, or
         attributable to any acts or omissions or alleged acts or omissions of
         Employee during his employment with the Company or in connection with
         the Employee's fulfillment of his obligations under Paragraph H of this
         Agreement; provided however, that the Company shall not be liable
         hereunder to indemnify or hold and save harmless Employee against
         liability for damages arising during the term of his employment
         involving willful misconduct, theft, malfeasance, unlawful activity,
         and/or immorality. The Company hereby releases Employee from any and
         all claims, liens, demands, damages, liability, actions, causes of
         action it may have against Employee as a result of Employee's
         employment, or any services rendered by him in the performance of his
         duties for the Company.

T.       Employee has disclosed to the Company any information in his possession
         concerning any conduct involving the Company that Employee has any
         reason to believe involves any false claims to the United States or is
         or may be unlawful or violates Company Policy in any respect.

U.       Employee signs this Leave of Absence and Severance Agreement knowingly
         and voluntarily and without coercion with full intent to release the
         Company, its subsidiaries, affiliates, agents, employees, directors,
         shareholders and any other parties acting on behalf of the Company, to
         the extent provided in this Agreement.

V.       Employee understands and agrees that signing this Leave of Absence and
         Severance Agreement and accepting the consideration for it shall not be
         deemed or construed as an admission of liability or responsibility at
         any time for any purpose. Liability for any and all claims is expressly
         denied by Kellogg Company.

W.       Employee also understands that the Company is not obligated to offer
         employment to him now or in the future.

X.       Employee understands that the Nondisclosure Confidentiality Agreement
         that he signed on his date of hire shall remain in full force and
         effect indefinitely.

Y.       Employee and Company agree, subject to any obligations under applicable
         law, that neither will make or cause to be made any statements that
         disparage each other and/or damage the reputation of the Company or any
         of its affiliates, agents, officers, directors, managers, or employees.

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Z.       Employee agrees that if any provision of this Leaves of Absence and
         Severance Agreement is invalid or unenforceable, it will not affect the
         validity or enforceability of any other provision of this Agreement
         which shall remain in full force and effect.

AA       Employee agrees that the construction, interpretation, and performance
         of this Agreement shall be governed by the laws of Michigan, including
         conflict of laws. It is agreed that any controversy, claim or dispute
         between the parties, directly or indirectly, concerning this Agreement
         or the breach thereof shall only be resolved in the Circuit Court of
         Calhoun County, or the United States District Court for the Western
         District of Michigan, whichever court has jurisdiction over the subject
         matter thereof, and the parties hereby submit to the jurisdiction of
         said courts.

BB       For purposes of any construction or interpretation of this Leave of
         Absence and Severance Agreement, all terms and provisions thereof shall
         be deemed to have been mutually drafted by both of the parties.

CC       Employee acknowledges and agrees that this is the entire Leave of
         Absence and Severance Agreement and the only promises made to him are
         those contained within this document.

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of
the day and date first above written in Battle Creek, Michigan.

KELLOGG COMPANY

By:
    ---------------------------------            -------------------------------
Carlos M. Gutierrez                              John D. Cook
Chairman of the Board,
President and Chief Executive Officer

-------------------                              --------------------
Date                                             Date

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                                                                    EXHIBIT 10.3

                              NET PERCEPTIONS, INC.

                                 2000 STOCK PLAN

                      (AS ADOPTED EFFECTIVE APRIL 20, 2000)

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                                                                    EXHIBIT 10.3

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>

                                                                                                                Page
<S>                                                                                                            <C>
ARTICLE 1.  INTRODUCTION..........................................................................................1

ARTICLE 2.  ADMINISTRATION........................................................................................1
         2.1  Committee Composition...............................................................................1
         2.2  Committee Responsibilities..........................................................................1

ARTICLE 3.  SHARES AVAILABLE FOR GRANTS...........................................................................1
         3.1  Basic Limitation....................................................................................1
         3.3  Additional Shares...................................................................................2

ARTICLE 4.  ELIGIBILITY...........................................................................................2

ARTICLE 5.  OPTIONS
         5.1  Stock Option Agreement..............................................................................2
         5.2  Number of Shares....................................................................................2
         5.3  Exercise Price......................................................................................2
         5.4  Exercisability and Term.............................................................................2
         5.5  Modification or Assumption of Options...............................................................3
         5.6  Buyout Provisions...................................................................................3

ARTICLE 6.  PAYMENT FOR OPTION SHARES.............................................................................3
         6.1  General Rule........................................................................................3
         6.2  Surrender of Stock..................................................................................3
         6.3  Exercise/Sale.......................................................................................3
         6.4  Exercise/Pledge.....................................................................................3
         6.5  Promissory Note.....................................................................................4
         6.6  Other Forms of Payment..............................................................................4

ARTICLE 7.  RESTRICTED SHARES.....................................................................................4
         7.1  Restricted Stock Agreement..........................................................................4
         7.2  Payment for Awards..................................................................................4
         7.3  Vesting Conditions..................................................................................4
         7.4  Voting and Dividend Rights..........................................................................4

ARTICLE 8.  CHANGE IN CONTROL.....................................................................................5
         8.1  Effect of Change in Control.........................................................................5
         8.2  Involuntary Termination.............................................................................5

ARTICLE 9.  PROTECTION AGAINST DILUTION...........................................................................5
         9.1  Adjustments.........................................................................................5
         9.2  Dissolution or Liquidation..........................................................................5
         9.3  Reorganizations.....................................................................................6

</TABLE>

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                                                                    EXHIBIT 10.3

<TABLE>
<S>                                                                                                            <C>
ARTICLE 10.  DEFERRAL OF DELIVERY OF SHARES.......................................................................6

ARTICLE 11.  AWARDS UNDER OTHER PLANS.............................................................................6

ARTICLE 12.  LIMITATION ON RIGHTS.................................................................................6
         12.1  Retention Rights...................................................................................6
         12.2  Stockholders' Rights...............................................................................7
         12.3  Regulatory Requirements............................................................................7

ARTICLE 13.  WITHHOLDING TAXES....................................................................................7
         13.1  General............................................................................................7
         13.2  Share Withholding..................................................................................7

ARTICLE 14.  FUTURE OF THE PLAN...................................................................................7
         14.1  Term of the Plan...................................................................................7
         14.2  Amendment or Termination...........................................................................8

ARTICLE 15.  DEFINITIONS..........................................................................................8

ARTICLE 16.  EXECUTION...........................................................................................11
</TABLE>

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                                                                    EXHIBIT 10.3

                              NET PERCEPTIONS, INC.

                                 2000 STOCK PLAN

     ARTICLE 1. INTRODUCTION.

         The Plan was adopted by the Board effective April 20, 2000. The purpose
of the Plan is to promote the long-term success of the Company and the creation
of stockholder value by (a) encouraging Employees and Consultants to focus on
critical long-range objectives, (b) encouraging the attraction and retention of
Employees and Consultants with exceptional qualifications and (c) linking
Employees and Consultants directly to stockholder interests through increased
stock ownership. The Plan seeks to achieve this purpose by providing for Awards
in the form of Restricted Shares or Options (which shall constitute nonstatutory
stock options).

         The Plan shall be governed by, and construed in accordance with, the
laws of the State of Delaware (except their choice-of-law provisions).

     ARTICLE 2. ADMINISTRATION.

         2.1 COMMITTEE COMPOSITION. The Committee shall administer the Plan. The
Committee shall consist exclusively of one or more directors of the Company, who
shall be appointed by the Board.

         2.2 COMMITTEE RESPONSIBILITIES. The Committee shall (a) select the
Employees and Consultants who are to receive Awards under the Plan, (b)
determine the type, number, vesting requirements and other features and
conditions of such Awards, (c) interpret the Plan and (d) make all other
decisions relating to the operation of the Plan. The Committee may adopt such
rules or guidelines as it deems appropriate to implement the Plan. The
Committee's determinations under the Plan shall be final and binding on all
persons.

     ARTICLE 3. SHARES AVAILABLE FOR GRANTS.

         3.1 BASIC LIMITATION. Common Shares issued pursuant to the Plan may be
authorized but unissued shares or treasury shares. The aggregate number of
Options and Restricted Shares awarded under the Plan shall not exceed (a)
500,000 plus (b) the additional Common Shares described in Section 3.2. The
limitation of this Section 3.1 shall be subject to adjustment pursuant to
Article 8.

         3.2 ADDITIONAL SHARES. If Options are forfeited or terminate for any
other reason before being exercised, then the corresponding Common Shares shall
again become available for the grant of Options or Restricted Shares under the
Plan. If Restricted Shares or Common Shares issued upon the exercise of Options
are forfeited, then such Common Shares shall again become available for the
grant of Options and Restricted Shares under the Plan.

<PAGE>   5
                                                                    EXHIBIT 10.3

     ARTICLE 4. ELIGIBILITY.

         Employees and Consultants shall be eligible for the grant of Awards,
except that members of the Board and individuals who are considered officers of
the Company under the rules of the National Association of Securities Dealers
shall not be eligible for the grant of Awards.

     ARTICLE 5. OPTIONS.

         5.1 STOCK OPTION AGREEMENT. Each grant of an Option under the Plan
shall be evidenced by a Stock Option Agreement between the Optionee and the
Company. Such Option shall be subject to all applicable terms of the Plan and
may be subject to any other terms that are not inconsistent with the Plan. The
provisions of the various Stock Option Agreements entered into under the Plan
need not be identical. Options may be granted in consideration of a reduction in
the Optionee's other compensation. A Stock Option Agreement may provide that a
new Option will be granted automatically to the Optionee when he or she
exercises a prior Option and pays the Exercise Price in the form described in
Section 6.2.

         5.2 NUMBER OF SHARES. Each Stock Option Agreement shall specify the
number of Common Shares subject to the Option and shall provide for the
adjustment of such number in accordance with Article 8.

         5.3 EXERCISE PRICE. Each Stock Option Agreement shall specify the
Exercise Price; provided that the Exercise Price shall in no event be less than
85% of the Fair Market Value of a Common Share on the date of grant. A Stock
Option Agreement may specify an Exercise Price that varies in accordance with a
predetermined formula while the Option is outstanding.

         5.4 EXERCISABILITY AND TERM. Each Stock Option Agreement shall specify
the date or event when all or any installment of the Option is to become
exercisable. The Stock Option Agreement shall also specify the term of the
Option. A Stock Option Agreement may provide for accelerated exercisability in
the event of the Optionee's death, disability or retirement or other events and
may provide for expiration prior to the end of its term in the event of the
termination of the Optionee's service.

         5.5 MODIFICATION OR ASSUMPTION OF OPTIONS. Within the limitations of
the Plan, the Committee may modify, extend or assume outstanding options or may
accept the cancellation of outstanding options (whether granted by the Company
or by another issuer) in return for the grant of new options for the same or a
different number of shares and at the same or a different exercise price. The
foregoing notwithstanding, no modification of an Option shall, without the
consent of the Optionee, alter or impair his or her rights or obligations under
such Option.

         5.6 BUYOUT PROVISIONS. The Committee may at any time (a) offer to buy
out for a payment in cash or cash equivalents an Option previously granted or
(b) authorize an

                                       2

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                                                                    EXHIBIT 10.3

Optionee to elect to cash out an Option previously granted, in either case at
such time and based upon such terms and conditions as the Committee shall
establish.

     ARTICLE 6. PAYMENT FOR OPTION SHARES.

         6.1 GENERAL RULE. The entire Exercise Price of Common Shares issued
upon exercise of Options shall be payable in cash or cash equivalents at the
time when such Common Shares are purchased, unless the Committee accepts payment
in any other form(s) described in this Article 6.

         6.2 SURRENDER OF STOCK. To the extent that this Section 6.2 is
applicable, all or any part of the Exercise Price may be paid by surrendering,
or attesting to the ownership of, Common Shares that are already owned by the
Optionee. Such Common Shares shall be valued at their Fair Market Value on the
date when the new Common Shares are purchased under the Plan. The Optionee shall
not surrender, or attest to the ownership of, Common Shares in payment of the
Exercise Price if such action would cause the Company to recognize compensation
expense (or additional compensation expense) with respect to the Option for
financial reporting purposes.

         6.3 EXERCISE/SALE. To the extent that this Section 6.3 is applicable,
all or any part of the Exercise Price and any withholding taxes may be paid by
delivering (on a form prescribed by the Company) an irrevocable direction to a
securities broker approved by the Company to sell all or part of the Common
Shares being purchased under the Plan and to deliver all or part of the sales
proceeds to the Company.

         6.4 EXERCISE/PLEDGE. To the extent that this Section 6.4 is applicable,
all or any part of the Exercise Price and any withholding taxes may be paid by
delivering (on a form prescribed by the Company) an irrevocable direction to
pledge all or part of the Common Shares being purchased under the Plan to a
securities broker or lender approved by the Company, as security for a loan, and
to deliver all or part of the loan proceeds to the Company.

         6.5 PROMISSORY NOTE. To the extent that this Section 6.5 is applicable,
all or any part of the Exercise Price and any withholding taxes may be paid by
delivering (on a form prescribed by the Company) a full-recourse promissory
note. However, the par value of the Common Shares being purchased under the
Plan, if newly issued, shall be paid in cash or cash equivalents.

         6.6 OTHER FORMS OF PAYMENT. To the extent that this Section 6.6 is
applicable, all or any part of the Exercise Price and any withholding taxes may
be paid in any other form that is consistent with applicable laws, regulations
and rules.

     ARTICLE 7. RESTRICTED SHARES.

         7.1 RESTRICTED STOCK AGREEMENT. Each grant of Restricted Shares under
the Plan shall be evidenced by a Restricted Stock Agreement between the
recipient and the Company. Such Restricted Shares shall be subject to all
applicable terms of the Plan and may be

                                       3

<PAGE>   7
                                                                    EXHIBIT 10.3

subject to any other terms that are not inconsistent with the Plan. The
provisions of the various Restricted Stock Agreements entered into under the
Plan need not be identical.

         7.2 PAYMENT FOR AWARDS. Subject to the following sentence, Restricted
Shares may be sold or awarded under the Plan for such consideration as the
Committee may determine, including (without limitation) cash, cash equivalents,
full-recourse promissory notes, past services and future services. To the extent
that an Award consists of newly issued Restricted Shares, the consideration
shall consist exclusively of cash, cash equivalents or past services rendered to
the Company (or a Parent or Subsidiary) or, for the amount in excess of the par
value of such newly issued Restricted Shares, full-recourse promissory notes, as
the Committee may determine.

         7.3 VESTING CONDITIONS. Each Award of Restricted Shares may or may not
be subject to vesting. Vesting shall occur, in full or in installments, upon
satisfaction of the conditions specified in the Restricted Stock Agreement. A
Restricted Stock Agreement may provide for accelerated vesting in the event of
the Participant's death, disability or retirement or other events.

         7.4 VOTING AND DIVIDEND RIGHTS. The holders of Restricted Shares
awarded under the Plan shall have the same voting, dividend and other rights as
the Company's other stockholders. A Restricted Stock Agreement, however, may
require that the holders of Restricted Shares invest any cash dividends received
in additional Restricted Shares. Such additional Restricted Shares shall be
subject to the same conditions and restrictions as the Award with respect to
which the dividends were paid.

     ARTICLE 8. CHANGE IN CONTROL

         8.1 EFFECT OF CHANGE IN CONTROL. In the event that a Change in Control
occurs before a Participant's service terminates, each Award held by such
Participant shall automatically accelerate so that such Award shall, immediately
prior to the effective date of the Change in Control, become fully vested or
fully exercisable for vested shares. However, an outstanding Award shall NOT so
accelerate if and to the extent that such Award, in connection with the Change
in Control, is (a) to remain outstanding, (b) to be assumed by the successor
corporation (or parent thereof) or (c) to be replaced with a comparable Award
for shares of the capital stock of the successor corporation (or parent
thereof). The Committee shall make the determination of Award comparability, and
its determination shall be final, binding and conclusive.

         8.2 INVOLUNTARY TERMINATION. In the event that (a) a Change in Control
occurs before a Participant's service terminates, (b) an Award held by such
Participant did not vest in full under Section 8.1 and (c) such Participant
experiences an Involuntary Termination within 18 months following such Change in
Control, such Award shall automatically accelerate so that such Award shall,
immediately prior to the effective date of the Involuntary Termination, become
fully vested or fully exercisable for vested shares.

                                       4

<PAGE>   8
                                                                    EXHIBIT 10.3

     ARTICLE 9. PROTECTION AGAINST DILUTION.

         9.1 ADJUSTMENTS. In the event of a subdivision of the outstanding
Common Shares, a declaration of a dividend payable in Common Shares, a
declaration of a dividend payable in a form other than Common Shares in an
amount that has a material effect on the price of Common Shares, a combination
or consolidation of the outstanding Common Shares (by reclassification or
otherwise) into a lesser number of Common Shares, a recapitalization, a spin-off
or a similar occurrence, the Committee shall make such adjustments as it, in its
sole discretion, deems appropriate in one or more of (a) the number of Options
and Restricted Shares available for future Awards under Article 3, (b) the
number of Common Shares covered by each outstanding Option or (c) the Exercise
Price under each outstanding Option. Except as provided in this Article 9, a
Participant shall have no rights by reason of any issue by the Company of stock
of any class or securities convertible into stock of any class, any subdivision
or consolidation of shares of stock of any class, the payment of any stock
dividend or any other increase or decrease in the number of shares of stock of
any class.

         9.2 DISSOLUTION OR LIQUIDATION. To the extent not previously exercised,
Options shall terminate immediately prior to the dissolution or liquidation of
the Company.

         9.3 REORGANIZATIONS. In the event that the Company is a party to a
merger or other reorganization, outstanding Options and Restricted Shares shall
be subject to the agreement of merger or reorganization. Such agreement shall
provide for (a) the continuation of the outstanding Awards by the Company, if
the Company is a surviving corporation, (b) the assumption of the outstanding
Awards by the surviving corporation or its parent or subsidiary, (c) the
substitution by the surviving corporation or its parent or subsidiary of its own
awards for the outstanding Awards, (d) full exercisability or vesting and
accelerated expiration of the outstanding Awards or (e) settlement of the full
value of the outstanding Awards in cash or cash equivalents followed by
cancellation of such Awards.

     ARTICLE 10. DEFERRAL OF DELIVERY OF SHARES.

         The Committee (in its sole discretion) may permit or require an
Optionee to have Common Shares that otherwise would be delivered to such
Optionee as a result of the exercise of an Option converted into amounts
credited to a deferred compensation account established for such Optionee by the
Committee as an entry on the Company's books. Such amounts shall be determined
by reference to the Fair Market Value of such Common Shares as of the date when
they otherwise would have been delivered to such Optionee. A deferred
compensation account established under this Article 10 may be credited with
interest or other forms of investment return, as determined by the Committee. An
Optionee for whom such an account is established shall have no rights other than
those of a general creditor of the Company. Such an account shall represent an
unfunded and unsecured obligation of the Company and shall be subject to the
terms and conditions of the applicable agreement between such Optionee and the
Company. If the conversion of Options is permitted or required, the Committee
(in its sole discretion) may establish rules, procedures and forms pertaining to
such conversion, including (without limitation) the settlement of deferred
compensation accounts established under this Article 10.

                                       5

<PAGE>   9
                                                                    EXHIBIT 10.3

     ARTICLE 11. AWARDS UNDER OTHER PLANS.

         The Company may grant awards under other plans or programs. Such awards
may be settled in the form of Common Shares issued under this Plan. Such Common
Shares shall be treated for all purposes under the Plan like Restricted Shares
and shall, when issued, reduce the number of Common Shares available under
Article 3.

     ARTICLE 12. LIMITATION ON RIGHTS.

         12.1 RETENTION RIGHTS. Neither the Plan nor any Award granted under the
Plan shall be deemed to give any individual a right to remain an Employee or
Consultant. The Company and its Parents, Subsidiaries and Affiliates reserve the
right to terminate the service of any Employee or Consultant at any time, with
or without cause, subject to applicable laws, the Company's certificate of
incorporation and by-laws and a written employment agreement (if any).

         12.2 STOCKHOLDERS' RIGHTS. A Participant shall have no dividend rights,
voting rights or other rights as a stockholder with respect to any Common Shares
covered by his or her Award prior to the time when a stock certificate for such
Common Shares is issued or, in the case of an Option, the time when he or she
becomes entitled to receive such Common Shares by filing a notice of exercise
and paying the Exercise Price. No adjustment shall be made for cash dividends or
other rights for which the record date is prior to such time, except as
expressly provided in the Plan.

         12.3 REGULATORY REQUIREMENTS. Any other provision of the Plan
notwithstanding, the obligation of the Company to issue Common Shares under the
Plan shall be subject to all applicable laws, rules and regulations and such
approval by any regulatory body as may be required. The Company reserves the
right to restrict, in whole or in part, the delivery of Common Shares pursuant
to any Award prior to the satisfaction of all legal requirements relating to the
issuance of such Common Shares, to their registration, qualification or listing
or to an exemption from registration, qualification or listing.

     ARTICLE 13. WITHHOLDING TAXES.

         13.1 GENERAL. To the extent required by applicable federal, state,
local or foreign law, a Participant or his or her successor shall make
arrangements satisfactory to the Company for the satisfaction of any withholding
tax obligations that arise in connection with the Plan. The Company shall not be
required to issue any Common Shares or make any cash payment under the Plan
until such obligations are satisfied.

         13.2 SHARE WITHHOLDING. The Committee may permit a Participant to
satisfy all or part of his or her withholding or income tax obligations by
having the Company withhold all or a portion of any Common Shares that otherwise
would be issued to him or her or by surrendering all or a portion of any Common
Shares that he or she previously acquired. Such Common Shares shall be valued at
their Fair Market Value on the date when they are withheld or surrendered.

                                       6

<PAGE>   10
                                                                    EXHIBIT 10.3

     ARTICLE 14. FUTURE OF THE PLAN.

         14.1 TERM OF THE PLAN. The Plan, as set forth herein, shall become
effective on April 20, 2000. The Plan shall remain in effect until it is
terminated under Section 14.2.

         14.2 AMENDMENT OR TERMINATION. The Board may, at any time and for any
reason, amend or terminate the Plan. An amendment of the Plan shall be subject
to the approval of the Company's stockholders only to the extent required by
applicable laws, regulations or rules. No Awards shall be granted under the Plan
after the termination thereof. The termination of the Plan, or any amendment
thereof, shall not affect any Award previously granted under the Plan.

     ARTICLE 15. DEFINITIONS.

         15.1 "AFFILIATE" means any entity other than a Subsidiary, if the
Company and/or one or more Subsidiaries own not less than 50% of such entity.

         15.2 "AWARD" means any award of an Option or a Restricted Share under
the Plan.

         15.3 "BOARD" means the Company's Board of Directors, as constituted
from time to time.

         15.4 "CHANGE IN CONTROL" shall mean:

              (a) The consummation of a merger or consolidation of the Company
     with or into another entity or any other corporate reorganization, if more
     than 50% of the combined voting power of the continuing or surviving
     entity's securities outstanding immediately after such merger,
     consolidation or other reorganization is owned by persons who were not
     stockholders of the Company immediately prior to such merger, consolidation
     or other reorganization;

              (b) The sale, transfer or other disposition of all or
     substantially all of the Company's assets;

              (c) A change in the composition of the Board, as a result of which
     fewer than two-thirds of the incumbent directors are directors who either
     (i) had been directors of the Company on the date 24 months prior to the
     date of the event that may constitute a Change in Control (the "original
     directors") or (ii) were elected, or nominated for election, to the Board
     with the affirmative votes of at least a majority of the aggregate of the
     original directors who were still in office at the time of the election or
     nomination and the directors whose election or nomination was previously so
     approved; or

              (d) Any transaction as a result of which any person is the
     "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act),
     directly or

                                       7

<PAGE>   11
                                                                    EXHIBIT 10.3

     indirectly, of securities of the Company representing at least 50% of the
     total voting power represented by the Company's then outstanding voting
     securities. For purposes of this Paragraph (d), the term "person" shall
     have the same meaning as when used in Sections 13(d) and 14(d) of the
     Exchange Act but shall exclude (i) a trustee or other fiduciary holding
     securities under an employee benefit plan of the Company or of a Parent or
     Subsidiary and (ii) a corporation owned directly or indirectly by the
     stockholders of the Company in substantially the same proportions as their
     ownership of the common stock of the Company.

A transaction shall not constitute a Change in Control if its sole purpose is to
change the state of the Company's incorporation or to create a holding company
that will be owned in substantially the same proportions by the persons who held
the Company's securities immediately before such transaction.

              15.5 "CODE" means the Internal Revenue Code of 1986, as amended.

              15.6 "COMMITTEE" means a committee of the Board, as described in
     Article 2.

              15.7 "COMMON SHARE" means one share of the common stock of the
     Company.

              15.8 "COMPANY" means Net Perceptions, Inc., a Delaware
     corporation.

              15.9 "CONSULTANT" means a consultant or adviser who provides bona
     fide services to the Company, a Parent, a Subsidiary or an Affiliate as an
     independent contractor. Service as a Consultant shall be considered
     employment for all purposes of the Plan.

              15.10 "EMPLOYEE" means a common-law employee of the Company, a
     Parent, a Subsidiary or an Affiliate.

              15.11 "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
     amended.

              15.12 "EXERCISE PRICE" means the amount for which one Common Share
     may be purchased upon exercise of an Option, as specified in the applicable
     Stock Option Agreement.

              15.13 "FAIR MARKET VALUE" means the market price of Common Shares,
     determined by the Committee in good faith on such basis as it deems
     appropriate. Whenever possible, the determination of Fair Market Value by
     the Committee shall be based on the prices reported in The Wall Street
     Journal. Such determination shall be conclusive and binding on all persons.

              15.14 "INVOLUNTARY TERMINATION" means the termination of the
     service of any individual that occurs by reason of:

                    (a) Such individual's involuntary dismissal or discharge by
         the Company for reasons other than Misconduct; or

                                       8

<PAGE>   12
                                                                    EXHIBIT 10.3

                    (b) Such individual's voluntary resignation following (i) a
         change in such individual's position with the Company that materially
         reduces his or her level of responsibility, (ii) a reduction in such
         individual's level of compensation (including base salary, fringe
         benefits and participation in bonus or incentive programs) or (iii) a
         relocation of such individual's place of employment by more than 50
         miles, but only if such change, reduction or relocation is effected by
         the Company without such individual's consent.

              15.15 "MISCONDUCT" means (a) the commission of any act of fraud,
     embezzlement or dishonesty by the Participant, (b) any unauthorized use or
     disclosure by the Participant of confidential information or trade secrets
     of the Company (or any Parent or Subsidiary) or (c) any other intentional
     misconduct by the Participant adversely affecting the business or affairs
     of the Company (or any Parent or Subsidiary) in a material manner. The
     foregoing definition shall not be deemed to be inclusive of all the acts or
     omissions that the Company (or any Parent or Subsidiary) may consider as
     grounds for the dismissal or discharge of a Participant or other person in
     the service of the Company (or any Parent or Subsidiary).

              15.16 "NSO" means a stock option not described in sections 422 or
     423 of the Code.

              15.17 "OPTION" means an NSO granted under the Plan and entitling
     the holder to purchase Common Shares.

              15.18 "OPTIONEE" means a person or estate who holds an Option.

              15.19 "PARENT" means any corporation (other than the Company) in
     an unbroken chain of corporations ending with the Company, if each of the
     corporations other than the Company owns stock possessing 50% or more of
     the total combined voting power of all classes of stock in one of the other
     corporations in such chain. A corporation that attains the status of a
     Parent on a date after the adoption of the Plan shall be considered a
     Parent commencing as of such date.

              15.20 "PARTICIPANT" means a person or estate who holds an Award.

              15.21 "PLAN" means this Net Perceptions, Inc. 2000 Stock Plan, as
     amended from time to time.

              15.22 "RESTRICTED SHARE" means a Common Share awarded under the
     Plan.

              15.23 "RESTRICTED STOCK AGREEMENT" means the agreement between the
     Company and the recipient of a Restricted Share that contains the terms,
     conditions and restrictions pertaining to such Restricted Share.

              15.24 "STOCK OPTION AGREEMENT" means the agreement between the
     Company and an Optionee that contains the terms, conditions and
     restrictions pertaining to his or her Option.

                                       9

<PAGE>   13
                                                                    EXHIBIT 10.3

              15.25 "SUBSIDIARY" means any corporation (other than the Company)
     in an unbroken chain of corporations beginning with the Company, if each of
     the corporations other than the last corporation in the unbroken chain owns
     stock possessing 50% or more of the total combined voting power of all
     classes of stock in one of the other corporations in such chain. A
     corporation that attains the status of a Subsidiary on a date after the
     adoption of the Plan shall be considered a Subsidiary commencing as of such
     date.

     ARTICLE 16. EXECUTION.

                  To record the adoption of the Plan by the Board on April 20,
2000, the Company has caused its duly authorized officer to execute this
document in the name of the Company.

                            NET PERCEPTIONS, INC.

                            By: /s/ Thomas M. Donnelly
                            Title:  Senior Vice President and Chief Financial
                            Officer

                                       10

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