Document:

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                                                                   EXHIBIT 10.39

                         GLOBAL PREFERRED HOLDINGS, INC.
                           DIRECTORS STOCK OPTION PLAN

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                         GLOBAL PREFERRED HOLDINGS, INC.
                           DIRECTORS STOCK OPTION PLAN

                                   SECTION 1.
                                     PURPOSE

         The purpose of this Plan is to promote the interests of the Company by
providing the opportunity to purchase Shares to Directors in order to attract
and retain Directors by providing an incentive to work to increase the value of
Shares and a stake in the future of the Company which corresponds to the stake
of each of the Company's stockholders. The Plan provides for the automatic grant
of Non-Qualified Stock Options to aid the Company in obtaining these goals.

                                   SECTION 2.
                                   DEFINITIONS

         Each term set forth in this Section shall have the meaning set forth
opposite such term for purposes of this Plan and, for purposes of such
definitions, the singular shall include the plural and the plural shall include
the singular, and reference to one gender shall include the other gender.

         2.1      BOARD means the Board of Directors of the Company.

         2.2      CAUSE shall mean an act or acts by Director involving (a) the
use for profit or disclosure to unauthorized persons of confidential information
or trade secrets of the Company, a Parent or a Subsidiary, (b) the breach of any
contract with the Company, a Parent or a Subsidiary, (c) the violation of any
fiduciary obligation to the Company, a Parent or a Subsidiary, (d) the unlawful
trading in the securities of the Company, a Parent or a Subsidiary, or of
another corporation based on information gained as a result of the performance
of services for the Company, a Parent or a Subsidiary, (e) a felony conviction
or the failure to contest prosecution of a felony, or (f) willful misconduct,
dishonesty, embezzlement, fraud, deceit or civil rights violations, or other
unlawful acts.

         2.3      CHANGE OF CONTROL means either of the following:

                  (a)      any transaction or series of transactions pursuant to
which the Company sells, transfers, leases, exchanges or disposes of
substantially all (i.e., at least eighty-five percent (85%)) of its assets for
cash or property, or for a combination of cash and property, or for other
consideration; or

                  (b)      any transaction pursuant to which persons who are not
current stockholders of the Company acquire by merger, consolidation,
reorganization, division or other business combination or transaction, or by a
purchase of an interest in the Company, an interest in the Company so that after
such transaction, the stockholders of the Company immediately prior to such
transaction no longer have a controlling (i.e., 50% or more) voting interest in
the Company.

However, notwithstanding the foregoing, in no event shall a registered public
offering of securities of the Company consummated after the effective date
hereof constitute a Change of Control or be included in the calculations above
to determine whether a Change of Control has occurred.

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

         2.5      COMMITTEE means any committee appointed by the Board to
administer the Plan, as specified in Section 5 hereof. Any such committee shall
be comprised entirely of Directors.

         2.6      COMMON STOCK means the common stock of the Company.

         2.7      COMPANY means Global Preferred Holdings, Inc., a Delaware
corporation, and any successor to such organization.

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         2.8      DIRECTOR means a member of the Board.

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

         2.10     EXERCISE PRICE means, with respect to an Option, the price
which shall be paid to purchase one (1) Share upon the exercise of such Option
granted under this Plan.

         2.11     FAIR MARKET VALUE of each Share on any date means the price
determined below as of the close of business on such date (provided, however, if
for any reason, the Fair Market Value per share cannot be ascertained or is
unavailable for such date, the Fair Market Value per share shall be determined
as of the nearest preceding date on which such Fair Market Value can be
ascertained):

                  (a)      If the Share is listed or traded on any established
stock exchange or a national market system, including without limitation the
National Market of the National Association of Securities Dealers, Inc.
Automated Quotation ("NASDAQ") System, its Fair Market Value shall be the
closing sale price for the Share (or the mean of the closing bid and ask prices,
if no sales were reported), on such exchange or system on the date of such
determination, as reported in The Wall Street Journal or such other source as
the Board deems reliable; or

                  (b)      If the Share is not listed or traded on any
established stock exchange or a national market system, its Fair Market Value
shall be the average of the closing dealer "bid" and "ask" prices of a Share as
reflected on the NASDAQ interdealer quotation system of the National Association
of Securities Dealers, Inc. on the date of such determination; or

                  (c)      In the absence of an established public trading
market for the Share, the Fair Market Value of a Share shall be determined in
good faith by the Board.

         2.12     INSIDER means an individual who is, on the relevant date, an
officer, director or ten percent (10%) beneficial owner of any class of the
Company's equity securities that is registered pursuant to Section 12 of the
Exchange Act, all as defined under Section 16 of the Exchange Act.

         2.13     OPTION means an option granted under this Plan to purchase
Shares which is not intended by the Company to satisfy the requirements of Code
ss.422.

         2.14     OPTION AGREEMENT means an agreement between the Company and
the recipient of an Option evidencing an award of an Option.

         2.15     OUTSIDE DIRECTOR means a Director who is not an employee of
the Company and who qualifies as a "non-employee director" under Rule
16b-3(b)(3) under the 1934 Act, as amended from time to time.

         2.16     PARENT means any corporation which is a parent of the Company
(within the meaning of Code ss.424(e)).

         2.17     PLAN means this Global Preferred Holdings, Inc. Directors
Stock Option Plan, as may be amended from time to time.

         2.18     QUALIFIED PUBLIC OFFERING means a firm commitment underwritten
registered public offering by the Company of Common Stock before December 31,
2003.

         2.19     SHARE means a share of the Common Stock of the Company.

         2.20     SUBSIDIARY means any corporation which is a subsidiary of the
Company (within the meaning of Code ss.424(f)).

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                                   SECTION 3.
                            SHARES SUBJECT TO OPTIONS

         The total number of Shares that may be issued pursuant to Options under
this Plan shall not exceed 280,000, as adjusted pursuant to Section 10. Such
Shares shall be reserved, to the extent that the Company deems appropriate, from
authorized but unissued Shares, and from Shares which have been reacquired by
the Company. Furthermore, any Shares subject to an Option which remain after the
cancellation, expiration or exchange of such Option thereafter shall again
become available for use under this Plan.

                                   SECTION 4.
                                 EFFECTIVE DATE

         The Effective Date of this Plan, as documented hereby, shall be the
date it is adopted by the Board, as noted in resolutions effectuating such
adoption; provided, however, such effectiveness is contingent upon the
successful completion of a Qualified Public Offering.

                                   SECTION 5.
                                 ADMINISTRATION

         5.1      GENERAL ADMINISTRATION. This Plan shall be administered by the
Board. The Board, acting in its absolute discretion, shall exercise such powers
and take such action as expressly called for under this Plan. The Board shall
have the power to interpret this Plan and, subject to the terms and provisions
of this Plan, to take such other action in the administration and operation of
the Plan as it deems equitable under the circumstances. The Board's actions
shall be binding on the Company, on each affected Director, and on each other
person directly or indirectly affected by such actions.

         5.2      AUTHORITY OF THE BOARD. Except as limited by law or by the
Articles of Incorporation or Bylaws of the Company, and subject to the
provisions herein, the Board shall have full power to determine the terms and
conditions of Options in a manner consistent with the Plan, to construe and
interpret the Plan and any agreement or instrument entered into under the Plan,
to establish, amend or waive rules and regulations for the Plan's
administration, and to amend the terms and conditions of any outstanding Options
as allowed under the Plan and such Options. Further, the Board may make all
other determinations which may be necessary or advisable for the administration
of the Plan.

         5.3      DELEGATION OF AUTHORITY. The Board may delegate its authority
under the Plan, in whole or in part, to a Committee appointed by the Board
consisting of not less than one (1) director. The members of the Committee shall
be appointed from time to time by, and shall serve at the discretion of, the
Board. The Committee (if appointed) shall act according to the policies and
procedures set forth in the Plan and to those policies and procedures
established by the Board, and the Committee shall have such powers and
responsibilities as are set forth by the Board. Reference to the Board in this
Plan shall specifically include reference to the Committee where the Board has
delegated its authority to the Committee, and any action by the Committee
pursuant to a delegation of authority by the Board shall be deemed an action by
the Board under the Plan. With respect to Committee appointments and
composition, only a Committee (or a sub-committee thereof) comprised solely of
two (2) or more Outside Directors may grant Options to Insiders that will be
exempt from Section 16(b) of the Exchange Act. Notwithstanding the above, the
Board may assume the powers and responsibilities granted to the Committee at any
time, in whole or in part. Furthermore, notwithstanding the above, no decision
may be made by a member of a Committee which would affect only Options held by
such member or only Options held by such member and other members of such
Committee; however, the Board may make decisions which would affect Options held
by any member of the Board.

         5.4      DECISIONS BINDING. All determinations and decisions made by
the Board (or its delegate) pursuant to the provisions of this Plan and all
related orders and resolutions of the Board shall be final, conclusive and
binding on all persons, including the Company, its stockholders, Directors, and
their estates and beneficiaries.

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         5.5      INDEMNIFICATION FOR DECISIONS. No member of the Board or the
Committee (or a sub-committee thereof) shall be liable for any action taken or
determination made hereunder in good faith. Service on the Committee (or a
sub-committee thereof) shall constitute service as a director of the Company so
that the members of the Committee (or a sub-committee thereof) shall be entitled
to indemnification and reimbursement as directors of the Company pursuant to its
bylaws and applicable law. In addition, the members of the Board, Committee (or
a sub-committee thereof) shall be indemnified by the Company against (a) the
reasonable expenses, including attorneys' fees actually and necessarily incurred
in connection with the defense of any action, suit or proceeding, to which they
or any of them may be a party by reason of any action taken or failure to act
under or in connection with the Plan, any Option granted hereunder, and (b)
against all amounts paid by them in settlement thereof (provided such settlement
is approved by independent legal counsel selected by the Company) or paid by
them in satisfaction of a judgment in any such action, suit or proceeding,
except in relation to matters as to which it shall be adjudged in such action,
suit or proceeding that such individual is liable for gross negligence or
misconduct in the performance of his duties, provided that within sixty (60)
days after institution of any such action, suit or proceeding a Committee member
or delegatee shall in writing offer the Company the opportunity, at its own
expense, to handle and defend the same.

                                   SECTION 6.
                         ELIGIBILITY & GRANT OF OPTIONS

         6.1      DIRECTORS ELIGIBLE FOR GRANTS OF OPTIONS. The individuals
eligible to receive Options hereunder shall be solely those individuals who are
Directors and who are not employees of the Company or any Parent or Subsidiary
of the Company. Such Directors shall receive Options hereunder in accordance
with the provisions of Section 6.2 below.

         6.2      GRANT OF OPTIONS. Options shall be granted to those Directors
who are eligible under Section 6.1 above (an "eligible Director") in accordance
with the following formulas:

                  (a)      Option Upon Initially Becoming a Director. Upon
initially becoming an eligible Director, an individual shall, subject to
subsection (c) below, be granted an Option to purchase 7,500 Shares, with such
Option subject to the provisions of Section 7 below. The Options granted under
this subsection (a) shall not be granted to a Director who has previously served
as a Director and who is again becoming a Director, but shall only be granted
upon an individual's initially becoming an eligible Director. If an individual
becomes an eligible Director after the Effective Date but before the date the
registration statement for a Qualified Public Offering is declared effective,
then the Option to be granted hereunder shall be granted on the effective date
of such registration statement at the price as determined in Section 6.2(c)(i)
below.

                  (b)      Options After Each Year of Service. As of the end of
each completed year of service as an eligible Director after the Effective Date,
an individual shall, subject to subsection (c) below, be granted an Option to
purchase 2,500 Shares, with such Option subject to the provisions of Section 7
below. If an individual becomes an eligible Director after the Effective Date
and completes a year of service as an eligible Director before the date the
registration statement for a Qualified Public Offering is declared effective,
then the Option to be granted hereunder shall be granted on the effective date
of such registration statement at the price as determined in Section 6.2(c)(i)
below.

                  (c)      Transitional Rules. Except as provided in this
subsection (c), no individual who is serving as an eligible Director as of the
Effective Date of this Plan shall be entitled to any Options under subsection
(a) above, and no individual who is serving as an eligible Director as of the
Effective Date of this Plan shall be entitled to any Options under subsection
(b) above for the year of service for which the eligible Director receives an
Option under Section 6.2(c)(ii) below.

                           (i)      Initial Options. On the effective date of
         the registration statement for the Qualified Public Offering, each
         eligible Director as of the Effective Date shall be granted an Option
         to purchase that number of Shares listed for each eligible Director on
         EXHIBIT A hereto. With respect to the Options granted pursuant to this
         Section 6.2(c)(i), the Fair Market Value of each Share shall be the
         price

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         per share to the public of the common stock set forth in the effective
         registration statement for the Qualified Public Offering.

                           (ii)     Completed Year of Service Options. Each
         eligible Director serving on the Effective Date shall be granted
         Options under the terms and provisions of subsection (b) at the second
         annual meeting of the stockholders held after the Effective Date, as if
         such Director had completed a single year of service as of the date of
         such annual meeting. However, if the completion date of the Qualified
         Public Offering is after the first annual meeting of the stockholders
         held after the Effective Date, each eligible Director serving on the
         Effective Date shall be granted Options under the terms and provisions
         of subsection (b) at the next annual meeting of the stockholders held
         after the completion of a Qualified Public Offering, as if such
         Director had completed a single year of service as of the date of such
         annual meeting.

                  (d)      Years of Service. A year of service as a Director
shall be measured from the date of an annual meeting of stockholders of the
Company to the date of the next succeeding annual meeting. The Committee shall
have complete power to interpret the provisions of this Section 6.2, including
the power to determine whether an individual has completed a year of service.

                                    SECTION 7
                                TERMS OF OPTIONS

         7.1      OPTION AGREEMENTS. Each Option shall be evidenced by an Option
Agreement executed by the Company, a Parent or a Subsidiary, and the recipient
of the Option, which shall be in such form and contain such terms and conditions
as the Board in its discretion may, subject to the provisions of the Plan, from
time to time determine, and which shall specify that the Option is non-qualified
and not subject to Code ss.422. The Board and/or the Company shall have complete
discretion to modify the terms and provisions of an Option in accordance with
Section 12 of this Plan.

         7.2      EXERCISE PRICE. Subject to adjustment in accordance with
Section 10 and the other provisions of this Section, the Exercise Price for each
Share subject to an Option shall be the Fair Market Value of such Share
determined as of the date of grant of such Option, and shall be set forth in the
applicable Option Agreement.

         7.3      OPTION TERM. Each Option granted under this Plan shall be
exercisable in whole or in part at such time or times as set forth in the
related Option Agreement, but no Option Agreement shall:

                  (a)      make an Option exercisable before the date such
Option is granted; or

                  (b)      make an Option exercisable after the earlier of:

                           (i)      the date such Option is exercised in full,
or

                           (ii)     the date which is the fifth (5th)
anniversary of the date such Option is granted. An Option Agreement may provide
for the exercise of an Option after the service of a Director has terminated for
any reason whatsoever, including death or disability. The Director's rights, if
any, upon termination of service will be set forth in the applicable Option
Agreement.

         7.4      PAYMENT. Options shall be exercised by the delivery of a
written notice of exercise to the Company, setting forth the number of Shares
with respect to which the Option is to be exercised accompanied by full payment
for the Shares. Payment for shares of Stock purchased pursuant to exercise of an
Option shall be made in cash or, unless the Option Agreement provides otherwise,
by delivery to the Company of a number of Shares which have been owned and
completely paid for by the holder for at least six (6) months prior to the date
of exercise (i.e., "mature shares" for accounting purposes) having an aggregate
Fair Market Value equal to the amount to be tendered, or a combination thereof.
In addition, unless the Option Agreement provides otherwise, the Option may be
exercised through a brokerage transaction following registration of the
Company's equity securities under

<PAGE>

Section 12 of the Securities Exchange Act of 1934 as permitted under the
provisions of Regulation T applicable to cashless exercises promulgated by the
Federal Reserve Board. However, notwithstanding the foregoing, with respect to
any Option recipient who is an Insider, a tender of shares or a cashless
exercise must (1) have met the requirements of an exemption under Rule 16b-3
promulgated under the Exchange Act, or (2) be a subsequent transaction the terms
of which were provided for in a transaction initially meeting the requirements
of an exemption under Rule 16b-3 promulgated under the Exchange Act. Unless the
Option Agreement provides otherwise, the foregoing exercise payment methods
shall be subsequent transactions approved by the original grant of an Option.
Except as provided below, payment shall be made at the time that the Option or
any part thereof is exercised, and no Shares shall be issued or delivered upon
exercise of an Option until full payment has been made by the Option holder. The
holder of an Option, as such, shall have none of the rights of a stockholder.
Notwithstanding the above, and in the sole discretion of the Board, an Option
may be exercised as to a portion or all (as determined by the Board) of the
number of Shares specified in the Option Agreement by delivery to the Company of
a promissory note, such promissory note to be executed by the Option holder and
which shall include, with such other terms and conditions as the Board shall
determine, provisions in a form approved by the Board under which: (i) the
balance of the aggregate purchase price shall be payable in equal installments
over such period and shall bear interest at such rate (which shall not be less
than the prime bank loan rate as determined by the Board) as the Board shall
approve, and (ii) the Option holder shall be personally liable for payment of
the unpaid principal balance and all accrued but unpaid interest. Other methods
of payment may also be used if approved by the Board in its sole and absolute
discretion and provided for under the Option Agreement.

         7.5      CONDITIONS TO EXERCISE OF AN OPTION. Each Option granted under
the Plan shall be fully vested and exercisable as of the date of grant of such
Option. The Board may impose such restrictions on any Shares acquired pursuant
to the exercise of an Option as it may deem advisable, including, without
limitation, vesting or performance-based restrictions, rights of the Company to
re-purchase Shares acquired pursuant to the exercise of an Option, voting
restrictions, investment intent restrictions, restrictions on transfer, "first
refusal" rights of the Company to purchase Shares acquired pursuant to the
exercise of an Option prior to their sale to any other person, "drag along"
rights requiring the sale of shares to a third party purchaser in certain
circumstances, "lock up" type restrictions in the case of an initial public
offering of the Company's stock, restrictions or limitations that would be
applied to stockholders under any applicable restriction agreement among the
stockholders, and restrictions under applicable federal securities laws, under
the requirements of any stock exchange or market upon which such Shares are then
listed and/or traded, and/or under any blue sky or state securities laws
applicable to such Shares.

         7.6      TRANSFERABILITY OF OPTIONS. An Option shall not be
transferable or assignable except by will or by the laws of descent and
distribution, and, except as otherwise provided in the Option Agreement, an
Option may also be transferred by an Option holder as a bona fide gift (i) to
his spouse, lineal descendant or lineal ascendant, siblings and children by
adoption, (ii) to a trust for the benefit of one or more individuals described
in clause (i) and no other persons, or (iii) to a partnership of which the only
partners are one or more individuals described in clause (i), in which case the
transferee shall be subject to all provisions of the Plan, the Option Agreement
and other agreements with the Option holder in connection with the exercise of
the Option and purchase of Shares. In the event of such a gift, the Option
holder shall promptly notify the Board of such transfer and deliver to the Board
such written documentation as the Board may in its discretion request,
including, without limitation, the written acknowledgment of the donee that the
donee is subject to the provisions of the Plan, the Option Agreement and other
agreements with the Option holder. An Option shall be exercisable, during the
Option holder's lifetime, only by the Option holder; provided, however, that in
the event the Option holder is incapacitated and unable to exercise his or her
Option, such Option may be exercised by such Option holder's legal guardian,
legal representative, or other representative whom the Board deems appropriate
based on applicable facts and circumstances. The determination of incapacity of
an Option holder and the determination of the appropriate representative of the
Option holder who shall be able to exercise the Option if the Option holder is
incapacitated shall be determined by the Board in its sole and absolute
discretion.

<PAGE>

                                   SECTION 8.
                              SECURITIES REGULATION

         Each Option Agreement may provide that, upon the receipt of Shares as a
result of the exercise of an Option or otherwise, the Option holder shall, if so
requested by the Company, hold such Shares for investment and not with a view of
resale or distribution to the public and, if so requested by the Company, shall
deliver to the Company a written statement satisfactory to the Company to that
effect. Each Option Agreement may also provide that, if so requested by the
Company, the Option holder shall make a written representation to the Company
that he or she will not sell or offer to sell any of such Shares unless a
registration statement shall be in effect with respect to such Shares under the
Securities Act of 1933, as amended ("1933 Act"), and any applicable state
securities law or, unless he or she shall have furnished to the Company an
opinion, in form and substance satisfactory to the Company, of legal counsel
acceptable to the Company, that such registration is not required. Certificates
representing the Shares transferred upon the exercise of an Option granted under
this Plan may at the discretion of the Company bear a legend to the effect that
such Shares have not been registered under the 1933 Act or any applicable state
securities law and that such Shares may not be sold or offered for sale in the
absence of an effective registration statement as to such Shares under the 1933
Act and any applicable state securities law or an opinion, in form and substance
satisfactory to the Company, of legal counsel acceptable to the Company, that
such registration is not required.

                                   SECTION 9.
                                  LIFE OF PLAN

         No Option shall be granted under this Plan on or after the earlier of:

                  (a)      the tenth (10th) anniversary of the Effective Date of
this Plan (as determined under Section 4 of this Plan), in which event this Plan
otherwise thereafter shall continue in effect until all outstanding Options have
been exercised in full or no longer are exercisable, or

                  (b)      the date on which all of the Shares reserved under
Section 3 of this Plan have (as a result of the exercise of Options granted
under this Plan) been issued or no longer are available for use under this Plan,
in which event this Plan also shall terminate on such date.

                                   SECTION 10.
                                   ADJUSTMENT

         Notwithstanding anything in Section 12 to the contrary, the number of
Shares reserved under Section 3 of this Plan, the number of Shares subject to
Options granted under this Plan, the number of Shares to be granted pursuant to
Section 6 of this Plan, and the Exercise Price of any Options, shall be adjusted
by the Board in an equitable manner to reflect any change in the capitalization
of the Company, including, but not limited to, such changes as stock dividends
or stock splits. Furthermore, the Board shall have the right to adjust (in a
manner which satisfies the requirements of Code ss.424(a)) the number of Shares
reserved under Section 3, and the number of Shares subject to Options granted
under this Plan, and the Exercise Price of any Options and the specified
exercise price of any Stock Appreciation Rights in the event of any corporate
transaction described in Code ss.424(a) which provides for the substitution or
assumption of such Options. If any adjustment under this Section creates a
fractional Share or a right to acquire a fractional Share, such fractional Share
shall be disregarded, and the number of Shares reserved under this Plan and the
number subject to any Options granted under this Plan shall be the next lower
number of Shares, rounding all fractions downward. An adjustment made under this
Section by the Board shall be conclusive and binding on all affected persons
and, further, shall not constitute an increase in the number of Shares reserved
under Section 3.

<PAGE>

                                   SECTION 11.
                        CHANGE OF CONTROL OF THE COMPANY

         Except as otherwise provided in an Option Agreement, if a Change of
Control occurs, and if the agreements effectuating the Change of Control do not
provide for the assumption or substitution of all Options granted under this
Plan, with respect to any Option granted under this Plan which is not so assumed
or substituted (a "Non-Assumed Option"), the Committee, in its sole and absolute
discretion, may, with respect to any or all of such Non-Assumed Options, take
any or all of the following actions to be effective as of the date of the Change
of Control (or as of any other date fixed by the Committee occurring within the
thirty (30) day period immediately preceding the date of the Change of Control,
but only if such action remains contingent upon the effectuation of the Change
of Control) (such date referred to as the "Action Effective Date"):

                  (a)      Unilaterally cancel such Non-Assumed Option in
exchange for:

                           (i)      whole and/or fractional Shares (or for whole
         Shares and cash in lieu of any fractional Share) or whole and/or
         fractional shares of a successor (or for whole shares of a successor
         and cash in lieu of any fractional share) which, in the aggregate, are
         equal in value to the excess of the Fair Market Value of the Shares
         which could be purchased subject to such Non-Assumed Option determined
         as of the Action Effective Date (taking into account vesting) over the
         aggregate Exercise Price for such Shares; or

                           (ii)     cash or other property equal in value to the
         excess of the Fair Market Value of the Shares which could be purchased
         subject to such Non-Assumed Option determined as of the Action
         Effective Date (taking into account vesting) over the aggregate
         Exercise Price for such Shares; and/or.

                  (b)      Unilaterally cancel such Non-Assumed Option after
providing the holder of such Option with (1) an opportunity to exercise such
Non-Assumed Option to the extent vested within a specified period prior to the
date of the Change of Control, and (2) notice of such opportunity to exercise
prior to the commencement of such specified period.

However, notwithstanding the foregoing, to the extent that the recipient of
Non-Assumed Option is an Insider, payment of cash in lieu of whole or fractional
Shares or shares of a successor may only be made to the extent that such payment
(1) has met the requirements of an exemption under Rule 16b-3 promulgated under
the Exchange Act, or (2) is a subsequent transaction the terms of which were
provided for in a transaction initially meeting the requirements of an exemption
under Rule 16b-3 promulgated under the Exchange Act. Unless an Option Agreement
provides otherwise, the payment of cash in lieu of whole or fractional Shares or
in lieu of whole or fractional shares of a successor shall be considered a
subsequent transaction approved by the original grant of an Option.

                                   SECTION 12.
                            AMENDMENT OR TERMINATION

         This Plan may be amended by the Board from time to time to the extent
that the Board deems necessary or appropriate; provided, however, no such
amendment shall be made absent the approval of the stockholders of the Company
(a) to increase the number of Shares reserved under Section 3, except as set
forth in Section 10 or pursuant to the provisions of Section 3, (b) to extend
the maximum life of the Plan under Section 9 or the maximum exercise period
under Section 7, (c) to change the Exercise Price under Section 7, (d) to change
the number of Shares subject to Options under Section 6, or (e) to change the
designation of Directors eligible for Options under Section 6. The Board also
may suspend the granting of Options under this Plan at any time and may
terminate this Plan at any time. The Company shall have the right to modify,
amend or cancel any Option after it has been granted if (I) the modification,
amendment or cancellation does not diminish the rights or benefits of the Option
recipient under the Option, (II) the Option holder consents in writing to such
modification, amendment or cancellation, (III) there is a dissolution or
liquidation of the Company, (IV) this Plan and/or the Option Agreement expressly
provides

<PAGE>

for such modification, amendment or cancellation, or (V) the Company would
otherwise have the right to make such modification, amendment or cancellation by
applicable law.

                                   SECTION 13.
                                  MISCELLANEOUS

         13.1     STOCKHOLDER RIGHTS. No Option holder shall have any rights as
a stockholder of the Company as a result of the grant of an Option to him or to
her under this Plan or his or her exercise of such Option pending the actual
delivery of Shares subject to such Option to such Option holder.

         13.2     NO GUARANTEE OF CONTINUED RELATIONSHIP. The grant of an Option
to an Option holder under this Plan shall not constitute a contract for services
and shall not confer on an Option holder any rights upon the termination of his
or her service relationship with the Company in addition to those rights, if
any, expressly set forth in the Option Agreement which evidences his or her
Option.

         13.3     WITHHOLDING. While it is not anticipated to be necessary, the
Company shall have the power and the right to deduct or withhold, or require an
Option holder to remit to the Company as a condition precedent for the
fulfillment of any Option, an amount sufficient to satisfy Federal, state and
local taxes, domestic or foreign, required by law or regulation to be withheld
with respect to any taxable event arising as a result of this Plan and/or any
action taken by an Option holder with respect to an Option. Whenever Shares are
to be issued to an Option holder upon exercise of an Option, the Company shall
have the right to require the Option holder to remit to the Company, as a
condition of exercise of the Option, an amount in cash (or, unless the Option
Agreement provides otherwise, in Shares) sufficient to satisfy federal, state
and local withholding tax requirements at the time of exercise. However,
notwithstanding the foregoing, to the extent that an Option holder is an
Insider, satisfaction of withholding requirements by having the Company withhold
Shares may only be made to the extent that such withholding of Shares (1) has
met the requirements of an exemption under Rule 16b-3 promulgated under the
Exchange Act, or (2) is a subsequent transaction the terms of which were
provided for in a transaction initially meeting the requirements of an exemption
under Rule 16b-3 promulgated under the Exchange Act. Unless the Option Agreement
provides otherwise, the withholding of shares to satisfy federal, state and
local withholding tax requirements shall be a subsequent transaction approved by
the original grant of an Option. Notwithstanding the foregoing, in no event
shall payment of withholding taxes be made by a retention of Shares by the
Company unless the Company retains only Shares with a Fair Market Value equal to
the minimum amount of taxes required to be withheld.

         13.4     CONSTRUCTION.  This Plan shall be construed under the laws of
the State of Delaware.

<PAGE>

                                    EXHIBIT A

                     INITIAL OPTION GRANTS ON EFFECTIVE DATE

<TABLE>
<CAPTION>
                                                      BASE GRANT AMOUNT        ADDITIONAL GRANT
                                                                                    AMOUNT*
                                                      -----------------        ----------------
<S>                                                   <C>                      <C>
Thomas W. Montgomery                                    10,000 Shares            25,000 Shares

Joseph F. Barone                                        10,000 Shares            20,000 Shares

C. Simon Scupham                                        10,000 Shares            10,000 Shares

Eugene M. Howerdd, Jr.                                  10,000 Shares                --

Milan M. Radonich                                       10,000 Shares                --
</TABLE>

*  Additional grant amounts have been determined based on consideration of years
   of service on the Board and level of participation on committees of the
   Board.

<PAGE>

                                     FORM OF
                         GLOBAL PREFERRED HOLDINGS, INC.
                           DIRECTORS STOCK OPTION PLAN
                         STOCK OPTION GRANT CERTIFICATE

[FRONT OF CERTIFICATE]

Global Preferred Holdings, Inc., a Delaware corporation (the "Company"), hereby
grants to the optionee named below ("Optionee") an option (this "Option") to
purchase the total number of shares shown below of Common Stock of the Company
("Shares") at the exercise price per share set forth below (the "Exercise
Price"), subject to all of the terms and conditions on the reverse side of this
Stock Option Grant Certificate and the Global Preferred Holdings, Inc. Directors
Stock Option Plan (the "Plan"). Unless otherwise defined herein, capitalized
terms used herein shall have the meanings ascribed to them in the Plan. The
terms and conditions set forth on the reverse side hereof and the terms and
conditions of the Plan are incorporated herein by reference.

Shares Subject to Option:

Exercise Price Per Share:

Term of Option:  Ten (10) Years

Vesting:
Shares subject to issuance under this Option shall be eligible for exercise
immediately as of the Grant Date shown hereon.

IN WITNESS WHEREOF, this Stock Option Grant Certificate has been executed by the
Company by a duly authorized officer as of the date specified hereon.

GLOBAL PREFERRED HOLDINGS, INC.

By:
   ------------------------

Grant Date:

Type of Stock Option:

___ Non-Qualified Stock Option (NQSO)

Optionee hereby acknowledges receipt of a copy of the Plan, represents that
Optionee has read and understands the terms and provisions of the Plan, and
accepts this Option subject to all the terms and conditions of the Plan and this
Stock Option Grant Certificate. Optionee acknowledges that there may be adverse
tax consequences upon exercise of this Option or disposition of Shares purchased
by exercise of this Option, and that Optionee should consult a tax adviser prior
to such exercise or disposition.

<PAGE>

[BACK OF CERTIFICATE]

1.       EXERCISE PERIOD OF OPTION. Subject to the terms and conditions of this
Stock Option Grant Certificate and the Plan, and unless otherwise modified in
writing signed by the Company and Optionee, this Option may be exercised with
respect to all (100%) of the Shares subject to this Option, subject to Sections
2 and 3 below, prior to the date which is the last day of the Term set forth on
the face hereof following the Grant Date (hereinafter "Expiration Date").
Nothing in the Plan or this Stock Option Grant Certificate shall confer on
Optionee any right to continue as a Director of the Company, or any Parent or
Subsidiary, or limit in any way the right of the Company, or any Parent or
Subsidiary, to terminate Optionee's relationship at any time, with or without
cause.

2.       RESTRICTIONS ON EXERCISE. This Option may not be exercised, unless such
exercise is in compliance with the Securities Act of 1933 and all applicable
state securities laws, as they are in effect on the date of exercise, and the
requirements of any stock exchange or national market system on which the
Company's Shares may be listed at the time of exercise. Optionee understands
that the Company is under no obligation to register, qualify or list the Shares
subject to this Option with the Securities and Exchange Commission ("SEC"), any
state securities commission or any stock exchange to effect such compliance.

3.       MANNER OF EXERCISE.

         (a) Exercise Agreement. This Option shall be exercisable by delivery to
the Company of an executed Exercise and Shareholder Agreement ("Exercise
Agreement") in such form as may be approved or accepted by the Company, which
shall set forth Optionee's election to exercise this Option with respect to some
or all of the Shares subject to this Option, the number of Shares subject to
this Option being purchased, any restrictions imposed on the Shares subject to
this Option, and such other representations and agreements as may be required by
the Company to comply with applicable securities laws. The Company may modify
the required Exercise Agreement at any time for any reason consistent with the
Plan.

         (b) Exercise Price. Such Exercise Agreement shall be accompanied by
full payment of the Exercise Price for the Shares being purchased. Payment for
the Shares being purchased may be made in U.S. dollars in cash (by check), or by
delivery to the Company of a number of Shares which have been owned and
completely paid for by the holder for at least six (6) months prior to the date
of exercise (i.e., "mature shares" for accounting purposes) having an aggregate
fair market value equal to the amount to be tendered, or a combination thereof.
In addition, this Option may be exercised through a brokerage transaction
following registration of the Shares under Section 12 of the Securities Exchange
Act of 1934 as permitted under the provisions of Regulation T promulgated by the
Federal Reserve Board applicable to cashless exercises.

         (c) Withholding Taxes. Prior to the issuance of Shares upon exercise of
this Option, Optionee must pay, or make adequate provision for, any applicable
federal or state withholding obligations of the Company. Optionee may provide
for payment of withholding taxes upon exercise of the Option by requesting that
the Company retain Shares with a Fair Market Value equal to the minimum amount
of taxes required to be withheld. In such case, the Company shall issue the net
number of Shares to Optionee by deducting the Shares retained from the Shares
exercised.

         (d) Issuance of Shares. Provided that such Exercise Agreement and
payment are in form and substance satisfactory to counsel for the Company, the
Company shall cause the Shares purchased to be issued in the name of Optionee or
Optionee's legal representative. Optionee shall not be considered a Shareholder
until such time as Shares have been issued as noted on the books of the Company.

4.       [NONTRANSFERABILITY OF OPTION. This Option may not be transferred in
any manner, other than by will or by the laws of descent and distribution, or to
the extent otherwise allowed by the Plan, and may be exercised during Optionee's
lifetime only by Optionee. The terms of this Option shall be binding upon the
executor, administrators, successors and assigns of Optionee.]

5.       TAX CONSEQUENCES. OPTIONEE UNDERSTANDS THAT THE GRANT AND EXERCISE OF
THIS OPTION, AND THE SALE OF SHARES OBTAINED THROUGH THE EXERCISE OF THIS
OPTION, MAY HAVE TAX IMPLICATIONS THAT COULD RESULT IN ADVERSE TAX CONSEQUENCES
TO OPTIONEE. OPTIONEE REPRESENTS THAT OPTIONEE HAS CONSULTED WITH, OR WILL
CONSULT WITH, HIS OR HER TAX ADVISOR; OPTIONEE FURTHER ACKNOWLEDGES THAT
OPTIONEE IS NOT RELYING ON THE COMPANY FOR ANY TAX, FINANCIAL OR LEGAL ADVICE;
AND IT IS SPECIFICALLY UNDERSTOOD BY

<PAGE>

THE OPTIONEE THAT NO REPRESENTATIONS ARE MADE AS TO ANY PARTICULAR TAX TREATMENT
WITH RESPECT TO THE OPTION.

6.       INTERPRETATION. Any dispute regarding the interpretation of this Stock
Option Grant Certificate shall be submitted to the Board or the Committee, which
shall review such dispute in accordance with the Plan. The resolution of such a
dispute by the Board or Committee shall be final and binding on the Company and
Optionee.

7.       ENTIRE AGREEMENT AND OTHER MATTERS. The Plan is incorporated herein by
this reference. Optionee acknowledges and agrees that the granting of this
Option constitutes a full accord, satisfaction and release of all obligations or
commitments made to Optionee by the Company or any of its officers, directors,
shareholders or affiliates with respect to the issuance of any securities, or
rights to acquire securities, of the Company or any of its affiliates. This
Stock Option Grant Certificate and the Plan constitute the entire agreement of
the parties hereto, and supersede all prior undertakings and agreements with
respect to the subject matter hereof. This Stock Option Grant Certificate and
the underlying Option are void ab initio unless this Certificate has been
executed by the Optionee and the Optionee has agreed to all terms and provisions
hereof.<PAGE>

                                                                   EXHIBIT 10.40

                                     FORM OF
                            INDEMNIFICATION AGREEMENT

         THIS INDEMNIFICATION AGREEMENT, effective as of ____________, 20___,
between GLOBAL PREFERRED HOLDINGS, INC., a Delaware corporation (the
"Corporation") and __________________ ("Indemnitee").

                              W I T N E S S E T H:
                              - - - - - - - - - -

         WHEREAS, Indemnitee, a member of the Board of Directors and/or an
officer of the Corporation, performs a valuable service in such capacity for the
Corporation; and

         WHEREAS, in order to induce Indemnitee to continue to serve as a
Director and/or an officer of the Corporation, the Corporation has determined
and agreed to enter into this Agreement with Indemnitee.

         NOW, THEREFORE, in consideration of Indemnitee's continued service as a
Director and/or an officer after the date hereof, the parties hereto agree as
follows:

         1.       SERVICES TO THE CORPORATION. Indemnitee will serve, at the
will of the Corporation under separate contract, if any such contract exists, as
an officer and/or Director of the Corporation, or as a director, officer or
other fiduciary of an affiliate of the Corporation (including any employee
benefit plan of the Corporation) faithfully and to the best of his ability so
long as he is duly elected and qualified in accordance with the Certificate of
Incorporation and the Bylaws, as amended or amended and restated from time to
time, of the Corporation or of such affiliate (the "Organizational Documents");
provided, however, that Indemnitee may at any time and for any reason resign
from such position or any other position (subject to any contractual obligation
that Indemnitee may have assumed apart from this Agreement) and that the
Corporation or any affiliate shall have no obligation under this Agreement to
continue Indemnitee in such position or any other position.

         2.       INDEMNITY OF INDEMNITEE. The Corporation hereby agrees to
defend, hold harmless and indemnify Indemnitee to the fullest extent authorized
or permitted by the Organizational Documents and the Delaware General
Corporation Law, as amended (the "Code"), as the same may be amended from time
to time (but only to the extent that any such amendment permits the Corporation
to provide broader indemnification rights than the Organizational Documents or
the Code permitted prior to adoption of such amendment).

         3.       ADDITIONAL INDEMNITY. In addition to and not in limitation of
the indemnification otherwise provided for herein, and subject only to the
Organizational Documents, the Code, any other applicable law and the exclusions
set forth in Section 4 hereof, the Corporation hereby further agrees to defend,
hold harmless and indemnify Indemnitee against any obligation to pay a judgment,
settlement, penalty, fine (including excise tax assess with

<PAGE>

respect to an employment benefit plan) and all actually and reasonably incurred
attorneys' fees, retainers, court costs, transcript costs, fees of experts,
witness fees, travel expenses, duplicating costs, printing and binding costs,
telephone charges, postage, delivery service fees, and all other disbursements
or expenses of the types customarily incurred in connection with any threatened,
pending or completed action, suit or proceeding, whether civil, criminal,
arbitral, administrative or investigative (including an action by or in the
right of the Corporation), to which Indemnitee is, was or at any time becomes a
party, or is threatened to be made a party, by the reason of the fact that
Indemnitee is, was or at any time becomes a director, officer, employee or other
agent of the Corporation or is or was serving or at any time serves at the
written request of the Corporation as a director, officer, employee or other
agent of another corporation, partnership, joint venture, trust, employee
benefit plan or other enterprise. For purposes of this Section 3, Indemnitee
shall be considered to be serving under an employee benefit plan at the request
of the Corporation if his duties to the Corporation also impose duties on, or
otherwise involve services by, him to the plan or to participants in or
beneficiaries of the plan.

         4.       LIMITATIONS ON INDEMNITY. The Corporation shall pay no
indemnity pursuant to this Agreement:

                  (a)      on account of any claim against Indemnitee for an
accounting of profits made from the purchase or sale by Indemnitee of securities
of the Corporation, pursuant to the provisions of Section 16(b) of the
Securities Exchange Act of 1934 and amendments thereto or similar provisions of
any federal, state or local statutory law; or

                  (b)      for which payment has actually been made to
Indemnitee under a valid and collectible insurance policy or under a valid and
enforceable indemnity clause, bylaw or agreement, except in respect of any
excess beyond payment under such insurance, clause, bylaw or agreement; or

                  (c)      in connection with any proceeding (or part thereof)
brought or made by Indemnitee against the Corporation, unless such
indemnification is expressly required to be made by law; or

                  (d)      for acts or omissions which involve a knowing
violation of the law; or

                  (e)      for any transaction form which Indemnitee received
an improper personal benefit; or

                  (f)      if indemnity is finally determined to be unlawful
under the Code.

         5.       NOTIFICATION AND DEFENSE OF CLAIM.

                  (a)      Promptly after receipt by Indemnitee of notice of the
commencement of any action, suit or proceeding, Indemnitee will, if a claim in
respect thereto is to be made against the Corporation under this Agreement,
notify the Corporation of the commencement thereof, but the failure to so notify
the Corporation will not relieve it from any liability which it may have to

                                      -2-
<PAGE>

Indemnitee otherwise under this Agreement. With respect to any such action, suit
or proceeding as to which Indemnitee so notifies the Corporation:

                           (i)      the Corporation will be entitled to
                                    participate therein at its own expense; and

                           (ii)     except as otherwise provided below, to the
                                    extent that it may desire, the Corporation
                                    may assume the defense thereof.

                  (b)      After notice from the Corporation to Indemnitee of
its election to assume the defense thereof, the Corporation will not be liable
to Indemnitee under this Agreement for any legal or other expenses subsequently
incurred by Indemnitee in connection with the defense thereof other than
reasonable costs of investigation or as otherwise provided below. Indemnitee
shall have the right to employ counsel of his choosing in such action, suit or
proceeding but the fees and expenses of such counsel incurred after notice from
the Corporation of its assumption of the defense thereof shall be at the expense
of Indemnitee unless (i) the employment of counsel by Indemnitee has been
authorized in writing by the Corporation, (ii) the Corporation and Indemnitee
shall reasonably conclude that there may be a conflict of interest between the
Corporation and Indemnitee in the conduct of the defense of such action, or
(iii) the Corporation shall not in fact have employed counsel to assume the
defense of such action, in each case the reasonable fees and expenses of
Indemnitee's counsel shall be paid by the Corporation.

                  (c)      The Corporation shall not be liable to Indemnitee
under this Agreement for any amounts paid in settlement of any threatened or
pending action, suit or proceeding without its prior written consent. The
Corporation shall not settle any such action, suit or proceeding in any manner
which would impose any penalty or limitation on Indemnitee without Indemnitee's
prior written consent. Neither the Corporation nor Indemnitee will unreasonably
withhold or delay its or his consent to any proposed settlement.

         6.       PREPAYMENT OF EXPENSES. Unless Indemnitee otherwise elects,
expenses incurred in defending any civil or criminal action, suit or proceeding
shall be paid by the Corporation in advance of the final disposition of such
action, suit or proceeding upon receipt by the Corporation of a written
affirmation of Indemnitee's good faith belief that his conduct meets the
standards required for indemnification under the Code and the Organizational
Documents, and Indemnitee furnishes the Corporation a written undertaking,
executed personally or on his behalf, to repay any advances if it is ultimately
determined that he is not entitled to be indemnified by the Corporation under
this Agreement.

         7.       CONTINUATION OF INDEMNITY. All agreements and obligations of
the Corporation contained in this Agreement shall continue during the period in
which Indemnitee is a member of the Board of Directors and/or an officer of the
Corporation and shall continue thereafter so long as Indemnitee shall be subject
to any threatened, pending or completed action, suit or proceeding, whether
civil, criminal, administrative or investigative, and whether formal or
informal, by reason of the fact that Indemnitee was a director and/or an officer
of the Corporation or is or was serving at the request of the Corporation as a
director, officer, employee, agent or consultant of another corporation,
partnership, joint venture, trust or other enterprise.

                                      -3-
<PAGE>

         8.       RELIANCE. The Corporation has entered into this Agreement in
order to induce Indemnitee to continue as a member of the Board of Directors
and/or an officer of the Corporation, as the case may be, and acknowledges that
Indemnitee is relying upon this Agreement in continuing in such capacity.

         9.       SEVERABILITY. Each of the provisions of this Agreement is a
separate and distinct agreement and independent of the others, so that if any
provision hereof shall be held to be invalid or unenforceable for any reason,
such invalidity or unenforceability shall not affect the validity or
enforceability of the other provisions hereof.

         10.      GENERAL.

                  (a)      This Agreement shall be governed by and construed in
accordance with the laws of the State of Delaware, without regard to its
principles of conflicts of law.

                  (b)      Neither this Agreement nor any rights or obligations
hereunder shall be assigned or transferred by Indemnitee.

                  (c)      This Agreement shall be binding upon Indemnitee and
upon the Corporation, its successors and assigns, including successors by merger
or consolidation, and shall inure to the benefit of Indemnitee, his heirs,
personal representatives and permitted assigns and to the benefit of the
Corporation, its successors and assigns.

                  (d)      No amendment, modification or termination of this
Agreement shall be effective unless in writing signed by both parties hereof.

                         [Signatures on following page.]

                                      -4-
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
and as of the day and year first above written.

INDEMNITEE:                                   GLOBAL PREFERRED HOLDINGS, INC.

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

Title:                                        Date:
      ---------------------------------            ----------------------------

Date:
      ---------------------------------

                                      -5-
<PAGE>

Attachment A
------------

Persons who have entered into Indemnification Agreements with the Registrant:

  Edward F. McKernan
  Caryl P. Shepherd
  Joseph F. Barone
  Thomas W. Montgomery
  C. Simon Scupham
  Eugene M. Howerdd, Jr.
  Milan M. Radonich
  S. Hubert Humphrey, Jr.

                                      -6-

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