Document:

exv10w1

 

EXHIBIT 10.1

UTi WORLDWIDE INC.

2004 LONG-TERM INCENTIVE PLAN

1. Establishment, Purpose, and Types of Awards

     UTi Worldwide Inc. (the “Company”) establishes this UTi Worldwide Inc. 2004 Long-Term
Incentive Plan (the “Plan”) for the purpose of attracting, retaining and motivating select
employees, officers, directors, advisors, and consultants for the Company and its Affiliates and to
provide incentives and awards for superior performance.

     The Plan permits the granting of the following types of awards (“Awards”), according to the
Sections of the Plan listed here:

	 	 	 
	Section 6

	 	Options
	Section 7

	 	Share Appreciation Rights
	Section 8

	 	Restricted Shares and Restricted Share Units
	Section 9

	 	Deferred Share Units
	Section 10

	 	Performance Awards

     The Plan is not intended to affect any stock options, equity-based compensation, or other
benefits that the Company or its Affiliates may have provided, or may separately provide in the
future.

2. Defined Terms

     Terms in the Plan that begin with an initial capital letter have the defined meaning set forth
in Appendix A, unless defined elsewhere in this Plan or the context of their use clearly indicates
a different meaning.

3. Shares Subject to the Plan

     Subject to the provisions of Section 13 of the Plan, the maximum number of Shares that the
Company may issue pursuant to Awards is 2,000,000. These Shares may be authorized but unissued
Shares, or Shares that the Company has reacquired or otherwise holds in treasury.

     Shares that are subject to an Award that for any reason expires, is forfeited, is cancelled,
or becomes unexercisable, and Shares that are for any other reason not paid or delivered under the
Plan shall again, except to the extent prohibited by Applicable Law, be available for subsequent
Awards under the Plan. In addition, the Committee may make future Awards with respect to Shares
that the Company retains from otherwise delivering pursuant to an Award either (i) as payment of
the exercise price of an Award, or (ii) in order to satisfy the withholding or employment taxes due
upon the grant, exercise, vesting, or distribution of an Award.

 

 

4. Administration

     (a) General. The Committee shall administer the Plan in accordance with its terms, provided
that the Board may act in lieu of the Committee on any matter. The Committee shall hold meetings
at such times and places as it may determine and make such rules and regulations for the conduct of
its business as it deems advisable. In the absence of a duly appointed Committee or if the Board
otherwise chooses to act in lieu of a Committee, the Board shall function as the Committee for all
purposes of the Plan.

     (b) Committee Composition. The Board shall appoint the members of the Committee. If and to
the extent permitted by Applicable Law, the Committee may authorize one or more managing directors
or officers to make Awards to individuals who are not Reporting Persons. The Board may at any time
appoint additional members to the Committee, remove and replace members of the Committee with or
without Cause, and fill vacancies on the Committee however caused.

     (c) Powers of the Committee. Subject to the provisions of the Plan, the Committee shall have
the authority, in its sole discretion:

     (i) to determine Eligible Persons to whom Awards shall be granted from time to time and
the number of Shares, units, or SARs to be covered by each Award;

     (ii) to determine, from time to time, the Fair Market Value of Shares;

     (iii) to determine, and to set forth in Award Agreements, the terms and conditions of
all Awards, including any applicable exercise or purchase price, the installments and
conditions under which an Award shall become vested (which may be based on performance),
terminated, expired, cancelled, or replaced, and the circumstances for vesting acceleration
or waiver of forfeiture restrictions, and other restrictions and limitations;

     (iv) to approve the forms of Award Agreements and all other documents, notices and
certificates in connection therewith which need not be identical either as to type of Award
or among Participants;

     (v) to construe and interpret the terms of the Plan and any Award Agreement, to
determine the meaning of their terms, and to prescribe, amend, and rescind rules and
procedures relating to the Plan and its administration; and

     (vi) in order to fulfill the purposes of the Plan and without amending the Plan,
modify, cancel, or waive the Company’s rights with respect to any Awards, to adjust or to
modify Award Agreements for changes in Applicable Law, and to recognize differences in
foreign law, tax policies, or customs; and

     (vii) to make all other interpretations and to take all other actions that the
Committee may consider necessary or advisable to administer the Plan or to effectuate its
purposes.

-2-

 

     Subject to Applicable Law and the restrictions set forth in the Plan, the Committee may
delegate administrative functions to individuals who are managing directors, officers, or Employees
of the Company or its Affiliates.

     (d) Deference to Committee Determinations. The Committee shall have the discretion to
interpret or construe ambiguous, unclear, or implied (but omitted) terms in any fashion it deems to
be appropriate in its sole discretion, and to make any findings of fact needed in the
administration of the Plan or Award Agreements. The Committee’s prior exercise of its
discretionary authority shall not obligate it to exercise its authority in a like fashion
thereafter. The Committee’s interpretation and construction of any provision of the Plan, or of
any Award or Award Agreement, shall be final, binding, and conclusive. The validity of any such
interpretation, construction, decision or finding of fact shall not be given de novo review if
challenged in court, by arbitration, or in any other forum, and shall be upheld unless clearly
arbitrary or capricious.

     (e) No Liability; Indemnification. Neither the Board nor any Committee member, nor any Person
acting at the direction of the Board or the Committee, shall be liable for any act, omission,
interpretation, construction or determination made in good faith with respect to the Plan, any
Award or any Award Agreement. The Company and its Affiliates shall pay or reimburse any member of
the Committee, as well as any Director, Employee, or Consultant who takes action in connection with
the Plan, for all expenses incurred with respect to the Plan, and to the full extent allowable
under Applicable Law shall indemnify each and every one of them for any claims, liabilities, and
costs (including reasonable attorney’s fees) arising out of their good faith performance of duties
under the Plan. The Company and its Affiliates may obtain liability insurance for this purpose.

5. Eligibility

     (a) General Rule. The Committee may grant ISOs only to Employees (including officers who are
Employees), and may grant all other Awards to any Eligible Person. A Participant who has been
granted an Award may be granted an additional Award or Awards if the Committee shall so determine,
if such person is otherwise an Eligible Person and if otherwise in accordance with the terms of the
Plan.

     (b) Grant of Awards. Subject to the express provisions of the Plan, the Committee shall
determine from the class of Eligible Persons those individuals to whom Awards under the Plan may be
granted, the number of Shares subject to each Award, the price (if any) to be paid for the Shares
or the Award and, in the case of Performance Awards, in addition to the matters addressed in
Section 10 below, the specific objectives, goals and performance criteria that further define the
Performance Award. Each Award shall be evidenced by an Award Agreement signed by the Company and,
if required by the Committee, by the Participant. The Award Agreement shall set forth the material
terms and conditions of the Award established by the Committee.

     (c) Limits on Individual Awards. At no time may the number of Shares subject to all Awards
granted to any one Participant under the Plan exceed 500,000, subject to adjustment pursuant to
Section 13 below.

     (d) Replacement Awards. The Committee may, in its sole discretion and upon such terms as it
deems appropriate, require as a condition of the grant of an Award to a Participant that the

-3-

 

Participant surrender for cancellation some or all of the Awards that have previously been
granted to the Participant under this Plan or otherwise. An Award that is conditioned upon such
surrender may or may not be the same type of Award, may cover the same (or a lesser or greater)
number of Shares as such surrendered Award, may have other terms that are determined without regard
to the terms or conditions of such surrendered Award, and may contain any other terms that the
Committee deems appropriate. In the case of Options, these other terms may involve an Exercise
Price that is lower (or higher) than the Exercise Price of the surrendered Option.

6. Option Awards

     (a) Types; Documentation. The Committee may in its discretion grant ISOs to any Employee and
Non-ISOs to any Eligible Person, and shall evidence such grant in an Award Agreement that is
delivered to the Participant. Each Option shall be designated in the Award Agreement as an ISO or
a Non-ISO. At the sole discretion of the Committee, any Option may be exercisable, in whole or in
part, immediately upon the grant thereof, or only after the occurrence of a specified event, or
only in installments, which installments may vary. Options granted under the Plan may contain such
terms and provisions not inconsistent with the Plan that the Committee shall deem advisable in its
sole and absolute discretion.

     (b) ISO $100,000 Limitation. To the extent that the aggregate Fair Market Value of Shares
with respect to which Options designated as ISOs first become exercisable by a Participant in any
calendar year (under this Plan and any other plan of the Company or any Affiliate) exceeds
$100,000, such excess Options shall be treated as Non-ISOs. For purposes of determining whether
the $100,000 limit is exceeded, the Fair Market Value of the Shares subject to an ISO shall be
determined as of the Grant Date. In reducing the number of Options treated as ISOs to meet the
$100,000 limit, the most recently granted Options shall be reduced first. In the event that
Section 422 of the Code is amended to alter the limitation set forth therein, the limitation of
this Section 6(b) shall be automatically adjusted accordingly.

     (c) Term of Options. Each Award Agreement shall specify a term at the end of which the Option
automatically expires, subject to earlier termination provisions contained in Section 6(h) hereof;
provided, that, the term of any Option may not exceed ten years from the Grant Date. In the case
of an ISO granted to an Employee who is a Ten Percent Holder on the Grant Date, the term of the ISO
shall not exceed five years from the Grant Date.

     (d) Exercise Price. The exercise price of an Option shall be determined by the Committee in
its discretion and shall be set forth in the Award Agreement, subject to the following special
rules:

     (i) ISOs. If an ISO is granted to an Employee who on the Grant Date is a Ten
Percent Holder, the per Share exercise price shall not be less than 110% of the Fair Market
Value per Share on such Grant Date. If an ISO is granted to any other Employee, the per
Share exercise price shall not be less than 100% of the Fair Market Value per Share on the
Grant Date.

     (ii) Non-ISOs. The per Share exercise price for the Shares to be issued
pursuant to the exercise of a Non-ISO shall not be less than 85% of the Fair Market Value
per Share on the Grant Date.

-4-

 

     (iii) Named Executives. The per Share exercise price shall not be less than
100% of the Fair Market Value per Share on the Grant Date of an Option if (A) on such Grant
Date, the Participant is subject to the limitations set forth in Section 162(m) of the Code,
and (B) the grant is intended to qualify as performance-based compensation under Section
162(m) of the Code.

     (iv) Repricing. The Committee may at any time unilaterally reduce the exercise
price for any Option, but shall promptly provide a written notice to any Participant
affected by the reduction.

     (e) Exercise of Option. The times, circumstances and conditions under which an Option shall
be exercisable shall be determined by the Committee in its sole discretion and set forth in the
Award Agreement. The Committee shall have the discretion to determine whether and to what extent
the vesting of Options shall be tolled during any unpaid leave of absence; provided, however, that
in the absence of such determination, vesting of Options shall be tolled during any such leave
approved by the Company.

     (f) Minimum Exercise Requirements. An Option may not be exercised for a fraction of a Share.
The Committee may require in an Award Agreement that an Option be exercised as to a minimum number
of Shares, provided that such requirement shall not prevent a Participant from purchasing the full
number of Shares as to which the Option is then exercisable.

     (g) Methods of Exercise. Prior to its expiration pursuant to the terms of the applicable
Award Agreement, each Option may be exercised, in whole or in part (provided that the Company shall
not be required to issue fractional shares), by delivery of written notice of exercise to the
secretary of the Company accompanied by the full exercise price of the Shares being purchased. In
the case of an ISO, the Committee shall determine the acceptable methods of payment on the Grant
Date and it shall be included in the applicable Award Agreement. The methods of payment that the
Committee may in its discretion accept or commit to accept in an Award Agreement include:

     (i) cash or check payable to the Company (in U.S. dollars);

     (ii) other Shares that (A) are owned by the Participant who is purchasing Shares
pursuant to an Option, (B) have a Fair Market Value on the date of surrender equal to the
aggregate exercise price of the Shares as to which the Option is being exercised, (C) were
not acquired by such Participant pursuant to the exercise of an Option, unless such Shares
have been owned by such Participant for at least six months or such other longer period as
the Committee may determine, (D) are all, at the time of such surrender, free and clear of
any and all claims, pledges, liens and encumbrances, or any restrictions which would in any
manner restrict the transfer of such shares to or by the Company (other than such
restrictions as may have existed prior to an issuance of such Shares by the Company to such
Participant), and (E) are duly endorsed for transfer to the Company;

     (iii) a cashless exercise program that the Committee may approve, from time to time in
its discretion, pursuant to which a Participant may concurrently provide irrevocable
instructions (A) to such Participant’s broker or dealer to effect the immediate sale of the
purchased Shares and remit to the Company, out of the sale proceeds available on the
settlement date, sufficient funds to cover the exercise price of the Option plus all
applicable

-5-

 

taxes required to be withheld by the Company by reason of such exercise and (B) to the
Company to deliver the certificates for the purchased Shares directly to such broker or
dealer in order to complete the sale; or

     (iv) any combination of the foregoing methods of payment.

     The Company shall not be required to deliver Shares pursuant to the exercise of an Option
until payment of the full exercise price therefore is received by the Company.

     (h) Termination of Continuous Service. The Committee may establish and set forth in the
applicable Award Agreement the terms and conditions on which an Option shall remain exercisable, if
at all, following termination of a Participant’s Continuous Service. The Committee may waive or
modify these provisions at any time. To the extent that a Participant is not entitled to exercise
an Option at the date of his or her termination of Continuous Service, or if the Participant (or
other person entitled to exercise the Option) does not exercise the Option to the extent so
entitled within the time specified in the Award Agreement or below (as applicable), the Option
shall terminate and the Shares underlying the unexercised portion of the Option shall revert to the
Plan and become available for future Awards. In no event may any Option be exercised after the
expiration of the Option term as set forth in the Award Agreement.

     The following provisions shall apply to the extent an Award Agreement does not specify the
terms and conditions upon which an Option shall terminate when there is a termination of a
Participant’s Continuous Service:

     (i) Termination other than Upon Disability or Death or for Cause. In the event
of termination of a Participant’s Continuous Service (other than as a result of
Participant’s death, disability, retirement or termination for Cause), the Participant shall
have the right to exercise an Option at any time within 90 days following such termination
to the extent the Participant was entitled to exercise such Option at the date of such
termination.

     (ii) Disability. In the event of termination of a Participant’s Continuous
Service as a result of his or her “disability” within the meaning of Section 22(e)(3) of the
Code, the Participant shall have the right to exercise an Option at any time within one year
following such termination to the extent the Participant was entitled to exercise such
Option at the date of such termination.

     (iii) Retirement. In the event of termination of a Participant’s Continuous
Service as a result of Participant’s retirement, the Participant shall have the right to
exercise the Option at any time within six months following such termination to the extent
the Participant was entitled to exercise such Option at the date of such termination.

     (iv) Death. In the event of the death of a Participant during the period of
Continuous Service since the Grant Date of an Option, or within thirty days following
termination of the Participant’s Continuous Service, the Option may be exercised, at any
time within one year following the date of the Participant’s death, by the Participant’s
estate or by a person who acquired the right to exercise the Option by bequest or
inheritance, but only to the extent the right to exercise the Option had vested at the date
of death or, if earlier, the date the Participant’s Continuous Service terminated.

-6-

 

     (v) Cause. If the Committee determines that a Participant’s Continuous Service
terminated due to Cause, the Participant shall immediately forfeit the right to exercise any
Option, and it shall be considered immediately null and void.

     (vi) Buyout Provisions. The Committee may at any time offer to buy out an Option, in
exchange for a payment in cash or Shares, based on such terms and conditions as the
Committee shall establish and communicate to the Participant at the time that such offer is
made. In addition, if the Fair Market Value for Shares subject to an Option is more than
33% below their exercise price for more than 30 consecutive business days, the Committee may
unilaterally terminate and cancel the Option either (i) by paying the Participant, in cash
or Shares, an amount not less than the Black-Scholes value of the vested portion of the
Option, or (ii) by irrevocably committing to grant a new Option, on a designated date more
than six months after such termination and cancellation of such Option (but only if the
Participant’s Continuous Service has not terminated prior to such designated date), on
substantially the same terms as the cancelled Option, provided that the per Share exercise
price for the new Option shall equal the per Share Fair Market Value of a Share on the date
the new grant occurs.

7. Share Appreciate Rights (SARs)

     (a) Grants. The Committee may in its discretion grant Share Appreciation Rights to any
Eligible Person, in any of the following forms:

     (i) SARs related to Options. The Committee may grant SARs either concurrently
with the grant of an Option or with respect to an outstanding Option, in which case the SAR
shall extend to all or a portion of the Shares covered by the related Option. An SAR shall
entitle the Participant who holds the related Option, upon exercise of the SAR and surrender
of the related Option, or portion thereof, to the extent the SAR and related Option each
were previously unexercised, to receive payment of an amount determined pursuant to Section
7(e) below. Any SAR granted in connection with an ISO will contain such terms as may be
required to comply with the provisions of Section 422 of the Code and the regulations
promulgated thereunder.

     (ii) SARs Independent of Options. The Committee may grant SARs which are
independent of any Option subject to such conditions as the Committee may in its discretion
determine, which conditions will be set forth in the applicable Award Agreement.

     (iii) Limited SARs. The Committee may grant SARs exercisable only upon or in
respect of a Change in Control or any other specified event, and such limited SARs may
relate to or operate in tandem or combination with or substitution for Options or other
SARs, or on a stand-alone basis, and may be payable in cash or Shares based on the spread
between the exercise price of the SAR, and (A) a price based upon or equal to the Fair
Market Value of the Shares during a specified period, at a specified time within a specified
period before, after or including the date of such event, or (B) a price related to
consideration payable to Company’s shareholders generally in connection with the event.

     (b) Exercise Price. The per Share exercise price of an SAR shall be determined in the sole
discretion of the Committee, shall be set forth in the applicable Award Agreement, and shall be no

-7-

 

less than 85% of the Fair Market Value of one Share. The exercise price of an SAR related to
an Option shall be the same as the exercise price of the related Option. The exercise price of an
SAR shall be subject to the special rules on pricing contained in paragraphs (iii) and (iv) of
Section 6(d) hereof.

     (c) Exercise of SARs. Unless the Award Agreement otherwise provides, an SAR related to an
Option will be exercisable at such time or times, and to the extent, that the related Option will
be exercisable. An SAR may not have a term exceeding ten years from its Grant Date. An SAR
granted independently of any other Award will be exercisable pursuant to the terms of the Award
Agreement. Whether an SAR is related to an Option or is granted independently, the SAR may only be
exercised when the Fair Market Value of the Shares underlying the SAR exceeds the exercise price of
the SAR.

     (d) Effect on Available Shares. To the extent that an SAR is exercised, only the actual
number of delivered Shares (if any) will be charged against the maximum number of Shares that may
be delivered pursuant to Awards under this Plan. The number of Shares subject to the SAR and the
related Option of the Participant will, however, be reduced by the number of underlying Shares as
to which the exercise relates, unless the Award Agreement otherwise provides.

     (e) Payment. Upon exercise of an SAR related to an Option and the attendant surrender of an
exercisable portion of any related Award, the Participant will be entitled to receive payment of an
amount determined by multiplying –

     (i) the excess of the Fair Market Value of a Share on the date of exercise of the SAR
over the exercise price per Share of the SAR, by

     (ii) the number of Shares with respect to which the SAR has been exercised.

     Notwithstanding the foregoing, an SAR granted independently of an Option may limit the amount
payable to the Participant to a percentage, specified in the Award Agreement but not exceeding
one-hundred percent (100%), of the amount determined pursuant to the preceding sentence.

     (f) Form and Terms of Payment. Subject to Applicable Law, the Committee may, in its sole
discretion, settle the amount determined under Section 7(e) above solely in cash, solely in Shares
(valued at their Fair Market Value on the date of exercise of the SAR), or partly in cash and
partly in Shares. In any event, cash shall be paid in lieu of fractional Shares. Absent a
contrary determination by the Committee, all SARs shall be settled in cash as soon as practicable
after exercise. Notwithstanding the foregoing, the Committee may, in an Award Agreement, determine
the maximum amount of cash or Shares or combination thereof that may be delivered upon exercise of
an SAR.

     (g) Termination of Employment or Consulting Relationship. The Committee shall establish and
set forth in the applicable Award Agreement the terms and conditions on which an SAR shall remain
exercisable, if at all, following termination of a Participant’s Continuous Service. The
provisions of Section 6(h) above shall apply to the extent an Award Agreement does not specify the
terms and conditions upon which an SAR shall terminate when there is a termination of a
Participant’s Continuous Service.

-8-

 

     (h) Repricing and Buy-out. The Committee has the same discretion to reprice and to buy-out
SARs as it has to take such actions with respect to Options.

8. Restricted Shares and Restricted Share Units

     (a) Grants. The Committee may in its discretion grant restricted shares (“Restricted Shares”)
to any Eligible Person and shall evidence such grant in an Award Agreement that is delivered to the
Participant which sets forth the number of Restricted Shares, the purchase price for such
Restricted Shares (if any) and the terms upon which the Restricted Shares may become vested. In
addition, the Company may in its discretion grant the right to receive Shares after certain vesting
requirements are met (“Restricted Share Units”) to any Eligible Person and shall evidence such
grant in an Award Agreement that is delivered to the Participant which sets forth the number of
Shares that the Participant shall be entitled to receive upon vesting and the terms upon which the
Shares subject to a Restricted Share Unit may become vested. The Committee may condition any Award
of Restricted Shares or Restricted Share Units to a Participant on receiving from the Participant
such further assurances and documents as the Committee may require to enforce the restrictions.

     (b) Vesting and Forfeiture. The Committee shall set forth in an Award Agreement granting
Restricted Shares or Restricted Share Units, the terms and conditions under which the Participant’s
interest in the Restricted Shares or the Shares subject to Restricted Share Units will become
vested. Except as set forth in the applicable Award Agreement or the Committee otherwise
determines, upon termination of a Participant’s Continuous Service for any other reason, the
Participant shall forfeit his or her Restricted Shares and Restricted Share Units; provided that if
a Participant purchases the Restricted Shares and forfeits them for any reason, the Company shall
return the purchase price to the Participant only if and to the extent set forth in an Award
Agreement.

     (c) Issuance of Restricted Shares Prior to Vesting. The Company shall issue stock
certificates that evidence Restricted Shares pending the lapse of applicable restrictions, and that
bear a legend making appropriate reference to such restrictions. Except as set forth in the
applicable Award Agreement or the Committee otherwise determines, the Company or a third party that
the Company designates shall hold such Restricted Shares and any dividends that accrue with respect
to Restricted Shares pursuant to Section 8(e) below.

     (d) Issuance of Shares upon Vesting. As soon as practicable after vesting of a Participant’s
Restricted Shares (or Shares underlying Restricted Share Units), the Company shall release to the
Participant, free from the vesting restrictions, one Share for each vested Restricted Share (or
issue one Share free of the vesting restriction for each vested Restricted Share Unit), unless an
Award Agreement provides otherwise. No fractional shares shall be distributed, and cash shall be
paid in lieu thereof.

     (e) Dividends payable on Vesting. Whenever Shares are released to a Participant or
duly-authorized transferee pursuant to Section 8(d) above pursuant to the vesting of Restricted
Shares or the Shares underlying Restricted Share Units are issued to a Participant pursuant to
Section 8(d) above, such Participant or duly-authorized transferee shall also be entitled to
receive, with respect to each Share released or issued, an amount equal to any cash dividends (plus
simple interest at a rate of five percent per annum or such other reasonable rate as the Committee
may determine) and a number of Shares equal to any stock dividends which were declared and paid to
the holders of Shares between the Grant Date and the date such Share is released from the vesting
restrictions in

-9-

 

the case of Restricted Shares or issued in the case of Restricted Share Units.
Notwithstanding the foregoing, the Committee may provide in an Award Agreement that some or all of
such dividends (plus any interest thereon) may not be paid at all, or may be paid on a date or
dates later than those determined in accordance with the preceding sentence or may otherwise be
subject to such restrictions, limitations and conditions as provided in the applicable Award
Agreement.

     (f) Section 83(b) Elections. If a Participant who has received Restricted Share Units
provides the Company with written notice of his or her intention to make an election under Section
83(b) of the Code with respect to the Shares subject to such Restricted Share Units (the “Section
83(b) Election”), the Company shall convert the Participant’s Restricted Share Units into
Restricted Shares, on a one-for-one basis, in full satisfaction of the Participant’s Restricted
Share Unit Award. Shares with respect to which a Participant makes a Section 83(b) Election shall
not be eligible for deferral pursuant to Section 9 below.

     (g) Deferral Elections. At any time within the calendar year in which a Participant who is a
member of a select group of management or highly compensated employees (within the meaning of the
ERISA) receives an Award of either Restricted Shares or Restricted Share Units, the Committee may
permit the Participant to irrevocably elect, on a form provided by and acceptable to the Committee,
to defer the receipt of all or a percentage of the Shares that would otherwise be transferred to
the Participant upon the vesting of such Award. If the Participant makes this election, the Shares
subject to the election, and any associated dividends and interest, shall be deferred pursuant to
Section 9 hereof on the date such Shares would otherwise have been released or issued to the
Participant pursuant to Section 8(d) above.

9. Deferred Share Units

     (a) Elections to Defer. The Committee may permit any Eligible Person who is a Director,
Consultant or member of a select group of management or highly compensated employees (within the
meaning of the ERISA) to irrevocably elect, on a form provided by and acceptable to the Committee
(the “Election Form”), to forego the receipt of cash or other compensation (including Restricted
Shares for which a Section 83(b) Election has not been made, and Shares subject to Restricted Share
Units), and in lieu thereof to have the Company credit to an internal Plan account (the “Account”)
a number of deferred share units (“Deferred Share Units”) having a Fair Market Value equal to the
Shares and other compensation deferred. These credits will be made at the end of each calendar
month during which compensation is deferred. Each Election Form shall take effect five business
days after its delivery to the Company, unless during such five business day period the Company
sends the Participant a written notice explaining why the Election Form is invalid.
Notwithstanding the foregoing sentence, Election Forms shall be ineffective with respect to any
compensation that a Participant earns before the date on which the Company receives the Election
Form.

     (b) Vesting. Deferred Share Units shall be 100% vested at all times.

     (c) Issuances of Shares. The Company shall provide a Participant with one Share for each
Deferred Share Unit in five substantially equal annual installments that are issued before the last
day of each of the five calendar years that end after the date on which the Participant’s
Continuous Service terminates, unless –

-10-

 

     (i) the Participant has properly elected a different form of distribution, on a form
approved by the Committee that permits the Participant to select any combination of a lump
sum and annual installments that are completed within ten years following termination of the
Participant’s Continuous Service, and

     (ii) the Company has received the Participant’s distribution election form either more
than 90 days before a Change in Control, or more than one year before the date on which the
Participant’s Continuous Service terminates for any reason other than death, or before the
Participant’s death.

     Fractional shares shall not be issued, and instead shall be paid out in cash.

     (d) Crediting of Dividends. Whenever Shares are issued to a Participant pursuant to Section
9(c) above, such Participant shall also be entitled to receive, with respect to each Share issued,
a cash amount equal to any cash dividends (plus simple interest at a rate of five percent per
annum, or such other reasonable rate as the Committee may determine), and a number of Shares equal
to any stock dividends which were declared and paid to the holders of Shares between the Grant Date
and the date such Share is issued.

     (e) Hardship Withdrawals. In the event a Participant suffers an unforeseeable hardship within
the contemplation of this Section 9(e) , the Participant may apply to the Company for an immediate
distribution of all or a portion of the Participant’s Deferred Share Units. The hardship must
result from a sudden and unexpected illness or accident of the Participant or a dependent of the
Participant, casualty loss of property, or other similar conditions beyond the control of the
Participant. Examples of purposes which are not considered hardships include post-secondary school
expenses or the desire to purchase a residence. In no event will a distribution be made to the
extent the hardship could be relieved through reimbursement or compensation by insurance or
otherwise, or by liquidation of the Participant’s nonessential assets to the extent such
liquidation would not itself cause a severe financial hardship. The amount of any distribution
hereunder shall be limited to the amount necessary to relieve the Participant’s financial hardship.
The Committee shall determine whether a Participant has a qualifying hardship and the amount which
qualifies for distribution, if any. The Committee may require evidence of the purpose and amount
of the need, and may establish such application or other procedures as it deems appropriate.

     (f) Unsecured Rights to Deferred Compensation. A Participant’s right to Deferred Share Units
shall at all times constitute an unsecured promise of the Company to pay benefits as they come due.
The right of the Participant or the Participant’s duly-authorized transferee to receive benefits
hereunder shall be solely an unsecured claim against the general assets of the Company. Neither
the Participant nor the Participant’s duly-authorized transferee shall have any claim against or
rights in any specific assets, shares, or other funds of the Company.

10. Performance Awards

     (a) Performance Units. The Committee may in its discretion grant Performance Units to any
Eligible Person and shall evidence such grant in an Award Agreement that is delivered to the
Participant which sets forth the terms and conditions of the Award. A Performance Unit is an Award
which is based on the achievement of specific goals with respect to the Company or any Affiliate or
individual performance of the Participant, or a combination thereof, over a specified

-11-

 

period of time. The maximum Performance Unit compensation that may be paid to any one
Participant with respect to any one Performance Period (hereinafter defined) shall be 200,000
Shares and $1,000,000 in cash.

     (b) Performance Compensation Awards. The Committee may, at the time of grant of a Performance
Unit, designate such Award as a “Performance Compensation Award” in order that such Award
constitutes “qualified performance-based compensation” under Code Section 162(m), in which event
the Committee shall have the power to grant such Performance Compensation Award upon terms and
conditions that qualify it as “qualified performance-based compensation” within the meaning of Code
Section 162(m). With respect to each such Performance Compensation Award, the Committee shall
establish, in writing within the time required under Code Section 162(m), a “Performance Period,”
“Performance Measure(s)”, and “Performance Formula(e)” (each such term being hereinafter defined).
Once established for a Performance Period, the Performance Measure(s) and Performance Formula(e)
shall not be amended or otherwise modified to the extent such amendment or modification would cause
the compensation payable pursuant to the Award to fail to constitute qualified performance-based
compensation under Code Section 162(m).

     A Participant shall be eligible to receive payment in respect of a Performance Compensation
Award only to the extent that the Performance Measure(s) for such Award are achieved and the
Performance Formula(e) as applied against such Performance Measure(s) determines that all or some
portion of such Participant’s Award has been earned for the Performance Period. As soon as
practicable after the close of each Performance Period, the Committee shall review and certify in
writing whether, and to what extent, the Performance Measure(s) for the Performance Period have
been achieved and, if so, determine and certify in writing the amount of the Performance
Compensation Award to be paid to the Participant and, in so doing, may use negative discretion to
decrease, but not increase, the amount of the Award otherwise payable to the Participant based upon
such performance. The maximum Performance Compensation Award for any one Participant for any one
Performance Period shall be 200,000 Shares and $1,000,000 in cash.

     (c) Definitions.

     (i) “Performance Formula” means, for a Performance Period, one or more objective
formulas or standards established by the Committee for purposes of determining whether or
the extent to which an Award has been earned based on the level of performance attained or
to be attained with respect to one or more Performance Measure(s). Performance Formulae may
vary from Performance Period to Performance Period and from Participant to Participant and
may be established on a stand-alone basis, in tandem or in the alternative.

     (ii) “Performance Measure” means one or more of the following selected by the Committee
to measure Company, Affiliate, and/or business unit performance for a Performance Period,
whether in absolute or relative terms (including, without limitation, terms relative to a
peer group or index): basic or diluted earnings per share; sales or revenue; earnings
before interest and taxes (in total or on a per share basis); net income; returns on equity,
assets, capital, revenue or similar measure; economic value added; working capital; total
shareholder return; and product development, product market share, research, licensing,
litigation, human resources, information services, mergers, acquisitions, sales of assets of
Affiliates or business units. Each such measure shall be to the extent applicable,

-12-

 

determined in accordance with generally accepted accounting principles as consistently
applied by the Company (or such other standard applied by the Committee) and, if so
determined by the Committee, and in the case of a Performance Compensation Award, to the
extent permitted under Code Section 162(m), adjusted to omit the effects of extraordinary
items, gain or loss on the disposal of a business segment, unusual or infrequently occurring
events and transactions and cumulative effects of changes in accounting principles.
Performance Measures may vary from Performance Period to Performance Period and from
Participant to Participant, and may be established on a stand-alone basis, in tandem or in
the alternative.

     (iii) “Performance Period” means one or more periods of time (of not less than one
fiscal year of the Company), as the Committee may designate, over which the attainment of
one or more Performance Measure(s) will be measured for the purpose of determining a
Participant’s rights in respect of an Award.

11. Taxes

     (a) General. As a condition to the issuance or distribution of Shares pursuant to the Plan,
the Participant (or in the case of the Participant’s death, the person who succeeds to the
Participant’s rights) shall make such arrangements as the Company may require for the satisfaction
of any applicable federal, state, local or foreign withholding tax obligations that may arise in
connection with the Award and the issuance of Shares. The Company shall not be required to issue
any Shares until such obligations are satisfied. If the Committee allows the withholding or
surrender of Shares to satisfy a Participant’s tax withholding obligations, the Committee shall not
allow Shares to be withheld in an amount that exceeds the minimum statutory withholding rates for
applicable tax purposes, including payroll taxes.

     (b) Default Rule for Employees. In the absence of any other arrangement, an Employee shall be
deemed to have directed the Company to withhold or collect from his or her cash compensation an
amount sufficient to satisfy such tax obligations from the next payroll payment otherwise payable
after the date of the exercise of an Award.

     (c) Special Rules. In the case of a Participant other than an Employee (or in the case of an
Employee where the next payroll payment is not sufficient to satisfy such tax obligations, with
respect to any remaining tax obligations), in the absence of any other arrangement and to the
extent permitted under the Applicable Law, the Participant shall be deemed to have elected to have
the Company withhold from the Shares or cash to be issued pursuant to an Award that number of
Shares having a Fair Market Value determined as of the applicable Tax Date (as defined below) equal
to the amount required to be withheld. For purposes of this Section 11, the Fair Market Value of
the Shares to be withheld shall be determined on the date that the amount of tax to be withheld is
to be determined under the Applicable Law (the “Tax Date”).

     (d) Surrender of Shares. If permitted by the Committee, in its discretion, a Participant may
satisfy the minimum statutory tax withholding and employment tax obligations associated with an
Award by surrendering Shares to the Company (including Shares that would otherwise be issued
pursuant to the Award) that have a Fair Market Value determined as of the applicable Tax Date equal
to the amount required to be withheld. In the case of Shares previously acquired from the Company
that are surrendered under this Section 11, such Shares must have been owned by the

-13-

 

Participant for more than six months on the date of surrender (or such longer period of time
the Company may in its discretion require).

12. Non-Transferability of Awards

     (a) General. Except as set forth in this Section 12, or as otherwise approved by the
Committee for a select group of management or highly compensated Employees, Awards may not be sold,
pledged, assigned, hypothecated, transferred or disposed of in any manner other than by will or by
the laws of descent or distribution. The designation of a beneficiary by a Participant will not
constitute a transfer. An Award may be exercised, during the lifetime of the holder of an Award,
only by such holder, the duly-authorized legal representative of a disabled Participant, or a
transferee permitted by this Section 12.

     (b) Limited Transferability Rights. Notwithstanding anything else in this Section 12, the
Committee may in its discretion provide that an Award may be transferred by instrument to an inter
vivos or testamentary trust (or other entity) in which the Award is to be passed to beneficiaries
upon the death of the trustor (settlor), or by gift to charitable institutions, the Participant’s
“Immediate Family” (as defined below), on such terms and conditions as the Committee deems
appropriate. “Immediate Family” means any child, stepchild, grandchild, parent, stepparent,
grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law,
son-in-law, daughter-in-law, brother-in-law, or sister-in-law, and shall include adoptive
relationships.

13. Adjustments Upon Changes in Capitalization, Merger or Certain Other Transactions

     (a) Changes in Capitalization. The Committee may equitably adjust the number of Shares
covered by each outstanding Award, and the number of Shares that have been authorized for issuance
under the Plan but as to which no Awards have yet been granted or that have been returned to the
Plan upon cancellation, forfeiture, or expiration of an Award, as well as the price per Share
covered by each such outstanding Award, to reflect any increase or decrease in the number of issued
Shares resulting from a stock-split, reverse stock-split, stock dividend, combination,
recapitalization or reclassification of the Shares, or any other increase or decrease in the number
of issued Shares effected without receipt of consideration by the Company. In the event of any
such transaction or event, the Committee may provide in substitution for any or all outstanding
Options under the Plan such alternative consideration (including securities of any surviving
entity) as it may in good faith determine to be equitable under the circumstances and may require
in connection therewith the surrender of all Options so replaced. In any case, such substitution
of securities shall not require the consent of any person who is granted options pursuant to the
Plan. Except as expressly provided herein, no issuance by the Company of shares of stock of any
class, or securities convertible into shares of stock of any class, shall affect, and no adjustment
by reason thereof shall be required to be made with respect to, the number or price of Shares
subject to any Award.

     (b) Dissolution or Liquidation. In the event of the dissolution or liquidation of the Company
other than as part of a Change of Control, each Award will terminate immediately prior to the
consummation of such action, subject to the ability of the Board to exercise any discretion
authorized in the case of a Change in Control.

     (c) Change in Control. In the event of a Change in Control, each outstanding Award shall be
assumed or a substantially equivalent award shall be substituted by the surviving or successor

-14-

 

corporation or a parent or subsidiary of such surviving or successor corporation (the
“Successor Corporation”) upon the consummation of the transaction; provided, however, that to the
extent outstanding Awards are neither being assumed nor replaced with substantially equivalent
Awards by the Successor Corporation, the Board shall have the discretion and authority, with
respect to such Awards:

     (i) to provide that the vesting of such Awards shall accelerate so that Awards shall
vest (and, to the extent applicable, become exercisable) as to the Shares that otherwise
would have been unvested, and provide that any repurchase right of the Company with respect
to Shares issued upon exercise of an Award shall lapse as to the Shares subject to such
repurchase right;

     (ii) that the Company or Successor Corporation shall pay cash or other consideration to
Participants in exchange for the satisfaction and cancellation of outstanding Awards; and

     (iii) to make such other modifications, adjustments or amendments to outstanding Awards
or this Plan as the Committee deems necessary or appropriate, including terminating Awards
upon consummation of a transaction or upon the occurrence of any other event.

     Notwithstanding the above, in the event a Participant holding an Award assumed or substituted
by the Successor Corporation in a Change in Control is Involuntarily Terminated by the Successor
Corporation in connection with, or within 12 months following consummation of, the Change in
Control, then any assumed or substituted Award held by the terminated Participant at the time of
termination shall accelerate and become fully vested (and exercisable in full in the case of
Options and SARs), and any repurchase right applicable to any Shares shall lapse in full, unless an
Award Agreement provides for a more restrictive acceleration or vesting schedule or more
restrictive limitations on the lapse of repurchase rights or otherwise places additional
restrictions, limitations and conditions on an Award. The acceleration of vesting and lapse of
repurchase rights provided for in the previous sentence shall occur immediately prior to the
effective date of the Participant’s termination, unless an Award Agreement provides otherwise.

     For purposes of this Section 13(c), an Award shall be considered assumed, without limitation,
if each holder of an Award would be entitled to receive upon exercise of the Award the same number
and kind of Shares or other property, cash or securities as such holder would have been entitled to
receive upon the consummation of the transaction if the holder had been, immediately prior to such
consummation, the holder of the number of Shares covered by the Award at such time (after giving
effect to any adjustments in the number of Shares covered by the Award as provided for in this
Section 13); provided that if such consideration received in the transaction is not solely common
stock of the Successor Corporation, the Board may, with the consent of the Successor Corporation,
provide for the consideration to be received upon exercise of the award to be solely common stock
of the Successor Corporation equal to the Fair Market Value of the per Share consideration received
by holders of Shares in the transaction.

     (d) Certain Distributions. In the event of any distribution to the Company’s shareholders of
securities of any other entity or other assets (other than dividends payable in cash or stock of
the Company) without receipt of consideration by the Company, the Committee may, in its discretion,

-15-

 

appropriately adjust the price per Shares covered by each outstanding Award to reflect the
effect of such distribution.

     14. Time of Granting Awards. The date of grant (“Grant Date”) of an Award shall be the
date on which the Committee makes the determination granting such Award or such other date as is
determined by the Committee, provided that in the case of an ISO, the Grant Date shall be the later
of the date on which the Committee makes the determination granting such ISO or the date of
commencement of the Participant’s employment relationship with the Company.

15. Modification of Awards and Substitution of Options.

     (a) Modification, Extension, and Renewal of Awards. Within the limitations of the Plan, the
Committee may modify an Award, accelerate the rate at which an Option or SAR may be exercised
(including without limitation permitting an Option or SAR to be exercised in full without regard to
the installment or vesting provisions of the applicable Award Agreement or whether the Option or
SAR is at the time exercisable, to the extent it has not previously been exercised), accelerate the
vesting of any Award, extend or renew outstanding Awards, or accept the cancellation of outstanding
Awards to the extent not previously exercised either for the granting of new Awards or for other
consideration in substitution or replacement thereof. The foregoing notwithstanding, no
modification of an outstanding Award shall materially and adversely affect such Participant’s
rights thereunder, unless either the Participant provides written consent or there is an express
Plan provision permitting the Committee to unilaterally make the modification.

     (b) Substitution of Options. Notwithstanding any inconsistent provisions or limits under the
Plan, in the event the Company or an Affiliate acquires (whether by purchase, merger or otherwise)
all or substantially all of outstanding capital stock or assets of another corporation or in the
event of any reorganization or other transaction qualifying under Section 424 of the Code, the
Committee may, in accordance with the provisions of that Section, substitute Options for options
under the plan of the acquired company provided (i) the excess of the aggregate fair market value
of the shares subject to an option immediately after the substitution over the aggregate option
price of such shares is not more than the similar excess immediately before such substitution and
(ii) the new Option does not give persons additional benefits, including any extension of the
exercise period.

     16. Term of Plan. The Plan shall continue in effect for a term of ten (10) years from its
effective date as determined under Section 20 below, unless the Plan is sooner terminated under
Section 17 below.

17. Amendment and Termination of the Plan.

     (a) Authority to Amend or Terminate. Subject to Applicable Laws, the Board may from time to
time amend, alter, suspend, discontinue, or terminate the Plan.

     (b) Effect of Amendment or Termination. No amendment, suspension, or termination of the Plan
shall materially and adversely affect Awards already granted unless either it relates to an
adjustment pursuant to Section 13 above, or it is otherwise mutually agreed between the Participant
and the Committee, which agreement must be in writing and signed by the Participant and the
Company. Notwithstanding the foregoing, the Committee may amend the Plan to eliminate

-16-

 

provisions which are no longer necessary as a result of changes in tax or securities laws or
regulations, or in the interpretation thereof.

     18. Conditions Upon Issuance of Shares. Notwithstanding any other provision of the Plan or
any agreement entered into by the Company pursuant to the Plan, the Company shall not be obligated,
and shall have no liability for failure, to issue or deliver any Shares under the Plan unless such
issuance or delivery would comply with the Applicable Law, with such compliance determined by the
Company in consultation with its legal counsel.

     19. Reservation of Shares. The Company, during the term of this Plan, will at all times
reserve and keep available such number of Shares as shall be sufficient to satisfy the requirements
of the Plan.

     20. Effective Date. This Plan shall become effective on the date of its approval by the
Board; provided that this Plan shall be submitted to the Company’s shareholders for approval, and
if not approved by the shareholders within one year from the date of approval by the Board, this
Plan and any Awards shall be null, void, and of no force and effect. Awards granted under this
Plan before approval of this Plan by the shareholders shall be granted subject to such approval and
no Shares shall be distributed before such approval.

     21. Controlling Law. All disputes relating to or arising from the Plan shall be governed
by the internal substantive laws (and not the laws of conflicts of laws) of the British Virgin
Islands, to the extent not preempted by United States federal law. If any provision of this Plan
is held by a court of competent jurisdiction to be invalid and unenforceable, the remaining
provisions shall continue to be fully effective.

22. Laws And Regulations.

     (a) U.S. Securities Laws. This Plan, the grant of Awards, and the exercise of Options and
SARs under this Plan, and the obligation of the Company to sell or deliver any of its securities
(including, without limitation, Options, Restricted Shares, Restricted Share Units, Deferred Share
Units, and Shares) under this Plan shall be subject to all Applicable Law. In the event that the
Shares are not registered under the Securities Act of 1933, as amended (the “Act”), or any
applicable state securities laws prior to the delivery of such Shares, the Committee may require,
as a condition to the issuance thereof, that the persons to whom Shares are to be issued represent
and warrant in writing to the Company that such Shares are being acquired by him or her for
investment for his or her own account and not with a view to, for resale in connection with, or
with an intent of participating directly or indirectly in, any distribution of such Shares within
the meaning of the Act, and a legend to that effect may be placed on the certificates representing
the Shares.

     (b) Other Jurisdictions. To facilitate the making of any grant of an Award under this Plan,
the Committee may provide for such special terms for Awards to Participants who are foreign
nationals or who are employed by the Company or any Affiliate outside of the United States of
America as the Committee may consider necessary or appropriate to accommodate differences in local
law, tax policy or custom. The Committee may adopt rules and procedures relating to the operation
and administration of this Plan to accommodate the specific requirements of local laws and
procedures of particular countries. Without limiting the foregoing, the Committee is specifically
authorized to adopt rules and procedures regarding the conversion of local currency, taxes,

-17-

 

withholding procedures and handling of stock certificates which vary with the customs and
requirements of particular countries. The Committee may adopt sub-plans and establish escrow
accounts and trusts as may be appropriate or applicable to particular locations and countries.

     23. No Shareholder Rights. Neither a Participant nor any transferee of a Participant shall
have any rights as a shareholder of the Company with respect to any Shares underlying any Award
until the date of entry of their name with respect to such Shares in the Company’s Registry of
Members in accordance with the Company’s Memorandum and Articles of Association. Prior to the
issuance of Shares pursuant to an Award (as evidenced by the entry of the Participant’s name with
respect to such Shares in the Company’s Registry of Members in accordance with the Company’s
Memorandum and Articles of Association), a Participant shall not have the right to vote or to
receive dividends or any other rights as a shareholder with respect to the Shares underlying the
Award, notwithstanding its exercise in the case of Options and SARs. No adjustment will be made
for a dividend or other right that is determined based on a record date prior to the date the stock
certificate is issued, except as otherwise specifically provided for in this Plan.

     24. No Employment Rights. The Plan shall not confer upon any Participant any right to
continue an employment, service or consulting relationship with the Company, nor shall it affect in
any way a Participant’s right or the Company’s right to terminate the Participant’s employment,
service, or consulting relationship at any time, with or without Cause.

-18-

 

UTi WORLDWIDE INC.

2004 LONG-TERM INCENTIVE PLAN

 

Appendix A: Definitions

 

As used herein, the following definitions shall apply:

     “Affiliate” means any entity, including any “parent corporation” or “subsidiary
corporation” within the meaning of Section 424 of the Code, which together with the Company is
under common control within the meaning of Section 414 of the Code.

     “Applicable Law” means the legal requirements relating to the administration of
options and share-based plans under applicable U.S. federal and state laws, the Code, any
applicable stock exchange rules or regulations, and the applicable laws of any other country or
jurisdiction where Awards are granted, as such laws, rules, regulations and requirements shall be
in place from time to time.

     “Award” means any award made pursuant to the Plan, including awards made in the form
of an Option, an SAR, a Restricted Share, a Restricted Share Unit, a Deferred Share Unit and a
Performance Award, or any combination thereof, whether alternative or cumulative, authorized by and
granted under this Plan.

     “Award Agreement” means any written document setting forth the terms of an Award that
has been authorized by the Committee. The Committee shall determine the form or forms of documents
to be used, and may change them from time to time for any reason, including different documents as
may be appropriate or applicable for particular locations and countries.

     “Board” means the Board of Directors of the Company.

     “Cause” for termination of a Participant’s Continuous Service will exist if the
Participant is terminated from employment or other service with the Company or an Affiliate for any
of the following reasons: (i) the Participant’s willful failure substantially to perform his or
her duties and responsibilities to the Company or deliberate violation of a Company policy; (ii)
the Participant’s commission of any material act of fraud, embezzlement, dishonesty or any other
willful misconduct; (iii) material unauthorized use or disclosure by the Participant of any
proprietary information or trade secrets of the Company or any other party to whom the Participant
owes an obligation of nondisclosure as a result of his or her relationship with the Company; or
(iv) Participant’s willful and material breach of any of his or her obligations under any written
agreement or covenant with the Company. The determination as to whether a Participant is being
terminated for Cause shall be made in good faith by the Committee, and shall be final and binding
on the Participant. The foregoing definition does not in any way limit the Company’s ability to
terminate a Participant’s employment or consulting relationship at any time, and the term “Company”
will be interpreted herein to include any Affiliate or successor thereto, if appropriate.

     “Change in Control” shall be deemed to have occurred if:

-19-

 

     (i) a sale, transfer, or other disposition of all or substantially all of the Company’s
assets and properties is closed or consummated;

     (ii) any “person”, “entity” or “group” (within the meaning of Section 13(d)(3) or
14(d)(2) of the Exchange Act), other than the Company or any majority-owned subsidiary of
the Company, is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of securities of the Company representing fifty
percent (50%) or more of the combined voting power of the Company’s then outstanding
securities that have the right to vote in the election of directors generally, provided,
however, that the following shall not constitute a “Change in Control” of the Company:

	 	(a)	 	any acquisition directly from the Company or
any subsidiary thereof (excluding any acquisition resulting from the
exercise of a conversion or exchange privilege in respect of
outstanding convertible or exchangeable securities); or
	 
	 	(b)	 	any acquisition by an employee benefit plan (or
related trust) sponsored or maintained by the Company or any entity
controlled by the Company.

     (iii) during any period of two consecutive years during the term of this Plan,
individuals who at the beginning of such period constitute the Board cease for any reason to
constitute at least a majority thereof, unless the election of each director who was not a
director at the beginning of such period has been approved in advance by directors
representing at least two-thirds of the directors then in office who were directors at the
beginning of the period; or

     (iv) the Company is dissolved or liquidated or a merger, reorganization, or
consolidation involving the Company is closed or consummated, other than a merger,
reorganization, or consolidation in which holders of the combined voting power of the
Company’s then outstanding securities that have the right to vote in the election of
directors generally immediately prior to such transaction own, either directly or
indirectly, fifty percent (50%) or more of the combined voting power of the securities
entitled to vote in the election of directors generally of the reorganized, merged or
consolidated entity (or its parent company) immediately following such transaction.

     “Code” means the U.S. Internal Revenue Code of 1986, as amended.

     “Committee” means one or more committees or subcommittees of the Board appointed by
the Board to administer the Plan in accordance with Section 4 above. With respect to any decision
involving an Award intended to satisfy the requirements of Section 162(m) of the Code, the
Committee shall consist of two or more Directors of the Company who are “outside directors” within
the meaning of Section 162(m) of the Code.

     “Company” means UTi Worldwide, Inc. a British Virgin Islands corporation.

     “Consultant” means any person, including an advisor, who is engaged by the Company or
any Affiliate to render services and is compensated for such services.

-20-

 

     “Continuous Service” means the absence of any interruption or termination of service
as an Employee, Director, or Consultant. Continuous Service shall not be considered interrupted in
the case of: (i) sick leave; (ii) military leave; (iii) any other leave of absence approved by the
Committee, provided that such leave is for a period of not more than 90 days, unless reemployment
upon the expiration of such leave is guaranteed by contract or statute, or unless provided
otherwise pursuant to Company policy adopted from time to time; (iv) changes in status from
Director to advisory director or emeritus status; or (iv) in the case of transfers between
locations of the Company or between the Company, its Affiliates or their respective successors.
Changes in status between service as an Employee, Director, and a Consultant will not constitute an
interruption of Continuous Service.

     “Deferred Share Units” mean Awards pursuant to Section 9 of the Plan.

     “Director” means a member of the Board, or a member of the board of directors of an
Affiliate.

     “Eligible Person” means any Consultant, Director or Employee and includes
non-Employees to whom an offer of employment has been extended.

     “Employee” means any person whom the Company or any Affiliate classifies as an
employee (including an officer) for employment tax purposes. The payment by the Company of a
director’s fee to a Director shall not be sufficient to constitute “employment” of such Director by
the Company.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “Fair Market Value” means, as of any date (the “Determination Date”) means: (i) the
closing price of a Share on the New York Stock Exchange or the American Stock Exchange
(collectively, the “Exchange”), on the Determination Date, or, if shares were not traded on the
Determination Date, then on the nearest preceding trading day during which a sale occurred; or (ii)
if such stock is not traded on the Exchange but is quoted on NASDAQ or a successor quotation
system, (A) the last sales price (if the stock is then listed as a National Market Issue under The
Nasdaq National Market System) or (B) the mean between the closing representative bid and asked
prices (in all other cases) for the stock on the Determination Date as reported by NASDAQ or such
successor quotation system; or (iii) if such stock is not traded on the Exchange or quoted on
NASDAQ but is otherwise traded in the over-the-counter, the mean between the representative bid and
asked prices on the Determination Date; or (iv) if subsections (i)-(iii) do not apply, the fair
market value established in good faith by the Board.

     “Grant Date” has the meaning set forth in Section 14 of the Plan.

     “Incentive Share Option or ISO” hereinafter means an Option intended to qualify as an
incentive stock option within the meaning of Section 422 of the Code, as designated in the
applicable Award Agreement.

     “Involuntary Termination” means termination of a Participant’s Continuous Service
under the following circumstances occurring on or after a Change in Control: (i) termination
without Cause by the Company or an Affiliate or successor thereto, as appropriate; or (ii)
voluntary termination by the Participant within 60 days following (A) a material reduction in the
Participant’s

-21-

 

job responsibilities, provided that neither a mere change in title alone nor reassignment to a
substantially similar position shall constitute a material reduction in job responsibilities; (B)
an involuntary relocation of the Participant’s work site to a facility or location more than 25
miles from the Participant’s principal work site at the time of the Change in Control; or (C) a
material reduction in Participant’s total compensation other than as part of an reduction by the
same percentage amount in the compensation of all other similarly-situated Employees, Directors or
Consultants.

     “Non-ISO” means an Option not intended to qualify as an ISO, as designated in the
applicable Award Agreement.

     “Option” means any stock option granted pursuant to Section 6 of the Plan.

     “Participant” means any holder of one or more Awards, or the Shares issuable or issued
upon exercise of such Awards, under the Plan.

     “Performance Awards” mean Performance Units and Performance Compensation Awards
granted pursuant to Section 10.

     “Performance Compensation Awards” mean Awards granted pursuant to Section 10(b) of the
Plan.

     “Performance Unit” means Awards granted pursuant to Section 10(a) of the Plan which
may be paid in cash, in Shares, or such combination of cash and Shares as the Committee in its sole
discretion shall determine.

     “Plan” means this UTi Worldwide Inc. 2004 Long-term Incentive Plan.

     “Reporting Person” means an officer, Director, or greater than ten percent shareholder
of the Company within the meaning of Rule 16a-2 under the Exchange Act, who is required to file
reports pursuant to Rule 16a-3 under the Exchange Act.

     “Restricted Shares” mean Shares subject to restrictions imposed pursuant to Section 8
of the Plan.

     “Restricted Share Units” mean Awards pursuant to Section 8 of the Plan.

     “Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act, as amended from time
to time, or any successor provision.

     “SAR” or “Share Appreciation Right” means Awards granted pursuant to Section 7 of the
Plan.

     “Share” means an ordinary voting share of the Company, as adjusted in accordance with
Section 13 of the Plan.

     “Ten Percent Holder” means a person who owns stock representing more than ten percent
(10%) of the combined voting power of all classes of stock of the Company or any Affiliate.

-22-exv10w2

 

EXHIBIT 10.2

UTi WORLDWIDE INC.

2004 NON-EMPLOYEE DIRECTORS SHARE INCENTIVE PLAN

     1. PURPOSE. The purpose of this UTi Worldwide Inc. 2004 Non-Employee Directors Share
Incentive Plan (the “Plan”) is to advance the interests of UTi Worldwide Inc., a British Virgin
Islands corporation (the “Company”), and its shareholders (members) (referred to herein as
“shareholders”) by (a) encouraging increased share ownership by the Company’s directors who are not
employees of the Company or any of its subsidiaries, (b) enhancing the Company’s ability to attract
and retain the services of experienced, able and knowledgeable persons to serve as directors, and
(c) providing additional incentive for directors to contribute their best efforts to the Company’s
success.

     2. AWARDS. The Plan permits the granting of the following types of awards (“Awards”
or individually, an “Award”), according to the sections of the Plan listed here:

	 	 	 
	Section 5

	 	Restricted Share Units and Restricted Shares
	Section 6

	 	Elective Grants
	Section 7

	 	Deferred Share Units

The date of grant of any Award is referred to herein as the “Grant Date.”

     3. ADMINISTRATION AND AGREEMENTS

          (a) Plan Administration. This Plan shall be administered by the Company’s Board of
Directors (the “Board”). The Board shall have full authority, consistent with this Plan, to
construe and interpret this Plan and any agreements defining the rights and obligations of the
Company and Eligible Directors (as defined below) under the Plan, to promulgate, amend and rescind
such rules and regulations with respect to this Plan as it deems desirable and to make all other
determinations necessary or desirable for the administration of this Plan. Unless arbitrary and
capricious, all decisions, determinations and interpretations of the Board shall be binding upon
all Eligible Directors, the Company, and all other interested persons. The Board may, in its
discretion, delegate any or all of its authority under the Plan to a committee consisting of two or
more non-employee directors of the Company, so long as allowable under applicable law. If such
Board authority is so delegated to a committee, all references to the Board in this Plan shall mean
and relate to such committee to the extent of the powers so delegated. The Company shall pay or
reimburse any member of the Board, as well as any employee or consultant who takes action in
connection with the Plan, for all expenses incurred with respect to the Plan, and shall indemnify
each and every one of them for any claims, liabilities, and costs (including reasonable attorneys’
fees) arising out of their good faith performance of duties under the Plan. The Company may obtain
liability insurance for this purpose.

          (b) Award Agreements. Awards made pursuant to this Plan shall be evidenced by a
written agreement executed by the Company and the Eligible Director receiving such Award. Each
such agreement shall state the terms and conditions of the Award, not inconsistent with this Plan,
as the Board in its sole discretion shall determine and approve. The Company shall maintain
records as to all Awards granted under the Plan.

 

 

     4. SHARES SUBJECT TO THE PLAN. The shares of stock to be issued pursuant to Awards
shall be authorized shares of the Company’s voting ordinary shares (“Shares” or, individually, a
“Share”), either previously unissued or previously issued but reacquired by the Company. The
aggregate number of Shares to be issued pursuant to Awards shall be Two Hundred Thousand (200,000),
subject to adjustment as provided in Section 8 below. Any Share subject to an Award which is
cancelled, terminated, forfeited, or otherwise expires shall again be available for subsequent
Awards under this Plan.

5. RESTRICTED SHARE UNITS AND RESTRICTED SHARES

          (a) Eligible Director. As used herein, “Eligible Director” means any of the Company’s
directors who are not employees of the Company or any subsidiary of the Company and have not been
employees of the Company or any subsidiary of the Company during the twelve (12) months preceding
(i) the date such person first became a director for purposes of Section 5(c) below or (ii) the
date of an Annual Meeting (as defined below) for purposes of Section 5 (d) below (collectively,
“Eligible Directors” and individually, an “Eligible Director”).

          (b) Grants. The Company shall grant to Eligible Directors the right to receive Shares
after certain vesting requirements are met (“Restricted Share Units”) or, in the Board’s sole
discretion, restricted Shares (“Restricted Shares”) in accordance with the terms and conditions set
forth in this Section 5. Subject to the requirements set forth in Sections 5(c), 5(d) and 5(e)
below, the Board shall have the sole discretion to determine whether Restricted Share Units or
Restricted Shares will be granted under this Section 5 at any given time.

          (c) Initial Awards. The Company shall grant, to each person who first becomes an
Eligible Director after the date this Plan becomes effective pursuant to Section 13 below (but,
excluding each person who was already serving as an Eligible Director on the date of the Annual
Meeting at which this Plan is first approved by the Company’s shareholders) on the date such person
first becomes an Eligible Director, an initial Award (the “Initial Award”) of that number of
Restricted Share Units (or, if determined by the Board, Restricted Shares) determined by dividing
$65,000 or such other amount as determined by the Board in its sole discretion from time to time
(the “Initial Award Amount”), by the Fair Market Value (as defined below) on the Grant Date. If an
Eligible Director first becomes an Eligible Director on a date other than the date of an annual
meeting of the Company’s shareholders (an “Annual Meeting”), the Initial Award Amount then in
effect shall be reduced to an amount equal to the product of the Initial Award Amount times a
fraction, (i) the numerator of which shall be the difference between 365 and the number of days
elapsed since the Annual Meeting immediately preceding such Eligible Director’s election and (ii)
the denominator of which shall be 365. If the number of Restricted Share Units or Restricted Shares
in an Initial Award is less than a whole number, such number shall be rounded to the nearest whole
number.

          (d) Automatic Awards. On the date of each Annual Meeting, commencing with the Annual
Meeting at which this Plan is first approved by the Company’s shareholders (subject to the
limitations contained in this Section 5(d)), the Company shall grant to each Eligible Director as
of the date of such meeting an Award (an “Automatic Award”) of that

-2-

 

number of Restricted Share Units (or, if determined by the Board, Restricted Shares)
determined by dividing $65,000 or such other amount as determined by the Board in its sole
discretion from time to time, by the Fair Market Value on the Grant Date, provided that such
Eligible Director continues as a director after such Annual Meeting. If an Eligible Director
receives an Initial Award on the date of an Annual Meeting, then such Eligible Director shall not
be entitled to an Automatic Award pursuant to this Section 5(d) with respect to the same Annual
Meeting. Notwithstanding anything in this Section 5(d) to the contrary, if an Eligible Director
received an initial grant of options pursuant to Section 5(b) of the Company’s previously existing
Non-Employee Director Share Option Plan within twelve (12) months of the Annual Meeting pursuant to
which this Plan is first approved by the Company’s shareholders, then such Eligible Director shall
not be entitled to receive an Automatic Award pursuant to this Section 5(d) on the date of the
Annual Meeting at which this Plan is so approved by the shareholders. If the number of Restricted
Share Units or Restricted Shares in an Automatic Award is less than a whole number, such number
shall be rounded to the nearest whole number.

          (e) Chairman Awards. On the date of each Annual Meeting, commencing with the Annual
Meeting at which this Plan is first approved by the Company’s shareholders, the Company shall grant
to the Chairman of the Board, if the Chairman of the Board is then an Eligible Director, as of the
date of such meeting, an Award of that number of Restricted Share Units (or, if determined by the
Board, Restricted Shares) determined by dividing $12,000 or such other amount as determined by the
Board in its sole discretion from time to time, by the Fair Market Value on the Grant Date,
provided that such person continues to be both an Eligible Director and Chairman of the Board after
the Annual Meeting (a “Chairman Award”). A Chairman Award made pursuant to this Section 5(e) shall
be in addition to any Initial Awards or Automatic Awards an Eligible Director might otherwise be
entitled to receive pursuant to Sections 5(c) and 5(d) above. If the number of Restricted Share
Units or Restricted Shares in a Chairman Award is less than a whole number, such number shall be
rounded to the nearest whole number.

          (f) Definition of Fair Market Value. For purposes of this Plan, “Fair Market Value”
as of a certain date (the “Determination Date”) means: (i) the closing price of a Share on the New
York Stock Exchange or the American Stock Exchange (collectively, the “Exchange”), on the
Determination Date, or, if Shares were not traded on the Determination Date, then on the nearest
preceding trading day during which a sale occurred; or (ii) if Shares are not traded on the
Exchange but are quoted on NASDAQ or a successor quotation system, (A) the last sales price (if
Shares are then listed as a National Market Issue under The Nasdaq National Market System) or (B)
the mean between the closing representative bid and asked prices (in all other cases) for the
Shares on the Determination Date as reported by NASDAQ or such successor quotation system; or (iii)
if such Shares are not traded on the Exchange or quoted on NASDAQ but are otherwise traded in the
over-the-counter, the mean between the representative bid and asked prices on the Determination
Date; or (iv) if subsections (i)-(iii) do not apply, the fair market value established in good
faith by the Board.

          (g) No Award Where Prohibited. No person shall be granted an Award under this Plan if
at the time of such Award, the Award is prohibited by applicable law or by the

-3-

 

policies of the employer of such person or the policies of any other company of which such
person is a member of the board of directors, officer, executive, a general partner or a manager.

          (h) Vesting and Forfeiture. Initial Awards made pursuant to Section 5(c) above shall
become vested and non-forfeitable on the date immediately preceding the Annual Meeting which
follows the Grant Date of the Initial Award, provided that the Eligible Director is then serving as
an Eligible Director on the particular vesting date. Automatic Awards made pursuant to Section
5(d) and Chairman Awards made pursuant to Section 5(e) above shall become vested and
non-forfeitable on the date immediately preceding the Annual Meeting which follows the Annual
Meeting on which such Award was made, provided that on such date the Eligible Director is then an
Eligible Director and, in the case of a Chairman Award, is also serving as Chairman of the Board.
Notwithstanding the foregoing, in the event the date of an Annual Meeting is delayed by more than
thirty (30) days from the first anniversary of the preceding year’s Annual Meeting, then the
Initial Awards, Automatic Awards and Chairman Awards outstanding on such thirtieth day shall become
vested and non-forfeitable. Notwithstanding the preceding sentences, outstanding Initial Awards,
Automatic Awards and Chairman Awards shall become fully vested and non-forfeitable upon a Change in
Control or upon termination of an Eligible Director’s membership on the Board due to death or upon
such other circumstances as the Board may determine in its sole discretion. Any Shares underlying
Awards granted pursuant to Sections 5(c), (d) and (e) above that do not become vested and
non-forfeitable pursuant to this Section 5(h) shall be forfeited.

          (i) Definition of Change in Control. For purposes of this Plan, a “Change in
Control” of the Company shall be deemed to have occurred if:

               (i) a sale, transfer, or other disposition of all or substantially all of the Company’s assets
and properties is closed or consummated;

               (ii) any “person”, “entity” or “group” (within the meaning of Section 13(d)(3) or 14(d)(2) of
the Exchange Act), other than the Company or any majority-owned subsidiary of the Company, is or
becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of securities of the Company representing fifty percent (50%) or more of the combined
voting power of the Company’s then outstanding securities that have the right to vote in the
election of directors generally, provided, however, that the following shall not constitute a
“Change in Control” of the Company:

	 	(a)	 	any acquisition directly from the
Company or any subsidiary thereof (excluding any acquisition
resulting from the exercise of a conversion or exchange
privilege in respect of outstanding convertible or exchangeable
securities); or
	 
	 	(b)	 	any acquisition by an employee
benefit plan (or related trust) sponsored or maintained by the
Company or any entity controlled by the Company.

-4-

 

          (iii) during any period of two consecutive years during the term of this Plan, individuals who
at the beginning of such period constitute the Board cease for any reason to constitute at least a
majority thereof, unless the election of each director who was not a director at the beginning of
such period has been approved in advance by directors representing at least two-thirds of the
directors then in office who were directors at the beginning of the period; or

          (iv) the Company is dissolved or liquidated or a merger, reorganization, or consolidation
involving the Company is closed or consummated, other than a merger, reorganization, or
consolidation in which holders of the combined voting power of the Company’s then outstanding
securities that have the right to vote in the election of directors generally immediately prior to
such transaction own, either directly or indirectly, fifty percent (50%) or more of the combined
voting power of the securities entitled to vote in the election of directors generally of the
reorganized, merged or consolidated entity (or its parent company) immediately following such
transaction.

          (j) Issuance of Restricted Shares Prior to Vesting. The Company shall issue stock
certificates that evidence Restricted Shares pending the lapse of applicable restrictions, and that
bear a legend making appropriate reference to such restrictions. Except as set forth in the
applicable Award Agreement or the Board otherwise determines, the Company or a third party that the
Company designates shall hold such Restricted Shares. The Company may require that an Eligible
Director who receives Restricted Shares execute an assignment separate from certificate or such
other documents as it deems necessary or desirable.

          (k) Issuance of Shares upon Vesting. As soon as practicable after the vesting of an
Award made pursuant to this Section 5, the Company shall release to the Eligible Director, free
from vesting restrictions, one Share for each vested Restricted Share or issue one Share free from
vesting restrictions for each vested Restricted Share Unit, unless an Award Agreement provides
otherwise or the Eligible Director has irrevocably elected to defer receiving such Shares pursuant
to Section 5(n) hereof.

          (l) Cash Dividends. If cash dividends are declared and paid on outstanding Shares
based on a record date on or after a Grant Date, then the Board may, in its discretion, provide in
an Award Agreement that an Eligible Director holding Restricted Shares on such record date shall
receive the cash dividends payable on such Shares and, in the case of Restricted Share Units, an
amount equal to the per share cash dividend otherwise paid on outstanding Shares on the number of
Restricted Share Units held by an Eligible Director. Notwithstanding the foregoing, the Board may
provide in an Award Agreement that some or all of such cash dividends or amounts equal to such cash
dividends may not be paid at all, or may be paid on a later date or dates (with or without
interest) or may otherwise be subject to restrictions, limitations and conditions as provided in
the applicable Award Agreement.

          (m) Section 83(b) Elections. If an Eligible Director who has received Restricted
Share Units provides the Company with written notice of his or her intention to make an election
under Section 83(b) of the U.S. Internal Revenue Code of 1986, as amended, within the prescribed
time period (or a similar election under the laws of another country), with respect to the Shares
subject to Restricted Share Units (the “Section 83(b) Election”), the Board may, in

-5-

 

its discretion, convert the Eligible Director’s Restricted Share Units into Restricted Shares,
on a one-for-one basis, in full satisfaction of the Eligible Director’s Restricted Share Unit
Award. Any Restricted Shares issued pursuant to this Section 8(m) shall continue to vest as
provided in Section 8(h) and such Restricted Shares which do not vest in accordance with Section
8(h) above shall be forfeited and cancelled by the Company.

          (n) Deferral Elections. At any time during the calendar year in which an Eligible
Director receives an Award pursuant to this Section 5, the Eligible Director may irrevocably elect,
on a form provided by and acceptable to the Company, to defer the receipt of all or a percentage of
the Shares that would otherwise be issued to the Eligible Director upon the vesting of such Award
in a future calendar year (or for the remainder of any calendar year in which the Eligible Director
makes the election provided that the election occurs within the 30-day period after he or she first
becomes an Eligible Director). Eligible Directors may make a deferral election for the calendar
year in which this Plan is first approved by the Company’s shareholders within the 30-day period
after the Annual Meeting at which such approval is obtained. If an Eligible Director makes a
deferral election pursuant to this Section 5(n), the Shares subject to the election shall be
deferred pursuant to Section 7 hereof on the date such Shares would otherwise have been released or
issued to the Eligible Director. Notwithstanding the foregoing, Shares with respect to which an
Eligible Director has made a Section 83(b) Election shall not be eligible for deferral pursuant to
this Section 5(n) and Section 7 below.

     6. ELECTIVE GRANTS.

          (a) Election. Each Eligible Director may make an election to receive up to 100
percent (100%) of his or her Quarterly Compensation (as defined below) in increments of 5%, in the
form of Shares (an “Elective Grant”) in accordance with this Section 6. The election by the
Eligible Director to receive an Elective Grant of Shares must be in writing and must be delivered
to the Secretary of the Company before the start of the fiscal quarter during which services are to
be rendered by the Eligible Director giving rise to the Quarterly Compensation. The election made
by an Eligible Director pursuant to this Section 6 shall be in effect as to Quarterly Compensation
payable for services rendered during the fiscal quarter of the Company covered by the election.

          (b) Shares Issued. The number of Shares to be granted to an Eligible Director who
makes an Elective Grant shall equal (i) the amount of the Quarterly Compensation earned during the
Company’s fiscal quarter subject to the Elective Grant, divided by (ii) the Fair Market Value on
the last day of such fiscal quarter. In no event shall the Company be required to issue fractional
Shares and any fractional Share will be rounded to the nearest whole Share. As soon as practicable
after each Eligible Director’s Elective Grant of Shares is determined, the Company shall cause to
be issued and delivered to such Eligible Director a stock certificate registered in the name of the
Eligible Director evidencing his or her Elective Grant, less any Shares withheld by the Company
pursuant to Section 9 below.

          (c) No Assignment. No right to an Elective Grant and no interest therein may be
assigned, pledged, hypothecated, or otherwise transferred by an Eligible Director except that, in
the event of the death of an Eligible Director prior to the issuance of a stock certificate
evidencing an Elective Grant, such right to such Elective Grant may be transferred to the Eligible

-6-

 

           Director’s designated beneficiary or, in the absence of such designation, by will or the laws
of descent and distribution.

          (d) Quarterly Compensation. For purposes of this Plan, “Quarterly Compensation” shall
mean the sum of all meeting fees, annual retainer fees, fees for chairing the Board or a Board
committee, and committee fees for service as a director earned by an Eligible Director during a
quarter. Compensation paid to an Eligible Director for service to the Company in any other
capacity shall be excluded from the calculation of Quarterly Compensation.

7. DEFERRED SHARE UNITS

          (a) Elections to Defer. Any Eligible Director may irrevocably elect, on a form
provided by and acceptable to the Company (the “Election Form”), to defer the receipt of Restricted
Shares for which an 83(b) Election has not been made, Shares subject to Restricted Share Units,
and Quarterly Compensation, and in lieu thereof to have the Company credit to an internal Plan
account (the “Account”) that number of deferred share units (“Deferred Share Units”) equal to the
Restricted Shares or Restricted Share Units that the Eligible Director has deferred, and in the
case of Quarterly Compensation which is deferred, that number of Deferred Share Units determined by
dividing the amount of Quarterly Compensation that the Eligible Director has deferred by the Fair
Market Value on the last day of the quarter for which compensation has been deferred. Each
Election Form shall take effect (i) for the calendar year after the year in which the Eligible
Director delivers it to the Board, (ii) for the remainder of the calendar year in which the
Eligible Director makes the election provided that an Eligible Director’s election occurs within
the 30-day period after he or she first becomes an Eligible Director, or (iii) for the remainder of
the calendar year in which this Plan is first approved by the Company’s shareholders provided that
an Eligible Director’s election occurs within the 30-day period after the Annual Meeting at which
such approval is obtained, unless during the five business day period after receiving the election
the Company sends the Eligible Director a written notice explaining why the Election Form is
invalid. Notwithstanding the foregoing sentence, Election Forms shall be ineffective with respect
to any compensation that an Eligible Director earns before the date on which the Company receives
the Election Form.

          (b) Vesting. Deferred Share Units shall be 100% vested at all times.

          (c) Cash Dividends. If cash dividends are declared and paid on outstanding Shares
based on a record date on or after the date that receipt of Restricted Shares, Restricted Share
Units or Quarterly Compensation is effectively deferred pursuant to Section 7(a) above, then the
Board may, in its sole discretion, provide that an amount equal to the per share cash dividend
otherwise paid on outstanding Shares be paid to the deferring director on the number of Deferred
Share Units credited to the Account of such person. Notwithstanding the foregoing, the Board may
provide that some or all of such amounts equal to such cash dividends may not be paid at all, or
may be paid on a later date or dates (with or without interest) or may otherwise be subject to
restrictions, limitations and conditions as determined by the Board.

          (d) Distributions of Shares. The Company shall provide an Eligible Director with one
Share for each Deferred Share Unit in three (3) substantially equal annual installments

-7-

 

that are issued before the last day of each of the three (3) calendar years that end after the
date on which the Eligible Director’s membership on the Board terminates; provided, however, in the
event of a Change in Control, the Company shall provide an Eligible Director one Share for each
Deferred Share Unit issued at one time upon the occurrence of such Change in Control;
unless in either case–

                    (i) the Eligible Director has properly elected a different form of distribution, on a
form approved by the Board that permits the Participant to select any combination of a lump
sum and annual installments that are completed within ten years following termination of the
Participant’s Continuous Service, and

                    (ii) the Company has received the Eligible Director’s distribution election form either
more than 90 days before a Change in Control, or more than one year before the date on which
the Eligible Director’s membership on the Board terminates for any reason other than death,
or before the Eligible Director’s death.

Cash shall be paid in lieu of any fractional shares.

          (e) Hardship Withdrawals. In the event an Eligible Director suffers an unforeseeable
hardship within the contemplation of this Section 7, the Eligible Director may apply to the Company
for an immediate distribution of all or a portion of his or her Deferred Share Units. The hardship
must result from a sudden and unexpected illness or accident of the Eligible Director or a
dependent of the Eligible Director, casualty loss of property, or other similar conditions beyond
the control of the Eligible Director. Examples of purposes which are not considered hardships
include post-secondary school expenses or the desire to purchase a residence. In no event will a
distribution be made to the extent the hardship could be relieved through reimbursement or
compensation by insurance or otherwise, or by liquidation of the Eligible Director’s nonessential
assets to the extent such liquidation would not itself cause a severe financial hardship. The
amount of any distribution hereunder shall be limited to the amount necessary to relieve the
Eligible Director’s financial hardship. The Board shall determine whether an Eligible Director has
a qualifying hardship and the amount which qualifies for distribution, if any. The Board may
require evidence of the purpose and amount of the need, and may establish such application or other
procedures as it deems appropriate.

          (f) No Rights to Deferred Share Units. An Eligible Director’s right to Deferred Share
Units shall at all times constitute an unsecured promise of the Company to pay benefits as they
come due. Deferred Share Units shall have no voting rights. The right of an Eligible Director or
his or her beneficiary to receive benefits hereunder shall be solely an unsecured claim against the
general assets of the Company. Neither the Eligible Director nor his or her beneficiary shall have
any claim against or rights in any specific assets, shares, or other funds of the Company.

     8. ADJUSTMENT UPON CHANGES IN CAPITALIZATION. If a reorganization, recapitalization,
stock split, stock dividend, combination of shares, merger, consolidation, rights offering, or any
other change in the corporate structure or shares of voting ordinary shares of the Company occurs,
the number and kind of Shares authorized by this Plan and the number and kind of Shares subject to
Awards, shall be automatically adjusted as required in order to prevent

-8-

 

an unfavorable effect upon the value of the Shares covered by the then outstanding Awards and
Shares covered by Awards subsequently granted.

     9. TAX WITHHOLDING. Any distribution of Shares pursuant to this Plan shall be subject
to withholding of state and federal income taxes, or other taxes to the extent required by
applicable law. In the discretion of the Board, an Eligible Director may satisfy the applicable
tax withholding and employment tax obligations (if any) associated with an Award by surrendering to
the Company Shares (including Shares subject to the Award) that have a Fair Market Value determined
as of the applicable tax date equal to the amount required to be withheld. In the case of Shares
previously acquired from the Company that are surrendered under this Section, such Shares must have
been owned by the Eligible Director for more than six months on the date of surrender (or such
longer period of time that the Board may in its discretion require).

     10. NO SHAREHOLDER RIGHTS. Except as otherwise provided in this Plan, neither an
Eligible Director nor any transferee of an Eligible Director shall have any rights as a shareholder
of the Company with respect to any Shares underlying an Award until the date of entry of their name
with respect to such Shares in the Company’s Registry of Members in accordance with the Company’s
Memorandum and Articles of Association. Prior to the issuance of Shares pursuant to an Award (as
evidenced by the entry of the Eligible Director’s name with respect to such Shares in the Company’s
Registry of Members in accordance with the Company’s Memorandum and Articles of Association), an
Eligible Director shall not have the right to vote or any other rights as a shareholder with
respect to the Shares underlying the Award. No adjustment will be made for a dividend or other
right that is determined based on a record date prior to the date of entry of their name with
respect to such Shares in the Company’s Registry of Members, except as otherwise specifically
provided for in this Plan.

     11. LAWS AND REGULATIONS.

          (a) U.S. Securities Laws. This Plan, the award of Restricted Share Units, Restricted
Shares or Deferred Share Units, and the obligation of the Company to sell or deliver any of its
securities (including, without limitation, Restricted Share Units, Deferred Share Units, and
Shares) under this Plan shall be subject to all applicable laws, regulations and rules. In the
event that the Shares are not registered under the Securities Act of 1933, as amended (the “Act”),
or any applicable state securities laws prior to the delivery of such Shares, the Company may
require, as a condition to the issuance thereof, that the persons to whom Shares are to be issued
represent and warrant in writing to the Company that such Shares are being acquired by him or her
for investment for his or her own account and not with a view to, for resale in connection with, or
with an intent of participating directly or indirectly in, any distribution of such Shares within
the meaning of the Act, and a legend to that effect may be placed on the certificates representing
the Shares.

          (b) Other Jurisdictions. To facilitate the making of any grant of an Award under this
Plan, the Board may provide for such special terms for Awards to Eligible Directors who are foreign
nationals as the Board may consider necessary or appropriate to accommodate differences in local
law, tax policy or custom. The Board may adopt rules and procedures relating to the operation and
administration of this Plan to accommodate the specific

-9-

 

requirements of local laws and procedures of particular countries. Without limiting the
foregoing, the Board is specifically authorized to adopt rules and procedures regarding the
conversion of local currency, taxes, withholding procedures and handling of stock certificates
which vary with the customs and requirements of particular countries. The Board may adopt
sub-plans applicable to particular locations and countries.

     12. TERM OF PLAN; TERMINATION AND AMENDMENT OF THIS PLAN. The Plan shall continue in
effect for a term of ten (10) years from its effective date as determined by Section 13 hereof,
unless earlier terminated by this Section 12. The Board may at any time terminate this Plan or may
at any time or times amend or modify this Plan for any purpose which at the time may be permitted
by applicable law. No amendment, suspension, or termination of the Plan or any Awards shall
materially and adversely affect Awards already granted and outstanding, unless either (i) it
relates to an adjustment pursuant to Section 8 above, (ii) it is mutually agreed otherwise between
the Eligible Director and the Company, which agreement must be in writing and signed by both
parties, or (iii) the Board determines with respect to outstanding Awards that the amendment or
modification is for the purpose of satisfying the requirements of any changes in applicable laws or
regulations or to avoid or minimize adverse tax consequences for Eligible Directors.

     13. EFFECTIVE DATE. This Plan shall become effective on the date of its approval by
the Company’s shareholders.

     14. NONTRANSFERABILITY. Except as set forth in this Section 14 or as otherwise
approved by the Board, Awards shall be nonassignable and nontransferable other than by will or the
laws of descent and distribution. Notwithstanding the foregoing, Awards (except for Elective
Grants which are governed by Section 6(c) above) may be transferred, with the consent of the Board,
by gift to charitable institutions, or by gift to an Eligible Director’s “Immediate Family.”
“Immediate Family” means any child, stepchild, grandchild, parent, stepparent, grandparent,
spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law,
daughter-in-law, brother-in-law, or sister-in-law, and shall include adoptive relationships, any
person sharing the Eligible Director’s household (other than as a tenant or employee), a trust in
which these persons have more than fifty percent (50%) of the beneficial interest, a foundation in
which these persons (or the Eligible Director) control the management of assets, and any other
entity in which these persons (or the Eligible Director) own more than fifty percent (50%) of the
voting interest.

     15. CONTROLLING LAW. All disputes relating to or arising from the Plan shall be
governed by the internal substantive laws (and not the conflicts of laws) of the British Virgin
Islands to the extent not preempted by United States federal laws. If any provision of this Plan
is held by a court of competent jurisdiction to be invalid and unenforceable, the remaining
provisions shall continue to be fully effective.

-10-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}]]