Document:

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                                                                   EXHIBIT 10.13

                              First Amendment to
                        WebTV Networks, Inc. - TalkCity
                        Content and Services Agreement

        This First Amendment (the "Amendment"), effective as of July 27, 2000,
is between WebTV Networks, Inc., with a principal place of business at 1065 La
Avenida, Mountain View, California 94043 ("WNI"), and Talk City, Inc., with an
office at 1919 S. Bascom Avenue, Campbell, California 95008 ("Talk City" or
"TC").

                                   Recitals

A.      Talk City and WNI entered into that certain Content and Services
Agreement effective as of July 19, 1998 (the "Agreement").

B.      Talk City and WNI desire to extend and modify the Agreement as set forth
herein.

                                   Agreement

Now, therefore, in consideration of the mutual promises set forth herein, the
parties hereto hereby agree as follows:

1.      Paragraph (j) of Exhibit A is hereby deleted and replaced in its
entirely as follows:

   j.   "WebTV Network Service(s)" means one or more on-line and/or off-line
services through which subscribers can obtain personal television services
and/or access to the Internet through a television viewing device, which
services are owned, controlled, managed or operated by WNI or its licensees,
whether or not under a WebTV brand, including, without limitation, all
localized, international and/or beta testing versions, demonstration versions,
and successors of the foregoing. The WebTV Network Service does not include the
destinations on the World Wide Web or the Internet that are accessed or
accessible from the above-described service.

2.      The last sentence of Section 9 of the Agreement is hereby deleted,
provided WNI shall not be relieved of its obligations pursuant to Section 9.
Notwithstanding the terms of the Non-Disclosure Agreement previously entered
into between the parties on August 31, 1996, the obligations of confidentiality
and other obligations in such agreement shall continue to apply to information
disclosed by either party in connection with this Agreement until three (3)
years following the expiration or termination of this Agreement.

3.     The term of the Agreement shall be extended until July 19, 2001.  In
addition to each party's rights pursuant to Section 11, both parties may
terminate the Agreement, with or without cause or reason, upon one hundred and
eighty (180) days advanced written notice to the other party.

6.      Section 12(a) is hereby amended to have the following address and
addresses for WNI and Talk City:

        WebTV Networks, Inc.
        1065 La Avenida
        Mountain View, California 94043
<PAGE>

     Attn: Vice President, Network Media Group

     With a copy to:
     WebTV Networks, Inc.
     1065 La Avenida
     Mountain View, California 94043
     Attn: Law and Corporate Affairs

     Talk City, Inc.
     1919 South Bascom Avenue
     Campbell, CA 95008
     Attn: Business Affairs

7.   The parties acknowledge and agree that as of the date of this Amendment,
the parties have performed their obligations pursuant to Section 1 of Exhibit E.
On and after the date of this Amendment, the parties may, in their discretion,
conduct promotions and co-marketing of the type set forth in such section, or as
the parties otherwise mutually agree, but shall have no obligation to do so.

8.   Except as set forth above, the Agreement shall remain in full force and
effect as modified herein.

     IN WITNESS WHEREOFF, the parties hereto have executed this Agreement by
respective duly authorized officers effective as of the date first written
above.

Talk City, Inc.                           WebTV Networks, Inc.

By: /s/ Peter Friedman                    By: /s/ Joe Poletto
    ---------------------                     ------------------------

Name: Peter Friedman                      Name: Joe Poletto
      -------------------                       ----------------------

Title: CEO                                Title: V.P.
       ------------------                        ---------------------<PAGE>

                                                                    Exhibit 4(a)

                            1999 EDS NON-QUALIFIED
                              STOCK PURCHASE PLAN

WHEREAS, it is the intention of the Company to offer a global program whereby
eligible employees are granted options to purchase EDS stock at a discounted
price pursuant to terms and conditions substantially similar to those of the
1996 Electronic Data Systems Corporation Stock Purchase Plan (the "Section 423
Plan") as qualified pursuant to Section 423 of the Internal Revenue Code of
1986, as amended ("Code").

WHEREAS, the Section 423 Plan, as written, cannot be offered in certain
countries without creating adverse tax or securities consequences to the
intended participants or the participating employer.

WHEREAS, the Compensation and Benefits Committee of the EDS Board of Directors
("Board of Directors"), the Compensation and Benefits Committee was presented
with the proposal to devise a non-qualified stock purchase plan substantially
similar to the Section 423 Plan which may be supplemented or modified, as
needed, to conform to the various local laws and regulations governing such
plans for those non-U.S. subsidiaries of the Company which are authorized by the
Compensation and Benefits Committee or its delegate to participate in the Plan
("Participating Employer").

WHEREAS, At its meeting on March 30, 1999, the Compensation and Benefits
Committee approved the adoption of the EDS Non-qualified Stock Purchase Plan
intended to be substantially similar to the Section 423 Plan except as necessary
or appropriate to provide advantageous taxation treatment or to comply with the
laws and regulations of certain non-U.S. countries where extending the Section
423 Plan would otherwise be inadvisable or inappropriate.

NOW THEREFORE, The 1999 EDS Non-qualified Stock Purchase Plan ("Plan") is
effective as of January 1, 2000, to provide options to eligible employees of
participating employers in accordance with the following terms and conditions:

1.   Purpose of Plan. The purpose of the Plan is to provide employees of certain
     ---------------
     ensure the future growth of the Company by enabling such employees to
     acquire shares of common stock, $.01 par value per share (the "EDS Stock"),
     of EDS, in the manner contemplated by the Plan. Rights to purchase EDS
     Stock offered pursuant to the Plan are a matter of separate inducement and
     not in lieu of any salary or other compensation for the services of any
     employee.
<PAGE>

     The provisions of the Plan are subject to the provisions stated in the
     Appendices incorporated into this Plan and applicable to certain foreign
     subsidiaries. To the extent that the provisions in an Appendix for a
     foreign subsidiary conflict with the provisions in this Plan, the
     provisions in the Appendix will be controlling with respect to employees of
     such subsidiary.

2.   Amount of Stock Subject to the Plan: Payment for Shares. The total number
     -------------------------------------------------------
     of shares of EDS Stock that may be issued pursuant to rights of purchase
     granted under the Plan shall not exceed 25,000 shares of authorized EDS
     Stock. In the discretion of the Board of Directors of EDS (the "Board of
     Directors") or its delegate, such shares may be: (i) treasury shares,
     including shares acquired by EDS in open market transactions; or (ii)
     authorized but unissued shares. If a right of purchase under the Plan
     expires or is terminated unexercised for any reason, the shares as to which
     such right so expired or terminated again may be made subject to a right of
     purchase under the Plan.

3.   Administration. The Plan shall be administered by EDS ("Administrator") at
     --------------
     the direction of the Benefits Oversight Committee ("Committee"). To the
     extent necessary, the Administrator may delegate any of its duties or
     responsibilities as they pertain to a Participating Employer to such
     Participating Employer. Any Participating Employer may appoint or engage
     any person or persons as a third party administrator to perform ministerial
     functions pertaining to the issuance, accounting, recordkeeping,
     forfeiture, exercise, communication, transfer, or any other functions or
     activities necessary or appropriate to administer and operate the Plan. Any
     third party administrator who is not an employee of EDS or a Participating
     Employer, shall be required to be bonded and insured for errors and
     omissions insurance in such amounts and by such carrier as is deemed
     suitable and appropriate by the Administrator. The Committee shall hold
     meetings at such times and places as it may determine and may take action
     by unanimous written consent or by means of a meeting held by conference
     telephone call or similar communications equipment pursuant to which all
     persons participating in the meeting can hear each other. The Committee or
     the Administrator may request advice or assistance or employ such other
     persons as it deems necessary for proper administration of the Plan.
     Subject to the express provisions of the Plan and the requirements of
     applicable law, the Committee shall have authority, in its discretion, to
     determine when each offering hereunder of rights to purchase shares
     (hereinafter "offering") shall be made, the duration of each offering, the
     dates on which the purchase period for each offering shall begin and end,
     the total number of shares subject to each offering, the purchase price of
     shares subject to each offering and the exclusion of any classes of
     employees. Subject to the express provisions of the Plan, the Committee has
     authority (a) to construe offerings, the Plan and the respective rights to
     purchase shares, (b) to prescribe, amend and rescind rules and regulations
     relating to the Plan and (c) to make all other determinations necessary or
     advisable for administering the Plan. The determination of the Committee
     with respect to matters referred to in this Section 3 as within its
     province shall be conclusive, except that, to the extent required by law or
     by the Certificate of Incorporation or By-Laws of EDS, the terms of any
     offering shall be subject to ratification by the Board of Directors or the
     Committee prior to the effective date of such offering .

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<PAGE>

4.   Eligibility. No right to purchase shares shall be granted hereunder to a
     -----------
     person who is not an employee of a Participating Employer. Except as may be
     specifically provided otherwise by the Committee, for purposes of the Plan,
     the terms "parent corporation" and "subsidiary corporation" shall have the
     meanings respectively given to such terms in Sections 424(e) and 424(f) of
     the Code. Each offering shall be made to all employees of a Participating
     Employer who satisfy the eligibility requirements as set forth on the
     Appendix for such Participating Employer.

5.   Offerings. The Committee may grant to all eligible employees of
     ---------
     Participating Employers the right to purchase shares under the terms
     hereinafter set forth. The terms and conditions of each offering shall
     state its effective date, shall define the duration of such offering and
     the purchase period thereunder, shall specify the number of shares that may
     be purchased thereunder, shall specify the purchase price for such shares
     and shall specify what class of employees, if any, are excluded. During the
     purchase period specified in the terms of an offering (or during such
     portion thereof as an eligible employee may elect to participate), payroll
     deductions shall be made from such employee's compensation pursuant to
     Sections 6 and 7. Any stated purchase period shall end no later than 27
     months from the effective date of any offering hereunder.

6.   Participation. An employee eligible on the effective date of an offering or
     -------------
     thereafter during the offering may participate in such offering by
     enrolling in the manner prescribed by the Administrator. An employee shall
     be considered a "Participant" in the Plan as of the date of the effective
     date of the enrollment and shall be a Participant in the Plan for so long
     as contributions are being made, or money or stock are credited, to such
     Participant's Plan account.

7.   Payments. A Participant may instruct the Administrator to direct any whole
     --------
     percentage up to a maximum of 10% of the Participant's compensation
     received during the purchase period specified in an offering (or during
     such portion thereof as he/she may be eligible) for the purchase of options
     hereunder. Payments for options hereunder shall be in the manner and method
     prescribed by the Administrator which may include payroll deductions
     whenever possible. If payments are to be made through payroll deductions
     then the Administrator will maintain a payroll deduction account for each
     Participant who is making such payroll deductions.

8.   Deduction Changes. At any time prior to the end of the applicable purchase
     -----------------
     period, a Participant may instruct the Administrator to temporarily
     discontinue payments. Such instructions are effective only if delivered in
     the form and manner prescribed by the Administrator. The Administrator may
     establish limits on the number of times a Participant may be entitled to
     change the percentage of compensation directed for the purchase of options
     under the Plan or may temporarily discontinue payments. Any change or
     suspension of payments shall not become effective sooner than the next
     payroll period after the Participant properly delivered the directions for
     such change or suspension to the Administrator.

                                       3
<PAGE>

9.   Withdrawal of Funds. A Participant may at any time and for any reason
     -------------------
     withdraw the entire cash balance then accumulated in such Participant's
     Plan account and thereby withdraw from participating in an offering. Upon
     withdrawal of the cash balance in a Participant's Plan account, such
     Participant shall cease to be eligible to participate in the offering
     pursuant to which the withdrawn funds were withheld. Partial withdrawals
     shall not be permitted. Any cash balance withdrawn in accordance with this
     Section 9 shall only be paid out directly to the Participant, or the estate
     or personal representative of the Participant in accordance with the
     written instructions delivered to the Administrator.

10.  Right of Purchase--Option for a Maximum Number of Shares. The right of an
     --------------------------------------------------------
     employee to purchase stock pursuant to an offering under the Plan shall be
     an "option" (and an offering shall be the "grant" of such option) to
     purchase a maximum number of EDS Stock. In no event may any provisions
     hereunder permit a Participant to be granted an option hereunder for the
     purchase of EDS Stock in any amount greater than the limits established
     under the Section 423 Plan.

11.  Maximum Allotment of Rights of Purchase. Any right to purchase shares under
     ---------------------------------------
     the Plan shall be subject to applicable controlling laws.

12.  Purchase Price. The purchase price for each share under each right of
     --------------
     purchase granted pursuant to an offering shall not be less than the lesser
     of: (i) an amount equal to 85% of the fair market value (defined below) of
     such share at the time the right of purchase is granted; or (ii) an amount
     which under the terms of the option is not less than 85% of the fair market
     value of such share at the time the right to purchase is exercised. The
     "fair market value" of a share of EDS Stock on any given date shall be the
     mean between the high and low sale prices on the New York Stock Exchange
     Composite Tape for EDS Stock, as reported by the Dow Jones News/Retrieval
     Service of Dow Jones and Company, Inc., on such date or on the date
     immediately prior thereto on which such prices for EDS Stock are so
     reported or, if not so reported, as reported in a newspaper of national
     circulation selected by the Committee or, in case no such sales take place
     on such date, the mean of the closing bid and asked prices (regular way) on
     the New York Stock Exchange Composite Tape on such date or, if the EDS
     Stock is not then listed or admitted to trading on the New York Stock
     Exchange, the mean between the high and low sale prices on such date or, in
     case no sales take place on such date, the mean of the closing bid and
     asked prices (regular way) on the largest principal United States
     securities exchange on which such stock is then listed or admitted to
     trading, or if not listed or admitted to trading on any principal national
     securities exchange, then the last reported sales prices for such shares in
     the over-the-counter market, as reported on the National Association of
     Securities Dealers Automated Quotations System or, if such sale prices
     shall not be reported thereon, the mean of the closing bid and asked prices
     as reported thereon, or if such prices shall not be reported thereon, as
     the same shall be reported by the National Quotation Bureau Incorporated,
     or, in all other cases, the mean of two appraisals of fair market value,
     each of which shall be furnished by a New York Stock Exchange member firm
     selected by the Committee for that purpose. In the event the funds in the
     Participant's Plan account are in a currency other than United States
     dollars on

                                       4
<PAGE>

     any investment date (as defined below), for purposes of determining the
     maximum whole number of shares that may be purchased pursuant to Section
     13, and for any other purpose under the Plan, such monies shall be deemed
     to have been converted into United States dollars based upon the foreign
     exchange selling rates, as reported by the Dow Jones News/Retrieval Service
     of Dow Jones and Company, Inc., on such date, or if not so reported on such
     date, as reported on the next preceding date on which such rates are
     reported.

13.  Method of Payment.  As of the last Friday in each calendar month, except
     -----------------
     the last calendar month of a purchase period, and as of the last day of
     each month (each of such dates being known as an "investment date"), the
     Plan account of each Participant shall be totaled. If on an investment
     date, any Participant's Plan account has at least Three Hundred and 00/100
     Dollars ($300.00) or an amount equal to the purchase price of ten (10)
     shares of EDS Stock then, on such investment date such Participant shall
     purchase without any further action, the maximum whole number of shares
     (subject to the limitation provided in Section 10) possible at the then
     fair market value of such shares as determined in accordance with Section
     12 together with any fees or charges associated with such purchase that can
     be purchased with the funds in such Participant's Plan account, provided
     that fractional shares may not be purchased. The Participant's Plan account
     shall be charged for the amount of the purchase and a stock certificate
     shall be issued for the benefit of the Participant as soon thereafter as
     practicable for the shares so purchased, which certificate may be issued in
     nominee name. Participant's Plan account at the end of each purchase period
     shall be refunded to such Participant. All funds in Plan accounts may be
     used by EDS for its general corporate purposes as the board of directors of
     EDS shall determine. However, the last purchase on the last investment date
     of a grant year shall be for the maximum whole number of shares (subject to
     the limitation provided in Section 10) possible that can be purchased with
     the funds available in such Participant's Plan account, and all cash
     remaining in such Participant's Plan account thereafter shall be returned
     to the Participant.

14.  Issuance of Certificates and Payment of Expenses.  Upon request and after
     ------------------------------------------------
     expiration of applicable restrictions, certificates representing shares
     purchased under the Plan may be issued in the name of the Participant or,
     if indicated on an appropriate form by the Participant then, to the extent
     allowable under local law, either: (i) in such Participant's name jointly
     with a member of such Participant's family, with right of survivorship;
     (ii) in the name of a fiduciary for the employee (in the event the employee
     is under a legal disability to have certificates issued in such
     Participant's name); or (iii) in a manner giving effect to the status of
     such shares as community property in jurisdictions where applicable. Upon
     termination of employment with EDS or any of its subsidiaries or
     affiliates, certificates representing both restricted and nonrestricted
     shares purchased under the Plan will be issued in the name of the
     Participant and forwarded to such Participant's account address on file
     with the Plan's transfer agent of record. In the event of a final non-
     appealable court-ordered account distribution, certificates representing
     both restricted and nonrestricted shares purchased under the Plan will be
     issued in the name and to the address specified in the court documents
     provided to the office of the Administrator.

                                       5
<PAGE>

15.  Rights as a Stockholder. A Participant shall have no rights as a
     -----------------------
     stockholder with respect to any shares covered by a right of purchase until
     a stock certificate for such shares is issued to the benefit of such
     Participant, which stock certificate may be issued in nominee name. No
     adjustment will be made for dividends (ordinary or extraordinary, whether
     in cash or in other property) or distributions or other rights for which
     the record date is prior to the date such stock certificate is issued,
     except as provided in Section 18.

16.  Sale of Stock. Shares of EDS Stock purchased under the Plan shall only be
     -------------
     sold or transferred as set forth in the Appendix of the Participating
     Employer. Shares issued under the Plan will the appropriate restrictive
     legend, as applicable.

17.  Rights Not Transferable. Rights to purchase shares under the Plan are not
     -----------------------
     transferable by a participating employee and may be exercised only by such
     Participant during such Participant's lifetime.

18.  Adjustment of Shares. If any change is made in the number, class or rights
     --------------------
     of EDS Shares subject to the Plan or subject to any offering under the Plan
     (through merger, consolidation, reorganization, recapitalization, stock
     dividend, split-up, combination of shares, exchange of shares, issuance of
     rights to subscribe or other change in capital structure), appropriate
     adjustments shall be made as to the maximum number of shares subject to the
     Plan and the number of shares and price per share subject to outstanding
     rights of purchase as shall be equitable to prevent dilution or enlargement
     of such rights; provided, however, that any such adjustment shall comply
     with the relevant country's rules regarding corporate reorganizations and
     liquidations if the transaction is a corporate reorganization or
     liquidation; and provided further that in no event shall any adjustment be
     made that would render any offering to be other than an offering pursuant
     to an employee stock purchase plan within the meaning of the relevant
     country's laws.

19.  Retirement, Termination and Death. In the event of a Participant's
     ---------------------------------
     retirement or termination of employment, the amount in any Participant's
     Plan account shall be refunded to such Participant and the restricted and
     nonrestricted shares of stock held for such Participant's benefit by the
     Plan shall be issued to such Participant, and in the event of such
     Participant's death, such amount and stock shall be paid and issued to such
     Participant's estate.

20.  Amendment of the Plan. This Plan may be amended at any time by the
     ---------------------
     Committee, provided that, without the approval of the stockholders of EDS
     entitled to vote thereon, no such amendment shall become effective if it
     would: (i) increase the number of shares reserved for rights of purchase
     under the Plan; or (ii) modify the requirements as to eligibility for
     participation in the Plan.

21.  Termination of the Plan. The Plan and all rights of employees hereunder
     -----------------------
     shall terminate: (i) on the investment date that participating employees
     become entitled to purchase a number of shares greater than the number of
     shares that remain available for purchase under the Plan; or (ii) in the
     discretion of the Committee, upon the completion of any purchase period. In
     the event that the Plan terminates under circumstances described in (i)
     above,

                                       6
<PAGE>

     shares remaining available for purchase under the Plan as of the
     termination date shall be issued to Participants on a pro rata basis. Any
     cash balances remaining in Participants' Plan accounts upon termination of
     the Plan shall be refunded as soon thereafter as practicable. The powers of
     the Committee provided by Section 3 to construe and administer any right to
     purchase shares granted prior to the termination of the Plan shall
     nevertheless continue after such termination.

22.  Listing of Shares and Related Matters. If at any time the Committee shall
     -------------------------------------
     determine, based on opinion of counsel, that the listing, registration or
     qualification of the shares covered by the Plan upon any United States
     securities exchange or under any state, Federal, or foreign law or the
     consent or approval of any governmental regulatory body is necessary or
     desirable as a condition of, or in connection with, the sale or purchase of
     shares under the Plan, no shares will be sold, issued or delivered unless
     and until such listing, registration, qualification, consent or approval
     shall have been effected or obtained, or otherwise provided for, free of
     any conditions not acceptable to counsel.

23.  Third Party Beneficiaries. None of the provisions of the Plan shall be for
     -------------------------
     the benefit of or enforceable by any creditor of a Participant. A
     Participant may not create a lien on any portion of the cash balance
     accumulated in such Participant's payroll deduction account or on any
     shares covered by a right to purchase before a stock certificate for such
     shares is issued for such Participant's benefit.

24.  General Provisions. The Plan shall neither impose any obligation on the
     ------------------
     Employers to continue the employment of any Participant or eligible
     employee, nor impose any obligation on any Participant to remain in the
     employ of the Employers. For purposes of the Plan, an employment
     relationship shall be deemed to exist between an individual and a
     Participating Employer if, at the time of the determination, the individual
     was an "employee" of such Participating Employer. For purposes of the Plan,
     the transfer of an employee from employment between Participating Employers
     shall not be deemed a termination of employment of the employee. Subject to
     the specific terms of the Plan, all employees granted rights to purchase
     shares hereunder shall have the same rights and privileges.

25.  Governing Law. Except where jurisdiction is exclusive to the foreign
     -------------
     jurisdiction, federal courts or except as governed by federal law, the Plan
     and rights to purchase shares that may be granted hereunder shall be
     governed by and construed and enforced in accordance with the laws of the
     State of Texas.

26.  Effective Date. The Plan shall be effective as of January 1, 1999.
     --------------
     Participating Employers shall be eligible to participate in the Plan on the
     date specified in the respective Appendix. Provided, however, that no
     purchase period under the Plan may begin until a Registration Statement
     under the Securities Act of 1933, as amended, covering the shares to be
     issued under the Plan has become effective.

27.  Dividend Reinvestment. Any employee or any employee who, upon separation
     ---------------------
     from an Employer, was eligible for an early or normal retirement benefit
     under the terms of the

                                       7
<PAGE>

     pension plan or policies of the Participating Employer ("Retiree"), and
     who, pursuant to Sections 6 and 28, has any shares to his benefit in the
     Plan for which certificates have not been issued pursuant to Section 14,
     may elect to have any and all dividends issued on such shares reinvested in
     additional shares at full fair market value. The Administrator shall
     establish and communicate all procedures necessary for employees or
     Retirees to reinvest dividends, including the charging of any reasonable
     fee to participating employees or Retirees for reinvesting dividends in
     accordance herewith.

28   Deposit of Certificated Shares. Any employee of an Employer who holds EDS
     ------------------------------
     Stock certificates issued in any manner specified in Section 14(i)-(iii)
     representing shares of EDS Stock, may deposit the EDS Stock certificates
     into the Plan by transferring such shares into nominee name. Any such
     transfer of certificated shares shall be made pursuant to procedures
     established by the Administrator. Any employee who elects to transfer
     shares into nominee name pursuant to this Section is not required to
     participate pursuant to Plan Sections 6 and 7, but shall be eligible to
     invest dividends earned on such shares transferred pursuant to this Section
     in accordance with Section 27.

29.  Retirees. Notwithstanding anything to the contrary in Section 14 or
     --------
     elsewhere in the Plan, Retirees who, by reason of Section 6 acquired shares
     pursuant to the Plan, may continue to hold such shares in nominee name and
     elect to invest the dividends earned therein in accordance with Section 27
     but may not purchase any additional shares pursuant to Sections 6 and 7 .

This EDS Non-qualified Stock Purchase Plan as approved by the Compensation and
Benefits Committee of the Board of Directors of Electronic Data Systems
Corporation is hereby signed on this 30th day of December, 1999.

                                          ELECTRONIC DATA SYSTEMS CORPORATION

                                             /s/ TROY W. TODD
                                          --------------------------------------
                                          Troy W. Todd, Executive Vice President
                                          Leadership and Change Management

                                       8
<PAGE>

                                  Appendix A

                                    Belgium

Effective Date. The following Subsidiaries in Belgium shall be eligible to be
---------------
participating Employers as of January 1, 2000. Employees of such Participating
Employers may contribute into the Plan at such time as the Administrator has
completed the procedures necessary to accommodate the Plan's administration for
such Participating Employer.

Eligibility. Each offering shall be made to all employees of any of the
-----------
following Subsidiaries:

                         A.T. Kearney N.V.
                         EDS Defense N.V.
                         EDS-Scicon N.V.
                         Electronic Data Systems Belgium N.V.
                         Management Computer Equipment, S.A.

     each a Participating Employer, shall be eligible to participate in the
     Plan, except: (i) employees whose customary employment is 20 hours or less
     per week or not more than five months in any calendar year; and (ii) in the
     discretion of the Committee, as specified in the terms of any offering, the
     following classes of employees: officers, highly compensated employees and
     employees whose principal duties consist of supervising the work of other
     employees.

Sale of Stock. Shares of EDS Stock purchased under the Plan may only be sold or
-------------
     transferred after two years of the date of purchase. Shares issued under
     the Plan will carry a restrictive legend to this effect.

Payment. Purchase of shares shall be accomplished through a direct purchase and
-------
     not a payroll deduction. The process for such purchase shall be established
     by the Administrator.

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