Document:

EXHIBIT 10.8

                                     WARRANT

                              TO PURCHASE SHARES OF
                                 COMMON STOCK OF
                       UNITED SHIPPING & TECHNOLOGY, INC.

                                                                JANUARY 18, 2000

         This Certifies that, in consideration of having purchased _________
shares of the Company's Common Stock, and for other good and valuable
consideration, ___________ (the "Warrantholder"), is entitled to subscribe for
and purchase from the Company, at any time after the date hereof, and prior to
January 18, 2005 (the "Expiration Date") up to _________ shares of the Company's
Common Stock at a purchase price of $12.50 per share (the "Purchase Price"),
subject to adjustment as hereinafter set forth.

         1 Definitions. For the purposes of this Warrant the following terms
shall have the following meanings:

                  "Commission" shall mean the Securities and Exchange
         Commission, or any other federal agency then administering the
         Securities Act.

                  "Company" shall mean United Shipping & Technology, Inc., a
         Utah corporation, and any corporation which shall succeed to, or
         assume, the obligations of said corporation hereunder.

                  "Common Stock" shall mean the shares of Common Stock of the
         Company, $0.004 par value.

                  "Other Securities" shall mean any stock (other than Common
         Stock) or other securities of the Company which the Warrantholder at
         any time shall be entitled to receive, or shall have received, upon the
         exercise of the Warrants, in lieu of or in addition to Common Stock, or
         which at any time shall be issuable or shall have been issued in
         exchange for or in replacement of Common Stock or Other Securities.

                  "Securities Act" shall mean the Securities Act of 1933, as
         amended, and the rules and regulations of the Commission thereunder, as
         in effect at the time.

                  "Subscription Form" shall mean the subscription forms attached
         hereto.

                  "Transfer" shall mean any sale, assignment, pledge, or other
         disposition of any Warrants and/or Warrant Shares, or of any interest
         in either thereof, which would constitute a sale thereof within the
         meaning of Section 2(3) of the Securities Act.

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                  "Warrant Shares" shall mean the shares of Common Stock
         purchased or purchasable by the Warrantholder upon the exercise of the
         Warrants pursuant to Section 2 hereof.

                  "Warrantholder" shall mean the holder or holders of the
         Warrants or any related Warrant Shares.

                  "Warrants" shall mean the Warrants (including this Warrant),
         identical as to terms and conditions and date, issued by the Company in
         connection with the sale of the Notes, and all Warrants issued in
         exchange, transfer or replacement thereof.

         All terms used in this Warrant which are not defined in Section 1
hereof have the meanings respectively set forth elsewhere in this Warrant.

         2 Exercise of Warrant, Issuance of Certificate, and Payment for Warrant
Shares. The rights represented by this Warrant may be exercised at any time
after the date hereof, and prior to the Expiration Date, by the Warrantholder,
in whole or in part (but not as to any fractional share of Common Stock), by:
(a) delivery to the Company of a completed Subscription Form, (b) surrender to
the Company of this Warrant properly endorsed and signature guaranteed, and (c)
delivery to the Company of a certified or cashier's check made payable to the
Company in an amount equal to the aggregate Purchase Price of the shares of
Common Stock being purchased, at its principal office or agency in Minnesota (or
such other office or agency of the Company as the Company may designate by
notice in writing to the holder hereof). The Company agrees and acknowledges
that the shares of Common Stock so purchased shall be deemed to be issued to the
holder hereof as the record owner of such shares as of the close of business on
the date on which this Warrant, properly endorsed, and the Subscription Form
shall have been surrendered and payment made for such shares as aforesaid. Upon
receipt thereof, the Company shall, as promptly as practicable, and in any event
within fifteen (15) days thereafter, execute or cause to be executed and deliver
to the Warrantholder a certificate or certificates representing the aggregate
number of shares of Common Stock specified in said Subscription Form. Each stock
certificate so delivered shall be in such denomination as may be requested by
the Warrantholder and shall be registered in the name of the Warrantholder or
such other name as shall be designated by the Warrantholder. If this Warrant
shall have been exercised only in part, the Company shall, at the time of
delivery of said stock certificate or certificates, deliver to the Warrantholder
a new Warrant evidencing the rights of such holder to purchase the remaining
shares of Common Stock covered by this Warrant. The Company shall pay all
expenses, taxes, and other charges payable in connection with the preparation,
execution, and delivery of stock certificates pursuant to this Section 2, except
that, in case any such stock certificate or certificates shall be registered in
a name or names other than the name of the Warrantholder, funds sufficient to
pay all stock transfer taxes which shall be payable upon the execution and
delivery of such stock certificate or certificates shall be paid by the
Warrantholder to the Company at the time of delivering this Warrant to the
Company as mentioned above.

         3 Ownership of this Warrant. The Company may deem and treat the
registered Warrantholder as the holder and owner hereof (notwithstanding any
notations of ownership or writing made hereon by anyone other than the Company)
for all purposes and shall not be

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<PAGE>

affected by any notice to the contrary, until presentation of this Warrant for
transfer as provided herein and then only if such transfer meets the
requirements of Section 5.

         4 Exchange, Transfer, and Replacement. Subject to Section 5 hereof,
this Warrant is exchangeable upon the surrender hereof by the Warrantholder to
the Company at its office or agency described in Section 2 hereof for new
Warrants of like tenor and date representing in the aggregate the right to
purchase the number of shares purchasable hereunder, each of such new Warrants
to represent the right to purchase such number of shares (not to exceed the
aggregate total number purchasable hereunder) as shall be designated by the
Warrantholder at the time of such surrender. Subject to Section 5 hereof, this
Warrant and all rights hereunder are transferable, in whole or in part, upon the
books of the Company by the Warrantholder in person or by duly authorized
attorney, and a new Warrant of the same tenor and date as this Warrant, but
registered in the name of the transferee, shall be executed and delivered by the
Company upon surrender of this Warrant, duly endorsed, at such office or agency
of the Company. Upon receipt by the Company of evidence reasonably satisfactory
to it of the loss, theft, destruction, or mutilation of this Warrant, and, in
the case of loss, theft, or destruction, of indemnity or security reasonably
satisfactory to it, and upon surrender and cancellation of this Warrant, if
mutilated, the Company will make and deliver a new Warrant of like tenor, in
lieu of this Warrant. This Warrant shall be promptly canceled by the Company
upon the surrender hereof in connection with any exchange, transfer, or
replacement. The Company shall pay all expenses, taxes (other than stock
transfer taxes), and other charges payable in connection with the preparation,
execution, and delivery of Warrants pursuant to this Section 4.

         5 Restrictions on Transfer. Notwithstanding any provisions contained in
this Warrant to the contrary, neither this Warrant nor the Warrant Shares shall
be transferable except upon the conditions specified in this Section 5, which
conditions are intended, among other things, to ensure compliance with the
provisions of the Securities Act in respect of the transfer of this Warrant or
such Warrant Shares. The holder of this Warrant agrees that such holder will not
transfer this Warrant or the related Warrant Shares (a) prior to delivery to the
Company of an opinion of counsel selected by the Warrantholder and reasonably
satisfactory to the Company, stating that such transfer is exempt from
registration under the Securities Act, or (b) until registration of such
Warrants and/or Warrant Shares under the Securities Act has become effective and
continues to be effective at the time of such transfer. An appropriate legend
may be endorsed on the Warrants and the certificates of the Warrant Shares
evidencing these restrictions. The holder of this Warrant further agrees that
such holder will not, for a period of 180 days from the date that a registration
statement covering securities offered by the Company is declared effective by
the Commission, offer to sell, contract to sell, or otherwise sell, dispose of,
loan, pledge or grant any rights with respect to the Warrant or the Warrant
Shares owned by the holder, otherwise than with the prior written consent of the
Company.

         6 Antidilution Provisions. The rights granted hereunder are subject to
the following:

                  (a) Stock Splits. In case at any time the Company shall
         subdivide its outstanding shares of Common Stock into a greater number
         of shares, the Purchase Price in effect immediately prior to such
         subdivision shall be proportionately reduced and the

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<PAGE>

         number of Warrant Shares purchasable pursuant to this Warrant
         immediately prior to such subdivision shall be proportionately
         increased, and conversely, in case at any time the Company shall
         combine its outstanding shares of Common Stock into a smaller number of
         shares, the Purchase Price in effect immediately prior to such
         combination shall be proportionately increased and the number of
         Warrant Shares purchasable upon the exercise of this Warrant
         immediately prior to such combination shall be proportionately reduced.
         Except as provided in this paragraph (a), no adjustment in the Purchase
         Price and no change in the number of Warrant Shares so purchasable
         shall be made pursuant to this Section 6 as a result of or by reason of
         any such subdivision or combination.

                  (b) Reorganization, Reclassification, Consolidation, Merger,
         or Sale. If any capital reorganization or reclassification or merger of
         the Company with another corporation, or the sale of all or
         substantially all of its assets to another corporation, shall be
         effected in such a way that holders of shares of Common Stock shall be
         entitled to receive Common Stock, Other Securities or assets with
         respect to or in exchange for shares of Common Stock, then, as a
         condition of such reorganization, reclassification, consolidation,
         merger or sale, lawful and adequate provision shall be made whereby the
         Warrantholder shall thereafter have the right to purchase and receive
         upon the basis and upon the terms and conditions specified in the
         Warrants and in lieu of the shares of Common Stock of the Company
         immediately theretofore purchasable and receivable upon the exercise of
         the Warrants such shares of Common Stock, Other Securities or assets as
         may be issued or payable with respect to or in exchange for a number of
         outstanding shares of Common Stock equal to the number of shares of
         Common Stock immediately theretofore purchasable and receivable upon
         the exercise of the Warrants had such reorganization, reclassification,
         consolidation, merger or sale not taken place, and in any such case
         appropriate provision shall be made with respect to the rights and
         interests of the Warrantholder so that the provisions of the Warrants
         (including, without limitation, provisions for adjustment of the
         Purchase Price and the number of shares purchasable upon the exercise
         of the Warrants) shall thereafter be applicable, as nearly as may be,
         in relation to any shares of Common Stock, Other Securities or assets
         thereafter deliverable upon the exercise of the Warrants.

         7 Special Agreements of the Company.

                  (a) Will Reserve Shares. The Company will reserve and set
         apart and have at all times the number of shares of authorized but
         unissued Common Stock deliverable upon the exercise of the Warrants,
         and it will have at all times any other rights or privileges provided
         for herein sufficient to enable it at any time to fulfill all of its
         obligations hereunder.

                  (b) Will Avoid Certain Actions. The Company will not, by
         amendment of its Articles of Incorporation or through any
         reorganization, transfer of assets, consolidation, merger, issue or
         sale of securities or otherwise, avoid or take any action which would
         have the effect of avoiding the observance or performance hereunder by
         the Company, but will at all times in good faith assist in carrying out
         of all the provisions of the

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<PAGE>

         Warrants and in taking all such actions as may be necessary or
         appropriate in order to protect the rights of the Warrantholder against
         dilution or other impairment.

         8 Provisions for Registration. Despite anything in this Warrant to the
contrary, the Warrantholder shall have the following rights regarding
registration of Warrant Shares which may be hereafter acquired upon exercise of
this Warrant.

                  (a) Required Registration. If at any time the Company receives
         the written request from the Holder of this Warrant, the Company shall
         prepare and file a registration statement under the Securities Act
         covering the Warrant Shares which are the subject of such requests and
         shall use its best efforts to cause such registration statement to
         become effective; provided, however, that all Warrant Shares covered by
         such registration statement shall be converted into Common Stock prior
         to inclusion in such registration statement. In addition, upon the
         receipt of the aforementioned request, the Company shall promptly give
         written notice to all other record holders of Warrant Shares that such
         registration is to be effected. The Company shall include in such
         registration statement such Warrant Shares for which it has received
         written requests to register by such other record holders within
         fifteen (15) days after the Company's written notice to such other
         record holders. The Company shall be obligated to prepare, file and
         cause to become effective only two (2) registration statements pursuant
         to this Section 8(a). In the event that the holders of a majority of
         the Warrant Shares for which registration has been requested pursuant
         to this Section determine for any reason not to proceed with a
         registration at any time before the registration statement has been
         declared effective by the Commission, and such holders thereafter
         request the Company to withdraw such registration statement, the
         holders of such Warrant Shares agree to bear their own expenses
         incurred in connection therewith and to reimburse the Company for the
         expenses incurred by it attributable to such registration statement,
         then, and in such event, the holders of such Warrant Shares shall not
         be deemed to have exercised their right to require the Company to
         register Warrant Shares pursuant to this Section 8(a).

                  (b) Incidental Registration. Each time the Company shall
         determine to proceed with the actual preparation and filing of a
         registration statement under the Securities Act in connection with the
         proposed offer and sale for money of any of its Common Stock by it or
         any of its security holders, the Company will give written notice of
         its determination to all record holders of Warrant Shares. Upon the
         written request of a record holder of any Warrant Shares given within
         fifteen (15) days after receipt of any such notice from the Company,
         the Company will, except as herein provided, cause all such Warrant
         Shares, the record holders of which have so requested registration
         thereof, to be included in such registration statement, all to the
         extent requisite to permit the sale or other disposition by the
         prospective seller or sellers of the Warrant Shares to be so
         registered; provided, however, that (a) all such Warrant Shares to be
         so registered shall be converted into Common Stock prior to sale
         pursuant to such registration statement; (b) nothing herein shall
         prevent the Company from, at any time, abandoning or delaying any such
         registration initiated by it; and (c) if the Company determines not to
         proceed with a registration after the registration statement has been
         filed with the Commission and the Company's decision not to proceed is
         primarily based upon the anticipated public

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<PAGE>

         offering price of the securities to be sold by the Company, the Company
         shall promptly complete the registration for the benefit of those
         selling security holders who wish to proceed with a public offering of
         their securities and who bear all expenses in excess of $25,000
         incurred by the Company as the result of such registration after the
         Company has decided not to proceed. If any registration pursuant to
         this Section shall be underwritten in whole or in part, the Company may
         require that the Warrant Shares requested for inclusion pursuant to
         this Section be included in the underwriting on the same terms and
         conditions as the securities otherwise being sold through the
         underwriters. If in the good faith judgment of the managing underwriter
         of such public offering the inclusion of all of the Warrant Shares
         originally covered by a request for registration would reduce the
         number of shares to be offered by the Company or interfere with the
         successful marketing of the shares of stock offered by the Company, the
         number of Warrant Shares otherwise to be included in the underwritten
         public offering may be reduced pro rata among the holders thereof
         requesting such registration to a number that the managing underwriter
         believes will not adversely affect the sale of shares by the Company.
         Those securities which are thus excluded from the underwritten public
         offering, and any other Common Stock owned by such holders, shall be
         withheld from the market by the holders thereof for a period, not to
         exceed one hundred eighty (180) days, which the managing underwriter
         reasonably determines is necessary in order to effect the underwritten
         public offering.

                  (c) Registration Procedures. If and whenever the Company is
         required by the provisions of Sections 8(a) or 8(b) to effect the
         registration of any Warrant Shares under the Securities Act, the
         Company will:

                           1 prepare and file with the Commission a registration
                  statement with respect to such Warrant Shares, and use its
                  best efforts to cause such registration statement to become
                  and remain effective for such period as may be reasonably
                  necessary to effect the sale of such Warrant Shares, not to
                  exceed three (3) months;

                           2 prepare and file with the Commission such
                  amendments to such registration statement and supplements to
                  the prospectus contained therein as may be necessary to keep
                  such registration statement effective for such period as may
                  be reasonably necessary to effect the sale of such Warrant
                  Shares, not to exceed three (3) months;

                           3 furnish to the security holders participating in
                  such registration and to the underwriters of the Warrant
                  Shares being registered such reasonable number of copies of
                  the registration statement, preliminary prospectus, final
                  prospectus and such other documents as such security holders
                  and underwriters may reasonably request in order to facilitate
                  the public offering of such Warrant Shares;

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<PAGE>

                           4 use its best efforts to register or qualify the
                  Warrant Shares covered by such registration statement under
                  such state securities or blue sky laws of such jurisdictions
                  as such participating holders may reasonably request within
                  ten (10) days following the original filing of such
                  registration statement, except that the Company shall not for
                  any purpose be required to execute a general consent to
                  service of process or to qualify to do business as a foreign
                  corporation in any jurisdiction wherein it is not so
                  qualified;

                           5 notify the security holders participating in such
                  registration, promptly after it shall receive notice thereof,
                  of the time when such registration statement has become
                  effective or a supplement to any prospectus forming a part of
                  such registration statement has been filed;

                           6 notify such holders promptly of any request by the
                  Commission for the amending or supplementing of such
                  registration statement or prospectus or for additional
                  information;

                           7 prepare and file with the Commission, promptly upon
                  the request of any such holders, any amendments or supplements
                  to such registration statement or prospectus which, in the
                  opinion of counsel for such holders (and concurred in by
                  counsel for the Company), is required under the Securities Act
                  or the rules and regulations thereunder in connection with the
                  distribution of the Warrant Shares by such holder;

                           8 prepare and promptly file with the Commission and
                  promptly notify such holders of the filing of such amendment
                  or supplement to such registration statement or prospectus as
                  may be necessary to correct any statements or omissions if, at
                  the time when a prospectus relating to such securities is
                  required to be delivered under the Securities Act, any event
                  shall have occurred as the result of which any such prospectus
                  or any other prospectus as then in effect would include an
                  untrue statement of a material fact or omit to state any
                  material fact necessary to make the statements therein, in the
                  light of the circumstances in which they were made, not
                  misleading;

                           9 advise such holders, promptly after it shall
                  receive notice or obtain knowledge thereof, of the issuance of
                  any stop order by the Commission suspending the effectiveness
                  of such registration statement or the initiation or
                  threatening of any proceeding for that purpose and promptly
                  use its best efforts to prevent the issuance of any stop order
                  or to obtain its withdrawal if such stop order should be
                  issued; and

                           10 not file any amendment or supplement to such
                  registration statement or prospectus to which a majority in
                  interest of such holders shall have reasonably objected on the
                  grounds that such amendment or supplement does not comply in
                  all material respects with the requirements of the Securities
                  Act or the rules and regulations thereunder, after having been
                  furnished with a copy thereof

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<PAGE>

                  at least five (5) business days prior to the filing thereof,
                  unless in the opinion of counsel for the Company the filing of
                  such amendment or supplement is reasonably necessary to
                  protect the Company from any liabilities under any applicable
                  federal or state law and such filing will not violate
                  applicable law.

                  (d) Expenses. With respect to any registration, requested
         pursuant to Section 8(a) (except as otherwise provided in such section
         with respect to registrations voluntarily terminated at the request of
         the requesting security holders) and with respect to each inclusion of
         securities in a registration statement pursuant to Section 8(b) (except
         as otherwise provided in Section 8(b) with respect to registrations
         terminated by the Company), the Company shall bear the following fees,
         costs and expenses: all registration, filing and NASD fees, printing
         expenses, fees and disbursements of counsel and accountants for the
         Company, fees and disbursements of counsel for the underwriter or
         underwriters of such securities (if the Company and/or selling security
         holders are required to bear such fees and disbursements), all internal
         Company expenses, the premiums and other costs of policies of insurance
         against liability arising out of the public offering, and all legal
         fees and disbursements and other expenses of complying with state
         securities or blue sky laws of any jurisdictions in which the
         securities to be offered are to be registered or qualified. Fees and
         disbursements of counsel and accountants for the selling security
         holders, underwriting discounts and commissions and transfer taxes for
         selling security holders and any other expenses incurred by the selling
         security holders not expressly included above shall be borne by the
         selling security holders.

                  (e) Copies of Prospectus; Amendments of Prospectus. The
         Company will furnish the Warrantholder with a reasonable number of
         copies of any prospectus or offering circular and one copy of the
         registration statement included in such filings and will amend or
         supplement the same as required during the nine (9) month period
         following the effective date of the registration statement, provided,
         that the expenses of any amendment or supplement made or filed more
         than three (3) months after the effective date of the registration
         statement, at the request of the Warrantholder, shall be borne by the
         Warrantholder.

                  (f) Conditions of the Company's Obligations. It shall be a
         condition of the Company's obligation to register the Warrant Shares
         hereunder that the Warrantholder agrees to cooperate with the Company
         in the preparation and filing of any such registration statement, or in
         its efforts to establish that the proposed sale is exempt under the
         Securities Act, as to any proposed distribution. It shall also be a
         condition of the Company's obligations under this Agreement that, in
         the case of the filing of any registration statement, and to the extent
         permissible under the Securities Act, and controlling precedent
         thereunder, the Company and the Warrantholder provide
         cross-indemnification agreements to each other in customary scope
         covering the accuracy and completeness of the information furnished by
         each.

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<PAGE>

         9 Notices. Any notice or other document required or permitted to be
given or delivered to the Warrantholder shall be delivered or sent by certified
mail to the Warrantholder at the last address shown on the books of the Company
maintained for the registry and transfer of the Warrants. Any notice or other
document required or permitted to be given or delivered to the Company shall be
delivered or sent by certified or registered mail to the principal office of the
Company.

         10 No Rights as Shareholders; Limitation of Liability. This Warrant
shall not entitle any holder hereof to any of the rights of a shareholder of the
Company. No provisions hereof, in the absence of affirmative action by the
holder hereof to purchase shares of Common Stock, and no mere enumeration herein
of the rights or privileges of the holder hereof, shall give rise to any
liability of such holder for the Purchase Price or as a shareholder of the
Company whether such liability is asserted by the Company or by creditors of the
Company.

         11 Governing Law. This Warrant shall be governed by, and construed and
enforced in accordance with, the laws of the State of Minnesota, without regard
to conflicts of laws principles.

         12 Miscellaneous. This Warrant and any provision hereof may be changed,
waived, discharged, or terminated only by an instrument in writing signed by the
party (or any predecessor in interest thereof) against which enforcement of the
same is sought. The headings in this Warrant are for purposes of reference only
and shall not affect the meaning or construction of any of the provisions
hereof.

         IN WITNESS WHEREOF, the Company has caused this Warrant to be signed by
a duly authorized officer, and to be dated as of January 18, 2000.

                                      UNITED SHIPPING & TECHNOLOGY, INC.

                                          By:
                                             ----------------------------------
                                              Peter C. Lytle
                                              Chief Executive Officer

"THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933 (THE "1933 ACT") OR UNDER THE SECURITIES LAWS OF ANY
OTHER STATE AND MAY NOT BE TRANSFERRED WITHOUT (i) THE OPINION OF COUNSEL
SATISFACTORY TO THE COMPANY THAT SUCH TRANSFER MAY LAWFULLY BE MADE WITHOUT
REGISTRATION UNDER THE 1933 ACT OR THE SECURITIES LAWS OF ANY APPLICABLE STATE;
OR (ii) SUCH REGISTRATION."

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                             FULL SUBSCRIPTION FORM

To Be Executed By the Registered Warrantholder if It/
She/He Desires to Exercise in Full the Within Warrant

         The undersigned hereby exercises the right to purchase the

_____________ shares of Common Stock covered by the within Warrant at the date

of this subscription and herewith makes payment of the sum of

$____________________________ representing the Purchase Price of $__________ per

share in effect at that date. Certificates for such shares shall be issued in

the name of and delivered to the undersigned, unless otherwise specified by

written instructions, signed by the undersigned and accompanying this

subscription.

Dated:______________________________

                                         Signature:_____________________________

                                         Address:

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<PAGE>

                            PARTIAL SUBSCRIPTION FORM

To be Executed by the Registered Warrantholder if It/She/He
Desires to Exercise in Part Only the Within Warrant

         The undersigned hereby exercises the right to purchase __________
shares of the total shares of Common Stock covered by the within Warrant at the
date of this subscription and herewith makes payment of the sum of $____________
representing the Purchase Price of $_________ per share in effect at this date.

         Certificates for such shares and a new Warrant of like tenor and date
for the balance of the shares not subscribed for (if any) shall be issued in the
name of and delivered to the undersigned, unless otherwise specified by written
instructions, signed by the undersigned and accompanying this subscription.

         The shares hereby subscribed for constitute ______________ shares of
Common Stock (to the nearest whole share) resulting from adjustment of
______________ shares of the total of __________________ shares of Common Stock
covered by the within Warrant, as said shares were constituted at the date of
the Warrant.

Dated:__________________________

                                        Signature:__________________________

                                        Address:

                                       11EXHIBIT 10.9

                       UNITED SHIPPING & TECHNOLOGY, INC.
                        (FORMERLY KNOWN AS U-SHIP, INC.)

                             1995 STOCK OPTION PLAN

1.       PURPOSE

         The purpose of this 1995 Stock Option Plan, as amended on May 3, 1999,
(the "Plan") is to promote the interests of United Shipping & Technology, Inc.
(formerly known as U-Ship, Inc.), a Utah corporation (the "Company"), by
providing employees of the Company and certain independent contractors with an
opportunity to acquire a proprietary interest in the Company, and thereby
develop a stronger incentive to contribute to the Company's continued success
and growth. In addition, the opportunity to acquire a proprietary interest in
the Company by the offering and availability of stock options will assist the
Company in attracting and retaining key personnel and consultants of outstanding
ability.

2.       DEFINITIONS

         Wherever used in the Plan, the following terms have the meanings set
forth below:

         2.1 "Board" means the Board of Directors of the Company.

         2.2 "Code" means the Internal Revenue Code of 1986, as amended, and the
rules and regulations promulgated thereunder.

         2.3 "Committee" means the Committee which may be designated from time
to time by the Board to administer the Plan pursuant to Section 3.5.

         2.4 "Company" means United Shipping & Technology, Inc. and any
Subsidiary of the Company.

         2.5 "Incentive Stock Option" or "ISO" means the stock option which is
intended to qualify as an incentive stock option as defined in Section 422 of
the Code.

         2.6 "Non-Statutory Stock Option" or "NSO" means a stock option that is
not intended to, or does not, qualify as an incentive stock option as defined in
Section 422 of the Code.

         2.7 "Option" means, where required by the context of the Plan, an ISO
and/or NSO granted pursuant to the Plan.

         2.8 "Optionee" means a Participant in the Plan who has been granted one
or more Options under the Plan.

<PAGE>

         2.9 "Participant" means an individual described in Section 5 of this
Plan who may be granted Options under the Plan.

         2.10 "Stock" means the Common Stock, $.004 par value, of the Company.

         2.11 "Subsidiary" means any corporation, other than the Company, in an
unbroken chain of corporations beginning with the Company if each of the
corporations other than the last corporation in the unbroken chain owns 50% or
more of the voting stock in one of the other corporations in such chain.

3.       ADMINISTRATION

         3.1 The Plan shall be administered by the Board, which shall have full
power, subject to the provisions of the Plan, to grant Options, construe and
interpret the Plan, establish rules and regulations with respect to the Plan and
Options granted hereunder, and perform all other acts, including the delegation
of administrative responsibilities, that it believes reasonable and necessary.

         3.2 The Board shall have the sole discretion, subject to the provisions
of the Plan, to determine the Participants eligible to receive Options pursuant
to the Plan and the amount, type, and terms of any Options and the terms and
conditions of option agreements relating to any Option. On a case by case basis,
the Board may, in its sole discretion, accelerate the schedule of the time or
times when an Option granted under the Plan may be exercised.

         3.3 The Board may correct any defect, supply any omission, or reconcile
any inconsistency in the Plan or in any Option granted hereunder in the manner
and to the extent it shall deem necessary to carry out the terms of the Plan.

         3.4 Any decision made, or action taken, by the Board arising out of or
in connection with the interpretation and administration of the Plan shall be
final, conclusive and binding upon all Optionees.

         3.5 The Board may designate a Committee from time to time to administer
the Plan. If designated, the Committee shall be composed of not less than two
persons (who need not be members of the Board) who are appointed from time to
time by the Board. If the Board has appointed a Committee pursuant to this
Section 3.5 of the Plan, then the Committee may administer the Plan and exercise
all of the rights and powers granted to the Board in this Plan, including,
without limitation, the right to grant Options pursuant to the Plan and to
establish the Option price as provided in the Plan.

<PAGE>

4.       SHARES SUBJECT TO THE PLAN

         4.1 NUMBER. The total number of shares of Stock reserved for issuance
upon exercise of Options under the Plan is 1,950,000. Such shares shall consist
of authorized but unissued Stock. If any Option granted under the Plan lapses or
terminates for any reason before being completely exercised, the shares covered
by the unexercised portion of such Option may again be made subject to Options
under the Plan.

         4.2 CHANGES IN CAPITALIZATION. In the event of any change in the
outstanding shares of Stock of the Company by reason of any stock dividend,
split, recapitalization, reorganization, merger, consolidation, combination,
exchange of shares, or rights offering to purchase stock at a price
substantially below fair market value, or other similar corporate change, the
aggregate number of shares which may be subject to Options under the Plan and
the terms of any outstanding Option, including the number and kind of shares
subject to such Options and the purchase price per share thereof, shall be
appropriately adjusted by the Board, consistent with such change and in such
manner as the Board, in its sole discretion, may deem equitable to prevent
substantial dilution or enlargement of the rights granted to or available for
Optionees. Notwithstanding the preceding sentence, in no event shall any
fraction of a share of Stock be issued upon the exercise of an Option.

5.       ELIGIBLE PARTICIPANTS

         The following persons are Participants eligible to participate in the
Plan:

         5.1 INCENTIVE STOCK OPTIONS. Incentive Stock Options may be granted
only to employees of the Company or any Subsidiary, including officers and
directors who are also employees of the Company or any Subsidiary; provided,
however, that officers who are not employed full-time shall not be eligible for
Incentive Stock Options.

         5.2 NON-STATUTORY STOCK OPTIONS. Non-statutory stock options may be
granted to (i) any employee of the Company or any Subsidiary, including any
officer or director who is also an employee of the Company or any Subsidiary;
and (ii) any consultant to, or other independent contractor of, the Company.

6.       GRANT OF OPTIONS

         6.1 DISCRETIONARY GRANTS. Subject to the terms, conditions, and
limitations set forth in this Plan, the Company, by action of its Board, may
from time to time grant Options to purchase shares of the Company's Stock to
those eligible Participants as may be selected by the Board, in such amounts and
on such other terms as the Board in its sole discretion shall determine. In
making stock option grants the Board shall specify in each stock option
agreement the vesting schedule which shall apply to each such grant.

<PAGE>

         6.2 LIMITATIONS. Options specified in Section 6.1 above may be (i)
"Incentive Stock Options" so designated by the Board and which, when granted,
are intended to qualify as incentive stock options as defined in Section 422 of
the Code; (ii) "Non-Statutory Stock Options" so designated by the Board and
which, when granted, are not intended to, or do not, qualify as incentive stock
options under Section 422 of the Code; or (iii) a combination of both. The date
on which the Board approves the granting of an Option shall be the date of grant
of such Option, unless a different date is specified by the Board on such date
of approval. Notwithstanding the foregoing, with respect to the grant of any
Incentive Stock Option under the Plan, the aggregate fair market value of Stock
(determined as of the date the Option is granted) with respect to which
incentive stock options are exercisable for the first time by an Optionee in any
calendar year (under all such stock option plans of the Company or Subsidiaries)
shall not exceed $100,000. Each grant of an Option under the Plan shall be
evidenced by a written stock option agreement between the Company and the
Optionee setting forth the terms and conditions, not inconsistent with the Plan,
under which the Option so granted may be exercised pursuant to the Plan and
containing such other terms with respect to the Option as the Board in its sole
discretion may determine.

7.       OPTION PRICE AND FORM OF PAYMENT

         7.1 INCENTIVE STOCK OPTIONS. The purchase price for a share of Stock
subject to an Incentive Stock Option granted hereunder shall not be less than
100% of the fair market value of the Stock at the time the option is granted.
Notwithstanding the foregoing, in the case of an Incentive Stock Option granted
to any Optionee then owning more than 10% of the voting power of all classes of
the Company's stock, the purchase price per share of the Stock subject to such
Option shall not be less than 110% of the fair market value of the Stock on the
date of grant of the Incentive Stock Option, determined as provided in Section
7.3.

         7.2 NON-STATUTORY STOCK OPTIONS. The purchase price for a share of
Stock subject to a non-statutory stock option shall be not less than 100% of the
fair market value of the Stock.

         7.3 DETERMINATION OF FAIR MARKET VALUE. For purposes of this Section 7,
the "fair market value" of the Stock shall be determined as follows:

                  (a) if the Stock of the Company is listed or admitted to
         unlisted trading privileges on a national securities exchange, the fair
         market value on any given day shall be the closing sale price for the
         Stock, or if no sale is made on such day, the closing bid price for
         such day on such exchange;

                  (b) if the Stock is not listed or admitted to unlisted trading
         privileges on a national securities exchange, the fair market value on
         any given day shall be the closing sale price for the Stock as reported
         on the NASDAQ National Market System on such day, or if no sale is made
         on such day, the closing bid price for such day as entered by a market
         maker for the Stock;

<PAGE>

                  (c) if the Stock is not listed on a national securities
         exchange, is not admitted to unlisted trading privileges on any such
         exchange, and is not eligible for inclusion in the NASDAQ National
         Market System, the fair market value on any given day shall be the
         average of the closing representative bid and asked prices as reported
         by the National Quotation Bureau, Inc. or, if the Stock is not quoted
         on the National Association of Securities Dealers Automated Quotations
         System, then as reported in any publicly available compilation of the
         bid and asked prices of the Stock in any over-the-counter market on
         which the Stock is traded; or

                  (d) if there exists no public trading market for the Stock,
         the fair market value on any given day shall be an amount determined in
         good faith by the Board in such manner as it may reasonably determine
         in its discretion, provided that such amount shall not be less than the
         book value per share as reasonably determined by the Board as of the
         date of determination or less than the par value of the Stock.

         7.4 PAYMENT OF PURCHASE PRICE. Except as provided herein, the purchase
price of each share of Stock purchased upon the exercise of any Option shall be
paid:

                  (a) in United States dollars in cash or by check, bank draft
         or money order payable to the order of the Company; or

                  (b) at the discretion of the Board, through the delivery of
         shares of Stock, having initially or as a result of successive
         exchanges of shares, an aggregate fair market value (as determined in
         the manner provided under this Plan) equal to the aggregate purchase
         price for the Stock as to which the Option is being exercised; or

                  (c) at the discretion of the Board, by a combination of both
         (a) and (b) above; or

                  (d) by such other method as may be permitted in the written
         stock option agreement between the Company and the Optionee.

         If such form of payment is permitted, the Board shall determine
procedures for tendering Stock as payment upon exercise of an Option and may
impose such additional limitations and prohibitions on the use of Stock as
payment upon the exercise of an Option as it deems appropriate.

         If the Board in its sole discretion so agrees, the Company may finance
the amount payable by an Optionee upon exercise of any Option upon such terms
and conditions as the Board may determine at the time such Option is granted
under this Plan.

<PAGE>

8.       EXERCISE OF OPTIONS

         8.1 MANNER OF EXERCISE. An Option, or any portion thereof, shall be
exercised by delivering a written notice of exercise to the Board and paying to
the Company the full purchase price of the Stock to be acquired upon the
exercise of the Option. Until certificates for the Stock acquired upon the
exercise of an Option are issued to an Optionee, such Optionee shall not have
any rights as a shareholder of the Company with respect to such stock.

         8.2 LIMITATIONS AND CONDITIONS ON EXERCISE OF OPTIONS. In addition to
any other limitations or conditions contained in this Plan or that may be
imposed by the Board from time to time or in the stock option agreement to be
entered into with respect to Options granted hereunder, the following
limitations and conditions shall apply to the exercise of Options granted under
this Plan:

                  8.2.1 No Incentive Stock Option may be exercisable by its
         terms after the expiration of 10 years from the date of the grant
         thereof.

                  8.2.2 No Incentive Stock Option granted pursuant to the Plan
         to an eligible Participant then owning more than 10% of the voting
         power of all classes of the Company's stock may be exercisable by its
         terms after the expiration of five years from the date of the grant
         thereof.

9.       INVESTMENT PURPOSES

         Unless a registration statement under the Securities Act of 1933 is in
effect with respect to Stock to be purchased upon exercise of Options to be
granted under the Plan, the Company shall require that an Optionee agree with
and represent to the Company in writing that he or she is acquiring such shares
of Stock for the purpose of investment and with no present intention to
transfer, sell or otherwise dispose of such shares of Stock other than by
transfers which may occur by will or by the laws of descent and distribution,
and no shares of Stock may be transferred unless, in the opinion of counsel to
the Company, such transfer would be in compliance with applicable securities
laws. In addition, unless a registration statement under the Securities Act of
1933 is in effect with respect to the Stock to be purchased under the Plan, each
certificate representing any shares of Stock issued to an Optionee hereunder
shall have endorsed thereon a legend in substantially the following form:

         THE SHARES REPRESENTED BY THIS CERTIFICATE WERE ISSUED WITHOUT
         REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT")
         AND WITHOUT REGISTRATION UNDER ANY APPLICABLE STATE SECURITIES LAWS, IN
         RELIANCE UPON EXEMPTION(S) CONTAINED THEREIN. NO TRANSFER OF THESE
         SHARES OR ANY INTEREST THEREIN MAY BE MADE EXCEPT PURSUANT TO EFFECTIVE
         REGISTRATION STATEMENTS UNDER SAID LAWS UNLESS

<PAGE>

         THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL SATISFACTORY TO IT THAT
         SUCH TRANSFER OR DISPOSITION DOES NOT REQUIRE REGISTRATION UNDER SAID
         LAWS AND, FOR ANY SALES UNDER RULE 144 OF THE ACT, SUCH EVIDENCE AS IT
         SHALL REQUEST FOR COMPLIANCE WITH THAT RULE, OR APPLICABLE STATE
         SECURITIES LAWS.

10.      TRANSFERABILITY OF OPTIONS

         No Option granted under the Plan shall be transferable by an Optionee
(whether by sale, assignment, hypothecation or otherwise) other than by will or
the laws of descent and distribution. An option shall be exercisable during the
Optionee's lifetime only by the Optionee or by the Optionee's guardian or legal
representative.

11.      TERMINATION OF EMPLOYMENT

         11.1 GENERALLY. Except as otherwise provided in this Section 11, if an
Optionee's employment with the Company or Subsidiary is terminated (hereinafter
"Termination") other than by death or Disability (as hereinafter defined), the
Optionee may exercise any Option granted under the Plan, to the extent the
Optionee was vested in and entitled to exercise the Option at the date of
Termination, for a period of 3 months after the date of Termination or until the
term of the Option has expired, whichever date is earlier.

         11.2 DEATH OR DISABILITY OF OPTIONEE. In the event of the death or
Disability of an Optionee prior to expiration of an Option held by him or her,
the following provisions shall apply:

                  11.2.1 If the Optionee is at the time of his or her Disability
         employed by the Company or a Subsidiary and has been in continuous
         employment (as determined by the Board in its sole discretion) since
         the date of grant of the Option, then the Option may be exercised by
         the Optionee until the earlier of one year following the date of such
         Disability or the expiration date of the Option, but only to the extent
         the Optionee was vested in and entitled to exercise such Option at the
         time of his or her Disability. For the purpose of this Section 11, the
         term "Disability" shall mean a permanent and total disability as
         defined in Section 22(e)(3) of the Code. The determination of whether
         an Optionee has a Disability within the meaning of Section 22(e)(3)
         shall be made by the Board in its sole discretion.

                  11.2.2 If the Optionee is at the time of his or her death
         employed by the Company or a Subsidiary and has been in continuous
         employment (as determined by the Board in its sole discretion) since
         the date of grant of the Option, then the Option may be exercised by
         the Optionee's estate or by a person who acquired the right to exercise
         the Option by will or the laws of descent and distribution, until the
         earlier of one year from the date of the Optionee's death or the
         expiration date of the Option, but only to the extent the Optionee was
         vested in and entitled to exercise the Option at the time of death.

<PAGE>

                  11.2.3 If the Optionee dies within three months after
         Termination, the Option may be exercised until the earlier of nine
         months following the date of death or the expiration date of the
         Option, by the Optionee's estate or by a person who acquires the right
         to exercise the Option by will or the laws of descent or distribution,
         but only to the extent the Optionee was vested in and entitled to
         exercise the Option at the time of Termination.

         11.3 TERMINATION FOR CAUSE. If the employment of an Optionee is
terminated by the Company or a Subsidiary for cause, then the Board shall have
the right to cancel any Options granted to the Optionee under the Plan.

         11.4 SUSPENSION OR TERMINATION FOR MISCONDUCT. If the Board reasonably
believes that an Optionee has committed an act of misconduct, it may suspend the
Optionee's right to exercise any Option pending a determination by the Board. If
the Board determines that an Optionee has committed an act of embezzlement,
fraud, dishonesty, nonpayment of an obligation owed to the Company, breach of
fiduciary duty or deliberate disregard of the Company's rules resulting in loss,
damage or injury to the Company, or if an Optionee makes an unauthorized
disclosure of any Company trade secret or confidential information, engages in
any conduct constituting unfair competition with respect to the Company, or
induces any party to breach a contract with the Company, neither the Optionee
nor the Optionee's estate shall be entitled to exercise any Option whatsoever.
In making such determination, the Board shall act fairly and shall give the
Optionee an opportunity to appear and present evidence on the Optionee's behalf
at a hearing before the Board.

12.      AMENDMENT AND TERMINATION OF PLAN

         12.1 The Board may at any time terminate or amend this Plan in any
respect, provided, however, that the Board shall not, without the approval of
the shareholders of the Company, amend this Plan in any manner that requires
such shareholder approval pursuant to any law, regulation or rule relating the
listing of the Company's securities.

         12.2 No amendment, suspension or termination of this Plan shall,
without the Optionee's consent, alter or impair any of the rights or obligations
under any Option theretofore granted to him or her under the Plan.

         12.3 The Board may amend the Plan, subject to the limitations cited
above, in such manner as it deems necessary to permit the granting of Incentive
Stock Options meeting the requirements of future amendments to the Code.

         12.4 Upon the dissolution or liquidation of the Company, or upon a
merger, consolidation, acquisition of property or stock, or reorganization as a
result of which the Company is not the surviving corporation or upon a sale of
substantially all the property or stock of the Company to another corporation,
any option granted hereunder shall terminate and no such event shall cause any
option to be exercisable for any shares other than those as to which it was
exercisable prior to such termination in accordance with its terms; provided,
however, that the Company may in its discretion

<PAGE>

and immediately prior to any such transaction, cause a new option to be
substituted for such option or cause such old option to be assumed, by an
employer corporation, or a parent or subsidiary of such corporation; and such
new or substituted option shall apply to all shares issued in addition to or in
substitution, replacement or modification of the shares theretofore covered by
such option; provided that:

                  (a) the excess of the aggregate fair market value of the
         shares subject to the option immediately after the substitution or
         assumption over the aggregate option price of such shares shall not be
         more than the excess of the aggregate fair market value of all shares
         subject to the option immediately before such substitution or
         assumption over the aggregate option price of such shares,

                  (b) the new option or the assumption of the existing option
         shall not give the optionee additional benefits which he did not have
         under the old option or prior to such assumption, and

                  (c) a propriety adjustment of the original option price shall
         be made among original shares subject to the option and any additional
         share or shares issued in substitution, replacement or modification
         thereof.

13.      MISCELLANEOUS PROVISIONS

         13.1 NO RIGHT TO CONTINUED EMPLOYMENT. No person shall have any claim
or right to be granted an Option under the Plan, and the grant of an Option
under the Plan shall not be construed as giving an Optionee the right to
continued employment with the Company. The Company further expressly reserves
the right at any time to dismiss an Optionee or reduce an Optionee's
compensation with or without cause, free from any liability, or any claim under
the Plan, except as provided herein or in a stock option agreement.

         13.2 TRANSFER OF STOCK AND PAYMENT OF WITHHOLDING TAXES. The Company
shall have the right to require that payment or provision for payment of any and
all withholding taxes due upon the grant or exercise of an Option hereunder or
the disposition of any Stock or other property acquired upon exercise of an
Option be made by an Optionee. Stock acquired upon exercise of an Incentive
Stock Option may not be disposed of by the Optionee before the later of two
years from the date of grant or one year from the date of exercise unless
adequate provision is made for payment to the Company of funds sufficient for
payment of any withholding and other taxes required by any governmental
authority in respect of the disposition of such stock. The Company may place a
legend on certificates restricting the transfer of Stock issued pursuant to
Incentive Stock Options in order to obtain compliance with tax withholding
requirements. In connection therewith, the Board shall have the right to
establish such rules and regulations or impose such terms and conditions in any
agreement relating to an Option granted hereunder with respect to such tax
withholding as the Board may deem necessary and appropriate.

<PAGE>

         13.3 GOVERNING LAW. The Plan shall be administered in the State of
Minnesota, and the validity, construction, interpretation, and administration of
the Plan and all rights relating to the Plan shall be determined solely in
accordance with the laws of such state, unless controlled by applicable federal
law, if any.

14.      EFFECTIVE DATE

         The effective date of the Plan is June 5, 1995 subject, however, to
approval of this Plan by shareholders of the Company in the manner prescribed by
law not later than June 5, 1996. No Option may be granted after June 5, 2005,
provided, however, that the Plan and all outstanding Options shall remain in
effect until such outstanding Options have expired or been canceled.

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