Document:

EXHIBIT 10.2

                              MEGADATA CORPORATION

                        AMENDED 1999 STOCK INCENTIVE PLAN

SECTION 1.  PURPOSES

         The purposes of the Megadata Corporation 1999 Stock Incentive Plan (the
"Plan") are (i) to enable Megadata Corporation (the "Company") and its Related
Companies (as defined below) to attract, retain, and reward employees and
strengthen the existing mutuality of interests between such employees and the
Company's stockholders by offering such employees an equity interest in the
Company, and (ii) to enable the Company to pay part of the compensation of its
Outside Directors (as defined in Section 5.2) in shares of the Company's common
stock and options to purchase the Company's common stock, thereby increasing
such director's proprietary interests in the Company, and (iii) to enable the
Company to pay all or part of the compensation of its Consultants (as defined in
Section 5.2) in shares of the Company's common stock and options to purchase the
Company's common stock, thereby increasing such Consultants proprietary
interests in the Company. For purposes of the Plan, a "Related Company" means
any corporation, partnership, joint venture or other entity in which the Company
owns, directly or indirectly, at least a 20% beneficial ownership interest.

SECTION 2.  TYPES OF AWARDS

         2.1      Awards to employees under the plan may be in the form of (i)
                  Stock Options; (ii) Stock Appreciation Rights; (iii)
                  Restricted Stock; (iv) Deferred Stock; (v) Bonus Stock: (vi)
                  Loans; and/or (vii) Tax Offset Payments. Outside Directors may
                  receive only Stock Options and Limited Stock Appreciation
                  Rights as provided in Section 15; Consultants may receive only
                  Stock Options and Consultants' Stock Grants as provided in
                  Section 15.6.

         2.2      An eligible employee, Outside Director or Consultant may be
                  granted one or more types of awards, which may be independent
                  or granted in tandem. If two awards are granted in tandem, the
                  employee, Outside Director or Consultant may exercise (or
                  otherwise receive the benefit of) one award only to the extent
                  he or she relinquishes the tandem award.

SECTION 3.  ADMINISTRATION

         3.1      The Plan shall be administered by the Company's Board of
                  Directors (the "Board") or such committee of Directors as the
                  Board shall designate (the "Committee"), which shall consist
                  of not less than three Directors each of whom is (a) a
                  disinterested person, as such term is defined in Rule 16b-3
                  under the Securities Exchange Act of 1934 or any successor
                  rule, and (b) an outside director satisfying the requirements
                  of Section 162(m) of the Internal Revenue Code of 1986, as
                  amended, or any successor thereto (the "Code"). The members of
                  the Committee shall serve at the pleasure of the Board.

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         3.2.     The Committee shall have the following authority with respect
                  to awards under the Plan other than awards to Outside
                  Directors: to recommend awards to eligible employees and
                  Consultants under the Plan; to adopt, alter and repeal such
                  administrative rules, guidelines and practices governing the
                  Plan as it shall deem advisable; to interpret the terms and
                  provisions of the Plan and awards granted under the Plan; and
                  to otherwise supervise the administration of the Plan. In
                  particular, and without limiting its authority and powers,
                  except with respect to awards to Outside Directors, the
                  Committee shall have the authority:

                  a)    to recommend whether and to what extent any award or
                        combination of awards will be granted hereunder,
                        including whether any awards will be granted in tandem
                        with each other;

                  b)    to recommend the employees and Consultants to whom
                        awards will be granted;

                  c)    to recommend the number of shares of the common stock of
                        the Company (the "Stock") to be covered by each award
                        granted hereunder subject to the limitations contained
                        herein;

                  d)    to recommend the terms and conditions of any award
                        granted hereunder, including, but not limited to, any
                        vesting or other restrictions based solely on such
                        performance objectives (the "Performance Objectives");

                  e)    to recommend the treatment of awards upon an employee's
                        (or Consultant's) retirement, disability, death,
                        termination for cause or other termination of
                        employment;

                  f)    to recommend pursuant to a formula or otherwise the fair
                        market value of the Stock on a given date; provided,
                        however, that if the Committee fails to recommend or the
                        Board of Directors fails to make a determination, fair
                        market value of the Stock on a given date shall be the
                        closing sale price on a given date, or if no such sale
                        of Stock occurs on such date, the weighted average of
                        the closing sale price on the nearest trading dates
                        before and after such date;

                  g)    to recommend that awards equal to the amount of any
                        dividends declared with respect to the number of shares
                        covered by an award (i) will be paid to the grantee
                        currently or (ii) will be deferred and deemed to be
                        reinvested or (iii) will otherwise be credited to the
                        grantee, or that the grantee has no rights with respect
                        to such dividends;

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                  h)    to recommend whether, to what extent, and under what
                        circumstances Stock and other amounts payable with
                        respect to an award will be deferred either
                        automatically or at the election of a grantee, including
                        providing for and determining the amount (if any) of
                        deemed earnings on any deferred amount during any
                        deferral period;

                  i)    to recommend that the shares of Stock received as a
                        result of an award shall be subject to a right of first
                        refusal, pursuant to which the grantee shall be required
                        to offer to the Company any shares that the grantee
                        wishes to sell, subject to such terms and conditions as
                        the Committee may specify;

                  j)    to recommend amendment of the terms of any award,
                        prospectively or retroactively; provided, however, that
                        no amendment shall impair the rights of the award holder
                        without his or her written consent; and;

                  k)    to recommend substitute new Stock Options for previously
                        granted Stock Options, or for options granted under
                        other plans or agreements, in each case including
                        previously granted options having higher option prices.

         All awards and the other matters identified above will require the
approval of the Company's Board of Directors, and the Board of Directors shall
have the authority to take any of the actions identified above regardless of
whether such action is recommended by the Committee. The Board may delegate to
the Committee any of the powers of the Board specified herein.

         Each option or Stock or other award granted under this Plan shall be
evidenced by an Option Agreement or Award Agreement between the Company and the
grantee of the award.

         3.3      The Board shall have the right to designate awards as
                  "Performance Awards." Awards so designated shall be granted
                  and administered in a manner designed to preserve the
                  deductibility of the compensation resulting from such awards
                  in accordance with Section 162(m) of the Code. The grant or
                  vesting of a Performance Award shall be subject to the
                  achievement of Performance Objectives established by the Board
                  based on one or more of the following criteria, in each case
                  applied to the Company on a consolidated basis and/or to a
                  business unit, and which the Board may use as an absolute
                  measure, as a measure of improvement relative to prior
                  performance, or as a measure of comparable performance
                  relative to a peer group of companies; sales, operating
                  profits, operating profits before interest expense and taxes,
                  net earnings, earnings per share, return on equity, return on
                  assets, return on invested capital, total shareholder return,
                  cash flow, debt to equity ratio, market share, stock price,
                  economic value added, and market value added. The Performance
                  Objectives for a particular Performance Award relative to a
                  particular fiscal year shall be established by the Board in
                  writing no later than 90 days after the beginning of such
                  year. The Board's determination as to the achievement of
                  Performance Objectives relating to a Performance Objective
                  shall be made in writing. The Board shall have discretion to
                  modify the Performance Objective or vesting conditions of a
                  Performance Award only to the extent that the exercise of such
                  discretion would not cause the Performance Award to fail to
                  qualify as "performance-based compensation" within the meaning
                  of Section 162(m) of the Code.

                                      -3-
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         3.4      With respect to awards to Outside Directors, the Board shall
                  have the authority to interpret the Plan; to adopt, amend, and
                  rescind administrative regulations to further the purposes of
                  the Plan; and to take any other action necessary to the proper
                  operation of the Plan. However, the Board shall have no
                  discretion to vary the amount or terms of awards as set forth
                  in Section 15, except as provided in Section 4.4.

         3.5      All determinations made by the Board pursuant to the
                  provisions of the Plan shall be final and binding on all
                  persons, including the Company and Plan participants.

         3.6      The Board may from time to time delegate to one or more
                  officers of the Company any or all of its authorities granted
                  hereunder except with respect to awards granted to persons
                  subject to Section 16 of the Securities and Exchange Act of
                  1934 or Performance Awards. The Board shall specify the
                  maximum number of shares that the officer or officers to whom
                  such authority is delegated may award.

SECTION 4.  STOCK SUBJECT TO PLAN

         4.1      The total number of shares with respect to which awards may be
                  issued under the Plan shall be 1,800,000 shares of the
                  Company's common stock, of which 1,250,000 shares shall be
                  used for awards for employees and 550,000 shares shall be used
                  for awards to Outside Directors, Consultants, as well as
                  employees of the Company (all subject to adjustments as
                  provided below). Such shares may consist of authorized but
                  unissued shares or treasury shares. The exercise of a Stock
                  Appreciation Right for cash or the payment of any other award
                  in cash shall not count against this share limit.

         4.2      To the extent a Stock Option terminates without having been
                  exercised, or an award terminates without the award holder
                  having received payment of the award, or shares awarded are
                  forfeited, the shares subject to such award shall again be
                  available for distribution in connection with future awards
                  under the Plan. Shares of Stock equal in number to the shares
                  surrendered in payment of the option price, and shares of
                  Stock which are withheld in order to satisfy federal, state or
                  local tax liability, shall not count against the above limit,
                  and shall again be available for grants under the Plan.

         4.3      No employee shall be granted Stock Options, Stock Appreciation
                  Rights, Restricted Stock, Deferred Stock, and/or Bonus Stock,
                  or any combination of the foregoing with respect to more than
                  100,000 shares of Stock under the Plan in any fiscal year
                  (subject to adjustment as provided in Section 4.4). No
                  employee shall be granted a Tax Offset Payment in any fiscal
                  year with respect to more than the number of shares of Stock
                  covered by awards granted to such employee in such fiscal
                  year.

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         4.4      In the event of any merger, reorganization, consolidation,
                  sale of substantially all assets, recapitalization, stock
                  dividend, stock split, spin-off, split-up, split-off,
                  distribution of assets or other change in corporate structure
                  affecting the Stock, a substitution or adjustment, as may be
                  determined to be appropriate by the Board in its sole
                  discretion, shall be made in the aggregate number of shares
                  reserved for issuance under the Plan, the number of shares as
                  to which awards may be granted to any individual in any
                  calendar year, the number of shares subject to outstanding
                  awards and the amounts to be paid by award holders or the
                  Company, as the case may be, with respect to outstanding
                  awards; provided, however, that no such adjustment shall
                  increase the aggregate value of any outstanding award. In the
                  event of a change described in this Section 4.4 occurs, the
                  Board shall make the appropriate adjustment in the awards
                  previously granted and to be granted to Outside Directors
                  under the Plan; provided that no such adjustment shall
                  increase the aggregate value of any outstanding award.

SECTION 5.  ELIGIBILITY

         5.1      Employees of the Company or a Related Company, including
                  employees who are officers and/or directors of the Company,
                  are eligible to be granted awards under the Plan, other than
                  under Section 15. Except as provided in Section 5.2, persons
                  who are not employees are not eligible to be granted awards
                  under the Plan. The participants under the Plan shall be
                  selected from time to time by the Committee, in its sole
                  discretion, from among those eligible.

         5.2      Awards under Section 15 of the Plan shall be made solely to
                  Outside Directors and Consultants. "Outside Director" shall
                  mean any director of the Company other than one who is an
                  employee of the Company or a Related Company. "Consultant"
                  shall mean a person (other than an Outside Director) who
                  provides services to the Company or a Related Company in a
                  capacity other than that of an employee.

SECTION 5.  STOCK OPTIONS

         6.1      The Stock Options awarded to employees under the Plan may be
                  of two types: (i) Incentive Stock Options within the meaning
                  of Section 422 of the Code or any successor provision thereto;
                  and (ii) Non-Qualified Stock Options. To the extent that any
                  Stock Option does not qualify as an Incentive Stock Option, it
                  shall constitute a Non-Qualified Stock Option.

         6.2      Subject to the following provisions, Stock Options awarded to
                  employees under the Plan shall be in such form and shall have
                  such terms and conditions as the Board may determine:

                  a)    OPTION PRICE. The option price per share of Stock
                        purchasable under a Stock Option shall be determined by
                        the Board, and may not be less than the fair market
                        value of the Stock on the date of the award of the Stock
                        Option.

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                  b)    OPTION TERM. The term of each Stock Option shall be
                        fixed by the Board. However, unless determined to the
                        contrary, the term of the stock option shall be ten
                        years from the date of grant, subject to earlier
                        termination in the event of termination of service.

                  c)    EXERCISABILITY. Stock Options shall be exercisable at
                        such time or times and subject to such terms as shall be
                        determined by the Board. The Board may waive such
                        exercise provisions or accelerate the exercisability of
                        the Stock Option at any time in whole or in part.
                        However, unless determined to the contrary, all options
                        shall vest 33-1/3% on each of the first, second, and
                        third anniversary of the grant provided however, that no
                        option shall vest in whole or in part prior to November
                        30, 2000. Any option granted prior to November 30, 1999,
                        shall have its first anniversary date on November 30,
                        2000, with subsequent anniversaries on each November
                        30th of the following years.

                  d)    METHOD OF EXERCISE. Stock Options may be exercised in
                        whole or in part at any time during the option period by
                        giving written notice of exercise to the Company
                        specifying the number of shares to be purchased,
                        accompanied by payment of the purchase price. Payment of
                        the purchase price shall be made in such manner and on
                        such terms as the Board may provide in the award, which
                        may include cash (including cash equivalents), delivery
                        of shares of Stock already owned by the optionee or
                        subject to awards hereunder, "cashless exercise", any
                        other manner permitted by law determined by the Board,
                        or any combination of the foregoing. If the Board
                        determines that a Stock Option may be exercised using
                        shares of Restricted Stock, then unless the Board
                        provides otherwise, a number of the shares received upon
                        such exercise equal to the number of shares of
                        restricted Stock so used shall be restricted in
                        accordance with the original terms of the Restricted
                        Stock award.

                  e)    NO STOCKHOLDER RIGHTS. An optionee shall have neither
                        rights to dividends nor other rights of a stockholder
                        with respect to shares subject to a Stock Option until
                        the optionee has given written notice of exercise and
                        has paid for such shares.

                  f)    NON-TRANSFERABILITY. Unless otherwise provided by the
                        Board, (i) Stock Options shall not be transferable by
                        the optionee other than by will or by the laws of
                        descent and distribution, and (ii) during the optionee's
                        lifetime, all Stock Options shall be exercisable only by
                        the optionee or by his or her guardian or legal
                        representative.

                                      -6-
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                  g)    TERMINATION OF EMPLOYMENT. Following the termination of
                        an optionee's employment with the Company or a Related
                        Company, the Stock Option shall be exercisable to the
                        extent determined by the Board and the Board may provide
                        that upon termination of employment all options and
                        awards are forfeited and are no longer exercisable. The
                        Board may provide different post-termination exercise
                        provisions with respect to termination of employment for
                        different reasons. The Board may provide that,
                        notwithstanding the option term fixed pursuant to
                        Section 6.2(b), a Stock Option which is outstanding on
                        the date of an optionee's death shall remain outstanding
                        for an additional period after the date of such death.

         6.3      Notwithstanding the provisions of Section 6.2, no Incentive
                  Stock Option shall (i) have an option price which is less than
                  100% of the fair market value of the Stock on the date of the
                  award of the Incentive Stock Option, (ii) be exercisable more
                  than ten years after the date such Incentive Stock Option is
                  awarded, or (iii) be awarded more than ten years after the
                  effective date of the Plan specified in Section 19. No
                  Incentive Stock Option granted to an employee who owns more
                  than 10% of the total combined voting power of all classes of
                  stock of the Company or any of its parent or subsidiary
                  corporations, as defined in Section 424 of the Code, shall (a)
                  have an option price which is less than 110% of the fair
                  market value of the Stock on the date of award of the
                  Incentive Stock Option or (b) be exercisable more than five
                  years after the date such Incentive Stock Option is awarded.

SECTION 7.  STOCK APPRECIATION RIGHTS

         7.1      A Stock Appreciation Right awarded to an employee shall
                  entitle the holder thereof to receive payment of an amount, in
                  cash, shares of Stock or a combination thereof, as determined
                  by the Board, equal in value to the excess of the fair market
                  value of the number of shares of Stock as to which the award
                  is granted on the date of exercise over an amount specified by
                  the Board. Any such award shall be in such form and shall have
                  such terms and conditions as the Board may determine. The
                  grant shall specify the number of shares of Stock as to which
                  the Stock Appreciation Right is granted.

         7.2      The Board may provide that a Stock Appreciation Right awarded
                  to an employee may be exercised only within the 60-day period
                  following occurrence of a Change of Control (as defined in
                  Section 17.2)(such Stock Appreciation Right being referred to
                  herein as a Limited Stock Appreciation Right). The Board may
                  also provide that in the event of a Change of Control the
                  amount to be paid upon an employee's exercise of a Stock
                  Appreciation Right shall be based on the Change of Control
                  Price (as defined in Section 17.3)

SECTION 8.  RESTRICTED STOCK

         Subject to the following provisions, all awards of Restricted Stock to
employees shall be in such form and shall have such terms and conditions as the
Board may determine:

                                      -7-
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                  a)    The Restricted Stock award shall specify the number of
                        shares of Restricted Stock to be awarded, the price, if
                        any, to be paid by the recipient of the Restricted Stock
                        and the date or dates on which, or the conditions upon
                        the satisfaction of which, the Restricted Stock will
                        vest. The grant and/or the vesting of Restricted Stock
                        may be conditioned upon the completion of a specified
                        period of service with the Company or a Related Company,
                        upon the attainment of specified Performance Objectives
                        or upon such other criteria as the Board may determine.

                  b)    Stock certificates representing the Restricted Stock
                        awarded to an employee shall be registered in the
                        employee's name, but the Board may direct that such
                        certificates be held by the Board on behalf of the
                        employee. Except as may be permitted by the Board,no
                        share of Restricted Stock may be sold, transferred,
                        assigned, pledged or otherwise encumbered by the
                        employee until such share has vested in accordance with
                        the terms of the Restricted Stock award. At the time
                        Restricted Stock vests, a certificate for such vested
                        shares shall be delivered to the employee (or his or her
                        designated beneficiary in the event of death), free of
                        all restrictions.

                  c)    The Board may provide that the employee shall have the
                        right to vote or receive dividends on Restricted Stock.
                        Unless the Board provides otherwise, Stock received as a
                        dividend on, or in connection with a stock split of,
                        Restricted Stock shall be subject to the same
                        restrictions as the Restricted Stock.

                  d)    Except as may be provided by the Board, in the event of
                        an employee's termination of employment before all of
                        his or her Restricted Stock has vested, or in the event
                        any conditions to the vesting of Restricted Stock have
                        not been satisfied prior to any deadline for the
                        satisfaction of such conditions set forth in the award,
                        the shares of Restricted Stock which have not vested
                        shall be forfeited, and the Board may provide that (i)
                        any purchase price paid by the employee shall be
                        returned to the employee or (ii) a cash payment equal to
                        the Restricted Stock's fair market value on the date of
                        forfeiture, if lower, shall be paid to the employee.

                  e)    The Board may waive, in whole or in part, any or all of
                        the conditions to receipt of, or restrictions with
                        respect to, any or all of the employee's Restricted
                        Stock, other than Performance Awards whose vesting was
                        made subject to satisfaction of one or more Performance
                        Objectives (except that the Board may waive conditions
                        or restrictions with respect to Performance Awards if
                        such waiver would not cause the Performance Award to
                        fail to qualify as "performance-based compensation"
                        within the meaning of Section 162(m) of the Code).

SECTION 9.  DEFERRED STOCK AWARDS

         Subject to the following provisions, all awards of Deferred Stock to
employees shall be in such form and shall have such terms and conditions as the
Board may determine:

                                      -8-
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                  a)    The Deferred Stock award shall specify the number of
                        shares of Deferred Stock to be awarded to any employee
                        and the duration of the period (the "Deferral Period")
                        during which, and the conditions under which, receipt of
                        the Stock will be deferred. The Board may condition the
                        grant or vesting of Deferred Stock, or receipt of Stock
                        or cash at the end of the Deferral Period, upon the
                        attainment of specified Performance Objectives or such
                        other criteria as the Committee may determine.

                  b)    Except as may be provided by the Board, Deferred Stock
                        awards may not be sold, assigned, transferred, pledged
                        or otherwise encumbered during the Deferral Period.

                  c)    At the expiration of the Deferral Period, the employee
                        (or his or her designated beneficiary in the event of
                        death) shall receive (i) certificates for the number of
                        shares of Stock equal to the number of shares covered by
                        the Deferred Stock award, (ii) cash equal to the fair
                        market value of such Stock, or (iii) a combination of
                        shares and cash, as the Committee may determine.

                  d)    In the event of an employee's termination of employment
                        before the Deferred Stock has vested, his or her
                        Deferred Stock award shall be forfeited.

                  e)    The Board may waive, in whole or in part, any or all of
                        the conditions to receipt of, or restrictions with
                        respect to, Stock or cash under a Deferred Stock award,
                        other than with respect to Performance Awards (except
                        that the Board may waive conditions or restrictions with
                        respect to Performance Awards if such waiver would not
                        cause the Performance Award to fail to qualify as
                        "performance-based compensation" within the meaning of
                        Section 162(m) of the Code).

SECTION 10.  BONUS STOCK

         The Committee may award Bonus Stock to an eligible employee subject to
such terms and conditions as the Committee shall determine, provided no person
who is the beneficial owner of 5% or more of the outstanding shares of the
Company shall be entitled to receive such an award. The grant of Bonus Stock may
be conditioned upon the attainment of specified Performance Objectives or upon
such other criteria as the Committee may determine. The Board may waive such
conditions in whole or in part other than with respect to Performance Awards
(except that the Board may waive conditions or restrictions with respect to
Performance Awards if such waiver would not cause the Performance Award to fail
to qualify as "performance-based compensation" within the meaning of Section
162(m) of the Code). The Board shall also have the right to eliminate or reduce
the amount of Bonus Stock otherwise payable under an award. Unless otherwise
specified by the Board, no money shall be paid by the recipient for Bonus Stock.
Alternatively, the Board may offer eligible employees the opportunity to
purchase Bonus Stock at a discount from its fair market value. The Bonus Stock
award shall be satisfied by the delivery of the designated number of shares of
Stock which are not subject to restriction.

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SECTION 11.  LOANS

         The Board may provide (except with respect to a person who is the
beneficial owner of 5% or more of the outstanding shares of the Company or any
director or executive officer of the Company) that the Company shall make, or
arrange for, a loan or loans to an employee with respect to the exercise of any
Stock Option award under the Plan, with respect to the payment of the purchase
price, if any, of any Restricted Stock awarded hereunder or with respect to any
taxes arising from an award hereunder: provided, however, that the Company shall
not loan to an employee more than the sum of (i) the excess of the purchase or
exercise price of an award over the par value of any shares of Stock awarded
plus (ii) the amount of any taxes arising from such award. The Board shall have
full authority to decide whether a loan will be made hereunder and to determine
the amount, term and provisions of any such loan, including the interest rate to
be charged, whether the loan will be with or without recourse against the
borrower, any security for the loan, the terms on which the loan is to be repaid
and the conditions, if any, under which the loan may be forgiven.

SECTION 12.  TAX OFFSET PAYMENTS

         The Board may provide for a Tax Offset Payment by the Company to an
employee (except with respect to a person who is the beneficial owner of 5% or
more of the outstanding shares of the Company) with respect to one or more
awards granted under the Plan. The Tax Offset Payment shall be in an amount
specified by the Board, which shall not exceed the amount necessary to pay the
federal, state, local and other taxes payable with respect to the applicable
award and the receipt of the Tax Offset Payment, assuming that the employee is
taxed at the maximum tax rate applicable to such income. The Tax Offset Payment
shall be paid solely in cash.

SECTION 13.  ELECTION TO DEFER AWARDS

         The Board may permit an employee to elect to defer receipt of an award
for a specified period or until a specified event, upon such terms as are
determined by the Board.

SECTION 14.  TAX WITHHOLDING

         14.1     Each employee shall, no later than the date as of which the
                  value of an award first becomes includable in such person's
                  gross income for tax purposes, pay to the Company, or make
                  arrangements satisfactory to the Board regarding payment of
                  any federal, state, local or other taxes of any kind required
                  by law to be withheld with respect to the award. The
                  obligations of the Company under the Plan shall be conditional
                  on such payment or arrangements, and the Company (and, where
                  applicable, any Related Company), shall, to the extent
                  permitted by law, have the right to deduct any such taxes from
                  any payment of any kind otherwise due to the employee.

                                      -10-
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         14.2     To the extent permitted by the Board, and subject to such
                  terms and conditions as the Board may provide, an employee may
                  elect to have the withholding tax obligations, or any
                  additional tax obligation with respect to any awards
                  hereunder, satisfied by (i) having the Company withhold shares
                  of Stock otherwise deliverable to such person with respect to
                  the award or (ii) delivering to the Company shares of
                  unrestricted Stock. Alternatively, the Board may require that
                  a portion of the shares of Stock otherwise deliverable be
                  applied to satisfy the withholding tax obligations with
                  respect to the award.

SECTION 15. STOCK OPTIONS, LIMITED STOCK APPRECIATION RIGHTS AND STOCK GRANTS
FOR OUTSIDE DIRECTORS AND CONSULTANTS

         15.1     INITIAL GRANT. Each person who was an Outside Director on the
                  date of adoption of the Original Plan by the Stockholders was
                  granted automatically (without action of the Board) on such
                  date a Stock Option to purchase 15,000 shares. Each person who
                  becomes an Outside Director after such date shall be granted,
                  on the first trading day coincident with or immediately
                  following the effective date of his or her election as an
                  Outside Director, a Stock Option to purchase 15,000 shares, or
                  such lesser amount as is approved by the Board of Directors.

                  b)    For purposes of this Section 15.1, the term trading day
                        shall mean a day on which the Stock is traded on a
                        national securities exchange, on the NASDAQ National
                        Market, or in the over-the-counter market.

         15.2     Stock Options granted under this Section 15 shall be
                  Non-Qualified Stock Options, and shall have the following
                  terms and conditions:

                  a)    OPTION PRICE. The option price per share of Stock
                        purchasable under the Stock Option shall be equal to the
                        closing sales price of the Stock on the date the Stock
                        Option is granted.

                  b)    TERM OF OPTION. The term of the Stock Option shall be
                        ten years from the date of grant, subject to earlier
                        termination in the event of termination of service, as
                        set forth in paragraphs (e) and (f) below.

                  c)    EXERCISABILITY. Subject to paragraphs (e) and (f) below,
                        each Stock Option granted to an Outside Director
                        currently serving shall vest with respect to 33-1/3% of
                        the underlying shares on November 30, 2000, and an
                        additional 33-1/3% on November 30, 2001, and the balance
                        on November 30, 2002, provided that the optionee is a
                        director of the Company on each such date. The minimum
                        number of shares with respect to which a Stock Option
                        may be exercised is the lesser of 100 shares or the
                        number of shares then subject to the Stock Option.
                        Options granted subsequently shall vest 33-1/3% on each
                        of the first, second, and third anniversaries of the
                        date of grant, but in no event prior to November 30,
                        2000. Any option granted prior to November 30, 1999,
                        shall have its first anniversary date on November 30,
                        2000, with subsequent anniversaries on each November
                        30th of the following years.

                                      -11-
<PAGE>

                  d)    METHOD OF EXERCISE. The Stock Options may be exercised
                        in whole or in part at any time during the option period
                        by giving written notice of exercise to the Company
                        specifying the number of shares to be purchased,
                        accompanied by payment of the purchase price. Payment of
                        the purchase price shall be made in cash (including cash
                        equivalents) or by delivery of shares of Stock already
                        owned by the optionee for at least six months, or by any
                        combination or the foregoing. Shares delivered upon
                        payment of the exercise price shall be valued at the
                        average of the high and low sales price of the Stock on
                        the date of exercise (or, if the Stock is not traded on
                        such date, at the weighted average of the high and low
                        prices on the nearest trading dates before and after
                        such date).

                  e)    TERMINATION OF SERVICE OF DIRECTORS. If an Outside
                        Director's status as a director is terminated for any
                        reason, such director's Stock Options may be exercised
                        for three years following such termination of service
                        (but not beyond the Option term), but only to the extent
                        such Options were vested on the date of termination of
                        service.

                  f)    CHANGE OF CONTROL. Notwithstanding any other provision
                        of the Plan, upon the occurrence of a Change of Control
                        (as defined in Section 17.2), all Outside Directors'
                        Stock Options outstanding at the time of such Change of
                        Control shall become immediately vested and exercisable
                        for three years after the director's termination service
                        (but not beyond the option term).

                  g)    NON-TRANSFERABILITY. Outside Directors' Stock Options
                        shall not be transferable by the optionee other than by
                        laws of descent and distribution. During an optionee's
                        lifetime, all Outside Directors' Stock Options shall be
                        exercisable only by the optionee or by his or her
                        guardian or legal representative.

                  h)    SHAREHOLDER RIGHTS. The holder of an Outside Directors'
                        Stock Option shall, as such, have none of the rights of
                        a shareholder.

         15.3     LIMITED STOCK APPRECIATION RIGHTS IN TANDEM WITH OPTIONS. Each
                  Stock Option granted to an Outside Director under this Section
                  15 shall be granted in tandem with a Limited Stock
                  Appreciation Right which may be exercised only within the
                  60-day period following a Change of Control (as defined in
                  Section 17.2). Upon exercise of the Limited Stock Appreciation
                  Right, the holder shall receive, for each share with respect
                  to which the Limited Stock Appreciation Right is exercised, an
                  amount equal in value to the excess of the Change of Control
                  Price (as defined in Section 17.3) over the exercise price of
                  the related Stock Option. The Limited Stock Appreciation Right
                  shall be payable solely in cash, and shall be within 30 days
                  of the exercise of the Limited Stock Appreciation Right.

                                      -12-
<PAGE>

         15.4     Notwithstanding the foregoing, if on any date on which awards
                  are to be granted under this Section 15 the remaining shares
                  available for issuance to Outside Directors and Consultants
                  are insufficient to enable each Outside Director to receive
                  the Stock Option and/or Quarterly Stock Grant to which he or
                  she is entitled, then: (a) no award shall be made on such date
                  to any Consultant; and (b) each Outside Director who is
                  entitled to be granted an award pursuant to this Section 15 on
                  such date shall be granted a Stock Option to purchase and/or a
                  Quarterly Stock Grant with respect to, his or her pro rata
                  portion of such remaining shares.

         15.5     From time to time the Board, at its sole discretion, may elect
                  to award to Consultants of the Company, Stock Options to
                  purchase shares of the Company's Stock. In addition, the
                  Board, at its sole discretion, may award shares of Stock to
                  such Consultants. These awards may be granted whenever the
                  Board determines that issuing such options or shares will be
                  in the best interests of the Company, or as a direct payment
                  to be made the Consultant in lieu of a cash payment for
                  services to be rendered to the Company. Such Awards granted to
                  Consultants under this section will be considered non
                  repetitive, "one time" awards, and will carry with them such
                  terms, conditions, and restrictions as the Board shall
                  prescribe, provided however, that Stock options granted to
                  Consultants shall also be subject to Section 15.2 (as
                  applicable).

SECTION 16.  AMENDMENTS AND TERMINATIONS

         The Board may discontinue the Plan at any time and may amend it from
time to time. No amendment or discontinuation of the Plan shall adversely affect
any award previously granted without the award holder's written consent. The
provisions of Section 15 shall not be amended more than once every six months,
other than to conform with the Internal Revenue Code, the Employee Retirement
Income Security Act, or the rules thereunder. Amendments may be made without
stockholder approval except as required to satisfy Rule 16b-3 under the
Securities Exchange Act of 1934 (or any successor rule), Sections 162(m) or 422
of the Code, or other regulatory requirements.

SECTION 17.  CHANGE OF CONTROL

         17.1     In the event of a Change of Control, unless otherwise
                  determined by the Board at the time of grant or by amendment
                  (with the holder's consent) of such grant:

                  a)    all outstanding Stock Options and all outstanding Stock
                        Appreciation Rights (including Limited Stock
                        Appreciation Rights) awarded under the Plan shall become
                        fully exercisable and vested;

                                      -13-
<PAGE>

                  b)    the restrictions and deferral limitations applicable to
                        any outstanding Restricted Stock and Deferred Stock
                        awards under the Plan shall lapse and such shares and
                        awards shall be deemed fully vested; and

                  c)    to the extent the cash payment of any award is based on
                        the fair market value of Stock, such fair market value
                        shall be the Change of Control Price.

         17.2     A "Change of Control" shall be deemed to occur subsequent to
                  the date of the Plan on:

                  a)    the date that any person or group deemed a person under
                        Sections 3(a)(9) and 13(d)(3) of the Securities Exchange
                        Act of 1934 (other than the Company and its subsidiaries
                        as determined immediately prior to that date) has become
                        the beneficial owner, directly or indirectly (with
                        beneficial ownership determined as provided in Rule
                        13d-3, or any successor rule, under the Securities
                        Exchange Act of 1934) of securities of the Company
                        representing 25% or more of the total combined voting
                        power of all classes of stock of the Company having the
                        right under ordinary circumstances to vote at an
                        election of the Board, unless such person has acquired
                        80% or more of such securities directly from the
                        Company;

                  b)    the date on which one-third or more of the members of
                        the Board shall consist or persons other than Current
                        Directors (for these purposes, a "Current Director"
                        shall mean a member of the Board on the effective date
                        of the Plan, as well as any member of the Board whose
                        nomination or election has been approved by a majority
                        of the Current Directors then on the Board);

                  c)    consummation of a merger or consolidation of the Company
                        with another corporation where the Company is not the
                        surviving entity and where (i) the stockholders of the
                        Company, immediately prior to the merger or
                        consolidation, would not beneficially own, immediately
                        after the merger or consolidation, shares entitling such
                        stockholders to 50% or more of all votes (without
                        consideration of the rights of any class of stock to
                        elect directors by a separate class vote) to which all
                        stockholders of the corporation issuing cash or
                        securities in the merger or consolidation would be
                        entitled in the election of directors, or (ii) where the
                        members of the Board, immediately prior to the merger or
                        consolidation, would not, immediately after the merger
                        or consolidation constitute a majority of the Board of
                        Directors of the corporation issuing cash or securities
                        in the merger; or

                  d)    consummation of an agreement providing for the sale or
                        disposition of all or substantially all of the assets of
                        the Company.

                                      -14-
<PAGE>

         17.3     "Change of Control Price" means the highest price per share
                  paid in any transaction reported in the NASDAQ National Market
                  or on any national securities exchange where the Stock is
                  traded, or paid or offered in any transaction related to a
                  Change of Control at any time during the 90-day period ending
                  with the Change of Control. Notwithstanding the foregoing
                  sentence, in the case of Stock Appreciation Rights granted in
                  tandem with Incentive Stock Options, the Change of Control
                  Price shall be the highest price paid on the date on which the
                  Stock Appreciation Right is exercised.

SECTION 18.  GENERAL PROVISIONS

         18.1     Each award under the Plan shall be subject to the requirement
                  that, if at any time the Board shall determine that (i) the
                  listing, registration or qualification of the Stock subject or
                  related thereto upon any securities exchange or under any
                  state or federal law, or (ii) the consent or approval of any
                  government regulatory body or (iii) an agreement by the
                  recipient of an award with respect to the disposition of Stock
                  is necessary or desirable (in connection with any requirement
                  or interpretation of any federal or state securities law, rule
                  or regulation) as a condition of, or in connection with, the
                  granting of such award or the issuance, purchase or delivery
                  of Stock there under, such award shall not be granted or
                  exercised, in whole or in part, unless such listing,
                  registration, qualification, consent, approval or agreement
                  shall have been effected or obtained free of any conditions
                  not acceptable to the Board.

         18.2     Nothing set forth in this Plan shall prevent the Board from
                  adopting other or additional compensation arrangements.
                  Neither the adoption of the Plan nor any award hereunder shall
                  confer upon any employee, Outside Director or Consultant any
                  right to continued service in any capacity.

         18.3     Determinations by the Board under the Plan relating to the
                  form, amount, and terms and conditions of awards need not be
                  uniform, and may be made selectively among persons who receive
                  or are eligible to receive awards under the Plan, whether or
                  not such persons are similarly situated.

         18.4     No member of the Board or the Committee, nor any officer or
                  employee of the Company acting on behalf of the Board or the
                  Committee, shall be personally liable for any action,
                  determination or interpretation taken or made with respect to
                  the Plan, and all members of the Board or the Committee and
                  all officers or employees of the Company acting on their
                  behalf shall, to the extent permitted by law, be fully
                  indemnified and protected by the Company in respect of any
                  such action, determination or interpretation.

         18.5     This Plan shall be governed by and construed in accordance
                  with the laws of the State of New York.

                                      -15-
<PAGE>

SECTION 19.  EFFECTIVE DATE OF PLAN

         The provisions of the Plan with respect to Outside Directors were
adopted and shall be effective on March 23, 1999, and the provisions of the Plan
with respect to employees were adopted and shall be effective on March 23, 1999,
and the provisions of the Plan with respect to Consultants were adopted and
shall be effective on March 23, 1999, in each case subject to the approval by
the Company's stockholders at the 1999 Annual Meeting of Stockholders.

SECTION 20.  DURATION

         The Plan shall terminate on the earliest to occur of: (i) the adoption
of a resolution of the Company's Board of Directors terminating the Plan; (ii)
the date all shares of Common Stock subject to the Plan are purchased according
to the Plan's provisions; or (iii) ten years from the effective date of the
Plan.

                                      -16-EXHIBIT 10.1

                               AMENDMENT TO THE
                        JACK HENRY & ASSOCIATES, INC.
                            1996 STOCK OPTION PLAN

      On this 29th day of June, 2005, the Board of Directors of Jack Henry &
 Associates, Inc. adopted the following resolution to amend the 1996 Stock
 Option Plan:

 RESOLVED, that Section 5(h) of the Jack Henry & Associates, Inc. 1996 Stock
 Option Plan be amended as follows (amended portion underlined):

      5 (h)   Change in Option Terms.  Notwithstanding the terms of this
      Plan or of individual option agreements granted hereunder, the Board
      or Committee may, in its discretion, upon the death, disability or
      termination of employment of the option holder, or in such other
      circumstances as the Board or Committee may deem appropriate in its
      sole discretion, extend the term of the option or accelerate vesting
      thereof.

 The effective date of this amendment is June 29, 2005.

 In all other respects, the Jack Henry & Associates, Inc. 1996 Stock Option
 Plan remains unchanged.

                          /s/ Janet E. Gray
                          ------------------------
                          Janet E. Gray, Secretary

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