EXE TECHNOLOGIES INC
EX-10.3
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<h2 style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:right;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit 10.3</font></b></h2>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EXE TECHNOLOGIES, INC.</font></p>



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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">STOCK OPTION PLAN FOR NON-EMPLOYEE DIRECTORS</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Amended and Restated Effective April 4, 2002; and</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Amended Effective May 30, 2002</font></p>



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<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EXE Technologies, Inc., a Delaware corporation (the &#147;<u>Company</u>&#148;),

hereby formulates and adopts the following Stock Option Plan (the &#147;<u>Plan</u>&#148;)

for Non-&#173;Employee Directors of the Company.</font></p>



<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Purpose</u>.&#160; The purpose of the Plan is to secure for the

Company the benefits of the additional incentive inherent in the ownership of

Common Stock, par value $.0l per share, of the Company (&#147;<u>Common Stock</u>&#148;)

by non-employee directors of the Company and to help the Company secure and

retain the services of such non-employee directors.</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Administration</u>.&#160;

The Plan is intended to be a largely self-&#173;governing formula plan.&#160; To this end, except as provided in Section

4, the Plan requires minimal discretionary action by any administrative body

with regard to any transaction under the Plan.&#160;

To the extent that questions of administration arise, these shall be

resolved by the Board of Directors of the Company (the &#147;<u>Board of Directors</u>&#148;).</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Subject to the

express provisions of the Plan, the Board of Directors shall have plenary

authority to interpret the Plan, to prescribe, amend and rescind the rules and

regulations relating to it and to make all other determinations deemed

necessary and advisable for the administration of the Plan.&#160; The determination of the Board of Directors

shall be conclusive.</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Common Stock Subject to Options</u>.&#160; Subject to the adjustment provisions of Section

15 below, a maximum of 300,000 shares of Common Stock may be made subject to

Options (as hereinafter defined) granted under the Plan.&#160; If, and to the extent that, Options granted

under the Plan shall terminate, expire or be canceled for any reason without

having been exercised, new Options may be granted in respect of the shares

covered by such terminated, expired or canceled Options.&#160; The granting and terms of such new Options

shall comply in all respects with the provisions of the Plan.</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Shares sold upon the

exercise of any Option granted under the Plan may be shares of authorized and

unissued Common Stock, shares of issued Common Stock held in the Company&#146;s

treasury or both.</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">There shall be reserved at

all times for sale under the Plan a number of shares, of either authorized and

unissued shares of Common Stock or shares of Common Stock held in the Company&#146;s

treasury, or both, equal to the maximum number of shares that may be purchased

pursuant to Options granted or that may be granted under the Plan.</font></p>



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<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;text-autospace:none;">&nbsp;</p>



<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Grant of Options</u>.</font></p>



<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Initial Awards</u>.&#160;

Each person who is first elected, appointed or otherwise first becomes

an &#147;<u>Eligible Director</u>&#148; (as defined in Section 5) after the Effective

Date (as defined in Section 19) shall receive an Option to purchase 25,000

shares of Common Stock as of the date on which such person first becomes an

Eligible Director (&#147;<u>Initial Options</u>&#148;).</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Special One-Time Award</u>.&#160; Each person who is an Eligible Director as of the Effective Date

shall receive an Option to purchase 25,000 shares of Common Stock as of the

Effective Date (&#147;<u>Special Options</u>&#148;).</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Subsequent Awards</u>.&#160;

Each Eligible Director who is re-elected, shall, effective as of the

first day of such Eligible Director&#146;s new three-year term, receive an Option to

purchase 25,000 shares of Common Stock for service as a director of the Company

(&#147;<u>Subsequent Options</u>&#148;); provided that, if a re-elected Eligible

Director&#146;s term is for one year, such Eligible Director shall receive

Subsequent Options only on the third anniversary of his initial election, and,

if re-elected, every three years thereafter; provided further, that if the

Company institutes three-year terms for directors and this causes an Eligible

Director to be eligible for Subsequent Options prior to the expiration of three

years from a prior grant of Initial Options or Subsequent Options, the Board of

Directors shall make equitable adjustments in the granting schedule of

Subsequent Options as it deems appropriate in its sole discretion.</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Discretionary Awards</u>.&#160; In addition to Initial Options, Special Options and Subsequent

Options, the Board of Directors may, in its sole discretion, award additional

Options (&#147;<u>Discretionary Options</u>&#148;) to Eligible Directors, in amounts and

subject to such vesting conditions as shall be prescribed in an applicable

Option Agreement.</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Initial Options, Special

Options, Subsequent Options and Discretionary Options may, individually or

collectively, be referred to as &#147;<u>Options</u>.&#148;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Type of Options</u>.&#160;

All Options granted under the Plan shall be &#147;nonqualified&#148; stock options

subject to the provisions of Section 83 of the Internal Revenue Code of 1986,

as amended (the &#147;<u>Code</u>&#148;).</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Individuals Eligible</u>.&#160; Only directors of the Company who are not employees of the

Company (&#147;<u>Eligible Directors</u>&#148;) shall participate in the Plan.&#160; A director receiving an Option pursuant to

the Plan may hereinafter be referred to as an &#147;<u>Optionee</u>.&#148;</font></p>



<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Price</u>.</font></p>



<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The option price of each share of Common Stock purchasable

under any Option granted pursuant to the Plan shall be no less than the Fair

Market Value (as defined below) thereof at the time the Option is granted.</font></p>



<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; For purposes of the Plan, &#147;<u>Fair Market Value</u>&#148; of a

share of Common Stock shall mean:</font></p>



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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>





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<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; If the shares of Common Stock are listed on a national or

regional securities exchange or traded through NASDAQ/NMS, then the Fair Market

Value of a share of Common Stock shall be the closing price for a share of

Common Stock on the exchange or on NASDAQ/NMS, as reported in The <u>Wall

Street Journal</u> or such other source as the Board of Directors deems

reliable on the relevant valuation date, or if there is no trading on that

date, on the next trading date.</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; If the shares of Common Stock are traded in the over-the-counter

market, then the Fair Market Value of a share of Common Stock shall be the mean

of the bid and asked prices for a share of Common Stock on the relevant

valuation date as reported in <u>The Wall Street Journal</u> or other source

the Board of Directors deems reliable (or, if not so reported, as otherwise

reported by the National Association of Securities Dealers Automated Quotations

(&#147;<u>NASDAQ</u>&#148;) System or the NASD OTC Bulletin Board), or if there is no

trading on such date, on the next trading date.</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; In the absence of an established market for the Common

Stock, the Fair Market Value of a share of Common Stock shall be determined by

the Board of Directors in its sole discretion.</font></p>



<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Vesting and

Duration of Options</u>.</font></p>



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<p align="left" style="margin:0in 0in .0001pt .5in;page-break-after:avoid;text-align:left;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Vesting</u>.</font></p>



<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Unless specified otherwise

in an Option Agreement, each Option granted hereunder shall vest and become

exercisable in &#188; increments on each of the first, second, third and fourth

anniversaries of the date such Option is granted; <u>provided</u> that the

Optionee is in the service of the Company as a director on such date.&#160; In the event of the termination of the

Optionee&#146;s service as a director of the Company prior to the fourth anniversary

of the date such Option is granted, such Option, to the extent not yet vested,

shall automatically and without notice terminate and become null and void.</font></p>



<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Term of Options</u>.</font></p>



<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Notwithstanding any

provision of the Plan to the contrary (other than Section 7(a)), the

unexercised portion of any Option granted under the Plan shall automatically

and without notice terminate and become null and void at the time of the

earliest to occur of the following:</font></p>



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<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The expiration of 10 years from the date on which such

Option was granted;</font></p>



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<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The expiration of three (3) months from the date the

Optionee&#146;s service with the Company shall terminate for any reason other than

death or Disability; and</font></p>



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<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The expiration of twelve (12) months from the date the

Optionee&#146;s service with the Company terminates due to death or Disability.</font></p>



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<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; For purposes of this Plan, &#147;<u>Disability</u>&#148; or &#147;<u>Disabled</u>&#148;

shall mean (i) when the Optionee is determined to be disabled within the

meaning of any long&#173; term disability policy or program sponsored by the Company

covering the Optionee, as in effect as of the date of such determination, or

(ii) if no such policy or program shall be in effect, when the Optionee is

unable to engage in any substantial gainful activity by reason of a physical or

mental impairment that can be expected to result in death or that has lasted or

can be expected to last for a continuous period of not less than twelve (12)

months.&#160; The determination of whether an

Optionee is Disabled pursuant to subparagraph (ii) shall be determined by the

Board of Directors, whose determination shall be conclusive.</font></p>



<p style="margin:0in 0in .0001pt;page-break-after:avoid;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Exercise of

Options</u>.</font></p>



<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; An Option granted under the Plan shall be deemed exercised

when the person entitled to exercise the Option:</font></p>



<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; delivers written notice to the Company at its principal

business office, directed to the attention of its Corporate Secretary, or to

the Company&#146;s designee of the decision to exercise; and</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:1.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; concurrently tenders to the Company full payment for the

shares to be purchased pursuant to such exercise, accompanied by any agreements

required by the Board of Directors or the terms of the Plan and any Option

Agreement.</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Payment for shares with respect to which an Option is

exercised may be made in any combination of the following: (i) by cash or

certified or official bank check payable to the Company (or the equivalent

thereof acceptable to the Board of Directors); (ii) with the consent of the

Board of Directors in its sole discretion, by personal check (subject to

collection) and which may in the Board of Directors&#146; discretion be deemed conditional;

and (iii) by delivery of previously &#173;acquired shares of Common Stock owned by

the grantee for at least six months (or such longer or shorter period as the

Board of Directors may prescribe that will not result in variable accounting

treatment) having a fair market value (determined as of the option exercise

date) equal to the portion of the option exercise price being paid

thereby.&#160; In addition, in the event

there is a public market for the shares and subject to such rules as may be

established by the Board of Directors, payment in accordance with clause (a) of

this Section 8 may be deemed to be satisfied by delivery to the Company of an

assignment of a sufficient amount of the proceeds from the sale of Common Stock

acquired upon exercise to pay for all of the Common Stock acquired upon

exercise and an authorization to the broker or selling agent to pay that amount

to the Company, which sale shall be made at the Optionee&#146;s direction at the

time of exercise; <u>provided</u>, <u>however</u>, that the availability of

this payment method shall be available only if the Board of Directors

determines that the accounting treatment that may result does not adversely

impact the Company.</font></p>



<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>





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<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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</font>



<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;text-autospace:none;">&nbsp;</p>



<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Nontransferability

of Options</u>.</font></p>



<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Except as provided

in Section 9(b), no Option or any right evidenced thereby shall be transferable

in any manner other than by will or the laws of descent and distribution, and,

during the lifetime of an Optionee, only the Optionee (or the Optionee&#146;s court-appointed

legal representative) may exercise an Option.</font></p>



<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Options may be

transferred by gift or domestic order to &#147;family members&#148; (as such term is

defined in the General Instructions to Form S-8) of Optionees (which includes,

without limitation, entities in which the Optionee own more than 50% of the

voting interests).</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Power of Board if Change of Control</u>.&#160; Notwithstanding anything to the contrary set

forth in this Plan, in the event of a Change of Control (as defined below), the

Board of Directors shall have the right, in its sole discretion, to accelerate

the vesting of all Options that have not vested as of the date of the Change of

Control and/or to establish an earlier date for the expiration of the exercise

of an Option (notwithstanding a later expiration of exercisability set forth in

an Option Agreement).&#160; In addition, in

the event of a Change of Control of the Company, the Board of Directors shall

have the right, in its sole discretion, subject to and conditioned upon a Sale

of the Company (as defined below): (a) to arrange for the successor company (or

other entity) to assume all of the rights and obligations of the Company under

this Plan; or (b) to terminate this Plan and (i) to pay to all Optionees cash

with respect to those Options that are vested as of the date of the Sale of the

Company in an amount equal to the difference between the Option Price and the

Fair Market Value of a Share of Common Stock (determined as of the date the

Plan is terminated) multiplied by the number of Options that are vested as of

the date of the Sale of the Company which are held by the Optionee as of the

date of the Sale of the Company, or (ii) to arrange for the exchange of all

Options for options to purchase common stock in the successor corporation, or (iii)

to distribute to each Optionee other property in an amount equal to and in the

same form as the Optionee would have received from the successor corporation if

the Optionee had owned the Shares subject to Options that are vested as of the

date of the Sale of the Company rather than the Option at the time of the Sale

of the Company.&#160; The form of payment or

distribution to the Optionee pursuant to this Section shall be determined by

the Board of Directors in its sole discretion.</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">For purposes of this Plan, &#147;<u>Change of Control</u>&#148; shall mean the

happening of an event (excluding a public offering) that shall be deemed to

have occurred upon the earliest to occur of the following events: (i) the date

the stockholders of the Company (or the Board, if stockholder action is not

required) approve a plan or other arrangement pursuant to which the Company

will be dissolved or liquidated; (ii) the date the stockholders of the Company

(or the Board, if stockholder action is not required) approve a definitive

agreement to sell or otherwise dispose of all or substantially all of the

assets of the Company; (iii) the date the stockholders of the Company (or the

Board, if stockholder action is not required) and the stockholders of the other

constituent corporations (or their respective boards of directors, if and to

the extent that stockholder action is not required) have approved a definitive

agreement to merge or consolidate the Company with or into another corporation,

other than, in either case, a merger or consolidation of the Company in which

holders of shares of the Company&#146;s voting capital stock immediately prior to

the merger or consolidation will have at least fifty percent (50%) of the</font></p>



<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>





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<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="left" style="font-size:12.0pt;margin:0in 0in .0001pt .5in;text-align:left;text-autospace:none;text-indent:-.5in;">&nbsp;</p>



<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ownership of voting capital

stock of the surviving corporation immediately after the merger or

consolidation (on a fully diluted basis), which voting capital stock is to be

held by each such holder in the same or substantially similar proportion (on a

fully diluted basis) as such holder&#146;s ownership of voting capital stock of the

Company immediately before the merger or consolidation; (iv) the date any

entity, person or group (within the meaning of Section 13(d)(3) or Section

14(d)(2) of the Securities Exchange Act of 1934, as amended (the &#147;<u>Exchange

Act</u>&#148;)), other than (A) the Company, (B) any of its subsidiaries, (C) any of

the holders of the capital stock of the Company, as determined on the date that

this Plan is adopted by the Board, (D) any employee benefit plan (or related

trust) sponsored or maintained by the Company or any of its Subsidiaries or (E)

any Affiliate of any of the foregoing, shall have acquired beneficial ownership

of, or shall have acquired voting control over more than fifty percent (50%) of

the outstanding shares of the Company&#146;s voting capital stock (on a fully

diluted basis), unless the transaction pursuant to which such person, entity or

group acquired such beneficial ownership or control resulted from the original

issuance by the Company of shares of its voting capital stock and was approved

by at least a majority of directors who shall have been members of the Board

for at least twelve (12) months prior to the date of such approval; (v) the

first day after the date of this Plan when directors are elected such that there

shall have been a change in the composition of the Board such that a majority

of the Board shall have been members of the Board for less than twelve (12)

months, unless the nomination for election of each new director who was not a

director at the beginning of such twelve (12) month period was approved by a

vote of at least sixty percent (60%) of the directors then still in office who

were directors at the beginning of such period; or (vi) the date upon which the

Board determines (in its sole discretion) that based on then current available

information, the events described in clause (iv) are reasonably likely to

occur.</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Sale of the Company</u>&#148;

shall mean the earliest of: (i) the closing of a sale, transfer or other

disposition of all or substantially all of the shares of the capital stock then

outstanding of the Company (except if such transferee is then an Affiliate);

(ii) the closing of a sale, transfer or other disposition of all or

substantially all of the assets of the Company (except if such transferee is

then an Affiliate); or (iii) the merger or consolidation of the Company with or

into another corporation (except an Affiliate), other than a merger or

consolidation of the Company in which the holders of shares of the Company&#146;s

voting capital stock outstanding immediately before such merger or

consolidation hold greater than fifty percent (50%) of the surviving entity&#146;s

voting capital stock after such consolidation or merger.</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Forfeiture</u>.&#160;

Notwithstanding any other provision of this Plan, if an Optionee&#146;s

service with the Company is terminated and the Board of Directors makes a

determination that the Optionee (a) has engaged in any type of disloyalty to

the Company, including without limitation, fraud, embezzlement, theft, or

dishonesty in the course of Optionee&#146;s service, (b) has been convicted of a

felony or other crime involving a breach of trust or fiduciary duty owed to the

Company, or (c) has made an unauthorized disclosure of trade secrets or

confidential information of the Company then, at the election of the Board of

Directors, all unexercised Options held by the Optionee (whether or not then

exercisable) shall terminate.&#160; In the

event of such an election by the Board of Directors, in addition to immediate

termination of all unexercised Options, the Optionee shall forfeit all shares

for which the Company has not yet delivered stock certificates to the Optionee

and the Company shall refund to the Optionee the</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p>





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<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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</font>



<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">exercise price paid to it upon exercise of the Option with respect to

such shares.&#160; Notwithstanding anything

herein to the contrary, the Company may withhold delivery of stock certificates

pending the resolution of any inquiry that could lead to a finding resulting in

forfeiture.</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Rights of Optionee</u>.&#160; Neither the Optionee nor the Optionee&#146;s executor or administrator

shall have any of the rights of a stockholder of the Company with respect to

the shares subject to an Option until certificates for such shares shall

actually have been issued upon the due exercise of such Option.&#160; Unless the Board of Directors otherwise

determines in accordance with Section 15 below, no adjustment shall be made for

any regular cash dividend for which the record date is prior to the date of

such due exercise and full payment for such shares has been made therefore.</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Right to Terminate Service</u>.&#160; Nothing in the Plan or in any Option shall

confer upon any Optionee the right to continue in the services of the Company

or affect the right of the Company to terminate the Optionee&#146;s service at any

time, subject, however, to the provisions of any agreement between the Company

and the Optionee.</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Nonalienation of Benefits</u>.&#160; Except as otherwise expressly provided

herein, no right or benefit under the Plan shall be subject to anticipation,

alienation, sale, assignment, hypothecation, pledge, exchange, transfer,

encumbrance or charge, and any attempt to anticipate, alienate, sell, assign,

hypothecate, pledge, exchange, transfer, encumber or charge the same shall be

void.&#160; To the extent permitted by

applicable law, no right or benefit hereunder shall in any manner be liable for

or subject to the debts, contracts, liabilities or torts of the person entitled

to such benefits.</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Adjustment Upon Changes in Capitalization, etc.</u>&#160; In the event that the Board of Directors

determines that any dividend or other distribution (whether in the form of

cash, shares of Common Stock, other securities, or other property),

recapitalization, stock split, reverse stock split, reorganization, merger,

consolidation, split-up, spin-off, combination, repurchase, or exchange of

shares of Common Stock or other securities of the Company, issuance of warrants

or other rights to purchase shares of Common Stock or other securities of the

Company, or other similar corporate transaction or event affects the shares of

Common Stock such that an adjustment is determined by the Board of Directors in

its discretion to be appropriate in order to prevent dilution or enlargement of

the benefits or potential benefits intended to be made available under the

Plan, then the Board of Directors shall, in such manner as it may deem

equitable, adjust any or all of (i) the number of shares of Common Stock or

other securities of the Company (or number and kind of other securities or

property) with respect to which Options may be granted, including the amounts

specified in Section 4, (ii) the number of shares of Common Stock or other

securities of the Company (or number and kind of other securities or property)

subject to outstanding Options, and (iii) the grant or exercise price with

respect to any Option or, if deemed appropriate, make provision for a cash

payment to the holder of an outstanding Option in consideration for the

cancellation of such Option.</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">16.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Form of Agreements with Optionees</u>.&#160; Each Option granted pursuant to the Plan

shall be evidenced by an individual agreement (&#147;<u>Option Agreement</u>&#148;) in

writing and shall have</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7</font></p>





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<hr size="2" width="100%" noshade color="gray" align="left">



</font></div>



<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;text-autospace:none;">&nbsp;</p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">such form, terms and provisions, not inconsistent with the provisions

of the Plan, as the Board of Directors shall provide for such Option.&#160; In the event that any provisions of an

Option Agreement differ from the terms of the Plan, the Plan provisions shall

govern.&#160; Upon exercise of an Option, the

Board of Directors may, from time to time, require the Optionee to sign

agreements in connection with the Option as it, in its sole discretion, deems

advisable.&#160; The Option Agreement and any

other agreement required by the Plan or the Option Agreement, as determined by

the Board of Directors, may contain such other provisions of this Plan,

including, without limitation, restrictions upon or conditions precedent to the

exercise of the Option.</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Purchase for Investment</u>.&#160; Whether or not the Options and shares covered by the Plan have

been registered under the Securities Act of 1933, as amended, each person

exercising an Option under the Plan may be required by the Company to give a

representation in writing that such person is acquiring such shares for investment

and not with a view to, or in connection with, the sale, transfer or

distribution of any part thereof.&#160; The

Company will endorse any necessary legend referring to the foregoing

restriction upon the certificate or certificates representing any shares issued

or transferred to the Optionee upon the exercise of any Option granted under

the Plan.</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">18.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Termination and Amendment of Plan and Options</u>.</font></p>



<p align="left" style="margin:0in 0in .0001pt;page-break-after:avoid;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Unless the Plan shall theretofore have been terminated as

hereinafter provided, Options may be granted under the Plan, as provided in

Section 4 hereof, prior to the tenth anniversary of the Effective Date on which

date the Plan will expire, except as to Options then outstanding under the

Plan.&#160; Such Options shall remain in

effect until they have been exercised, have expired or have been canceled.</font></p>



<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Plan may be terminated or amended at any time by the

Board of Directors; <u>provided</u>, <u>however</u>, that (i) any such

amendment shall comply with all applicable laws and applicable stock exchange

listing requirements and (ii) any amendment for which stockholder approval is

necessary to comply with any tax or regulatory requirement shall not be

effective until such approval has been obtained.</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; No termination, modification or amendment of the Plan,

without the consent of the Optionee, may adversely affect the rights of such

person with respect to any Option previously granted under the Plan.</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">19.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Effective Date of Plan</u>.&#160; The Plan shall become effective upon approval of the Plan by the

Board of Directors (the &#147;<u>Effective Date</u>&#148;).</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">20.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Government and Other Regulations</u>.&#160; The obligation of the Company with respect

to Options granted under the Plan shall be subject to all applicable laws,

rules and regulations and such approvals by any governmental agency as may be

required, including, without limitation, the effectiveness of any registration

statement required under the Securities Act of 1933, as amended, and the rules

and regulations of any securities exchange on which the Common Stock may be

listed.</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8</font></p>





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<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;text-autospace:none;">&nbsp;</p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">21.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Withholding</u>.&#160;

The Company&#146;s obligation to deliver shares of Common Stock in respect of

any Option granted under the Plan shall be subject to any applicable federal,

state and local tax withholding requirements.&#160;

Federal, state and local withholding tax, if any, due upon the exercise

of any Option, may be paid in shares of Common Stock (including the withholding

of shares subject to an Option), provided, however, that the total tax

withholding where stock is being used to satisfy such tax obligations cannot

exceed the Company&#146;s minimum statutory withholding obligations (based on

minimum statutory withholding rates for federal and state tax purposes,

including payroll taxes, that are applicable to such supplemental taxable income).</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">22.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Separability</u>.&#160;

If any part of the Plan is declared by any court or governmental

authority to be unlawful or invalid, such unlawfulness or invalidity shall not

invalidate any portion of the Plan not declared to be unlawful or invalid.&#160; Any Section or part of a Section so declared

to be unlawful or invalid shall, if possible, be construed in a manner which

will give effect to the terms of such Section or part of a Section to the

fullest extent possible while remaining lawful and valid.</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Non-Exclusivity of the Plan</u>.&#160; Neither the adoption of the Plan by the

Board of Directors nor the submission of the Plan to the stockholders of the

Company for approval shall be construed as creating any limitation on the power

of the Board of Directors to adopt such other incentive arrangements as it may

deem desirable, including, without limitation, the granting of stock options

and the awarding of stock and cash otherwise than under the Plan, and such

arrangements may be either generally applicable or applicable only in specific

cases.</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">24.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Exclusion from Pension and Profit-Sharing Computation</u>.&#160; By acceptance of an Option, each Optionee

shall be deemed to have agreed that such grant is special incentive

compensation that will not be taken into account, in any manner, as salary,

compensation or bonus in determining the amount of any payment under any

pension, retirement or other employee benefit plan of the Company or any of its

affiliates.&#160; In addition, such Option

will not affect the amount of any life insurance coverage, if any, provided by

the Company on the life of the Optionee.</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">25.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Governing Law</u>.&#160;

The Plan shall be governed by, and construed in accordance with, the

laws of the State of Delaware.</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">AMENDMENT NO. 1 TO THE</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EXE TECHNOLOGIES, INC.</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">STOCK OPTION PLAN FOR

NON-EMPLOYEE DIRECTORS</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Section 3 of the EXE

Technologies, Inc. Stock Option Plan for Non-Employee Directors (the &#147;Plan&#148;) is

hereby amended to increase the number of shares of Common Stock available for

issuance thereunder from 300,000 shares to 600,000 shares.</font></p>



<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Adopted by the Board of

Directors</font></p>



<p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">on April 4, 2002</font></p>



<p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Adopted by the Stockholders</font></p>



<p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">on May 30, 2002</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>



<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9</font></p>





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