exv10w2



 



EXHIBIT 10.2


WINLAND ELECTRONICS, INC.

1997 EMPLOYEE STOCK PURCHASE PLAN

(As Amended June 17, 2002)



ARTICLE I — ESTABLISHMENT OF PLAN




	 	 	 
	1.01	 	
Adoption by Board of Directors. By action of the Board of Directors of
Winland Electronics, Inc. (the “Corporation”) on December 16, 1996,
subject to approval by its shareholders, the Corporation has adopted an
employee stock purchase plan pursuant to which eligible employees of the
Corporation and certain of its Subsidiaries may be offered the opportunity
to purchase shares of Stock of the Corporation. The terms and conditions
of this Plan are set forth in this plan document, as amended from time to
time as provided herein. The Corporation intends that the Plan shall
qualify as an “employee stock purchase plan” under Section 423 of the
Internal Revenue Code of 1986, as amended from time to time, (the “Code”)
and shall be construed in a manner consistent with the requirements of
Code Section 423 and the regulations thereunder.
	 	 	 
	1.02	 	
Shareholder Approval and Term. This Plan shall become effective upon its
adoption by the Board of Directors and shall terminate December 31, 2007;
provided, however, that the Plan shall be subject to approval by the
shareholders of the Corporation within twelve (12) months after the Plan
is adopted by the Board in the manner provided under Code Section 423 and
the regulations thereunder; and provided, further that the Board of
Directors may extend the term of the Plan for such period as the Board, in
its sole discretion, deems advisable. In the event the shareholders fail
to approve the Plan within twelve (12) months after the Plan is adopted by
the Board, this Plan shall not become effective and shall have no force
and effect, participation in the Plan shall immediately cease and all
outstanding options shall immediately be cancelled. No shares of stock
shall be issued to any Participant for any Phase unless and until the
shareholders approve the Plan within such twelve-month period.



ARTICLE II — PURPOSE




	 	 	 
	2.01	 	
Purpose. The primary purpose of the Plan is to provide an opportunity
for Eligible Employees of the Corporation to become shareholders of the
Corporation, thereby providing them with an incentive to remain in the
Corporation’s employ, to improve operations, to increase profits and to
contribute more significantly to the Corporation’s success.



 






 



ARTICLE III — DEFINITIONS




	 	 	 
	3.01	 	
“Administrator” means the Board of Directors or such Committee appointed
by the Board of Directors to administer the Plan. The Board or the
Committee may, in its sole discretion, authorize the officers of the
Corporation to carry out the day-to-day operation of the Plan. In its
sole discretion, the Board may take such actions as may be taken by the
Administrator, in addition to those powers expressly reserved to the Board under this Plan.
	 	 	 
	3.02	 	
“Board of Directors” or “Board” means the Board of Directors of Winland
Electronics, Inc.
	 	 	 
	3.03	 	
“Compensation” means the Participant’s base compensation, excluding
commissions, overtime and all bonuses.
	 	 	 
	3.04	 	
“Corporation” means Winland Electronics, Inc., a Minnesota corporation.
	 	 	 
	3.05	 	
“Eligible Employee” means any employee who, as determined on or
immediately prior to an Enrollment Period, is a United States full-time or
part-time employee of the Corporation or one of its Subsidiaries.
	 	 	 
	3.06	 	
“Enrollment Period” means the period determined by the Administrator for
purposes of accepting elections to participate during a Phase from
Eligible Employees.
	 	 	 
	3.07	 	
“Fiscal Year” means the fiscal year of the Corporation, which is the
twelve-month period beginning January 1 and ending December 31 each year.
	 	 	 
	3.08	 	
“Participant” means an Eligible Employee who has been granted an option
and is participating during a Phase through payroll deductions, but shall
exclude those employees subject to the limitations described in Section
9.03 below.
	 	 	 
	3.09	 	
“Phase” means the period beginning on the date that the option was
granted, otherwise referred to as the commencement date of the Phase, and
ending on the date that the option was exercised, otherwise referred to as
the termination date of the Phase.
	 	 	 
	3.10	 	
“Plan” means the Winland Electronics, Inc. 1997 Employee Stock Purchase
Plan.
	 	 	 
	3.11	 	
“Stock” means the voting common stock of the Corporation.
	 	 	 
	3.12	 	
“Subsidiary” means any corporation defined as a subsidiary of the
Corporation in Code Section 424(f) as of the effective date of the Plan,
and such other corporations that qualify as subsidiaries of the
Corporation under Code Section 424(f) as the Board approves to participate
in this Plan from time to time.



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ARTICLE IV — ADMINISTRATION




	 	 	 
	4.01	 	
Administration. Except for those matters expressly reserved to the Board
pursuant to any provisions of the Plan, the Administrator shall have full
responsibility for administration of the Plan, which responsibility shall
include, but shall not be limited to, the following:




	 	 	 	 	 
	 	 	
(a)
	 	The Administrator shall, subject to
the provisions of the Plan, establish, adopt and revise
such rules and procedures for administering the Plan,
and shall make all other determinations as it may deem
necessary or advisable for the administration of the
Plan;
	 	 	 	 	 
	 	 	
(b)
	 	The Administrator shall, subject to
the provisions of the Plan, determine all terms and
conditions that shall apply to the grant and exercise of
options under this Plan, including, but not limited to,
the number of shares of Stock that may be granted, the
date of grant, the exercise price and the manner of
exercise of an option. The Administrator may, in its
discretion, consider the recommendations of the
management of the Corporation when determining such
terms and conditions;
	 	 	 	 	 
	 	 	
(c)
	 	The Administrator shall have the
exclusive authority to interpret the provisions of the
Plan, and each such interpretation or determination
shall be conclusive and binding for all purposes and on
all persons, including, but not limited to, the
Corporation and its Subsidiaries, the shareholders of
the Corporation and its Subsidiaries, the Administrator,
the directors, officers and employees of the Corporation
and its Subsidiaries, and the Participants and the
respective successors-in-interest of all of the
foregoing; and
	 	 	 	 	 
	 	 	
(d)
	 	The Administrator shall keep minutes
of its meetings or other written records of its
decisions regarding the Plan and shall, upon requests,
provide copies to the Board.



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ARTICLE V — PHASES OF THE PLAN




	 	 	 
	5.01	 	
Phases. The Plan shall be carried out in one or more Phases of six (6)
months each. Unless otherwise determined by the Administrator, in its
discretion, Phases shall commence on January 1 and July 1 of each fiscal
year during the term of the Plan, with the first phase commencing on
January 1, 1997 and ending on June 30, 1997. No two Phases shall run
concurrently.
	 	 	 
	5.02	 	
Limitations. The Administrator may, in its discretion, limit the number
of shares available for option grants during any Phase as it deems
appropriate. Without
limiting the foregoing, in the event all of the shares of Stock
reserved for the grant of options under Section 12.01 is issued
pursuant to the terms hereof prior to the commencement of one or
more Phases or the number of shares of Stock remaining is so small,
in the opinion of the Administrator, as to render administration of
any succeeding Phase impracticable, such Phase or Phases may be
cancelled or the number of shares of Stock limited as provided
herein. In addition, if, based on the payroll deductions
authorized by Participants at the beginning of a Phase, the
Administrator determines that the number of shares of Stock which
would be purchased at the end of a Phase exceeds the number of
shares of Stock remaining reserved under Section 12.01 hereof for
issuance under the Plan, or if the number of shares of Stock for
which options are to be granted exceeds the number of shares
designated for option grants by the Administrator for such Phase,
then the Administrator shall make a pro rata allocation of the
shares of Stock remaining available in as nearly uniform and
equitable a manner as the Administrator shall consider practicable
as of the commencement date of the Phase or, if the Administrator
so elects, as of the termination date of the Phase. In the event
such allocation is made as of the commencement date of a Phase, the
payroll deductions which otherwise would have been made on behalf
of Participants shall be reduced accordingly.



ARTICLE VI — ELIGIBILITY




	 	 	 
	6.01	 	
Eligibility. Each employee who is an Eligible Employee on or immediately
prior to the commencement of a Phase shall be eligible to participate in
such Phase.



ARTICLE VII — PARTICIPATION




	 	 	 
	7.01	 	
Participation. Participation in the Plan is voluntary. An Eligible
Employee who desires to participate in any Phase of the Plan must complete
the Plan enrollment form provided by the Administrator and deliver such
form to the Administrator or its designated representative during the
Enrollment Period established by the Administrator prior to the
commencement date of the Phase.



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	7.02	 	
Subsequent Phases. An Eligible Employee who elects to participate in a
Phase of a fiscal year shall be deemed to have elected to participate in
each subsequent Phase during that fiscal year and all subsequent fiscal
years unless such Participant elects to discontinue payroll deductions
during a Phase or exercises his or her right to withdraw amounts
previously withheld, as provided under Article 10 hereof. In such event,
such Participant must complete a change of election form or a new Plan
enrollment form and file such form with the Administrator during the
Enrollment Period prior to the next Phase with respect to which the
Eligible Employee wishes to participate.



ARTICLE VIII — PAYMENT: PAYROLL DEDUCTIONS




	 	 	 
	8.01	 	
Enrollment. Each Eligible Employee electing to participate shall
indicate such election on the Plan enrollment form and designate therein a
dollar amount to be deducted from such Participant’s Compensation during
each pay period during the Phase; provided, however, that the payroll
deduction authorized by the Participant must equal or exceed $10 per
paycheck. The payroll deductions during a Phase shall not equal more than
fifteen percent (15%) of such Participant’s Compensation to be paid during
such Phase, or such other maximum percentage as the Administrator may
establish from time to time. In order to be effective, such Plan
enrollment form must be properly completed and received by the
Administrator by the due date indicated on such form, or by such other
date established by the Administrator.
	 	 	 
	8.02	 	
Payroll Deductions. Payroll deductions for a Participant shall commence
with the paycheck issued for the first payroll period that begins
immediately after the commencement date of the Phase and shall terminate
with the paycheck issued for the last payroll period that begins
immediately prior to the termination date of that Phase, unless the
Participant elects to discontinue payroll deductions or exercises his or
her right to withdraw all accumulated payroll deductions previously
withheld during the Phase as provided in Article 10 hereof. The
authorized payroll deductions shall be made over the pay periods of such
Phase by deducting from the Participant’s Compensation for each such pay
period that dollar amount specified by the Participant in the Plan
enrollment form.
	 	 	 
	 	 	
Unless the Participant elected to discontinue payroll deductions or
exercised his or her right to withdraw all accumulated payroll
deductions previously withheld during the preceding Phase (in which
event the Participant must complete a change of election form or a
new Plan enrollment form, as the case may be, to continue
participation for any subsequent Phase), the Corporation shall
continue to withhold from such Participant’s Compensation the same
designated dollar amount specified by the Participant in the most
recent Plan enrollment form previously completed by the Participant
for all subsequent Phases; provided, however, that the Participant



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may, if he or she so chooses, discontinue payroll deductions for
any or all such subsequent Phases by properly completing a new
enrollment form during the Enrollment Period for such subsequent
Phase and delivering such form to the Administrator by the due date
for receipt of such forms for that Phase.
	 	 	 
	8.03	 	
Change in Compensation During a Phase. In the event that the
Participant’s Compensation is increased or decreased during a Phase for
any reason so that the amount actually withheld on behalf of the
Participant as of the termination date of the Phase is different from the

amount anticipated to be withheld as determined on the commencement date
of the Phase, then the extent to which the Participant may exercise his or
her option shall be based on the amounts actually withheld on his or her
behalf, subject to the limitations in Article IX. In the event of a
change in the pay period of any Participant, such as from biweekly to monthly, an
appropriate adjustment shall be made to the deduction in each new
pay period so as to insure the deduction of the proper amount
authorized by the Participant.



ARTICLE IX — OPTIONS




	 	 	 
	9.01	 	
Grant of Option. Subject to Article 10, a Participant who has elected to
participate in the manner described in Article VIII and who is employed by
the Corporation or a Subsidiary as of the commencement date of a Phase
shall be granted an option as of such date to purchase that number of
whole shares of Stock determined by dividing the total amount to be
credited to the Participant’s account by the option price per share set
forth in Section 9.02(a) below. The option price per share for such Stock
shall be determined under Section 9.02 hereof, and the number of shares
exercisable shall be determined under Section 9.03 hereof.
	 	 	 
	9.02	 	
Option Price. Subject to the limitations hereinbelow, the option price
for such Stock shall be the lower of the amounts determined under
paragraphs (a) and (b) below:




		
	 	(a)     Eighty-five percent (85%) of the closing price for a
share of the Corporation’s Stock as reported on the NASDAQ
National Market, NASDAQ SmallCap Market or on an established
securities exchange as of the commencement date of the Phase;
or
	 	      
	 	(b)     Eighty-five percent (85%) of the closing price for a
share of the Corporation’s Stock as reported on the NASDAQ
National Market, NASDAQ SmallCap Market or on an established
securities exchange as of the termination date of the Phase.




	 	 	 
	 	 	In the event that the commencement or termination date of a Phase
is a Saturday, Sunday or holiday, the amounts determined under the
foregoing subsections shall be determined using the price as of the
last preceding trading day.



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	 	 	If the Corporation’s Stock is not so reported in the NASDAQ
National Market, NASDAQ SmallCap Market or upon an established
securities exchange, the option price shall equal the lesser of (i)
eighty-five percent (85%) of the average of the closing “bid” and
“asked” prices quoted on the National Quotation Bureau, Inc. (or
any comparable reporting service) as of the commencement date of
the Phase, or if there are no such quoted “bid” and “asked” prices
on such date, on the next preceding date for which there are
quotes, and (ii) eighty-five percent (85%) of the average of the
closing “bid” and “asked” prices quoted on the National Quotation
Bureau, Inc. (or any comparable reporting service) as of the
termination date of the phase, or if there are no such quoted “bid”
and “asked” prices on such date, on the next preceding date for
which there are such quotes.


If the Corporation’s Stock is not reported on an established
securities exchange, the NASDAQ National Market, the NASDAQ
SmallCap Market or the National Quotation Bureau, Inc. (or any
comparable reporting service), then the option price shall equal
the lesser of (i) eighty-five percent (85%) of the fair market
value of a share of the Corporation’s Stock as of the commencement
date of the Phase, and (ii) eighty-five percent (85%) of the fair
market value of such stock as of the termination date of the Phase.
Such “fair market value” shall be determined by the Board.




	 	 	 
	9.03	 	
Limitations. No employee shall be granted an option hereunder:




		
	 	(a)     Which permits his or her rights to purchase Stock under
all employee stock purchase plans of the Corporation or its
Subsidiaries to accrue at a rate which exceeds Twenty-Five
Thousand Dollars ($25,000) of fair market value of such Stock
(determined at the time such option is granted) for each
calendar year in which such option is outstanding at any
time;
	 
	 	(b)     If such employee would own and/or hold, immediately after
the grant of the option, Stock possessing five percent (5%)
or more of the total combined voting power or value of all
classes of stock of the Corporation or of any Subsidiary.
For purposes of determining stock ownership under this
paragraph, the rules of Section 424(d) of the Code shall
apply.
	 
	 	(c)     Which, if exercised, would cause the limits established
by the Administrator under Section 5.02 to be exceeded.




	 	 	 
	9.04	 	
Exercise of Option. Subject to a Participant’s right to withdraw in the
manner provided in Section 10.01, a Participant’s option for the purchase
of shares of Stock will be exercised automatically on the termination date
of that Phase. However, in no event shall a Participant be allowed to
exercise an option for more shares of Stock than can be purchased with the
payroll deductions accumulated by the Participant in his or her
bookkeeping account during such Phase.



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	9.05	 	
Delivery of Shares. As promptly as practicable after the termination of
any Phase, the Corporation’s transfer agent or other authorized
representative shall deliver to each Participant herein certificates for
that number of whole shares of Stock purchased upon the exercise of the
Participant’s option. Any accumulated payroll deductions remaining after
the exercise of the Participant’s option pursuant to Section 9.04 above
shall remain credited to the Participant’s bookkeeping account and applied
to the purchase of shares of Stock in the next succeeding Phase, unless
the Participant requests a withdrawal of such amount pursuant to Section
10.01. The shares of the Corporation’s common stock to be delivered to a
Participant pursuant to the exercise of an option under Section 9.04 of
the Plan will be registered in the name of the Participant.



ARTICLE X — WITHDRAWAL OR

DISCONTINUATION OF PAYROLL WITHHOLDINGS




	 	 	 
	10.01	 	
Withdrawal. A Participant may request a withdrawal of all accumulated
payroll deductions then credited to the Participant’s bookkeeping account
by completing a change of election form and filing such form with the
Administrator. The Participant’s request shall be effective as of the
beginning of the next payroll period immediately following the date that
the Administrator receives the Participant’s properly completed change of
election form. As soon as administratively feasible after the end of that
Phase, all payroll deductions credited to a bookkeeping account for the
Participant will be paid to such Participant and no further payroll
deductions will be made during that Phase or any future Phase unless the
Participant completes a new Plan enrollment form as provided in Section
8.02 above. If the Participant requests a withdrawal, the option granted
to the Participant under that Phase of the Plan shall immediately lapse
and shall not be exercisable. Partial withdrawals of payroll deductions
are not permitted.
	 	 	 
	 	 	
Notwithstanding the foregoing, in order to be effective for a
particular Phase, the Participant’s request for withdrawal must be
properly completed and received by the Administrator on or before
the date that is fifteen (15) days before the date of the last
paycheck during the Phase, or on or before such other date
established by the Administrator. Requests for withdrawal that are
received after that due date shall not be effective and no
withdrawal shall be made, unless otherwise determined by the
Administrator.
	 	 	 
	10.02	 	
Discontinuation. A Participant may also request that the Administrator
discontinue any further payroll deductions that would otherwise be made
during the remainder of the Phase by completing a change of election form
and filing such form with the Administrator on or before the date that is
fifteen (15) days before the date of the last paycheck during the phase,
or on or before such other date established by the



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Administrator. The
Participant’s request shall be effective as of the beginning of the next
payroll period immediately following the date that the Administrator
receives the Participant’s properly completed change of election form.
Upon the effective date of the Participant’s request, the Corporation will
discontinue making payroll deductions for such Participant for that Phase,
and all future Phases, unless the Participant completes another change of
election form as provided above.



ARTICLE XI — TERMINATION OF EMPLOYMENT




	 	 	 
	11.01	 	
Termination. If, on or before the termination date of any Phase, a
Participant’s employment terminates with the Corporation for any reason,
voluntarily or involuntarily, including by reason of retirement or death,
the payroll deductions credited to such Participant’s bookkeeping account
for such Phase, if any, will be returned to the Participant and any
options granted to such Participant under the Plan shall immediately lapse
and shall not be exercisable. The return of such payroll deductions shall
be made to the Participant as soon as administratively practicable
following the end of the Phase in which the Participant’s termination
occurred. In the event that such termination occurs near the end of a
Phase and the Corporation is unable to discontinue payroll deductions for
such Participant for his or her final paycheck(s), such deductions shall
still be made but shall be returned to the Participant as provided herein.
In no event shall the accumulated payroll deductions be used to purchase
any shares of Stock.
	 	 	 
	 	 	
If the option lapses as a result of the Participant’s death, any
accumulated payroll deductions credited to the Participant’s
bookkeeping account will be paid to the Participant’s estate. In
the event a Participant dies after exercise of the Participant’s
option but prior to delivery of the Stock to be transferred
pursuant to the exercise of the option under Section 9.04 above,
any such Stock and/or accumulated payroll deductions remaining
after such exercise shall be paid by the Corporation to the
Participant’s estate.
	 	 	 
	 	 	
The Corporation will not be responsible for or be required to give
effect to the disposition of any cash or Stock or the exercise of
any option in accordance with any will or other testamentary
disposition made by such Participant or in accordance with the
provisions of any law concerning intestacy, or otherwise. No
person shall, prior to the death of a Participant, acquire any
interest in any Stock, in any option or in the cash credited to the
Participant’s bookkeeping account during any Phase of the Plan.
	 	 	 
	11.02	 	
Subsidiaries. In the event that any Subsidiary ceases to be a
Subsidiary of the Corporation, the employees of such Subsidiary shall be
considered to have terminated their employment for purposes of Section
11.01 hereof as of the date the Subsidiary ceased to be a Subsidiary of
the Corporation.



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ARTICLE XII — STOCK RESERVED FOR OPTIONS




	 	 	 
	12.01	 	
Shares Reserved. One Hundred Thousand (100,000) shares of Stock, which
may be authorized but unissued shares of the Corporation (or the number
and kind of securities to which said 100,000 shares may be adjusted in
accordance with Section 14.01 hereof) are reserved for issuance upon the
exercise of options to be granted under the Plan. Shares subject to the
unexercised portion of any lapsed or expired option may again be subject
to option under the Plan.
	 	 	 
	12.02	 	
Rights as Shareholder. The Participant shall have no rights as a
shareholder with respect to any shares of Stock subject to the
Participant’s option until the date of the issuance of a stock certificate
evidencing such shares as provided in Section 9.05. No adjustment shall
be made for dividends (ordinary or extraordinary, whether in cash,
securities or other property), distributions or other rights for which the
record date is prior to the date such stock certificate is actually
issued, except as otherwise provided in Section 14.01 hereof.



ARTICLE XIII — ACCOUNTING AND USE OF FUNDS




	 	 	 
	13.01	 	
Bookkeeping Account. Payroll deductions for Participants shall be
credited to bookkeeping accounts, established by the Corporation for each
such Participant under the Plan. A Participant may not make any cash
payments into such account. Such account shall be solely for bookkeeping
purposes and shall not require the Corporation to establish any separate
fund or trust hereunder. All funds from payroll deductions received or
held by the Corporation under the Plan may be used, without limitation,
for any corporate purpose by the Corporation, which shall not be obligated
to segregate such funds from its other funds.



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ARTICLE XIV — ADJUSTMENT PROVISION




	 	 	 
	14.01	 	
General. Subject to any required action by the shareholders of the
Corporation, in the event of an increase or decrease in the number of
outstanding shares of Stock or in the event the Stock is changed into or
exchanged for a different number or kind of shares of stock or other
securities of the Corporation or another corporation by reason of a
reorganization, merger, consolidation, divestiture (including a spin-off),
liquidation, recapitalization, reclassification, stock dividend, stock
split, combination of shares, rights offering or any other change in the
corporate structure or shares of the Corporation, the Board (or, if the
Corporation is not the surviving corporation in any such transaction, the
board of directors of the surviving corporation), in its sole discretion,
shall adjust the number and kind of securities subject to and reserved
under the Plan and, to prevent the dilution or enlargement of rights of
those Eligible Employees to whom options have been granted, shall adjust
the number and kind of securities subject to such outstanding options and,
where applicable, the exercise price per share for such securities.
	 	 	 
	 	 	
In the event of sale by the Corporation of substantially all of its
assets and the consequent discontinuance of its business, or in the
event of a merger, exchange, consolidation, reorganization,
divestiture (including a spin-off), liquidation, reclassification
or extraordinary dividend (collectively referred to as a
“transaction”), after which the Corporation is not the surviving
corporation, the Board may, in its sole discretion, at the time of
adoption of the plan for such transaction, may provide for one or
more of the following:




	 	 	 	 	 
	 	 	
(a)
	 	The acceleration of the exercisability of outstanding options granted at the
commencement of the Phase then in effect, to the extent
of the accumulated payroll deductions made as of the
date of such acceleration pursuant to Article 8 hereof;
	 	 	 	 	 
	 	 	
(b)
	 	The complete termination of this Plan
and a refund of amounts credited to the Participants’
bookkeeping accounts hereunder; or
	 	 	 	 	 
	 	 	
(c)
	 	The continuance of the Plan only with
respect to completion of the then current Phase and the
exercise of options thereunder. In the event of such
continuance, Participants shall have the right to
exercise their options as to an equivalent number of
shares of stock of the corporation succeeding the
Corporation by reason of such transaction.




	 	 	 
	 	 	In the event of a transaction where the Corporation survives, then
the Plan shall continue in effect, unless the Board takes one or
more of the actions set forth above. The grant of an option
pursuant to the Plan shall not limit in any way the right or power
of the Corporation to make adjustments, reclassifications,
reorganizations or
changes in its capital or business structure or to merge, exchange
or consolidate or to dissolve, liquidate, sell or transfer all or
any part of its business or assets.



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ARTICLE XV — NONTRANSFERABILITY OF OPTIONS




	 	 	 
	15.01	 	
Nontransferability. Options granted under any Phase of the Plan shall
not be transferable and shall be exercisable only by the Participant
during the Participant’s lifetime.
	 	 	 
	15.02	 	
Nonalienation. Neither payroll deductions granted to a Participant’s
account, nor any rights with regard to the exercise of an option or to
receive Stock under any Phase of the Plan may be assigned, transferred,
pledged or otherwise disposed of in any way by the Participant. Any such
attempted assignment, transfer, pledge or other disposition shall be null
and void and without effect, except that the Corporation may, at its
option, treat such act as an election to withdraw in accordance with
Section 10.01.



ARTICLE XVI — AMENDMENT AND TERMINATION




	 	 	 
	16.01	 	
General. The Plan may be terminated at any time by the Board of
Directors, provided that, except as permitted in Section 14.01 hereof, no
such termination shall take effect with respect to any options then
outstanding. The Board may, from time to time, amend the Plan as it may
deem proper and in the best interests of the Corporation or as may be
necessary to comply with Code Section 423, as amended, and the regulations
thereunder, or other applicable laws or regulations; provided, however, no
such amendment shall, without the consent of a Participant, materially
adversely affect or impair the right of a Participant with respect to any
outstanding option; and provided, further, that no such amendment shall:




	 	 	 	 	 
	 	 	
(a)
	 	increase the total number of shares
for which options may be granted under the Plan (except
as provided in Section 14.01 herein);
	 	 	 	 	 
	 	 	
(b)
	 	modify the group of Subsidiaries
whose employees may be eligible to participate in the
Plan or materially modify any other requirements as to
eligibility for participation in the Plan; or
	 	 	 	 	 
	 	 	
(c)
	 	materially increase the benefits
accruing to Participants under the Plan;




	 	 	 
	 	 	without the approval of the Corporation’s shareholders, if such
approval is required for compliance with Code Section 423, as
amended, and the regulations thereunder, or other applicable laws
or regulations.



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ARTICLE XVII — NOTICES




	 	 	 
	17.01	 	
General. All notices, forms, elections or other communications in
connection with the Plan or any Phase thereof shall be in such form as
specified by the Corporation or the Administrator from time to time, and
shall be deemed to have been duly given when received by the Participant
or his or her personal representative or by the Corporation or its
designated representative, as the case may be.




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