Document:

<PAGE>
                                                                   EXHIBIT 10.17

               LICENSOR'S CONSENT TO ASSIGNMENT OF LICENSE BETWEEN
                         CARESCIENCE, INC., ("ASSIGNOR")
                                       AND
                           QUOVADX, INC. ("ASSIGNEE")

         3550 University City Science Center Associates ("Licensor"), the
Licensor in connection with that certain License Agreement between Licensee and
Assignor as Licensee dated July 20, 2001 (the "License") pursuant to which
Licensor licensed to Assignor certain office space located in the building known
as 3550 Market Street, Philadelphia, Pennsylvania (the "Building") containing
approximately 831 square feet of office space on the second floor of the
Building as more fully described in the License (the "Licensed Premises") hereby
consents to the Assignment of the License from Assignor to Assignee (the
"Assignment") to be effectuated by merger of the Assignor and Assignee pursuant
to that certain Agreement and Plan of Merger among Assignor, Assignee and
Carlton Acquisition Corp. dated as of August 13, 2003 (the "Assignment") upon
the following conditions:

         1.       This consent to the Assignment is executed by Licensor only to
                  evidence Licensor's consent to the Assignment of the Licensed
                  Premises and the conditions related to such consent and for no
                  other purpose.

         2.       Assignee agrees to be bound by all of the terms and conditions
                  of the License from and after the date of the Assignment.
                  Further, Assignee agrees to perform all of the duties and
                  obligations of Assignor under the License from and after the
                  date of the Assignment.

         3.       Assignor shall have performed all of its obligations to
                  Licensor up to and including the date of the Assignment.
                  Assignee shall perform all of the duties and obligations as
                  Licensee under the License after the date of the Assignment.

         4        Provided that: (i) Assignor has performed all of its
                  obligations and duties to Licensor arising under the License
                  up to and including the date of the Assignment and (ii)
                  Assignee has assumed all of the duties and obligations of
                  Assignor under the License after the date of the Assignment,
                  Licensor hereby agrees to release Assignor from its further
                  duties and obligations under the License.

         5.       Nothing contained in this consent to Assignment shall be
                  construed to otherwise modify the rights and obligations of
                  the parties under the License.

         6.       Licensor has fully performed all obligations owed to Assignor
                  or Assignee as of the date of this consent to Assignment.

<PAGE>

         7        Except for the assignment between Assignor and Assignee, the
                  License remains unmodified and in full force and effect.

         8.       The date of the Assignment pursuant to the merger of the
                  Assignor and Assignee is September 18, 2003.

         9.       The parties acknowledge and agree that the License erroneously
                  referred to "University City Science Center" as the Licensor.
                  The correct name of the Licensor is acknowledged and agreed to
                  be "3550 University City Science Center Associates".

         UNIVERSITY CITY SCIENCE CENTER

By: /s/ JILL FELIX
    -----------------------------------
Its: President & CEO
     ----------------------------------
Date: 9-15-03
      ---------------------------------

3550 UNIVERSITY CITY SCIENCE CENTER ASSOCIATES

By: University City Science Center, its General Partner

By: /s/ JILL FELIX
    -----------------------------------
Its: President & CEO
     ----------------------------------
Date: 9-15-03
      ---------------------------------

Signature continued on next page

<PAGE>

ACCEPTED AND AGREED TO BY ASSIGNOR AND ASSIGNEE:

          ASSIGNOR:

          CARESCIENCE, INC.

          By: /s/ GARY T. SCHERPING
              -----------------------------------
          Its: VICE PRESIDENT
               ----------------------------------
          Date: 2-9-04
                ---------------------------------

          ASSIGNEE:

          QUOVADX, INC.

          By: /s/ GARY T. SCHERPING
              -----------------------------------
          Its:  Gary T. Scherping
                EVP, Finance and CFO
                ---------------------------------
          Date: 2-9-04
                ---------------------------------exv10w25

 

Exhibit 10.25

AMENDMENT TO EMPLOYMENT AGREEMENT

     This Amendment to Employment Agreement is effective as of June 1, 2001
between Winland Electronics, Inc., a Minnesota Corporation (the “Corporation”),
and Lorin E. Krueger (“Employee”).

RECITALS

     A. The Corporation and Employee are parties to an Employment Agreement
dated January 1, 1999 (the “Employment Agreement”) which provides at Section
2.1 that the Employee shall be employed as President and Chief Operating
Officer of the Corporation.

     B. Effective June 1, 2001, the Corporation asked Employee to serve as the
Corporation’s President and Chief Executive Officer and assume the duties
associated with such positions and Employee accepted the Corporation’s offer.

     C. The Corporation and Employee wish to amend the Employment Agreement to
clarify that Employee will no longer serve as the Chief Operating Officer of
the Corporation but, going forward under the Employment Agreement, will serve
as the President and Chief Executive Officer of the Corporation.

AGREEMENT

     NOW, THEREFORE, in consideration of the premises and of the mutual
covenants and agreements contained in this Amendment, the parties agree as
follows:

     1. Amendment. The first sentence of Section 2.1 of the Employment
Agreement is hereby amended to read as follows: “During the Initial Term,
Employee shall be employed as President and Chief Executive Officer of the
Corporation and/or such other positions to which the Board of Directors of the
Corporation may appoint Employee.”

     2. Other Terms. Except as provided in the immediately preceding
paragraph, all other terms of the Employment Agreement shall remain valid and
enforceable to the same extent as before this Amendment.

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and delivered as of the day and year first above written.

	 	 	 	 	 
	 	 	WINLAND ELECTRONICS, INC.
	 
	 	 	 	 
	

	 	By:
	 	/s/ S. Robert Dessalet
	

	 	 	 	
 
	 	 	Its: Chairman
	 
	 	 	 	 
	 	 	   Lorin E. Krueger
	 	 	
 
	 	 	Lorin E. Kruegerexv10w27

 

Exhibit 10.27

EMPLOYMENT AGREEMENT

     This Agreement is made effective as of this 24th day of October, 2003
between Winland Electronics, Inc., a Minnesota corporation (the “Corporation”),
and Jennifer A. Thompson (“Employee”).

R E C I T A L S:

     A. Employee is presently employed by the Corporation as Chief Financial
Officer of the Corporation.

     B. The Corporation believes Employee is valuable to the future growth of
the Corporation and its business.

     C. Employee and the Corporation desire to enter into an agreement to set
forth the relationship between the parties.

     D. The Corporation has agreed to grant to Employee a stock option for the
purchase of 10,000 shares of the Corporation’s Common Stock which shall be set
forth in a separate stock option agreement executed by Employee and
Corporation, and make Employee eligible for severance payments as provided
herein, as consideration for entering into this Agreement and in particular the
noncompetition and other restrictions contained in provisions of Article 5.

AGREEMENTS

     NOW, THEREFORE, in consideration of the premises and of the mutual
covenants and agreements contained in this Agreement, the parties agree as
follows:

ARTICLE 1

EMPLOYMENT; TERM OF EMPLOYMENT

     1.1) Employment. The Corporation hereby employs Employee and Employee
hereby accepts employment upon the terms and conditions hereinafter set forth.

     1.2) Term. Employee’s employment with the Corporation shall be “at will,”
meaning either Employee or the Corporation may terminate the employment
relationship at any time, for any or no reason.

ARTICLE 2

DUTIES; EXTENT OF SERVICES

     2.1) Duties. During her employment with the Corporation, Employee shall
serve the Corporation faithfully and to the best of her ability. Except as
approved in writing by the Board of Directors or its designees, which approval
shall not be unreasonably withheld, Employee shall

 

 

devote her full business and
professional time, energy, and diligence to the performance of the duties of
such office. Employee shall perform such duties for the Corporation (i) as are
customarily incident to her office and (ii) as may be assigned or delegated to
her from time to time by the Board of Directors of the Corporation, the
Corporation’s President and Chief Executive Officer, or its/his designees.
During her employment with the Corporation, Employee shall not engage in any
other business activity that would conflict or interfere with her ability to
perform her duties under this Agreement. Employee shall use her best efforts
to promote the interests of the Corporation.

     2.2) Compliance with Rules: Authority. Employee agrees to be subject to
the Corporation’s control, rules, regulations, policies and programs. Employee
further agrees that she shall carry on all correspondence, publicity and
advertising in the Corporation’s name and she shall not enter into any contract
on behalf of the Corporation except as expressly authorized by the Corporation.

ARTICLE 3

COMPENSATION

     3.1) Base Salary. For each fiscal year of the Corporation during
Employee’s employment, the Corporation shall pay Employee an annual base salary
(“Base Salary”) in the amount determined by the Corporation’s President and
Chief Executive Officer. The Base Salary shall be payable in accordance with
the Corporation’s normal payroll schedule and shall be less any applicable
withholding taxes and FICA contributions.

     3.2) Bonus. During Employee’s employment, the Corporation may, but is not
obligated to, pay Employee an annual bonus (the “Annual Bonus”) consisting of
stock options or a cash payment or both, the amounts of which, if any, shall be
determined by the Corporation’s President and Chief Executive Officer. If any
Annual Bonus is earned by Employee, it shall be paid within ninety (90) days
after the end of the Corporation’s applicable fiscal year, less applicable
withholding taxes and FICA contributions, provided Employee remains employed by
the Corporation at the time of payment.

     3.3) Benefits. During Employee’s employment, Employee shall be eligible,
at the Corporation’s expense, to participate in and to be covered by, each life
insurance, accident insurance, health insurance, disability insurance,
hospitalization or other plan, effective with respect to other officers of the
Corporation when Employee is eligible under the terms of any such plan, on the
same basis as shall be available to other officers of the Corporation. The
Corporation shall have the right to change the terms of, or eliminate, any such
plan in its discretion from time to time, provided it does so on an equal basis
for all covered employees. The Corporation shall provide Employee with such
increases, if any, to such benefits as are given to other officers of the
Corporation. Upon termination of this Agreement, Employee shall have the right
to purchase at fair market value all policies of insurance which insure her
life and are owned by the Corporation or any subsidiary of the Corporation.

     3.4) Business Expenses. During Employee’s employment, the Corporation
shall reimburse Employee for all ordinary and necessary business expenses
incurred by Employee in connection with the business of the Corporation and its
subsidiaries and consistent with the

2

 

Corporation’s policies in effect from time
to time with respect to travel, entertainment and other business expenses.
Payment or reimbursement to Employee shall be made upon submission by Employee
of vouchers, receipts or other evidence and documentation of such expense in a
form reasonably satisfactory to the Corporation and in compliance with
applicable requirements of taxing authorities. In the event the Corporation’s
President and Chief Executive Officer requests the services of Employee outside
the Mankato area, the Corporation shall reimburse Employee for her reasonable
transportation, lodging, and meal expense incurred in compliance with such
request.

ARTICLE 4

TERMINATION

     4.1) Termination. Either Employee or the Corporation may terminate the
employment relationship at any time, for any or no reason. Notwithstanding the
foregoing, Employee agrees to give the Corporation thirty (30) days’ written
notice of termination.

     4.2) Return of Property. Immediately upon termination (or at such earlier
time as requested by the Corporation’s President and Chief Executive Officer or
his designees), Employee shall deliver to the Corporation all of its property,
including but not limited to all work in progress, research data, equipment,
originals and copies of documents and software, customer information and lists,
financial information, and all other material in her possession or control that
belongs to the Corporation or its customers or contains Confidential
Information.

     4.3) Payment Upon Termination. Except as provided in Section 4.4 or
Article 6, after the effective date of termination, Employee shall not be
entitled to any compensation, benefits, or payments whatsoever except for
compensation earned through her last day of employment and any accrued
benefits.

     4.4) Severance. If (1) Employee is terminated by the Corporation without
Cause, or Employee terminates her employment for Good Reason, (2) such
termination is not a Change of Control Termination obligating the Corporation
to make a Change of Control Termination Payment in accordance with Article 6,
and (3) Employee executes a release of claims in a form supplied by the
Corporation, then the Corporation shall provide Employee with the severance
benefits described in this Section 4.4.

	a.	 	Termination by Employer with Cause. For purposes of
this Article 4, “Cause” shall be defined as:

	(1)	 	Employee’s neglect of any of her material
duties or her failure to carry out reasonable directives
from the Board of Directors, the Corporation’s President
and Chief Executive Officer, or its/his
designees or failure to comply with rules, regulations or
policies of the Corporation or its Board of Directors;
	 
	(2)	 	Any willful or deliberate misconduct that
is injurious to the Corporation, its business reputation
or its goodwill;

3

 

	(3)	 	dishonesty in any dealings between
Employee and the Corporation or between Employee and
vendors or customers of the Corporation;
	 
	(4)	 	Employee’s commission of a felony, or
other crime involving moral turpitude or immoral conduct,
whether or not against the Corporation and whether or not
committed during Employee’s employment;
	 
	(5)	 	Employee’s acting in a manner adverse to
the best interests of the Corporation, including being
under the influence of alcohol or illegal drugs while on
the job; or
	 
	(6)	 	Employee’s violation of any term of this
Agreement.

	b.	 	Termination by Employee for Good Reason. For
purposes of this Article 4, “Good Reason” shall be defined as:

	(1)	 	The assignment to Employee, without
Employee’s consent, of employment responsibilities that
are not of comparable responsibility and status to the
employment responsibilities described in this Agreement;
	 
	(2)	 	The Corporation’s reduction of Employee’s
base salary without Employee’s consent except for any
reduction implemented as part of a broad-based employee
cost reduction initiative; or
	 
	(3)	 	The Corporation’s failure to provide
Employee, without Employee’s consent, those employee
benefits specifically required by this Agreement.

	c.	 	Severance Benefits Upon Termination by the
Corporation Without Cause or Termination by Employee for Good
Reason. In the event that (1) Employee’s employment is
terminated by the Corporation without Cause or terminated by
Employee for Good Reason, and (2) Employee executes a release
of claims in a form supplied by the Corporation, then the
Corporation shall (i) pay Employee in a lump sum or at regular
payroll intervals, at the Corporation’s option, an amount equal
to six (6) months’ of Employee’s then current base salary,
subject to required and authorized deductions and withholdings;
and (ii) continue to pay the Corporation’s ordinary share of
premiums for three (3) calendar months for Employee’s COBRA
continuation coverage in the Corporation’s group medical,
dental, and life insurance plans (as applicable), provided
Employee elects such continuation coverage and timely pays
Employee’s share of such premiums, if any.

4

 

ARTICLE 5

RESTRICTION AGAINST COMPETITION; CONFIDENTIALITY

     5.1) Restriction Against Competition. Employee acknowledges that she is
being employed in a position of trust and confidence and will have access to
and become familiar with the unique methods, services and procedures used by
the Corporation and that as part of Employee’s duties, she will develop and
maintain close working relationships with vendors, customers and employees of
the Corporation and its subsidiaries. Employee further acknowledges that the
Corporation and its subsidiaries, over the years, through goodwill,
advertising, honest business methods and aggressive promotion, have built a
lucrative business and obtained loyal vendors and customers. Employee further
acknowledges that disclosure or use of any of the Corporation’s confidential or
proprietary information, trade secrets or other information relating to the
operation of the business of the Corporation or its subsidiaries could have a
serious detrimental effect upon the Corporation, the monetary loss from which
would be difficult, if not impossible, to measure. In consequence of the
foregoing, Employee agrees:

     (a) Noncompetition. During Employee’s employment and for a period of
two (2) years after termination of Employee’s employment, except if such
termination is pursuant to Article 6, Employee agrees to not directly or
indirectly plan, organize, participate in or engage in any business
competitive with any product or service marketed by the Corporation or any
of its subsidiaries, or conspire with others to do so, in the State of
Minnesota or any other state in which the Corporation or its subsidiaries
are located or have plans on the termination date to open a location.
Employee acknowledges that she shall be prevented from engaging in the
business as an individual, shareholder, owner, partner, director, officer,
employee, agent, consultant or salesman for any person, corporation,
partnership or other entity and agrees that she will not finance,
facilitate, promote or encourage any person to initiate or continue in the
prohibited business for the period provided.

     (b) Nonsolicitation of Customers. Employee agrees she will not,
during her employment and for a two-year period immediately following
termination of her employment hereunder, except if such termination is
pursuant to Article 6, attempt to divert any business of the Corporation
or its subsidiaries by soliciting, contacting, or communicating with any
customers of the Corporation or its subsidiaries with whom Employee, or
employees under her supervision, had contacts during the year preceding
termination of her employment or any persons or entities who might
reasonably be considered within the class of customers actively solicited
by the Corporation or its subsidiaries.

     (c) Nonsolicitation of Employees. Employee agrees she will not,
during her employment and for a two-year period immediately following
termination of her employment, except if such termination is pursuant to
Article 6, solicit any present or future employee of the Corporation or
its subsidiaries for any purpose of hiring or attempting to hire such
employee, nor will Employee in any manner attempt to persuade or encourage
any of the employees of the Corporation or its subsidiaries to discontinue
their employment with the Corporation or its subsidiaries.

5

 

     (d) Specific Performance and Injunctive Relief. Employee
acknowledges that the restrictions and covenants contained in this Article
5 are reasonable and necessary to protect the legitimate interests of the
Corporation. Employee understands and agrees that the remedies at law for
any violation of the restrictions or covenants by this Article may be
inadequate, that such violations may cause irreparable injury within a
short period of time and that the Corporation shall be entitled to
preliminary injunctive relief and other injunctive relief against such
violation or threatened violation without the necessity of proving actual
damages. Such injunctive relief shall be in addition to and not in
limitation of any and all other remedies the Corporation shall have in law
and at equity for the enforcement of such restrictions and covenants.
Nothing herein provided shall be construed as prohibiting the Corporation
or Employee from pursuing any other remedies available in the event of
breach or threatened breach, including the recovery of damages. And, in
that regard, in the event that either the Corporation or Employee shall
violate any of the foregoing provisions of this Article, the successful
party shall have the right to collect a reasonable attorney’s fee for
bringing such legal or equitable action or otherwise enforcing the terms
and conditions of this Article.

     (e) Confidential Information. Employee will not, during or after the
Term of this Agreement, directly or indirectly, use or disclose any of the
Corporation’s confidential or proprietary information, trade secrets or
other information relating to the operation of the business of the
Corporation or its subsidiaries to any person, firm, corporation,
association, or other entity for any reason or purpose whatsoever except
the furtherance of the interests of the Corporation or its subsidiaries,
provided such information is, through no fault of Employee, not otherwise
in the public domain or otherwise made known by the Corporation.

ARTICLE 6

CHANGE IN CONTROL

     6.1) Change of Control Right. For a period of two (2) years following a
Change in Control, as defined in Section 6.6(b), Employee shall have the right,
at any time and within Employee’s sole discretion, to terminate employment with
the Corporation for COC Good Reason, as defined in Section 6.6(d). Such
termination shall be accomplished by, and effective upon, Employee giving
written notice to the Corporation of Employee’s decision to terminate. Except
as otherwise expressly provided in this Agreement, upon exercise of said right,
all obligations and duties of Employee under this Agreement shall be of no
further force and effect.

     6.2) Change of Control Termination Payment. In the event of a Change in
Control Termination, as defined in Section 6.6(c), then, in lieu of any
severance benefits payable under Section 4.4 and without further action by the
Board of Directors, the Compensation Committee of the Board of Directors, if
any, or otherwise, the Corporation shall pay to Employee an amount equal to
Employee’s compensation (including (i) Base Salary, (ii) Annual Bonuses, and
(iii) the total of lease payments paid by the Corporation for any vehicle used
by Employee, but excluding non-cash fringe benefits such as insurance) for the
two fiscal years preceding such termination, which
amount shall be paid by the Corporation in 24 equal monthly installments
beginning on the first day of the month following the month in which such
termination occurs

6

 

with the remaining payments made on the first day of each of
the succeeding 23 months. Notwithstanding the foregoing, in no event shall the
payments under this Section 6.2, when combined with any other payments or
benefits received or to be received, exceed the maximum amount payable to
Employee under section 280G of the Internal Revenue Code without being treated
as an “excess parachute payment” that is subject to limitations on
deductibility by the Corporation.

     6.3) Waiver of Non-Competition and Non-Recruitment Provisions.
Notwithstanding any other provision or language in this Agreement or any other
agreement or undertaking by Employee, in the event of a Change of Control
Termination, there shall be no contractual prohibition or restriction with
respect to Employee’s subsequent activities and Employee shall be free to
pursue any commercial activity, including any which is directly or indirectly
competitive with, or involves any recruitment with respect to, any part of the
Corporation’s business, including but not limited to the Corporation’s
customers, vendors, suppliers and employees, provided, however, that Employee
shall continue to be bound by paragraph 5.1(e).

     6.4) Interest. In the event the Corporation does not make timely payment
of the Change of Control Termination amounts described in Section 6.2, Employee
shall be entitled to receive interest on any unpaid amount at the prime rate of
interest (or such comparable index as may be adopted) published from time to
time by the Wall Street Journal.

     6.5) Attorneys’ Fees. In the event Employee prevails in an action against
the Corporation to enforce or defend her rights under Article 6 of this
Agreement, or to recover damages for breach thereof, Employee shall be entitled
to recover from the Corporation any reasonable expenses for attorneys’ fees and
disbursements incurred.

     6.6) Definitions. For purposes of this Article 6, the following
definitions shall be applied:

     (a) “Continuing Directors” shall mean the directors of the
Corporation as of the date of execution of this Agreement and any new
director whose election to the Board of Directors or nomination for
election to the Board of Directors is approved by a vote of at least
two-thirds (2/3) of the directors as of the date of execution of this
Agreement who are then still in office.

     (b) “Change of Control” shall mean any of the following events unless
approved in advance by a majority of the Continuing Directors:

     (i) the acquisition of direct or indirect beneficial ownership
(as defined in Rule 13d-3 under the Securities Exchange Act of 1934)
in the aggregate of securities of the Corporation representing twenty
percent (20%) or more of the total combined voting power of the
Corporation’s then issued and outstanding securities by any person or
entity, or group of associated persons or entities acting in concert,
except for the officers and directors of the Corporation as of the
date this agreement is executed; or

     (ii) a merger or consolidation to which the Corporation is a
party if the individuals and entities who were shareholders of the

7

 

Corporation immediately
prior to the effective date of such merger
or consolidation have beneficial ownership (as defined in Rule 13d-3
under the Securities Exchange Act of 1934) of less than fifty percent
(50%) of the total combined voting power for election of directors of
the surviving corporation following the effective date of such merger
or consolidation; or

     (iii) the sale of the properties and assets of the Corporation,
substantially as an entirety, to any person or entity which is not a
wholly-owned subsidiary of the Corporation; or

     (iv) the consummation of a plan of complete liquidation of the
Corporation or of an agreement for the sale or disposition by the
Corporation of all or substantially all of the Corporation’s business
or assets; or

     (v) a change in the composition of the Corporation’s Board of
Directors at any time after the execution of this Agreement such that
the Continuing Directors cease for any reason to constitute at least
a seventy percent (70%) majority of the Board.

     (c) “Change of Control Termination” shall mean with respect to
Employee, any of the following events occurring within two (2) years after
a Change of Control:

     (i) Termination of Employee’s employment by the Corporation for
any reason, other than pursuant to Section 4.1(a) or (c), except for
conduct by Employee constituting a felony; or

     (ii) Termination of employment with the Corporation by Employee
pursuant to Section 6.1. A Change of Control Termination by Employee
shall not include termination by reason of death.

     (d) “COC Good Reason” shall mean a good faith determination by
Employee, in Employee’s sole and absolute judgment, that one or more of
the following events has occurred, without Employee’s express written
consent, after a Change of Control:

     (i) A change in Employee’s reporting responsibilities, titles or
offices as in effect immediately prior to the Change of Control, or
any removal of Employee from, or any failure to re-elect Employee to,
any of such positions, which has the effect of materially diminishing
Employee’s responsibility or authority;

     (ii) A reduction by the Corporation in Employee’s Base Salary or
Annual Bonus as in effect immediately prior to the Change of Control
or as the same may be increased from time to time;

     (iii) The Corporation requiring Employee to be based anywhere
other than within twenty-five (25) miles of Employee’s job location
at the time of the Change of Control;

8

 

     (iv) Without replacement by a plan, program, or arrangement
providing benefits to Employee of the Corporation and its
subsidiaries equal to or greater than those discontinued or adversely
affected, the failure by the Corporation to continue in effect,
within its maximum stated term, any pension, bonus, incentive, stock
ownership, purchase, option, life insurance, health, accident,
disability, or any other employee compensation or benefit plan,
program or arrangement, in which Employee is participating
immediately prior to a Change of Control or the taking of any action
by the Corporation that would adversely affect Employee’s
participation or materially reduce Employee’s benefits under any of
such plans, programs or arrangements;

     (v) The taking of any action by the Corporation that would
materially and adversely affect the workplace environment existing at
the time of the Change of Control in or under which Employee performs
his employment duties;

     (vi) The taking of any action by the Corporation that would
materially change the Corporation’s business strategies or practices
existing at the time of the Change of Control, including but not
limited to changes in the types and brands of products offered,
advertising and promotion programs, employment policies, and the
segment to which the Corporation markets its products; or

     (vii) Termination of employment by the Corporation of any of the
officers of the Corporation or any of its subsidiaries who held such
positions at the time of the Change of Control.

ARTICLE 7

MISCELLANEOUS

     7.1) Severability. If any term or provision of this Agreement shall be
held to be invalid or unenforceable for any reason, such term or provision
shall be ineffective to the extent of such invalidity or unenforceability
without invalidating the remaining terms or provisions of this Agreement.
Without in any way limiting the generality of the foregoing, if any provision
of Article 5 shall be determined by any court of competent jurisdiction to be
unenforceable by reason of its extending for too long a period of time or over
too great a geographical area, such provision shall be interpreted to extend
over only the maximum period of time during which it may be enforced and to
apply only to the maximum geographical area in which it may be enforced, as the
case may be.

     7.2) Notices. Any notice required or permitted to be given under this
Agreement shall be sufficient, if given in person or if in writing, sent by
certified mail, return receipt requested, to the last known residence address
in the case of Employee or to its principal office in the case of the
Corporation.

     7.3) Waiver of Breach. The failure of either party hereto to enforce its
rights under any provision of this Agreement shall not operate or be construed
as a waiver of such breach or of any subsequent breach by any party.

9

 

     7.4) Entire Agreement. This Agreement contains the entire agreement of
the parties concerning the employment of Employee by the Corporation. This
Agreement may not be changed orally, but only by an agreement in writing signed
by the parties against whom enforcement of any waiver, change, modification,
extension or discharge is sought.

     7.5) Governing Law. This Agreement shall be construed and interpreted
according to the laws of the State of Minnesota.

     7.6) Headings. The captions set forth in this Agreement are for
convenience only and shall not be considered a part of this Agreement or in any
way limiting or amplifying the terms or provisions hereof.

     7.7) Obligations Which Survive Termination. The obligations and remedies
of Sections 4.2, 4.3, 4.4, 6.2 and Article 5 of this Agreement shall survive
the execution and termination of this Agreement, except as expressly otherwise
provided for in this Agreement.

     7.8) Assignment. The Corporation may assign its rights and delegate its
responsibilities under this Agreement to any person or entity which acquires
all or substantially all of the operating assets of the Corporation by merger,
consolidation, dissolution, liquidation, combination, sale or transfer of
assets or otherwise. Employee may not assign any of his rights or obligations
under this Agreement.

     7.9) Counterparts. This Agreement may be executed simultaneously into two
or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same agreement.

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and delivered as of the day and year first above written.

	 	 	 	 	 
	 	 	WINLAND ELECTRONICS, INC.
	 
	 	 	 	 
	

	 	By
	 	/s/ Lorin E. Krueger
	

	 	 	 	
 
	 	 	Its President and CEO
	 
	 	 	 	 
	 	 	   /s/ Jennifer A. Thompson
	 	 	
 
	 	 	Jennifer A. Thompson

10

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