Document:

Manatron, Inc. Exhibit 10.2 to Form 10-K - 07/18/07

EXHIBIT 10.2

MANATRON, INC.,

1989 STOCK OPTION PLAN

          1.          Purpose.  The purpose of the Manatron, Inc., 1989 Stock Option Plan is to provide a continuing, long-term incentive to selected eligible directors, officers and key employees of Manatron, Inc. (the "Corporation"), and of any subsidiary corporation of the Corporation (the "Subsidiary"), as herein defined; to provide a means of rewarding outstanding performance and to enable the Corporation to maintain a competitive position to attract and retain key personnel necessary for continued growth and profitability.

          2.          Definitions.  The following words and phrases as used herein shall have the meanings set forth below:

              2.1          "Board" shall mean the Board of Directors of the Corporation.

              2.2          "Change in Control" shall mean the time at which any entity, person or group (other than the Corporation, any subsidiary of the Corporation or any savings, pension or other benefit plan for the benefit of any employees of the Corporation or its subsidiaries) which prior to such time beneficially owned less than 20 percent of the then-outstanding Common Stock acquires such additional shares of Common Stock in one or more transactions, or a series of transactions, such that following such transaction or transactions such entity, person or group beneficially owns, directly or indirectly, 20 percent, or more, of the outstanding Common Stock.

              2.3          "Code" shall mean the Internal Revenue Code of 1986, as amended.

              2.4          "Committee" shall mean the Human Resources Committee of the Board, or such other committee of the Board as may be designated by the Board, from time to time, for the purpose of administering this plan as contemplated by Section 4 hereof.

              2.5          "Common Stock" shall mean the common stock, no par value, of the Corporation.

              2.6          "Corporation" shall mean Manatron, Inc., a Michigan corporation.

              2.7          "Fair Market Value" of any security on any given date shall be determined by the Committee as follows:  (a) if the security is listed for trading on one or more national securities exchanges (including the NASDAQ National Market System), the last reported sales price on the principal such exchange on the date in question, or if such security shall not have been traded on such principal exchange on such date, the last reported sales price on principal such

exchange on the date in question, or if such security shall not have been traded on principal such exchange on such date, the last reported sales price on such principal exchange on the lst day prior thereto on which such security was so traded; or (b) if the security is not listed for trading on a national securities exchange (including the NASDAQ National Market System) but is traded in the over-the-counter market, the mean of the highest and lowest bid prices for such security on the date in question, or if there are no such bid prices for such security on such date, the mean of the highest and lowest bid prices on the lst day prior thereto on which such prices existed; or (c) if neither (a) nor (b) is applicable, by any means deemed fair and reasonable by the Committee, which determination shall be final and binding on all parties.

              2.8          "ISO" shall mean any stock option granted pursuant to this Plan as an "incentive stock option" within the meaning of Section 422A of the Code.

              2.9          "NQO" shall mean any stock option granted pursuant to this Plan which is not an ISO.

              2.10          "Option" shall mean any stock option granted pursuant to this Plan, whether an ISO or a NQO.

              2.11          "Optionee" shall mean any person who is the holder of an Option granted pursuant to this Plan.

              2.12          "Plan" shall mean this 1989 Stock Option Plan of the Corporation.

              2.13          "Subsidiary" shall mean any corporation which at the time qualifies as a subsidiary of the Corporation under Section 425(f) of the Code.

          3.          Shares Available Under Plan.  A maximum of 100,000 shares of the Common Stock of the Corporation (subject to adjustment in accordance with Paragraph 8 below) may be subject to the exercise of Options granted under the Plan.  Such shares shall be authorized shares and may be either unissued shares or shares previously acquired or to be acquired by the Corporation.  If an Option is canceled, surrendered, modified, exchanged for a substitute option, or expires or terminates during the term of the Plan but prior to the exercise of the Option in full, the shares subject to but not delivered under such Option shall be available for Options subsequently granted.

          4.          Administration.

              4.1          The Plan will be administered by a Committee of at least three members selected by the Board, and who have not at any time during the 12-month period before service on the Committee, been eligible to receive any

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Option under the Plan or under any other benefit plan of the Corporation or any of its affiliates entitling the participants therein to acquire stock or stock options of the Corporation or any of its Subsidiaries.  No Options shall be granted to any Committee member during his tenure on the Committee.

              4.2          The Committee will have plenary authority, subject to provision of the Plan, to determine when and to whom Options will be granted, the term of each Option, the number of shares covered by it, and any other terms or conditions of each Option.  The Committee may also amend outstanding Options, consistent with the Plan, provided that no such amendment may be effective without the consent of the Optionee except to the extent that such amendment operates solely to the benefit of the Optionee.  The Committee shall determine with respect to each grant of an Option whether a participant shall receive an ISO or a NQO.  The number of shares, the term and the other terms and conditions of a particular kind of Option need not be the same, even as to options granted at the same time.  The Committee's recommendations regarding option grants and terms and conditions thereof will be conclusive.

              4.3          The Committee will have the sole responsibility for construing and interpreting the Plan, for establishing and amending any rules and regulations as it deems necessary or desirable for the proper administration of the Plan and for resolving all questions arising under the Plan.  Any decision or action taken by the Committee arising out of or about the construction, administration, interpretation and effect of the Plan and of its rules and regulations will, to the extent permitted by law, be within its absolute discretion, except as otherwise specifically provided herein, and will be conclusive and binding on all Optionees, all successors, and any other person, whether that person is claiming under or through any Optionee or otherwise.

              4.4          The Committee will designate one of its members as chairman.  It will hold its meetings at the times and places as it may determine.  A majority of its members will constitute a quorum, and all determinations of the Committee will be made by a majority of its members.  Any determination reduced to writing and signed by all members will be fully as effective as if it had been made by a majority vote at a meeting duly called and held.  The Committee may appoint a secretary, who need not be a member of the Committee, and may make such rules and regulations for the conduct of its business as it may deem advisable.

              4.5          No member of the Committee will be liable, in the absence of bad faith, for any act or omission with respect to his services on the Committee.  Members of the Committee will be entitled to indemnification and reimbursement as Board members pursuant to its Bylaws.

              4.6          The Committee will regularly inform the Board as to its actions with respect to all Options granted under the Plan and the terms and conditions of

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any such Options in any manner, at any times and in any form as the Board may reasonably request.

              4.7          Any other provision of the Plan to the contrary notwithstanding, the Committee is authorized to take such action as it, in its discretion, may deem necessary or advisable and fair and equitable to Optionees in the event of: a Change in Control of the Corporation; a tender, exchange or similar offer for all or any part of the Common Stock made by any entity, person or group (other than the Corporation, any Subsidiary of the Corporation or any savings, pension or other benefit plan for the benefit of employees of the Corporation or its Subsidiaries); a merger of the Corporation into, a consolidation of the Corporation with or an acquisition of the Corporation by another corporation or a sale or transfer of all or substantially all of the Corporation's assets.  Such action, in the Committee's discretion, may include (but shall not be deemed limited to): establishing, amending or waiving the forms, terms, conditions or duration of Options so as to provide for earlier, later, extended or additional terms for exercise of the whole, or any installment, thereof; alternate forms of payment or other modifications.  The Committee may take any such actions pursuant to this Section 4.7 by adopting rules or regulations of general applicability to all Optionees, or to certain categories of Optionees; by amending or waiving terms and conditions in stock option agreements; or by taking action with respect to individual Optionees.  The Committee may take any such actions before or after the public announcement of any such Change in Control, tender offer, exchange offer, merger, consolidation, acquisition or sale or transfer of assets.

          5.          Participants.

              5.1          Participation in this Plan shall be limited to directors, corporate officers and other key personnel of the Corporation or of a Subsidiary.  The Committee shall determine whether or not a given individual is eligible to participate in this Plan.

              5.2          Subject to other provisions of this Plan, Options may be granted to the same participants on more than one occasion.

              5.3          The Committee's determinations under the Plan (including, without limitation, determination of the persons to receive Options, the form, amount and type of such Options, and the terms and provisions of Options) need not be uniform and may be made selectively among otherwise eligible participants, whether or not the participants are similarly situated.

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          6.          Terms and Conditions.

              6.1          Each Option granted under the Plan shall be evidenced by a written agreement, which shall be subject to the provisions of this Plan and to such other terms and conditions as the Corporation may deem appropriate.

              6.2          Each Option agreement shall specify the period for which the Option thereunder is granted (which in no event shall exceed ten years from the date of the grant for options granted pursuant to Sections 6.3(a) and 6.3(c) hereof and five years from the date of grant for Options granted pursuant to 6.3(b) hereof) and shall provide that the Option shall expire at the end of such period; provided, however, the term of each Option shall be subject to the power of the Committee, among other things, to accelerate or otherwise adjust the terms for exercise of Options pursuant to Section 4.7 hereof in the event of the occurrence of any of the events set forth therein.

              6.3          The exercise price per share shall be determined by the Committee at the time any Option is granted and shall be determined as follows:

                    (a)          For employees who do not own stock possessing more than 10 percent of the total combined voting power of all classes of stock of the Corporation or of any Subsidiary, the ISO exercise price per share shall not be less than 100 percent of Fair Market Value of the Common Stock of the Corporation on the date the Option is granted, as determined by the Committee.

                    (b)          For employees who own stock possessing more than 10 percent of the total combined voting power of all classes of stock of the Corporation or of any Subsidiary, the ISO exercise price per share shall not be less than 110 percent of the Fair Market Value of the Common Stock of the Corporation on the date the Option is granted, as determined by the Committee.

                    (c)          For all directors and employees, the NQO exercise price per share shall not be less than 100 percent of the Fair Market Value of the Common Stock of the Corporation on the date the Option is granted, as determined by the Committee.

              6.4          The aggregate Fair Market Value (determined as of the time the Option is granted) of the Common Stock with respect to which an ISO under this Plan or any other plan of the Corporation or its Subsidiaries is exercisable for the first time by an Optionee during any calendar year shall not exceed $100,000.

              6.5          An Option shall be exercisable at such time or times, and with respect to such minimum number of shares, as may be determined by the Committee at the time of the grant.  The Option agreement may require, if so determined by the

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Committee, that no part of the Option may be exercised until the Optionee shall have remained in the employ of the Corporation or of a Subsidiary for such period after the date of the Option as the Committee may specify.

              6.6          The Corporation may prescribe the form of legend which shall be affixed to the stock certificate representing shares to be issued and the shares shall be subject to the provisions of any repurchase agreement or other agreement restricting the sale or transfer thereof.  Such agreements or restrictions shall be noted on the certificate representing the shares to be issued.

          7.          Exercise of Option.

              7.1          Each exercise of an Option granted hereunder, whether in whole or in part, shall be by written notice thereof, delivered to the Secretary of the Corporation (or such other person as he may designate).  The notice shall state the number of shares with respect to which the Option is being exercised and shall be accompanied by payment in full for the number of shares so designated.  Shares shall be registered in the name of the Optionee unless the Optionee otherwise directs in his or her notice of election.

              7.2          Payment shall be made to the Corporation either (i) in cash, including certified check, bank draft or money order; (ii) at the discretion of the Corporation, by delivering Corporation Common Stock already owned by the participant or a combination of Common Stock and cash or (iii) at the discretion of the Corporation, by delivering a promissory note, containing such terms and conditions as are acceptable to the Corporation, for all or a portion of the purchase price of the shares so purchased.  With respect to (ii), the Fair Market Value of stock so delivered shall be determined as of the date immediately preceding the date of exercise.

              7.3          Upon notification of the amount due and prior to, or concurrently with, the delivery to the Optionee of a certificate representing any shares purchased pursuant to the exercise of an Option, the Optionee shall promptly pay to the Corporation any amount necessary to satisfy applicable federal, state or local tax requirements.

          8.          Adjustments of Option Stock.  If the number of shares of Common Stock outstanding changes by reason of a stock dividend, stock split, recapitalization, merger, reorganization, consolidation, combination, or exchange of shares, the aggregate number and class of shares available under the Plan, and subject to each Option, together with the Option prices, shall be appropriately adjusted.  An adjustment made pursuant to this paragraph shall become effective immediately after the effective date of such subdivision or combination retroactive to the record date, if any, for such subdivision or combination.  No fractional shares

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shall be issued pursuant to the Plan, and any fractional shares resulting from adjustments shall be eliminated from the respective Options.

          9.          Assignments.  Any Option granted under this Plan shall be exercisable only by the Optionee to whom granted during his or her lifetime and shall not be assignable or transferable otherwise than by will or by the laws of descent and distribution.

          10.          Severance; Death; Disability.  An Option shall terminate, and no rights thereunder may be exercised, if the person to whom it is granted ceases to be employed by the Corporation or by a Subsidiary except that:

              10.1          If the Employment of the Optionee is terminated by any reason other than his or her death or disability, the Optionee may, at any time within not more than three months after termination of his or her employment, exercise his or her Option rights, but only to the extent they were exercisable by the Optionee on the date of termination of his or her employment; provided, however, that if the employment is terminated by deliberate, willful or gross misconduct as determined by the Committee, all rights under the Option shall terminate and expire upon such termination of employment.

              10.2          If the Optionee dies while in the employ of the Corporation or a Subsidiary, or within not more than three months after termination of his or her employment, the Optionee's rights under the Option may be exercised at any time within three months following such death by his or her personal representative or by the person or persons to whom such rights under the Option shall pass by will or by the laws of descent and distribution.

              10.3          If the employment of the Optionee is terminated because of permanent disability, the Optionee, or his or her legal representative, may at any time within not more than one year after termination of his or her employment, exercise his or her Option rights but only to the extent they were exercisable by the Optionee on the date of termination of his or her employment.

              10.4          Notwithstanding anything contained in Sections 10.1, 10.2 and 10.3 to the contrary, no Option rights shall be exercisable by anyone after the expiration of the term of the Option.

              10.5          Transfers of employment between the Corporation and a Subsidiary, or between Subsidiaries, or termination of employment with continued service as a director, will not constitute termination of employment for purposes of any Option granted under this Plan.  The Committee may specify in the terms and conditions of an Option whether any authorized leave of absence or

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absence for military or government service or for any other reasons will constitute a termination of employment for purposes of the Option and the Plan.

          11.          Rights of Participants.  Neither a participant nor the personal representatives, heirs or legatees of such participant shall be or have any of the rights or privileges of a shareholder of the Corporation in respect of any of the shares issuable upon the exercise of an Option granted under this Plan, unless and until certificates representing such shares shall have been issued and delivered to the participant or to such personal representatives, heirs or legatees.

          12.          Securities Registration.  If any law or regulation of the Securities and Exchange Commission or of any other body having jurisdiction shall require the Corporation or the participant to take any action in connection with the exercise of an Option, then notwithstanding any contrary provision of an Option agreement or this Plan, the date for exercise of such Option and the delivery of the shares purchased thereunder shall be deferred until the completion of the necessary action.  In the event that the Corporation shall deem it necessary, the Corporation may condition the grant or exercise of an Option granted under this Plan upon the receipt of a satisfactory certificate that the Optionee is acquiring the Option or the shares obtained by exercise of the Option for investment purposes and not with the view or intent to resell or otherwise distribute such Option or shares.  In such event, the stock certificate evidencing such shares shall bear a legend referring to applicable laws restricting transfer of such shares.  In the event that the Corporation shall deem it necessary to register under the Securities Act of 1933, as amended, or any other applicable statute, any Options or any shares with respect to which an Option shall have been granted or exercised, then the participant shall cooperate with the Corporation and take such action as is necessary to permit registration or qualification of such Options or shares.

          13.          Duration and Amendment.

              13.1          There is no express limitation upon the duration of the Plan, except for the requirement of the Code that all ISO's must be granted within ten years from the date the Plan is adopted by the Board.

              13.2          The Board may terminate or may amend the Plan at any time, provided, however, that the Board may not, without approval of the stockholders of the Corporation, (i) increase the maximum number of shares as to which Options may be granted under the Plan, (ii) permit the granting of Options at less than 100 percent of Fair Market Value at time of grant or (iii) change the class of participants eligible to receive Options under the Plan.

          14.          Approval of Shareholders.  This plan was adopted by the Board of Directors on July 19, 1989.  This Plan is expressly subject to approval of the holders of a majority of the outstanding shares of Common Stock of the Corporation, and if it is not so approved on or before

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one year after the date of adoption of this Plan by the Board, this Plan shall not come into effect, and any Options granted pursuant to this Plan shall be deemed canceled.

          15.          No Obligation.  The granting of an Option to a participant under this Plan shall impose no obligation on the Corporation to continue the employment or directorship of any participant and shall not lessen or affect the right of the Corporation to terminate the employment or directorship of the participant.

          16.          Other Options.  Nothing in the Plan will be construed to limit the authority of the Corporation to exercise its corporate rights and powers, including, by way of illustration and not by way of limitation, the right to grant options for proper corporate purposes otherwise than under the Plan to any employee or any other person, firm, corporation, association or other entity, or to grant options to, or assume options of, any person for the acquisition by purchase, lease, merger, consolidation or otherwise, of all or any part of the business and assets of any person, firm, corporation, association or other entity.

9Manatron, Inc. Exhibit 10.3 to Form 10-K - 07/18/07

EXHIBIT 10.3

MANATRON, INC.

1994 LONG-TERM INCENTIVE PLAN

SECTION 1

Establishment of Plan; Purpose of Plan

          1.1          Establishment of Plan.  The Company hereby establishes the 1994 LONG-TERM INCENTIVE PLAN (the "Plan") for its directors, corporate and Subsidiary officers and other key employees.  The Plan permits the grant of Options and the award of Restricted Stock.

          1.2          Purpose of Plan.  The purpose of the Plan is to provide directors, officers and key management employees of the Company and its Subsidiaries with an increased incentive to make significant and extraordinary contributions to the long-term performance and growth of the Company and its Subsidiaries, to join the interests of directors, officers and key employees with the interests of the Company's shareholders through the opportunity for increased stock ownership, and to attract and retain directors, officers and key employees of exceptional ability.  The Plan is further intended to provide flexibility to the Company in structuring long-term incentive compensation to best promote the foregoing objectives.

SECTION 2

Definitions

          The following words have the following meanings unless a different meaning is plainly required by the context:

	 	
2.1
	 	
"Act" means the Securities Exchange Act of 1934, as amended.

	 	 	 	 
	 	
2.2
	 	
"Base Salary" means a Participant's total salary that would be paid to the Participant for a full year if the rate of salary in effect for such Participant at the date of grant of an Option were paid for a full year, regardless of whether such Participant has been or will be employed for the full year at that rate of salary.

	 	 	 	 
	 	
2.3
	 	
"Board" means the Board of Directors of the Company.

	 	 	 	 
	 	
2.4
	 	
"Code" means the Internal Revenue Code of 1986, as amended.

	 	
2.5
	 	
"Committee" means the Stock Option Plan Committee of the Board or such other committee as the Board shall designate to administer the Plan.  The Committee shall consist of at least two members of the Board appointed by the Board all of whom shall be "disinterested persons" as defined in Rule 16b-3 under the Act and "outside directors" as defined in the rules promulgated pursuant to Section 162(m) of the Code.

	 	 	 	 
	 	
2.6
	 	
"Common Stock" means the common stock, no par value, of the Company.

	 	 	 	 
	 	
2.7
	 	
"Company" means Manatron, Inc., a Michigan corporation.

	 	 	 	 
	 	
2.8
	 	
"Competition" means participation, directly or indirectly, in the ownership, management, financing or control of any business that is the same as or similar to the present or future businesses of the Company or its parent or any Subsidiary.  Such participation could be by way of employment, consulting services, directorship or officership.  Ownership of less than five percent (5%) of the shares of any corporation whose shares are traded publicly on any national or regional stock exchange or over the counter shall not be deemed Competition.

	 	 	 	 
	 	
2.9
	 	
"Incentive Award" means the award or grant of an Option or Restricted Stock to a Participant under the Plan.

	 	 	 	 
	 	
2.10
	 	
"Market Value" of any security on any given date means: (a) if the security is listed for trading on one or more national securities exchanges (including the NASDAQ National Market System), the last reported sales price on the principal such exchange on the date in question, or if such security shall not have been traded on such principal exchange on such date, the last reported sales price on such principal exchange on the first day prior thereto on which such security was so traded; or (b) if the security is not listed for trading on a national securities exchange (including the NASDAQ National Market System) but is traded in the over-the-counter market, the mean of highest and lowest bid prices for such security on the date in question, or if there are no such bid prices for such security on such date, the mean of the highest and lowest bid prices on the first day prior thereto on which such prices existed; or (c) if neither (a) nor (b) is applicable, the value as determined by any means deemed fair and reasonable by the Committee, which determination shall be final and binding on all parties.

	 	 	 	 
	 	
2.11
	 	
"Option" means the right to purchase Common Stock at a stated price for a specified period of time.  For purposes of the Plan, an Option may be either an incentive stock option within the meaning of Section 422(b) of the Code or a nonstatutory stock option.

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2.12
	 	
"Participant" means directors, corporate officers and other key employees of the Company and its Subsidiaries who the Committee determines are eligible to participate in the Plan and who are designated to be granted an Incentive Award under the Plan.

	 	 	 	 
	 	
2.13
	 	
"Restricted Period" means the period of time during which Restricted Stock awarded under the Plan is subject to restrictions.  The Restricted Period maydiffer among Participants and may have different expiration dates with respect to shares of Common Stock covered by the same Incentive Award.

	 	 	 	 
	 	
2.14
	 	
"Restricted Stock" means Common Stock awarded to a Participant under Section 6 of the Plan.

	 	 	 	 
	 	
2.15
	 	
"Retirement" means the voluntary termination of all employment by a Participant.

	 	 	 	 
	 	
2.16
	 	
"Subsidiary" means any corporation of which a majority of the outstanding voting stock is directly or indirectly owned or controlled by the Company, or by one or more Subsidiaries.

SECTION 3

Administration

          3.1          Power and Authority.  The Committee shall administer the Plan, shall have full power and authority to interpret the provisions of the Plan, and shall have full power and authority to supervise the administration of the Plan.  All determinations, interpretations and selections made by the Committee regarding the Plan shall be final and conclusive.  The Committee shall hold its meetings at such times and places as it deems advisable.  Action may be taken by a written instrument signed by all of the members of the Committee, and any action so taken shall be fully as effective as if it had been taken at a meeting duly called and held.  The Committee shall make such rules and regulations for the conduct of its business as it deems advisable.  The members of the Committee shall be paid reasonable fees for their services.

          3.2          Grants or Awards to Participants.  In accordance with and subject to the provisions of the Plan, the Committee shall have the authority to determine the persons to be granted Incentive Awards, the amount of Incentive Awards to be optioned or granted to each person and the terms of the Incentive Awards to be granted.  Incentive Awards shall be granted or awarded by the Committee, and Incentive Awards may be amended by the Committee consistent with the Plan, provided that no such amendment may become effective without the consent of the Participant, except to the extent that the amendment operates solely to the benefit of the Participant.

          3.3          Indemnification of Committee Members.  Each person who is or shall have been a member of the Committee shall be indemnified and held harmless by the Company from and

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against any cost, liability or expense imposed or incurred in connection with such person's or the Committee's taking or failing to take any action under the Plan.  Each such person shall be justified in relying upon information furnished in connection with the Plan's administration by any appropriate person or persons.

SECTION 4

Shares Subject to the Plan

          4.1          Number of Shares.  Subject to adjustment as provided in subsection 4.2 of the Plan, a maximum of 250,000 shares of Common Stock shall be available for Options, and a maximum of 50,000 shares of the total maximum of 250,000 shares of Common Stock shall be available for Restricted Stock awards under the Plan.  Such shares shall be authorized and unissued shares.

          4.2          Adjustments.  If the number of shares of Common Stock outstanding changes by reason of a stock dividend, stock split, recapitalization, merger, consolidation, combination, exchange of shares or any other change in the corporate structure or shares of the Company, the aggregate number and class of shares available for grants or awards under the Plan, together with the Option prices, shall be appropriately adjusted.  No fractional shares shall be issued pursuant to the Plan, and any fractional shares resulting from adjustments shall be eliminated from the respective Incentive Award, with an appropriate cash adjustment for the value of any Incentive Awards eliminated.  If an Incentive Award is cancelled, surrendered, modified, expired or terminated during the term of the Plan but prior to the exercise or vesting of the Incentive Award in full, the shares subject to but not delivered under such Incentive Award shall be available for other Incentive Awards.

SECTION 5

Options

          5.1          Grant.  A Participant may be granted one or more Options under the Plan.  Options shall be subject to such terms and conditions, consistent with the other provisions of the Plan, as shall be determined by the Committee in its sole discretion.  The Committee may vary, among Participants and among Options granted to the same Participant, any and all of the terms and conditions of the Options granted under the Plan.  Subject to subsection 5.7, the Committee shall have complete discretion in determining the number of Options granted to each Participant.  The Committee may designate whether or not an Option is to be considered an incentive stock option as defined in Section 422(b) of the Code.  There shall be no limit on the number of Options that may be granted to a Participant in any calendar year or on the number of shares for which Options may be granted.

          5.2          Grants to Non-Employee Directors.  Options to non-employee directors shall be granted under this Plan only pursuant to this subsection 5.2 and only when and to the extent that

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there are insufficient shares for such grants under the Company's 1989 Stock Option Plan.  Each non-employee director who has served a full year's term for the prior year shall automatically receive an Option to purchase 1,000 shares of the Company's Common Stock at one hundred percent (100%) of the Market Value on the date of grant.  Such Options shall be issued on the date of each annual meeting of the Company's shareholders.  These formula grant provisions may be amended by the Board from time to time but not more than once in any six-month period, except as necessary or desirable to comply with the Employee Retirement Income Security Act, the Code or the rules thereunder.

          5.3          Option Agreements.  Each Option shall be evidenced by an Option agreement containing such terms and conditions, consistent with the provisions of the Plan, as the Committee from time to time determines.

          5.4          Option Price.  The per share Option price shall be determined by the Committee but shall be equal to or greater than one hundred percent (100%) of the Market Value on the date of grant.  The date of grant of an Option shall be the date the Option is authorized by the Committee or such future date specified by the Committee as the date for issuing the Option.

          5.5          Medium and Time of Payment.  The exercise price for each share purchased pursuant to an Option granted under the Plan shall be payable in cash or, if the Committee consents, in shares of Common Stock (including Common Stock to be received upon a simultaneous exercise).  The time and terms of payment may be amended with the consent of the Participant before or after exercise of the Option, but such amendment shall not reduce the Option price.  The Committee may from time to time authorize payment of all or a portion of the Option price in the form of a promissory note or installments according to such terms as the Committee may approve.  The Board may restrict or suspend the power of the Committee to permit such loans and may require that adequate security be provided.

          5.6          Options Granted to Ten Percent Shareholders.  No Option granted to any Participant who at the time of such grant owns, together with stock attributed to such Participant under Section 424(d) of the Code, more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any of its Subsidiaries may be designated as an incentive stock option, unless such Option provides an exercise price equal to at least one hundred ten percent (110 %) of the Market Value of the Common Stock, and the exercise of the Option after the expiration of five years from the date of grant of the Option is prohibited by its terms.

          5.7          Limits on Grants.  No Participant shall be granted, during any calendar year, Options for shares of Common Stock that would have an aggregate Market Value, as of the date or dates of grant, greater than such Participant's Base Salary.  The purpose of this subsection 5.7 is to ensure that the Plan provides performance based compensation under Section 162(m) of the Code.  This subsection 5.7 shall be interpreted or amended to achieve that purpose.

          5.8          Limits on Exercisability.  Options shall be exercisable for such periods as may be fixed by the Committee, not to exceed ten years from the grant date.  At the time of the exercise of an Option, the holder of the Option, if requested by the Committee, must represent to the Company that the shares are being acquired for investment and not with a view to the distribution thereof.  The Committee may in its discretion require a Participant to continue service with the Company and its Subsidiaries for a certain length of time prior to an Option becoming exercisable and may eliminate such delayed vesting provisions.  The Committee may

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also vary, among Participants and among Options granted to the same Participant, any and all of the terms and conditions of Options granted under the Plan.

          5.9          Transferability.

          (a)          General.  Unless the Committee otherwise consents or unless the terms of the Option agreement provide otherwise, no Option granted under the Plan may be sold, transferred, pledged, assigned or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution.  In addition, all Options granted to a Participant during the Participant's lifetime shall be exercisable during the Participant's lifetime only by such Participant.

          (b)          Other Restrictions.  The Committee may impose such restrictions on any shares of Common Stock acquired pursuant to the exercise of an Option under the Plan as it deems advisable, including, without limitations restrictions under applicable federal or state securities laws.

          5.10          Termination of Employment or Director or Officer Status.

          (a)          General.  If a Participant ceases to be employed by or an officer or director of the Company or one of its Subsidiaries for any reason other than the Participant's death, disability or termination for cause, the Participant may exercise an Option only for a period of three months after such termination of employment, director or officer status, but only to the extent the Participant was entitled to exercise the Option on the date of termination, unless the Committee otherwise consents or the terms of the Option agreement provide otherwise.  For purposes of the Plan, the following shall not be deemed a termination of employment or termination as a director or officer: (i) a transfer of an employee from the Company to any Subsidiary; (ii) a leave of absence, duly authorized in writing by the Company, for military service or for any other purpose approved by the Company if the period of such leave does not exceed 90 days; (iii) a leave of absence in excess of 90 days, duly authorized in writing by the Company, provided the employee's right to reemployment is guaranteed either by statute or contract; or (iv) a termination of employment with continued service as a director or officer.

          (b)          Death.  If a Participant dies either while an employee or officer of the Company or one of its Subsidiaries or after the termination of employment other than for cause but during the time when the Participant could have exercised an Option under the Plan, or if a director dies while serving as a director of the Company or after ceasing to be a director but during such time as the director (or former director) could have exercised an Option under the Plan, the Option issued to such Participant shall be exercisable by the personal representative of such Participant or other successor to the interest of the Participant for a period of three months after the Participant's death, but only to the extent that the Participant was entitled to exercise the Option on the date of death or termination of employment or director status, whichever first occurred, unless the Committee otherwise consents or the terms of the Option agreement provide otherwise.

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          (c)          Disability.  If a Participant ceases to be an employee, officer or director of the Company or one of its Subsidiaries due to the Participant's disability, the Participant may exercise an Option for a period of one year following such termination of employment or status as a director or officer, but only to the extent the Participant was entitled to exercise the Option on the date of such event, unless the Committee otherwise consents or the terms of the Option agreement provide otherwise.

          (d)          Termination for Cause.  If a Participant is terminated for cause, the Participant shall have no further right to exercise any outstanding unexercised Option issued under the Plan.

SECTION 6

Restricted Stock

          6.1          Grant.  A Participant may be granted Restricted Stock under the Plan.  Restricted Stock shall be subject to such terms and conditions, consistent with the other provisions of the Plan, as shall be determined by the Committee in its sole discretion.  Restricted Stock shall be awarded on the condition that the Participant remain in the employ of the Company or one of its Subsidiaries during the Restricted Period.  Such condition shall have no effect on the right of the Company or any Subsidiary to terminate the Participant's employment at any time.  No payment is required from a Participant for an award of Restricted Stock.

          6.2          Restricted Stock Agreements.  Each award of Restricted Stock shall be evidenced by a Restricted Stock agreement containing such terms and conditions, consistent with the provisions of the Plan, as the Committee from time to time determines.

          6.3          Termination of Employment or Director or Officer Status.

          (a)          General.  If a Participant enters into Competition with the Company or ceases to be employed by or an officer or director of the Company or one of its Subsidiaries for any reason other than the Participant's death, disability or Retirement, then any shares of Restricted Stock still subject to restrictions on the date of such termination shall automatically be forfeited and returned to the Company.  For purposes of the Plan, the following shall not be deemed a termination of employment or termination as a director or officer: (i) a transfer of an employee from the Company to any Subsidiary; (ii) a leave of absence, duly authorized in writing by the Company, for military service or for any other purpose approved by the Company if the period of such leave does not exceed 90 days; (iii) a leave of absence in excess of 90 days, duly authorized in writing by the Company, provided the employee's right to reemployment is guaranteed either by statute or contract; or (iv) a termination of employment with continued service as a director or officer.

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          (b)          Death or Disability.  Unless the terms of the Restricted Stock agreement or grant provide otherwise, in the event a Participant terminates employment or director or officer status with the Company because of death or disability during the Restricted Period, the Participant's right to all of the Participant's Restricted Stock shall vest as of the date of death or disability, and the Participant's Restricted Stock may be transferred free of any restrictions under the Plan, except any restrictions as the Company may reasonably specify to ensure compliance with federal and state securities laws.

          (c)          Retirement.  Unless the Committee otherwise consents or unless the terms of the Restricted Stock agreement or grant provide otherwise, in the event a Participant terminates employment or director or officer status with the Company because of Retirement during the Restricted Period, then any shares of Restricted Stock still subject to restrictions on the date of Retirement shall automatically be forfeited and returned to the Company.

          6.4          Restrictions on Transferability.

          (a)          General.  Unless the Committee otherwise consents or unless the terms of the Restricted Stock agreement provide otherwise, shares of Restricted Stock shall not be sold, exchanged, transferred, pledged or otherwise disposed of by a Participant during the Restricted Period other than to the Company pursuant to subsection 6.3 or 6.4(b) or by will or the laws of descent and distribution.

          (b)          Surrender to the Company.  If any sale, exchange, transfer, pledge or other disposition, voluntary or involuntary, of Restricted Stock that has not vested shall be made or attempted during the Restricted Period, except as provided above in subsections 6.3 and 6.4(a), the Participant's right to the Restricted Stock shall immediately cease and terminate, and the Participant shall promptly surrender to the Company all such Restricted Stock in the Participant's possession.

          (c)          Other Restrictions.  The Committee may impose other restrictions on any shares of Common Stock acquired pursuant to an award of Restricted Stock as the Committee deems advisable, including, without limitation, restrictions under applicable federal or state securities laws.

          6.5          Rights as a Shareholder.  During the Restricted Period, a Participant shall have all rights of a shareholder with respect to his Restricted Stock, including (a) the right to vote any shares at shareholders' meetings; (b) the right to receive, without restriction, all cash dividends paid with respect to such Restricted Stock; and (c) the right to participate with respect to such Restricted Stock in any stock dividend, stock split, recapitalization or other adjustment in the Common Stock of the Company or any merger, consolidation or other reorganization involving an increase or decrease or adjustment in the Common Stock of the Company.  Any new, additional or different shares or other security received by the Participant pursuant to any such stock dividend, stock split, recapitalization or reorganization shall be subject to the same terms, conditions and restrictions as those relating to the Restricted Stock for which such shares were received.

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          6.6          Deposit of Certificates; Legending of Restricted Stock.

          (a)          Deposit of Certificates.  Any certificates evidencing shares of Restricted Stock awarded pursuant to the Plan shall be registered in the name of the relevant Participant and deposited, together with a stock power endorsed in blank, with the Company.  In the discretion of the Committee, any such certificates may be deposited in a bank designated by the Committee or delivered to the Participant.  Certificates for shares of Restricted Stock that have vested shall be delivered to the Participant upon request within a reasonable period of time.  The Participant shall sign all documents necessary or appropriate to facilitate such delivery.

          (b)          Legend.  Any certificates evidencing shares of Restricted Stock awarded pursuant to the Plan shall bear the following legend:

The shares represented by this certificate were issued subject to certain restrictions under the Manatron, Inc. 1994 Long-Term Incentive Plan (the "Plan").  A copy of the Plan is on file in the office of the Secretary of Manatron, Inc.  This certificate is held subject to the terms and conditions contained in a restricted stock agreement that includes a prohibition against the sale or transfer of the stock represented by this certificate except in compliance with that agreement, and that provides for forfeiture upon certain events.

          6.7          Representations and Warranties.  A Participant who is awarded Restricted Stock shall represent and warrant that the Participant is acquiring the Restricted Stock for the Participant's own account and investment and without any intention to resell or redistribute the Restricted Stock.  The Participant shall agree not to resell or redistribute such Restricted Stock after the Restricted Period except upon such conditions as the Company may reasonably specify to ensure compliance with federal and state securities laws.

SECTION 7

General Provisions

          7.1          No Rights to Awards.  No Participant or other person shall have any claim to be granted any Incentive Award, and there is no obligation of uniformity of treatment of Participants or holders or beneficiaries of Incentive Awards.  The terms and conditions of the Incentive Awards of the same type and the determination of the Committee to grant a waiver or modification of any Incentive Award and the terms and conditions thereof need not be the same with respect to each Participant.

          7.2          Withholding.  The Company or a Subsidiary shall be entitled to (a) withhold and deduct from future wages of a Participant (or from other amounts that may be due and owing to a Participant from the Company or a Subsidiary), or make other arrangements for the collection

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of, all legally required amounts necessary to satisfy any and all federal, state and local withholding and employment-related tax requirements attributable to an Incentive Award, including, without limitation, the grant, exercise or vesting of, or payment of dividends with respect to, an Incentive Award or a disqualifying disposition of Common Stock received upon exercise of an incentive stock option; or (b) require a Participant promptly to remit the amount of such withholding to the Company before taking any action with respect to an Incentive Award.  Unless the Committee determines otherwise, withholding may be satisfied by withholding Common Stock to be received upon exercise or by delivery to the Company of previously owned Common Stock.  The Company may establish such rules and procedures concerning timing of any withholding election as it deems appropriate to comply with Rule 16b-3 under the Act.

          7.3          Compliance With Laws; Listing and Registration of Shares.  All Incentive Awards granted under the Plan (and all issuances of Common Stock or other securities under the Plan) shall be subject to applicable laws, rules and regulations, and to the requirement that if at any time the Committee determines, in its sole discretion, that the listing, registration or qualification of the shares covered thereby upon any securities exchange or under any state or federal law, or the consent or approval of any governmental regulatory body, is necessary or desirable as a condition of, or in connection with, the granting of such Incentive Award or the issue or purchase of shares thereunder, such Incentive Award may not be exercised in whole or in part, or the restrictions on such Incentive Award shall not lapse, unless and until such listing, registration, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Committee.

          7.4          No Limit on Other Compensation Arrangements.  Nothing contained in the Plan shall prevent the Company or any Subsidiary from adopting or continuing in effect other or additional compensation arrangements, including the grant of options and other stock-based awards, and such arrangements may be either generally applicable or applicable only in specific cases.

          7.5          No Right to Employment.  The grant of an Incentive Award shall not be construed as giving a Participant the right to be retained in the employ of the Company or any Subsidiary.  The Company or any Subsidiary may at any time dismiss a Participant from employment, free from any liability or any claim under the Plan, unless otherwise expressly provided in the Plan or in any written agreement with a Participant.

          7.6          Governing Law.  The validity, construction and effect of the Plan and any rules and regulations relating to the Plan shall be determined in accordance with the laws of the State of Michigan and applicable federal law.

          7.7          Severability.  In the event any provision of the Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included.

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SECTION 8

Effective Date and Duration of the Plan

          This Plan became November 23, 1993, and was approved by the shareholders at the 1994 Annual Meeting of Shareholders on October, 1994.  Unless earlier terminated by the Board of Directors, the Plan shall terminate on November 22, 2003.  No Incentive Award shall be granted under this Plan after such date.

SECTION 9

Termination and Amendment

          The Board may terminate the Plan at any time, or may from time to time amend the Plan as it deems proper and in the best interests of the Company, provided that without shareholder approval no such amendment may (a) materially increase either the benefits to Participants under the Plan or the number of shares that may be issued under the Plan; (b) materially modify the eligibility requirements; (c) reduce the Option price (except pursuant to adjustments under subsection 4.2); or (d) impair any outstanding Incentive Award without the consent of the Participant, except according to the terms of the Incentive Award.

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