Document:

COGENTRIX ENERGY, INC.

SELECT MANAGEMENT COMMITTEE MEMBERS TRANSACTION BONUS PROGRAM

ARTICLE I

ESTABLISHMENT OF PROGRAM

As of the Effective Date, the Company hereby establishes the Cogentrix Energy, Inc. Select Management Committee Members Transaction Bonus Program, as set forth in this document.

ARTICLE II

DEFINITIONS

As used herein, the following words and phrases shall have meanings set forth below (unless the context clearly indicates otherwise):

            2.1     "Affiliate" shall mean an entity directly or indirectly controlled, controlling or under common control with the Company.

            2.2      "Base Salary" shall mean the amount a Participant is entitled to receive from the Company in cash as wages or salary on an annualized basis in consideration for his or her services, (i) including any such amounts which have been deferred and (ii) excluding all other elements of compensation such as, without limitation, any bonus, commissions, overtime, health benefits, perquisites and incentive compensation.

            2.3      "Beneficiary" shall mean:

	
           (a)     with respect to a Participant who was married at the time of death, his or her surviving spouse; and

	
           (b)     with respect to a Participant who was not married at the time of death, the legal representative of the Participant's estate under the laws of the state of the Participant's domicile at the time of death.

            2.4     "Board" shall mean the Board of Directors of the Company.

            2.5     "Cause" shall mean, with respect to a Participant's termination of employment, (i) the willful and repeated failure of the Participant to perform substantially the Participant's duties with the Company (other than any such failure resulting from incapacity due to physical or mental illness); (ii) the Participant's conviction of, or plea of guilty or nolo contendere to, a felony which is materially and demonstrably injurious to the Company; or (iii) the Participant's willful engagement in gross misconduct in violation of Company policy.

            2.6     "Company" shall mean  Cogentrix Energy, Inc. and any successor thereto.

            2.7     "Disability" shall mean, with respect to a Participant's termination of employment, a disability entitling the Participant to long-term disability benefits under the applicable long-term disability plan of the Company.

            2.8     "Effective Date" shall mean September 1, 2001.

            2.9     "Employee" shall mean any employee (exempt or non-exempt) of the Company.

            2.10    "Employment Agreement" shall mean:

	
           (a)     with respect to Dennis W. Alexander, Esquire, the Executive Employment Agreement Between Cogentrix, Inc. And Dennis W. Alexander, Esquire, effective as of January 1, 1994, as amended on February 16, 2001 and September ____, 2001;

	
           (b)     with respect to Thomas F. Schwartz, the Executive Employment Agreement Between Cogentrix Energy, Inc. And Thomas F. Schwartz, effective as of February 16, 2001, as amended on September ____, 2001; and

	
           (c)     with respect to Bruno R. Dunn, the Executive Employment Agreement Between Cogentrix Energy, Inc. And Bruno R. Dunn, effective as of February 16, 2001, as amended on September ____, 2001.

            2.11    "Good Reason" shall mean, with respect to any Participant, the occurrence of any of the following events after a Transaction:

	
           (a)     a reduction in the Participant's Base Salary below the Required Base Salary;

	
           (b)     a reduction in the annual performance bonus opportunity or the opportunity under any subsequent annual performance bonus plan available to the Participant from the Participant's annual bonus opportunity immediately prior to the Transaction;

	
           (c)     the occurrence of a material breach of the Profit-Sharing Plan by the Company following a Transaction;

	
           (d)     a reduction in the aggregate level of employee benefits offered to the Participant in comparison to the employee benefit programs and arrangements enjoyed by the Participant immediately prior to the Transaction; or

	
           (e)     a change at the request of the Company in the Participant's principal work location to a work location that is more than 50 miles from the location where the Participant was based prior to the Transaction.

            2.12    "Lewis Group" shall mean George T. Lewis, Jr., his spouse, their lineal descendants and the spouses of such lineal descendants, and any trust established by or for the benefit of any one or more of the foregoing.

            2.13    "Participant"  shall mean an Employee who meets the eligibility requirements of Section 3.1.

            2.14    "Payment Date" shall mean the date 180 days immediately following the Transaction Date.

            2.15    "Potential Transaction Date" shall mean the date on which the Board first becomes aware of the general terms of a specific proposed transaction or event which, if completed, would constitute a Transaction.

            2.16    "Program" shall mean the Cogentrix Energy, Inc. Select Management Committee Members Transaction Bonus Program.

            2.17    "Required Base Salary" shall mean, with respect to any Participant, the higher of (i) the Participant's Base Salary as in effect immediately prior to the Transaction and (ii) the Participant's highest Base Salary in effect at any time thereafter.

            2.18    "Special Committee" shall mean the Special Compensation Committee created by the Board on July 17, 2001, to address change-in-control compensation matters.

            2.19    "Total Compensation" shall mean the sum of the Participant's total compensation earned in the calendar year immediately preceding the calendar year of the Transaction Date, including, without limitation, Base Salary; amounts under the Company's annual performance bonus plan and the Cogentrix Energy, Inc. Incentive Bonus Plan; distributions under the Cogentrix Energy, Inc. Profit-Sharing Plan; the actual cost to the Participant to procure and maintain benefits that are substantially equivalent to the Participant's medical, dental, prescription drug, life insurance, and long-term disability benefits; the Company matching contribution to the Cogentrix Energy, Inc. Section 401(k) Plan and the Cogentrix Energy, Inc. Supplemental Retirement Savings Plan; and the amount of fees received for service on the Board with respect to the Participant.

            2.20    "Transaction" shall mean the first to occur of any of the following events:

	
           (a)     the direct or indirect acquisition by any person,  corporation, entity or group of the beneficial ownership of 50% or more of the issued and outstanding stock of the Company in a single transaction or series of transactions; provided, however, that the following acquisitions shall not constitute a Transaction:

	
       (i)     an acquisition from the Company;

	
      (ii)     an acquisition by the Company;

	
     (iii)     an acquisition by an employee benefit plan or related trust sponsored or maintained by the Company or an Affiliate; or

	
     (iv)     an acquisition by one or more members of the Lewis Group.

	
           (b)     the consummation of a merger, consolidation or similar transaction to which the Company is a party which results in 50% or more of the issued and outstanding securities of the resulting company becoming beneficially owned by a person, corporation, entity or group other than the persons, corporations, entities, or groups having beneficial ownership of the Company immediately prior to such merger, consolidation or similar transaction; or

	
           (c)     a sale, exchange or transfer by the Company of 50% or more of its assets to any person, corporation, entity or group other than an Affiliate.

            2.21    "Transaction Bonus" shall mean the payments provided in accordance with Section 4.2 of the Program.

            2.22    "Transaction Date" shall mean the date on which a Transaction occurs.

ARTICLE III

ELIGIBILITY

            3.1     Participation.  The following Employees shall be Participants in the Program:

	
           (a)     Dennis W. Alexander, Esq.;

	
           (b)     Thomas F. Schwartz; and

	
           (c)     Bruno R. Dunn.

            3.2     Duration of Participation.  A Participant who is entitled to payment of a Transaction Bonus under Section 4.1 shall remain a Participant in the Program until the full amount of his or her Transaction Bonus payable under the Program has been paid.

ARTICLE IV

TRANSACTION BONUSES

            4.1     Events Which Trigger a Transaction Bonus.  

	
           (a)     Continuous Employment. A Participant shall be entitled to receive from the Company a Transaction Bonus, as determined and payable in accordance with Section 4.2, if the Participant continued to be an Employee from the Transaction Date to the Payment Date.

	
           (b)     Certain Employment Terminations.  A Participant whose employment with the Company terminated at any time during the period beginning on the earlier of the Potential Transaction Date or the Transaction Date and ending on the Payment Date shall be entitled to receive from the Company a Transaction Bonus, as determined and payable in accordance with Section 4.2, if the Participant's termination of employment was:

	
       (i)     initiated by the Company other than for Cause;

	
      (ii)     initiated by the Participant for Good Reason; or 

	
     (iii)     due to the Participant's death or Disability. 

            4.2     Amount and Payment of Transaction Bonuses.  If a Participant is entitled to a Transaction Bonus as provided in Section 4.1, the Company shall pay such Participant (or in the event of the Participant's death, his or her Beneficiary), an amount which, when added to severance amounts received by the Participant under the Employment Agreement or, if the Participant has not received severance amounts under the Employment Agreement, then such severance amount (as determined by the Special Committee no later than the Transaction Date) that the Participant would have been entitled to receive in accordance with the Employment Agreement had the Participant's employment with the Company terminated, equals three times the Participant's Total Compensation for Dennis W. Alexander, Esq. and Thomas F. Schwartz and two times the Participant's Total Compensation for Bruno R. Dunn; provided, however, that such amount shall not be less than one times the Participant's Total Compensation.  Any payment under this Section 4.2 shall be independent of, and in addition to, any amounts due and payable to the Participant under the performance bonus plan, the Cogentrix Energy, Inc. Incentive Bonus Plan, the Cogentrix Energy, Inc. Profit-Sharing Plan, and the Employment Agreement.

To the extent that a Participant is not entitled to a Transaction Bonus under Section 4.1, an amount equal to the amount of a Transaction Bonus under this Section 4.2, which the Participant would have received had the Participant been entitled to such payment under Section 4.1, shall be added to the amount payable under the Cogentrix Energy, Inc. Variable Transaction Bonus Program and allocated according to the terms of such program.

The Participant's Transaction Bonus shall be paid in a lump sum in cash no later than ten days after his or her Payment Date or, in the case of a termination of employment entitling the Participant to a Transaction Bonus under Section 4.1(b), the later of the Transaction Date or the date of the Participant's termination of employment.

            4.3     Other Benefits Payable.  The Transaction Bonus provided pursuant to Section 4.1 above shall be provided in addition to, and not in lieu of, all other accrued or vested or earned but deferred compensation, rights, options or other benefits which may be owed to a Participant by the Company.

            4.1     Payment Obligations Absolute.  Upon the Transaction Date, the obligations of the Company to pay the Transaction Bonus described in Section 4.2 shall be absolute and unconditional and shall not be affected by any circumstances, including, without limitation, any set-off, counterclaim, recoupment, defense or other right which the Company or any of its subsidiaries may have against any Participant.

ARTICLE V

SUCCESSOR TO COMPANY

This Program shall bind any successor of the Company, its assets or its businesses (whether direct or indirect, by purchase, merger, consolidation or otherwise), in the same manner and to the same extent that the Company would be obligated under this Program if no succession had taken place.  In the case of any transaction in which a successor would not by the foregoing provision or by operation of law be bound by this Program, the Company shall require such successor expressly and unconditionally to assume and agree to perform the Company's obligations under this Program, in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place.  The term "Company," as used in this Program, shall mean the Company as hereinbefore defined and any successor or assignee to the business or assets which by reason hereof becomes bound by this Program.

ARTICLE VI

DURATION, AMENDMENT AND TERMINATION

            6.1     Duration. Subject to Section 6.2 below, this Program shall continue in full force and effect and shall not terminate or expire until after all Participants who become entitled to any payments hereunder shall have received such payments in full.

            6.2     Amendment and Termination.  The Program may be terminated or amended with respect to any persons who are not yet Participants in the Program in any respect at any time or with respect to any Participant who has not yet become entitled to any payment hereunder, provided that such termination or amendment occurs prior to the Transaction Date, by resolution adopted by a majority of the Board.  

            6.3     Form of Amendment.  The form of any amendment or termination of the Program shall be a written instrument signed by a duly authorized officer or officers of the Company, certifying that the amendment or termination has been approved by the Board.  An amendment of the Program in accordance with the terms hereof shall automatically effect a corresponding amendment to all Participants' rights and benefits hereunder.  A termination of the Program in accordance with the terms hereof shall automatically effect a termination of all Participants' rights and benefits hereunder.

ARTICLE VII

MISCELLANEOUS

            7.1     Legal Fees and Expenses.  If a Participant institutes any legal action in seeking to obtain or enforce, or is required to defend in any legal action the validity or enforceability of, any right or benefit provided by this Program, the Company shall reimburse the Participant for all reasonable costs and expenses relating to such legal action, including reasonable attorney's fees and expenses incurred by such Participant, provided that such legal action results in either (a) a settlement requiring the Company  to make a payment to the Participant or (b) a judgment or order in whole or in part in favor of the Participant, regardless of whether such judgment or order is subsequently reversed on appeal or in a collateral proceeding.  In no event shall the Participant be required to reimburse the Company for any of the costs and expenses relating to such legal action.  The Company's obligations under this Section 7.1 shall survive the termination of this Program.

            7.2     Employment Status.  This Program does not constitute a contract of employment or impose on the Company any obligation to retain the Participant as an Employee, to change the status of the Participant's employment, or to change the Company's policies or those of its subsidiaries' regarding termination of employment.

            7.3     Validity and Severability.  The invalidity or unenforceability of any provision of the Program shall not affect the validity or enforceability of any other provision of the Program, which shall remain in full force and effect, and any prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

            7.4     Governing Law.  The validity, interpretation, construction and performance of the Program shall in all respects be governed by the laws of North Carolina, without reference to principles of conflict of law.

            7.5     Named Fiduciary; Administration.  The Company is the named fiduciary of the Program, with full authority to control and manage the operation and administration of the Program, acting through the Board.

            7.6     Claims Procedure.  If an Employee or former Employee makes a written request alleging a right to receive benefits under the Program or alleging a right to receive an adjustment in benefits being paid under the Program, the Company shall treat it as a claim for benefits.  All claims for Transaction Bonuses under the Program shall be sent to the Human Resources Department of the Company and must be received within 30 days after the Payment Date or the date of termination of employment, as applicable.  If the Company determines that any individual who has claimed a right to receive a Transaction Bonus under the Program is not entitled to receive all or any part of the benefits claimed, it will inform the claimant in writing of its determination and the reasons therefor in terms calculated to be understood by the claimant.  The notice will be sent within 30 days of the written request, unless the Company determines additional time, not exceeding 45 days, is needed.  The notice shall make specific reference to the pertinent Program provisions on which the denial is based, and describe any additional material or information that is necessary.  Such notice shall, in addition, inform the claimant what procedure the claimant should follow to take advantage of the review procedures set forth below in the event the claimant desires to contest the denial of the claim.  The claimant may, within 90 days thereafter, submit in writing to the Company a notice that the claimant contests the denial of his or her claim by the Company and desires a further review.  The Company shall, within 30 days thereafter, review the claim and authorize the claimant to appear personally and review pertinent documents and submit issues and comments relating to the claim to the persons responsible for making the determination on behalf of the Company.  The Company will render its final decision with specific reasons therefor in writing and will transmit it to the claimant within 30 days of the written request for review, unless the Company determines additional time, not exceeding 30 days, is needed, and so notifies the Participant.  If the Company fails to respond to a claim filed in accordance with the foregoing within 30 days or any such extended period, the Company shall be deemed to have denied the claim.

            7.7     Unfunded Program Status.  This Program is intended to be an unfunded plan.  All payments pursuant to the Program shall be made from the general funds of the Company and no special or separate fund shall be established or other segregation of assets made to assure payment.  No Participant or other person shall have under any circumstances any interest in any particular property or assets of the Company as a result of participating in the Program.  Notwithstanding the foregoing, the Company may (but shall not be obligated to) create one or more grantor trusts, the assets of which are subject to the claims of the Company's creditors, to assist it in accumulating funds to pay its obligations under the Program.

            7.8     Tax Withholding.  Any payment provided for hereunder shall be paid net of any applicable tax withholding required under federal, state, local or foreign law.

            7.9     Nonalienation of Benefits.  Except as otherwise specifically provided herein, amounts payable under the Program shall not be subject to any manner of anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, charge, garnishment, execution or levy of any kind, either voluntary or involuntary, including any liability which is for alimony of other payments for the support of a spouse or former spouse, or for any other relative of a Participant, prior to actually being received by the person entitled to payment under the terms of the Program.  Any attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber, charge, garnish, execute or levy upon, otherwise dispose of any right to amounts payable hereunder, shall be null and void.

            7.10    Facility of Payment.  

	
           (a)     If a Participant is declared an incompetent, and a conservator, guardian, or other person legally charged with his or her care has been appointed, any  Transaction Bonus to which such individual is entitled may be paid or provided to such conservator, guardian, or other person legally charged with his or her care;

	
           (b)     If a Participant is incompetent, the Company may (i) require the appointment of a conservator or guardian, (ii) distribute amounts to his or her spouse, with respect to a Participant who is married, or to such other relative of an unmarried Participant for the benefit of such Participant, or (iii) distribute such amounts directly to or for the benefit of such Participant; provided however, that a conservator, guardian, or other person charged with his or her care has not been appointed.

            7.11    Indemnification of Special Committee.  No member or agent of the Special Committee shall be personally liable for any action, determination, or interpretation made with respect to the Program, and each member of the Special Committee shall be held harmless, defended, and indemnified by the Company to the fullest extent permitted by law.

            7.12    Plan Expenses.  The Company shall be responsible for the payment of all fees and expenses associated with the administration of the Program.

            7.13    Gender and Number.  Except when the context indicates to the contrary, when used herein masculine terms shall be deemed to include the feminine, and plural the singular.

            7.14    Headings. The headings of Articles and Sections are included solely for convenience of reference, and are not to be used in the interpretation of the provisions of the Program.<PAGE>

                                                                    Exhibit 4.1

                               GSI LUMONICS INC.
                          EMPLOYEE STOCK PURCHASE PLAN

                                PLAN DESCRIPTION
                                ----------------

The GSI Lumonics Inc. Stock Purchase Plan is intended to promote the interests
of GSI Lumonics Inc. (the "Company") and its subsidiaries by providing eligible
employees an opportunity to acquire a proprietary interest in the Company
through participation in a payroll-deduction based employee stock purchase plan.

     1.   DEFINITIONS.

     "ASSOCIATE" has the meaning assigned by the Securities Act (Ontario), as
     amended from time to time.

     "BASE PAY" means, for each Participant, the regular compensation and
     commissions earned during each payroll period, before any deductions or
     withholding, but excluding overtime pay, bonuses, amounts paid as
     reimbursements of expenses and other additional compensation, under rules
     uniformly applied by the Committee.

     "BOARD OF DIRECTORS" means the board of directors of the Company.

     "BUSINESS DAY" means any day which is a trading day on the Exchange or on
     which NASDAQ quotations are issued, as the case may be.

     "CODE" means the United States Internal Revenue Code of 1986, as amended.

     "COMMITTEE" means the appropriate compensation or other committee appointed
     by the Board of Directors to administer the Plan.  All references in the
     Plan to the Committee means the Board of Directors if no Committee has been
     appointed.

     "COMMON SHARES" means common shares in the capital of the Company.

     "ELIGIBLE EMPLOYEE" means an employee who is eligible to participate in the
     Plan pursuant to Section 3.

     "EXCHANGE" means The Toronto Stock Exchange.

     "EXERCISE DATE" means the Business Day which is six months following the
     Grant Date in respect of any Offering Period other than the initial
     Offering Period, for which the Exercise Date shall be December 31, 2001.

     "EXERCISE PRICE" means, unless the Committee determines before a Grant Date
     that a higher or lower price that complies with Code Section 423 shall
     apply, means the lesser of (i) 85% of the Fair Market Value of the Common
     Shares on the Grant Date for the

                                       1
<PAGE>

     Offering Period in which the Exercise Date falls, or (ii) 85% of the Fair
     Market Value of the Common Shares on the Exercise Date for that Offering
     Period.

     "FAIR MARKET VALUE" per Common Share at any date shall be the weighted
     average sale price for board lots of Common Shares on the Exchange (or, if
     the Common Shares are not then listed or posted for trading on the
     Exchange, on NASDAQ) on the five trading days immediately preceding the
     Exercise Date or the Grant Date, as the case may be.

     "GRANT DATE" means, with respect to any given Participant, the first
     Business Day of each Offering Period or such other Business Day in an
     Offering Period approved by the Committee for Participants to commence
     payroll deductions to purchase Common Shares during such Offering Period.

     "INSIDER" means:

          (i)    an insider of the Company as defined by the Securities Act
          (Ontario) as amended from time to time, other than a person who falls
          within such definition solely by virtue of being a director or senior
          officer of a subsidiary of the Company; and

          (ii)   an Associate of any person who is an insider by virtue of
          clause (i) of this definition;

     "NASDAQ" means the Nasdaq National Market;

     "OFFERING PERIOD" means the six month period (in the case of the initial
     Offering Period, commencing July 1, 2001 and ending December 31, 2001) as
     determined by the Committee in which Eligible Employees are able to make
     contributions to their respective Plan Account to purchase Common Shares in
     accordance with the Plan;

     "OUTSTANDING ISSUE" means the number of Common Shares that are outstanding
     immediately prior to any issuance of Common Shares issued pursuant to the
     Plan during the particular one year period;

     "PARTICIPANT" means an Eligible Employee who is participating in the Plan
     pursuant to Section 4.

     "PLAN" means the GSI Lumonics Inc. Employee Stock Purchase Plan.

     "PLAN ACCOUNT" means an account maintained by the Company or its designated
     record keeper for each Participant to which the Participant's payroll
     deductions are credited, against which funds used to purchase Common Shares
     are charged and to which Common Shares purchased are credited.

     2.   SHARES SUBJECT TO THE PLAN.  Subject to Section 12, the aggregate
number of Common Shares which may be sold under the Plan is 300,000.  The
Company shall issue authorized but unissued treasury Common Shares to provide
Common Shares for purchase

                                       2
<PAGE>

under the Plan. No fractional shares may be purchased or issued hereunder. The
following restrictions shall also apply to this Plan as well as all the other
plans or share compensation arrangements to which the Company may be a party:

     (i)    the aggregate number of Common Shares which are reserved for
            issuance pursuant to rights to purchase securities of the Company
            granted to Insiders shall not exceed 10% of the Outstanding Issue;

     (ii)   Insiders shall not be issued, within any one year period, a number
            of Common Shares which exceeds 10% of the Outstanding Issue;

     (iii)  no Insider together with such Insider's Associates shall be issued,
            within any one year period, a number of Common Shares which exceeds
            5% of the Outstanding Issue; and

     (iv)   the number of Common Shares reserved for issuance pursuant to rights
            to purchase securities of the Company to any one Participant shall
            not exceed 5% of the Outstanding Issue.

     3.   ELIGIBLE EMPLOYEES.  Each active employee of the Company or any of its
subsidiaries who has been employed for at least 6 months and who is regularly
employed by the Company or any of its subsidiaries for at least 20 hours per
week and more than 5 months per calendar year shall be eligible to participate
in the Plan.  The Committee may exclude all, but not less than all, of the
employees of any subsidiary located outside of North America where participation
by such employees would be impractical.

     4.   OFFERING PERIODS; PARTICIPATION IN THE PLAN.

     (a)  Common Shares shall be offered for purchase under the Plan through a
          series of successive Offering Periods until such time as:  (i) the
          maximum number of Common Shares available for purchase under the Plan
          shall have been purchased; or (ii) the Plan shall have been sooner
          terminated.  The Initial Offering Period shall commence on July 1,
          2001 and end on December 31, 2001.  Thereafter, each Offering Period
          shall continue for a period of six months following commencement.

     (b)  An Eligible Employee may participate in the Plan by completing and
          filing with the Company or its designated record keeper a subscription
          agreement and an election form which authorizes payroll deductions
          from the Employee's pay for the purposes of acquiring Common Shares.
          Such deductions shall commence on (i) the first day of the applicable
          Offering Period following the end of the Employee's 6 month
          eligibility period, (ii) the first day of any Offering Period
          thereafter as elected by the Employee, or (iii) such other date within
          the Offering Period as may be specified by the Committee for entry
          into the Plan by Eligible Employees.  Such deductions shall continue
          until the Employee terminates participation in the Plan or the Plan is
          terminated.

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<PAGE>

     (c)  Notwithstanding the foregoing, an Eligible Employee shall not be
          granted a right to purchase Common Shares under this Plan on any Grant
          Date if:  (i) such employee, immediately after the right is granted,
          owns Common Shares possessing 5% or more of the total combined voting
          power or value of all classes of stock of the Company (for purposes of
          this clause, the rules of Code Section 424(d) shall apply in
          determining the stock ownership of an individual, and stock which an
          employee may purchase under outstanding rights hereunder shall be
          treated as stock owned by the employee); or (ii) such grant would not
          comply with the restrictions respecting the issuance/sale of Common
          Shares set forth in Section 2.

     5.   PAYROLL DEDUCTIONS.  Payroll deductions shall be made from the amounts
paid to each Participant for each payroll period in such amounts as the
Participant shall authorize in his election form.  The maximum payroll deduction
shall be 7% of the Participant's Base Pay; provided that no Eligible Employee
may be granted a right under the Plan which permits his rights to purchase
Common Shares under the Plan, and any other stock purchase plan of the Company
that is qualified under Section 423 of the Code, to accrue at a rate which
exceeds US$25,000 of Fair Market Value of such stock (determined at the time
such right is granted) for each calendar year in which the stock purchase right
is outstanding at any time.  If a Participant's Base Pay is insufficient in any
pay period to allow the entire payroll deduction elected under the Plan, no
deduction shall be made for such pay period.  Payroll deductions will resume
with the next pay period in which the Participant has pay sufficient to permit
the deduction.  Payroll deductions under the Plan shall be made in any period
only after all other withholdings, deductions, garnishments and the like have
been made.

     6.   CHANGES IN PAYROLL DEDUCTIONS.  Subject to the minimum and maximum
deductions set forth above, a Participant may change the amount of his payroll
deductions by filing a new election form with the Company or its designated
record keeper no later than 10 Business Days in advance of the next Offering
Period.  The change shall be effective until revoked in writing.

     7.   TERMINATION OF PARTICIPATION IN PLAN.  A Participant may, at any time
and for any reason, voluntarily terminate participation in the Plan by written
notification of withdrawal delivered to the appropriate payroll office at least
10 Business Days before the next pay period.  A Participant's participation in
the Plan shall be terminated upon termination of his or her employment with the
Company for any reason.  In the event a Participant's participation in the Plan
is voluntarily or involuntarily terminated, payroll deductions under the Plan
shall cease; provided, however, that any payroll deductions credited to such
Participant's Plan Account shall be used to purchase Common Shares on the next
Exercise Date.

     8.   PURCHASE OF SHARES.

     (a)  On each Grant Date, each Participant shall be granted, subject to the
          limitations and restrictions set forth in this Section and in Sections
          2, 4(c) and 5 of the Plan, a right to purchase on the Exercise Date
          that whole number of Common Shares determined by dividing the balance
          in the Participant's Plan Account as of the Exercise Date by the
          Exercise Price.  The maximum number of Common Shares

                                       4
<PAGE>

          subject to rights granted to any Participant on any Grant Date in
          respect of any Offering Period shall be the lesser of (i) 10,000
          Common Shares; or (ii) twice the whole number of Common Shares
          determined by dividing the estimated balance in the Participant's Plan
          Account to be accumulated as at the Exercise Date by the Fair Market
          Value of the Common Shares on the Grant Date.

     (b)  On each Exercise Date, each Participant shall be deemed to have
          exercised his or her rights granted pursuant to Section 8(a).  On each
          Exercise Date, the Company shall apply the funds credited to each
          Participant's Plan Account to the purchase (without commissions or
          fees) of that number of whole Common Shares determined by dividing the
          Exercise Price into the balance in the Participant's Plan Account on
          the Exercise Date.  Any amount remaining shall be carried forward to
          the next fiscal quarter of the Company unless the Plan Account is
          closed.

     (c)  As soon as practicable after each Exercise Date, a statement shall be
          delivered to each Participant which shall include the number of Common
          Shares purchased on the Exercise Date on behalf of such Participant
          under the Plan.

     (d)  When requested, a stock certificate for whole Common Shares in a
          Participant's Plan Account purchased pursuant to the Plan shall be
          issued in the Participant's name or in the name of the Participant and
          another person as joint tenants with right of survivorship or as
          tenants in common. When the Participant's employment terminates, a
          stock certificate for whole Common Shares in his Plan Account shall be
          issued in his name or in his name and the name of another person as
          joint tenants with right of survivorship or as tenants in common.  A
          cash payment shall be made for any fraction of a share in such
          account, if necessary to close the account.

     9.   RIGHTS AS A SHAREHOLDER.  As of the Exercise Date, a Participant shall
be treated as record owner of his shares purchased pursuant to the Plan.

    10.   RIGHTS NOT TRANSFERABLE.  Rights under the Plan are not transferable
by a Participant other than by will or the laws of succession, and are
exercisable during the Participant's lifetime only by the Participant or by the
Participant's guardian or legal representative.  No rights or payroll deductions
of a Participant shall be subject to execution, attachment, levy, garnishment or
similar process.

     11.  APPLICATION OF FUNDS.  All funds of Participant's received or held by
the Company under the Plan before purchase of the Common Shares shall be held by
the Company without liability for interest or other increment.

     12.  ADJUSTMENTS IN CASE OF CHANGES AFFECTING SHARES.  In the event of a
subdivision or consolidation of outstanding Common Shares of the Company, or the
payment of a stock dividend, the number of shares approved for the Plan shall be
increased or decreased proportionately, and such other adjustment shall be made
as may be deemed equitable by the Committee.  In the event of any other change
affecting the Common Shares, such

                                       5
<PAGE>

adjustment shall be made as shall be deemed equitable by the Committee to give
proper effect to such event.

     13.  ADMINISTRATION OF THE PLAN.  The Plan shall be administered by the
Committee.  The Committee shall have authority to construe and interpret the
provisions of the Plan and make rules and regulations for the administration of
the Plan, and its interpretations and decisions with regard to the Plan and such
rules and regulations shall be final and conclusive on all persons affected
thereby unless otherwise determined by the Board of Directors.  The day-to-day
administration of the Plan may be delegated to such officers and employees of
the Company or its subsidiaries as the Committee shall determine.  It is
intended that the Plan shall at all times meet the requirements of Code Section
423, if applicable, and the Committee shall, to the extent possible, interpret
the provisions of the Plan so as to carry out such intent.

     14.  AMENDMENTS TO THE PLAN.  The Board of Directors and the Committee
shall have the right, in its sole discretion, to alter, amend or discontinue the
Plan from time to time and at any time.  No such amendment or discontinuation,
however, may, without the consent of the Participant, alter or impair the
Participant's rights or increase his obligations under the Plan.  Any amendment
to the Plan will require the prior approval of the Exchange and may require the
approval of the Company's shareholders.  No amendment shall be made to increase
the number of Common Shares authorized to be acquired by Participants under the
Plan unless shareholder approval is obtained therefor.

     15.  TERMINATION OF THE PLAN.  The Plan shall terminate upon the earlier of
(a) the termination of the Plan by the Board of Directors of the Company as
specified below, or (b) the date no more shares remain to be purchased under the
Plan.  The Board of Directors of the Company may terminate the Plan as of any
date, and the date of termination shall be deemed an Exercise Date.  If on such
Exercise Date Participants in the aggregate have rights to purchase more Common
Shares than are available for purchase under the Plan, each Participant shall be
eligible to purchase a reduced number of Common Shares on a pro rata basis, and
any excess payroll deductions shall be returned to Participants, all as provided
by rules and regulations adopted by the Committee.

     16.  COSTS.  All costs and expenses incurred in administering the Plan
shall be paid by the Company.

     17.  GOVERNMENTAL REGULATIONS.  The Company's obligation to sell and
deliver its Common Shares pursuant to the Plan is subject to:

     (a)  the satisfaction of all requirements under applicable securities law
          in respect thereof and obtaining all regulatory approvals as the
          Company shall determine to be necessary or advisable in connection
          with the authorization, issuance or sale thereof, including
          shareholder approval, if required;

     (b)  the admission of such Common Shares to listing on any stock exchange
          on which Common Shares may then be listed; and

     (c)  the receipt from the Participant of such representations, agreements
          and undertakings as to future dealings in such Common Shares as the
          Company

                                       6
<PAGE>

          determines to be necessary or advisable in order to safeguard against
          the violation of the securities law of any jurisdiction.

In this connection, the Company shall take all reasonable steps to obtain such
approvals and registrations as may be necessary for the issuance of such Common
Shares in compliance with applicable securities law and for the listing of such
Common Shares on any stock exchange on which such Common Shares are then listed.

     18.  APPLICABLE LAW.  The Plan is established under the laws of the
Province of Ontario and the rights of all parties and the construction and
effect of each provision of the Plan shall be according to the laws of the
Province of Ontario and the laws of Canada applicable therein.  Notwithstanding
the foregoing, this Plan is intended to comply with Section 423 of the Code, if
applicable.  Any provisions required to be set forth in this Plan by such Code
section are hereby included as fully as if set forth in the Plan in full.

     19.  EFFECT ON EMPLOYMENT.  The provisions of this Plan shall not affect
the right of the Company or any subsidiary or any Participant to terminate the
Participant's employment with the Company or any subsidiary.

     20.  WITHHOLDING.  The Company reserves the right to withhold from stock or
cash distributed to a Participant any amounts which it is required by law to
withhold.

     21.  SALE OF COMPANY.  In the event of a proposed sale of all or
substantially all of the assets of the Company or a merger of the Company with
or into another corporation, the Company shall require that all outstanding
stock purchase rights hereunder be assumed or equivalent rights be substituted
by the successor or purchaser corporation, unless the Plan is terminated.

     22.  APPROVALS.  The Plan shall be subject to acceptance by the Exchange
and NASDAQ in compliance with all conditions imposed by the Exchange and NASDAQ.
Any stock purchase rights granted prior to such acceptance shall be conditional
upon such acceptance being given and any conditions complied with and no such
stock purchase rights may be exercised unless such acceptance is given and such
conditions are complied with.

     23.  CORPORATE ACTION.  Nothing contained in the Plan shall be construed so
as to prevent the Company from taking corporate action which is deemed by the
Company to be appropriate or in its best interest, whether or not such action
would have an adverse effect on the Plan.

     24.  LIMITATION ON SALE OF COMMON SHARES PURCHASED UNDER THE PLAN.  The
Plan is intended to provide Common Shares for investment and not for resale.
The Company does not, however, intend to restrict or influence any employee with
respect to any dealings with Common Shares save and except as provided in clause
17(c).  An employee may, therefore, sell Common Shares purchased under the Plan
provided he complies with all applicable securities laws.  Participants assume
the risk of any market fluctuations in the price of the Common Shares.

                                       7
<PAGE>

     25.  NOTICES.  All written notices to be given by Eligible Employees to the
Company may be delivered personally or by registered mail, postage prepaid,
addressed as follows:

               105 Schneider Road
               Kanata, Ontario, Canada
               K2K  1Y3

               Attention:  Secretary

Any notice given by the Participant pursuant to the terms of the stock purchase
rights hereunder shall not be effective until actually received by the Company
at the above address.  Any notice to be given to the Participant shall be
sufficiently given if delivered personally or by postage prepaid mail to the
last address of the Participant on the records of the Company or the applicable
subsidiary and shall be effective seven days after mailing.

     26.  SHAREHOLDER APPROVAL.  The Plan shall become effective on the date it
is adopted by the Board of Directors of the Company, provided that the
shareholders of the Company approve it within 12 months after such date.

                                       8

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