Document:

EXHIBIT 10.4

                        SUMMARY OF DIRECTOR COMPENSATION

Attached is Schedule B which  details  Board of Director  and  Committee  Member
compensation. Directors that are salaried officers of the corporation receive no
director or committee compensation. Schedule B is approved annually by the Board
of Directors.

<PAGE>

                                                          Exhibit 10.4 Continued

                                   SCHEDULE B
                                 JANUARY 5, 2007

DIRECTORS' COMPENSATION:          Non-employee Directors $14,000 annual retainer
------------------------          plus $1,500 per meeting  attended of Tri  City
                                  National Bank and  $300  per meeting  attended
                                  of Tri City  Bankshares  Corporation,  payable
                                  quarterly

EXECUTIVE COMMITTEE:              Annual compensation, payable quarterly:
--------------------

   Henry Karbiner,Jr., Chairman   Henry Karbiner, Jr. - no compensation
   Ronald K. Puetz                Ronald K. Puetz - no compensation
   William Gravitter              William Gravitter                  $17,900
   Sanford Fedderly               Sanford Fedderly                   $12,150
   Christ Krantz                  Christ Krantz                      $ 5,600

LOAN COMMITTEE:
---------------
   William Werry, Chairman        Non-employee Directors:
   Robert W. Orth                 Chairman $750 per meeting attended
   Sanford Fedderly               Other members $500 per meeting attended
   William Gravitter              Payable quarterly
   Henry Karbiner, Jr.
   Christ Krantz
   Ronald K. Puetz
   Scott A. Wilson

AUDIT COMMITTEE:
----------------
   William N. Beres, Chairman     Chairman $10,000 per annum, payable quarterly
   Sanford Fedderly               Non-employee members $250 per meeting attended
   Christ Krantz                  Payable quarterly
   Brian McGarry

CRA/COMPLIANCE COMMITTEE:
-------------------------
   Scott A. Wilson, Chairman      Non-employee Directors:
   David A. Ulrich, Jr.           $250 per meeting attended, payable quarterly
   Scott D. Gerardin
   Georgia Franecki
   Douglas Schnier
   Michael Koenen
   Michael Phillips
   Mark Dandrea
   Kristen GaglianoEXHIBIT 10.5

                  DESCRIPTION OF CONSULTING ARRANGEMENT BETWEEN
                       REGISTRANT AND MR. WILLIAM J. WERRY

William  J.  Werry,  a retired  unit bank  President,  has been  retained  as an
independent  consultant  advising Chairman  Karbiner on a range of matters.  His
compensation is approved annually by the Board of Directors of Tri City National
Bank. His current  annual  compensation  for these services is $16,800,  payable
monthly, and is in addition to his compensation as a director.EMPLOYMENT AGREEMENT - GREGORY W. BURNESKE

    

      EXHIBIT
        10.29

       

       

      EMPLOYMENT
        AGREEMENT

      

      This
        is an Employment Agreement (“Agreement”) between Winland
        Electronics, Inc., a Minnesota corporation (the “Corporation”), and Gregory W.
        Burneske (“Employee”).

      

      

      Recitals

      

      WHEREAS,
        Employee has been employed with the Corporation; and

      

      WHEREAS,
        Employee and the Corporation are parties to an existing
        written employment agreement dated effective as of May 17, 2004, (hereinafter
        referred to as “the Prior Employment Agreement”); and

      

      WHEREAS,
        Employee and the Corporation have agreed to several
        changes with respect to Employee’s employment;

      

      NOW,
        THEREFORE, in consideration of the mutual covenants and
        undertakings set forth below, the parties agree as follows:

      

      

      ARTICLE
        1

      EMPLOYMENT;
        TERM OF EMPLOYMENT

      

      1.1) Employment.
        The Corporation hereby agrees to
        continue to employ Employee and Employee hereby agrees to continue employment
        with the Corporation in the position of Vice President of Engineering upon
        the
        terms and conditions hereinafter set forth in this Agreement effective as
        of the
        date on which Employee executes this Agreement.

      

      1.2) Term.
        Employee’s employment with the Corporation
        shall continue until terminated by Employee or the Corporation in accordance
        with Articles 4 or 6.

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      ARTICLE
        2

      DUTIES;
        EXTENT OF SERVICES

      

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

       

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

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      

        ARTICLE
          3

        COMPENSATION

        

      

       

      3.1) Compensation
        for Services. As compensation for
        his services to the Corporation, the Corporation will pay Employee as set
        forth
        in the attached Exhibit A, which shall be reviewed by the Board of Directors
        and/or its designee from time to time but no less than annually. All
        compensation paid to Employee shall be inclusive of all applicable income,
        social security, and other taxes and charges that are required by law to
        be
        withheld by the Corporation or that are requested to be withheld by Employee.
        All regular compensation shall be payable in accordance with the Corporation’s
        usual payroll schedule.

      

      3.2) Benefits.
        Employee shall be eligible to
        participate in or receive benefits under the Corporation’s paid time off (PTO)
        policy, employee benefit plans, health plans, or arrangements, if any, made
        available from time to time by the Corporation to its employees as set forth
        in
        an employee manual or otherwise including, but not limited to, medical, dental,
        and long-term disability coverage, to the extent that Employee’s age, tenure,
        and title make him eligible to receive those benefits. Nothing in this Agreement
        is intended to or shall in any way restrict the Corporation’s right to amend,
        modify or terminate any of its benefits or benefit plans during the term
        of
        Employee’s employment. 

      

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

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      ARTICLE
        4

      TERMINATION

      

      4.1) Termination.
        Either Employee or the Corporation
        may terminate the employment relationship at any time, for any or no reason,
        upon ninety (90) days’ written notice to the other party. The Corporation shall
        have the right, in its sole discretion, to provide Employee ninety (90) days’
pay and benefits in lieu of written notice. Notwithstanding the foregoing,
        the
        Corporation shall have the right to terminate Employee’s employment immediately
        for “Cause” as defined in Section 4.4 below.

      

      4.2) Return
        of Property. Immediately upon termination
        (or at such earlier time as requested by the Corporation’s Board of Directors
        and/or its President and Chief Executive Officer or its/his designees), Employee
        shall deliver to the Corporation all of its property, including but not limited
        to all work in progress, research data, equipment, originals and copies of
        documents and software, customer information and lists, financial information,
        and all other material in Employee’s possession or control that belongs to the
        Corporation or its customers or contains Confidential Information (as defined
        in
        Section 5.1(E) below).

      

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

      

      4.4) Severance.
        If Employee satisfies the conditions
        set forth in Section 4.4(C) of this Agreement, the Corporation will provide
        Employee the severance benefits described in this Section 4.4. Nothing in
        this
        provision is intended to limit the Corporation’s right to provide Employee
        ninety (90) days’ pay and benefits in lieu of written notice or Employee’s right
        to receive such pay and benefits, nor shall such pay and benefits in any
        way
        limit the severance contemplated by Section 4.4 of this Agreement.

      

      A. Termination
        by Employer with Cause. For purposes of
        this Article 4, “Cause” shall be defined to include, but not be limited to, the
        following:

      

      	1.  	
              Employee’s
                neglect of any of his material duties or his
                failure to carry out reasonable directives from the Board of Directors,
                the Corporation’s President and Chief Executive Officer, or its/his
                designees, or failure to comply with rules, regulations or policies
                of the
                Corporation or its Board of Directors;

            

      

      	2.  	
              Any
                willful or deliberate misconduct that is injurious to
                the Corporation, its business reputation or its
                goodwill;

            

      

      	3.  	
              Dishonesty
                in any dealings between Employee and the
                Corporation or between Employee and vendors or customers of the
                Corporation;

            

      

      	4.  	
              Employee’s
                commission of a felony, or other crime involving
                moral turpitude or immoral conduct, whether or not against the Corporation
                and whether or not committed during Employee’s employment;
                

            

      

      	5.  	
              Employee’s
                acting in a manner adverse to the best interests
                of the Corporation including, but not limited to, being under the
                influence of alcohol or illegal drugs while on the job;
                or

            

      

      	6.  	
              Employee’s
                breach of any term of this
                Agreement.

            

      

      B. Termination
        by Employee for Good Reason. For
        purposes of this Article 4, “Good Reason” shall be defined to include the
        following:

      

      	1.  	
              The
                assignment to Employee, without Employee’s consent, of
                employment responsibilities that are not of comparable responsibility
                and
                status to the employment responsibilities described in this
                Agreement;

            

      

      	2.  	
              The
                Corporation’s reduction of Employee’s base salary
                without Employee’s consent except for any reduction implemented as part of
                a broad-based employee cost reduction initiative;
                or

            

      

      	3.  	
              The
                Corporation’s requiring Employee to be based anywhere
                other than within fifty (50) miles of the Corporation’s principal location
                at the time of Employee’s execution of this
                Agreement.

            

      

      	C.  	
              Severance
                Benefits Upon Termination by the Corporation
                Without Cause or Termination by Employee for Good Reason. If (1)
                Employee’s employment is terminated by the Corporation without Cause in
                accordance with Section 4.1 or is terminated by Employee for Good
                Reason
                in accordance with Section 4.4(B), and (2) Employee executes and does
                not rescind a separation agreement supplied by the Corporation, which
                will
                include, but not be limited to, a comprehensive release of all legal
                claims, then the Corporation will (a) pay Employee in a lump sum
                or at
                regular payroll intervals, at the Corporation’s option, an amount equal to
                six (6) months of Employee’s then current base salary, subject to required
                and authorized deductions and withholdings; and (b) continue to pay
                the
                Corporation’s ordinary share of premiums for three (3) calendar months for
                Employee’s COBRA continuation coverage in the Corporation’s group medical,
                dental, and life insurance plans (as applicable), provided Employee
                elects
                such continuation coverage and timely pays Employee’s share of such
                premiums, if any.

            

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      

      ARTICLE
        5

      RESTRICTION
        AGAINST COMPETITION;
        CONFIDENTIALITY

      

      5.1) Restriction
        Against Competition. Employee
        acknowledges that he is employed in a position of trust and confidence and
        has
        had and will continue to have access to and become familiar with the unique
        methods, services and procedures used by the Corporation and that, as part
        of
        Employee’s duties, he has developed and will continue to develop and maintain
        close working relationships with vendors, customers and employees of the
        Corporation and its subsidiaries. Employee further acknowledges that the
        Corporation and its subsidiaries, over the years, through goodwill, advertising,
        honest business methods and aggressive promotion, have built a lucrative
        business and obtained loyal vendors and customers. Employee further acknowledges
        that disclosure or use of any of the Corporation’s Confidential Information
        relating to the operation of the business of the Corporation or its subsidiaries
        (as defined in Section 5.1(E) of this Agreement) could have a serious
        detrimental effect upon the Corporation, the monetary loss from which would
        be
        difficult, if not impossible, to measure. In consequence of the foregoing,
        and
        in consideration for the Corporation’s agreement to provide severance rights and
        benefits to Employee as set forth in Article 4 of this Agreement and the
        Change
        of Control rights and benefits to Employee as set forth in Article 6 of this
        Agreement, which Employee acknowledges and agrees are rights and benefits
        to
        which he is otherwise not entitled, Employee agrees as follows:

      

      A. Noncompetition.
        During Employee’s employment and
        for the period specified below following a termination, Employee agrees to
        the
        following (referred to hereinafter as “Employee’s Noncompetition
        Obligations”):

      

      
        	 	
                1.

              	
                Not
                  to directly or indirectly engage in, own, manage,
                  operate, join, control, consult with, participate in the ownership,
                  operation or control of, be employed by, perform services for,
                  contract
                  with or be connected with as a director, officer, principal, shareholder,
                  member, agent, consultant, salesperson or otherwise, any person,
                  corporation, partnership or other entity that produces or markets
                  any
                  product or service competitive with the Corporation’s environmental
                  controls and sensors business, or conspire with others to do so;
                  and

              

      

      

      
        	 	
                2.

              	
                Not
                  to directly or indirectly engage in, own, manage,
                  operate, join, control, consult with, participate in the ownership,
                  operation or control of, be employed by, perform services for,
                  contract
                  with or be connected with as a director, officer, principal, shareholder,
                  member, agent, consultant, salesperson or otherwise, any person,
                  corporation, partnership or other entity that produces or markets
                  any
                  product or service competitive with the Corporation’s electronic
                       manufacturing services (“EMS”) business, or conspire with others to do so,
                  in any state where the Corporation markets its EMS business or,
                  as of
                  Employee’s termination date, has articulable plans to actively do
                  so.

              

      

      

      
        	 	
                3.

              	
                Following
                  a termination from employment, Employee’s
                  Noncompetition Obligations will continue in effect as
                  follows:

              

      

      

      a. For
        the two-year period immediately following a Change of
        Control Termination pursuant to Section 6.2 herein, or 

      

      b. For
        the one-year period immediately following any other
        termination of his employment, whether voluntary or involuntary and regardless
        of the reason for and timing of the termination. 

      

      B. Exceptions
        to Noncompetition. The restrictions
        contained in Section 5.1(A) will

      

      
        	 	
                1.

              	
                Not
                  prevent Employee from the
                  following:

              

      

      

      a. Owning
        up to three percent (3%) of a publicly held company
        that competes with the Corporation and/or its subsidiaries, so long as Employee
        does not otherwise violate the terms of this Article 5; or

      

      b. Accepting
        employment with a large diversified organization
        in a separate and distinct division that does not compete, directly or
        indirectly, with the Corporation on the following conditions: Prior to accepting
        such employment, Employee provides the Corporation written assurance that
        he
        will not provide any of the Corporation’s trade secrets or other Confidential
        Information to the new employer, will not render any services, directly or
        indirectly, to any division or business unit that competes, directly or
        indirectly, with the Corporation, and that he will not violate any of the
        terms
        of Article 5 of this Agreement; or

      

      
        	 	
                2.

              	
                Have
                  no force or effect if the circumstances of Employee’s
                  termination of employment trigger the Corporation’s obligation to pay
                  severance pursuant to Section 4.4 or Change of Control Termination
                  amounts
                  pursuant to Article 6 herein and the Corporation is unable to pay
                  the
                  amount due to Employee as a result of the Corporation’s liquidation or
                  insolvency.

              

      

      

      C. Nonsolicitation
        of Customers. Employee agrees he
        will not, during his employment and for a two-year period immediately following
        termination of his employment hereunder, regardless of the reason for and
        timing
        of the termination, attempt to divert any business of the Corporation or
        its
        subsidiaries by soliciting, contacting, or communicating with any customers
        of
        the Corporation or its subsidiaries with whom Employee, or employees under
        his
        supervision, had contacts during the year preceding termination of his
        employment or any persons or entities who might reasonably be considered
        within
        the class of customers actively solicited by the Corporation or its
        subsidiaries.

      

      D. Nonsolicitation
        of Employees and Contractors.
        Employee agrees he will not, during his employment and for a two-year period
        immediately following termination of his employment, regardless of the reason
        for and timing of the termination, solicit any then-current employee or
        contractor of the Corporation or its subsidiaries for the purpose of hiring
        or
        attempting to hire such employee or contractor, nor will Employee in any
        manner
        attempt to persuade or encourage any of the then-current employees or
        contractors of the Corporation or its subsidiaries to discontinue their
        employment or contractual engagement with the Corporation or its
        subsidiaries.

      

      E. Confidential
        Information. Employee will not, during
        or after the term of this Agreement, directly or indirectly, use or disclose
        any
        of the Corporation’s Confidential Information relating to the operation of the
        business of the Corporation or its subsidiaries to any person, firm,
        corporation, association, or other entity for any reason or purpose whatsoever
        except the furtherance of the interests of the Corporation or its subsidiaries.
        For purposes of this Agreement, “Confidential Information” includes but is not
        limited to the following:

      

      Information
        not generally known and which is proprietary to the
        Corporation including, without limitation, use of or customization to computer
        application programs; financial, management, or customer data that is provided,
        or to which access is provided, in the course of employment by the Corporation;
        data or conclusions or opinions formed by Employee in the course of employment;
        policies and procedures; manuals; trade secrets; methods, procedures, or
        techniques pertaining to the business of the Corporation or a customer of
        the
        Corporation; specifications for products or services of the Corporation;
        systems; price lists; marketing plans; sales or service analyses; financial
        information; customer names or other information; vendor names or other
        information; employee names or other information; research and development
        data;
        diagrams; drawings; videotapes, audiotapes, or computerized media used as
        training regimens; notes, memoranda, notebooks, and all other records or
        documents that are handled, seen, or used by Employee in the course of
        employment; information not likely to be available to the general public
        without
        the expenditure of time or expense; and any other information designated
        as such
        by the Corporation in its sole discretion as confidential. “Confidential
        Information” does not include (i) information which is in the public domain,
        (ii) information which, through no fault of Employee, hereafter comes into
        the
        public domain, or (iii) information disclosed to Employee by third parties
        who
        do not violate duties to the Corporation in disclosing that information.

      

      5.2) Copyrights.

      

      A. Employee
        hereby acknowledges and agrees that, to the
        extent any work performed by Employee for the Corporation gives rise to the
        creation of any copyrightable material (“Work”), all such Work, including all
        text, software, source code, scripts, designs, diagrams, documentation,
        writings, visual works, or other materials shall be deemed to be a work made
        for
        hire for the Corporation. 

      

      B. To
        the extent that title to any Work may not, by operation
        of law, vest in the Corporation or such Work may not be considered work made
        for
        hire for the Corporation, all rights, title and interest therein were assigned
        and are hereby irrevocably assigned to the Corporation, including but not
        limited to the right to sue for past, present, and future infringement of
        any
        Work. All such Work shall belong exclusively to the Corporation, with the
        Corporation having the right to obtain and to hold in its own name, copyrights,
        registrations or such other protection as may be appropriate to the subject
        matter, and any extensions and renewals thereof.

      

      C. To
        the extent that title to any Work may not be assigned
        to the Corporation, Employee hereby grants the Corporation a worldwide,
        nonexclusive, perpetual, irrevocable, fully paid-up, royalty-free, unlimited,
        transferable, sublicensable license, without right of accounting, in such
        Work.

      

      D. Employee
        agrees to execute and deliver without further
        consideration such documents and to perform such other lawful acts as the
        Corporation, its successors and assigns may deem necessary to fully secure
        the
        Corporation’s rights, title or interest in all Works as set forth in this
        Agreement.

      

      5.3) Inventions.

       

      A. Employee
        agrees to communicate promptly and fully to the
        Corporation all inventions, discoveries, improvements or designs conceived
        or
        reduced to practice by Employee during the period of his employment with
        the
        Corporation (alone or jointly with others), and, except as provided in Section
        5.3(C), Employee will and hereby does assign to the Corporation and/or its
        nominees all of his right, title and interest in such inventions, discoveries,
        improvements or designs and all of his right, title and interest in any patents,
        patent applications or copyrights based thereon without obligation on the
        part
        of the Corporation to pay any further compensation, royalty or payment to
        Employee.

      

      B. Employee
        further agrees to assist the Corporation and/or
        its nominee (without charge but at no expense to Employee) at any time and
        in
        every proper way to obtain and maintain for its and/or their own benefit,
        patents for all such inventions, discoveries and improvements and copyrights
        for
        all such designs.

      

      C. This
        Agreement does not obligate Employee to assign to the
        Corporation any invention, discovery, improvement or design for which no
        equipment, supplies, facility or trade secret information of the Corporation
        was
        used and which was developed entirely on Employee’s own time, and (i) which does
        not relate (A) directly to the business of the Corporation or (B) to the
        Corporation’s actual or demonstrably anticipated research or development, or
        (ii) which does not result from any work performed by Employee for the
        Corporation. 

      

      D. Employee
        shall keep complete, accurate and authentic
        accounts, notes, data and records of all inventions, discoveries, improvements
        or designs in the manner and form requested by the Corporation. Such accounts,
        notes, data and records shall be the property of the Corporation, and upon
        its
        request Employee shall promptly surrender the same to the Corporation.

      

      E. The
        obligations of this Section 5.3 shall continue beyond
        the termination of Employee’s employment with respect to any invention,
        discovery, improvement or design conceived or made by Employee during the
        period
        of Employee’s employment with the Corporation and shall be binding upon
        Employee’s assigns, executors, administrators, and other legal representatives.
        In the event Employee is called upon to render assistance to the Corporation
        pursuant to Section 5.3(B) after termination of Employee’s employment with the
        Corporation, the Corporation shall pay Employee reasonable compensation for
        the
        assistance rendered and shall call upon Employee for assistance at such
        reasonable times so as not to interfere with Employee’s new employment or
        business. For purposes of this Agreement, any invention, discovery, improvement
        or design relating to the business of the Corporation upon which Employee
        files
        a patent, trademark or copyright application within one (1) year after
        termination of Employee’s employment with the Corporation shall be presumed to
        have been made while Employee was employed by the Corporation, subject to
        proof
        to the contrary by good faith, written and duly corroborated records
        establishing that such invention, discovery, improvement or design was conceived
        and made by Employee following termination of employment and without violation
        of his continuing obligations under Section 5.1(E) hereof.

      

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

      

      5.5) Acknowledgement.
        Employee acknowledges that he
        has carefully considered the restrictions contained in this Article 5 and
        determined that the restrictions in this Article 5 will not unduly restrict
        him
        in securing other suitable employment in the event of the termination of
        his
        employment with the Corporation.

      

      

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      ARTICLE
        6

      CHANGE
        OF CONTROL

      

      6.1) Change
        of Control Right and Payment. In
        consideration for Employee entering into the noncompetition, nonsolicitation,
        confidentiality, and other obligations set forth in Article 5, the following
        Change of Control rights and benefits will apply during the term of Employee’s
        employment with Corporation:

      

      A. For
        a period of two (2) years following a Change of
        Control, as defined in Section 6.2., Employee shall have the right, within
        Employee’s sole discretion, to terminate employment with the Corporation for a
“Change of Control Good Reason” as defined in Section 6.2. Such termination
        shall be accomplished by Employee giving ninety (90) days’ written notice to the
        Corporation of Employee’s decision to terminate. 

      

      B. In
        the event of a Change of Control Termination, as
        defined in Section 6.2., then, in lieu of any severance benefits payable
        under
        Section 4.4 and without further action by the Board of Directors, the
        Corporation shall pay to Employee an amount equal to Employee’s compensation
        (including any (a) base salary, and (b) annual bonuses, but excluding non-cash
        fringe benefits such as insurance and perquisites) for the two (2) completed
        fiscal years preceding such termination, which amount shall be paid by the
        Corporation in 24 equal monthly installments beginning on the first day of
        the
        calendar month following the calendar month in which such Change of Control
        Termination occurs with the remaining payments made on the first day of each
        of
        the succeeding 23 months. Notwithstanding the foregoing, in no event shall
        Employee receive any Change of Control Action, as defined below, which would
        constitute a “parachute payment” for purposes of Code Section 280G, or any
        successor provision, and the regulations thereunder. In the event any Change
        of
        Control Actions would constitute a “parachute payment,” Employee shall have the
        right to designate those Change of Control Actions which would be reduced
        or
        eliminated so that Employee will not receive a “parachute payment.” For purposes
        of this Section 6.1, a “Change of Control Action” shall mean any payment,
        benefit or transfer of property in the nature of compensation paid to or
        for the
        benefit of Employee under any arrangement which is considered contingent
        on a
        Change of Control for purposes of Code Section 280G, including, without
        limitation, any and all of the Corporation’s salary, bonus, incentive,
        restricted stock, stock option, compensation or benefit plans, programs or
        other
        arrangements, and shall include any benefits payable under this Agreement.
        

      

      C. Interest.
        In the event the Corporation does not
        make timely payment of the Change of Control Termination amounts described
        in
        Section 6.1, Employee shall be entitled to receive interest on any unpaid
        amount
        at the prime rate of interest (or such comparable index as may be adopted)
        published from time to time by the Wall Street Journal.

      

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

      

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

      

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

      

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

      

      
        	 	
                1.

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

              

      

      

      
        	 	
                2.

              	
                A
                  merger or consolidation to which the Corporation is a
                  party if the individuals and entities who were shareholders of
                  the
                  Corporation immediately prior to the effective date of such merger
                  or
                  consolidation have beneficial ownership (as defined in Rule 13d-3
                  under
                  the Securities Exchange Act of 1934) of less than fifty percent
                  (50%) of
                  the total combined voting power for election of directors of the
                  surviving
                  corporation following the effective date of such merger or consolidation;
                  or

              

      

      

      
        	 	
                3.

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

              

      

      

      
        	 	
                4.

              	
                A
                  change in the composition of the Corporation’s Board of
                  Directors at any time after Employee’s execution of this Agreement such
                  that the Continuing Directors cease for any reason to constitute
                  at least
                  a fifty-one percent (51%) majority of the
                  Board.

              

      

      

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

      

      
        	 	
                1.

              	
                Termination
                  of Employee’s employment by the Corporation for
                  any reason other than pursuant to Section 4.4(A) (a “Cause” termination);
                  or

              

      

      

      
        	 	
                2.

              	
                Termination
                  of Employee’s employment by Employee pursuant to
                  Section 6.1. A Change of Control Termination by Employee shall
                  not include
                  termination by reason of death or
                  disability.

              

      

      

      D. “Change
        of Control Good Reason” shall mean a good faith
        determination by Employee that one or more of the following events has occurred,
        without Employee’s express written consent, after a Change of Control:

      

      
        	 	
                1.

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

              

      

      

      
        	 	
                2.

              	
                A
                  material reduction by the Corporation in Employee’s total
                  compensation as in effect immediately prior to the Change of Control
                  or as
                  the same may be increased from time to
                  time;

              

      

      

      
        	 	
                3.

              	
                The
                  Corporation requiring Employee to be based anywhere
                  other than within fifty (50) miles of Employee’s job location at the time
                  of the Change of Control;

              

      

      

      
        	 	
                4.

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

              

      

      

      
        	 	
                5.

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

              

      

      

      
        	 	
                6.

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

              

      

      

      

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      ARTICLE
        7

      MISCELLANEOUS

      

      7.1) Severability.
        If any term or provision of this
        Agreement shall be held to be invalid or unenforceable for any reason, such
        term
        or provision shall be ineffective to the extent of such invalidity or
        unenforceability without invalidating the remaining terms or provisions of
        this
        Agreement. Without in any way limiting the generality of the foregoing, in
        the
        event that any provision of Article 5 hereof is held invalid or unenforceable
        by
        a court of competent jurisdiction, the Corporation and Employee agree that
        that
        part should modified by the court to make it enforceable to the maximum extent
        possible. If the part cannot be modified, then that part may be severed and
        the
        other parts of this Agreement shall remain enforceable.

      

      7.2) Section
        409A Requirements. The Corporation and
        Employee recognize and agree that revisions to the post-termination payments
        and
        benefits provisions contemplated by Section 4.4 and Article 6 may be necessary
        and desirable to comply with the requirements of Internal Revenue Code Section
        409A, and the regulations, notices and other guidance of general application
        issued thereunder (hereinafter, “409A Requirements”), in a manner intended to
        prevent any adverse tax consequences to Employee and the Corporation as a
        result
        of any failure to so comply. Any such revisions will be made only with the
        written consent of both parties; and each of them agrees to cooperate in
        good
        faith to make any such revisions in a manner that timely complies with the
        409A
        Requirements.

      

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

      

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

      

      7.5) Entire
        Agreement. This Agreement contains the
        entire agreement of the parties concerning the employment of Employee by
        the
        Corporation and supersedes and replaces any prior agreement or arrangement
        relative to Employee’s employment by the Corporation, whether oral or written,
        including, but not limited to, any Prior Employment Agreement. Except as
        provided in Section 7.1 of this Agreement, no modification, supplement, or
        amendment of any provision hereof shall be valid unless made in writing and
        signed by the parties against whom enforcement of any waiver, change,
        modification, extension or discharge is sought.

      

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

      

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

      

      7.8) Obligations
        Which Survive Termination. The
        obligations and remedies of Sections 4.2, 4.3, 4.4, and Articles 5, 6 and
        7 of
        this Agreement shall survive the termination of this Agreement or any successor
        relationship and the termination of Employee’s employment for any reason, except
        as expressly otherwise provided for in this Agreement.

      

      7.9) Successors
        and Assigns. This Agreement shall
        inure to the benefit of and be binding upon Corporation and Employee and
        their
        respective successors, assigns, heirs, executors, and administrators, except
        that the services to be performed by Employee are personal and are not
        assignable. 

      

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

      

      

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

      

      

      WINLAND
        ELECTRONICS, INC.

       

       

      
        	 Date:    February 2, 2007	
                 By:  
                  /s/ Lorin E. Krueger

              
	 	
                Lorin
                  E. Krueger

              
	 	
                Its
                  President and CEO

              

      

       

       

      
 

      
        	 Date:    February 2, 2007	 By:   /s/  Gregory W.
                Burneske
	 	
                Gregory
                  W.
                  Burneske

              
	 	
                Employee

              

      

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      EXHIBIT
        A

      

      In
        consideration of the mutual covenants and undertakings set
        forth in the Employment Agreement between Winland Electronics, Inc., a Minnesota
        corporation (the “Corporation”), and Gregory W. Burneske (“Employee”), the
        parties agree as follows:

      

      1. Base
        Salary. For each fiscal year of the
        Corporation during Employee’s employment, the Corporation shall pay Employee an
        annual base salary (“Base Salary”) in the amount determined by the Compensation
        Committee of the Corporation’s Board of Directors, provided that such amount
        shall not be less than the Base Salary for the immediately preceding fiscal
        year
        without the consent of Employee unless such reduction is implemented as part
        of
        a broad-based employee cost reduction initiative. For the fiscal year from
        January 1, 2007 through December 31, 2007, Employee’s annual Base Salary shall
        be $120,000, payable in accordance with the Corporation’s usual payroll
        schedule.

      

      2. Bonus.
        The Corporation may, but is not obligated
        to, pay Employee an annual bonus (“Annual Bonus”) consisting of stock options or
        a cash payment or both, the amounts of which, if any, shall be determined
        by the
        Compensation Committee of the Board of Directors. If any Annual Bonus is
        earned
        by Employee, it shall be paid within ninety (90) days after the end of the
        Corporation’s applicable fiscal year. 

      

      3. Amendment.
        The Board of Directors and/or its
        designee reserves the right to modify, supplement and/or amend the terms
        of this
        Exhibit A from time to time with written notice to Employee.

      

      IN
        WITNESS WHEREOF, the parties hereto have caused this Exhibit A
        to be duly executed and delivered as of the day and year written below.

      
         

         

         

         

        
          	 Date:    February 2, 2007	
                   By:   /s/
                    Lorin E. Krueger

                
	 	
                  Lorin
                    E. Krueger

                
	 	
                  Its
                    President and CEO

                

        

         

         

        
 

        
          	 Date:    February 2, 2007	 By:   /s/  Gregory W.
                  Burneske
	 	
                  Gregory
                    W.
                    Burneske

                
	 	
                  Employee

                

        

       

      4126217_3.DOC

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}]]