Document:

ex10-25.htm

     

    
Exhibit
10.25             

    ASTEC
INDUSTRIES, INC.

    SUPPLEMENTAL EXECUTIVE
RETIREMENT PLAN

    AMENDMENT
AND RESTATEMENT EFFECTIVE JANUARY 1, 2008

    

    

    Effective
January 1, 1995, Astec Industries, Inc. established this Supplemental Deferred
Compensation Plan (the “Plan”) to enhance for certain highly compensated
Executive Officers the retirement benefit provided by Astec Industries,
Inc.  Effective as of January 1, 2008, Astec Industries, Inc. hereby
amends and restates the Plan in its entirety, primarily to add certain provisions required to be included in the
Plan pursuant to Internal Revenue Code Section 409A.  As permitted
under guidance issued under Code Section 409A, the Plan does not contain
provisions retroactive to the effective date of Section 409A (January 1, 2005),
but the Plan has complied with Section 409A and guidance thereunder since the
effective date of such legislation.

    

    

    ARTICLE I -
DEFINITIONS

    

    As used
herein, the following terms shall have the following meanings unless a different
meaning is plainly required by the context:

    

    
      	
              1.1

            	
              ACCOUNT:  The
      bookkeeping account maintained by the Administrator for each Participant
      under the Plan, which reflects the credits to the Participant’s Account
      under Section 3.1 and the deemed Investment Results
      thereon.  For a Participant who received credits under this Plan
      prior to January 1, 2005, the Account includes both a Pre-2005 Company
      Contribution Account (which is exempt from Section 409A) and a Post-2004
      Company Contribution Account (which is subject to Section
      409A).

            

    

    

    
      	
              1.2

            	
              ADMINISTRATOR:  The
      Committee designated by the Board to administer the Basic
      Plan.

            

    

    

    
      	
              1.3

            	
              BASIC
      PLAN:  The Astec Industries, Inc. 401(k) Retirement Plan,
      as it may be amended from time to
time.

            

    

    

    
      	
              1.4

            	
              BENEFICIARY:  The
      party or parties entitled to receive a Participant’s Benefit in the event
      of the Participant’s death.

            

    

    

    1.5           BENEFIT:  The
Benefit payable to the Participant pursuant to Article 3.

    

    1.6           BOARD:  The
Board of Directors of Astec Industries, Inc.

    

    1.7           CODE:  The
Internal Revenue Code of 1986, as amended.

    

    1.8           COMPANY:  Astec
Industries, Inc.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    
      	
              1.9

            	
              COMPENSATION:  The
      total base salary and annual bonuses paid by Astec Industries, Inc. to the
      Participant during the applicable calendar year, including salary
      reduction pre-tax contributions made pursuant to a Code Section 401(k)
      plan.  Compensation shall be determined by excluding
      reimbursements or other expense allowances, fringe benefits (cash and
      non-cash), moving expenses, and welfare benefits (and for this purpose,
      workers’ compensation payments of any type and severance pay of any type
      shall be considered “welfare benefits,” but sick pay, short term
      disability and vacation pay are not considered “welfare
      benefits”).  In addition, Compensation shall be determined by
      excluding the
      following types of remuneration:

            

    

    

    
      	
               
      

            	
              (1)

            	
              Employer
      contributions to a plan of deferred compensation which are not includible
      in the employee’s gross income for the taxable year in which contributed,
      or employer contributions under a simplified employee pension plan, or any
      distributions from a plan of deferred
  compensation;

            

    

    

    
      	
               
      

            	
              (2)

            	
              Amounts
      realized from the exercise of a stock option, or when restricted stock (or
      property) held by the employee either becomes freely transferable or is no
      longer subject to a substantial risk of forfeiture;
  and

            

    

    

    
      	 	
              (3)  

            	
              Amounts
      realized from the sale, exchange or other disposition of stock acquired
      under a qualified stock option.

            

    

    

    
      	
              1.10

            	
              INVESTMENT
      RESULTS:  The deemed return on the investment of the
      contributions on behalf of each Participant during each calendar year
      under this Plan.  The investment options that are available for
      selection by Participants under this Plan from time to time generally
      shall be the same as the investment options made available to participants
      under the Basic Plan, provided, however, and notwithstanding the
      foregoing, that (a) a Participant may make separate and different
      investment elections under this Plan and the Basic Plan; (b) there shall
      be no self-directed brokerage option under this Plan; (c) there shall be
      no restriction under this Plan on the percentage of a Participant’s
      Account under this Plan that may be deemed to be invested in common stock
      of the Company; (d) the Administrator may restrict investment elections
      with respect to deemed investment in common stock of the Company to the
      extent necessary to comply with federal and state securities law; and (e)
      the Administrator may make such other changes to the investment options
      offered under this Plan from time to time as the Administrator deems
      necessary or appropriate in its
discretion.

            

    

    

    
      	
              1.11

            	
              PARTICIPANT:  Those
      executive officers of Astec Industries, Inc. determined by the Board to be
      eligible and designated by the Board as participants from time to
      time.

            

    

    

    
      	
              1.12

            	
              PRE-2005 COMPANY
      CONTRIBUTION ACCOUNT: If applicable, Pre-2005 Company Contribution
      Account means the value of the Participant’s Account on December 31, 2004,
      together with the Investment Results with respect to such Account
      thereafter.

            

    

    
      
        
           

        

         

      

      
        2

        
          

        

      

      
         

      

    

    1.13         POST-2004 COMPANY
CONTRIBUTION ACCOUNT:  The value of the Participant’s Account,
minus the value of the Participant’s Pre-2005 Company Contribution
Account.  This generally means the Participant’s employer credits
after December 31, 2004 and Investment Results thereto.  The Post-2004
Company Contribution Account Account shall be subject to Code Section 409A and
applicable guidance thereunder.

    

    
      	
              1.14

            	
              SEPARATION FROM
      SERVICE:  Separation from Service means separation from
      service as determined under Code Section 409A and applicable guidance
      thereunder.

            

    

    

    
      	
              1.15

            	
              SPECIFIED
      EMPLOYEE:  Specified Employee shall have the meaning assigned to such term in Code Section
      409A(2)(b)(i) and regulations thereunder.  The Company’s
      Specified Employees shall be determined in accordance with rules adopted
      by the Administrator, which shall be applied consistently with respect to
      all nonqualified deferred compensation arrangements of the
      Company.

            

    

    

    

    The
following terms shall have the same meanings as contained in the Basic Plan
unless a different meaning is plainly required by the context:  Plan
Year, Spouse, and Years of Service.

    

    ARTICLE 2 -
PARTICIPATION

    

    Participation
in the Supplemental Executive Retirement Plan shall be limited to those key
executive officers responsible for the ultimate efficient and profitable
operation of the Company, who have been selected by the Board of
Directors.  Appendix A to the Plan lists the effective date
participation commenced (and, if applicable, the date participation ceased) for
each Participant.

    

    Unless
otherwise specified on Appendix A, each eligible employee will participate as of
January 1 of the year he is first designated a participant by the
Board.  Participation in the Plan shall cease on the date the
Participant terminates employment with the Company and all of its
affiliates.

    

    ARTICLE 3 - RETIREMENT
BENEFITS

    

    
      	
              3.1

            	
              CREDITS TO
      ACCOUNT:  Each Account will be credited with the Employer
      contributions and adjusted for Investment Results.  The amount
      of the Employer contribution will be determined at the date an Employee
      becomes a Participant in this Plan, subject to increase or decrease at a
      later date in the sole discretion of the Board of
      Directors.  Unless specified otherwise by the Board, the initial
      contribution rate for the Participants designated in Article II is 10% of
      Compensation.

            

    

    

    3.2           VESTING:  A
Participant shall always be 100% vested in his or her Account.

    
      
        
           

        

         

      

      
        3

        
          

        

      

      
         

      

    

    3.3          PAYMENT OF
BENEFITS:  Payment of the deemed amount accumulated in a
Participant’s Account shall be made or shall commence on a date determined by
the Administrator during the 90 day period following the Participant’s
Separation from Service; provided, however, that,
if at any time the payment of benefits under the Plan with respect to a
Specified Employee would be restricted by Code Section 409A(a)(2)(i), such
payment shall be made on the six month anniversary of the Participant’s
Separation from Service, except in the event of death.

    

    The
default form of payment shall be a single lump sum.  However, a
Participant may elect payment in the form of annual installments, to be paid
over a period elected by the Participant, but not to exceed 10
years.  In the event payment is made in installments, the
Participant’s Account shall continue to be adjusted for earnings as provided in
Section 4.02, and the amount of the payment to be made in a given year shall be
equal to (i) times (ii), where (i) equals the value of the Participant’s Account
as of the most recent valuation date, and (ii) equals a fraction, the numerator
of which is one, and the denominator of which is the number of installments to
be paid under the Participant’s election (including the current
installment).

    

    Within
thirty (30) days of the date a Participant becomes eligible to participate in
the Plan, the Participant may elect payment in
installments.  Thereafter, a Participant may elect payment in
installments or may change his or her election from installments to lump sum,
only as follows:

    

    (i)           such
subsequent election is made no later than twelve (12) months preceding the
earlier of the date the Participant Separates from Service; and

     

    (ii)           such
subsequent election with respect to the Member’s Section 409A Account must defer
the commencement of distribution of the Section 409A Account for a period of
five (5) years from the date such payment would have otherwise
commenced.

     

    All
distributions shall be made in the form of cash.

    

    
      	
              3.4

            	
              DISTRIBUTION IN THE
      EVENT OF DEATH:  If a Participant dies before beginning
      to receive his Account, his Account shall be distributed to his
      Beneficiary in a single lump sum as soon as practicable following the
      Participant’s death.  If the Participant elects installment
      payments and dies before receiving all of such payments, the Participant’s
      Beneficiary shall, as soon as practicable following the Participant’s
      death, receive the balance of the Participant’s Account, valued as of the
      most recent date the Account was valued preceding the distribution to the
      Beneficiary.

            

    

    
      
        
           

        

         

      

      
        4

        
          

        

      

      
         

      

    

    3.5          ACCELERATION PERMITTED ONLY
IN SPECIFIED CIRCUMSTANCES: The timing of a distribution of a
Participant’s Post-2004 Company Contribution Account may not be accelerated,
except in the event of a permissible acceleration of distribution under Treasury
Regulation Section 1.409A-3(j)(4)(ii) (domestic relations order), (j)(4)(iii)
(conflicts of interest), (j)(4)(vi) (payment of employment taxes), (j)(4)(vii)
(payment upon income inclusion under Section 409A), (j)(4)(ix) (plan
terminations and liquidation), (j)(4)(xi) (payment of state, local or foreign
taxes), (j)(4)(xiii) (certain offsets) and (i)(4)(xiv) (bona fide
disputes).

    

    ARTICLE 4 - AMENDMENT AND
TERMINATION

    

    
      	
              4.1  

            	
              AMENDMENT:  The
      Company may amend any or all of the provisions of this Plan at any time
      without the consent of any Participant or Beneficiary; provided, however,
      that no such amendment shall deprive any Participant or Beneficiary of any
      Benefit which had accrued prior to the effective date of such
      amendment.

            

    

    

    
      	
              4.2  

            	
              TERMINATION:  The
      Company may terminate the Plan at any time and shall cease paying Benefits
      hereunder immediately upon the effective date of such
      termination.  Within 90 days following such effective date, the
      Company shall pay to each Participant or Beneficiary an amount equal to
      the value of the Participant’s Pre-2005 Company Contribution Account as of
      the most recent date the Participant’s Account was valued preceding the
      distribution to the Participant.  With respect to each
      Participant’s post-2004 Company Contribution Account, the termination of
      the Plan must comply with the requirements
      of Treasury Regulation Section
  1.409A-3(j)(4).

            

    

    

    ARTICLE 5 -
ADMINISTRATION

    

    
      	
              5.1  

            	
              ADMINISTRATION:  The
      Administrator shall administer the Plan and shall have all powers
      necessary or appropriate to enable it to carry out its duties including,
      without limitation, the power to interpret the Plan and to make, establish
      and change rules and procedures with respect to the operation of the
      Plan.  The Administrator shall have the authority to decide all
      questions arising under the Plan including those involving an individual’s
      eligibility for Benefits and to determine the amount of any Benefit to be
      paid to any Participant or Beneficiary hereunder.  All such
      decisions shall be conclusive and binding on all
  persons.

            

    

    

    
      	
              5.2  

            	
              REQUIRED
      INFORMATION:  Each Participant and Beneficiary shall
      furnish the Administrator such information as it shall consider necessary
      or desirable for purposes of administering the Plan.  The
      provisions of the Plan respecting the payment of any Benefit are
      conditional upon the Administrators prompt receipt of such
      information.  The Company, the Administrator and any other party
      involved in the administration of the Plan shall be entitled to rely upon
      any information furnished by a Participant or Beneficiary with respect to
      any matters required to be determined hereunder and shall not be liable on
      account of the payment of any moneys or the doing of any act or failure to
      act in reliance thereon.

            

    

    
      
        
           

        

         

      

      
        5

        
          

        

      

      
         

      

    

    

    5.3           CLAIMS:  Any
person having a claim for the payment of a Benefit shall file such claim with
the Administrator in writing on a form furnished by it.

    

    
      	
              (a)  

            	
              Denial of
      Claims:  In the event any such claim is denied or not
      paid within 60 days after the date of the filing thereof, the
      Administrator shall notify the claimant in writing of the specific reasons
      for the denial or nonpayment, the specific provisions of this Plan upon
      which such denial or nonpayment is based and the appeal procedures set
      forth below.

            

    

    

    
      	
              (b)  

            	
              Appeal
      Procedures:  The Administrator shall review appeals of
      claims which have been denied or have not been paid.  Any
      claimant whose claim has been denied or has not been paid within said 60
      day period may file a written appeal of such denial or nonpayment with the
      Administrator within 90 days after the expiration of said 60 day period
      together with such information concerning such claim as the claimant
      desires the Administrator to consider in its review of such denial or
      nonpayment.  Not later than 60 days after its receipt of any
      such appeal, the Administrator shall notify the claimant in writing of its
      decision on such appeal setting forth the specific reasons for its
      decision and the provisions of the Plan upon which its decision is
      based.

            

    

    

    5.4          DISPUTES:  If
a dispute arises as to the proper recipient of any payment, the Administrator,
in its sole discretion, may withhold or cause such payment to be withheld until
the dispute shall have been settled or determined by a court of competent
jurisdiction.

    

    ARTICLE 6 –
MISCELLANEOUS

    

    
      	
              6.1  

            	
              OWNERSHIP OF
      ASSETS:  Any assets which may be used to discharge the
      Company’s obligations under this Plan shall be and remain the property of
      the Company.  No person other than the Company shall, by virtue
      of this Plan, have any interest in such assets and no Participant or
      Beneficiary shall have any right, title or interest in, or claim to, any
      investments the Company may make to aid the Company in meeting its
      obligations hereunder.  To the extent that any person acquires a
      right to receive payments from the Company under this Plan, such right
      shall be no greater than the right of any unsecured general creditor of
      the Company.

            

    

    

    
      	
              6.2  

            	
              NO
      ASSIGNMENT:  No Benefit payable hereunder shall be
      subject in any manner to anticipation, alienation, sale, transfer,
      assignment, pledge or encumbrance and any attempt to anticipate, alienate,
      sell, transfer, assign, pledge or encumber or charge the same shall be
      void.  No such Benefit shall in any manner be subject to the
      debts or liabilities of any Participant or Beneficiary nor shall it be
      subject to attachment or legal process for or against such person and the
      same shall not be recognized hereunder except to such extent as may be
      required by law.

            

    

    
      
        
           

        

         

      

      
        6

        
          

        

      

      
         

      

    

    

    
      	
              6.3  

            	
              EFFECT ON
      EMPLOYMENT:  Nothing contained herein shall give any
      Participant the right to be retained in the service of the Company or to
      interfere with the right of the Company to discharge any Participant at
      any time regardless of the effect which such discharge shall or may have
      upon such individual as a
Participant.

            

    

    

    
      	
              6.4  

            	
              PAYMENTS TO MINOR OR
      INCOMPETENT:  In making any payment to or for the benefit
      of any minor or incompetent person or any other person who, in the opinion
      of the Administrator, is otherwise unable to apply such distribution to
      his own best interest and advantage, the Administrator, in its discretion
      may direct that such distribution be made directly to such person, to the
      legal guardian, conservator or custodian of such person for the use and
      benefit of such person or to a relative of such person to be expended by
      such relative for the benefit of such person.  The Administrator
      shall not be obligated to see to the application of any such
      payment.

            

    

    

    
      	
              6.5  

            	
              INDEMNIFICATION:  The
      Company agrees to hold harmless and indemnify the members of the Committee
      and all directors, officers and employees of the Company against any and
      all parties whomsoever, and all losses therefrom, including without
      limitation, costs of defense and attorneys’ fees, based upon or arising
      out of any act or omission relating to, or in connection with, this Plan
      other than losses resulting from such person’s fraud or willful
      misconduct.

            

    

    

    
      	
              6.6  

            	
              BINDING ON EMPLOYER,
      PARTICIPANTS AND THEIR SUCCESSORS:  This Plan shall be
      binding upon and inure to the benefit of the Company and to any other
      Employers participating in this Plan, their successors and assigns and the
      participant and his heirs, executors, administrators, and duly appointed
      legal representatives.

            

    

    

    
      	
              6.7  

            	
              RIGHTS OF AFFILIATES
      TO PARTICIPATE:  Any affiliate of the Company that
      employs an employee who participates in this Plan shall be deemed to have
      adopted this Plan.  The administrative powers and control of the
      Company, as provided in this Plan, shall not be deemed diminished under
      this Plan by reason of the participation of any affiliate and the
      administrative powers and control granted hereunder to the Committee shall
      be binding upon any affiliate adopting this
  Plan.

            

    

    

    
      	
              6.8  

            	
              APPLICABLE
      LAW:  The provisions of this Plan shall be interpreted
      and construed according to the laws of the State of
    Tennessee.

            

    

    

    
      	
              6.9  

            	
              EFFECTIVE
      DATE:  This amended and restated Plan shall be effective
      as of January 1, 2008.  Except as amended herein, the Plan
      remains in full force and
effect.

            

    

    
      
        
           

        

         

      

      
        7

        
          

        

      

      
         

      

    

    

    

    IN
WITNESS WHEREOF, Astec Industries, Inc. has caused this instrument to be
executed by its duly authorized officers on this 13th day of December,
2007.

    

    

    

    
      	 
      	
              ASTEC
      INDUSTRIES, INC.

            
	 
      	 
      
	 
      	 
      
	 
      	
              By:
      /s/ F. McKamy
      Hall             

            
	 
      	
              Title:
      VP, CFO, and
      Treasurer   

            

    

    

    
      
        
           

        

         

      

      
        8

        
          

        

      

      
         

      

    

    

    APPENDIX
A

    Each
Participant’s Date of Participation

    

    

    

    
      	 	
              Name
      of Participant

            	
              Effective
      Dates of Participation

            
	 	
              J.
      Don Brock

            	
              January
      1, 1995

            
	 	
              Thomas
      R. Campbell

            	
              January
      1, 1995

            
	 	
              Frank
      Cargould

            	
              January
      1, 1995

            
	 	
              Jeff
      Elliott

            	
              January
      1, 1995

            
	 	
              Tim
      Gonigam

            	
              January
      1, 1995

            
	 	
              Albert
      E. Guth

            	
              January
      1, 1995 - December 31, 2006

            
	 	
              F.
      McKamy Hall

            	
              January
      1, 1995

            
	 	
              Richard
      Patek

            	
              January
      1, 1995

            
	 	
              W.
      Norman Smith

            	
              January
      1, 1995

            
	 	
              Robert
      A. Stafford

            	
              January
      1, 1995 - June 30, 2006

            
	 	
              Joseph
      Vig

            	
              January
      1, 1995

            
	 	
              Jeff
      Richmond

            	
              May
      1, 2004

            
	 	
              Neal
      Ferry

            	
              January
      1, 2005 - July 17, 2007

            
	 	
              Richard
      Dorris

            	
              January
      3, 2005

            
	 	
              Alan
      Odgers

            	
              May
      1, 2005

            
	 	
              Ben
      Brock

            	
              January
      1, 2007

            
	 	
              James
      Pfeiffer

            	
              January
      1, 2007

            
	 	
              Michael
      A. Bremmer

            	
              January
      1, 2007

            
	 	
              David
      L. Winters

            	
              January
      1, 2007

            
	 	
              Stephen
      C. Anderson

            	
              January
      1, 2008

            
	 	
              Lawrence
      R. Cumming

            	
              January
      1, 2008

            
	 	
              Robert
      L. Hardin

            	
              First
      day of employment in 2008

            
	 	
              Neil
      Peterson

            	
              January
      1, 2008

            
	 	
              David
      C. Silvious

            	
              January
      1, 2008

            

    

    

    
      
        
           

        

         

      

      
        9ex4_1.htm

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    EXHIBIT 4.1

    MICROCHIP
TECHNOLOGY INCORPORATED

    INTERNATIONAL
EMPLOYEE STOCK PURCHASE PLAN

    AS AMENDED THROUGH MAY 1,
2006

    

    

    I.           PURPOSE

    

    This International Employee Stock
Purchase Plan (“Plan”) is hereby established by Microchip Technology
Incorporated, a Delaware corporation ("Microchip"), in order to provide eligible
employees of foreign Microchip subsidiaries with the opportunity to acquire a
proprietary interest in Microchip through the purchase of shares of Microchip
common stock at periodic intervals with their accumulated payroll
deductions.

    

    II.           DEFINITIONS

    

    For purposes of administration of the
Plan, the following terms shall have the meanings indicated:

    

    Common Stock means
shares of Microchip common stock, par value $0.001 per share.

    

    Earnings means
regular base salary plus such additional items of compensation as the Plan
Administrator may deem appropriate.

    

    Effective Date means
June 1, 1994.  A list of the participating Foreign Subsidiaries is
hereto attached as Schedule A.  For any other Foreign Subsidiary,
the effective date shall be determined by the Microchip Board of Directors or
the Employee Committee of the Board of Directors prior to the time such Foreign
Subsidiary is to become a participating company in the Plan.

    

    Eligible Employee
means any person who is engaged, on a regularly-scheduled basis, in the
rendition of personal services outside the U.S. as an employee of a Foreign
Subsidiary subject to the control and direction of that Foreign Subsidiary as to
both the work to be performed and the manner and method of
performance.

    

    Foreign Subsidiary
means any non-U.S. Microchip subsidiary which elects, with the approval of the
Microchip Board of Directors or the Employee Committee of the Board of
Directors, to extend the benefits of this Plan to its Eligible
Employees.  The Foreign Subsidiaries participating in the Plan are
listed on attached Schedule A.

    

    Participant means any
Eligible Employee of a Foreign Subsidiary who is actively participating in the
Plan.

    

    Service means the
period during which an individual performs services as an Eligible Employee and
shall be measured from his or her hire date, whether that date is before or
after the Effective Date of the Plan.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    III.           ADMINISTRATION

    

    Each Foreign Subsidiary shall have
responsibility for the administration of the Plan with respect to its Eligible
Employees.  Accordingly, the Plan shall, as to each Foreign
Subsidiary, be separately administered by a plan administrator comprised of two
or more Members of the Board of Directors, the Employee Committee of the Board
of Directors, or a designee as may be appointed by either of them from time to
time (“Plan Administrator”).  The Plan Administrator shall have full
authority to administer the Plan, including authority to interpret and construe
any provision of the Plan and to adopt such rules and regulations for
administering the Plan as it may deem necessary.  Decisions of the
Plan Administrator shall be subject to ratification by the Microchip Board of
Directors and, when so ratified, shall be final and binding on all parties who
have an interest in the Plan.

    

    IV.           PURCHASE
PERIODS

    

    A.           Shares
of Common Stock shall be offered for purchase under the Plan through a series of
successive purchase periods until such time as (i) the maximum number of shares
of Common Stock available for issuance under the Plan shall have been purchased
or (ii) the Plan shall have been sooner terminated in accordance with
Article VIII.

    

    B.           The
Plan shall be implemented in a series of successive purchase periods, each to be
of a duration of six (6) months.  The initial purchase period will
begin on June 1, 1994 and end on the last U.S. business day in November
1994.  Subsequent purchase periods shall, for so long as the Plan
remains in existence, run from the first U.S. business day of December to the
last U.S. business day of May and from the first U.S. business day of June to
the last U.S. business day of November.

    

    C.           No
purchase period shall commence under the Plan, nor shall any shares of Common
Stock be issued hereunder, until such time as (i) the Plan shall have been
approved by the Microchip Board of Directors and (ii) Microchip shall have
complied with all applicable requirements of the Securities Act of 1933 (as
amended), all applicable listing requirements of any securities exchange on
which shares of the Common Stock are listed and all other applicable statutory
and regulatory requirements.

    

    D.           The
Participant shall be granted a separate purchase right for each purchase period
in which he/she participates.  The purchase right shall be granted on
the start date of the purchase period and shall be automatically exercised on
the last U.S. business day of that purchase period.

    

    E.           The
acquisition of Common Stock through plan participation for any purchase period
shall neither limit nor require the acquisition of Common Stock by the
Participant in any subsequent purchase period.

    

    V.           ELIGIBILITY AND
PARTICIPATION

    

    A. Each
Eligible Employee of each Foreign Subsidiary participating in the Plan may join
the Plan in accordance with the following provisions:

    

    
      
         

      

      
        2 

        
          

        

      

      
         

      

    

     

    
      -         An
individual who is an Eligible Employee with at least thirty (30) days of Service
prior to the start date of the purchase period may enter that purchase period on
such start date, provided he/she enrolls in the purchase period on or before
such date in accordance with Section V.B below.  Should any such
Eligible Employee not enter the purchase period on the start date, then he/she
may not subsequently join that particular purchase period on any later
date.

      

      -         An
individual who is an Eligible Employee with less than thirty (30) days of
Service on the start date of the purchase period may not participate in that
purchase period but will be eligible to join the Plan on the start date of the
first purchase period thereafter on which he/she is an Eligible Employee with at
least thirty (30) days of Service.

    

    

    B.           To
participate for a particular purchase period, the Eligible Employee must
complete the enrollment forms prescribed by the Plan Administrator (including a
purchase agreement and a payroll deduction authorization) and file such forms
with the Plan Administrator (or its designate) on or before the start date of
that purchase period.

    

    C.           The
payroll deduction authorized by the Participant shall be collected under the
Plan in the currency in which paid by the Foreign Subsidiary and may be any
multiple of one percent (1%) of the Earnings paid to the Participant during each
purchase period, up to a maximum of ten percent (10%).  Any changes or
fluctuations in the exchange rate at which the currency collected from the
Participant through such payroll deductions is converted into U.S. Dollars on
each purchase date under the Plan shall be borne solely by the
Participant.  The deduction rate so authorized shall continue in
effect for the entire purchase period and for each successive purchase period,
except to the extent such rate is changed in accordance with the following
guidelines:

    

    -         The
Participant may, at any time during the purchase period, reduce his/her rate of
payroll deduction.  Such reduction shall become effective as soon as
possible after filing of the requisite reduction form with the Plan
Administrator (or its designate), but the Participant may not effect more than
one such reduction during the same purchase period.

    

    -         The
Participant may, prior to the start date of any subsequent purchase period,
increase or decrease the rate of his/her payroll deduction by filing the
appropriate form with the Plan Administrator (or its designate).  The
new rate (which may not exceed the ten percent (10%) maximum) shall become
effective as of the start date of the new six (6)-month purchase
period.

    

    Payroll deductions will automatically
cease upon the termination of the Participant's purchase right in accordance
with the applicable provisions of Section VII below.

    

    VI.           STOCK SUBJECT TO
PLAN

    

    A.           The
Common Stock purchasable under the Plan shall, solely in the discretion of the
Microchip Board, be made available from authorized but unissued shares of Common
Stock or from shares of Common Stock reacquired by Microchip, including shares
of Common Stock purchased on the open market.  The total number of
shares reserved under 

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    the Plan
is 348,5931 shares plus beginning January 1, 2007, and
each January 1 thereafter during the term of the Plan, an automatic annual
increase in shares reserved of one tenth of one percent (0.1%)of the then
outstanding shares of Microchip Common Stock.  The total number of
shares which may be issued under the Plan shall not exceed the number
reserved.

    

    B.           In
the event any change is made to the outstanding Common Stock by reason of any
stock dividend, stock split, combination of shares or other change affecting
such outstanding Common Stock as a class without Microchip's receipt of
consideration, appropriate adjustments shall be made by the Microchip Board of
Directors to (i) the class and maximum number of securities issuable over the
term of the Plan, (ii) the class and maximum number of securities purchasable
per Participant during any one purchase period and (iii) the class and number of
securities and the price per share in effect under each purchase right at the
time outstanding under the Plan.  Such adjustments shall be designed
to preclude the dilution or enlargement of rights and benefits under the
Plan.

    

    VII.           PURCHASE
RIGHTS

    

    An Eligible Employee who participates
in the Plan for a particular purchase period shall have the right to purchase
shares of Common Stock upon the terms and conditions set forth below and shall
execute a purchase agreement incorporating such terms and conditions and such
other provisions (not inconsistent with the Plan) as the Plan Administrator may
deem advisable.

    

    Purchase
Price.  Common Stock shall be issuable at the end of each
purchase period at a purchase price equal to eighty-five percent (85%) of the
lower of (i)
the fair market value per share on the start date of that purchase period or
(ii) the fair market value per share on the last U.S. business day of that
purchase period.

    

    Valuation.  The
fair market value per share of Common Stock on any relevant date under the Plan
shall be the closing selling price per share of Common Stock on that date, as
officially quoted on the Nasdaq National Market.  If there is no
quoted selling price for such date, then the closing selling price per share of
Common Stock on the next preceding day for which there does exist such a
quotation shall be determinative of fair market value.

    

    Number of Purchasable
Shares.  The number of shares purchasable per Participant
during each purchase period shall be determined as follows:  first,
the payroll deductions in the currency in which collected from the Participant
during that purchase period shall be converted into U.S. Dollars on the last
U.S. business day of the purchase period at the exchange rate in effect on that
day; then, the U.S. Dollar amount calculated for the Participant on the basis of
such exchange rate shall be divided by the purchase price in effect for such
period to determine the number of whole shares of Common Stock purchasable on
the Participant's behalf for that purchase period.  However, no
Participant may, during any one purchase period, purchase more one thousand
eight hundred ninety-nine (1,899) shares of Common Stock.

     

    
      

        

      

        
        1 Adjusted to reflect: (i)
the three-for-two stock split of the outstanding Common Stock effected in
November 1994; (ii) the three-for-two stock split of the outstanding Common
Stock effected in January 1997, (iii) the 10,000 share increase authorized by
the Board of Directors on April 25 1997, (iv) the three-for-two stock split of
the outstanding Common Stock effected in January 2000, (v) the three-for-two
stock split of the outstanding Common Stock effected in September 2000, (vi) the
three-for-two stock split of the outstanding Common Stock effected in May 2002
(vii) the 25,000 share increase authorized by the Board of Directors on March 3,
2003 and (viii) the 100,000 share increase authorized by the Board of Directors
on August 20, 2004.

      

    

    
 

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    Payment.  Payment
for the Common Stock purchased under the Plan shall be effected by means of the
Participant's authorized payroll deductions in the currency in which paid by the
Foreign Subsidiary.  Such deductions shall begin with the first full
payroll period beginning with or immediately following the start date of the
purchase period and shall (unless sooner terminated by the Participant) continue
through the pay day ending with or immediately prior to the last day of such
purchase period.  The amounts so collected shall be credited to the
Participant's book account under the Plan, but no interest shall be paid on the
balance from time to time outstanding in such account.  The amounts
collected from a Participant may be commingled with the general assets of the
Foreign Subsidiary or Microchip and may be used for general corporate
purposes.  However, all purchases of Common Stock under the Plan shall
be made in U.S. Dollars on the basis of the exchange rate in effect on the last
day of each purchase period.

    

    Termination of Purchase
Right.  The following provisions shall govern the termination
of outstanding purchase rights:

    

    -         A
Participant may, at any time prior to the last seven (7) business days of the
Foreign Subsidiary falling within the purchase period, terminate his/her
outstanding purchase right by filing the prescribed notification form with the
Plan Administrator. No further payroll deductions shall be collected from the
Participant with respect to the terminated purchase right, and any payroll
deductions collected for the purchase period in which such termination occurs
shall, at the Participant's election, be immediately refunded in the currency in
which paid by the Foreign Subsidiary or held for the purchase of shares at the
end of such purchase period.  If no such election is made at the time
the termination notice is filed, then the Participant's payroll deductions shall
be refunded as soon as possible after the termination date of his/her purchase
right.

    

    -         The
termination of such purchase right shall be irrevocable, and the Participant may
not subsequently rejoin the purchase period for which the terminated purchase
right was granted.  In order to resume participation in any subsequent
purchase period, such individual must re-enroll in the Plan (by making a timely
filing of a new purchase agreement and payroll deduction authorization) on or
before the date he/she is first eligible to join the new purchase
period.

    

    -         If
the Participant ceases to remain an Eligible Employee while his/her purchase
right is outstanding, then such purchase right shall immediately terminate, and
the payroll deductions collected from such Participant for the purchase period
shall be promptly refunded in the currency in which paid by the Foreign
Subsidiary to the Participant.   However, should the
Participant's cessation of Eligible Employee status occur by reason of death or
permanent disability, then such individual (or the personal representative of a
deceased Participant) shall have the following election, exercisable up until
the last day of the purchase period:

    

    
      
         

      

      
        5 

        
          

        

      

      
         

      

    

    

    -      to
withdraw all of the Participant's payroll deductions for such purchase period,
in the currency in which paid by the Foreign Subsidiary, or

    

    -      to
have such funds held for the purchase of shares at the end of the purchase
period.

     

    
      If no
such election is made, then such funds shall be refunded as soon as possible
after the end of the purchase period.  In no event, however, may any
payroll deductions be made on the Participant’s behalf following his/her
cessation of Eligible Employee status.

       

    

    Stock
Purchase.  Shares of Common Stock shall automatically be
purchased on behalf of each Participant (other than Participants whose payroll
deductions have previously been refunded in accordance with the Termination of
Purchase Right provisions above) on the last U.S. business day of each purchase
period.  The purchase shall be effected as follows: first, each
Participant's payroll deductions for that purchase period (together with any
carryover deductions from the preceding purchase period) shall be converted from
the currency in which paid by the Foreign Subsidiary into U.S. Dollars at the
exchange rate in effect on the purchase date, and then the amount of U.S.
Dollars calculated for each Participant on the basis of such exchange rate shall
be applied to the purchase of whole shares of Common Stock (subject to the
limitation on the maximum number of purchasable shares set forth above) at the
purchase price in effect for such purchase period.  Any payroll
deductions not applied to such purchase because they are not sufficient to
purchase a whole share shall be held for the purchase of Common Stock in the
next purchase period.  However, any payroll deductions not applied to
the purchase of Common Stock by reason of the limitation on the maximum number
of shares purchasable by the Participant during the purchase period shall be
promptly refunded to the Participant in the currency in which paid by the
Foreign Subsidiary.

    

    Proration of Purchase
Rights.  Should the total number of shares of Common Stock
which are to be purchased pursuant to outstanding purchase rights on any
particular date exceed the number of shares then available for issuance under
the Plan, the Plan Administrator shall make a pro-rata allocation of the
available shares on a uniform and nondiscriminatory basis, and the payroll
deductions of each Participant, to the extent in excess of the aggregate
purchase price payable for the Common Stock pro-rated to such individual, shall
be refunded to such Participant in the currency in which paid by the Foreign
Subsidiary.

    

    Rights as
Stockholder.  A Participant shall have no stockholder rights
with respect to the shares subject to his/her outstanding purchase right until
the shares are actually purchased on the Participant's behalf in accordance with
the applicable provisions of the Plan.  No adjustments shall be made
for dividends, distributions or other rights for which the record date is prior
to the date of such purchase.

    

    A Participant shall be entitled to
receive, as soon as practicable after the end of each purchase period, a stock
certificate (as evidenced by the appropriate entry on the books of Microchip or
of a duly authorized transfer agent of Microchip) for the number of shares
purchased on the Participant's behalf.  Such certificate will be
issued in "street name" for immediate deposit in a designated brokerage
account.  Until the stock certificate evidencing such Shares is issued
no right to vote or receive dividends or any other rights as a stockholder shall
exist. No adjustment will be made for a dividend or other right for which the
record date is prior to the date the stock certificate is issued.

    
 

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    Assignability.  No
purchase right granted under the Plan shall be assignable or transferable by the
Participant other than by will or by the laws of descent and distribution
following the Participant's death, and during the Participant's lifetime the
purchase right shall be exercisable only by the Participant.

    

    Change in
Ownership.  Should any of the following transactions (a
"Corporate Transaction") occur during the purchase period:

     

    
      (i)          a
merger or other reorganization in which Microchip will not be the surviving
corporation (other than a reorganization effected primarily to change the State
in which Microchip is incorporated), or

      

      (ii)          a
sale of all or substantially all of Microchip’s assets in liquidation or
dissolution of Microchip, or

      

      (iii)         a
reverse merger in which Microchip is the surviving corporation but in which more
than 50% of Microchip’s outstanding voting stock is transferred to person or
persons different from those who held the stock immediately prior to such
merger,

       

      then all outstanding purchase rights
under the Plan shall automatically be exercised immediately prior to the
effective date of such Corporate Transaction by applying the payroll deductions
of each Participant for the purchase period in which such Corporate Transaction
occurs to the purchase of whole shares of Common Stock at eighty-five percent
(85%) of the lower of (i) the fair
market value of the Common Stock on the start date of the purchase period in
which such Corporate Transaction occurs or (ii) the fair market value of the
Common Stock immediately prior to the effective date of such Corporate
Transaction.  Payroll deductions shall be converted from the currency
in which paid by the Foreign Subsidiary into U.S. Dollars on the basis of the
exchange rate in effect on the purchase date, and the applicable share
limitation of Article VII shall continue to apply to each such
purchase.  Should Microchip sell or otherwise dispose of its ownership
interest in any Foreign Subsidiary participating in the Plan, whether through
merger or sale of all or substantially all of the assets or outstanding capital
stock of that Foreign Subsidiary, then a similar exercise of outstanding
purchase rights shall be effected immediately prior to the effective date of
such disposition, but only to the extent those purchase rights are attributable
to the employees of such Foreign Subsidiary.

    

    

    Microchip shall use its best efforts to
provide at least ten (10)-days advance written notice of the occurrence of any
such Corporate Transaction, and the Participants shall, following the receipt of
such notice, have the right to terminate their outstanding purchase rights in
accordance with the applicable provisions of this Article VII.

    

    VIII.         AMENDMENT AND
TERMINATION

     

    The Plan has been established
voluntarily by Microchip.  The Microchip Board of Directors may alter,
amend, suspend or discontinue the Plan with respect to one or more Foreign
Subsidiaries following the end of any purchase period.  The Microchip
Board may also terminate the Plan in its entirety immediately following the end
of any purchase period.  In such event, no further purchase rights
shall thereafter be granted or exercised, and no further payroll deductions
shall thereafter be collected, under the Plan.

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    IX.           GENERAL
PROVISIONS

    

    A.           The
Plan shall become effective on the designated effective date for each Foreign
Subsidiary, provided Microchip
shall have complied with all applicable requirements of the Securities Act of
1933 (as amended), all applicable listing requirements of any securities
exchange on which shares of the Common Stock are listed and all other applicable
requirements estab­lished by law or regulation.

    

    B.           The
Plan shall terminate upon the earlier of (i) the
last U.S. business day in November 2014 or (ii) the date on which all shares
available for issuance under the Plan shall have been sold pursuant to purchase
rights exercised under the Plan.

    

    C.           All
costs and expenses incurred in the administration of the Plan shall be paid by
the Foreign Subsidiary.

    

    D.   Neither
the action of Microchip or the Foreign Subsidiary in establishing the Plan, nor
any action taken under the Plan by the Microchip Board or the Plan
Administrator, nor any provision of the Plan itself shall constitute any form of
employment contract, be construed so as to grant any person the right to remain
in the employ of the Foreign Subsidiary for any period of specific duration, and
except where expressly prohibited by applicable law such person's employment may
be terminated at any time, with or without cause.

    

    E.           Participation
in the Plan is voluntary and occasional and does not create any contractual or
other right to participate in the Plan in the future, or benefits in lieu of
participation in the Plan, even if the Participant has continually participated
in the Plan in the past.

    

    F.           Participation
in the Plan does not constitute normal or expected salary or compensation for
any purposes, including but not limited to, calculating any severance,
resignation, termination, redundancy, end of service payments, bonuses,
long-term service awards, pension or retirement benefits or similar payments and
in no event should be considered as compensation for, or relating in any way to
past services for Microchip or the Foreign Subsidiary.

     

        G.   Microchip,
Foreign Subsidiaries and the Plan Administrator must collect, use, and transfer
personal data of Participants as described in this subsection in order to
administer the Plan.  By participating in the Plan, the Participant is
consenting to the collection, transfer and use of Personal data as generally
described in this subsection.

     

    
      (i)           Microchip
and its Foreign Subsidiaries hold certain personal information about the
Participant, including, but not limited to, name, home address and telephone
number, date of birth, social insurance number, salary, nationality, job title,
any Shares of Common Stock or directorships held in Microchip, details of all
participation in the Plan or other entitlement to Shares, for the purpose of
managing and administering the Plan (“Data”).

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      

      (ii)           Microchip
and/or its Foreign Subsidiaries will transfer Data among themselves as necessary
for the purposes of implementation, administration, and management of
Participant’s participation in the Plan, and that Microchip and/or its Foreign
Subsidiaries may each further transfer Data to any third parties assisting them
in the implementation, administration, and management of the Plan (“Data
Recipients”).

      

      (iii)           These
Data Recipients may be located in Participant’s country of residence or
elsewhere, such as the United States.  By participating under this
Plan, the Participant authorizes the Data Recipients to receive, possess, use,
retain, and transfer Data in electronic or other form, for the purposes of
implementing, administering, and managing Participant’s participation in the
Plan, including any transfer of such Data, as may be required for Plan
administration and/or the subsequent holding of Shares on Participant’s behalf,
to a broker or third party with whom the Shares acquired on purchase may be
deposited.

      

      (iv)           Participant
may, at any time, review the Data, request that any necessary amendments be made
to it, or withdraw Participant’s consent herein in writing by contacting
Microchip. Withdrawing consent may affect Participant’s ability to participate
in the Plan.

    

     

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    SCHEDULE
A

     

    LIST
OF FOREIGN SUBSIDIARIES

    PARTICIPATING
IN THE

    INTERNATIONAL
EMPLOYEE STOCK PURCHASE PLAN

    AS
OF FEBRUARY 25, 2008

    

    

    

    Australia - Microchip Technology
Australia PTY Ltd.

    

    Austria
- Microchip Technology Austria GmbH

    

    Canada
- Microchip Technology Canada Inc. and Microchip Technology Canada

    

    Denmark
- Microchip Technology Nordic ApS (Denmark)

    

    France
- Microchip Technology Sarl

    

    Germany
- Microchip Technology GmbH

    

    Hong
Kong - Microchip Technology Hong Kong Ltd.

    

    Hungary
- Microchip Technology Hungary Kft.

    

    India
- Microchip Technology (India) Private Limited

    

    Ireland
- Microchip Technology Ireland Limited

    

    Italy
- Microchip Technology SRL

    

    Japan
- Microchip Technology Japan K.K.

    

    Korea
- Microchip Technology Korea Ltd.

    

    Malaysia
- Arizona Microchip Technology (Malaysia) Sdn Bhd

    

    Mexico
- Microchip Technology Mexico, S.DE R.L. DE C.V.

    

    Netherlands
- Microchip Technology (Netherlands) Europe B.V.

    

    Philippines
- Microchip Technology (Philippines) Corporation

    

    Philippines
- MTI Advanced Test Development Corporation

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    LIST
OF FOREIGN SUBSIDIARIES

    PARTICIPATING
IN THE

    INTERNATIONAL
EMPLOYEE STOCK PURCHASE PLAN

    AS
OF FEBRUARY 25, 2008

    (cont’d)

    

    

    Romania
- Microchip Technology SRL

    

    Singapore
- Microchip Technology Singapore Pte Ltd.

    

    Spain -
Microchip Technology S.L.

    

    Sweden
- Microchip Technology Sweden AB

    

    Switzerland
- Microchip Technology Switzerland S.A.

    

    Taiwan
- Microchip Technology (Barbados) Inc. – Taiwan Branch

    

    Thailand -
Arizona Microchip Technology (Thailand) Ltd.

    

    United
Kingdom - Microchip Limited

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