Document:

Exhibit 10.1

 

FEI COMPANY

1995 STOCK INCENTIVE
PLAN, AS AMENDED

As amended effective May 19, 2005

 

1.                                       Purpose.  The purpose of this Stock Incentive Plan (the
“Plan”) is to enable FEI Company (the “Company”) to attract and retain the
services of (1) selected employees, officers and directors of the Company
or of any subsidiary of the Company and (2) selected nonemployee agents,
consultants, advisors, persons involved in the sale or distribution of the
Company’s products and independent contractors of the Company or any
subsidiary.

 

2.                                       Shares Subject to the Plan. 
Subject to adjustment as provided below and in paragraph 13, the shares
to be offered under the Plan shall consist of Common Stock of the Company, and
the total number of shares of Common Stock that may be issued under the Plan
shall not exceed 8,000,0000 shares.  The
shares issued under the Plan may be authorized and unissued shares or
reacquired shares.  If an option, stock
appreciation right or performance unit granted under the Plan expires, terminates
or is canceled, the unissued shares subject to such option, stock appreciation
right or performance unit shall again be available under the Plan.  If shares sold or awarded as a bonus under
the Plan are forfeited to the Company or repurchased by the Company, the number
of shares forfeited or repurchased shall again be available under the Plan.

 

3.                                       Effective Date and Duration of Plan.

 

(a)                                  Effective
Date.  The Plan shall
become effective as of April 21, 1995. 
No option, stock appreciation right or performance unit granted under
the Plan shall become exercisable, however, until the Plan is approved by the
affirmative vote of the holders of a majority of the shares of Common Stock
represented at a shareholders meeting at which a quorum is present and any such
awards under the Plan prior to such approval shall be conditioned on and
subject to such approval.  Subject to
this limitation, options, stock appreciation rights and performance units may
be granted and shares may be awarded as bonuses or sold under the Plan at any
time after the effective date and before termination of the Plan.

 

(b)                                 Duration.  The Plan shall continue in effect until all
shares available for issuance under the Plan have been issued and all
restrictions on such shares have lapsed. 
The Board of Directors may suspend or terminate the Plan at any time
except with respect to options, performance units and shares subject to
restrictions then outstanding under the Plan. 
Termination shall not affect any outstanding options, any right of the
Company to repurchase shares or the forfeitability of shares issued under the
Plan.

 

4.                                       Administration.

 

(a)                                Board of Directors.  The Plan shall be administered by the Board
of Directors of the Company, which shall determine and designate from time to time
the individuals to whom awards shall be made, the amount of the awards and the
other terms and conditions of the awards. 
Subject to the provisions of the Plan, the Board of Directors may from
time to time adopt and amend rules and regulations relating to
administration of the Plan, advance the lapse of any waiting period, accelerate
any exercise date, waive or modify any restriction applicable to shares (except
those restrictions imposed by law) and make all other determinations in the
judgment of the Board of Directors necessary or desirable for the
administration of the Plan.  The
interpretation and construction of the provisions of the Plan and related
agreements by the Board

 

 

of Directors shall be final and
conclusive.  The Board of Directors may
correct any defect or supply any omission or reconcile any inconsistency in the
Plan or in any related agreement in the manner and to the extent it shall deem
expedient to carry the Plan into effect, and it shall be the sole and final
judge of such expediency.

 

(b)                               Committee.  The Board of Directors may delegate to a
committee of the Board of Directors or specified officers of the Company, or
both (the ”Committee”) any or all authority for administration of the
Plan.  If authority is delegated to a
Committee, all references to the Board of Directors in the Plan shall mean and
relate to the Committee except (i) as otherwise provided by the Board of
Directors, (ii) that only the Board of Directors may amend or terminate
the Plan as provided in paragraphs 3 and 15 and (iii) that a
Committee including officers of the Company shall not be permitted to grant
options to persons who are officers of the Company.

 

5.                                       Types of Awards; Eligibility.  The Board of Directors may, from time to
time, take the following action, separately or in combination, under the
Plan:  (i) grant Incentive Stock
Options, as defined in section 422 of the Internal Revenue Code of 1986,
as amended (the “Code”), as provided in paragraphs 6(a) and 6(b); (ii) grant
options other than Incentive Stock Options (“Non-Statutory Stock Options”) as
provided in paragraphs 6(a) and 6(c); (iii) award stock bonuses as
provided in paragraph 7; (iv) sell shares subject to restrictions as
provided in paragraph 8; (v) grant stock appreciation rights as
provided in paragraph 9; (vi) grant cash bonus rights as provided in
paragraph 10; (vii) grant performance units as provided in
paragraph 11 and (viii) grant foreign qualified awards as provided in
paragraph 12.  Any such awards may
be made to employees, including employees who are officers or directors, and to
other individuals described in paragraph 1 who the Board of Directors believes
have made or will make an important contribution to the Company or any
subsidiary of the Company; provided, however, that only employees of the
Company shall be eligible to receive Incentive Stock Options under the
Plan.  The Board of Directors shall
select the individuals to whom awards shall be made and shall specify the
action taken with respect to each individual to whom an award is made.  At the discretion of the Board of Directors,
an individual may be given an election to surrender an award in exchange for
the grant of a new award.  No employee
may be granted options or stock appreciation rights under the Plan for more
than an aggregate of 200,000 shares of Common Stock in connection with the
hiring of the employee or 250,000 shares of Common Stock otherwise in each
calendar year thereafter.

 

6.                                       Option
Grants.

 

(a)                                  General Rules Relating to Options.

 

(i)                                     Terms
of Grant.  The Board of Directors may
grant options under the Plan.  With
respect to each option grant, the Board of Directors shall determine the number
of shares subject to the option, the option price, the period of the option, the
time or times at which the option may be exercised and whether the option is an
Incentive Stock Option or a Non-Statutory Stock Option.  At the time of the grant of an option or at
any time thereafter, the Board of Directors may provide that an optionee who
exercised an option with Common Stock of the Company shall automatically
receive a new option to purchase additional shares equal to the number of
shares surrendered and may specify the terms and conditions of such new
options.

 

(ii)                                  Exercise
of Options.  Except as provided in
paragraph 6(a) (iv) or as determined by the Board of Directors,
no option granted under the Plan may be exercised unless at the time of such
exercise the optionee is employed by or in the service of the Company or any
subsidiary of the Company and shall have been so employed or provided such
service

 

 

continuously since the date
such option was granted.  Absence on
leave or on account of illness or disability under rules established by
the Board of Directors shall not, however, be deemed an interruption of
employment or service for this purpose. 
Unless otherwise determined by the Board of Directors, vesting of
options shall not continue during an absence on leave (including an extended
illness) or on account of disability. 
Except as provided in paragraphs 6(a) (iv) and 13,
options granted under the Plan may be exercised from time to time over the
period stated in each option in such amounts and at such times as shall be
prescribed by the Board of Directors, provided that options shall not be
exercised for fractional shares.  Unless
otherwise determined by the Board of Directors, if the optionee does not
exercise an option in any one year with respect to the full number of shares to
which the optionee is entitled in that year, the optionee’s rights shall be
cumulative and the optionee may purchase those shares in any subsequent year
during the term of the option.

 

(iii)                             Nontransferability.  Each Incentive Stock Option and, unless
otherwise determined by the Board of Directors, each other option granted under
the Plan by its terms shall be nonassignable and nontransferable by the
optionee, either voluntarily or by operation of law, except by will or by the
laws of descent and distribution of the state or country of the optionee’s
domicile at the time of death.

 

(iv)                              Termination
of Employment or Service.

 

(A)                            General
Rule.  Unless otherwise determined by
the Board of Directors, in the event the employment or service of the optionee
with the Company or a subsidiary terminates for any reason other than because
of physical disability or death as provided in subparagraphs 6(a)(iv)(B) and
(C), the option may be exercised at any time prior to the expiration date of
the option or the expiration of 30 days after the date of such
termination, whichever is the shorter period, but only if and to the extent the
optionee was entitled to exercise the option at the date of such termination.

 

(B)                              Termination
Because of Total Disability. 
Unless otherwise determined by the Board of Directors, in the event
of the termination of employment or service because of total disability, the
option may be exercised at any time prior to the expiration date of the option
or the expiration of 12 months after the date of such termination,
whichever is the shorter period, but only if and to the extent the optionee was
entitled to exercise the option at the date of such termination.  The term “total disability” means a
medically determinable mental or physical impairment which is expected to
result in death or which has lasted or is expected to last for a continuous
period of 12 months or more and which causes the optionee to be unable, in the
opinion of the Company and two independent physicians, to perform his or her
duties as an employee, director, officer or consultant of the Company and to be
engaged in any substantial gainful activity. 
Total disability shall be deemed to have occurred on the first day after
the Company and the two independent physicians have furnished their opinion of
total disability to the Company.

 

(C)                              Termination
Because of Death.  Unless otherwise
determined by the Board of Directors, in the event of the death of an optionee
while employed by or providing service to the Company or a subsidiary, the
option may be exercised at any time prior to the expiration date of the option
or the expiration of 12 months after the date of death, whichever is the
shorter period, for any portion of the option exercisable as of the date of
death and any outstanding unvested portion of the option, which shall become
fully vested and immediately exercisable as of the date of death, and only by
the person or persons to whom such optionee’s rights under the option shall
pass by the optionee’s will or by the laws of descent and distribution of the
state or country of domicile at the time of death.

 

 

(D)                             Amendment
of Exercise Period Applicable to Termination.  The Board of Directors, at the time of grant
or, with respect to an option that is not an Incentive Stock Option, at any
time thereafter, may extend the 30-day and 12-month exercise periods any length
of time not longer than the original expiration date of the option, and may
increase the portion of an option that is exercisable, subject to such terms
and conditions as the Board of Directors may determine.

 

(E)                               Failure
to Exercise Option.  To the extent
that the option of any deceased optionee or of any optionee whose employment or
service terminates is not exercised within the applicable period, all further
rights to purchase shares pursuant to such option shall cease and terminate.

 

(v)                               Purchase
of Shares.  Unless the Board of
Directors determines otherwise, shares may be acquired pursuant to an option
granted under the Plan only upon receipt by the Company of notice in writing
from the optionee of the optionee’s intention to exercise, specifying the
number of shares as to which the optionee desires to exercise the option and
the date on which the optionee desires to complete the transaction, and if
required in order to comply with the Securities Act of 1933, as amended,
containing a representation that it is the optionee’s present intention to
acquire the shares for investment and not with a view to distribution.  Unless the Board of Directors determines
otherwise, on or before the date specified for completion of the purchase of
shares pursuant to an option, the optionee must have paid the Company the full
purchase price of such shares in cash (including, with the consent of the Board
of Directors, cash that may be the proceeds of a loan from the Company
(provided that, with respect to an Incentive Stock Option, such loan is
approved at the time of option grant)) or, with the consent of the Board of
Directors, in whole or in part, in Common Stock of the Company valued at fair
market value, restricted stock, performance units or other contingent awards
denominated in either stock or cash, promissory notes and other forms of
consideration.  The fair market value of
Common Stock provided in payment of the purchase price shall be determined by
the Board of Directors.  If the Common
Stock of the Company is not publicly traded on the date the option is
exercised, the Board of Directors may consider any valuation methods it deems
appropriate and may, but is not required to, obtain one or more independent
appraisals of the Company.  If the Common
Stock of the Company is publicly traded on the date the option is exercised,
the fair market value of Common Stock provided in payment of the purchase price
shall be the closing price of the Common Stock as reported in The Wall Street Journal on the last trading day preceding
the date the option is exercised, or such other reported value of the Common
Stock as shall be specified by the Board of Directors.  No shares shall be issued until full
payment for the shares has been made. 
With the consent of the Board of Directors (which, in the case of
an Incentive Stock Option, shall be given only at the time of option grant), an
optionee may request the Company to apply automatically the shares to be
received upon the exercise of a portion of a stock option (even though stock
certificates have not yet been issued) to satisfy the purchase price for
additional portions of the option. 
Each optionee who has exercised an option shall immediately upon
notification of the amount due, if any, pay to the Company in cash amounts
necessary to satisfy any applicable federal, state and local tax withholding
requirements.  If additional
withholding is or becomes required beyond any amount deposited before delivery
of the certificates, the optionee shall pay such amount to the Company on demand.  If the optionee fails to pay the amount
demanded, the Company may withhold that amount from other amounts payable by
the Company to the optionee, including salary, subject to applicable law.  With the consent of the Board of
Directors an optionee may satisfy this obligation, in whole or in part, by
having the Company withhold from the shares to be issued upon the exercise that
number of shares that would satisfy the withholding amount due or by delivering
to the Company Common Stock to satisfy the withholding amount.  Upon the exercise of an option, the number of
shares reserved

 

 

for issuance under the Plan
shall be reduced by the number of shares issued upon exercise of the option.

 

(b)                                 Incentive Stock Options.  Incentive Stock Options shall be subject to
the following additional terms and conditions:

 

(i)                                   Limitation
on Amount of Grants.  No employee may
be granted Incentive Stock Options under the Plan if the aggregate fair market
value, on the date of grant, of the Common Stock with respect to which
Incentive Stock Options are exercisable for the first time by that employee
during any calendar year under the Plan and under all incentive stock option
plans (within the meaning of section 422 of the Code) of the Company or
any parent or subsidiary of the Company exceeds $100,000.

 

(ii)                                Limitations
on Grants to 10 Percent Shareholders. 
An Incentive Stock Option may be granted under the Plan to an
employee possessing more than 10 percent of the total combined voting
power of all classes of stock of the Company or of any parent or subsidiary of
the Company only if the option price is at least 110 percent of the fair
market value, as described in paragraph 6(b)(iv), of the Common Stock
subject to the option on the date it is granted and the option by its terms is
not exercisable after the expiration of five years from the date it is granted.

 

(iii)                               Duration
of Options.  Subject to
paragraphs 6(a) (ii) and 6(b) (ii), Incentive Stock Options
granted under the Plan shall continue in effect for the period fixed by the
Board of Directors, except that no Incentive Stock Option shall be exercisable
after the expiration of 10 years from the date it is granted.

 

(iv)                            Option
Price.  The option price per share
shall be determined by the Board of Directors at the time of grant.  Except as provided in paragraph 6(b) (ii),
the option price shall not be less than 100 percent of the fair market
value of the Common Stock covered by the Incentive Stock Option at the date the
option is granted.  The fair market value
shall be determined by the Board of Directors. 
If the Common Stock of the Company is not publicly traded on the date
the option is granted, the Board of Directors may consider any valuation
methods it deems appropriate and may, but is not required to, obtain one or
more independent appraisals of the Company. 
If the Common Stock of the Company is publicly traded on the date the
option is exercised, the fair market value shall be deemed to be the closing
price of the Common Stock as reported in The Wall Street Journal
on the day preceding the date the option is granted, or, if there has been no
sale on that date, on the last preceding date on which a sale occurred or such
other value of the Common Stock as shall be specified by the Board of
Directors.

 

(v)                               Limitation
on Time of Grant.  No Incentive Stock
Option shall be granted on or after the tenth anniversary of the effective date
of the Plan.

 

(v)                                 Conversion
of Incentive Stock Options.  The
Board of Directors may at any time without the consent of the optionee convert
an Incentive Stock Option to a Non-Statutory Stock Option.

 

(c)                                Non-Statutory Stock Options.  Non-Statutory Stock Options shall be subject
to the following terms and conditions in addition to those set forth in Section 6(a) above:

 

(i)                                   Option
Price.  The option price for Non-Statutory
Stock Options shall be determined by the Board of Directors at the time of
grant and may be any amount determined by the Board of Directors.

 

(ii)                                Duration
of Options.  Non-Statutory Stock
Options granted under the Plan shall continue in effect for the period fixed by
the Board of Directors.

 

7.                                       Stock Bonuses.  The
Board of Directors may award shares under the Plan as stock bonuses.  Shares awarded as a bonus shall be subject to
the terms, conditions, and restrictions

 

 

determined by the Board of Directors. 
The restrictions may include restrictions concerning transferability and
forfeiture of the shares awarded, together with such other restrictions as may
be determined by the Board of Directors. 
If shares are subject to forfeiture, all dividends or other
distributions paid by the Company with respect to the shares shall be retained
by the Company until the shares are no longer subject to forfeiture, at which
time all accumulated amounts shall be paid to the recipient.  The Board of Directors may require the
recipient to sign an agreement as a condition of the award, but may not require
the recipient to pay any monetary consideration other than amounts necessary to
satisfy tax withholding requirements. 
The agreement may contain any terms, conditions, restrictions,
representations and warranties required by the Board of Directors.  The certificates representing the shares
awarded shall bear any legends required by the Board of Directors. The Company
may require any recipient of a stock bonus to pay to the Company in cash upon
demand amounts necessary to satisfy any applicable federal, state or local tax
withholding requirements.  If the
recipient fails to pay the amount demanded, the Company may withhold that
amount from other amounts payable by the Company to the recipient, including
salary or fees for services, subject to applicable law.  With the consent of the Board of Directors, a
recipient may deliver Common Stock to the Company to satisfy this withholding
obligation.  Upon the issuance of a stock
bonus, the number of shares reserved for issuance under the Plan shall be
reduced by the number of shares issued.

 

8.                                       Restricted Stock.  The
Board of Directors may issue shares under the Plan for such consideration
(including promissory notes and services) as determined by the Board of
Directors.  Shares issued under the Plan
shall be subject to the terms, conditions and restrictions determined by the
Board of Directors.  The restrictions may
include restrictions concerning transferability, repurchase by the Company and
forfeiture of the shares issued, together with such other restrictions as may
be determined by the Board of Directors. 
If shares are subject to forfeiture or repurchase by the Company, all
dividends or other distributions paid by the Company with respect to the shares
shall be retained by the Company until the shares are no longer subject to
forfeiture or repurchase, at which time all accumulated amounts shall be paid
to the recipient.  All Common Stock issued
pursuant to this paragraph 8 shall be subject to a purchase agreement, which
shall be executed by the Company and the prospective recipient of the shares
prior to the delivery of certificates representing such shares to the
recipient.  The purchase agreement may
contain any terms, conditions, restrictions, representations and warranties
required by the Board of Directors.  The
certificates representing the shares shall bear any legends required by the
Board of Directors.  The Company may
require any purchaser of restricted stock to pay to the Company in cash upon
demand amounts necessary to satisfy any applicable federal, state or local tax
withholding requirements.  If the
purchaser fails to pay the amount demanded, the Company may withhold that
amount from other amounts payable by the Company to the purchaser, including
salary, subject to applicable law.  With
the consent of the Board of Directors, a purchaser may deliver Common Stock to
the Company to satisfy this withholding obligation.  Upon the issuance of restricted stock, the
number of shares reserved for issuance under the Plan shall be reduced by the
number of shares issued.

 

9.                                       Stock Appreciation Rights.

 

(a)                                Grant.  Stock appreciation rights may be granted
under the Plan by the Board of Directors, subject to such rules, terms, and
conditions as the Board of Directors prescribes.

 

(b)                               Exercise.

 

(i)                                     Each
stock appreciation right shall entitle the holder, upon exercise, to receive
from the Company in exchange therefore an amount equal in value to the excess
of the fair market value on the date of

 

 

exercise of one share of Common Stock of the Company over its fair
market value on the date of grant (or, in the case of a stock appreciation
right granted in connection with an option, the excess of the fair market value
of one share of Common Stock of the Company over the option price per share
under the option to which the stock appreciation right relates), multiplied by
the number of shares covered by the stock appreciation right or the option, or portion
thereof, that is surrendered. 
No stock appreciation right shall be exercisable at a time that the
amount determined under this subparagraph is negative.  Payment by the Company upon exercise of a
stock appreciation right may be made in Common Stock valued at fair market
value, in cash, or partly in Common Stock and partly in cash, all as determined
by the Board of Directors.

 

(ii)                                  A
stock appreciation right shall be exercisable only at the time or times
established by the Board of Directors. 
If a stock appreciation right is granted in connection with an option,
the following rules shall apply:  (1) the
stock appreciation right shall be exercisable only to the extent and on the
same conditions that the related option could be exercised; (2) the stock
appreciation rights shall be exercisable only when the fair market value of the
stock exceeds the option price of the related option; (3) the stock
appreciation right shall be for no more than 100 percent of the excess of the
fair market value of the stock at the time of exercise over the option price; (4) upon
exercise of the stock appreciation right, the option or portion thereof to
which the stock appreciation right relates terminates; and (5) upon
exercise of the option, the related stock appreciation right or portion thereof
terminates.

 

(iii)                               The
Board of Directors may withdraw any stock appreciation right granted under the
Plan at any time and may impose any conditions upon the exercise of a stock
appreciation right or adopt rules and regulations from time to time
affecting the rights of holders of stock appreciation rights.  Such rules and regulations may govern
the right to exercise stock appreciation rights granted prior to adoption or
amendment of such rules and regulations as well as stock appreciation
rights granted thereafter.

 

(iv)                              For
purposes of this paragraph 9, the fair market value of the Common Stock
shall be determined as of the date the stock appreciation right is exercised,
under the methods set forth in paragraph 6(b) (iv).

 

(v)                                 No
fractional shares shall be issued upon exercise of a stock appreciation
right.  In lieu thereof, cash may be paid
in an amount equal to the value of the fraction or, if the Board of Directors
shall determine, the number of shares may be rounded downward to the next whole
share.

 

(vi)                              Each
stock appreciation right granted in connection with an Incentive Stock Option,
and unless otherwise determined by the Board of Directors, each other stock
appreciation right granted under the Plan by its terms shall be nonassignable
and nontransferable by the holder, either voluntarily or by operation of law,
except by will or by the laws of descent and distribution of the state or
country of the holder’s domicile at the time of death, and each stock
appreciation right by its terms shall be exercisable during the holder’s
lifetime only by the holder.

 

(vii)                           Each
participant who has exercised a stock appreciation right shall, upon
notification of the amount due, pay to the Company in cash amounts necessary to
satisfy any applicable federal, state and local tax

 

 

withholding requirements.  If the
participant fails to pay the amount demanded, the Company may withhold that
amount from other amounts payable by the Company to the participant including
salary, subject to applicable law.  With
the consent of the Board of Directors a participant may satisfy this
obligation, in whole or in part, by having the Company withhold from any shares
to be issued upon the exercise that number of shares that would satisfy the
withholding amount due or by delivering Common Stock to the Company to satisfy
the withholding amount.

 

(viii)                        Upon
the exercise of a stock appreciation right for shares, the number of shares
reserved for issuance under the Plan shall be reduced by the number of shares
issued.  Cash payments of stock
appreciation rights shall not reduce the number of shares of Common Stock
reserved for issuance under the Plan.

 

10.              Cash Bonus Rights.

 

(a)                                Grant.  The Board of Directors may grant cash bonus
rights under the Plan in connection with (i) options granted or previously
granted, (ii) stock appreciation rights granted or previously granted, (iii) stock
bonuses awarded or previously awarded and (iv) shares sold or previously
sold under the Plan.  Cash bonus
rights will be subject to rules, terms and conditions as the Board of Directors
may prescribe.  Unless otherwise
determined by the Board of Directors, each cash bonus right granted under the
Plan by its terms shall be nonassignable and nontransferable by the holder,
either voluntarily or by operation of law, except by will or by the laws of
descent and distribution of the state or country of the holder’s domicile at
the time of death.  The payment of a cash
bonus shall not reduce the number of shares of Common Stock reserved for issuance
under the Plan.

 

(b)                               Cash Bonus Rights in Connection With Options.  A cash bonus right granted in connection with
an option will entitle an optionee to a cash bonus when the related option is
exercised (or terminates in connection with the exercise of a stock
appreciation right related to the option) in whole or in part if, in the sole
discretion of the Board of Directors, the bonus right will result in a tax
deduction that the Company has sufficient taxable income to use.  If an optionee purchases shares upon exercise
of an option and does not exercise a related stock appreciation right, the
amount of the bonus, if any, shall be determined by multiplying the excess of
the total fair market value of the shares to be acquired upon the exercise over
the total option price for the shares by the applicable bonus percentage.  If the optionee exercises a related stock
appreciation right in connection with the termination of an option, the amount
of the bonus, if any, shall be determined by multiplying the total fair market
value of the shares and cash received pursuant to the exercise of the stock
appreciation right by the applicable bonus percentage.  The bonus percentage applicable to a bonus
right, including a previously granted bonus right, may be changed from time to
time at the sole discretion of the Board of Directors but shall in no event
exceed 75 percent.

 

(c)                                Cash Bonus Rights in Connection With Stock Bonus.  A cash bonus right granted in connection with
a stock bonus will entitle the recipient to a cash bonus payable when the stock
bonus is awarded or restrictions, if any, to which the stock is subject
lapse.  If bonus stock awarded is subject
to restrictions and is repurchased by the Company or forfeited by the holder,
the cash bonus right granted in connection with the stock bonus shall terminate
and may not be exercised.  The amount and
timing of payment of a cash bonus shall be determined by the Board of
Directors.

 

 

(d)                               Cash Bonus Rights in Connection With Stock
Purchases.  A cash bonus
right granted in connection with the purchase of stock pursuant to paragraph 8
will entitle the recipient to a cash bonus when the shares are purchased or
restrictions, if any, to which the stock is subject lapse.  Any cash bonus right granted in connection
with shares purchased pursuant to paragraph 8 shall terminate and may not be
exercised in the event the shares are repurchased by the Company or forfeited
by the holder pursuant to applicable restrictions.  The amount of any cash bonus to be
awarded and timing of payment of a cash bonus shall be determined by the Board
of Directors.

 

(e)                                  Taxes.  The Company shall withhold from any cash
bonus paid pursuant to paragraph 10 the amount necessary to satisfy any
applicable federal, state and local withholding requirements.

 

11.                                 Performance
Units.  The Board of Directors may
grant performance units consisting of monetary units which may be earned in
whole or in part if the Company achieves certain goals established by the Board
of Directors over a designated period of time, but not in any event more than
10 years.  The goals established by the
Board of Directors may include earnings per share, return on shareholders’
equity, return on invested capital, and such other goals as may be established
by the Board of Directors.  In the event
that the minimum performance goal established by the Board of Directors is not
achieved at the conclusion of a period, no payment shall be made to the
participants.  In the event the maximum
corporate goal is achieved, 100 percent of the monetary value of the
performance units shall be paid to or vested in the participants.  Partial achievement of the maximum goal may
result in a payment or vesting corresponding to the degree of achievement as
determined by the Board of Directors. 
Payment of an award earned may be in cash or in Common Stock or in a
combination of both, and may be made when earned, or vested and deferred, as
the Board of Directors determines. 
Deferred awards shall earn interest on the terms and at a rate
determined by the Board of Directors. 
Unless otherwise determined by the Board of Directors, each performance
unit granted under the Plan by its terms shall be nonassignable and
nontransferable by the holder, either voluntarily or by operation of law,
except by will or by the laws of descent and distribution of the state or
country of the holder’s domicile at the time of death.  Each participant who has been awarded a
performance unit shall, upon notification of the amount due, pay to the Company
in cash amounts necessary to satisfy any applicable federal, state and local
tax withholding requirements.  If the
participant fails to pay the amount demanded, the Company may withhold that
amount from other amounts payable by the Company to the participant, including
salary or fees for services, subject to applicable law.  With the consent of the Board of Directors a
participant may satisfy this obligation, in whole or in part, by having the
Company withhold from any shares to be issued that number of shares that would
satisfy the withholding amount due or by delivering Common Stock to the Company
to satisfy the withholding amount.  The
payment of a performance unit in cash shall not reduce the number of shares of
Common Stock reserved for issuance under the Plan.  The number of shares reserved for issuance
under the Plan shall be reduced by the number of shares issued upon payment of
an award.

 

12.                               Foreign Qualified Grants. 
Awards under the Plan may be granted to such officers and employees of
the Company and its subsidiaries and such other persons described in
paragraph 1 residing in foreign jurisdictions as the Board of Directors
may determine from time to time.  The
Board of Directors may adopt such supplements to the Plan as may be necessary
to comply with the applicable laws of such foreign jurisdictions and to afford
participants favorable treatment under such laws; provided, however, that no
award shall be granted under any such supplement with terms which are more
beneficial to the participants than the terms permitted by the Plan.

 

 

13.                                 Changes in Capital Structure.

 

(a)                                Stock Splits; Stock Dividends.  If the outstanding
Common Stock of the Company is hereafter increased or decreased or changed into
or exchanged for a different number or kind of shares or other securities of
the Company by reason of any stock split, combination of shares or dividend
payable in shares, recapitalization or reclassification appropriate adjustment
shall be made by the Board of Directors in the number and kind of shares
available for grants under the Plan.  In
addition, the Board of Directors shall make appropriate adjustment in the
number and kind of shares as to which outstanding options, or portions thereof
then unexercised, shall be exercisable, so that the optionee’s proportionate
interest before and after the occurrence of the event is maintained.  Notwithstanding the foregoing, the Board of
Directors shall have no obligation to effect any adjustment that would or might
result in the issuance of fractional shares, and any fractional shares resulting
from any adjustment may be disregarded or provided for in any manner determined
by the Board of Directors.  Any such
adjustments made by the Board of Directors shall be conclusive.

 

(b)                               Mergers, Reorganizations, Etc.  In the event of a
merger, consolidation, plan of exchange, acquisition of property or stock,
separation, reorganization or liquidation to which the Company or a subsidiary
is a party or a sale of all or substantially all of the Company’s assets (each,
a “Transaction”), the Board of Directors shall, in its sole discretion and to
the extent possible under the structure of the Transaction, select one of the
following alternatives for treating outstanding options under the Plan:

 

(i)                                   Outstanding
options shall remain in effect in accordance with their terms.

(ii)                                Outstanding
options shall be converted into options to purchase stock in the corporation
that is the surviving or acquiring corporation in the Transaction.  The amount, type of securities subject
thereto and exercise price of the converted options shall be determined by the
Board of Directors of the Company, taking into account the relative values of
the companies involved in the Transaction and the exchange rate, if any, used
in determining shares of the surviving corporation to be issued to holders of
shares of the Company.  Unless otherwise
determined by the Board of Directors, the converted options shall be vested
only to the extent that the vesting requirements relating to options granted
hereunder have been satisfied.

(iii)                             The
Board of Directors shall provide a 30-day period prior to the consummation of
the Transaction during which outstanding options may be exercised to the extent
then exercisable, and upon the expiration of such 30-day period, all
unexercised options shall immediately terminate.  The Board of Directors may, in its sole
discretion, accelerate the exercisability of options so that they are
exercisable in full during such 30-day period.

 

(c)                                Dissolution of the Company.  In the event of the
dissolution of the Company, options shall be treated in accordance with
paragraph 13(b) (iii).

 

(d)                               Rights Issued by Another Corporation.  The Board of
Directors may also grant options, stock appreciation rights, performance units,
stock bonuses and cash bonuses and issue restricted stock under the Plan having
terms, conditions and provisions that vary from those specified in this Plan
provided that any such awards are granted in substitution for, or in connection
with the assumption of, existing options, stock appreciation rights, stock
bonuses, cash bonuses, restricted stock and performance units granted, awarded
or issued by another corporation and assumed or otherwise agreed to be provided
for by the Company pursuant to or by reason of a Transaction.

 

 

14.                               Amendment of Plan. 
The Board of Directors may at any time, and from time to time, modify or
amend the Plan in such respects as it shall deem advisable because of changes
in the law while the Plan is in effect or for any other reason.  Except as provided in paragraphs 6(a)(iv),
9, 10 and 13, however, no change in an award already granted shall be made
without the written consent of the holder of such award.

 

15.                               Approvals.  The
obligations of the Company under the Plan are subject to the approval of state
and federal authorities or agencies with jurisdiction in the matter.  The Company will use its best efforts to take
steps required by state or federal law or applicable regulations, including rules and
regulations of the Securities and Exchange Commission and any stock exchange on
which the Company’s shares may then be listed, in connection with the grants
under the Plan.  The foregoing
notwithstanding, the Company shall not be obligated to issue or deliver Common
Stock under the Plan if such issuance or delivery would violate applicable
state or federal securities laws.

 

16.                               Employment
and Service Rights.  Nothing
in the Plan or any award pursuant to the Plan shall (i) confer upon any
employee any right to be continued in the employment of the Company or any
subsidiary or interfere in any way with the right of the Company or any
subsidiary by whom such employee is employed to terminate such employee’s
employment at any time, for any reason, with or without cause, or to decrease
such employee’s compensation or benefits, or (ii) confer upon any person
engaged by the Company any right to be retained or employed by the Company or
to the continuation, extension, renewal, or modification of any compensation,
contract, or arrangement with or by the Company.

 

17.                               Rights as a Shareholder. 
The recipient of any award under the Plan shall have no rights as a
shareholder with respect to any Common Stock until the date of issue to the
recipient of a stock certificate for such shares.  Except as otherwise expressly provided in the
Plan, no adjustment shall be made for dividends or other rights for which the
record date occurs prior to the date such stock certificate is issued.

 

18.                                 Option Grants to Non-Employee Directors.

 

(a)                                  Initial Board Grants.  Each person who is Director when the Plan is
adopted or who becomes a Non-Employee Director thereafter shall be
automatically granted an option to purchase 15,000 shares of Common Stock on
the date the Plan is approved by the shareholders of the Company or when he or
she becomes a Non-Employee Director.  A “Non-Employee
Director” is a director who is not an officer or employee of the Company or any
of its subsidiaries.

 

(b)                                 Additional Grants.  Each Non-Employee Director shall be
automatically granted an option to purchase additional shares of Common Stock
in each calendar year subsequent to the year in which such Non-Employee
Director was granted an option pursuant to paragraph 18(a), such option to be
granted as of the date of the Company’s annual meeting of shareholders held in
such calendar year, provided that the Non-Employee Director continues to serve
in such capacity as of such date.  The
number of shares subject to each additional grant shall be 7,500 shares for
each Non-Employee Director.

 

(c)                                  Exercise Price.  The exercise price of all options granted
pursuant to this paragraph 18 shall be equal to 100 percent of the fair market
value of the Common Stock determined pursuant to paragraph 6(b) (iv).

 

 

(d)                                 Term of Option.  The term of each option granted pursuant to
this paragraph 18 shall be 10 years from the date of grant.

 

(e)                                  Exercisability.  Until an option expires or is terminated and
except as provided in paragraphs 18(f) and 13, an option granted under
this paragraph 18 shall be exercisable according to the following
schedule:  2.78% for each complete month
of continuous service after the date of grant, rounded up to the next full
share, until fully vested.  For purposes
of this paragraph 18(e), a complete month shall be deemed to be the period
which starts on the day of grant and ends on the same day of the following
calendar month, so that each successive “complete month” ends on the same day
of each successive calendar month (or, in respect of any calendar month which
does not include such a day, that “complete month” shall end on the first day
of the next following calendar month).

 

 (f)                                 Termination As a Director.  If an optionee ceases to be a director of the
Company for any reason, including death, the option may be exercised at any
time prior to the expiration date of the option or the expiration of 30 days
(or 12 months in the event of death) after the last day the optionee served as
a director, whichever is the shorter period, but only if and to the extent the
optionee was entitled to exercise the option as of the last day the optionee
served as a director, provided, however, that in the event of death, any
outstanding unvested portion of the option shall become fully vested and
immediately exercisable as of the date of death.

 

(g)                                 Nontransferability.  Each option by its terms shall be
nonassignable and nontransferable by the optionee, either voluntarily or by
operation of law, except by will or by the laws of descent and distribution of
the state or country of the optionee’s domicile at the time of death, and each
option by its terms shall be exercisable during the optionee’s lifetime only by
the optionee.

 

(h)                                 Exercise of Options.  Options may be exercised upon payment of cash
or shares of Common Stock of the Company in accordance with paragraph 6(a) (v).

 

Adopted:                                             April 21,
1995

Approved by Shareholders:  May 5,
1995

 

Amendments approved by Shareholders:

 

May 15, 1996

May 15, 1997

May 21, 1998

June 10, 1999

May 18, 2000

October 18,
2001

May 16,
2002

May 15,
2003

May 20,
2004

May 19,
2005Exhibit 10.2

 

FEI COMPANY

 

EMPLOYEE SHARE PURCHASE PLAN

 

As amended effective May 19,
2005

 

1.                                       Purpose of the Plan.  FEI Company (the “Company”) believes that
ownership of shares of its Common Stock by employees of the Company and its
Participating Subsidiaries (hereinafter defined) is desirable as an incentive
to better performance and improvement of profits, and as a means by which
employees may share in the rewards of growth and success.  The purpose of this Employee Share Purchase
Plan (the “Plan”) is to provide a convenient means by which employees of the
Company and Participating Subsidiaries may purchase the Company’s shares
through payroll deductions and a method by which the Company may assist and
encourage such employees to become share owners.

 

2.                                       Shares Reserved for the Plan.  There are 1,950,000 shares of the Company’s
authorized Common Stock reserved for issuance under the Plan.  The number of shares reserved for issuance
under the Plan is subject to adjustment in the event of any stock dividend,
stock split, combination of shares, recapitalization or other change in the
outstanding Common Stock of the Company. 
The determination of whether an adjustment shall be made and the manner
of any such adjustment shall be made by the Board of Directors of the Company,
which determination shall be conclusive.

 

3.                                       Administration of the Plan.  The Plan shall be administered by the Board
of Directors.  The Board of Directors may
promulgate rules and regulations for the operation of the Plan, adopt
forms for use in connection with the Plan, and decide any question of
interpretation of the Plan or rights arising thereunder.  The Board of

 

 

Directors may consult with counsel for the Company on any matter
arising under the Plan.  All
determinations and decisions of the Board of Directors shall be
conclusive.  Notwithstanding the
foregoing, the Board of Directors, if it so desires, may delegate to the
Compensation Committee of the Board the authority for general administration of
the Plan.

 

4.                                       Eligible Employees.  Except as indicated below, all full-time
employees of the Company and all full-time employees of each of the Company’s
subsidiary corporations which is designated by the Board of Directors of the
Company as a participant in the Plan (such participating subsidiary being
hereinafter called a “Participating Subsidiary”) are eligible to participate in
the Plan.  Any employee who would, after
a purchase of shares under the Plan, own or be deemed (under Section 424(d) of
the Internal Revenue Code of 1986, as amended (the “Code”)) to own stock
(including stock subject to any outstanding options held by the employee)
possessing five percent or more of the total combined voting power or value of
all classes of stock of the Company or any parent or subsidiary of the Company,
shall be ineligible to participate in the Plan. 
A “full-time employee” is one who is in the active service of the
Company or a Participating Subsidiary excluding, however, any employee whose
customary employment is 20 hours or less per week or whose customary employment
is for not more than five months per calendar year.

 

5.                                       Offerings.

 

(a)  Offering Periods.  The Plan shall be implemented by a series
of offering periods of approximately twelve months’ duration or such other
duration as the Board of Directors shall determine  (“Offering Periods”), commencing on March 1
and September 1 of each year and ending on the last day of February or
August, respectively, occurring thereafter. 
The initial Offering Period shall commence on March 1, 1998 and shall
end on February 28, 1999. 
Notwithstanding the foregoing, the Board of Directors may establish a
different duration for one or more future

 

2

 

Offering Periods, provided, however, that no Offering Period may have a
duration exceeding twenty-seven (27) months. 
Each Offering Period shall be comprised of a series of two purchase
periods (“Purchase Periods”), as provided in clause (b) below.  The first day of each Offering Period is an “Offering
Date” and the last day of each Purchase Period is a “Purchase Date” for the
Offering Period.  If an Offering Date or
a Purchase Date falls on a day on which the public equity securities markets in
the United States are not open for trading, the Company shall, by announcement
at least ten days before the date on which the Offering Date or Purchase Date
would otherwise fall, specify the trading day that will be deemed that Offering
Date, or Purchase Date, as the case may be. 
As of each Offering Date, the Company hereby grants to each eligible
employee a right under the Plan to purchase shares of Common Stock on the
Purchase Date for the price determined under paragraph 7 of the Plan
exclusively through payroll deductions authorized under paragraph 6 of the
Plan; provided, however, that (a) no such right shall permit the purchase
of more than 1,000 shares, and (b) no such right shall allow an employee’s
right to purchase shares under all stock purchase plans of the Company and its
parents and subsidiaries to which Section 423 of the Code applies to
accrue at a rate that exceeds $25,000 of fair market value of shares
(determined at the Offering Date) for each calendar year in which such right is
outstanding.

 

(b)                                 Purchase Periods.  Each Offering Period shall consist of two (2) consecutive
Purchase Periods of approximately six (6) months’ duration, or such other
number or duration as the Board shall determine.  A Purchase Period commencing on or about March 1
shall end on or about the next August 31. 
A Purchase Period commencing on or about September 1 shall end on
or about the next February 28. 
Notwithstanding the foregoing, the Board may establish a different
duration for one or more future Purchase Periods or different commencing or
ending dates for such Purchase Periods.

 

3

 

6.                                       Participation in the Plan.

 

(a)                                  Initiating Participation.  An eligible employee may participate in an
Offering Period under the Plan by filing with the Company no later than the
close of business on the Offering Date, on forms furnished by the Company, a
subscription and payroll deduction authorization.  Once filed, a subscription and payroll
deduction authorization shall remain in effect for subsequent Offering Periods
unless amended or terminated.  The
payroll deduction authorization will take effect on the Offering Date or, if
later, on the first payroll effective date that is at least three business days
after the date on which it was filed, and will authorize the employing entity
to make payroll deductions in the specified amount from each paycheck of the
participating employee.  Payroll
deductions for any Purchase Period may not exceed 15 percent of the gross
amount of base pay plus commissions, if any, in the aggregate payable to the
employee for such Purchase Period.  If a
payroll deduction is made by a Participating Subsidiary, that entity will
promptly remit the amount of the deduction to the Company. Eligible employees
may not participate simultaneously in more than one Offering Period.

 

(b)                                 Amending or Terminating
Participation.  A
participating employee may amend his or her payroll deduction authorization
once during any Purchase Period, to reduce the amount of future payroll
deductions, with effect during the remaining part of the Purchase Period.  Other amendments to the payroll deduction
authorization will not become effective until the next following Purchase
Period. A permitted change in payroll deductions shall be effective for any pay
period only if written notice is received by the Company at least three
business days prior to the payroll effective date published by the Company for
that pay period.  After an employee has
begun participating in the Plan, he or she may terminate participation in the
Plan by written notice received by the Company at any time up to the tenth day
before a Purchase Date.  Participation in
the Plan shall also terminate when a

 

4

 

participant ceases to be an eligible employee for any reason, including
death or retirement.  Determination of
when the employment relationship terminates for this purpose shall be made
under Section 1.421-7 of U.S. Treasury Regulations or successor
regulations.  A participant may not
reinstate participation in the Plan with respect to a particular Offering
Period after once terminating participation in the Plan with respect to that
Offering Period.  Upon termination of a
participant’s participation in the Plan, all amounts deducted from the
participant’s pay and not previously used to purchase shares under the Plan
shall be returned to the participant.

 

(c)                                  Automatic Withdrawal from an
Offering Period.  If the
fair market value of a share of Common Stock on a Purchase Date other than the
final Purchase Date of an Offering Period is less than the fair market value of
a share of Common Stock on the Offering Date of the Offering Period, then every
participant shall be (a) automatically withdrawn from such Offering Period
at the close of such Purchase Date and after the acquisition of shares of Common
Stock for the Purchase Period and (b) enrolled in the Offering Period
commencing on the first business day subsequent to such Purchase Date.  A participant may elect not to be
automatically withdrawn from an Offering Period pursuant to this paragraph 6(c) by
delivering to the Company not later than the close of business on the Purchase
Date a written notice indicating such election.

 

7.                                       Option Price.  The price at which shares shall be purchased
in an Purchase Period shall be the lower of (a) 85% of the fair market
value of a share of Common Stock on the Offering Date of the applicable
Offering Period or (b) 85% of the fair market value of a share of Common
Stock on that Purchase Date.  The fair
market value of a share of Common Stock on any date shall be the closing price
of the Common Stock for such date as reported by the Nasdaq National Market or,
if the Common Stock is not reported on the Nasdaq National Market, such other
reported value of the Common Stock as shall be specified by the Board of Directors.

 

5

 

8.                                       Newly Eligible Employees.  A person who becomes an eligible employee
after the Offering Date of an Offering Period shall not be eligible to
participate in such Offering Period but may participate in any subsequent
Offering Period provided he or she is still an eligible employee as of the
Offering Date of such subsequent Offering Period.

 

9.                                       Purchase of Shares.  All amounts withheld from the pay of a
participant shall be credited to his or her account under the Plan by the
Custodian appointed under paragraph 10. 
No interest will be paid on such accounts unless the Board of Directors
determines otherwise. On each Purchase Date of an Offering Period, the amount
of the account of each participant will be applied to the purchase of whole
shares by such participant from the Company at the price determined under
paragraph 7.  Any cash balance
remaining in a participant’s account after a Purchase Date because it was less
than the amount required to purchase a full share shall be retained in the
participant’s account for the next Purchase Period.

 

10.                                 Delivery and Custody of Shares.  Shares purchased by participants pursuant to
the Plan will be delivered to and held in the custody of such investment or financial
firm (the “Custodian”) as shall be appointed by the Board of Directors.  The Custodian may hold in nominee or street
name certificates for shares purchased pursuant to the Plan and may commingle
shares in its custody pursuant to the Plan in a single account without
identification as to individual participants. 
By appropriate instructions to the Custodian on forms to be provided for
that purpose, a participant may from time to time obtain (a) transfer into
the participant’s own name of some or all of the shares held by the Custodian
for the participant’s account and delivery of such shares to the participant; (b) transfer
of some or all of the shares held for the participant’s account by the
Custodian to a regular individual brokerage account in the participant’s own
name, either with the firm then acting as Custodian or with

 

6

 

another firm, or (c) sale of some or all of the shares held by the
Custodian for the participant’s account at the market price at the time the
order is executed and remittance of the net proceeds of sale to the
participant.  Upon termination of
participation in the Plan, a participant may elect to have the shares held by
the Custodian for his or her account transferred and delivered in accordance
with (a) above, transferred to a brokerage account in accordance with (b),
or sold in accordance with (c).

 

11.                                 Records and Statements.  The Custodian will maintain the records of
the Plan.  As soon as practicable after
each Purchase Date the Custodian will furnish to each participant a statement
showing the activity in the participant’s account for the period covered by the
statement and the cash and share balances in the account as of the Purchase
Date.  Participants will be furnished such
other reports and statements, and at such intervals, as the Board of Directors
shall determine from time to time.

 

12.                                 Expense of the Plan.  The Company will pay all expenses incident to
operation of the Plan, including costs of record keeping, accounting fees,
legal fees, commissions and issue or transfer taxes on purchases pursuant to
the Plan and on delivery of shares to a participant or into his or her
brokerage account.  The Company will not
pay expenses, commissions or taxes incurred in connection with sales of shares
by the Custodian at the request of a participant.  Expenses to be paid by a participant will be
deducted from the proceeds of sale prior to remittance.

 

13.                                 Rights Not Transferable.  The right to purchase shares under this Plan
is not transferable by a participant, and such right is exercisable during the
participant’s lifetime only by the participant. 
Upon the death of a participant, any cash or shares held for the
participant’s account shall be transferred to the persons

 

7

 

entitled thereto under the laws of the state of domicile of the
participant upon a proper showing of authority.

 

14.                                 Dividends and Other Distributions.  Cash dividends and other cash distributions,
if any, on shares held by the Custodian will be paid currently to the
participants entitled thereto unless the Company subsequently adopts a dividend
reinvestment plan and the participant directs that his or her cash dividends be
invested in accordance with such plan. 
Stock dividends and other distributions in shares of the Company on
shares held by the Custodian shall be issued to the Custodian and held by it
for the account of the respective participants entitled thereto.

 

15.                                 Voting and Shareholder Communications.  In connection with voting on any matter
submitted to the shareholders of the Company, the Custodian will furnish to
each participant a proxy authorizing the participant to vote the shares held by
the custodian for his account.  Copies of
all general communications to shareholders of the Company will be sent to
participants in the Plan.

 

16.                                 Tax Withholding.  Each participant who has purchased
shares under the Plan shall immediately upon notification of the amount due, if
any, pay to the Company in cash amounts necessary to satisfy any applicable
federal, state, local, national or other governmental tax withholding
determined by the Company to be required in any country having taxing
jurisdiction.  If the Company determines
that additional withholding is required beyond any amount deposited at the time
of purchase, the participant shall pay such amount to the Company on
demand.  If the participant fails to pay
the amount demanded, the Company may withhold that amount from other amounts
payable by the Company to the participant, including salary, subject to
applicable law.

 

8

 

17.                                 Responsibility and Indemnity.  Neither the Company, its Board of Directors,
the Custodian, any Participating Subsidiary, nor any member, officer, agent, or
employee of any of them, shall be liable to any participant under the Plan for
any mistake of judgment or for any omission or wrongful act unless resulting
from gross negligence, willful misconduct or intentional misfeasance.  The Company will indemnify and save harmless
its Board of Directors, the Custodian and any such member, officer, agent or
employee against any claim, loss, liability or expense arising out of the Plan,
except such as may result from the gross negligence, willful misconduct or
intentional misfeasance of such entity or person.

 

18.                                 Conditions and Approvals.  The obligations of the Company under the Plan
shall be subject to and conditional upon compliance with all applicable U.S.
state, federal and foreign laws and regulations, compliance with the rules of
any stock exchange or market on which the Company’s securities may be listed,
and approval of such federal, state and foreign authorities or agencies as may
have jurisdiction over the Plan or the Company. 
The Company will use its best effort to comply with such laws,
regulations and rules and to obtain such approvals.

 

19.                                 Amendment of the Plan.  The Board of Directors of the Company may
from time to time amend the Plan in any and all respects, except that without
the approval of the shareholders of the Company, the Board of Directors may not
increase the number of shares reserved for the Plan or decrease the purchase
price of shares offered pursuant to the Plan.

 

20.                                 Termination of the Plan.  The Plan shall terminate when all of the
shares reserved for purposes of the Plan have been purchased, provided that the
Board of Directors in its sole discretion may at any time terminate the Plan
without any obligation on account of such termination, except as hereinafter in
this paragraph provided.  Upon
termination of the Plan, the cash and shares, if any, held in the

 

9

 

account of each participant shall forthwith be distributed to the
participant or to the participant’s order, provided that if prior to the
termination of the Plan, the Board of Directors and shareholders of the Company
shall have adopted and approved a substantially similar plan, the Board of
Directors may in its discretion determine that the account of each participant
under this Plan shall be carried forward and continued as the account of such
participant under such other plan, subject to the right of any participant to
request distribution of the cash and shares, if any, held for his account.

 

21.                                 Effective Date of the Plan.  The Plan shall become effective on March 1,
1998, subject to approval not later than June 30, 1998, by the affirmative
vote, in person or by proxy, of the holders of at least a majority of the
shares of the Company represented and voting on the approval of the Plan at a
validly held meeting of the shareholders.

 

Adopted October 14,
1997

Amendments
approved by Shareholders:

April 23,
1998

May 21,
1998

May 18,
2000

May 20,
2004

May 19,
2005

 

10

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