Document:

Genentech, Inc. - Exhibit 10.17 Amended and Restated Backup Facility Agreement

EXHIBIT 10.16

 

AMENDED AND RESTATED BACKUP FACILITY AGREEMENT

AND AMENDMENT TO OTHER OPERATIVE AGREEMENTS

 

            AMENDED AND RESTATED BACKUP FACILITY AGREEMENT dated as of November 7, 2002, among DNA FINANCE CORP. (the "Borrower"), the BANKS party hereto (the "Banks"), the INVESTORS party hereto (the "Investors"), JP MORGAN CHASE BANK (formerly known as The Chase Manhattan Bank), as CP Administrative Agent, as Collateral Agent, and as Agent Bank (the "Agent"), VACAVILLE REAL ESTATE TRUST 2001 ("Lessor"), and GENENTECH, INC. ("Lessee" and "Guarantor").

W I T N E S S E T H :

            WHEREAS, Borrower, Agent and the Banks hereto have heretofore entered into a Backup Facility Agreement dated as of October 26, 2001 (as amended prior to the Restatement Effective Date referred to below, the "Backup Facility Agreement"), and such parties, the Investors, Lessor, Lessee and certain other Persons have entered into the Participation Agreement referred to therein (as amended prior to the Restatement Effective Date referred to below, the "Participation Agreement"), and certain other Operative Agreements (as such term is defined in accordance with Section 1 below);

            WHEREAS, at the date hereof, there are no Facility Loans outstanding under the Backup Facility Agreement; and

            WHEREAS, the parties hereto desire to amend the Backup Facility Agreement, the Participation Agreement and certain other Operative Agreements as set forth herein and to restate the Backup Facility Agreement in its entirety to read as set forth in the Backup Facility Agreement with the amendments specified below;

            NOW, THEREFORE, the parties hereto agree as follows:

            SECTION 1.  Defined Terms; References.  Unless otherwise specifically defined herein, each term used herein which is defined in Annex A to the Participation Agreement shall have the meaning assigned to such term in such Annex A. Each reference to "hereof", "hereunder", "herein" and "hereby" and each other similar reference and each reference to "this Agreement" and each other similar reference contained in the Backup Facility Agreement shall, after the Restatement Effective Date, refer to the Backup Facility Agreement as amended and restated hereby.

            SECTION 2.  Amendments

                        Upon the Restatement Effective Date:

            (a)  The Operative Agreements are amended by changing each reference to "The Chase Manhattan Bank" to "JPMorgan Chase Bank".

 

 

            (b)  Pursuant to Section 4.2 of the Backup Facility Agreement, the Banks agree that the current "Expiry Date" of November 7, 2002 shall be, and is hereby, extended to November 6, 2003, and each undersigned Bank shall remain a party to the Backup Facility Agreement as a Bank with an obligation to make (i) Revolving Facility Loans prior to its new Expiry Date in an aggregate principal amount not to exceed the amount of the Commitment set forth below, and (ii) a Term Loan in the amount of such Commitment on the terms set forth in the Backup Facility Agreement, in each case as such amounts may be adjusted from time to time as provided in the Backup Facility Agreement.

            (c)  The parties agree that notwithstanding anything to the contrary contained in Section 11.3 of the Participation Agreement, (i) the requirement that a Purchasing Bank be an Eligible Assignee may be waived by the Lessee in its sole and absolute discretion, without the requirement for any consent or waiver from any other party, and (ii) in the event that Lessee consents to a Purchasing Bank that is not an Eligible Assignee, the assigning Bank may assign Term Loans held by it to such Purchasing Bank, and in connection therewith, all the terms and provisions of Section 11.3 shall apply to such assignment (other than clause (a)(iv)).  

            (d)  The Borrower and Banks agree that, notwithstanding anything to the contrary contained in Section 14.5 of the Participation Agreement, if the SPC (or Lessee pursuant to Section 10.1 of the Participation Agreement) exercises any of its rights in Section 4.4 of the Backup Facility Agreement to require a Termed Out Bank to assign its Term Loan to a Term Loan Purchaser, and if such Term Loan Purchaser is an Eligible Assignee, then, the Agent Bank shall have the power and authority (without obtaining any consent or approval from the Borrower or any other Bank), but without any obligation to do so, to enter into such amendments to the Backup Facility Agreement and other Operative Agreements, deliver such notices and agreements, and take such other actions, as may be requested by the SPC (or Lessee) (in each case at the Lessee's sole cost and expense), in order to authorize the Term Loan held by such Term Loan Purchaser to be repaid from the proceeds of the issuance of Commercial Paper and replaced by a revolving Commitment of such Term Loan Purchaser (on all of the terms and conditions applicable to the Commitments of the Banks that are contained in the Backup Facility Agreement and other Operative Agreements), provided that the CP Administrative Agent and the Agent Bank shall have received written confirmation from S&P and Moody's that, immediately after giving effect to such Term Loan Purchaser's revolving Commitment, the then-current rating of the Commercial Paper shall not be qualified, reduced or withdrawn as a result thereof.  No such amendment or replacement shall increase the aggregate Commitment of the Banks and the Term Loan Purchaser beyond the aggregate Commitment of the Banks in effect prior to the funding of the Term Loan purchased by such Term Loan Purchaser.  

            (e)  Upon the Restatement Effective Date, the definition of "Indebtedness" contained in Annex A to the Participation Agreement is hereby amended by adding the following sentence at the end thereof:  

For the avoidance of doubt, the parties hereto agree that, in the case of Lessee, "Indebtedness" shall not include any reimbursement, indemnification, payment or similar obligations of Lessee with respect to any appeal or surety bonds issued for the benefit of Lessee in order to stay (whether by statute or contract) the enforcement against Lessee of the judgment obtained by the City of Hope in June 2002 or any interest accruing thereon, to the extent, but only to the extent, 

 

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that Lessee's obligations in respect thereof are secured by a pledge of cash, cash equivalents, liquid assets or other financial instruments.

            (f)  Upon the Restatement Effective Date, Section 10.1(iv) of the Guarantee is hereby amended by adding the following sentence at the end thereof:  

For the avoidance of doubt, the parties hereto confirm that the Liens permitted pursuant to this Section 10.1(iv) shall include liens on and deposits and pledges of cash, cash equivalents, liquid assets and other financial instruments to secure Lessee's reimbursement, indemnification, payment or similar obligations with respect to any appeal or surety bonds issued for the benefit of Lessee in order to stay (whether by statute or contract) the enforcement against Lessee of the judgment obtained by the City of Hope in June 2002 or any interest accruing thereon.  

            (g)  The Banks agree that the Backup Facility Agreement and the Participation Agreement are each amended, as of the Restatement Effective Date, by replacing the Commitment amounts on the signature pages thereof with the Commitments shown on Schedule 1 attached hereto.  

            SECTION 3.  Representations and Warranties.   Each of Lessee, Borrower, and Guarantor hereby represents and warrants that (i) its respective representations and warranties contained in the Participation Agreement and the Operative Agreements are, after giving effect to this Amendment and Restatement, true and correct in all material respects on and as of the Restatement Effective Date, and (ii) no Default will have occurred and be continuing as to it on such date.

            SECTION 4.  Governing Law.  This Amendment and Restatement shall be governed by and construed in accordance with the laws of the State of New York.

            SECTION 5.  Counterparts.  This Amendment and Restatement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.

            SECTION 6.  Effectiveness.  This Amendment and Restatement shall become effective on the date when the following conditions are met (the "Restatement Effective Date"):

            (a)  the Agent shall have received from each of the Borrower, the Banks, the Required Participants, the Lessor, the Lessee, and the Guarantor a counterpart hereof signed by such party or facsimile or other written confirmation (in form satisfactory to the Agent) that such party has signed a counterpart hereof;

            (b)  the Agent shall have received an opinion of in house counsel to Lessee, dated the Restatement Effective Date, in form and substance satisfactory to the Agent; and

            (c)  the Agent shall have received all documents the Administrative Agent may reasonably request relating to the existence of the Lessee, the authority for and the validity of this Amendment and Restatement, and any other matters relevant hereto, all in form and substance satisfactory to the Agent. 

 

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            SECTION 7.  Continuing Effect of the Participation Agreement and Operative Agreements.  Except as expressly provided herein, this Agreement shall not constitute an amendment or waiver of any other provision of the Backup Facility Agreement, the Participation Agreement or any Operative Agreement not expressly referred to herein and shall not be construed as a waiver or consent to any further or future action on the part of Lessee, the Lessor, Borrower or Guarantor that would require a waiver or consent of the Agent Bank, the Investors and/or the Banks except as may be provided for herein.  Except as expressly amended hereby, the provisions of the Participation Agreement and the Operative Agreements (together with any consent or waiver heretofore delivered pursuant thereto) are and shall remain in full force and effect. 

            SECTION 8.  Expenses.  Lessee agrees to pay or reimburse the Agent and Borrower for all of their reasonable out-of-pocket costs and expenses incurred in connection with the preparation, negotiation and execution of this Agreement, including, without limitation, the fees and disbursements of their counsel. 

            SECTION 9.  Construction.  The fact that all the parties hereto executed this Agreement should not be construed as requiring all such parties to execute or consent to any particular amendment of any Operative Agreement. 

            SECTION 10.  Instruction.  The Agent, Borrower and the Lessor are hereby instructed to execute this Agreement.

 

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            IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized officers as of the day and year first above written.

 

	 	
GENENTECH, INC., as Lessee and Guarantor

By:    /s/ LOUIS J. LAVIGNE                                   

            Name: Louis J. Lavigne

            Title: Executive Vice President and 

                       Chief Financial Officer

	 	 
	 	
DNA FINANCE CORP., as Borrower

By:    /s/ FRANK B. BILOTTA                                

            Name: Frank B. Bilotta

            Title: President

	 	 
	 	
VACAVILLE REAL ESTATE TRUST 2001, as

Lessor

By:  Wilmington Trust Company, not in its 

         individual capacity but solely as Trustee

            By:    /s/ MICHAEL G. OLLER, JR.           

                    Name: Michael G. Oller, Jr.

                    Title: Senior Financial Services Officer

	 	 
	 	
JPMORGAN CHASE BANK (formerly known as

THE CHASE MANHATTAN BANK), as Agent

Bank 

By:    /s/ DAWN LEE LUM                                      

            Name: Dawn Lee Lum

            Title: Vice President

	 	 
	 	
JPMORGAN CHASE BANK (formerly known as

THE CHASE MANHATTAN BANK), as

Collateral Agent

By:    /s/ DAWN LEE LUM                                      

            Name: Dawn Lee Lum

            Title: Vice President

	 	 

 

5

 

	 	
JPMORGAN CHASE BANK (formerly know as

THE CHASE MANHATTAN BANK), as

Administrative Agent 

By:    /s/ ANDREW TAYLOR                                 

           Name: Andrew Taylor

           Title: Vice President

	 	 
	 	
UBS AG, STAMFORD BRANCH, as a Bank

	 	 
	 	
By:    /s/ WILFRED V. SAINT                                

            Name: Wilfred V. Saint

            Title: Associate Director

                      Banking Products Services, US

	 	 
	 	
By:    /s/ LUKE GOLDSWORTHY                        

            Name: Luke Goldsworthy

            Title: Associate Director

                          Banking Product Services, US

	 	 
	 	
BNP PARIBAS, as a Bank

	 	 
	 	
By:    /s/ KATHERINE WOLFE                             

            Name: Katherine Wolfe

            Title: Director

	 	 
	 	
By:    /s/ JOSEPH MACK                                         

            Name: Joseph Mack

            Title: Associate

	 	 
	 	
ABN AMRO BANK, N.V., as a Bank

	 	 
	 	
By:    /s/ JAMES S. KREITLER                              

            Name: James S. Kreitler

            Title: Senior Vice President

	 	 
	 	
By:    /s/ HENRY SOSA                                            

            Name: Henry Sosa

            Title: Assistant Vice President

	 	 
	 	
MELLON BANK, N.A., as a Bank

	 	 
	 	
By:    /s/ LAWRENCE C. IVEY                              

            Name: Lawrence C. Ivey

            Title: First Vice President

 

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WACHOVIA BANK, N.A., as a Bank

	 	 
	 	
By:    /s/ DOUGLAS T. DAVIS                               

            Name: Douglas T. Davis 

            Title: Director

	 	 
	 	
CREDIT SUISSE FIRST BOSTON, as a Bank

	 	 
	 	
By:    /s/ CHRISTOPHER LALLY                          

            Name: Christopher Lally

            Title: Vice President

	 	 
	 	
By:    /s/ JENNIFER A. PIEZA                                

            Name: Jennifer A. Pieza

            Title: Associate

	 	 
	 	
BANK OF NEW YORK, as a Bank

	 	 
	 	
By:    /s/ REBECCA K. LEVINE                             

            Name: Rebecca K. Levine

            Title: Vice President

	 	 
	 	
WACHOVIA CAPITAL INVESTMENTS, INC.,

as an Investor

By:    /s/ DOUGLAS T. DAVIS                               

            Name: Douglas T. Davis

            Title: Director

	 	 
	 	
BANK HAPOALIM B.M., as an Investor

	 	

By:                                                                                 

            Name: 

            Title:

	 	 
	 	
BNP PARIBAS, as an Investor

	 	

By:    /s/ KATHERINE WOLFE                              

            Name: Katherine Wolfe

            Title: Director

	 	 
	 	
BNP PARIBAS, as an Investor

	 	

By:    /s/ JOSEPH MACK                                          

            Name: Joseph Mack

            Title: Associate

 

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SCHEDULE 1

 

COMMITMENT SCHEDULE

 

	
Bank
	
Commitment

	 	 	 
	
JPMORGAN CHASE BANK
	
$
	
70,971,800

	
UBS AG, STAMFORD BRANCH
	
$
	
70,971,800

	
BNP PARIBAS
	
$
	
70,971,800

	
ABN AMRO BANK, N.V.
	
$
	
50,000,000

	
MELLON BANK, N.A.
	
$
	
50,000,000

	
WACHOVIA BANK, N.A.
	
$
	
70,971,800

	
CREDIT SUISSE FIRST BOSTON
	
$
	
70,971,800

	
BANK OF NEW YORK
	
$
	
25,000,000

	 	 	 
	
            TOTAL
	
$
	
479,859,000COMTEX NEWS NETWORK, INC.

         1997 EMPLOYEE STOCK PURCHASE PLAN, AS AMENDED

                                           As of December 5, 2002
<PAGE>
                       TABLE OF CONTENTS

                                                             Page

1.   Purpose and Effect of Plan                                 1

2.   Shares Reserved for the Plan                               1

3.   Definitions                                                1

4.   Administration of the Plan                                 2

5.   Eligible Employees                                         3

6.   Election to Participate                                    3

7.   Method of Purchase and Investment Accounts                 3

8.   Stock Purchases                                            4

9.   Limitation on Purchases                                    4

10.  Title of Accounts                                          4

11.  Rights as a Shareholder                                    4

12.  Rights Not Transferable                                    4

13.  Change in Capital Structure                                5

14.  Retirement, Termination and Death                          5

15.  Amendment of the Plan                                      5

16.  Termination of the Plan                                    5

17.  Effective Date of Plan                                     6

18.  Government and Other Regulations                           6

19.  Indemnification of Committee                               6

20.  Governing Law                                              6
<PAGE>
                   COMTEX NEWS NETWORK, INC.
         1997 EMPLOYEE STOCK PURCHASE PLAN, AS AMENDED

1.   Purpose and Effect of Plan

     The purpose of the Plan is to secure for the Company and its
shareholders the benefits of the incentive inherent in the
ownership of Common Stock by present and future employees of the
Company and its Subsidiaries.  The Plan is intended to comply
with the terms of Code section 423 and Rule 16b-3 of the Act.

2.   Shares Reserved for the Plan

     There shall be reserved for issuance and purchase by
employees under the Plan an aggregate of Six Hundred Thousand
(600,000) shares of Common Stock, subject to adjustment as
provided in Section 13.  Shares subject to the Plan shall be
authorized but unissued shares acquired.  Shares needed to
satisfy the needs of the Plan may be newly issued by the Company
or acquired by purchases at the expense of the Company on the
open market or in private transactions, at the discretion of the
Company.

3.   Definitions

     Where indicated by initial capital letters, the following
terms shall have the following meanings:

     (a)  Act: The Securities Exchange Act of 1934.

     (b)  Board:  The Board of Directors of the Company.

     (c)  Code:  The Internal Revenue Code of 1986, as amended,
or any subsequently enacted federal revenue law.  A reference to
a particular section of the Code shall include a reference to any
regulations issued under the section and to the corresponding
section of any subsequently enacted federal revenue law.

     (d)  Committee:  The committee established pursuant to
Section 4 to be responsible for the general administration of the
Plan.

     (e)  Common Stock:  The Company's Common Stock, $0.01 par
value.

     (f)  Company: COMTEX News Network, Inc. a Delaware
corporation, and any successor by merger, consolidation or
otherwise.

     (g)  Compensation:  The total earnings, prior to
withholding, paid to an Eligible Employee during the applicable
pay period, including bonuses, commissions, overtime and salary
reduction contributions pursuant to a Code section 125 or 401(k)
plan.

     (h)  Custodian: A financial institution or other corporate
entity selected by the Company from time to time to act as
custodian for the Plan.

     (i)  Eligible Employee:  Any employee of the Company or its
Subsidiaries who meets the eligibility requirements of Section 5
and Section 9.

     (j)  Enrollment Form:  The form filed by a Participant with
the Committee authorizing payroll deductions pursuant to Section
6.
     (k)  Fair Market Value:  The closing trading price of the
Common Stock on the NASD OTC Electronic Bulletin Board on the
date in question, or, if the Common Stock was not quoted on such
date, the closing trading price on the last day prior thereto on
which the Common Stock was quoted.

     (l)  Grant Date:  The first business day of each January or
July on which shares of Common Stock are or could be traded on
the NASD OTC Electronic Bulletin Board.

     (m)  Investment Account:  The account established for each
Participant to hold Common Stock purchased under the Plan
pursuant to Section 7.

     (n)  Investment Date:   The last business day of each June
or December on which shares of Common Stock are or could be
traded on the NASD OTC Electronic Bulletin Board.

     (o)  Parent:  Any corporation (other than the Company) in an
unbroken chain of corporations ending with the Company if, as of
an Investment Date, each of the corporations other than the
Company owns stock possessing 50% or more of the total combined
voting power of all classes of stock in one of the other
corporations in such chain.

     (p)  Participant: An Eligible Employee who elects to
participate in the Plan by filing an Enrollment Form pursuant to
Section 6.

     (q)  Payroll Deduction Account:  The account established for
a Participant to hold payroll deductions pursuant to Section 6.

     (r)  Plan:  The "COMTEX News Network, Inc. 1997 Employee
Stock Purchase Plan," as set forth herein and as amended from
time to time.

     (s)  Purchase Price: A percentage of the lower of the Fair
Market Value of a share of Common Stock on the Grant Date or on
the Investment Date.  The percentage shall be eighty-five percent
(85%) unless the Committee, in its sole discretion, increases the
percentage at any time.  After any such increase, the Committee,
in its sole discretion, may decrease the percentage, but not
below eighty-five percent (85%), at any time.  Any increase or
decrease shall be communicated to Eligible Employees not less
than thirty (30) days prior to the first Grant Date affected by
the change.

     (t)  Subsidiary or Subsidiaries:  Any corporation (other
than the Company) in an unbroken chain of corporations beginning
with the Company if, as of an Investment Date, each of the
corporations other than the last corporation in the unbroken
chain owns stock possessing 50% or more of the total combined
voting power of all classes of stock in one of the other
corporations in such chain.

4.   Administration of the Plan

     The Plan shall be administered by the Committee, consisting
of not less than two members appointed by the Board.  The
Committee shall be the Compensation Committee of the Board unless
the Board shall appoint another committee to administer the Plan.
The Board from time to time may appoint members previously
appointed and may fill vacancies, however caused, in the
Committee.

     Subject to the express provisions of the Plan, the Committee
shall have the authority to take any and all actions (including
directing the Custodian as to the acquisition of shares)
necessary to implement the Plan and to interpret the Plan, to
prescribe, amend and rescind rules and regulations relating to
it, and to make all other determinations necessary or advisable
in administering the Plan.  All of such determinations shall be
final and binding upon all persons.  A quorum of the Committee
shall consist of a majority of its members and the Committee may
act by vote of a majority of its members at a meeting at which a
quorum is present, or without a meeting by a written consent to
their action taken signed by all members of the Committee.  The
Committee may request advice or assistance or employ such other
persons as are necessary for proper administration of the Plan.
The Committee may delegate administration of the Plan to one or
more employees of the Company or any Subsidiary.

5.   Eligible Employees

     All employees of the Company or its Subsidiaries shall be
eligible to participate in the Plan as of the first Grant Date
coincident with or following commencement of employment, or as
soon as administratively practicable thereafter.  Eligibility to
participate is also subject to the provisions of Section 9.

     No director of the Company or of any Subsidiary who is not
an employee shall be eligible to participate in the Plan.  No
independent contractor who is not an employee shall be eligible
to participate in the Plan.

6.   Election to Participate

     Each Eligible Employee may become a Participant by filing
with the Committee an Enrollment Form authorizing specified
regular payroll deductions from his or her Compensation.  Such
regular payroll deductions shall be in increments of Ten Dollars
($10.00) subject to a minimum deduction of Ten Dollars ($10.00)
per pay period.  All regular payroll deductions shall be credited
to the Payroll Deduction Account that the Company has established
in the name of the Participant.  The Board may establish limits
on the amounts of payroll deductions and may change those limits
from time to time.

     Original Enrollment Forms for the six month period must be
filed before the Grant Date as prescribed by the Committee.
Failure to file an Enrollment Form within the prescribed filing
period shall preclude the Eligible Employee from participation
until the next Grant Date.

     A Participant may cease his or her participation in the Plan
at any time.  An Eligible Employee who has ceased to be a
Participant may not again become a Participant until the next
Grant Date.  Not more than one (1) time during any semi-annual
period, a Participant may decrease his or her payroll deduction
by filing a new Enrollment Form.  The change will be effective as
of the payroll period following the date of the Participant's
election change through the remainder of the semi-annual period.

7.   Method of Purchase and Investment Accounts

      Each Participant having eligible funds in his Payroll
Deduction Account on an Investment Date shall be deemed, without
any further action, to have purchased the number of shares
(excluding fractional shares unless otherwise determined by the
Committee) which the eligible funds in his Payroll Deduction
Account could purchase at the Purchase Price on that Investment
Date.  All shares purchased shall be maintained by the Custodian
in a separate Investment Account for each Participant.   All cash
dividends paid with respect to shares of the Common Stock shall
be added to a Participant's Payroll Deduction Account and shall
be used to purchase shares of Common Stock for the Participant's
Investment Account.  Expenses incurred in the purchase of such
shares shall be paid by the Company.

     All dividends of Common Stock distributed in-kind shall be
added to the shares held for a Participant in his Investment
Account.  Any distribution of shares with respect to shares of
Common Stock held for a Participant, other than a dividend of
Common Stock, shall be distributed to the Participant as soon as
practicable.  Certificates for full shares will be issued and
fractional shares will be sold and the proceeds of sale, less
selling expenses, distributed to the Participant.

8.   Stock Purchases

     The Custodian shall acquire shares of Common Stock for
Participants as of each Investment Date from the Company or, if
directed by the Committee, by purchases on the open market or in
private transactions using total payroll deduction amounts
received by the Custodian.  If shares are purchased in one or
more transactions on the open market or in private transactions
at the direction of the Committee, the Company will pay the
Custodian the difference between the Purchase Price and the price
at which such shares are purchased for Participants.

9.   Limitation on Purchases

     No Participant may purchase during any one calendar year
under the Plan (or combined with any other plan qualified under
Code section 423) shares of Common Stock having a Fair Market
Value (determined by reference to the Fair Market Value on each
date of purchase) in excess of $25,000.  This limitation shall be
interpreted to comply with Code section 423(b)(8).

     A Participant's Payroll Deduction Account may not be used to
purchase Common Stock on any Investment Date to the extent that
after such purchase the Participant would own (or be considered
as owning within the meaning of Code section 424(d)) stock
possessing 5 percent or more of the total combined voting power
of the Company or its Parent or Subsidiary.  For this purpose,
stock which the Participant may purchase under any outstanding
option shall be treated as owned by such Participant.  As of the
first Investment Date on which this paragraph limits a
Participant's ability to purchase Common Stock, the employee
shall cease to be a Participant.

10.  Title of Accounts

     The Custodian shall maintain an Investment Account for each
Participant.  Each Investment Account shall be in the name of the
Participant or, if he so indicates on his Enrollment Form, in his
name jointly with a member of his family, with right of
survivorship.  A Participant who is a resident of a jurisdiction
which does not recognize such a joint tenancy may have an
Investment Account in his name as tenant in common with a member
of his family, without right of survivorship.

11.  Rights as a Shareholder

     A Participant shall have the right at any time to obtain a
certificate for the full shares of Common Stock credited to his
Investment Account.  A Participant shall have the right at any
time to direct that any full shares in his Investment Account be
sold and that the proceeds, less expenses of sale, be remitted to
him.  When a Participant ceases to be a Participant, the
Participant may elect to have his shares sold by the Custodian
and the proceeds, after selling expenses, remitted to him or the
Participant may elect to have a certificate for the full shares
of Common Stock credited to his Investment Account forwarded to
him.  In either event, the Custodian will sell any fractional
shares held in his Investment Account to the Company and remit
the proceeds of such sale, less selling expenses, and the balance
in his Payroll Deduction Account to him.

     As a condition of participation in the Plan, each
Participant agrees to notify the Company if he sells or otherwise
disposes of any of his shares of Common Stock within two years of
the Grant Date on which such shares were purchased.

12.  Rights Not Transferable

     Rights under the Plan are not transferable by a Participant,
except by will or by the laws of descent and distribution.

13.  Change in Capital Structure

     In the event of a stock dividend, spinoff, stock split or
combination of shares, recapitalization or merger in which the
Company is the surviving corporation or other change in the
Company's capital stock (including, but not limited to, the
creation or issuance to shareholders generally of rights, options
or warrants for the purchase of common stock or preferred stock
of the Company), the number and kind of shares of stock or
securities of the Company to be subject to the Plan, the maximum
number of shares or securities which may be delivered under the
Plan, the selling price and other relevant provisions shall be
appropriately adjusted by the Committee, whose determination
shall be binding on all persons.

     If the Company is a party to a consolidation or a merger in
which the Company is not the surviving corporation, a transaction
that results in the acquisition of substantially all of the
Company's outstanding stock by a single person or entity, or a
sale or transfer of substantially all of the Company's assets,
the Committee may take such actions with respect to the Plan as
the Committee deems appropriate.

     Notwithstanding anything in the Plan to the contrary, the
Committee may take the foregoing actions without the consent of
any Participant, and the Committee's determination shall be
conclusive and binding on all persons for all purposes.

14.  Retirement, Termination and Death

     In the event of a Participant's retirement, termination of
active employment, or death, the amount in his Payroll Deduction
Account shall be refunded to him, and certificates will be issued
for full shares held in his Investment Account.  In the event of
his death, the amount in his Payroll Deduction Account and all
shares in his Investment Account shall be delivered to the
beneficiary designated by the Participant in a writing filed with
the Company.  If no beneficiary has been designated, or if the
designated beneficiary does not survive the Participant, such
amount and all shares shall be delivered to his estate.

15.  Amendment of the Plan

     The Board of Directors may at any time, or from time to
time, amend the Plan in any respect; provided, however, that the
shareholders of the Company must approve any amendment that would
materially (i) increase the benefits accruing to Participants
under the Plan, (ii) increase the number of securities that may
be issued under the Plan, or (iii) modify the requirements as to
eligibility for participation in the Plan.

16.  Termination of the Plan

     The Plan and all rights of employees hereunder shall
terminate:

          (a)  on the Investment Date that Participants become
     entitled to purchase a number of shares greater than the
     number of reserved shares remaining available for purchase;
     or

          (b)  at any prior date at the discretion of the Board
     of Directors.

     In the event that the Plan terminates under circumstances
described in (a) above, reserved shares remaining as of the
termination date shall be issued to Participants on a prorata
basis.  Upon termination of the Plan, all amounts in an
employee's Payroll Deduction Account that are not used to
purchase Common Stock will be refunded.

17.  Effective Date of Plan

     The Plan was approved by the Board of Directors on September
15, 1997 subject to approval by the Company's shareholders.  Such
approval was obtained at the Company's Annual Meeting on
December 11, 1997.

18.  Government and Other Regulations

     The Plan, and the grant and exercise of the rights to
purchase shares hereunder, and the Company's obligation to sell
and deliver shares upon the exercise of rights to purchase
shares, shall be subject to all applicable federal, state and
foreign laws, rules and regulations, and to such approvals by any
regulatory or government agency as may, in the opinion of counsel
for the Company, be required.

19.  Indemnification of Committee

     Service on the Committee shall constitute service as a
director of the Company so that members of the Committee shall be
entitled to indemnification and reimbursement as directors of the
Company pursuant to its Articles of Incorporation and Bylaws.

20.  Governing Law

     The Plan shall be construed and administered in accordance
with the laws of the state of Delaware.

<PAGE>

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