Document:

ex4_2.htm

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
4.2

    

    MICROCHIP
TECHNOLOGY INCORPORATED

    INTERNATIONAL STOCK PURCHASE
AGREEMENT

    

    I hereby elect to participate in the
International Employee Stock Purchase Plan (the “IESPP”) until such time as I
elect to withdraw from the IESPP either by written notification to the Stock
Administrator or until termination of the Plan by the Company, and I hereby
subscribe to purchase shares of common stock of Microchip Technology
Incorporated (“Common Stock”) in accordance with the provisions of this
Agreement and the IESPP.  I hereby authorize payroll deductions from
each of my paychecks during the time in which I participate in the IESPP in the
1% multiple of my earnings (not to exceed a maximum of 10%) specified in my
attached Enrollment Form.

    

    I understand that the Plan is a
six-month offering period.  The plans begins on the first business day
of June and December of each year, and my participation will automatically
remain in effect from one offering period to the next offering period in
accordance with my payroll deduction authorization, unless I withdraw from the
IESPP or change the rate of my payroll deduction or my employment status
changes.

    

    I understand that my payroll deductions
will be accumulated for the purchase of shares of Common Stock on the last
business day of each offering period of participation.  The purchase
price per share will be equal to 85% of the lower of (i) the fair
market value per share of Common Stock on my entry date into the six-month
offering period or (ii) the fair market value per share on the purchase
date.

    

    I understand that I can withdraw from
the IESPP at any time prior to the last 5 business days of a period of
participation and elect either to have the Company refund all my payroll
deductions for that period or to have such payroll deductions applied to the
purchase of Common Stock at the end of such period.  However, I may
not rejoin that particular six-month offering period at any later
date.  Upon my termination of employment or change to ineligible
employee status, my participation in the IESPP will immediately cease and all my
payroll deductions for the six-month period in which such termination or change
occurs will be refunded.  Should I die or become disabled while an
IESPP participant, payroll deductions will automatically cease on my behalf, and
I or my estate may, at any time prior to the last 5 business days of the
semi-annual period in which I die or become disabled, elect to have my payroll
deductions for that period applied to the purchase of Common Stock at the end of
that period; otherwise, those deductions will be refunded.  I further
understand that I may reduce my rate of my payroll deductions on one occasion
during a six-month offering period, but that I may only increase my rate of
payroll deductions at the beginning of a new six-month offering
period.

    

    I understand that my shares will be
placed in a brokerage account at the end of each six-month offering period of
participation.  The account will be opened in the participant’s
name.

    

    I understand that the Company has the
right, exercisable in its sole discretion, to amend or terminate the IESPP at
any time, with such amendment or termination to become effective immediately
following the exercise of outstanding purchase rights at the end of any current
six-month period of participation.  Should the Company elect to
terminate the IESPP, I will have no further rights to purchase shares of Common
Stock pursuant to this Agreement.

    

    I understand that the IESPP sets forth
restrictions (i) limiting the maximum number of shares which I may purchase per
the six-month period of participation and (ii) prohibiting me from purchasing
more than $25,000 worth of Common Stock per calendar year.

    

    I acknowledge that I have received a
copy of the official Plan Prospectus summarizing the operation of the
IESPP.  I have read this Agreement and the Prospectus and hereby agree
to be bound by the terms of both this Agreement and the IESPP.  The
effectiveness of this Agreement is dependent upon my eligibility to participate
in the IESPP.

    

    
      	 
      	 	 
      
	
               

            	 	
               

            
	
              Print
      Name

            	 	
              Signature

            
	 
      	 	 
      
	 
      	 	 
      
	 Start
      Date of My Participation: 	
               

            	 	 Today’s
      Date:  	
               

            
	 
      	 	 
      

    

    

    

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

      

    

    MICROCHIP
TECHNOLOGY INCORPORATED

    International
Employee Stock Purchase Plan

    Enrollment
Form

    

    

    Please
print and complete all information below:

    

    

    
      	
              Full
      Name:

            	 
      	 	
              Badge
      #:

            	 
      
	 
      	
              Last                                          First                            M

            	 	 
      	 
      

    

    

    

    
      	
              Home
      Address:

            	 
      
	 
      
	 
      

    

    

    
      	
              Social
      Security Number:

            	 
      	 	
              Date
      of Hire:

            	 
      

    

    
      

    

    
      
        

      

    

     

    SECTION
I - ELECTION

    

    Choose
One:

    

      I
hereby decline to
participate in the International Employee Stock Purchase Plan for this
semi-annual participation period.

    

      I
hereby authorize
Microchip Technology Incorporated to deduct the following amount from my salary
each pay period (gross salary).

    

    CIRCLE
ONE:     1%     2%     3%     4%     5%     6%     7%     8%     9%     10%

     

    
      
        
          
            

          

        

      

    

     

    SECTION
II - BENEFICIARY

    

    
      	
              Beneficiary(ies)
      - List additional beneficiaries on back

            	 
      	
              Relationship
      of Beneficiary(ies)

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      

    

    
       

       

      
        
          

        

         

      

    

    

    
      	 
      
	
              Subscription
      Date:

            	
               

            	 	 
      
	 
      	 	 
      
	
               

            	 	
               

            
	
              Signature
      of Employee

            	 	
              Dateex4_3.htm

    

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      EXHIBIT
4.3

      MICROCHIP
TECHNOLOGY INCORPORATED

      International
Employee Stock Purchase Plan

      Change
Form

      

      

      Please
print and complete all information below:

      

      
        	
                Full
      Name:

              	 
      	 	
                Badge
      #:

              	 
      
	 
      	
                Last                                      First                                M

              	 	 
      	 
      

      

      

      
        	
                Home
      Address:

              	 
      
	 
      
	 
      

      

      

      
        	
                Social
      Security Number:

              	 
      	 	
                Date
      of Hire:

              	 
      

      

      
        

      

       

      
        
          

        

      SECTION
I - ELECTION

      

      Change
Payroll Deduction Percentage:

      

      I hereby
authorize Microchip
Technology Incorporated to change my current deduction percentage to the
following:

      

      CIRCLE
ONE:     1%     2%     3%     4%     5%     6%     7%     8%     9%     10%

      
        

      

       

      
        
          

        

      SECTION
II - BENEFICIARY

      

      

      
        	
                Beneficiary(ies)
      - List additional beneficiaries on back

              	 
      	
                Relationship
      of Beneficiary(ies)

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      

      

      

      
        
          
            
              

            

          

           

          SECTION
III – WITHDRAW FROM THE EMPLOYEE STOCK PURCHASE PLAN (check one)

          

          
            	
                     
      

                  	
                     ̈

                  	
                    Stop
      my contributions and purchase the Microchip Technology Incorporated shares
      on the next purchase date.

                  

          

          

          
            	
                     
      

                  	
                     ̈

                  	
                    Stop
      my contributions and refund my payroll Employee Stock Purchase Plan
      deductions
collected.

                  

          

      

      

      

      
        	
                 

                 

              	 	
                 

                 

              
	
                Signature
      of Employee

              	 	
                Dateex4_4.htm

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    EXHIBIT
4.4

     

    MICROCHIP
TECHNOLOGY INCORPORATED

     

    2001
EMPLOYEE STOCK PURCHASE PLAN

     

    As
Amended Through August 15, 2003

    

     

    The
following constitute the provisions of the 2001 Employee Stock Purchase Plan of
Microchip Technology Incorporated, as amended through August 15,
2003.

     

    1. Purpose.  The
purpose of the Plan is to provide employees of the Company and one or more of
its Corporate Affiliates an opportunity to purchase Common Stock of the Company
through accumulated payroll deductions.  It is the intention of the
Company to have the Plan qualify as an “Employee Stock Purchase Plan” under
Section 423 of the Code.  The provisions of the Plan, accordingly,
shall be construed so as to extend and limit participation in a uniform and
nondiscriminatory basis consistent with the requirements of Section
423.

     

    2. Definitions.

     

    (a) “Administrator” shall
mean the Committee designated by the Board to administer the Plan pursuant to
Section 14.

     

    (b)  “Board” shall mean the
Board of Directors of the Company.

     

    (c) “Change of
Control”  shall mean the occurrence of any of the following
events:

     

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

     

    (ii) the
consummation of the sale or disposition by the Company of all or substantially
all of the Company’s assets; or

     

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

     

    (d) “Code” shall mean the
Internal Revenue Code of 1986, as amended.

     

    (e) “Committee” means a
committee of the Board appointed by the Board in accordance with Section 14
hereof.

     

    (f) “Common Stock” shall
mean the common stock of the Company, par value $0.001.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (g) “Company” shall mean
Microchip Technology Incorporated, a Delaware corporation.

     

    (h) “Compensation” shall
mean the following items paid to an Eligible Employee by the Company and/ or one
or more Corporate Affiliates during such individual’s period of participation in
the Plan: (i) regular base salary, and (ii) any pre-tax contributions made by
the Eligible Employees to any Code Section 401(k) plan, any Code Section 125
Plan, any unfunded non-qualified deferred compensation plan described in
Sections 201(2), 301(a)(3) or 401(a)(1) of ERISA, and (iii) all overtime
payments, bonuses, commissions, profit-sharing distributions and other incentive
type payments. There shall be excluded any contributions (except 401(k) and 125
contributions) made on the Eligible Employee’s behalf by the Company or
Corporate Affiliate.

     

    (i) “Corporate Affiliate”
shall mean any parent or subsidiary of the Company (as defined in Section 424 of
the Code) which is incorporated in the United States, including any parent or
subsidiary corporation which becomes such after the Effective Date.

     

    (j) “Effective Date” shall
mean March 1, 2002.

     

    (k) “Eligible Employee”
shall mean any individual who is a common law employee of any Participating
Company and whose customary employment with the Participating Company is at
least 20 hours per week and more than five (5) months in any calendar
year.  For purposes of the Plan, the employment relationship shall be
treated as continuing intact while the individual is on sick leave or other
leave of absence approved by the Company.  Where the period of leave
exceeds 90 days and the individual's right to reemployment is not guaranteed
either by statute or in writing signed by a duly authorized officer of the
Company, the employment relationship shall be deemed to have terminated on the
91st day of such leave.

     

    (l) “Entry Date” shall
mean the first Trading Day of any Offering Period. An Entry Date occurs on the
first Trading Day in March or September.

     

    (m) “ERISA” shall mean the
Employee Retirement Income Security of 1974, as amended.

     

    (n) “Exercise Date” shall
mean the first Trading Day of March and September.

     

    (o) “Fair Market Value”
shall mean the closing sales price for such stock (or the closing bid, if no
sales were reported) as quoted on such exchange or system on the date of
determination, as reported in The Wall Street Journal or
such other source as the Board deems reliable; provided, however, that if there
is no closing sales price (or closing bid price, if applicable) for such date,
then the closing sales price (or closing bid price, if applicable) for the next
day for which such quotation exists.

     

    (p) “Offering Periods”
shall mean a period of time during which an option granted pursuant to the Plan
may be exercised. The Plan shall be implemented by a series of Offering Periods
(“Series of Offering Periods”). Each Series of Offering Periods shall contain
four (4) Offering Periods. The first Offering Period in the Series shall
commence on the first Trading Day on or after March 1, 2002, and shall end on
the first Trading Day on or after March 1, 2004 (the “Last Day of the
Series”).  The second Offering Period in the Series shall commence on
the next following Entry Date, shall last approximately 18 months and shall end
on the Last Day of the Series. The third Offering Period in the Series shall
commence on the next following Entry Date, shall last approximately 12 months
and shall end on the Last Day of the Series. The fourth Offering Period in the
Series shall commence on the next following Entry Date, shall last approximately
six (6) months and shall end on the Last Day of the Series.  A new
Series of Offering Periods shall commence on the Last Day of the
Series.  The duration and timing of Offering Periods may be changed
pursuant to Section 19 of this Plan.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (q) “Participating
Company” shall mean the Company and such Corporate Affiliates as may be
designated from time to time by the Board to extend the benefits of the Plan to
their Eligible Employees.

     

    (r) “Plan” shall mean this
Employee Stock Purchase Plan.

     

    (s) “Purchase Period”
shall mean the approximately six (6) month period commencing on one Exercise
Date and ending with the next Exercise Date, except that the first Purchase
Period of any Offering Period shall commence on the first Entry Date and end
with the next Exercise Date.

     

    (t) “Purchase Price” shall
mean 85% of the Fair Market Value of a share of Common Stock on the Entry Date
or on the Exercise Date, whichever is lower; provided, however, that the
Purchase Price may be adjusted by the Administrator pursuant to Section
20.

     

    (u) “Trading Day” shall
mean a day on which national stock exchanges and the Nasdaq System are open for
trading.

     

    3. Eligibility.

     

    (a) Generally.  Any
Eligible Employee on a given Entry Date shall be eligible to participate in the
Plan.

     

    (b) Limitations.  Any
provisions of the Plan to the contrary notwithstanding, no Eligible Employee
shall be granted an option under the Plan (i) to the extent that, immediately
after the grant, such Eligible Employee (or any other person whose stock would
be attributed to such Eligible Employee pursuant to Section 424(d) of the Code)
would own capital stock of the Company and/or hold outstanding options to
purchase such stock possessing five percent (5%) or more of the total combined
voting power or value of all classes of the capital stock of the Company or of
any Subsidiary, or (ii) to the extent that his or her rights to purchase stock
under all employee stock purchase plans of the Company and its subsidiaries
accrues at a rate which exceeds $25,000.00 worth of stock (determined at the
fair market value of the shares at the time such option is granted) for each
calendar year in which such option is outstanding at any time.

     

    4. Offering Periods. The
Plan shall be implemented by a series of Offering Periods (“Series of Offering
Periods”). Each Series of Offering Periods shall contain four (4) Offering
Periods.  The first Offering Period in the Series shall commence on
the first Trading Day on or after March 1, 2002, and shall end on the first
Trading Day on or after March 1, 2004 (the “Last Day of the Series”). The second
Offering Period in the Series shall commence on the next following Entry Date,
shall last approximately 18 months and shall end on the Last Day of the Series.
The third Offering Period in the Series shall commence on the next following
Entry Date, shall last approximately 12 months and shall end on the Last Day of
the Series. The fourth Offering Period in the Series shall commence on the next
following Entry Date, shall last approximately six (6) months and shall end on
the Last Day of the Series.  A new Series of Offering Periods shall
commence on the Last Day of the Series.  The duration and timing of
Offering Periods may be changed pursuant to Section 19 of this
Plan.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    5. Participation. An
Eligible Employee may become a participant in the Plan by completing a
subscription agreement authorizing payroll deductions in the form of Exhibit A to this
Plan and filing it with the Company's stock plan administrator, on a date
determined by such administrator, which shall be no later than five (5) Trading
Days prior to the applicable Entry Date.

     

    6. Payroll
Deductions.

     

    (a) At the
time a participant files his or her subscription agreement, he or she shall
elect to have payroll deductions made on each pay day during the Offering Period
in any multiple of one-percent (1%), but not exceeding ten-percent (10%) of the
Compensation which he or she receives during each Purchase Period; provided,
however, that should a payday occur on an Exercise Date, a participant shall
have the payroll deductions made on such day applied to his or her account under
the new Offering Period or Purchase Period, as the case may be.  A
participant's subscription agreement shall remain in effect for successive
Offering Periods unless terminated as provided in Section 10
hereof.

     

    (b) Payroll
deductions for a participant shall commence on the first payday following the
Entry Date and shall end on the last payday in the Offering Period to which such
authorization is applicable, unless sooner terminated by the participant as
provided in Section 10 hereof. All payroll deductions made for a participant
shall be credited to his or her account under the Plan and shall be withheld in
whole percentages only.  A participant may not make any additional
payments into such account.

     

    (c) A
participant may discontinue his or her participation in the Plan as provided in
Section 10 hereof, or may decrease (but not increase) the rate of his or her
payroll deductions during the Offering Period by completing or filing with the
Company a new subscription agreement authorizing a change in payroll deduction
rate. No more than one (1) such reduction shall be allowed in any Purchase
Period. A participant may only increase the rate of his or her payroll
deductions beginning with the next Offering Period which lasts 24 months. The
change in rate shall be effective as soon as administratively
practicable.

     

    (d) Notwithstanding
the foregoing, to the extent necessary to comply with Section 423(b)(8) of the
Code and Section 3(b) hereof, a participant's payroll deductions may be
decreased to zero percent (0%) at any time during a Purchase
Period.  Payroll deductions shall recommence at the rate provided in
such participant's subscription agreement at the beginning of the first Purchase
Period which is scheduled to end in the following calendar year, unless
terminated by the participant as provided in Section 10 hereof.

     

    (e) At the
time the option is exercised, in whole or in part, or at the time some or all of
the Company's Common Stock issued under the Plan is disposed of, the participant
must make adequate provision for the Company's federal, state, or other tax
withholding obligations, if any, which arise upon the exercise of the option or
the disposition of the Common Stock.  At any time, the Company may,
but shall not be obligated to, withhold from the participant's compensation the
amount necessary for the Company to meet applicable withholding obligations,
including any withholding required to make available to the Company any tax
deductions or benefits attributable to sale or early disposition of Common Stock
by the Eligible Employee.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    7. Grant of
Option.  On the Entry Date of each Offering Period, each
Eligible Employee participating in such Offering Period shall be granted an
option to purchase on each Exercise Date during such Offering Period (at the
applicable Purchase Price) up to a number of shares of the Company's Common
Stock determined by dividing such Eligible Employee's payroll deductions
accumulated prior to such Exercise Date and retained in the Participant's
account as of the Exercise Date by the applicable Purchase Price; provided that
in no event shall an
Eligible Employee be permitted to purchase during each Purchase Period more than
7,5001 shares of the Company's Common Stock (subject
to any adjustment pursuant to Section 19), and provided further that such
purchase shall be subject to the limitations set forth in Sections 3(b) and 6
hereof.  The Eligible Employee may accept the grant of such option by
turning in a completed Subscription Agreement (attached hereto as Exhibit A) to the
stock plan administrator, on a date determined by such administrator, which
shall be no later than five (5) Trading Days prior to an applicable Entry Date.
The Administrator may, for future Offering Periods, increase or decrease, in its
absolute discretion, the maximum number of shares of the Company's Common Stock
an Eligible Employee may purchase during each Purchase Period of such Offering
Period.  Exercise of the option shall occur as provided in Section 8
hereof, unless the participant has withdrawn pursuant to Section 10
hereof.  The option shall expire on the last day of the Offering
Period.

     

    8. Exercise of
Option.

     

    (a) Unless a
participant withdraws from the Plan as provided in Section 10 hereof, his or her
option for the purchase of shares shall be exercised automatically on the
Exercise Date, and the maximum number of full shares subject to option shall be
purchased for such participant at the applicable Purchase Price with the
accumulated payroll deductions in his or her account.  No fractional
shares shall be purchased; any payroll deductions accumulated in a participant's
account which are not sufficient to purchase a full share shall be retained in
the participant's account for the subsequent Purchase Period or Offering Period,
subject to earlier withdrawal by the participant as provided in Section 10
hereof.  Any other funds left over in a participant's account after
the Exercise Date shall be returned to the participant.  During a
participant's lifetime, a participant's option to purchase shares hereunder is
exercisable only by him or her.

     

    (b) If the
Administrator determines that, on a given Exercise Date, the number of shares
with respect to which options are to be exercised may exceed (i) the number of
shares of Common Stock that were available for sale under the Plan on the Entry
Date of the applicable Offering Period, or (ii) the number of shares available
for sale under the Plan on such Exercise Date, the Administrator may in its sole
discretion (x) provide that the Company shall make a pro rata allocation of the
shares of Common Stock available for purchase on such Entry Date or Exercise
Date, as applicable, in as uniform a manner as shall be practicable and as it
shall determine in its sole discretion to be equitable among all participants
exercising
options to purchase Common Stock on such Exercise Date, and continue all
Offering Periods then in effect, or (y) provide that the Company shall make a
pro rata allocation of the shares available for purchase on such Entry Date or
Exercise Date, as applicable, in as uniform a manner as shall be practicable and
as it shall determine in its sole discretion to be equitable among all
participants exercising options to purchase Common Stock on such Exercise Date,
and terminate any or all Offering Periods then in effect pursuant to Section 20
hereof.  The Company may make pro rata allocation of the shares
available on the Entry Date of any applicable Offering Period pursuant to the
preceding sentence, notwithstanding any authorization of additional shares for
issuance under the Plan by the Company's shareholders subsequent to such Entry
Date.

    
      
         

         

          
            

          

        

        
          1 As
adjusted for a May 2002 3-for-2 stock split.

        

      

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

    

    9. Delivery.  As
soon as reasonably practicable after each Exercise Date on which a purchase of
shares occurs, the Company shall arrange the delivery to each participant the
shares purchased upon exercise of his or her option in a form determined by the
Administrator.

     

    10. Withdrawal.

     

    (a) At any
time prior to the last five (5) Trading Days of a Purchase Period, a participant
may withdraw from the Plan by giving written notice to the Company in the form
of Exhibit B to
this Plan. The participant shall elect to either have (i) all of the
participant's payroll deductions credited to his or her account used to purchase
shares at the next Exercise Date or (ii) all payroll deductions credited to his
or her account refunded.  In neither event will any further payroll
deductions for the purchase of shares be made for such Offering
Period.  If a participant withdraws from an Offering Period, the
participant may not re-enroll in the Plan until the next Offering Period which
lasts 24 months, and payroll deductions shall not resume at the beginning of
such Offering Period unless the participant delivers to the Company a new
subscription agreement in a manner provided for in Section 5.

     

    (b) A
participant's withdrawal from an Offering Period shall not have any effect upon
his or her eligibility to participate in any similar plan which may hereafter be
adopted by the Company.

     

    11. Termination of
Employment.  In the event a participant ceases to be an
Eligible Employee of the Company or any Participating Company (other than as a
result of death or Permanent Disability), any payroll deductions credited to
such participant's account during the Offering Period but not yet used to
purchase shares under the Plan shall be returned to such participant and such
participant's option shall be automatically terminated.  In the event
a participant ceases to be an Employee of the Company or any Participating
Company as a result of death or Permanent Disability, then such participant (or
personal representative of the estate of the deceased participant) may elect at
any time prior to the last five (5) Trading Days of a Purchase Period in which
such termination occurs, to (i) have all of such participant’s payroll
deductions for such Purchase Period refunded to the Participant
or  (ii) have all such payroll deductions used to purchase the
Company’s common stock on the Exercise Date following such
termination.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    12. Interest.  No
interest shall accrue on the payroll deductions of a participant in the
Plan.

     

    13. Stock.

     

    (a) Subject
to adjustment upon changes in capitalization of the Company as provided in
Section 19 hereof, the number of shares of the Company's Common Stock which
shall be made available for sale under the Plan shall be 3,275,000 shares, plus
up to 150,000 remaining unissued shares available as of the Effective Date under
the Company’s previous ESPP, and plus beginning January 1, 2005, and each
January 1 thereafter during the term of the Plan, an automatic annual increase
in shares reserved of the lesser of (i) 1,500,000 shares, (ii) one half of one
percent (0.5%) of the then outstanding shares of our common stock, or (iii) such
lesser amount as is approved by our Board of Directors2; provided, however, that the shares under the
Company’s previous ESPP shall not be available for issuance under the Plan to
the extent that such reservation would, in the opinion of the Company’s
independent auditors, result in a compensation expense to the Company under
either EITF 97-12 or FIN 44. 3

     

    (b) Until the
shares are issued (as evidenced by the appropriate entry on the books of the
Company or of a duly authorized transfer agent of the Company), a participant
shall only have the rights of an unsecured creditor with respect to such shares,
and no right to vote or receive dividends or any other rights as a stockholder
shall exist with respect to such shares.

     

    (c) Shares to
be delivered to a participant under the Plan shall be held in a brokerage
account in street name.

     

    14. Administration.  The
Administrator shall administer the Plan and shall have full and exclusive
discretionary authority to construe, interpret and apply the terms of the Plan,
to determine eligibility and to adjudicate all disputed claims filed under the
Plan.  Every finding, decision and determination made by the
Administrator shall, to the full extent permitted by law, be final and binding
upon all parties.

     

    15. Designation of
Beneficiary.

     

    (a) A
participant may file a written designation of a beneficiary who is to receive
any payroll deductions, if any, from the participant's account under the Plan in
the event of such participant's death subsequent to an Exercise Date on which
the option is exercised but prior to delivery to such participant of such
payroll deductions.  In addition, a participant may file a written
designation of a beneficiary who is to receive any payroll deductions from the
participant's account under the Plan in the event of such participant's death
prior to exercise of the option.  If a participant is married and the
designated beneficiary is not the spouse, spousal consent shall be required for
such designation to be effective.

     

    
      
2 Approved
by shareholders August 15, 2003.

    
      3 All
numbers in this Section 13(a) have been adjusted to reflect a May 2002 3-for-2
stock split, the additional 500,000 shares approved by the stockholders on
August 16, 2002 and the additional 975,000 shares approved by the stockholders
on August 15, 2003.

       

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    (b) Such
designation of beneficiary may be changed by the participant at any time by
written notice.  In the event of the death of a participant and in the
absence of a beneficiary validly designated under the Plan who is living at the
time of such participant's death, the Company shall deliver such payroll
deductions to the executor or administrator of the estate of the participant, or
if no such executor or administrator has been appointed (to the knowledge of the
Company), the Company, in its discretion, may deliver such payroll deductions to
the spouse or to any one or more dependents or relatives of the participant, or
if no spouse, dependent or relative is known to the Company, then to such other
person as the Company may designate.

     

    (c) All
beneficiary designations shall be in such form and manner as the Administrator
may designate from time to time.

     

    16. Transferability.  Neither
payroll deductions credited to a participant's account nor any rights with
regard to the exercise of an option or to receive shares under the Plan may be
assigned, transferred, pledged or otherwise disposed of in any way (other than
by will, the laws of descent and distribution or as provided in Section 15
hereof) by the participant.  Any such attempt at assignment, transfer,
pledge or other disposition shall be without effect, except that the Company may
treat such act as an election to withdraw funds from an Offering Period in
accordance with Section 10 hereof.

     

    17. Use of
Funds.  All payroll deductions received or held by the Company
under the Plan may be used by the Company for any corporate purpose, and the
Company shall not be obligated to segregate such payroll
deductions.  Until shares are issued, participants shall only have the
rights of an unsecured creditor.

     

    18. Reports.  Individual
accounts shall be maintained for each participant in the
Plan.  Statements of account shall be given to participating Eligible
Employees at least annually, which statements shall set forth the amounts of
payroll deductions, the Purchase Price, the number of shares purchased and the
remaining cash balance, if any.

     

    19. Adjustments Upon Changes in
Capitalization, Dissolution, Liquidation, Merger or Change of
Control.

     

    (a) Changes in
Capitalization.  Subject to any required action by the
shareholders of the Company, the maximum number of shares of the Company’s
Common Stock which shall be made available for sale under the Plan, the maximum
number of shares each participant may purchase each Purchase Period (pursuant to
Section 7), as well as the price per share and the number of shares of Common
Stock covered by each option under the Plan which has not yet been exercised
shall be proportionately adjusted for any increase or decrease in the number of
issued shares of Common Stock resulting from a stock split, reverse stock split,
stock dividend, combination or reclassification of the Common Stock, or any
other change in the number of shares of Common Stock effected without receipt of
consideration by the Company; provided, however, that conversion of any
convertible securities of the Company shall not be deemed to have been “effected
without receipt of consideration.”  Such adjustment shall be made by
the Administrator, whose determination in that respect shall be final, binding
and conclusive.  Except as expressly provided herein, no issuance by
the Company of shares of stock of any class, or securities convertible into
shares of stock of any class, shall affect, and no adjustment by reason thereof
shall be made with respect to, the number or price of shares of Common Stock
subject to an option.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    (b) Change in
Control.  In the event of a Change of Control, each outstanding
option shall be assumed or an equivalent option substituted by the successor
corporation or a Parent or Subsidiary of the successor
corporation.  In the event that the successor corporation refuses to
assume or substitute for the option, any Purchase Periods then in progress shall
be shortened by setting a New Exercise Date and any Offering Periods then in
progress shall end on the New Exercise Date.  The New Exercise Date
shall be before the date of the Company's proposed Change of
Control.  The Administrator shall notify each participant in writing,
at least 10 business days prior to the New Exercise Date, that the Exercise Date
for the participant's option has been changed to the New Exercise Date and that
the participant's option shall be exercised automatically on the New Exercise
Date, unless prior to such date the participant has withdrawn from the Offering
Period as provided in Section 10 hereof.

     

    20. Amendment or
Termination.

     

    (a) The
Administrator may at any time and for any reason terminate or amend the
Plan.  Except as otherwise provided in the Plan, no such termination
can affect options previously granted, provided that an Offering Period may be
terminated by the Administrator on any Exercise Date if the Administrator
determines that the termination of the Offering Period or the Plan is in the
best interests of the Company and its shareholders.  Except as
provided in Section 19 and this Section 20 hereof, no amendment may make any
change in any option theretofore granted which adversely affects the rights of
any participant.  To the extent necessary to comply with Section 423
of the Code (or any successor rule or provision or any other applicable law,
regulation or stock exchange rule), the Company shall obtain shareholder
approval in such a manner and to such a degree as required.

     

    (b) Without
shareholder consent and without regard to whether any participant rights may be
considered to have been “adversely affected,” the Administrator shall be
entitled to change the Offering Periods, limit the frequency and/or number of
changes in the amount withheld during an Offering Period, establish the exchange
ratio applicable to amounts withheld in a currency other than U.S. dollars,
permit payroll withholding in excess of the amount designated by a participant
in order to adjust for delays or mistakes in the Company's processing of
properly completed withholding elections, establish reasonable waiting and
adjustment periods and/or accounting and crediting procedures to ensure that
amounts applied toward the purchase of Common Stock for each participant
properly correspond with amounts withheld from the participant's Compensation,
and establish such other limitations or procedures as the Administrator
determines in its sole discretion advisable which are consistent with the
Plan.

     

    (c) In the
event the Administrator determines that the ongoing operation of the Plan may
result in unfavorable financial accounting consequences, the Board may, in its
discretion and, to the extent necessary or desirable, modify or amend the Plan
to reduce or eliminate such accounting consequence including, but not limited
to:

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    (i) increasing
the Purchase Price for any Offering Period including an Offering Period underway
at the time of the change in Purchase Price;

     

    (ii) shortening
any Offering Period so that Offering Period ends on a new Exercise Date,
including an Offering Period underway at the time of the Board action;
and

     

    (iii) allocating
shares.

     

    Such
modifications or amendments shall not require stockholder approval or the
consent of any Plan participants.

     

    21. Notices.  All
notices or other communications by a participant to the Company under or in
connection with the Plan shall be deemed to have been duly given when received
in the form and manner specified by the Company at the location, or by the
person, designated by the Company for the receipt thereof.

     

    22. Conditions Upon Issuance of
Shares.  Shares shall not be issued with respect to an option
unless the exercise of such option and the issuance and delivery of such shares
pursuant thereto shall comply with all applicable provisions of law, domestic or
foreign, including, without limitation, the Securities Act of 1933, as amended,
the Securities Exchange Act of 1934, as amended, the rules and regulations
promulgated thereunder, and the requirements of any stock exchange upon which
the shares may then be listed, and shall be further subject to the approval of
counsel for the Company with respect to such compliance.

     

    As a
condition to the exercise of an option, the Company may require the person
exercising such option to represent and warrant at the time of any such exercise
that the shares are being purchased only for investment and without any present
intention to sell or distribute such shares if, in the opinion of counsel for
the Company, such a representation is required by any of the aforementioned
applicable provisions of law.

     

    23. Term of
Plan.  The Plan shall become effective upon the earlier to
occur of its adoption by the Board of Directors or its approval by the
shareholders of the Company.  It shall continue in effect until
terminated under Section 20 hereof.

     

    24. Automatic Transfer to Low
Price Offering Period.  To the extent permitted by any
applicable laws, regulations, or stock exchange rules if the Fair Market Value
of the Common Stock on any Exercise Date in an Offering Period is lower than the
Fair Market Value of the Common Stock on the Entry Date of such Offering Period,
then all participants in such Offering Period shall be automatically withdrawn
from such Offering Period immediately after the exercise of their option on such
Exercise Date and automatically re-enrolled in the immediately following
Offering Period.

    
 

    

      
        
           

        

        
          10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}]]