Document:

EXHIBIT 10.3

                               GENERAL MILLS, INC.

                            1998 EMPLOYEE STOCK PLAN

                         As Amended Through May 17, 2002

<PAGE>

                               GENERAL MILLS, INC.

                            1998 EMPLOYEE STOCK PLAN

1.       PURPOSE OF THE PLAN

         The purpose of the General Mills, Inc. 1998 Employee Stock Plan (the
         "Plan") is to attract and retain able employees by rewarding employees
         of General Mills, Inc., its subsidiaries and affiliates (defined as
         entities in which General Mills, Inc. has a significant equity or other
         interest) (collectively, the "Company") and to align the interests of
         employees with those of the stockholders of the Company through
         compensation that is based on the Company's stock. Grants may be made
         to employees under the Plan in lieu of salary increases and certain
         other compensation and benefits.

2.       EFFECTIVE DATE AND DURATION OF PLAN

         This Plan shall become effective as of September 28, 1998.

3.       ELIGIBLE PERSONS

         Only persons who are employees of the Company shall be eligible to
         receive grants of Stock Options, Restricted Stock or Restricted Stock
         Units (each defined below) and become "Participants" under the Plan.

4.       AWARD TYPE

         Under this Plan, the Compensation Committee of the Company's Board of
         Directors (the "Committee") may award Participants options ("Stock
         Options") to purchase common stock of the Company ($.10 par value)
         ("Common Stock"). The grant of a Stock Option entitles the Participant
         to purchase shares of Common Stock at an "Exercise Price" established
         by the Committee. The Exercise Price for each share of Common Stock
         issuable under a Stock Option shall not be less than 100% of the Fair
         Market Value of the Common Stock on the date of grant. "Fair Market
         Value" shall equal the mean of the high and low price of the Common
         Stock on the New York Stock Exchange on the date of grant. The
         Committee may also grant Participants shares of Common Stock or the
         right to receive shares of Common Stock subject to certain restrictions
         ("Restricted Stock" or "Restricted Stock Units") (Stock Options,
         Restricted Stock and Restricted Stock Units are sometimes referred to
         as "Awards").

5.       STOCK OPTION TERM AND TYPE

         Stock Options granted under the Plan shall be Non-Qualified Stock
         Options governed by Section 83 of the Internal Revenue Code of 1986, as
         amended (the "Code"). The term of any Stock Option granted under the
         Plan shall be determined by the Committee, provided that the term of a
         Stock Option shall not exceed 10 years and one month.

                                       1
<PAGE>

6.       COMMON STOCK SUBJECT TO THE PLAN

         a)       Maximum Shares Available for Delivery. Subject to Section
                  6(b), the maximum number of shares of Common Stock available
                  for issuance to Participants under the Plan shall be
                  28,000,000.

                  In addition, any Common Stock covered by a Stock Option
                  granted under the Plan, which is forfeited, cancelled or
                  expires in whole or in part shall be deemed not to be
                  delivered for purposes of determining the maximum number of
                  shares of Common Stock available for grants under the Plan.

                  If any Stock Option is exercised by tendering Common Stock,
                  either actually or by attestation, to the Company as full or
                  partial payment in connection with the exercise of the Stock
                  Option under the Plan, only the number of shares of Common
                  Stock issued net of the Common Stock tendered shall be deemed
                  delivered for purposes of determining the maximum number of
                  shares available for grants under the Plan. Upon forfeiture or
                  termination of Restricted Stock or Restricted Stock Units
                  prior to vesting, the shares of Common Stock subject thereto
                  shall again be available for Awards under the Plan.

         b)       Adjustments for Corporate Transactions. The Committee may
                  determine that a corporate transaction has occurred affecting
                  the Common Stock such that an adjustment or adjustments to
                  outstanding Awards is required to preserve (or prevent
                  enlargement of) the benefits or potential benefits intended at
                  the time of grant. For this purpose a corporate transaction
                  includes, but is not limited to, any dividend or other
                  distribution (whether in the form of cash, Common Stock,
                  securities of a subsidiary of the Company, other securities or
                  other property), recapitalization, stock split, reverse stock
                  split, reorganization, merger, consolidation, split-up,
                  spin-off, combination, repurchase or exchange of Common Stock
                  or other securities of the Company, issuance of warrants or
                  other rights to purchase Common Stock or other securities of
                  the Company, or other similar corporate transaction. In the
                  event of such a corporate transaction, the Committee may, in
                  such manner as the Committee deems equitable, adjust (i) the
                  number and kind of shares which may be awarded under the Plan;
                  (ii) the number and kind of shares subject to outstanding
                  Awards; and (iii) the exercise price of outstanding Stock
                  Options.

         c)       Limits on Distribution. Distribution of shares of Common Stock
                  or other amounts under the Plan shall be subject to the
                  following:

                  (i)    The total number of shares of Common Stock that shall
                         be available for Restricted Stock and Restricted Stock
                         Unit Awards under the Plan shall be limited to 15% of
                         the total shares authorized for Awards hereunder.

                  (ii)   Notwithstanding any other provision of the Plan, the
                         Company shall have no liability to deliver any shares
                         of Common Stock under the Plan or make any other
                         distribution of benefits under the Plan unless such
                         delivery or distribution would comply with all
                         applicable laws (including, without limitation, the
                         requirements of the Securities Act of

                                        2
<PAGE>

                         1933), and the applicable requirements of any
                         securities exchange or similar entity.

                  (iii)  To the extent that the Plan provides for issuance of
                         stock certificates to reflect the issuance of shares of
                         Common Stock or Restricted Stock, the issuance may be
                         effected on a non-certificated basis, to the extent not
                         prohibited by applicable law or the applicable rules of
                         any stock exchange.

         d)       The Committee, in its discretion, may require as a condition
                  to the grant of Awards, the deposit of Common Stock owned by
                  the Participant receiving such grant, and the forfeiture of
                  such grants, if such deposit is not made or maintained during
                  the required holding period. Such shares of deposited Common
                  Stock may not be otherwise sold or disposed of during the
                  applicable holding period or restricted period. The Committee
                  may also determine whether any shares issued upon exercise of
                  a Stock Option shall be restricted in any manner.

7.       EXERCISE OF STOCK OPTIONS

         a)       Exercise. Except as provided in Sections 11 and 12 (Change of
                  Control and Termination of Employment), each Stock Option may
                  be exercised only in accordance with the terms and conditions
                  of the Stock Option grant and during the periods as may be
                  established by the Committee. Twenty percent of each Stock
                  Option granted under the Plan in lieu of salary increases and
                  certain other compensation and benefits may be exercised
                  immediately upon granting and, subject to the Participant's
                  continued employment with the Company, additional 20% portions
                  of such Stock Option shall become exercisable each year
                  thereafter. All other Stock Options granted hereunder may be
                  exercised only after three years of the Participant's
                  continued employment with the Company following the date of
                  the Stock Option grant.

                  A Participant exercising a Stock Option shall give notice to
                  the Company of such exercise and of the number of shares
                  elected to be purchased prior to 4:30 P.M. CST/CDT on the day
                  of exercise, which must be a business day at the executive
                  offices of the Company.

         b)       Payment. The Exercise Price shall be paid to the Company at
                  the time of such exercise, subject to any applicable rule or
                  regulation adopted by the Committee:

                  (i)      in cash (including check, draft, money order or wire
                           transfer made payable to the order of the Company);

                  (ii)     through the tender of shares of Common Stock owned by
                           the Participant (by either actual delivery or
                           attestation); or

                  (iii)    by a combination of (i) and (ii) above.

                  For determining the amount of the payment, Common Stock
                  delivered pursuant to (ii) or (iii) shall have a value equal
                  to the Fair Market Value of the Common Stock on the date of
                  exercise.

                                        3
<PAGE>

         c)       Deferrals. The Committee may permit or require Participants to
                  defer receipt of any Common Stock issuable upon exercise of a
                  Stock Option, subject to such rules and procedures as it may
                  establish, which may include provisions for the payment or
                  crediting of interest, or dividend equivalents, including
                  converting such credits into deferred Common Stock
                  equivalents.

8.       RESTRICTED STOCK AND RESTRICTED STOCK UNITS

         With respect to Awards of Restricted Stock and Restricted Stock Units,
         the Committee shall:

         a)       select Participants to whom Awards will be made, provided that
                  Restricted Stock Units may only be awarded to those employees
                  of the Company who are employed in a country other than the
                  United States;

         b)       determine the number of shares of Restricted Stock or the
                  number of Restricted Stock Units to be awarded;

         c)       determine the length of the restricted period, which shall be
                  no less than one year;

         d)       determine the purchase price, if any, to be paid by the
                  Participant for Restricted Stock or Restricted Stock Units;
                  and

         e)       determine any restrictions other than those set forth in this
                  Section 8.

         Subject to the restrictions set forth in this Section 8, each
         Participant who receives Restricted Stock shall have all rights as a
         stockholder with respect to such shares, including the right to vote
         the shares and receive dividends and other distributions.

         Each Participant who receives Restricted Stock Units shall be eligible
         to receive, at the expiration of the applicable restricted period, one
         share of Common Stock for each Restricted Stock Unit awarded, and the
         Company shall issue to each such Participant that number of shares of
         Common Stock. Participants who receive Restricted Stock Units shall
         have no rights as stockholders with respect to such Restricted Stock
         Units until such time as share certificates for Common Stock are issued
         to the Participants; provided, however, that quarterly during the
         applicable restricted period for all Restricted Stock Units awarded
         hereunder, the Company shall pay to each such Participant an amount
         equal to the sum of all dividends and other distributions paid by the
         Company during the prior quarter on that equivalent number of shares of
         Common Stock.

9.       TRANSFERABILITY OF STOCK OPTIONS

         Except as otherwise provided by rules of the Committee, no Stock
         Options shall be transferable by a Participant otherwise than (i) by
         the Participant's last will and testament or (ii) by the applicable
         laws of descent and distribution, and such Stock Options shall be
         exercised during the Participant's lifetime only by the Participant or
         his or her guardian or legal representative. Except as otherwise
         provided in Section 8, no shares of

                                        4
<PAGE>

         Restricted Stock and no Restricted Stock Units shall be sold,
         exchanged, transferred, pledged or otherwise disposed of during the
         restricted period.

10.      TAXES

         Whenever the Company issues Common Stock under the Plan, the Company
         may require the recipient to remit to the Company an amount sufficient
         to satisfy any Federal, state or local tax withholding requirements
         prior to the delivery of such Common Stock, or, in the discretion of
         the Committee, upon the election of the Participant, the Company may
         withhold from the shares to be delivered shares sufficient to satisfy
         all or a portion of such tax withholding requirements.

11.      CHANGE OF CONTROL

         Each outstanding Stock Option shall become immediately and fully
         exercisable for a period of one (1) year following the date of the
         following occurrences, each constituting a "Change of Control":

         a)       The acquisition by any individual, entity or group (within the
                  meaning of Section 13(d)(3) or 14(d)(2) of the 1934 Act), (a
                  "Person") of beneficial ownership (within the meaning of Rule
                  13d-3 promulgated under the 1934 Act) of voting securities of
                  the Company where such acquisition causes such Person to own
                  20% or more of the combined voting power of the then
                  outstanding voting securities of the Company entitled to vote
                  generally in the election of directors (the "Outstanding
                  Voting Securities"); provided, however, that for purposes of
                  this subsection (a), the following acquisitions shall not be
                  deemed to result in a Change of Control: (i) any acquisition
                  directly from the Company, (ii) any acquisition by the
                  Company, (iii) any acquisition by any employee benefit plan
                  (or related trust) sponsored or maintained by the Company or
                  any corporation controlled by the Company or (iv) any
                  acquisition by any corporation pursuant to a transaction that
                  complies with clauses (i), (ii) and (iii) of subsection (c)
                  below; and provided, further, that if any Person's beneficial
                  ownership of the Outstanding Voting Securities reaches or
                  exceeds 20% as a result of a transaction described in clause
                  (i) or (ii) above, and such Person subsequently acquires
                  beneficial ownership of additional voting securities of the
                  Company, such subsequent acquisition shall be treated as an
                  acquisition that causes such Person to own 20% or more of the
                  Outstanding Voting Securities; or

         b)       Individuals who, as of the date hereof, constitute the Board
                  of Directors (the "Incumbent Board") cease for any reason to
                  constitute at least a majority of the Board; provided,
                  however, that any individual becoming a director subsequent to
                  the date hereof whose election, or nomination for election by
                  the Company's shareholders, was approved by a vote of at least
                  of a majority of the directors then comprising the Incumbent
                  Board shall be considered as though such individual were a
                  member of the Incumbent Board, but excluding, for this
                  purpose, any such individual whose initial assumption of
                  office occurs as a result of an actual or threatened election
                  contest with respect to the election or removal of directors
                  or other actual or threatened solicitation of proxies or
                  consents by or on behalf of a Person other than the Board; or

                                        5
<PAGE>

         c)       The approval by the shareholders of the Company of a
                  reorganization, merger or consolidation or sale or other
                  disposition of all or substantially all of the assets of the
                  Company ("Business Combination") or, if consummation of such
                  Business Combination is subject, at the time of such approval
                  by stockholders, to the consent of any government or
                  governmental agency, the obtaining of such consent (either
                  explicitly or implicitly by consummation); excluding, however,
                  such a Business Combination pursuant to which (i) all or
                  substantially all of the individuals and entities who were the
                  beneficial owners of the Outstanding Voting Securities
                  immediately prior to such Business Combination beneficially
                  own, directly or indirectly, more than 60% of, respectively,
                  the then outstanding shares of common stock and the combined
                  voting power of the then outstanding voting securities
                  entitled to vote generally in the election of directors, as
                  the case may be, of the corporation resulting from such
                  Business Combination (including, without limitation, a
                  corporation that as a result of such transaction owns the
                  Company or all or substantially all of the Company's assets
                  either directly or through one or more subsidiaries) in
                  substantially the same proportions as their ownership,
                  immediately prior to such Business Combination of the
                  Outstanding Voting Securities, (ii) no Person (excluding any
                  employee benefit plan (or related trust) of the Company or
                  such corporation resulting from such Business Combination)
                  beneficially owns, directly or indirectly, 20% or more of,
                  respectively, the then outstanding shares of common stock of
                  the corporation resulting from such Business Combination or
                  the combined voting power of the then outstanding voting
                  securities of such corporation except to the extent that such
                  ownership existed prior to the Business Combination and (iii)
                  at least a majority of the members of the board of directors
                  of the corporation resulting from such Business Combination
                  were members of the Incumbent Board at the time of the
                  execution of the initial agreement, or of the action of the
                  Board, providing for such Business Combination; or

         d)       approval by the stockholders of the Company of a complete
                  liquidation or dissolution of the Company.

         After such one (1) year period the normal Stock Option exercise
         provisions of the Plan shall govern. Notwithstanding any other
         provision of the Plan, but subject to Section 5, in the event a
         Participant's employment with the Company is terminated within two (2)
         years of any of the events specified in (a), (b), (c) or (d), all
         outstanding Stock Options of such Participant at that date of
         termination shall be exercisable for a period of six (6) months
         beginning on the date of termination.

         With respect to Stock Option grants outstanding as of the date of any
         such Change of Control which require the deposit of owned Common Stock
         as a condition to obtaining rights, the deposit requirement shall be
         terminated as of the date of the Change of Control and any such
         deposited stock shall be promptly returned to the Participant.

         In the event of a Change of Control, a Participant shall vest in all
         shares of Restricted Stock and Restricted Stock Units, effective as of
         the date of such Change of Control, and any deposited shares of Common
         Stock shall be promptly returned to the Participant.

                                        6
<PAGE>

12.      TERMINATION OF EMPLOYMENT

         a)       Resignation or Termination for Cause. If the Participant's
                  employment by the Company is terminated by either

                  (i)      the voluntary resignation of the Participant, or

                  (ii)     a Company discharge due to Participant's illegal
                           activities, poor work performance, misconduct or
                           violation of the Company's policies or practices,

                  then Participant's Stock Options shall terminate three months
                  after such termination (but in no event beyond the original
                  full term of the Stock Options) and no Stock Options shall
                  become exercisable after such termination, and all shares of
                  Restricted Stock and Restricted Stock Units which are subject
                  to restriction on the date of termination shall be forfeited.

         b)       Other Termination. If the Participant's employment by the
                  Company terminates for any reason other than specified in
                  Sections 11, 12 (a), (c), (d) or (e), the following rules
                  shall apply:

                  (i)      In the event that, at the time of such termination,
                           the sum of the Participant's age and service with the
                           Company equals or exceeds 70, the Participant's
                           outstanding Stock Options shall continue to become
                           exercisable, and shares of Restricted Stock and
                           Restricted Stock Units subject to share deposit
                           requirements shall continue to vest, each according
                           to the schedule established at the time of grant,
                           unless otherwise provided in the applicable Award
                           agreement. Shares of Restricted Stock and Restricted
                           Stock Units not subject to share deposit requirements
                           shall fully vest as of the date of termination. Stock
                           Options shall remain exercisable for the remaining
                           full term of such Stock Options.

                  (ii)     In the event that, at the time of such termination,
                           the sum of Participant's age and service with the
                           Company is less than 70, Participant's outstanding
                           unexercisable Stock Options and unvested Restricted
                           Stock and Restricted Stock Units shall become
                           exercisable or vest, as the case may be, as of the
                           date of termination, in a pro-rata amount based on
                           the full months of employment completed during the
                           full vesting period from the date of grant to the
                           date of termination with such newly-vested Stock
                           Options and Stock Options exercisable on the date of
                           termination remaining exercisable for the lesser of
                           one year from the date of termination and the
                           original full term of the Stock Option. All other
                           Stock Options, shares of Restricted Stock and
                           Restricted Stock Units shall be forfeited as of the
                           date of termination. Provided, however,

                                        7
<PAGE>

                           that if the Participant is an executive officer of
                           the Company, the Participant's outstanding Stock
                           Options which, as of the date of termination are not
                           yet exercisable, shall become exercisable effective
                           as of the date of such termination and, with all
                           outstanding Stock Options already exercisable on the
                           date of termination, shall remain exercisable for the
                           lesser of one year following the date of termination
                           and the original full term of the Stock Option, and
                           all shares of Restricted Stock and Restricted Stock
                           Units shall vest as of the date of termination.

         c)       Death. If a Participant dies while employed by the Company,
                  any Stock Option previously granted under this Plan may be
                  exercised by the person designated in such Participant's last
                  will and testament or, in the absence of such designation, by
                  the Participant's estate, to the full extent that such Stock
                  Option could have been exercised by such Participant
                  immediately prior to death. Any outstanding Stock Options
                  granted on or after June 1, 2002, which, as of the date of
                  death, are not yet exercisable, shall fully vest and become
                  exercisable upon death. Outstanding Stock Options granted
                  prior to June 1, 2002, which, as of the date of death, are not
                  yet exercisable, shall fully vest and become exercisable in a
                  pro-rata amount, based on the full months of employment
                  completed during the full vesting period of the Stock Option
                  from the date of grant to the date of death.

                  With respect to Stock Options which require the deposit of
                  owned Common Stock as a condition to obtaining exercise
                  rights, in the event a Participant dies while employed by the
                  Company, such Stock Options may be exercised as provided in
                  the first paragraph of this Section 12(c) and any owned Common
                  Stock deposited by the Participant pursuant to such grant
                  shall be promptly returned to the person designated in such
                  Participant's last will and testament or, in the absence of
                  such designation, to the Participant's estate, and all
                  requirements regarding deposit by the Participant shall be
                  terminated.

                  A Participant who dies during any applicable restricted
                  period, for Restricted Stock or Restricted Stock Units granted
                  on or after June 1, 2002, shall fully vest in such shares of
                  Restricted Stock or Restricted Stock Units, effective as the
                  date of death. A Participant who dies during any applicable
                  restricted period, for any Restricted Stock or Restricted
                  Stock Units granted prior to June 1, 2002, shall vest in a
                  proportionate number of such shares of Restricted Stock or
                  Restricted Stock Units, effective as of the date of death.
                  Such proportionate vesting shall be pro-rata, based on the
                  number of full months of employment completed during the
                  restricted period prior to the date of death, as a percentage
                  of the applicable restricted period.

         d)       Retirement. The Committee shall determine, at the time of
                  grant, the treatment of the Stock Options, Restricted Stock
                  and Restricted Stock Units upon the retirement of the
                  Participant. Unless other terms are specified in the original
                  Grant, if the termination of employment is due to a
                  Participant's retirement on or after age 55, the Participant
                  may exercise a Stock Option, subject to the original terms and
                  conditions of the Stock Option and shall fully vest in all
                  shares of Restricted Stock or Restricted Stock Units effective
                  as of the date of retirement (unless any such Award
                  specifically provides otherwise).

                                        8
<PAGE>

         e)       Spin-offs. If the termination of employment is due to the
                  cessation, transfer, or spin-off of a complete line of
                  business of the Company, the Committee, in its sole
                  discretion, shall determine the treatment of all outstanding
                  Awards under the Plan.

13.      ADMINISTRATION OF THE PLAN

         a)       Administration. The authority to control and manage the
                  operations and administration of the Plan shall be vested in
                  Committee in accordance with this Section 13.

         b)       Selection of Committee. The Committee shall be selected by the
                  Board, and shall consist of two or more members of the Board.

         c)       Powers of Committee. The authority to manage and control the
                  operations and administration of the Plan shall be vested in
                  the Committee, subject to the following:

                  (i)      Subject to the provisions of the Plan, the Committee
                           will have the authority and discretion to select from
                           among the eligible Company employees those persons
                           who shall receive Awards, to determine the time or
                           times of receipt, to determine the types of Awards
                           and the number of shares covered by the Awards, to
                           establish the terms, conditions, performance
                           criteria, restrictions, and other provisions of such
                           Awards, and (subject to the restrictions imposed by
                           Section 14) to cancel or suspend Awards. In making
                           such determinations, the Committee may take into
                           account the nature of services rendered by the
                           individual, the individual's present and potential
                           contribution to the Company's success and such other
                           factors as the Committee deems relevant.

                  (ii)     The Committee will have the authority and discretion
                           to establish terms and conditions of Awards as the
                           Committee determines to be necessary or appropriate
                           to conform to applicable requirements or practices of
                           jurisdictions outside of the United States.

                  (iii)    The Committee will have the authority and discretion
                           to interpret the Plan, to establish, amend, and
                           rescind any rules and regulations relating to the
                           Plan, to determine the terms and provisions of any
                           agreements made pursuant to the Plan, and to make all
                           other determinations that may be necessary or
                           advisable for the administration of the Plan.

                  (iv)     Any interpretation of the Plan by the Committee and
                           any decision made by it under the Plan is final and
                           binding.

         d)       Delegation by Committee. Except to the extent prohibited by
                  applicable law or the applicable rules of a stock exchange,
                  the Committee may allocate all or any portion of its
                  responsibilities and powers to any one or more of its members
                  and may delegate all or any part of its responsibilities and
                  powers to any person or persons selected by it. Any such
                  allocation or delegation may be revoked by the Committee at
                  any time.

                                        9
<PAGE>

14.      AMENDMENTS OF THE PLAN

         The Committee may from time to time prescribe, amend and rescind rules
         and regulations relating to the Plan. Subject to the approval of the
         Board of Directors, where required, the Committee may at any time
         terminate, amend, or suspend the operation of the Plan, provided that
         no action shall be taken by the Committee to:

         a)       permit granting of Stock Options at less than Fair Market
                  Value; and

         b)       except as provided in Section 6, permit the repricing of
                  outstanding Stock Options.

         No termination, modification, suspension, or amendment of the Plan
         shall alter or impair the rights of any Participant pursuant to an
         outstanding Award without the consent of the Participant. There is no
         obligation for uniformity of treatment of Participants under the Plan.

15.      FOREIGN JURISDICTIONS

         The Committee may adopt, amend, and terminate such arrangements, not
         inconsistent with the intent of the Plan, as it may deem necessary or
         desirable to make available tax or other benefits of the laws of any
         foreign jurisdiction, to employees of the Company who are subject to
         such laws and who receive Awards under the Plan.

16.      NOTICES

         All notices to the Company regarding the Plan shall be in writing,
         effective as of actual receipt by the Company, and shall be sent to:

                  General Mills, Inc.
                  Number One General Mills Boulevard
                  Minneapolis, Minnesota  55426
                  Attention:  Corporate Compensation

Effective September 28, 1998
As Amended December 13, 1999
As Amended July 1, 2000
As Amended December 17, 2001
As Amended May 17, 2002

                                       10EXHIBIT 10.14

                             ST. JUDE MEDICAL, INC.
                                2002 STOCK PLAN,
                                   AS AMENDED

         SECTION 1. General Purpose of Plan; Definitions.

         The name of this plan is the St. Jude Medical, Inc. 2002 Stock Plan
(the "Plan"). The purpose of the Plan is to enable the Company and its
Subsidiaries to retain and attract executives and other key employees,
non-employee directors and consultants who contribute to the Company's success
by their ability, ingenuity and industry, and to enable such individuals to
participate in the long-term success and growth of the Company by giving them a
proprietary interest in the Company.

         For purposes of the Plan, the following terms shall be defined as set
forth below:

         a. "Board" means the Board of Directors of the Company as it may be
comprised from time to time.

         b. "Cause" means a felony conviction of a participant or the failure of
a participant to contest prosecution for a felony, willful misconduct,
dishonesty or intentional violation of a statute, rule or regulation, any of
which, in the judgment of the Company, is harmful to the business or reputation
of the Company.

         c. "Code" means the Internal Revenue Code of 1986, as amended from time
to time, or any successor statute.

         d. "Committee" means a committee of Directors appointed by the Board to
administer the Plan. The Committee shall be comprised of not less than such
number of Directors as shall be required to permit Stock Options granted under
the Plan to qualify under Section 162(m) and Rule 16b-3, and each member of the
Committee shall be a Non-Employee Director and an Outside Director, who shall
serve at the pleasure of the Board. If at any time no Committee shall be in
office, then the functions of the Committee specified in the Plan shall be
exercised by the Board, unless the Plan specifically states otherwise.

         e. "Company" means St. Jude Medical, Inc., a corporation organized
under the laws of the State of Minnesota (or any successor corporation).

         f. "Consultant" means any person, including an advisor, engaged by the
Company, the Parent Corporation or a Subsidiary of the Company to render
services and who is compensated for such services and who is not an employee of
the Company, the Parent Corporation or any Subsidiary of the Company. A
Non-Employee Director may serve as a Consultant.

         g. "Continuous Status as an Employee or Consultant" shall mean the
absence of any interruption or termination of service as an Employee or
Consultant. Continuous Status as an Employee or Consultant shall not be
considered interrupted in the case that an Employee becomes a Consultant or a
Consultant becomes an Employee, in either case without other interruption or
termination of service, or in the case of sick leave, military leave, or any
other

                                      -1-
                                                                     Amendment A
<PAGE>

leave of absence approved by the Administrator, provided that such leave of
absence is for a period of 90 days or less, unless reemployment after such leave
of absence is guaranteed by contract or statute.

         h. "Director" shall mean a member of the Board.

         i. "Disability" means permanent and total disability as determined by
the Committee.

         j. "Early Retirement" means retirement, with consent of the Committee
at the time of retirement, from active employment with the Company and any
Subsidiary or Parent Corporation of the Company.

         k. "Fair Market Value" of Stock on any given date shall be determined
by the Committee as follows: (i) if the Stock is listed for trading, on the New
York Stock Exchange or one of more other national securities exchanges, the last
reported sales price on the New York Stock Exchange or such principal exchange
on the date in question, or if such Stock shall not have been traded on such
principal exchange on such date, the last reported sales price on the New York
Stock Exchange or such principal exchange on the first day prior thereto on
which such Stock was so traded; or (ii) if (i) is not applicable, by any means
deemed fair and reasonable by the Committee, which determination shall be final
and binding on all parties.

         l. "Incentive Stock Option" means any Stock Option intended to be and
designated as an "Incentive Stock Option" within the meaning of Section 422 of
the Code.

         m. "Non-Employee Director" means a "Non-Employee Director" within the
meaning of Rule 16b-3.

         n. "Non-Qualified Stock Option" means any Stock Option that is not an
Incentive Stock Option, and is intended to be and is designated as a
"Non-Qualified Stock Option" or an Incentive Stock Option that ceases to so
qualify due to an amendment to such Stock Option.

         o. "Normal Retirement" means retirement from active employment with the
Company and any Subsidiary or Parent Corporation of the Company on or after age
65.

         p. "Outside Director" means a Director who: (a) is not a current
employee of the Company or any member of an affiliated group which includes the
Company; (b) is not a former employee of the Company who receives compensation
for prior services (other than benefits under a tax-qualified retirement plan)
during the taxable year; (c) has not been an officer of the Company; (d) does
not receive remuneration from the Company, either directly or indirectly, in any
capacity other than as a Director, except as otherwise permitted under Code
Section 162(m) and regulations thereunder. For this purpose, remuneration
includes any payment in exchange for goods or services. This definition shall be
further governed by the provisions of Code Section 162(m) and regulations
promulgated thereunder.

         q. "Parent Corporation" means any corporation (other than the Company)
in an unbroken chain of corporations ending with the Company if each of the
corporations (other than

                                      -2-
                                                                     Amendment A
<PAGE>

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 the chain.

         r. "Retirement" means Normal Retirement or Early Retirement.

         s. "Rule 16b-3" shall mean Rule 16b-3 promulgated by the Securities and
Exchange Commission under the Securities Exchange Act of 1934, as amended from
time to time, or any successor rule or regulation.

         t. "Stock" means the Common Stock of the Company.

         u. "Stock Option" means any option to purchase shares of Stock granted
pursuant to Section 5 below.

         v. "Subsidiary" means any corporation (other than the Company) in an
unbroken chain of corporations beginning with the Company if 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 the chain.

         SECTION 2. Administration.

         a. Power and Authority of the Committee. The Plan shall be administered
by the Committee. The Committee shall have the power and authority to grant to
eligible persons, pursuant to the terms of the Plan, Incentive Stock Options and
Non-Qualified Stock Options. In particular, the Committee shall have the
authority:

                  (i) to select the officers and other key employees of the
         Company and its Subsidiaries and other eligible persons to whom Stock
         Options may from time to time be granted hereunder;

                  (ii) to determine whether and to what extent Incentive Stock
         Options or Non-Qualified Stock Options, or a combination of each, are
         to be granted hereunder;

                  (iii) to determine the number of shares to be covered by each
         such award granted hereunder;

                  (iv) to determine the terms and conditions, not inconsistent
         with the terms of the Plan, of any award granted hereunder (including,
         but not limited to, any restriction on any Stock Option and/or the
         shares of Stock relating thereto); provided, however, that in the event
         of a merger or asset sale, the applicable provisions of Sections 5(c)
         of the Plan shall govern the acceleration of the vesting of any Stock
         Option;

                  (v) to determine whether, to what extent and under what
         circumstances Stock and other amounts payable with respect to an award
         under this Plan shall be deferred either automatically or at the
         election of the participant; and

                  (vi) to designate special terms and conditions under which
         Stock Options may be granted to eligible participants who work or
         reside outside of the United States on

                                      -3-
                                                                     Amendment A
<PAGE>

         behalf of the Company or any Subsidiary or Parent Corporation, which
         terms and conditions may vary by jurisdiction but may not change the
         maximum number of shares of Stock for which Stock Options may be
         granted pursuant to Section 3 or the eligibility rules in Section 4.

         The Committee shall have the authority to adopt, alter and repeal such
administrative rules, guidelines and practices governing the Plan as it shall,
from time to time, deem advisable; to interpret the terms and provisions of the
Plan and any award issued under the Plan (and any agreements relating thereto);
and otherwise to supervise the administration of the Plan. All decisions made by
the Committee pursuant to the provisions of the Plan shall be final and binding
on all persons, including the Company and Plan participants.

         The Company expects to have the Plan administered in accordance with
requirements for the award of "qualified performance-based compensation" within
the meaning of Section 162(m) of the Code.

         b. Delegation. The Committee may delegate to the president and/or chief
executive officer of the Company its powers and duties specified in clauses (i),
(ii), (iii), (iv), (v) and (vi) of Section 2(a), subject to such terms,
conditions and limitations as the Committee may establish in its sole
discretion; provided, however, that the Committee shall not delegate its powers
and duties under the Plan (i) with regard to officers or Directors of the
Company or any Parent Corporation or Subsidiary who are subject to Section 16 of
the Exchange Act or (ii) in such a manner as would cause the Plan not to comply
with the requirements of Section 162(m) of the Code.

         c. Power and Authority of the Board of Directors. Notwithstanding
anything to the contrary contained herein, the Board may, at any time and from
time to time, without any further action of the Committee, exercise the powers
and duties of the Committee under the Plan.

         SECTION 3. Stock Subject to Plan.

         The total number of shares of Stock reserved and available for
distribution under the Plan shall be 6,000,000. Such shares may consist, in
whole or in part, of authorized and unissued shares. If any shares of Stock that
have been optioned are not purchased or are forfeited, or if a Stock Option
otherwise terminates without delivery of any shares of Stock, then such shares
shall again be available for distribution in connection with future awards under
the Plan. Notwithstanding the foregoing, the number of shares of Stock available
for granting Incentive Stock Options under the Plan shall not exceed 6,000,000,
subject to adjustment as provided in the Plan and subject to the provisions of
Section 422 or 424 of the Code or any successor provision.

         In the event of any merger, reorganization, consolidation,
recapitalization, stock dividend, stock split, reverse stock split, other change
in corporate structure affecting the Stock, spin-off, split-up, or other
distribution of assets to shareholders, or other similar corporate transaction
or event affects the shares of Stock such that an adjustment is determined by
the Committee to be appropriate in order to prevent dilution or enlargement of
the benefits or potential benefits intended to be made available under the Plan,
then an appropriate adjustment

                                      -4-
                                                                     Amendment A
<PAGE>

automatically shall be made in the maximum numbers and kind of securities to be
purchased under the Plan with a corresponding adjustment in the purchase price
to be paid therefor; provided that the number of shares of Stock subject to any
award always shall be a whole number.

         SECTION 4. Eligibility.

         Officers, other key employees of the Company or any Parent Corporation
or Subsidiary, members of the Board, and Consultants who are responsible for or
contribute to the management, growth and profitability of the business of the
Company or any Parent Corporation or Subsidiary are eligible to be granted Stock
Options under the Plan. The participants under the Plan shall be selected from
time to time by the Committee, in its sole discretion, from among those
eligible, and the Committee shall determine, in its sole discretion, the number
of shares of Stock covered by each award.

         Notwithstanding the foregoing, in accordance with Section 162(m) of the
Code, no person shall receive grants of Stock Options under this Plan which
exceed 500,000 shares during any fiscal year of the Company.

         SECTION 5. Stock Options.

         Any Stock Option granted under the Plan shall be in such form as the
Committee may from time to time approve.

         The Stock Options granted under the Plan may be of two types: (i)
Incentive Stock Options and (ii) Non-Qualified Stock Options. The Committee
shall have the authority to grant any participant Incentive Stock Options,
Non-Qualified Stock Options, or both types of options. To the extent that any
option does not qualify as an Incentive Stock Option, it shall constitute a
separate Non-Qualified Stock Option.

         Anything in the Plan to the contrary notwithstanding, no term of this
Plan relating to Incentive Stock Options shall be interpreted, amended or
altered, nor shall any discretion or authority granted under the Plan be so
exercised, so as to disqualify either the Plan or any Incentive Stock Option
under Section 422 of the Code. The preceding sentence shall not preclude any
modification or amendment to an outstanding Incentive Stock Option, whether or
not such modification or amendment results in disqualification of such Stock
Option as an Incentive Stock Option, provided that the optionee consents in
writing to the modification or amendment.

         Options granted under the Plan shall be subject to the following terms
and conditions and shall contain such additional terms and conditions, not
inconsistent with the terms of the Plan, as the Committee shall deem desirable.

         a. Consideration for Awards. Awards of Stock Options under the Plan may
be granted for no cash consideration or for such other consideration as may be
determined by the Committee or required by applicable law.

                                      -5-
                                                                     Amendment A
<PAGE>

         b. Option Exercise Price. The price per share of Stock purchasable
under a Stock Option shall be no less than 100% of Fair Market Value on the date
the option is granted. If an employee owns or is deemed to own (by reason of the
attribution rules applicable under Section 424(d) of the Code) more than 10% of
the combined voting power of all classes of stock of the Company or any Parent
Corporation or Subsidiary and an Incentive Stock Option is granted to such
employee, the option exercise price shall be no less than 110% of Fair Market
Value of the Stock on the date the option is granted. The Committee may not
reprice options without shareholder approval.

         c. Option Term. The term of each Stock Option shall be fixed by the
Committee, but no Stock Option shall be exercisable more than eight years after
the date the option is granted. If an employee owns or is deemed to own (by
reason of the attribution rules of Section 424(d) of the Code) more than 10% of
the combined voting power of all classes of stock of the Company or any Parent
Corporation or Subsidiary and an Incentive Stock Option is granted to such
employee, the term of such option shall be no more than five years from the date
of grant.

         d. Time and Method of Exercise. The Committee shall determine the time
or times at which a Stock Option may be exercised in whole or in part and the
method or methods by which, and the form or forms (including cash, shares of
Stock, promissory notes, other securities or other property, or any combination
thereof, but not including Stock Options, having a Fair Market Value on the
exercise date equal to the applicable exercise price) in which, payment of the
exercise price with respect thereto may be made or deemed to have been made.

         e. When Options Are Transferable. No Incentive Stock Option shall be
transferable by the optionee otherwise than by will or by the laws of descent
and distribution, and all Incentive Stock Options shall be exercisable, during
the optionee's lifetime, only by the optionee. Non-Qualified Stock Options may
be transferred by gift, without consideration, by the optionee under a written
instrument acceptable to the Committee, to a member of the optionee's family, as
defined in Section 267 of the Code, or to a trust or similar entity whose sole
beneficiaries are the optionee and/or members of the optionee's family;
provided, however, that such transfer and the exercise thereof shall not violate
any federal or state securities laws. Upon the transfer, the donee shall have
all rights of the optionee and shall be subject to all the terms and conditions
imposed on such Stock Options.

         f. Termination by Death. If an optionee's employment by or service as a
Director to the Company or any Parent Corporation or Subsidiary terminates by
reason of death, any Stock Option held by such optionee at the time of death may
thereafter be exercised, to the extent then exercisable, by the legal
representative of the estate or by the legatee of the optionee under the will of
the optionee, but may not be exercised after 12 months from the date of such
death or the expiration of the stated term of the option, whichever period is
shorter. In the event of termination of employment or service as a Director by
reason of death, if, pursuant to its terms, any Incentive Stock Option is
exercised after the expiration of the exercise periods that apply for purposes
of Section 422 of the Code, the option will thereafter be treated as a
Non-Qualified Stock Option.

                                      -6-
                                                                     Amendment A
<PAGE>

         g. Termination by Reason of Disability. If an optionee's employment by
or service as a Director to the Company or any Subsidiary or Parent Corporation
terminates by reason of Disability, any Stock Option held by such optionee may
thereafter be exercised, to the extent it was exercisable at the time of
termination due to Disability, but may not be exercised after 12 months from the
date of such termination of employment or service as a Director or the
expiration of the stated term of the option, whichever period is shorter. In the
event of termination of employment or service as a Director by reason of
Disability, if, pursuant to its terms, any Incentive Stock Option is exercised
after the expiration of the exercise periods that apply for purposes of Section
422 of the Code, the option will thereafter be treated as a Non-Qualified Stock
Option.

         h. Termination by Reason of Retirement. If an optionee's employment by
the Company or any Subsidiary or Parent Corporation terminates by reason of
Retirement, any Stock Option held by such optionee may thereafter be exercised,
to the extent it was exercisable at the time of termination due to Retirement,
but may not be exercised after 36 months from the date of such termination of
employment or the expiration of the stated term of the option, whichever period
is shorter. In the event of termination of employment by reason of Retirement,
if, pursuant to its terms, any Incentive Stock Option is exercised after the
expiration of the exercise periods that apply for purposes of Section 422 of the
Code, the option will thereafter be treated as a Non-Qualified Stock Option.

         i. Other Termination. If an optionee's Continuous Status as an Employee
or Consultant terminates (other than upon the optionee's death, Disability or
Retirement), any Stock Option held by such optionee may thereafter be exercised
to the extent it was exercisable at the time of such termination, but may not be
exercised after (i) 90 days after such termination or (ii) the expiration of the
stated term of the option, whichever period is shorter. Notwithstanding the
foregoing, if a Non-Employee Director's service to the Company terminates (other
than upon such Non-Employee Director's death or Disability), whether or not such
service to the Company was provided as a Consultant or a Director, any Stock
Option held by such Non-Employee Director may thereafter be exercised to the
extent it was exercisable at the time of such termination. In the event of
termination of an optionee's employment or service as a Director by reason other
than death, Disability or Retirement and if, pursuant to its terms, any
Incentive Stock Option is exercised after the expiration of the exercise periods
that apply for purposes of Section 422 of the Code, the option will thereafter
be treated as a Non-Qualified Stock Option. In the event an optionee's
employment with or service as a Director to the Company is terminated for Cause,
all unexercised Options granted to such optionee shall terminate immediately.

         j. Annual Limit on Incentive Stock Options. The aggregate Fair Market
Value (determined as of the time the Stock Option is granted) of the Common
Stock with respect to which an Incentive Stock Option under this Plan or any
other plan of the Company and any Subsidiary or Parent Corporation is
exercisable for the first time by an optionee during any calendar year shall not
exceed $100,000.

                                      -7-
                                                                     Amendment A
<PAGE>

         k. Grants of Stock Options to Non-Employee Directors.

                  (i) Each Non-Employee Director who, on or after May 1, 2002
         is(A) elected, re-elected or serving an unexpired term as a Director of
         the Company at any annual meeting of holders of the Stock; or (B)
         elected as a Director of the Company at any special meeting of holders
         of Stock, shall, as of the date of such election, re-election or annual
         or special meeting, automatically be granted a Stock Option to purchase
         4,000 shares of Stock at an exercise price per share equal to 100% of
         the Fair Market Value of the Stock on such date. In the case of a
         special meeting, the action of the holders of shares in electing a
         Non-Employee Director shall constitute the granting of the Stock Option
         to such Director and, in the case of an annual meeting, the action of
         the holders of shares in electing or re-electing a Non-Employee
         Director shall constitute the granting of the Stock Option to such
         Director and to any other Non-Employee Director who shall be designated
         as serving an unexpired term as a Director of the Company in the notice
         or proxy materials for the meeting; and the date when the holders of
         shares shall take such action shall be the date of grant of the Stock
         Option.

                  (ii) Each Non-Employee Director who, on or after May 1, 2002,
         is appointed as a Director of the Company at any time other than at an
         annual or special meeting of holders of the Stock shall, as of the date
         of such appointment, automatically be granted a Stock Option to
         purchase a pro rata number of shares of Stock, which number shall be
         calculated by dividing 4,000 by the number of months that shall occur
         from the date of such Non-Employee Director's appointment to the date
         of the next annual or special meeting of the holders of the Stock. For
         purposes of this clause (ii), the number of months counted towards such
         pro rata grant shall include the calendar month during which the
         Non-Employee Director is appointed as a Director, irrespective of the
         actual date of appointment, but shall not include the month during
         which the next annual or special meeting is held, irrespective of the
         actual date of such meeting.

                  (iii) All Stock Options granted pursuant to this Section 5(k)
         shall be designated as Non-Qualified Stock Options and shall be subject
         to the same terms and provisions as are then in effect with respect to
         the grant of Non-Qualified Stock Options to officers and key employees
         of the Company, except that (A) the term of each such option shall be
         equal to eight years, which term, notwithstanding the provisions in
         Section 5(i), shall not expire upon the termination of service as a
         Director; and (B) the Stock Option shall become exercisable beginning
         six months after the date the option is granted. Upon termination of
         such Director's service as a Director of the Company, the unvested
         portion of any and all Stock Options then held by such Director shall
         not thereafter be exercisable. Subject to the foregoing, all provisions
         of this Plan not inconsistent with the foregoing shall apply to Stock
         Options granted pursuant to this Section 5(k). Stock Options issued
         under this Section 5(k) shall be in lieu of and in substitution for any
         new awards of Stock Options that otherwise would be granted under the
         terms of the St. Jude Medical, Inc. 2000 Stock Option Plan or any prior
         stock option plan of the Company from and after May 1, 2002. Nothing
         herein shall limit the right of the Board to issue Stock Options to any
         Non-Employee Director under the terms of this Plan in addition to those
         provided for under this Section 5(k), provided that no Non-Employee
         Director shall

                                      -8-
                                                                     Amendment A
<PAGE>

         be granted Stock Options under this Plan, including the Options awarded
         under this Section 5(k), in excess of 7,500 shares in any calendar
         year.

         SECTION 6. Transfer, Leave of Absence, etc.

         For purposes of this Plan, the following events shall not be deemed a
termination of employment:

         a. a transfer of an employee from the Company to a Parent Corporation
or Subsidiary, or from a Parent Corporation or Subsidiary to the Company, or
from one Subsidiary to another;

         b. a leave of absence, approved in writing by the Committee, for
military service or sickness, or for any other purpose approved by the Committee
if the period of such leave does not exceed 90 days (or such longer period as
the Committee may approve, in its sole discretion); and

         c. a leave of absence in excess of 90 days, approved by the Committee,
but only if the employee's right to reemployment is guaranteed either by a
statute or by contract, and provided that, in the case of any leave of absence,
the employee returns to work within 30 days after the end of such leave.

         SECTION 7. Amendments and Termination.

         The Board may amend, alter or discontinue the Plan, but no amendment,
alteration or discontinuation shall be made which would impair the rights of an
optionee under a Stock Option theretofore granted, without the optionee's
consent, and no amendment or alteration shall be made which would

                  (i) cause the Plan to no longer comply with Rule 16b-3,
         Section 422 of the Code or any other regulatory requirements;

                  (ii) materially increase the benefits accruing to participants
         under this plan;

                  (iii) materially increase the aggregate number of securities
         that may be issued under this Plan except pursuant to the second
         paragraph of Section 3 which permits adjustments in the number of
         shares of stock in certain events such as a stock split or dividend in
         a manner that is "appropriate in order to prevent dilution or
         enlargement of the benefits or potential benefits intended to be made
         available under the Plan..."; or

                  (iv) materially modify the requirements as to eligibility for
         participation in this plan unless the amendment or alteration shall be
         subject to shareholder approval.

         The Committee may amend the terms of any award or option theretofore
granted, prospectively or retroactively and to the extent such amendment is
consistent with the terms of this Plan, but no such amendment shall impair the
rights of any holder without his or her consent except to the extent authorized
under the Plan. However, the Committee may not reprice

                                      -9-
                                                                     Amendment A
<PAGE>

options, either by lowering the exercise price of outstanding options or
canceling outstanding options and granting replacement options with lower
exercise prices, without shareholder approval.

         SECTION 8. Unfunded Status Of Plan.

         The Plan is intended to constitute an "unfunded" plan for incentive and
deferred compensation. With respect to any payments not yet made to a
participant by the Company, nothing contained herein shall give any such
participant any rights that are greater than those of a general creditor of the
Company. In its sole discretion, the Committee may authorize the creation of
trusts or other arrangements to meet the obligations created under the Plan to
deliver Stock or payments in lieu of or with respect to awards hereunder,
provided, however, that the existence of such trusts or other arrangements is
consistent with the unfunded status of the Plan.

         SECTION 9. General Provisions.

         a. The Committee may require each person purchasing shares of Stock
pursuant to a Stock Option under the Plan to represent to and agree with the
Company in writing that the optionee is acquiring the shares without a view to
distribution thereof. The certificates for such shares may include any legend
which the Committee deems appropriate to reflect any restrictions on transfer.

         All certificates for shares of Stock delivered under the Plan shall be
subject to such stock-transfer orders and other restrictions as the Committee
may deem advisable under the rules, regulations and other requirements of the
Securities and Exchange Commission, any stock exchange upon which the Stock is
then listed, and any applicable federal or state securities laws, and the
Committee may cause a legend or legends to be put on any such certificates to
make appropriate reference to such restrictions.

         b. Nothing contained in this Plan shall prevent the Board of Directors
from adopting other or additional compensation arrangements, subject to
shareholder approval if such approval is required; and such arrangements may be
either generally applicable or applicable only in specific cases. The adoption
of the Plan shall not confer upon any employee of the Company or any Subsidiary
any right to be retained as an employee or Consultant of the Company or a
Subsidiary or Parent Corporation, as the case may be, or a Non-Employee Director
to be retained as a Director, nor shall it interfere in any way with the right
of the Company, Parent Corporation or a Subsidiary to dismiss a participant in
the Plan from employment or service at any time, with or without cause.

         c. Each participant shall, no later than the date as of which any part
of the value of an award first becomes includible as compensation in the gross
income of the participant for any federal tax purposes, pay to the Company, or
make arrangements satisfactory to the Committee regarding payment of, any
federal, state or local taxes of any kind required by law to be withheld with
respect to the award. The obligations of the Company under the Plan shall be
conditional on such payment or arrangements and the Company, Parent Corporation
and a Subsidiary shall, to the extent permitted by law, have the right to deduct
any such taxes from any payment of any kind otherwise due to the participant.
With respect to any award under the Plan, if the terms of

                                      -10-
                                                                     Amendment A
<PAGE>

such award so permit, a participant may elect by written notice to the Company
to satisfy part or all of the minimum tax withholding requirements associated
with the exercise of the award by (i) authorizing the Company to retain from the
number of shares of Stock that would otherwise be deliverable to the
participant, or (ii) delivering to the Company from shares of Stock already
owned by the participant, that number of shares having an aggregate Fair Market
Value equal to part or all of the tax payable by the participant under this
Section 9(c). Any such election shall be in accordance with, and subject to,
applicable tax and securities laws, regulations and rulings.

         d. The internal law, and not the law of conflicts, of the State of
Minnesota, shall govern all questions concerning the validity, construction and
effect of the Plan or any Stock Option, and any rules and regulations relating
to the Plan or any Stock Option.

                                      -11-
                                                                     Amendment A
<PAGE>

         SECTION 10. Effective Date of Plan.

         The Plan shall be effective on February 15, 2002 (the date of approval
by the Board), subject to the approval by shareholders of the Company. If the
Plan is not so approved by the shareholders on or before one year after this
Plan's adoption by the Board, this Plan shall not come into effect. The offering
of the shares of Stock hereunder also shall be subject to the effecting by the
Company of any registration or qualification of the shares under any federal or
state law or the obtaining of the consent or approval of any governmental
regulatory body which the Company shall determine, in its sole discretion, is
necessary or desirable as a condition to or in connection with the offering or
the issue or purchase of the shares covered thereby.

         SECTION 11. Term of Plan.

         Stock Options shall be granted under the Plan only during a 10-year
period beginning on the effective date of the Plan, unless the Plan is
terminated earlier pursuant to Section 7 of the Plan. However, unless otherwise
expressly provided in the Plan or in an applicable option agreement, any Stock
Option theretofore granted may extend beyond the end of such 10-year period, and
the authority of the Committee provided for hereunder with respect to the Plan
and any awards, and the authority of the Board to amend the Plan, shall extend
beyond the termination of the Plan.

                                      -12-
                                                                     Amendment A

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}]]