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EXHIBIT 4.2

BYLAWS

OF

XCEL ENERGY INC.

(a Minnesota corporation)

(as amended at a regular meeting of the

Board of Directors held on February 25, 2004)

ARTICLE 1

NAME, REGISTERED OFFICE, AND CORPORATE SEAL

     Section 1. The name of the Company is Xcel Energy Inc.

     Section 2. The location and post office address of its principal executive
office is 800 Nicollet Mall, Minneapolis, Minnesota 55402.

     Section 3. The Company may establish and maintain an office or offices at
such other places within or without the State of Minnesota as the Board of
Directors may from time to time determine.

     Section 4. The corporate seal of the Company shall have inscribed thereon
the name of the Company and the words “Corporate Seal, Minnesota”. In lieu of
causing the corporate seal to be impressed upon any bond, debenture, note,
contract, or other instrument required or authorized to bear the corporate seal
of the Company, the Board of Directors may authorize a facsimile of said seal
to be engraved or printed thereon, and such facsimile, when so engraved or
printed, shall be and constitute the corporate seal of the Company for such
purpose.

ARTICLE 2

BOARD OF DIRECTORS

     Section 1. The business and property of the Company shall be managed and
controlled by a Board composed of seven (7) directors, which may be increased
to such greater number, not exceeding fifteen (15), as may be determined by the
Board of Directors or by shareholders in accordance with the provisions of this
Article. The number of directors shall be determined by the Board of
Directors, and if the Board fails to make such determination, then the number
may be determined by the shareholders at any annual or special meeting of
shareholders.

 

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     Section 2. From and after the annual meeting of shareholders in 2004, a
director shall hold office until the next annual meeting of the shareholders
and until his successor is elected and qualifies, subject to earlier death,
disqualification, resignation or removal. Notwithstanding the foregoing, each
director elected prior to the annual meeting of shareholders in 2004 shall hold
office until the expiration of his then current term and until his successor is
elected and qualifies, subject to earlier, death, disqualification, resignation
or removal.

     Section 3. During the intervals between annual meetings the number of
directors may be increased, and may be decreased by the number of vacancies
then existing, by the Board of Directors, within the limitations of Section 1
of this Article, and in case of any such increase the Board may fill the
vacancies so created. No decrease in the Board shall shorten the term of any
incumbent director.

     Section 4. Vacancies in the Board of Directors may be filled by the
remaining members of the Board though less than a quorum. Each person so
elected to fill a vacancy shall remain a director for the unexpired term in
respect of which such vacancy occurred and until his successor is elected and
qualifies.

     Section 5. In addition to the powers and authority expressly conferred
upon them by these Bylaws, the Board of Directors may exercise all such powers
and do all such lawful acts and things as may be exercised or done by the
Company that are not by the Articles of Incorporation, these Bylaws, or the
laws of the State of Minnesota directed or required to be exercised or done by
the shareholders.

     Section 6. Without limiting the general powers conferred by Section 5 of
this Article, and other powers conferred by the Minnesota statutes, by the
Articles of Incorporation, and by these Bylaws, it is hereby expressly declared
that the Board of Directors shall have the following powers, that is to say:

     (a) To purchase or otherwise acquire for the Company any property, rights,
or privileges which the Company is authorized to acquire, for such
consideration and on such terms and conditions as it deems proper.

     (b) At its discretion to pay for any property or rights acquired by the
Company either wholly or partly in money or in stock, bonds, debentures, or
other securities or property of the Company.

     (c) To appoint any person or persons to accept and hold in trust for the
Company any property belonging to the Company, or in which it is interested,
and to do and execute all such things as may be requisite in relation to any
such trust.

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     (d) To in any manner aid, facilitate, and assist, on behalf of the
Company, in the construction, extension, improvement, equipment, maintenance,
and operation of any electric light plant or distribution system, electric
transmission or distribution lines, steam plant for heating and power or
distribution system, natural, manufactured, mixed, or liquid petroleum gas
plant or distribution system, gas or oil pipe lines, barge lines, coal mines,
water power or water plants, or telephone systems, and all property and things
appurtenant to or used in connection therewith, and for that purpose to use the
cash or capital stock or other securities or obligations of the Company to buy,
refund, guarantee, or otherwise secure the indebtedness against any such
properties and guarantee the bonds, debentures, indebtedness, dividends,
contracts, or other obligations of firms or other corporations.

     (e) To authorize one or more officers, on behalf of the Company, to borrow
money, make and issue notes, bonds, and other evidences or indebtedness,
execute mortgages, deeds of trust, trust agreements, and instruments of pledge
or hypothecation, and do all other acts necessary to effectuate the same.

     (f) To designate the persons authorized, on the Company’s behalf, to make
and sign notes, receipts, acceptances, endorsements, drafts, checks, or other
orders for the payment of money, releases, contracts, and other instruments,
and, when appropriate, to make provision for the use of facsimile signatures
thereon.

     (g) To designate the persons authorized, on the Company’s behalf, to vote
upon or to assign and transfer any shares of stock, bonds, or other securities
of other corporations held by the Company.

     Section 7. Meetings of the Board of Directors shall be held at the
principal executive office of the Company, but the Chairman of the Board, the
Chief Executive Officer, or a majority of the Board may from time to time
designate some other place within or without the State of Minnesota for the
holding of any such meeting or meetings.

     Section 8. Regular meetings of the Board of Directors may be called by a
director, by the Chairman or by the Chief Executive Officer of the Company, on
at least five (5) days’ notice to all directors of the date, time and place of
the meeting. The notice shall be given to each director by mail, electronic
mail, facsimile, telephone, personal service or any other means as may then be
permitted by law and
need not state the purpose of the meeting. If the date, time and place of
a Board meeting have been announced at a previous meeting of the Board, no
notice is

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required. Notice of an adjourned meeting need not be given other
than by announcement at the meeting at which the adjournment is taken.

     Section 9. Special meetings of the Board of Directors shall be held
whenever called by the Chairman of the Board, by the Chief Executive Officer or
by a majority of the Board, on at least twenty-four (24) hours’ notice to all
directors of the date, time and place of the meeting. The notice shall be
given to each director by mail, electronic mail, facsimile, telephone, personal
service or any other means as may then be permitted by law and need not state
the purpose of the meeting.

     Section 10. A director may waive notice of a meeting of the Board. A
waiver of notice by a director entitled to notice is effective whether given
before, at, or after the meeting and whether given in writing, orally, or by
attendance. Attendance by a director at a meeting is a waiver of notice of
that meeting, except when the director objects at the beginning of the meeting
to the transaction of business because the meeting is not lawfully called or
convened and does not participate thereafter in the meeting.

     Section 11. Unless otherwise indicated in the notice thereof, any and all
business may be transacted at a special meeting.

     Section 12. Any meeting of the Board of Directors may be conducted solely
by one or more means of remote communication, or other similar method then
permitted by law, through which all of the directors may participate with each
other during the meeting if the same notice is given of the meeting as would be
required by these Bylaws and Minnesota law for a board meeting and if the
number of directors participating in the meeting is sufficient to constitute a
quorum at a meeting. A director not physically present in person at any
meeting of the Board of Directors may participate in the meeting by means of
remote communication, or other similar method then permitted by law. Any
director’s participation in a meeting by that means constitutes presence in
person at the meeting.

     Section 13. The Board of Directors shall elect the Officers of the
Company, who shall hold office until they are removed or their successors are
elected and qualify.

     Section 14. A majority of the Board of Directors shall constitute a quorum
for the transaction of business, and the acts of a majority of the directors
present at a meeting at which a quorum is present shall be the acts of the
Board of Directors,
except as may be otherwise specifically provided by the Minnesota
statutes, by the Articles of Incorporation, or by these Bylaws. At any meeting
at which there is less

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than a quorum present, the director or directors present
shall have power by a majority vote to adjourn the meeting from time to time
without notice other than announcement at the meeting. If a quorum is present
when a duly called or held meeting is convened, the directors present may
continue to transact business until adjournment, even though the withdrawal of
a number of directors originally present leaves less than the proportion or
number otherwise required for a quorum.

     Section 15. The Board shall take action by the affirmative vote of a
majority of directors present at a duly held meeting, except where the
affirmative vote of a larger proportion or number is required by the Articles
of Incorporation, these Bylaws, or the Minnesota statutes. If the Articles of
Incorporation require a larger proportion or number than is required by the
Minnesota statues for a particular action, the Articles of Incorporation shall
control.

     Section 16. A director may give advance written consent or opposition to a
proposal to be acted on at a board meeting. If the director is not present at
the meeting, consent or opposition to a proposal does not constitute presence
for purposes of determining the existence of a quorum, but consent or
opposition shall be counted as a vote in favor of or against the proposal and
shall be entered in the minutes or other record of action at the meeting, if
the proposal acted on at the meeting is substantially the same or has
substantially the same effect as the proposal to which the director has
consented or objected.

     Section 17. Any action which might be taken at a meeting of the Board of
Directors or a committee may be taken without a meeting if done in writing
signed by all of the members of the Board of Directors or the committee.

     Section 18. Inasmuch as the directors of the Company are persons of large
and diversified business interests and are likely to be connected with other
organizations with which this Company may have business dealings from time to
time, no contract or other transaction between this Company and one or more of
its directors or between the Company and any other organization in which one or
more of its directors are directors, officers or legal representatives or have
a material financial interest shall be void or voidable because a director or
directors or the other organization are parties or because the director or
directors are present at the meeting of the shareholders or the board or a
committee at which the contract or transaction is authorized, approved or
ratified if:

     (a) The contract or transaction was, and the person asserting the validity
of the contract or transaction sustains the burden of establishing that the

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contract or transaction was, fair and reasonable as to the Company at the time
it was authorized, approved or ratified;

     (b) The material facts as to the contract or transaction and as to the
director’s or directors’ interest are fully disclosed or known to the holders
of all outstanding shares, whether or not entitled to vote, and the contract or
transaction is approved in good faith by (1) the holders of two-thirds (2/3) of
the voting power of the shares entitled to vote that are owned by persons other
than the interested director or directors, or (2) the unanimous affirmative
vote of the holders of all outstanding shares, whether or not entitled to vote;

     (c) The material facts as to the contract or transaction and as to the
director’s or directors’ interest are fully disclosed or known to the Board of
Directors or a committee, and the Board of Directors or committee authorizes,
approves or ratifies the contract or transaction in good faith by a majority of
the Board of Directors or committee but the interested director or directors
shall not be counted in determining the presence of a quorum and shall not
vote; or

     (d) The contract or transaction is a distribution described in Minnesota
statutes Section 302.551, subdivision 1, or a merger or exchange described in
Minnesota statutes Section 302A.601, subdivision 1 or 2.

     Section 19. The Board of Directors, in its discretion, may provide for the
payment of compensation to each director and the expenses of each director for
attendance at each meeting of the Board or of any committee thereof; provided,
however, that no part of any such payment shall be paid to any director during
any year when there is in effect a prior written request from such director
that all or a portion of said payments not be paid to him. Nothing herein shall
be construed to preclude any director from serving the Company in any other
capacity as an officer or otherwise and receiving compensation therefor.

     Section 20. A resolution approved by the affirmative vote of a majority of
the entire Board of Directors may establish committees having the authority of
the Board in the management of the business of the Company to the extent
provided in the resolution. Committee members shall be natural persons.
Unless the Articles of Incorporation provide for a different membership, a
committee shall consist of one or more persons, who need not be directors,
appointed by affirmative vote of a majority of the directors present. A
majority of the members of the committee present at a meeting is a quorum for
the transaction of business, unless a larger or smaller
proportion or number is provided in the Articles of Incorporation, these
Bylaws, or in a resolution approved by the affirmative vote of a majority of
the directors present.

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Minutes, if any, of committee meetings shall be made
available upon request to members of the committee and to any director.

ARTICLE 3

OFFICERS

     Section 1. (a) The officers of the Company shall be elected by the Board
of Directors and shall consist of a Chairman of the Board, a Chief Executive
Officer, a President, a Chief Financial Officer, one or more Vice Presidents
any of whom may have such additional designation as the Board of Directors may
provide, a Secretary and one or more Assistant Secretaries, a Treasurer and one
or more Assistant Treasurers, and such other officers as may from time to time
be elected or appointed by the Board of Directors. Except as otherwise
provided below, an officer shall perform those duties usually incident to the
office or as otherwise required by the Board of Directors, the Chief Executive
Officer or the officer to whom he reports. The filling of the office of
Chairman of the Board shall be discretionary with the Board of Directors. Any
number of offices or functions of those offices may be held or exercised by the
same person. If a document must be signed by persons holding different offices
or functions and a person holds or exercises more than one of those offices or
functions, that person may sign the document in more than one capacity, but
only if the document indicates each capacity in which the person signs.

     (b) At its discretion, the Board of Directors at any time, by resolution,
may recognize the outstanding services of an individual who has served as
Chairman of the Board of the Company by conferring upon him the honorary title
of “Chairman Emeritus”, such title to be held for such limited period of time,
or for life, as may be determined by the Board. The action of the Board of
Directors in conferring the honorary title of “Chairman Emeritus” upon such
individual shall not constitute such individual an officer of the Company and
shall not otherwise affect the status of such individual as a member of the
Board.

     Section 2. The Chairman of the Board shall preside at all meetings of the
shareholders and the Board of Directors, shall be a non-voting ex officio
member of all standing committees and shall have such other powers and perform
such other duties as may be prescribed by the Board.

     Section 3. The Chief Executive Officer of the Company shall: have general
active management of the business of the Company; in the absence of the
Chairman of the Board, preside at all meetings of the shareholders and the
Board of Directors; be a
non-voting ex officio member of all standing committees; and perform such
other duties as may be prescribed by the Board.

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     Section 4. The President, in the absence of the Chairman of the Board and
the Chief Executive Officer, shall preside at all meetings of the shareholders
and the Board of Directors and shall be a non-voting ex officio member of all
standing committees. The President shall report to the Chief Executive Officer
and shall exercise the functions of the Chief Executive Officer during the
absence or disability of the Chief Executive Officer.

     Section 5. The Chief Financial Officer of the Company shall keep accurate
financial records for the Company; deposit all money, drafts, and checks in the
name of and to the credit of the Company in the banks and depositories
designated by the Board; endorse for deposit all notes, checks, and drafts
received by the Company as ordered by the Board, making proper vouchers
therefor; disburse corporate funds and issue checks and drafts in the name of
the Company, as ordered by the Board; render to the Chief Executive Officer and
the Board, whenever requested, an account of all transactions by the Chief
Financial Officer and of the financial condition of the Company; and perform
other duties prescribed by the Board or the Chief Executive Officer.

     Section 6. The Vice Presidents shall be vested with all the powers and
shall perform all the duties of the President in the order designated by the
Chief Executive Officer in case of the President’s absence and in the order
designated by the Chief Executive Officer or by the Board of Directors in case
of the President’s disability, and shall have such other powers and perform
such other duties as may be prescribed by the Chief Executive Officer or by the
Board.

     Section 7. The Secretary shall give, or cause to be given, all notices
required by the Minnesota statutes, by the Articles of Incorporation, or by
these Bylaws. He shall act as secretary of all the meetings of the
shareholders and of the Board of Directors and shall record the proceedings of
all such meetings in the book or books kept for that purpose. Unless otherwise
prescribed by the Chief Executive Officer of the Company, he shall keep, or
cause to be kept, a record of all certificates of stock issued and all
transfers thereof, which shall show the names and addresses of the holders of
such certificates and dates of issuance and transfer, and shall perform such
other duties as may be prescribed by the Chief Executive Officer or by the
Board.

     Section 8. The Assistant Secretaries shall be vested with all the powers
and shall perform all the duties of the Secretary in the absence or disability
of the latter,
and shall perform such other duties as may be prescribed by the Chief
Executive Officer or by the Board of Directors.

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     Section 9. The Controller, unless otherwise provided by the Board of
Directors, shall be the principal accounting officer of the Company. He shall
have executive direction of all accounting functions, and shall keep, or cause
to be kept, appropriate and complete books of account, and shall render to the
Chief Executive Officer and to the Board of Directors such reports as may be
required from time to time. He shall have such other powers and duties as are
commonly incidental to the office of controller and as may be prescribed for
him by the Board of Directors or the Chief Executive Officer.

     Section 10. The Treasurer shall perform duties delegated by the Chief
Financial Officer of the Company or as may be prescribed for him by the Board
of Directors.

     Section 11. The Assistant Treasurers shall be vested with all the powers
and shall perform all the duties of the Treasurer in the absence or disability
of the latter, and shall perform such other duties as may be prescribed by the
Chief Financial Officer or by the Board of Directors.

     Section 12. In case of the absence or disability of any officer of the
Company, or for any other reason deemed sufficient by it, the Board of
Directors may delegate the powers and duties of such officer to any other
officer or to any director for the time being.

     Section 13. The compensation of all officers shall be fixed by the Board
of Directors or a duly authorized committee thereof.

     Section 14. An officer shall hold office from the date elected by the
Board of Directors until the earlier of such officer’s death, disqualification,
resignation or removal or until a successor is elected and qualifies. Any
officer may be removed by the Board of Directors at any time with or without
cause, subject to the provisions of a shareholder control agreement, by a
resolution approved by the affirmative vote of a majority of the directors
present. Such removal shall be without prejudice to any contractual rights of
the officer. Any officer may resign at any time by giving written notice to
the Company.

     Section 15. A vacancy in any office because of death, resignation,
removal, disqualification or other cause may, or in the case of a vacancy in
the office of Chief
Executive Officer or Chief Financial Officer shall, be filled by the Board
of Directors at any time.

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ARTICLE 4

INDEMNIFICATION OF DIRECTORS,

OFFICERS, EMPLOYEES, AND AGENTS

     Section 1. The Company shall indemnify any person made or threatened to be
made a party to a proceeding by reason of the former or present official
capacity of the person acting for the Company or acting in an official capacity
with another entity at the direction or request of the Company to the full
extent permitted by the laws of the State of Minnesota.

     Section 2. The indemnification provided by this Article 4 shall inure to
the benefit of the heirs, executors, administrators, and personal
representatives of any person acting in an official capacity for the Company.

     Section 3. The Company may purchase and maintain insurance on behalf of a
person in that person’s official capacity against any liability asserted
against and incurred by the person in or arising from that capacity, whether or
not the Company would be required by law to indemnify the person against the
liability.

ARTICLE 5

ISSUANCE AND TRANSFER

OF CERTIFICATES OF SHARES

     Section 1. Every certificate of shares shall be numbered and shall be
entered on the books of the Company as it is issued. It shall be signed by the
Chairman of the Board, the Chief Executive Officer, the President or a Vice
President and by the Secretary or an Assistant Secretary and shall bear the
corporate seal. The foregoing signatures and the corporate seal upon such
certificate may be facsimiles, engraved or printed on such certificate.

     Section 2. If a person signs or has a facsimile signature placed upon a
certificate while an officer, transfer agent, or registrar of the Company, the
certificate may be issued by the Company, even if the person has ceased to have
that capacity before the certificate is issued, with the same effect as if the
person had that capacity at the date of its issue.

     Section 3. Transfers of shares shall be made on the books of the Company
only upon surrender to the Company by the holder of record thereof or his legal
representative of a certificate (if any) for the shares duly endorsed and
proper evidence of succession, assignment or authority to transfer, provided
that such succession, assignment or transfer is not prohibited by the Company’s
Articles of

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Incorporation, these Bylaws, applicable law or contract.
Thereupon, the Company shall issue a new certificate (if requested) to the
person entitled thereto, cancel the old certificate (if any) and record the
transaction upon its books. Transfers of fractional shares shall not be made
nor shall certificates for fractional shares be issued.

     Section 4. In case of the loss, destruction, or theft of a certificate of
shares, a new certificate (if requested) may be issued in its place upon the
submission of satisfactory proof of such loss, destruction, or theft and a bond
of indemnity satisfactory to the Treasurer.

     Section 5. The Company shall be entitled to treat the holder of record of
any share or shares as the holder in fact thereof and shall not be bound to
recognize any equitable or other claim to or interest in such share on the part
of any other person whether or not it shall have express or other notice
thereof, except as expressly provided otherwise by the Minnesota statutes.

     Section 6. The Board of Directors shall have authority to appoint one or
more registrars or transfer agents for any or all classes of shares of the
Company, to make such rules and regulations as it may deem expedient concerning
the issuance, registration, and transfer of such shares, and to remove such
registrars or transfer agents, or any of them, and appoint another or others in
its or their stead. A certificate of shares of any class for which one or more
registrars or transfer agents shall have been so appointed shall not be valid
until countersigned by a registrar or a transfer agent, or both, as the case
may be, which countersignature may be in facsimile form.

ARTICLE 6

SHAREHOLDERS

     Section 1. The annual and special meetings of shareholders shall be held
at the principal executive office of the Company, but the Board of Directors
may designate some other place within or without the State of Minnesota for the
holding of any such meeting or meetings. The annual meeting of shareholders
shall be held on the date and time and at the location designated by the Board
of Directors. Written notice of each meeting of shareholders, stating the
time, date and place, and, in case of a special meeting, the purpose, shall be
given by the Secretary to each shareholder entitled to vote at such meeting,
not less than ten (10) nor more than sixty (60) days prior to the date of such
meeting.

     Section 2. The Chairman of the Board shall preside at all meetings of the
shareholders, and in his absence or disability or at his request the Chief
Executive

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Officer shall preside, and in the absence or disability of both of
said officers the President shall preside.

     Section 3. The Board of Directors may fix a record date not more than
sixty (60) days before the date of a meeting of shareholders as the date for
the determination of shareholders entitled to receive notice of and to vote at
any meeting of shareholders, and a record date for the determination of
shareholders entitled to receive payments of any dividend or distribution or
allotment of rights or to exercise rights with respect to any change,
conversion, or exchange of shares, and may close the books of the Company
against the transfer of shares during the whole or any part of the period so
fixed. When a date is so fixed, only the shareholders on that date are
entitled to notice and permitted to vote at that meeting of shareholders.

     Section 4. Special meetings of the shareholders may be called for any
purpose or purposes at any time, by the Chairman, the Chief Executive Officer,
the Chief Financial Officer, two or more directors, or a person authorized by
Minnesota law, the Articles of Incorporation or these Bylaws to call special
meetings.

     Section 5. The holders of a majority of the voting power of the shares
issued and outstanding and entitled to vote, present in person or by proxy,
shall constitute a quorum at all meetings of shareholders for the transaction
of business, except as otherwise provided by the Minnesota statutes, by the
Articles of Incorporation, or by these Bylaws. In the absence of a quorum, any
meeting may be adjourned from time to time. The shareholders present at a duly
called or held meeting at which a quorum is present may continue to transact
business until adjournment, notwithstanding the withdrawal of enough
shareholders to leave less than a quorum. If any meeting of the shareholders is
adjourned to another time or place, no notice of the date, time, and place of
such adjourned meeting need be given other than by announcement at the time of
adjournment.

     Section 6. At each meeting of shareholders every shareholder of record, or
his legal representatives, at the date fixed by the Board of Directors for the
determination of the persons entitled to vote at a meeting of shareholders, or,
if no date has been so fixed, then at the close of the thirtieth (30th) day
preceding the date of the meeting, shall be entitled at such meeting to one
vote for each share standing in his name on the books of the Company and such
additional votes for such share as may be provided for by the Articles of
Incorporation or in the terms of the shares. A shareholder may cast his vote
in person or by proxy. The appointment of a proxy shall be in writing, by
telegraph, cablegram, or any other form of electronic
transmission,
including telephonic transmission, whether or not accompanied by written
instructions of the shareholder. If it is determined that a telegram,
cablegram, or other electronic

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transmission is valid, the inspectors of
election or, if there are no inspectors, the other persons making that
determination, shall specify the information upon which they rely to make that
determination. Such appointment shall be filed with the Secretary or the
Company’s duly authorized agent at or before the meeting. An appointment of a
proxy for shares held jointly by two (2) or more shareholders is valid if
signed by any one (1) of them, unless the Company receives from any one (1) of
those shareholders written notice either denying the authority of that person
to appoint a proxy or appointing a different proxy. The vote for directors,
and, upon the demand of any shareholder, the vote upon any question before the
meeting, shall be by ballot. All elections shall be had and all questions
decided by a majority vote of the shares present, except where a larger
proportion or number is required by the Articles of Incorporation, these
Bylaws, or the laws of the State of Minnesota.

     Section 7. In any case where a class or series of shares is entitled by
the Articles of Incorporation, the laws of the State of Minnesota, or the terms
of the shares to vote as a class or series, the matter being voted upon must
also receive the affirmative vote of the holders of the same proportion of the
shares of that class or series as is required pursuant to Section 6 of this
Article.

     Section 8. Shares owned by two (2) or more shareholders may be voted by
any one (1) of them unless the Company receives written notice from any one of
them denying the authority of that person to vote those shares.

     Section 9. Except as otherwise provided in Section 3 of this Article 6 or
the laws of the State of Minnesota, the Company shall be entitled to recognize
the exclusive right of a person registered on its books as the owner of shares
to receive dividends and to vote as such owner and shall not be bound to
recognize any equitable or other claim to or interest in such share or shares
on the part of any other person, whether or not it shall have express or other
notice thereof.

     Section 10. In advance of any meeting of shareholders, the Chairman of the
Board shall appoint one (1) or more inspectors of election, who need not be
shareholders, as to the matters to be submitted to a vote at any such meeting,
or any adjournment thereof. The inspectors of election when so appointed shall
take charge of all proxies and ballots and shall determine the number of shares
outstanding, the voting power of each, the shares represented at the meeting,
and the existence of a quorum. They shall determine all questions relating to
the qualifications of voters, the authenticity, validity, and effect of
proxies, and the acceptance or rejection of votes, challenges, and questions
arising in any way in connection with the right to vote and
the counting and tabulation of such votes. They shall determine the number
of votes cast for any office or for or against any proposal, and shall
determine and report the

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results to the meeting. The inspectors shall take an
oath that they will perform their duties impartially, in good faith, and to the
best of their ability and as expeditiously as is practical. If, for any
reason, an inspector previously appointed shall fail to attend or refuse or be
unable to serve, the vacancy shall be filled by the Chairman of the Board in
advance of convening the meeting, or at the meeting by the person acting as
Chairman. Each report of the inspectors shall be in writing and signed by the
inspectors. The report of a majority shall be the report of the inspectors.

     Section 11. (a) At any annual meeting or any special meeting of
shareholders, only such business shall be conducted, and only such proposals
shall be acted upon as shall have been brought before the meeting (i) by, or at
the direction of, the Board of Directors, or (ii) by any shareholder of the
Company who complies with the requirements of Rule 14a-8 under the Securities
Exchange Act of 1934, as amended, or (iii) by any shareholder of the Company
who complies with the notice procedures set forth in this Section 11.

     (b) For a proposal to be properly brought before an annual or special
meeting by a shareholder, the shareholder must have given timely notice thereof
in writing to the Secretary of the Company. To be timely, a shareholder’s
notice must be delivered to, or mailed and received at, the principal executive
office of the Company not less than forty-five (45) days or more than ninety
(90) days prior to the date on which the company first mailed its proxy
materials for the prior year’s annual meeting, regardless of any postponements,
deferrals or adjournments of that meeting to a later date, provided that if
during the prior year the Company did not hold an annual meting, or if the date
of the meeting has changed more than 30 days from the date of the prior year’s
meeting, the notice must be received within a reasonable time before the
Company mails its proxy materials for the current year; provided, however, that
if less than thirty (30) days’ notice or prior public disclosure of the date by
which such shareholder’s notice is required is given or made, notice by the
shareholder, to be timely, must be so delivered or received not later than the
close of business on the tenth (10th) day following the earlier of the day on
which such notice of the date by which such shareholder’s notice is required
was mailed or the day on which such public disclosure was made.

     (c) A shareholder’s notice to the Secretary shall set forth as to each
matter the shareholder proposes to bring before the meeting (i) a brief
description of the proposal desired to be brought before the meeting and the
reasons for conducting such business at the meeting, (ii) the name and address,
as they appear on the Company’s books, of the shareholder proposing such
business and any other shareholder known
by such shareholder to be supporting such proposal who is the record or
beneficial owner (as such term is defined in Rule 13d-3 or 13d-5 under the
Securities Exchange

14

 

	 	 	 
	Xcel Energy Inc.
	 	Bylaws

Act of 1934, as amended) of any equity security of the
Company, (iii) the class and number of shares of the Company’s equity
securities which are beneficially owned (as defined above) and owned of record
by the shareholder giving the notice on the date of such shareholder notice and
by any other record or beneficial owners of the Company’s equity securities
known by such shareholder to be supporting such proposal on the date of such
shareholder notice, and (iv) any financial or other interest of the shareholder
in such proposal.

     (d) The Chairman of the Board may reject any shareholder proposal not
timely made in accordance with the terms of this Section 11. If the Chairman
of the Board determines that the information provided in a shareholder’s notice
does not satisfy the informational requirements of this Section 11 in any
material respect, the Secretary of the Company shall promptly notify such
shareholder of the deficiency in the notice. The shareholder shall have an
opportunity to cure the deficiency by providing additional information to the
Secretary within such period of time, not to exceed five (5) days from the date
such deficiency notice is given to the shareholder, as the Chairman of the
Board shall reasonably determine. If the deficiency is not cured within such
period, or if the Chairman of the Board determines that the additional
information provided by the shareholder, together with the information
previously provided, does not satisfy the requirements of this Section 11 in
any material respect, then the Chairman of the Board may reject such
shareholder’s proposal. The Secretary of the Company shall notify a
shareholder in writing whether such person’s proposal has been made in
accordance with the time and information requirements of this Section 11.
Notwithstanding the procedures set forth in this paragraph, if the Chairman of
the Board does not make a determination as to the validity of any shareholder
proposal under Section 11(c), the chairman of the annual or special meeting of
shareholders shall determine and declare at the meeting whether the shareholder
proposal was made in accordance with the terms of Section 11. If the chairman
of such meeting determines that a shareholder proposal was not made in
accordance with the terms of this Section 11, he or she shall so declare at the
meeting and any such proposal shall not be acted upon at the meeting.

     (e) This provision shall not prevent the consideration and approval or
disapproval at any meeting of reports of officers, directors, and committees of
the Board of Directors, but, in connection with such reports, no new business
shall be acted upon at such meeting unless stated, filed, and received as
herein provided.

     Section 12. Any notice given by a shareholder to the Company or an officer
of the Company must be in writing and mailed or delivered to the Company or the
officer at the registered office or principal executive office of the Company.

15

 

	 	 	 
	Xcel Energy Inc.
	 	Bylaws

     Section 13. Any notice given by the Company to a shareholder may be by
mail, electronic communication, personal service or in any other manner
permitted by the Securities Exchange Act of 1934, as amended, and is effective
when given. An affidavit of the Secretary, or other authorized officer or
agent of the Company, that the notice has been given by a form of electronic
communication is, in the absence fraud, prima facie evidence of the facts
stated in the affidavit. Notice by electronic communication is deemed given:

          (a) If by facsimile, when directed to a number at which the shareholder
has consented to receive notice;

          (b) If by electronic mail, when directed to an electronic mail address at
which the shareholder has consented to receive notice;

          (c) If by a posting on an electronic network on which the shareholder has
consented to receive notice, together with separate notice to the shareholder
of the specific posting, upon the later of (i) the posting and (ii) the giving
of the separate notice; and

          (d) If by any other form of electronic communication by which the
shareholder has consented to receive notice, when directed to the shareholder.

ARTICLE 7

FISCAL YEAR

     Section 1. The fiscal year of the Company shall begin on the first day of
January and terminate on the last day of December in each year.

ARTICLE 8

GENERAL PROVISIONS

     Section 1. Words importing the singular number include the plural and vice
versa. Words importing males include females, and words importing natural
persons include corporations.

     Section 2. These Bylaws may be altered, amended or repealed by the
shareholders or by the Board of Directors as provided by the Articles of
Incorporation.

* * * * * * * * * *

16exv10w1

 

EXHIBIT 10.1

LSI LOGIC CORPORATION

EMPLOYEE STOCK PURCHASE PLAN

Amended and Restated

     The following constitutes the provisions of the Employee Stock Purchase
Plan (the “Plan”) of LSI Logic Corporation amended and restated effective March
31, 1999.

1. PURPOSE. The purpose of the Plan is to provide employees of the Company and
its Designated Subsidiaries with an opportunity to purchase Common Stock of the
Company through accumulated payroll deductions. It is the intention of the
Company that the Plan qualify as an “Employee Stock Purchase Plan” under
Section 423 of the Internal Revenue Code of 1986, as amended. The provisions
of the Plan shall, accordingly, be construed so as to extend and limit
participation in a manner consistent with the requirements of that section of
the Code.

2. DEFINITIONS.

     (a) “Board” means the Board of Directors of the Company, or to the
extent authorized by the Board, a Committee of the Board.

     (b) “Code” means the Internal Revenue Code of 1986, as amended.

     (c) “Common Stock” means the common stock of the Company.

     (d) “Company” means LSI Logic Corporation and any Designated Subsidiary of
the Company.

     (e) “Compensation” means, for Offering Periods commencing prior to
November 15, 2000, all regular straight time earnings, exclusive of payments
for overtime, shift premium, incentive compensation, incentive payments,
bonuses, commissions and other compensation. For Offering Periods commencing
on or after November 15, 2000, “Compensation” shall mean all regular and
recurring straight time earnings, payments for overtime, shift premium,
incentive compensation, incentive payments, bonuses, commissions, but exclusive
of other compensation.

     (f) “Designated Subsidiary” means any Subsidiary which has been designated
by the Board from time to time in its sole discretion as eligible to
participate in the Plan.

     (g) “Employee” means any individual who is an Employee of the Company for
tax purposes whose customary employment with the Company is at least 20 hours
per week and more than five months in a calendar year. For purposes of the
Plan, the employment relationship will be treated as continuing intact while
the individual is on sick leave or other leave of absence approved in writing
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 by contract, the
employment relationship shall be deemed to have terminated on the 91st day of
such leave. It shall not include any independent

 

 

contractors providing services to the Company or its Subsidiaries, regardless of the length of such
service.

     (h) “Enrollment Date” means the first Trading Day of each Offering Period.

     (i) “Exercise Date” means the last Trading Day of each Purchase Period.

     (j) “Fair Market Value” means, as of any date, the value of the Common
Stock determined as follows:

          (1) If the Common Stock is listed on any established stock exchange or a
national market system, its Fair Market Value shall be the closing sales price
for such stock (or the closing bid, if no sales were reported) as quoted on
such exchange or system for the last market trading day on the date of such
determination, as reported by The Wall Street Journal or such other source as
the Board deems reliable;

          (2) If the Common Stock is regularly quoted by a recognized securities
dealer but selling prices are not reported, its Fair Market Value shall be the
mean of the closing bid and asked prices for the Common Stock on the date of
such determination, as reported by The Wall Street Journal or such other source
as the Board deems reliable; or

          (3) In the absence of an established market for the Common Stock, the Fair
Market Value shall be determined in good faith by the Board.

     (k) “Offering Periods” means a period of approximately 12 months during
which an option granted pursuant to the Plan may be exercised as further
described in Section 4, except that the Offering Period that began October 1,
1998 will end on September 29, 2000 and an Offering Period shall commence on
October 1, 2000 and end on November 14, 2000. The duration and timing of
Offering Periods may be changed pursuant to Sections 4 and 20 of this Plan.

     (l) “Plan” means this Amended and Restated Employee Stock Purchase Plan.

     (m) “Purchase Period” means the approximately six-month period commencing
after one Exercise Date and ending with the next Exercise Date, except that the
first Purchase Period of any Offering Period will commence on the Enrollment
Date and end with the next Exercise Date. Notwithstanding the foregoing, with
respect to the Offering Period commencing upon October 1, 2000 and ending on
November 14, 2000, “Purchase Period” shall be the same (approximately) six week
period.

     (n) “Purchase Price” means 85% of the Fair Market Value of a share of
Common Stock on the Enrollment Date or on the Exercise Date, whichever is
lower; provided, however, that with respect to the Offering Periods commencing
on or after January 1, 1999, unless otherwise directed by the Board, if the
Fair Market Value of a share of Common Stock on the date on which additional
shares of Common Stock (the “New Shares”) are authorized for issuance hereunder
by the Company’s stockholders (the “Authorization Date”) is higher than the
Fair Market Value of a share of Common Stock on the Enrollment Date of any
outstanding Offering Period that commenced prior

 

 

to the Authorization Date, the Purchase Price for only New Shares to be issued on any remaining Exercise Date
of any Offering Period in effect on the Authorization Date shall be 85% of the
Fair Market Value of a share of Common Stock on the Authorization Date or on the
Exercise Date, whichever is lower. The Purchase Price may be adjusted by the
Board pursuant to Section 20.

     (o) “Reserves” means the number of shares of Common Stock covered by each
option under the Plan which have not yet been exercised and the number of
shares of Common Stock that have been authorized for issuance under the Plan
but not yet placed under option.

     (p) “Subsidiary” means any corporation, domestic or foreign, of which not
less than 50% of the voting shares are held by the Company or a Subsidiary,
whether or not such corporation now exists or is hereafter organized or
acquired by the Company or a Subsidiary.

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

3. ELIGIBILITY.

     (a) Any Employee who is employed by the Company on a given Enrollment Date
shall be eligible to participate in the Plan, subject to the requirements of
Section 5(a) and the limitations imposed by Section 423(b) of the Code.

     (b) Any provisions of the Plan to the contrary notwithstanding, no
Employee shall be granted an option under the Plan (i) to the extent that,
immediately after the grant, such Employee (or any other person whose stock
ownership would be attributed to such Employee pursuant to Section 424(d) of
the Code) would own capital stock and/or hold outstanding options to purchase
shares possessing five percent 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 (described in Section 423 of the Code) of the
Company and its Subsidiaries accrue (i.e., become exercisable) at a rate which
exceeds $25,000 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 consecutive, overlapping
Offering Periods with a new Offering Period commencing on the first Trading Day
on or after May 15 and November 15 each year, or on such other date as the
Board shall determine, and continuing thereafter until terminated in accordance
with Section 20 hereof, except as set forth in this Section 4. The first
Offering Period of the Plan as amended and restated shall commence with the
first Trading Day on or after May 15, 1999 and end on the last Trading Day on
or before May 14, 2000. The Offering Period which began on October 1, 1998
will end on September 29, 2000 and an Offering Period shall commence on October
1, 2000 and end on November 14, 2000. The Board shall have the power to change
the duration of Offering Periods (including the commencement dates thereof)
with respect to future offerings without stockholder approval, if such change
is announced prior to the scheduled beginning of the first Offering Period to
be affected thereafter.

 

 

5. PARTICIPATION.

     (a) An eligible Employee may become a participant in the Plan by
completing a subscription agreement authorizing payroll deductions in the form
provided by the Company and filing it with the Company payroll office prior to
the applicable Enrollment Date, unless a later time for filing the subscription
agreement is set for all eligible Employees with respect to such Offering
Period.

     (b) Payroll deductions for a participant shall commence with the first
payroll following the Enrollment Date and shall end on the last payroll for the
Offering Period to which the subscription agreement applies, unless sooner
terminated by the participant as provided in Section 10.

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 payday during all
subsequent Offering Periods commencing prior to November 15, 2000 in an amount
not exceeding 10%, and during all Offering Periods commencing on or after
November 15, 2000 in an amount not exceeding 15%, or such other rate as may be
determined from time to time by the Board, expressed as a whole percent, of the
Compensation which he or she receives on such payday during said Offering
Period and the aggregate of such deduction during the Offering Period shall not
exceed 10% or 15%, as applicable in accordance with the foregoing, of the
aggregate Compensation during such Offering Period.

     (b) All payroll deductions authorized by 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, or may decrease the rate of his or her payroll
deductions (but not below 1%) effective immediately or may increase (but not
above 10% and for Offering Periods commencing on or after November 15, 2000,
not above 15%) the rate of his payroll deductions effective as of the first
date of the next Purchase Period within such Offering Period by completing and
filing with the Company a new subscription agreement authorizing a change in
payroll deduction. The Board may, in its discretion, limit the number of
participation rate changes during any Offering Period. The change in rate
shall be effective as soon as administratively feasible following the Company’s
receipt of the new authorization. A participant’s subscription agreement shall
remain in effect for successive Offering Periods unless terminated as provided
in Section 10.

     (d) Notwithstanding the foregoing, to the extent necessary to comply with
Section 423(b)(8) of the Code and Section 3(b) of the Plan, a participant’s
payroll deductions may be automatically decreased to zero percent 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.

     (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 on 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 Employee.

7. GRANT OF OPTION. On each Enrollment 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 full shares of the Company’s
Common Stock determined by dividing such Employee’s payroll deductions
accumulated for that Exercise Date and retained in the Employee’s account as of
the Exercise Date by the applicable Purchase Price; provided that in no event
shall an Employee be permitted to purchase more than 1,000 shares in each
Purchase Period within Offering Periods commencing in the year 2003, provided
further that such purchase shall be subject to the limitations set forth in
Sections 3(b) and 13. The Board may, for future Offering Periods, increase or
decrease, in its absolute discretion, the maximum number of shares of the
Company’s Common Stock an Employee may purchase during each Purchase Period of
such Offering Period. Exercise of the option shall occur as provided in
Section 8, unless the participant has withdrawn pursuant to Section 10. The
option shall expire on the last day of the Offering Period.

8. EXERCISE OF OPTION.

     (a) Unless a participant withdraws from the Offering Period as provided in
Section 10, his or her option for the purchase of shares will be exercised
automatically on the Exercise Date, and the maximum number of full shares
subject to option will be purchased at the applicable Purchase Price with the
accumulated payroll deductions in his or her account. For this purpose, only
payroll deductions from payroll dates that are more than three business days
before an Exercise Date will be applied to the purchase of shares on that
Exercise Date. Payroll deductions from payroll dates that occur on an Exercise
Date or within three business days before an Exercise Date will be applied to
the purchase of shares on the next following Exercise Date. In any event, no
fractional shares will be purchased. Any payroll deductions accumulated in a
participant’s account that are not sufficient to purchase a full share or that
exceed the $25,000 cap described in Section 3 above will be refunded to the
participant following the purchase of shares, subject to earlier withdrawal by
the participant as provided in Section 10 or unless the Offering Period has
been over-subscribed, in which event such amount shall be refunded to the
participant. During his or her lifetime, a participant’s option to purchase
shares hereunder is exercisable only by the participant.

     (b) If the Board 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 Enrollment Date of the applicable Offering Period, or (ii) the number of
shares available for sale under the Plan on such Exercise Date, the Board may
in its sole discretion provide that the Company shall make a pro rata allocation
of the shares of Common Stock available for purchase on such Enrollment 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 (x) continue all Offering Periods then in effect, or (y) terminate any or
all Offering Periods then in effect pursuant to Section 20. The Company may
make pro rata allocation of the shares available on the Enrollment 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 stockholders subsequent to such Enrollment Date.

9. DELIVERY. As promptly as practicable after each Exercise Date on which a
purchase of shares occurs, the Company shall arrange for the shares purchased
upon exercise of his or her option to be electronically credited to the
participant’s brokerage account at the securities brokerage firms designated by
the Company for its direct deposit program from time to time.

10. WITHDRAWAL; TERMINATION OF EMPLOYMENT.

     (a) A participant may withdraw all, but not less than all, the payroll
deductions credited to his or her account and not yet used to exercise his or
her option under the Plan at any time by giving written notice to the Company
on a form provided for such purpose. All of the participant’s payroll
deductions credited to his or her account will be paid to the participant as
soon as practicable after receipt of the notice of withdrawal, his or her
option for the current Offering Period will be automatically canceled, and no
further payroll deductions for the purchase of shares will be made during such
Offering Period. If a participant withdraws from an Offering Period, payroll
deductions shall not resume at the beginning of the succeeding Offering Period
unless the participant delivers to the Company a new subscription agreement.

     (b) A participant’s withdrawal from an Offering Period will not have any
effect upon his or her eligibility to participate in a succeeding Offering
Period which begins after the end of the Offering Period from which the
participant withdraws or in any similar plan which may hereafter be adopted by
the Company.

11. TERMINATION OF EMPLOYMENT. Upon a participant’s ceasing to be an Employee
for any reason, including retirement or death, he or she will be deemed to have
elected to withdraw from the Plan and the payroll deductions accumulated in his
or her account during the Offering Period but not yet used to exercise the
option will be returned to him or her as soon as practicable after such
termination or, in the case of death, to the person or persons entitled thereto
under Section 15, and his or her option will be automatically terminated. The
preceding sentence notwithstanding, a participant who receives payment in lieu
of notice of termination of employment shall be treated as continuing to be an
Employee for the participant’s customary number of hours per week of employment
during the period in which the participant is subject to such payment in lieu
of notice. In the case of death of the participant, the payroll deductions
credited to the participant’s

 

 

account will be paid to the person or persons entitled thereto under paragraph 15, and such participant’s option will be
automatically terminated.

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, the maximum number of shares of the Company’s Common
Stock which shall be reserved for sale under the Plan shall be 60,314,110
shares, plus an annual increase to be added as of the first day of each fiscal
year by an amount equal to (x) 1.15% of the shares of the Company’s Common
Stock issued and outstanding on the last day of the immediately preceding
fiscal year less (y) the number of shares available for future option grants
under the Plan on the last day of the immediately preceding fiscal year, or a
lesser amount determined by the Board, but not to exceed 3,000,000 shares
(subject to any adjustment pursuant to Section 19) in any fiscal year.

     (b) The participant will have no interest or voting rights in shares
covered by his or her option until such option has been exercised.

     (c) Shares to be delivered to a participant under the Plan shall be
registered in the name of the participant or in the name of the participant and
his or her spouse.

14. ADMINISTRATION. The Plan shall be administered by the Board or a committee
of members of the Board appointed by the Board. The Board or its committee
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 Board or its committee 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 shares and/or cash, if any, from the participant’s account under the
Plan in the event of such participant’s death at a time when cash or shares are
held for his or her account. If the participant is married and the designated
beneficiary is not the spouse, spousal consent shall be required for such
designation to be effective.

     (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 in the
absence of a valid designation of a beneficiary who is living at the time of
such participant’s death, the Company shall deliver such shares and/or cash 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 shares and/or cash 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 reasonably designate.

 

 

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 in accordance with Section 10.

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.

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

19. ADJUSTMENTS UPON CHANGES IN CAPITALIZATION.

     (a) Changes in Capitalization. Subject to any required action by the
stockholders of the Company, the Reserves, the maximum number of shares each
participant may purchase each Purchase Period (under Section 7), as well as the
price per share and the number of shares of Common Stock covered by each option
under the Plan that 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 increase or
decrease 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 Board, 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 option.

     (b) Dissolution or Liquidation. In the event of the proposed dissolution
or liquidation of the Company, the Offering Period then in progress will be
shortened by setting a new Exercise Date (the “New Exercise Date”), and shall
terminate immediately prior to the consummation of such proposed dissolution or
liquidation, unless otherwise provided by the Board. The New Exercise Date
shall be before the date of the Company’s proposed dissolution or liquidation.
The Company shall notify each participant in writing at least ten 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.

 

 

     (c) Merger or Asset Sale. In the event of a proposed sale of all or
substantially all of the assets of the Company, or the merger of the Company
with or into another corporation, each option under the Plan shall be assumed or an equivalent option shall be substituted by
the successor corporation or a parent or Subsidiary of the successor
corporation. If 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 (the “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 sale or merger. The Company shall
notify each participant in writing 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 will 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.

The Board may, if it so determines in the exercise of its sole discretion, also
make provision for adjusting the Reserves, as well as the price per share of
Common Stock covered by each outstanding option, in the event that the Company
effects one or more reorganizations, recapitalizations, rights offerings or
other increases or reductions of shares of its outstanding Common Stock, and in
the event of the Company being consolidated with or merged into any other
corporation.

20. AMENDMENT OR TERMINATION.

     (a) The Board of Directors of the Company may at any time and for any
reason terminate or amend the Plan. Except as provided in Section 19, no such
termination will affect options previously granted, provided that an Offering
Period may be terminated by the Board on any Exercise Date if the Board
determines that the termination of the Offering Period or the Plan is in the
best interests of the Company and its stockholders. Except as provided in
Section 19 and this Section 20, 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 stockholder approval in such a manner and to
such a degree as required.

     (b) Without stockholder consent and without regard to whether any
participant rights may be considered to have been “adversely affected,” the
Board (or its committee) 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 Board determines in its sole discretion advisable which are consistent
with the Plan.

 

 

     (c) In the event the Board 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:

          (i) altering 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 the 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 in connection with the Plan shall be deemed to have been duly given
when received in the form specified by the Company at the location, or by the
person, designated by the Company for the receipt thereof. Notices given by
means of the Company’s intranet (Planet) or similar system will be deemed to be
written notices under the Plan.

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, if required by applicable
securities laws, the Company may require the participant for whose account the
option is being exercised to represent and warrant at the time of 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 of the Company or it is approved by the
stockholders. It shall continue in effect for a term of 10 years unless sooner
terminated under Section 20.

 

 

24. EMPLOYMENT RELATIONSHIP Nothing in the Plan shall be construed as creating
a contract for employment for any period or shall interfere with or limit in
any way the right of the Company or of any Subsidiary to terminate any
participant’s employment relationship at any time, with or without cause, nor
confer upon any participant any right to continue in the employ of the Company
or any Subsidiary.

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