Document:

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                                                                   EXHIBIT 10.14

                        LICENSE AGREEMENT EXECUTION COPY

         THIS AGREEMENT, made effective as of the 3rd day of January, 2003, is
by and between APJeT, INC. a corporation of the State of Delaware, having an
office and place of business at 491 Bryce Ave, Suite 200, Los Alamos, NM 87544
("APJeT"), and ADVANCED ENERGY INDUSTRIES, INC. a corporation of the State of
Delaware, having an office and place of business at 1625 Sharp Point Dr., Fort
Collins, CO 80525 ("AE"); APJeT and AE being sometimes referred to collectively
as "the Parties" and individually as a "Party" to the Agreement:

                                   WITNESSETH:

         WHEREAS, APJeT owns an Exclusive License from the University of
California, License Agreement No. 00-41-00911, with the right to sublicense
United States Patents and Patent Applications defined in Appendix A, which
relates to Atmospheric Pressure Plasma Jet Technology; and

         WHEREAS, AE wishes to obtain, and APJeT is willing to grant, an
exclusive license under said Licensed Patents, and under Licensed Patent
Applications (as hereinafter further defined) in the Licensed Territory and
Licensed Field of Use (as also hereinafter defined);

         NOW, THEREFORE, in consideration of the mutual covenants contained
herein, the parties hereto agree as follows:

                             SECTION 1- DEFINITIONS

         As used in this Agreement, the following terms shall be deemed to have
the following meanings:

         1.1. "Licensed Patent Applications" shall mean (a) United States Patent
Applications defined in Appendix A (b) any and all continuations, divisions, and
continuations-in-part of such Application, whether related to such Application
directly or through one or more intervening applications; (c) any foreign
application for patent or utility model claiming priority in whole or in part
from any of the applications identified in subparagraphs (a) and (b) above; and
(d) any and all continuations, divisions, and continuations-in-part of any of
the applications identified in subparagraph (c) above, whether related to such
applications directly or through one or more intervening applications.

         1.2. "Licensed Patents" shall mean the United States Patents defined in
Appendix A and all corresponding Foreign Applications and Foreign Patents (a)
any and all patents and utility models issuing on or registered from any of the
Licensed Patent Applications; and (b) any and all reexaminations, reissues,
additions, or extensions of any of the patents or utility models identified in
subparagraph (a) above.

         1.3 "Patent Rights" shall mean the rights arising from the U.S. or
Foreign patents or applications, including any continuing applications,
divisionals, and reissues thereof; and the patents issuing on applications,
identified in Appendix A of the University of California License Agreement No.
00-41-00911, incorporated herein by reference

<PAGE>

         1.4. "Licensed Product", singular or plural, shall mean any Atmospheric
Pressure Plasma Jet Technology wherein the manufacture, use, offer for sale,
sale or importation of Atmospheric Pressure Plasma Jet Technology by AE would,
but for the rights and license granted herein, constitute an infringement of a
valid and enforceable claim of a subsisting Licensed Patent and shall not
include AE standard power delivery equipment (i.e., stand alone AE power
supplies and match networks) but includes power generation and delivery
equipment which is designed specifically as an integral and indivisible part of
the Atmospheric Pressure Plasma Jet Technology.

         1.5 "Licensed Method" shall mean any method, procedure or process whose
use, but for the license granted to AE, would constitute an infringement of a
subsisting claim of a patent or patent application identified in Appendix A.

         1.6 "Sales" shall mean disposing of a Licensed Product by sale, lease,
or other transaction for consideration or practicing a Licensed Method. Sales
occur when the licensee, affiliate or sublicensee of the AE receives
consideration for the disposition of the Licensed Product or practice of
Licensed Method, when Licensed Product is paid for or delivered to a third
person, whichever occurs first. Notwithstanding the above, a sale shall be
considered to be made within ninety (90) days of delivery to a third person.

         1.7. "Net Sales" shall mean the gross amounts for sales at sales price
by AE and its sub licensees, less the following deductions where applicable: (a)
Sales returns; (b) normal and customary allowances; (c) trade discounts; (d)
royalty discounts for sales to the U.S. Government calculated by the amount of
royalties that APJET would normally have had to pay for non-U.S. Government
sales; and (e) transportation charges, duties and tariffs and foreign government
or registration reporting, permitting or approval fees and costs, only if
separately stated on an invoice or other statement of account or occurrence; but
before the deduction of sales and excise taxes, cost of insurance, and agents'
commissions.

         1.8. An "Affiliate" of a Party shall mean a corporation or other entity
controlled by, controlling, or under common control with APJeT or AE. For the
purpose of this Agreement, "control" or "controlling" mean (a) the ownership,
directly or indirectly, of more than fifty percent (50%) of the voting stock or
analogous interest in such corporation or other entity; or (b) the existence of
any other relationship between APJeT or AE and such other corporation or entity
which results in effective managerial control by one over the other, regardless
of whether such control is continuously exercised.

         1.9. "Licensed Territory" shall mean the countries and jurisdictions,
including the United States of America and its territories and possessions, in
which APJeT now or in the future holds a valid and enforceable subsisting
Licensed Patent.

         1.10 "Licensed Field of Use shall mean all fields in which AE can
demonstrate that it is one of the top three leading vendors in market share in
each of such fields, as demonstrated by dollar volume of sales in the preceding
year, including but not limited to Semiconductor Processing, Data Storage
(including but not limited to magnetic and optical), Flat Panel and Electronic
Displays, and Architectural Glass, and in any other field mutually agreed upon
by AE and APJeT as contemplated in Section 4.1.

         1.11.    "Effective Date" shall mean the date first written above.

         1.12. "UC License" shall mean the Exclusive License APJeT has from the
University of California, License Agreement No. 00-41-00911, with the right to
sublicense United States Patents and Patent Applications defined in Appendix A,
which relates to Atmospheric Pressure Plasma Jet Technology.

<PAGE>

         1.13 "Deposition Precursor Technology" means compositions of matter
which may be deposited onto substrates using Deposition Plasma Jet Technology.

         1.14 "Deposition Process Technology" means processes for depositing
compositions of matter, including Deposition Precursor Technology, onto
substrates using Deposition Plasma Jet Technology.

         1.15 "Deposition Plasma Jet Technology" means apparatus operated at
substantially atmospheric pressure capable of depositing compositions of matter,
including Deposition Precursor Technology, onto substrates.

                          SECTION 2 - GRANT OF LICENSE

         2.1. Except as set forth in 2.6 below, and in accordance with and
subject to the terms of the UC License, APJeT hereby grants to AE and its
Affiliates, and AE hereby accepts, a sole and exclusive, worldwide,
royalty-bearing right and license under the Licensed Patent Applications and the
Licensed Patents (with the right to grant sublicenses, as limited below in
section 2.5) to make, have made, use, sell, offer for sale, lease and otherwise
dispose of Licensed Products in the Licensed Territory in the Licensed Field of
Use. AE accepts the terms and conditions required for sublicensees as outlined
in the UC License.

         2.2 AE hereby grants to APJeT and its Affiliates, and APJeT hereby
accepts a paid-up, royalty-free nonexclusive license in the Licensed Field of
Use to make, use, and sell, for experimental purposes only, prototype quantities
under the Licensed Patents and Licensed Patent Applications, any improvements or
other developments whether or not patentable, or patented in the Licensed
Product. AE will disclose all improvements or other developments under an
executed Confidentiality/Non-Disclosure Agreement.

         2.3 The U.S government has a nonexclusive, nontransferable,
irrevocable, paid-up license to practice or have practiced throughout the world,
for or on behalf of the U.S. Government, inventions covered by the Patent
Rights.

         2.4 Under 35 U.S.C. 203 the U.S. Department of Energy has the right to
require the Licensee to grant a nonexclusive, partially exclusive or exclusive
license under the Patent Rights in any Field of Use to a responsible applicant
or applicants in accordance with 48 CFR 27.304-1(g).

         2.5. APJeT hereby grants to AE and its Affiliates, and AE hereby
accepts, the right to grant sublicenses to others, contingent upon written
approval from APJeT, and also contingent upon acceptance by the prospective
sublicensee of all the terms and conditions required of sublicensees in the UC
License.

         2.6 The license granted to AE under 2.1 does not include (i) any right
or license under the Licensed Patent Applications and/or the Licensed Patents to
use Deposition Process Technology, any right to grant sublicenses to use
Deposition Process Technology, or any right to sue third-parties for
infringement of the Licensed Patent Applications and/or the Licensed Patents to
the extent that such infringement arises from use of Deposition Process
Technology by a third-party, or (ii) any right or license under the Licensed
Patent Applications and/or the Licensed Patents to make, have made, sell, use,
or import Deposition Precursor Technology, any right to grant sublicenses to
make, have made, sell, use, or import Deposition Precursor Technology, or any
right to sue third-parties for infringement of the Licensed Patent Applications
and/or the

<PAGE>

Licensed Patents to the extent that such infringement arises from the making,
selling, use, or importing of Deposition Precursor Technology by a third-party.
AE hereby acknowledges that APJET has exclusively licensed to Air Products and
Chemicals, Inc. ("Air Products") (and not AE): (i) all rights under the Licensed
Patent Applications and/or the Licensed Patents to use Deposition Process
Technology, including all rights to grant sublicenses to use Deposition Process
Technology, and (ii) all rights under the Licensed Patent Applications and/or
the Licensed Patents to make, have made, sell, use, or import Deposition
Precursor Technology, including all rights to grant sublicenses to make, have
made, sell, use, or import Deposition Precursor Technology.

                            ARTICLE 3 - IMPROVEMENTS

         3.1. Under an executed Confidentiality/Non-Disclosure Agreement, APJeT
agrees to keep AE regularly and fully informed about designs, applications, and
other developments relating to the Licensed Field of Use and the Licensed
Product which become available and which APJeT is not legally prevented from
communicating to AE.

         If APJeT, independently develops improvements in the Licensed Field of
Use or to the Licensed Products under this Agreement, whether or not patentable,
or patented, APJeT agrees to grant AE a license with no additional royalties
beyond those provided in Section 5.2, for AE to make, have made, use, and sell
any such improvements to the Licensed Product(s) in the Licensed Field of Use.
Notwithstanding anything herein to the contrary, APJeT shall have no obligation
to grant AE a license to any Foreground Technical Information or Foreground
Patent Rights owned by Air Products pursuant to Section 5.2 of the Collaboration
Agreement Between APJeT, Inc., and Air Products Chemicals, Inc., effective
December 16, 2002 (the "Collaboration Agreement.") For purposes of this section
3.1, the terms "Foreground Technical Information" and "Foreground Patent Rights"
shall have the meanings ascribed to such terms in the Collaboration Agreement.

                      ARTICLE 4 - MANUFACTURING AGREEMENT

         4.1. AE shall be the preferred supplier in the Licensed Field of Use.
AE may from time to time submit a proposal to APJet for a specific application
outside of the Licensed Field of Use. Other parties may also submit proposals to
APJet for specific applications outside of the Licensed Field of Use. In the
event there an overlap between two proposals or if APJet receives a proposal
only from a third party, AE will be given a single opportunity to supply an
equal or better business proposal to APJeT, however the terms of the third
party's proposal to APJet will not be released to AE. Such proposal by AE to
APJet in response to a proposal by a third party must include sufficient detail
to allow APJet to determine whether the proposal submitted by AE presents an
equal or better business opportunity for APJeT. AE must respond within 30
calendar days of notice from APJet of such a third party proposal if AE's
proposal is to be considered by APJeT. Similarly, APJet will have 30 calendar
days to evaluate a proposal initiated by AE and may either accept or reject the
AE proposal within that time. Evaluation of all such proposals outside of the
Licensed Field of Use will be done by the Board of Directors at APJeT.

<PAGE>

                              SECTION 5 - ROYALTIES

         5.1. In partial consideration for the rights and license granted to AE
under this Agreement, AE agrees to pay to APJeT a fee of One Million Five
Hundred Thousand Dollars ($1.5 Million), in three installments conditional upon
reaching mutually agreed upon milestones as identified in Appendix B. Included
in the fee above is One Hundred Five Thousand Dollars ($105,000.00) of which
APJeT shall pay to the University of California in royalty fees as required by
the UC License. APJeT shall meet all the milestones by the dates in column 5 of
Appendix B, entitled "APJeT Completion Obligation Date".

         5.2 Within the first six months of this Agreement, AE shall loan to
APJeT One Hundred Thousand Dollars ($100,000.00) worth of equipment in power
supplies, matchboxes, flow controllers, or z-scan units in any manner most
appropriate to AE. AE shall retain the entire title, right, and interest to all
equipment loaned to APJeT.

         5.3. In further consideration of the rights and license granted to AE
under this Agreement, AE agrees to pay to APJeT, as a periodic royalty, the
amount of 10 percent (10%) of its Net Sales of Licensed Products sold, leased or
otherwise disposed of by or for AE to a cumulative maximum of Five Million
Dollars ($5,000,000) of royalties paid; after Five Million Dollars ($5,000,000)
to Fifty Million Dollars ($50,000,000) of cumulative royalties paid, the
periodic royalty shall be the amount of 5 percent (5%) of its Net Sales of
Licensed Products sold, leased or otherwise disposed of by or for AE; after
Fifty Million Dollars ($50,000,000) of cumulative royalties paid the periodic
royalty shall be the amount of 2.5 percent (2.5%) of its Net Sales of Licensed
Products sold, leased or otherwise disposed of by or for AE. Such royalty shall
be paid by AE to APJeT within thirty (30) days after the end of each calendar
quarter during the term of this Agreement. Only one periodic royalty shall be
payable for sale, lease or other disposition of a Licensed Product even if the
Licensed Product is covered by more than one Licensed Patent or more than one
claim of any Licensed Patent. AE shall not pay any royalties on AE standard
power delivery equipment (i.e., stand alone AE power supplies and match
networks) in which no Licensed Product is incorporated or with which no Licensed
Product is included in the same chassis.

              SECTION 6 - RECORDS, REPORTS AND PAYMENT OF ROYALTIES

         6.1. AE shall maintain records in sufficient detail and, upon
reasonable notice, allow any independent certified public accounting firm of
nationally recognized standing, appointed by APJeT, and reasonably acceptable to
AE, to examine its consolidated books and records, and the books and records of
its Affiliates pertaining to the Licensed Products. Such examinations shall
occur only during business hours, and not more than once a year, and shall be
for the purpose of verifying the calculation of periodic royalties due under
this Agreement and to otherwise establish compliance with the terms of this
Agreement. A final such examination shall occur once during the year immediately
succeeding termination of this Agreement. The fees and expenses of the
accounting firm performing the examination shall be borne by APJeT, unless the
examination shows that royalties for any quarterly period were underpaid by 5%
or more, in which event the fees and expenses will be borne by AE. Unless
written objection is made by APJeT and delivered to AE within sixty (60) days
after completion of such examination, the calculation of royalties paid by AE
that were the subject of such examination shall be final and binding on the
Parties, except insofar as adjusted or corrected as a result of AE's regular
annual audit. Any information provided to APJeT or its accountants pursuant
hereto shall be treated as Confidential and Proprietary Information of AE to be
used only for the purpose of the examination in accordance with this paragraph
6.1.

         6.2. AE agrees to submit written reports to APJeT within ninety (90)
days after the last day of each full or partial calendar quarter during the term
of this Agreement, stating in each such report

<PAGE>

the Net Sales of AE or the absence of such sales, for the previous calendar
quarter for the sale, lease or other disposition of Licensed Products, and the
periodic royalty due thereon. The obligation to make royalty reports under this
Agreement shall begin with the calendar quarter in which AE first makes a sale
or other transfer of a Licensed Product subject to payment of royalty to APJeT,
and shall continue thereafter. AE shall accompany each report with payment of
the amount of royalties, if any, shown to be due by such report in accordance
with Sections 3 or 4 hereof. In addition, AE shall make a written report to
APJeT within ninety (90) days after the date of termination of this Agreement,
stating in such report the Net Sales of AE of any Licensed Products not
previously reported to APJeT and the periodic royalty due thereon, and shall
accompany such report with payment of the amount of royalties shown to be due
therein.

         6.3. Payment shall be made to APJeT at its offices at 491 Bryce Ave,
Suite 200, Los Alamos, NM 87544, or such banking institution as APJeT may direct
from time to time, in legal tender of the United States of America. In the event
periodic royalties must be converted from foreign currency into United States
Dollars, such conversion shall be calculated using the average exchange rate
published in The New York Times for the thirty (30) day period immediately
preceding payment.

                        SECTION 7 - TERM AND TERMINATION

         7.1. The rights and licenses granted under this Agreement shall
commence on the Effective Date. The first payment from AE to APJeT will be made
on Jan. 3, 2003.

         7.2. Unless this Agreement shall be terminated by either Party pursuant
to the provisions hereof, this Agreement shall remain in force and effect during
the pendency and until the expiration of the last-to-expire of the Licensed
Patents.

         7.3. APJeT shall have the right to terminate this Agreement on ninety
(90) days written notice to AE at any time on default by AE in the observance or
performance of any covenant, condition or terms herein required to be observed
and performed by AE. Termination under this paragraph 7.3 shall be effective at
the end of such notice period, provided that AE shall not have corrected such
default or embarked upon a course of action to correct such default and given
written confirmation of same to APJeT within such notice period.

         AE shall have the right to terminate this Agreement on ninety (90) days
written notice to APJeT at any time on default by APJeT in the observance or
performance of any covenant, condition or terms herein required to be observed
and performed by APJeT. Termination under this paragraph 7.3 shall be effective
at the end of such notice period, provided that APJeT shall not have corrected
such default or embarked upon a course of action to correct such default and
given written confirmation of same to AE within such notice period

         7.4. APJeT shall provide notice to AE of its intention to file a
voluntary petition in bankruptcy or, where known to APJeT, of another party's
intention to file an involuntary petition in bankruptcy for APJeT, said notice
to be received by AE at least thirty (30) days prior to filing such petition. AE
may terminate this License Agreement upon receipt of such notice at its sole
discretion. APJeT's failure to provide such notice to AE will be deemed a
material, pre-petition incurable breach of this License Agreement. The License
Agreement will terminate automatically on the date of a voluntary or involuntary
petition in bankruptcy whether or not notice has been given.

         7.5. Termination by AE or APJeT does not relieve AE of any obligation
or liability accrued by AE or its sublicensees prior to the effective date of
termination or affect any rights of APJeT arising under this License Agreement
prior to termination.

<PAGE>

                            SECTION 8 - ASSIGNABILITY

         8.1. This Agreement and the rights, licenses and obligations hereunder
may not be assigned by either Party without the express written consent of the
other Party, except as part of the sale of the assigning Party's business to
which the Licensed Patent Applications and Licensed Patents relate. This
Agreement shall be binding upon and inure to the benefit of the Parties hereto,
their permitted assigns, trustees or receivers in bankruptcy or successors by
merger, purchase of assets or otherwise.

                               SECTION 9 - NOTICE

         9.1. Any notice or communication required or permitted to be given by
either Party hereunder shall be in written form and shall be considered to be
sufficiently given if mailed by registered or certified mail or transmitted by
overnight courier, addressed to the parties hereto as follows:

       To APJeT:

           491 Bryce Avenue, Suite 200

           Los Alamos, New Mexico  87544

           Attention: President

           Telephone: (505) 672-3454

           Facsimile: (505) 672-3453

       To AE:

           Advanced Energy Industries, Inc.

           1625 Sharp Point Dr.

           Fort Collins, CO 80525

           Attention: Richard Scholl

           Telephone: (970) 407-6426

           Facsimile: (970) 407-5426

         9.2.     Such notices shall be effective upon receipt by the addressee.

                          SECTION 10 - CONTROLLING LAW

         10.1. The parties hereto agree that this Agreement shall be considered
to have been made in, and construed and interpreted in accordance with the
substantive laws of the State of Colorado of the United States of America.

<PAGE>

         SECTION 11 - WARRANTIES, PARTIES' RESPONSIBILITY, AND LIABILITY

         11.1.    APJeT represents and warrants that it is has the right to
grant the rights and licenses granted under this Agreement.

         11.2. Except as expressly provided herein, nothing contained in this
Agreement shall be construed as a grant of any right, by license or otherwise,
by either party to the other, under either Party's patent, patent application
(with the exception of the Licensed Patent Applications and Licensed Patents),
trademark, copyright, know-how, or other intellectual property rights.

         11.3.    Subject to APJeT meeting the milestones identified with the
"Second Closing" in Appendix B within the time period therein specified, AE
intends to diligently pursue commercialization of Licensed Products within the
Licensed Field of Use and use its best efforts to market Licensed Products. AE
has the unqualified right to reduce, suspend, or cease activities in the
marketing of some or all of the Licensed Products. However,

         (i)      if AE decides to cease activities for any specific field of
                  use or product area, it will promptly notify APJeT and will
                  release APJeT to grant an exclusive license to others in this
                  area;

         (ii)     if AE decides to suspend or reduce activities within the
                  Licensed Field Use for any specific application, it will
                  promptly notify APJeT of its intentions, and agrees to
                  consider releasing APJeT to grant nonexclusive licenses to
                  others; or

         (iii)    if in this latter case, APJeT requests that AE release its
                  rights so as to permit APJeT to grant an exclusive license to
                  others in these areas wherein AE has merely suspended or
                  reduced its activities, AE agrees to consider such a proposal
                  and not to unreasonably withhold such permission.

         (iv)     for specific programs that are agreed upon between AE and
                  APJet outside of the Licensed Field of Use and in accordance
                  with section 4.1, the terms of the specific proposal AE made
                  to APJet will govern the cancellation rights between the two
                  parties.

Nothing herein shall prevent AE from setting its own prices for Licensed
Products or determining AE's marketing policies and practices in its sole
discretion.

         11.4. If AE or APJeT receives notice of a claim or action by a third
party alleging infringement of such third party's rights in connection with the
manufacture, use or sale of a Licensed Product by AE or its Affiliates, AE shall
have the right to conduct the legal defense, and to enter into any disposition
with respect thereto, as AE in its sole discretion deems desirable. All costs of
AE's defense, including AE's attorneys' fees and court costs, and any damages
awarded or amounts paid in settlement in any such claim or action shall be the
sole responsibility of AE. APJeT shall reasonably cooperate with AE in its
defense of such infringement claim or action, provided AE shall reimburse APJeT
for reasonable out of pocket expenses, other than attorney's fees and expenses,
incurred by APJeT in providing such cooperation.

         11.5. AE shall have the sole right, but not the obligation, to take
measures to prevent the infringement by third-party infringers of any of the
Licensed Patents, whether by action, suit, proceeding or otherwise, and shall
pay the entire cost of pursuing such measure(s). AE shall have the sole right to
any proceeds from such measure(s); provided, however, that after a deduction by
AE of reasonable expenses incurred by AE in such action, suit, or proceeding,
and, if APJet joins in such action, suit or proceeding, payment to APJet of
reasonable expenses incurred by APJet in

<PAGE>
such action, suit or proceeding, AE shall pay to APJeT a royalty of the greater
of (i) ten percent (10%) of any amounts recovered, or (ii) the amount payable by
APJet to the University of California with respect to such action, suit or
proceeding under the UC License. In no case, however, shall the total royalty
paid by AE to APJeT be more than the recovery, less reasonable expenses incurred
in such action, suit or proceeding. APJeT shall, if requested, join as a party
to any such suit or settlement and shall agree to sign all necessary rightful
instruments, and do whatever else may be necessary to further the conduct of
such proceedings.

         11.6. In the event AE chooses not to take measures to prevent
infringement by any third-party infringer as permitted under paragraph 11.5
above, it shall so notify APJeT within 30 days after becoming aware of the
infringement. Thereafter, APJeT shall have the sole right, but not the
obligation, to take such measures against such third-party infringer. APJeT
shall have the sole right to any proceeds from such measures.

         11.7. Except as set forth above, neither AE nor APJeT shall have any
other responsibilities or obligations in connection with actions to enforce the
License Patents.

                           SECTION 12 - MISCELLANEOUS

         12.1. This Agreement shall be executed in two counterparts in the
English language and each such counterpart shall be deemed an original thereof.

         12.2. Upon the termination of this Agreement, AE shall have the right
to dispose of all Licensed Products then on hand, including work in process, and
to complete all orders for Licensed Products on hand as of the date it received
notice of termination, but periodic royalties which would otherwise be payable
pursuant to this Agreement had such termination not become effective shall be
paid with respect to all such Licensed Products when sold as though this
Agreement had not been terminated.

         12.3. Neither termination nor expiration of this Agreement shall
terminate AE's or AE's sublicensee's obligation to pay all periodic royalties
which shall then have accrued up to the date of such expiration or termination.
AE's obligation to report royalties due and submit its books and records for
inspection as provided in paragraph 4.1 hereof shall continue until AE's royalty
obligations shall have been fully determined and discharged by proper payment.

         12.4. APJeT shall promptly give notice to AE of and upon commencement
of any voluntary or involuntary bankruptcy proceeding involving APJeT as a
debtor.

                               SECTION 13 - WAIVER

         Failure by either Party to enforce any rights under this Agreement
shall not be construed as a waiver of such rights nor shall a waiver by either
Party in one or more instances be construed as constituting a continuing waiver
or as a waiver in other instances.

<PAGE>

                          SECTION 14 - ENTIRE AGREEMENT

         This Agreement constitutes the entire agreement between the Parties
concerning the subject matter hereof and supersedes all written and oral prior
agreements and understandings with respect thereto. No variation or modification
of the terms of this Agreement nor any waiver of any of the terms or provisions
hereof shall be valid unless in writing and signed by an authorized
representative of each Party.

                            SECTION 15 - SEVERABILITY

         This Agreement is subject to the restrictions, limitations, terms and
conditions of all applicable governmental regulations, approvals and clearances.
If any term or provision of this Agreement is held invalid, illegal or
unenforceable in any respect for any reason, that invalidity, illegality or
unenforceability shall not affect any other term or provision hereof, and this
Agreement shall be interpreted and construed as if such term or provision, to
the extent the same shall have been held to be invalid, illegal or
unenforceable, had never been contained herein.

         IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be
executed in duplicate by duly authorized officers effective on the date and year
first written above.

ADVANCED ENERGY INDUSTRIES, INC.       APJeT, INC.

By:                                    By:
   ------------------------------         --------------------------------------

Title:                                 Title:
      ---------------------------            -----------------------------------

<PAGE>

                           PAYMENT SCHEDULE MILESTONES

                               [Rev 5 - 11/11/02]

<TABLE>
<CAPTION>
                  Payment Amounts ($)        To be paid on         APJeT
                                                or after        completion                    Milestone(s)
                                                 (date)         obligation
                                                                  date**
                  APCI            AEI
------------------------------------------------------------------------------------------------------------------------------------
  <S>            <C>              <C>        <C>                <C>               <C>
   First         500,000                          upon                            -  Concurrent with signing  of:
  Closing           +             ---           signing                             -  Stock Purchase Agreement with APCI (Includes
                 100,000                                            n/a                Investor Rights Agreement and Stockholders
                 license                                                               Agreement)
                   fee                                                              -  Collaboration Agreement with APCI
                                                                                    -  License agreement with AEI

                   --           500,000         1/3/2003

   Second        450,000        500,000     1st Closing +      1st Closing +      -  An installed, staffed, and functioning
  Closing                                       6  mo.            12 mo.             laboratory.
                                                                                  -  Delivery and placement into operation of
                                                                                     at least one APJeT plasma jet into an
                                                                                     application (or delivery and operational
                                                                                     testing of several plasma jets into
                                                                                     applications) which project to create within
                                                                                     four years from date of first closing at
                                                                                     least one of the following:
                                                                                    -  annual sales of at least $30 million,
                                                                                       including AEI or other OEM equipment sales
                                                                                       on which APJeT would collect royalties
                                                                                       and/or create new licenses, or

                                                                                    -  at least $3 million per year revenue (or
                                                                                       licensing profit) directly to APJeT.

                                                                                     APJeT must provide evidence of compelling
                                                                                     economic driver(s) for application
                                                                                     acceptance in a discussion of these revenue
                                                                                     and market projections.

                                                                                  -  Business Plan completed for application
                                                                                     outside of s/c industry.

                                                                                  -  Technical assistance to APCI & AEI
                                                                                     underway for product development.
</TABLE>

Footnote:
  **  This is the  date  after  which  -- if the  milestones  are not met -- Air
Products' and Advanced Energy's obligation to further closings is terminated. If
milestones  are not met by the  'APJeT  Completion  Obligation Date',  then the
funding  parties  have sole  discretion  whether to proceed or not with  further
closings.

<PAGE>

<TABLE>
<CAPTION>
                   Payment Amount ($)        To be paid on         APJeT
                                                or after        completion                       Milestone(s)
                                                 (date)         obligation
                                                                  date**
                  APCI            AEI
   <S>           <C>            <C>          <C>               <C>                <C>
   Third         450,000        500,000      1st Closing +     1st Closing +      -  Verification of combined cumulative gross
   Closing                                       12 months         24 months         receipts from licenses, royalties, equipment
                                                                                     sales of $400,000 excluding (i.e., must be
                                                                                     beyond and in addition to):

                                                                                     i)    the initial commitment of $1.5
                                                                                           million from AEI, and

                                                                                     ii)   the initial $100,000 license
                                                                                           payment from Air Products.

                                                                                  -  Successful commissioning and operation of
                                                                                     the APJeT unit provided to Air Products
                                                                                     under the Collaboration Agreement signed in
                                                                                     conjunction with Stock Purchase Agreement.

                                                                                  -  Good faith negotiations or discussions
                                                                                     underway for production-scale field
                                                                                     examination ((beta) trial) in at least two
                                                                                     different applications.
</TABLE>

Footnote:
  **  This is the  date  after  which  -- if the  milestones  are not met -- Air
Products' and Advanced Energy's obligation to further closings is terminated. If
milestones  are not met by the  'APJeT  Completion  Obligation Date',  then the
funding  parties  have sole  discretion  whether to proceed or not with  further
closings.<PAGE>
                                                                EXHIBIT 10.17

                               LAND O'LAKES, INC.
                        RESTATED LONG TERM INCENTIVE PLAN

Land O'Lakes, Inc. (the "Company"), a Minnesota cooperative association, hereby
establishes the Land O'Lakes, Inc. Cooperative Value Incentive Plan (the "Plan")
in order to provide deferred compensation to certain key employees of the
Company effective January 1, 2001. The Company has determined that it is in its
interest to provide certain key employees with financial incentives to reward
the employees for their performance and to encourage long-term commitment to
employment with the Company. These financial incentive awards shall be
determined under the terms of this Plan.

                                   ARTICLE 1
                                   DEFINITIONS

         Section 1.1 Definitions. When used in this document with initial
capital letters, the following terms have the meanings indicated unless a
different meaning is plainly required by the context:

         "Board of Directors" or "Board" means the Board of Directors of the
Company.

         "Deferred Compensation Plan" means the Land O'Lakes, Inc. Non-Qualified
Deferred Compensation Plan.

         "Disability" means a medically determinable physical or mental
condition which is expected to result in death or to be of a long continued and
indefinite duration and which renders a Participant unable to engage in any
employment or occupation for remuneration for which the Participant is
reasonably qualified by reason of the Participant's training, education and
experience. The existence or nonexistence of such Disability shall be
established by the certificate of a medical doctor selected by or satisfactory
to the Company.

         "Economic Commitment" means a Participant's financial stake in the
Company as required under Section 3.6.

         "Executive Committee" means the Executive Committee of the Board, to
which the Board has delegated authority for administration of the Plan.

         "Incentive Award" means an award made by the Company to a Participant
under this Plan as described in Article 3.

         "Option" means an option to purchase Units as described in Section 3.1.

         "Participant" means any employee or individual described in Section
2.1.

         "Participant's Beneficiary" has the meaning set forth in Section 6.3.

         "Plan" means the Land O'Lakes, Inc. Cooperative Value Incentive Plan,
as set forth herein, including any amendments hereto, which is maintained by the
Company primarily for the purpose of providing financial incentives for certain
key employees.

         "Plan Year" means the given fiscal year of the Company for which
Incentive Awards are available. Specific Plan Years shall be designated by the
specific fiscal year in question.

<PAGE>

         "Retirement" means a voluntary termination of employment by a
Participant on or after the date that will enable the Participant to be eligible
to receive an "early" or "normal" retirement benefit under the Company's
Employee Retirement Plan.

         "Strike Price" means the price at which a Unit may be purchased as
provided in Section 3.4.

         "Unit" means a performance unit used to value contributions made, and
benefits received, by Participants under the Plan.

                                   ARTICLE 2
                                  PARTICIPATION

         Section 2.1 Eligibility. The employees of the Company who are eligible
to become Participants in the Plan are the Chief Executive Officer of the
Company, officers of the Company who have attained the level of a Vice President
or above, and any other employees of the Company who are designated by the Chief
Executive Officer as eligible to become Participants in the Plan. Persons who
are residents of California or any other state(s) determined by the Chief
Executive Officer (at his/her sole discretion), will not be eligible to
participate in the Plan.

                                   ARTICLE 3
                           NATURE OF INCENTIVE AWARDS

         Section 3.1 Description of Incentive Awards. Annual Incentive Awards
will be made in the form of an Option (an "Option") to purchase performance
Units ("Units") all as further provided in this Plan. In general, a Participant
will receive an Option to purchase a specified number of Units with respect to a
particular Plan Year. The Executive Committee shall be responsible for
determining the amount of the annual Incentive Award for the Chief Executive
Officer. The Chief Executive Officer shall be responsible for determining the
level and annual Incentive Award for all other Participants (including those new
employees of the Company who become Participants during a Plan Year). In
general, the number of Options available to a Participant each year as an
Incentive Award shall be within the following guidelines:

<TABLE>
<CAPTION>
             Level of Participant                    Incentive Award
             --------------------                    ---------------
<S>                                                  <C>
             Chief Executive Officer                 Amount determined by Executive Committee
             Level 1 Officer                         Options to Purchase up to 7,000 Units
             Level 2 Officer                         Options to Purchase up to 3,000 Units
             Level 3 Officer                         Options to Purchase up to 1,500 Units
             Level 4 Non-Officer                     Options to Purchase up to 1,500 Units
</TABLE>

Notwithstanding the foregoing, the Chief Executive Officer may make Incentive
Awards in excess of the amount set forth above. The Chief Executive Officer
shall report annually to the Executive Committee with regard to the
participating Participants and the Incentive Awards made to each Participant
under this Plan. The total of all Incentive Awards granted to Participants for a
given Plan Year shall not exceed Options to purchase 200,000 Units.

         Section 3.2 Vesting of Incentive Awards. The Options to purchase Units
granted under Section 3.1 shall vest over four (4) years with the first 25% of
the Options to be vested on December 31 of the Plan Year in which the Incentive
Award is made, and the remaining 75% of the Options vesting in 25% increments on
December 31 of the three (3) succeeding years. Notwithstanding the foregoing, in
the event a Participant's employment status with the Company changes, the
special vesting rules set forth in Article 5 shall apply.

                                       2
<PAGE>

         Section 3.3 Option Exercise Period. A Participant may exercise an
Option to purchase Units between the date the Option is vested and the March 31
following the ten (10) year anniversary date of the original grant of the
Incentive Award. The exercise of an Option to purchase Units must occur between
January 1 and March 31 of a given year. The Option may be exercised in whole or
in part. Options not exercised within the ten (10) year Option period shall
lapse and the Participant shall have no further rights with respect to lapsed
Options.

         Section 3.4 Valuation of Units. Units to be issued under the Plan shall
be initially valued as of December 31 of the year immediately preceding the year
for which the Incentive Award is granted. The initial valuation shall be used to
establish the price at which a Participant may exercise an Option to purchase
the Units (the "Strike Price"). The Strike Price shall be fixed at the time of
the Incentive Award, regardless of the date upon which the Option becomes vested
or is exercised by the Participant. The annual valuation of Units shall also be
used to establish the value of any Units to be redeemed that year, as further
provided in Articles 4 and 5. The valuation of Units shall be determined in
accordance with the following formula:

<TABLE>

<S>                                                           <C>
                           Enterprise Value:                  8 x 5-Year Average EBIT
                                                              (Earnings Before Interest and Taxes)

                           Less:                              5-Year Average Long-Term
                                                              Debt and Capital Securities

                           Plus:                              5-Year Average Cash to Members
                                                              (Patronage Plus Equity Redemption)

                           Equals:                            Total Equity Value

                           Divided By:                        10-Million

                           Equals:                            Value per Unit
</TABLE>

         Section 3.5 Purchase of Units.

                  (a) A Participant may exercise his or her Option to purchase
         Units by providing written notice to the Company on a form provided by
         the Company. The written notice shall specify the number of Units to be
         purchased by the Participant and the specific Options to which the
         Units relate. The notice of an exercise of an Option shall specify the
         manner in which the Participant elects to pay for the Units as further
         provided in Section 3.5(b). The notice must be received by the Company
         within the January 1 through March 31 exercise period set forth in
         Section 3.3.

                  (b) Upon exercising an Option to purchase Units, the
         Participant shall pay to the Company an amount equal to the Strike
         Price multiplied times the number of Units to be purchased. The total
         purchase price may be paid by the Participant to the Company through
         any one of, or a combination of, the following methods:

                           (i)      A Participant may pay in cash or other
                                    immediately available funds.

                           (ii)     A Participant may agree to reduce his/her
                                    deferred compensation account under the
                                    Deferred Compensation Plan. Such reductions
                                    shall first be taken from Participant's
                                    "mandatory deferrals" under the Deferred
                                    Compensation Plan and then from
                                    Participant's "elective deferrals" under the
                                    Deferred Compensation Plan.

                                       3
<PAGE>

                           (iii)    A Participant may utilize the appreciated
                                    value of Options to acquire Units for the
                                    Participant's account under the Plan. The
                                    value of the Units acquired will equal the
                                    appreciated value of the Options exchanged
                                    for the Units. It a Participant elects this
                                    method, the Participant will purchase Units
                                    by exchanging a selected number of Options
                                    for Units based on the following formula:

                                                  U = (1 - SP/V) x O

                                    Where:

                                    U = Number of Units that may be acquired
                                        with the number of Options exchanged
                                    V = The current value of a Unit
                                    O = The number of Options exchanged
                                    SP = The Strike Price of an Option

                                    Example 1: If a Participant holds 1,000
                                    vested Options having a Strike Price of $100
                                    per Unit and the current value of Units is
                                    $160 per Unit, the Participant may exchange
                                    1,000 Options with an appreciated value of
                                    $60,000 ($60 x 1,000 Options) to acquire 375
                                    Units having a value of $60,000 (375 x
                                    $160).

                                    Example 2: If a Participant holds 1,000
                                    vested Options having a Strike Price of $100
                                    per Unit and the current value of Units is
                                    $200 per Unit, the Participant may exchange
                                    1,000 Options with an appreciated value of
                                    $100,000 ($100 x 1,000 Options) to acquire
                                    500 Units having a value of $100,000 (500 x
                                    $200).

                  (c) At such time as a Participant exercises an Option to
         purchase Units, the Company shall establish an "account" under the Plan
         in the name of the Participant to reflect the number of Units held by
         such Participant.

         Section 3.6 Economic Commitment. Each Participant will be expected to
maintain a financial stake in the Company (the "Economic Commitment") in order
to receive the benefits associated with the appreciation of Units. A
Participant's Economic Commitment shall be accomplished by (i) the purchase of
Units, in which case the Economic Commitment shall be measured by the then
current value of Units owned by the Participant; or (ii) the appreciation in the
value of vested Options, in which case the Economic Commitment shall be measured
by the difference between the Strike Price of the vested Options and the current
value of the Units if the Options are exercised; or (iii) a combination of (i)
and (ii). A Participant will be expected to achieve the Economic Commitment
within seven (7) years of becoming a Participant in the Plan. The size of a
Participant's Economic Commitment will be commensurate with the Participant's
level within the Company (such level to be determined by the Chief Executive
Officer pursuant to Section 3.1) as provided in the following table:

<TABLE>
<CAPTION>
              Level of Participant              Economic Commitment
              --------------------              -------------------
<S>                                             <C>
              Chief Executive Officer           3 x Base Compensation
              Level 1 Officer                   2 x Base Compensation
              Level 2 and 3 Officers            1 x Base Compensation
              Level 4 Non-Officer               No expected Economic Commitment
</TABLE>

                                       4
<PAGE>

As a Participant moves from one level to another, the amount of the Economic
Commitment and the number of years in which it is to be achieved shall be
revised accordingly. Notwithstanding the obligation to maintain the Economic
Commitment, in the event a Participant's employment status changes, the
provisions set forth in Article 5 of the Plan shall define the rights of the
Participant with respect to participation in the Plan. If a Participant has not
achieved the Economic Commitment within the seven (7) year period, or does not
maintain the Economic Commitment thereafter, no further Incentive Awards shall
be made under this Plan until the Economic Commitment has been achieved.

                                   ARTICLE 4
                                  DISTRIBUTIONS

         Section 4.1 Voluntary Distributions. A Participant who remains an
employee of the Company may request a distribution from the Plan through the
redemption of Units owned by the Participant. A request for a distribution must
be made between January 1 and March 31 of a given year. The value of a Unit will
be determined at the time of redemption as described in Section 3.4. The actual
distribution to a Participant upon redemption shall be equal to the then current
value of a Unit multiplied by the number of Units to be redeemed. A request for
distribution must be made on forms to be provided by the Company and must
specify the specific Units to be redeemed. Until a Participant has achieved the
required Economic Commitment, the Participant may not redeem Units having a
value in excess of 50% of the appreciated value of the cumulative total of all
Units previously purchased by the Participant from the inception of the Plan. At
such time as a Participant has achieved the required Economic Commitment, a
Participant may redeem any Units in excess of the Economic Commitment.

         Section 4.2 Distribution Limitations.

                  (a) In the event that the Participant receives a distribution
         with respect to Units that were purchased through a reduction in the
         Participant's account under the Deferred Compensation Plan as provided
         in Section 3.5(b)(i) of this Plan, then upon such distribution the
         original purchase price for the Units will be recredited to the
         Participant's account under the Deferred Compensation Plan and the
         remaining value of the Units (the appreciation) shall be distributed in
         cash as provided in Section 4.3 of this Plan.

                  (b) In the event that the Participant receives a distribution
         with respect to Units that were purchased through an exchange of
         Options having an appreciated value as provided in Section 3.5(b)(ii)
         of this Plan, then upon such distribution the original purchase price
         for the Units will be retained in the Participant's account under this
         Plan and the remaining value of the Units (the appreciation) shall be
         distributed in cash as provided in Section 4.3 of this Plan. The
         portion of the value of the Units that is retained in a Participant's
         account under this paragraph shall be credited with a return that is
         equal to the return being earned by participants in the Deferred
         Compensation Plan.

         Section 4.3 Distribution Requirements.

                  (a) Subject to the limitations provided in Section 4.2,
         payment to or on behalf of a Participant with regard to a distribution
         under the Plan shall be made in a lump sum payment of cash. Upon
         payment, the Participant shall have no further interest in the Units
         that have been redeemed, and the Participant shall have no further
         right to any increase in the value of the Units.

                                       5
<PAGE>

                  (b) The Company shall have the right to deduct any federal or
         state taxes required by law to be withheld from all distributions made
         pursuant to the Plan.

                  (c) The payment by the Company to the Participant shall be
         made as soon as it is administratively feasible after a request for a
         distribution, unless Participant has made an election to defer such
         distribution under this Plan. If such an election has been made, no
         payment shall be made directly to the Participant, but the amount
         otherwise payable to the Participant shall be allocated to the Deferred
         Compensation Plan for the benefit of the Participant. A Participant's
         election under this subsection must be made at the time of, or prior
         to, the exercise of the Option to purchase the Units that are presently
         being redeemed. Further, in no event will any such election be
         effective if it precedes the Participant's termination of employment
         with the Company by less than one (1) year.

                  (d) Notwithstanding any other provision of the Plan to the
         contrary, if, at any time, a court or the Internal Revenue Service
         determines that an amount awarded under the Plan, but not yet
         distributed to a Participant, is includible in the gross income of a
         Participant and subject to tax, the Executive Committee may, in its
         sole discretion, permit a lump sum cash distribution of an amount equal
         to the amount determined to be included in the Participant's gross
         income. The number of Units held by a Participant shall be reduced on a
         "last in, first out" basis to the extent of any such distribution.

                                   ARTICLE 5
                           CHANGE IN EMPLOYMENT STATUS

         Section 5.1 Termination of Employment. In the event a Participant's
employment with the Company is terminated for any reason, except death,
Disability, or Retirement, the Participant shall cease to be a Participant in
the Plan as of the date of termination, except as otherwise provided in this
Section. Upon such termination of employment:

                  (a) Any Options of the Participant that are vested as of the
         date of termination of employment may be exercised no later than 45
         days following the date of termination. The Options shall be exercised
         as provided in Section 3.5 of the Plan.

                  (b) Any unvested Options held by the Participant shall be
         forfeited as of the date of the termination of employment.

                  (c) Any Units owned by the Participant (including those Units
         related to Options exercised following termination as provided above)
         must be redeemed by the Participant no later than 45 days following the
         date of termination. Any Units held by the Participant that are not
         redeemed as of such date will be redeemed by the Company effective as
         of such date. Any redemption shall be in accordance with the procedure
         set forth in Section 4.1. Upon redemption, the valuation of the Units
         and the distribution to the Participant shall occur as set forth in
         Sections 3.4, 4.2, and 4.3, respectively; provided, that, the value of
         the Units shall be determined as of December 31 of the year prior to
         the termination.

         Section 5.2 Retirement. In the event a Participant's employment with
the Company is terminated as a result of the Participant's Retirement, the
Participant shall cease to be a Participant in the Plan as of the date of
Retirement, except as otherwise provided in this Section. Upon such termination
of employment:

                                       6
<PAGE>

                  (a) Any Incentive Award made with respect to the year of
         Retirement shall be prorated to the Retirement date.

                  (b) In the event that a Participant's termination of
         employment results from "normal" Retirement it shall be the general
         rule that any unvested Options will be permitted to vest in the normal
         sequence; provided that, the vesting schedule shall be accelerated with
         respect to the final year of vesting such that all Options shall vest
         no later than December 31 of the third year following the award. In the
         event a Participant's termination of employment results from "early"
         Retirement, it shall be the general rule that the Participant will
         forfeit any unvested Options. Notwithstanding the foregoing, the Chief
         Executive Officer (or the Executive Committee in the case of the
         Retirement of the Chief Executive Officer) shall have the discretion to
         depart from the general rules, in such manner as may be determined in
         his/her sole discretion, to permit all or any portion of the unvested
         Options to vest in the normal sequence or to cause any unvested Options
         to be forfeited by the Participant.

                  (c) Any Options of the Participant that are vested as of the
         date of Retirement must be exercised on or before the third March 31
         following the date of Retirement; provided that, if the Retirement
         occurs between January 1 and March 31, the Options must be exercised on
         or before the fourth March 31 following the date of Retirement. Vested
         Options must be exercised within the period of January 1 through March
         31 of a given year as provided in Section 3.5.

                  (d) Any Units owned by the Participant (including those Units
         related to Options exercised following Retirement) must be redeemed by
         the Participant no later than the third March 31 following the date of
         Retirement; provided that, if the Retirement occurs between January 1
         and March 31, the Units must be redeemed on or before the fourth March
         31 following the date of Retirement. Any Units not redeemed by the
         Participant as of such date will be redeemed by the Company as of such
         date. Any redemption shall be in accordance with the procedure set
         forth in Section 4.1. Upon redemption, the valuation of the Units and
         the distribution to the Participant shall occur as set forth in
         Sections 3.4, 4.2, and 4.3, respectively.

         Section 5.3 Disability. In the event that a Participant's employment
status with the Company has changed as a result of Participant's Disability, the
Participant shall cease to be a Participant in the Plan as of the date of such
status change, except as otherwise provided in this Section. Upon such status
change:

                  (a) Any Incentive Award made with respect to the year of the
         status change shall be prorated.

                  (b) Any Options previously issued to the Participant shall
         vest in the normal sequence based upon the date upon which they were
         issued; provided that, the vesting schedule shall be accelerated with
         respect to the final year of vesting such that all Options shall vest
         no later than December 31 of the third year following the award.

                  (c) Any Options of the Participant must be exercised on or
         before the third March 31 following the date of the status change;
         provided that, if the Status Change occurs between January 1 and March
         31, the Options must be exercised on or before the fourth March 31
         following the date of the status change. Vested Options must be
         exercised within the period of January 1 through March 31 of a given
         year as provided in Section 3.5.

                                       7
<PAGE>

                  (d) Any Units owned by the Participant (including those Units
         related to Options exercised following the status change) must be
         redeemed by the Participant no later than the third March 31 following
         the date of the status change; provided that, if the status change
         occurs between January 1 and March 31, the Units must be redeemed on or
         before the fourth March 31 following the date of the status change. The
         Company will redeem any Units not redeemed by the Participant as of
         such date. Any redemption shall be in accordance with the procedure set
         forth in Section 4.1. Upon redemption, the valuation of the Units and
         the distribution to the Participant shall occur as set forth in
         Sections 3.4, 4.2, and 4.3, respectively.

                  (e) In the event the disabled Participant returns to work
         prior to the third March 31 following the change of employment status,
         the provisions of this Section 5.3 shall no longer apply and the
         Participant's participation in the Plan shall be restored to the
         predisability condition.

         Section 5.4 Death. In the event that a Participant's employment with
the Company is terminated as a result of the Participant's death, the
Participant shall cease to be a Participant in the Plan as of the date of death,
except as otherwise provided in this Section. Upon Participant's death:

                  (a) Any unvested Options held in the name of the deceased
         Participant shall be forfeited as of the date of death.

                  (b) Any Options of the deceased Participant that were vested
         as of the date of Participant's death must be exercised by
         Participant's Beneficiary on or before March 31 following the
         Participant's death. Vested Options must be exercised within the period
         of January 1 through March 31 of a given year as provided in Section
         3.5.

                  (c) Any Units owned by the deceased Participant (including
         those Units related to Options exercised by the Participant's
         Beneficiary following death) must be redeemed on behalf of the
         Participant no later than the March 31 following the date of death. Any
         Units not redeemed on behalf of the deceased Participant as of such
         date will be redeemed by the Company as of such date. Any redemption
         shall be in accordance with the procedure set forth in Section 4.1.
         Upon redemption, the valuation of the Units and the distribution to the
         Participant shall occur as set forth in Sections 3.4, 4.2, and 4.3,
         respectively.

                                   ARTICLE 6
                               NON-TRANSFERABILITY

         Section 6.1 Anti-alienation of Options and Units. Options granted to a
Participant and Units purchased by a Participant, and any rights and privileges
pertaining thereto, may not be anticipated, alienated, sold, transferred,
assigned, pledged, encumbered, or subjected to any charge or legal process; and
no interest or right to receive a benefit may be taken, either voluntarily or
involuntarily, for the satisfaction of the debts of, or other obligations or
claims against, such person or entity, including claims for alimony, support,
separate maintenance and claims in bankruptcy proceedings.

         Section 6.2 Incompetent Participants. If any Participant has been
declared incompetent and a conservator or other person legally charged with the
care of such Participant or of his or her estate has been appointed, any
distribution under the Plan to which the Participant is entitled shall be paid
to such conservator or other person legally charged with the care of the
Participant or his or her

                                       8
<PAGE>

estate. Except as provided above, when the Company has determined that a
Participant is unable to manage his or her affairs, the Company may provide for
such distribution or any part thereof to be made to any other person or
institution then contributing toward or providing for the care and maintenance
of such Participant. Any such distribution shall be a payment for the account of
such Participant and a complete discharge of any liability of the Company and
the Plan therefor.

         Section 6.3 Designated Beneficiary. In the event of a Participant's
death prior to the distribution of any amounts payable under the Plan, the
payment of any amounts on behalf of the Participant under the Plan shall be made
to the Participant's Beneficiary designated on a form provided to the
Participant by the Company (the "Participant's Beneficiary"). If no such
beneficiary has been designated, payments shall be made to the duly appointed
and qualified executor or other personal representative of the Participant to be
distributed in accordance with the Participant's will or applicable intestacy
law; or in the event that there shall be no such representative duly appointed
and qualified within six (6) months after the date of death of such deceased
Participant, then to such persons as, at the date of the Participant's death,
would be entitled to share in the distribution of such deceased Participant's
personal estate under the provisions of the applicable statute then in force
governing the descent of intestate property, in the proportions specified in
such statute.

                                   ARTICLE 7
                           ADMINISTRATION OF THE PLAN

         Section 7.1 Administrator. The administrator and named fiduciary of the
Plan shall be the Company.

         Section 7.2 Authority of Administrator. The Company shall have
authority, duty and power to interpret and construe the provisions of the Plan
as it deems appropriate, to temporarily suspend the Plan, to adopt, establish
and revise rules, procedures and regulations relating to the Plan, to determine
the conditions subject to which the value of any Incentive Awards that may be
made or payable, and to make any other determinations which it believes
necessary or advisable for the administration of the Plan. The Company shall
have the duty and responsibility of maintaining records, making the requisite
calculations and dispersing payments hereunder. The Company's determinations,
interpretations, regulations and calculations shall be final and binding on all
persons and parties concerned. The Chief Executive Officer of the Company shall
be the agent of the Plan for the service of legal process in accordance with
Section 502 of the Employee Retirement Income Security Act of 1974, as amended.

         Section 7.3 Operation of Plan. The Company shall be responsible for the
general operation and administration of the Plan and for carrying out the
provisions thereof. The Company shall be responsible for the expenses incurred
in the administration of the Plan. The Company shall also be responsible for
determining eligibility for payments and the amounts payable pursuant to the
Plan. The Company shall be entitled to rely conclusively upon all tables,
valuations, certificates, opinions and reports furnished by any actuary,
accountant, controller, counsel or other person employed or engaged by the
Company with respect to the Plan. The procedures for filing claims for payments
under the Plan are described below.

         Section 7.4 Claims Procedures.

                  (a) It is the intent of the Company to make distributions
         under the Plan without the Participant having to complete or submit any
         claims forms other than notices contemplated by the Plan. However, a
         Participant who believes he or she is entitled to a payment under the
         Plan may submit a claim for such payment in writing to the Company. Any
         claim must be made by the Participant or his or her beneficiary in
         writing and state

                                       9
<PAGE>

         the claimant's name and the nature of the payment to be made under the
         Plan on a form acceptable to the Company. If for any reason a claim
         under this Plan is denied by the Company, the Claims Manager shall
         deliver to the claimant a written explanation setting forth the
         specific reasons for the denial, specific references to the pertinent
         provisions under the Plan on which the denial is based, a description
         of any additional material or information necessary for the claimant to
         perfect the claim and an explanation of why such material or
         information is necessary, and information on the procedures to be
         followed by the claimant in obtaining a review of his or her claim, all
         written in a manner reasonably understandable to the claimant. For this
         purpose: (i) the claimant's claim shall be deemed to be filed when
         presented orally or in writing to the Claims Manager and (ii) the
         Claims Manager's explanation shall be in writing delivered to the
         claimant within 90 days of the date the claim is filed.

                  (b) The claimant shall have 60 days following his or her
         receipt of the denial of the claim to file with the Claims Manager a
         written request for review of the denial. For such review, the claimant
         or the claimant's representative may review pertinent documents and
         submit written issues and comments.

                  (c) The Claims Manager shall decide the issue on review and
         furnish the claimant with a copy within 60 days of receipt of the
         claimant's request for review of the claimant's claim. The decision on
         review shall be in writing and shall include specific reasons for the
         decision, written in a manner reasonably understandable to the
         claimant, as well as specific references to the pertinent provisions in
         the Plan on which the decision is based. If a copy of the decision is
         not so furnished to the claimant within such 60 days, the claim shall
         be deemed denied on review. In no event may a claimant commence legal
         action for benefits the claimant believes are due the claimant until
         the claimant has exhausted all of the remedies and procedures afforded
         the claimant by this Section 7.4.

                  (d) For claims procedures purposes, the "Claims Manager" shall
         be the Company.

         Section 7.5 Participant's Address. Each Participant shall keep the
Company informed of his or her current address and the current address of his or
her beneficiary. The Company shall not be obligated to search for any person. If
the location of a Participant is not made known to the Company within three (3)
years after the date on which payment of the Participant's benefits payable
under this Plan may be made, payment may be made as though the Participant had
died at the end of the three-year period. If, within one (1) additional year
after such three-year period has elapsed, or, within three (3) years after the
actual death of a Participant, the Company is unable to locate any designated
beneficiary of the Participant, then the Company shall have no further
obligation to pay any benefit hereunder to such Participant or designated
beneficiary and such benefits shall be irrevocably forfeited.

         Section 7.6 Liability. Notwithstanding any of the provisions of the
Plan to the contrary, neither the Company nor any individual acting as an
employee or agent of the Company shall be liable to any Participant or any other
person for any claim, loss, liability or expense incurred in connection with the
Plan, unless attributable to fraud or willful misconduct on the part of the
Company or any such employee or agent of the Company.

                                       10
<PAGE>

                                   ARTICLE 8
                            MISCELLANEOUS PROVISIONS

         Section 8.1 No Employment Rights. Neither the Plan nor any action taken
hereunder shall be construed as giving any employee any right to be retained in
the employ of the Company.

         Section 8.2 Unfunded and Unsecured. The Plan shall at all times be
considered entirely unfunded both for tax purposes and for purposes of Title I
of the Employee Retirement Income Security Act of 1974, as amended, and no
provision shall at any time be made with respect to segregating assets of the
Company for payment of any amounts hereunder. Any funds with respect to payment
to be made hereunder shall continue for all purposes to be part of the general
assets of the Company and available to the general creditors of the Company in
the event of the Company's bankruptcy (when the Company is involved in a pending
proceeding under the Federal Bankruptcy Code) or insolvency (when the Company is
unable to pay its debts as they mature). No Participant or any other person
shall have any interests in any particular assets of the Company by reason of
the right to receive a benefit under the Plan and to the extent the Participant
or any other person acquires a right to receive benefits under this Plan, such
right shall be no greater than the right of any general unsecured creditor of
the Company. The Plan constitutes a mere promise by the Company to make payments
to the Participants in the future. Nothing contained in the Plan shall
constitute a guaranty by the Company or any other person or entity that any
funds in any trust or the assets of the Company will be sufficient to pay any
benefit hereunder. Furthermore, no Participant shall have any right to a benefit
under the Plan except in accordance with the terms of the Plan.

         Section 8.3 Plan Provisions. Except when otherwise required by the
context, any singular terminology shall include the plural.

         Section 8.4 Severability. If a provision of the Plan shall be held to
be illegal or invalid, the illegality or invalidity shall not affect the
remaining parts of the Plan and the Plan shall be construed and enforced as if
the illegal or invalid provision had not been included.

         Section 8.5 Applicable Law. To the extent not preempted by the laws of
the United States, the laws of the State of Minnesota shall apply with respect
to this Plan.

         Section 8.6 Successor to Company. In the event there is a successor or
assignee to or of the Company, whether direct or indirect, by purchase, merger,
consolidation or otherwise, to all or substantially all (at least 85% of the
assets or the common stock) of the Company, the Company, in its sole discretion,
may either cash out or require such successor or assignee to assume and agree to
perform the Company's obligations under the Plan, in the same manner and to the
same extent that the Company would be required to perform if no such succession
or assignment had occurred or terminate the Plan pursuant to the provisions of
Article 10. If a successor or assignee assumes the Plan pursuant to this Section
8.6, the term "Company," as used in the Plan, shall mean the Company as
hereinbefore defined and any successor or assignee to the Company which by
reason hereof becomes bound by the terms and provisions of the Plan.

         Section 8.7 Authority of CEO. Except in cases where the
responsibilities are reserved to the Board or Executive Committee under this
Plan, the Chief Executive Officer of the Company (or his designee) may act on
behalf of the Company under this Plan.

                                       11
<PAGE>

                                    ARTICLE 9
                                    AMENDMENT

The Company reserves the power to alter, amend or wholly revise or terminate the
Plan at any time and from time to time by the action of the Board and the
interest of each Participant is subject to the powers so reserved. An amendment
shall be authorized by the Board or Executive Committee and shall be stated in
an instrument in writing signed in the name of the Company by a person or
persons authorized by the Board. After the instrument has been so executed, the
Plan shall be effectively amended in the manner therein set forth, and all
Participants shall be bound thereby. No amendment to the Plan may alter, impair,
or reduce the methodology for valuation of Incentive Awards (Options and Units)
of Participants that have been awarded under the Plan prior to the effective
date of such amendment without the written consent of the affected Participants.

                                   ARTICLE 10
                               TERMINATION OF PLAN

The Company may at any time terminate the Plan by action of the Board. No
further Incentive Awards will be granted after the date of termination of the
Plan. The Termination of the Plan shall not alter, impair, or reduce the
benefits of a Participant that have been awarded prior to the effective date of
such termination, without the written consent of the affected Participant.
Provided, however, upon termination of the Plan, the Company shall have the
option to redeem all outstanding interests of the Participants in the Plan. The
Company shall exercise such option by providing written notice to each
Participant. Upon providing such notice, all unvested Options outstanding under
the Plan shall immediately vest and each Participant shall have thirty (30) days
in which to exercise all, or a portion of, such Participant's outstanding
Options to purchase Units pursuant to the procedures set forth in Section 3.5.
The Participants shall forfeit any Options that are not exercised within such
thirty-day period. Thereafter, the Company shall redeem all outstanding Units
held by Participants (including those Units purchased by Participants within the
aforementioned thirty-day period) and the Participants shall have no further
rights or benefits under the Plan. The valuation of Units so redeemed and the
distribution to the Participants shall occur as set forth in Sections 3.4, 4.2,
and 4.3, respectively.

In Witness Whereof, this Restatement is effective as of ________, 2002.

                                               LAND O'LAKES

                                               BY:  ________________________

                                               TITLE: _______________________

                                       12

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