EXHIBIT 4.3
APPLIED DIGITAL SOLUTIONS, INC.
1999 EMPLOYEES STOCK PURCHASE PLAN
(AS AMENDED THROUGH JUNE 8, 2002)
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TABLE OF CONTENTS
Page
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1. NAME AND
PURPOSE...........................................................1
1.1.
Name............................................................1
1.2. Purpose and
Construction........................................1
2. DEFINITION OF
TERMS........................................................1
2.1. General
Definitions.............................................1
2.1.1. Board................................................1
2.1.2. Code.................................................1
2.1.3. Company..............................................1
2.1.4. Committee............................................1
2.1.5. Common Stock.........................................1
2.1.6. Compensation.........................................1
2.1.7. Effective Date.......................................2
2.1.8. Employee.............................................2
2.1.9. Eligible Employee....................................2
2.1.10. Employer............................................2
2.1.11. Entry Date..........................................2
2.1.12. Exercise Date.......................................2
2.1.13. Fair Market Value...................................2
2.1.14. Offering............................................2
2.1.15. Offering Date.......................................2
2.1.16. Offering Period.....................................2
2.1.17. Option..............................................3
2.1.18. Parent..............................................3
2.1.19. Participant.........................................3
2.1.20. Plan................................................3
2.1.21. Share...............................................3
2.1.22. Subsidiary..........................................3
2.1.23. Termination Date....................................3
2.1.24. Participation Agreement.............................3
2.2. Other
Definitions...............................................3
3. SHARES TO BE
OFFERED.......................................................3
3.1. Number of
Shares................................................3
3.2.
Reusage.........................................................4
3.3.
Adjustments.....................................................4
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4.
ADMINISTRATION.............................................................4
4.1.
Committee.......................................................4
4.2.
Authority.......................................................4
4.3.
Determination...................................................4
4.4.
Delegation......................................................5
5. AMENDMENT AND
TERMINATION..................................................5
5.1. Power of
Board..................................................5
5.2.
Limitation......................................................5
5.3.
Term............................................................5
5.4.
Termination.....................................................5
5.5.
Effect..........................................................5
6.
OFFERINGS..................................................................5
6.1.
Offerings.......................................................5
6.2. Terms of
Offering...............................................5
7. GRANTS, PARTICIPATION AND
WITHDRAWAL.......................................6
7.1. Grant of
Options................................................6
7.2. Options Not
Transferable........................................7
7.3. Election to
Participate.........................................7
7.4. Method of Payment and Stock Purchase
Accounts...................7
7.5. Withdrawal from the
Plan........................................7
8. PURCHASE OF
STOCK..........................................................7
8.1. Exercise of
Option..............................................7
8.2. Allotment of
Shares.............................................7
8.3.
Rights on Retirement, Death or Termination of
Employment........8
8.4. Delivery of
Stock...............................................8
9. MISCELLANEOUS
PROVISIONS...................................................8
9.1. Underscored
References..........................................8
9.2. Number and
Gender...............................................8
9.3. Governing
Law...................................................8
9.4. Purchase for
Investment.........................................9
9.5. Restricted
Shares...............................................9
9.6. No Employment
Contract..........................................9
9.7.
Offset..........................................................9
9.8. No Effect on Other
Benefits.....................................9
9.9. Notice to
Company...............................................9
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APPLIED DIGITAL SOLUTIONS, INC.
1999 EMPLOYEES STOCK PURCHASE PLAN
(AS AMENDED THROUGH JUNE 8, 2002)
1. NAME AND PURPOSE.
1.1. Name.
The name of this Plan is the "Applied Digital Solutions, Inc.
1999 Employees Stock Purchase Plan".
1.2. Purpose and Construction.
The Company
has established this Plan to encourage and
facilitate the purchase of its Common Stock
by Eligible Employees.
This Plan is
intended to qualify as an "Employee
Stock Purchase Plan" under Section 423 of
the Code. Consequently, the provisions of this Plan shall be construed in a
manner consistent with the requirements
of Section 423 of the Code. Any term or
provision of this Plan which is
inconsistent
with the requirements of Section
423 of the Code shall be inapplicable.
2. DEFINITION OF TERMS.
2.1. General Definitions.
The following words and phrases, when used in the Plan, unless
otherwise specifically defined or unless
the context clearly otherwise requires,
shall have the following respective
meanings:
2.1.1. Board.
The Board of Directors of the Company.
2.1.2. Code.
The internal Revenue
Code of 1986, as
amended. Any
reference to the Code includes the regulations promulgated pursuant to
the Code.
2.1.3. Company.
Applied Digital
Solutions, Inc.
2.1.4. Committee.
The Committee described in Section y4.1.
2.1.5. Common Stock.
The Company's $.01 par value common stock.
2.1.6. Compensation.
The gross salary and
wages earned by an Employee for
services rendered to an Employer plus any other remuneration so earned
as the Committee shall determine.
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2.1.7. Effective Date.
The date the Plan is approved by the shareholders of
the Company which must
occur within one year before or after approval
by the Board. Any Offerings made prior to the approval by the
shareholders of the
Company and Options
granted under such
Offerings
shall be void if such approval is not obtained.
2.1.8. Employee.
A person employed by the Employer.
2.1.9. Eligible Employee.
With respect to each
Offering, an Employee who is
eligible to be
granted an Option under the terms of such
Offering.
Notwithstanding the
foregoing,
with respect to any Offering, all
Employees must
be Eligible Employees except Employees who may be
excluded under
Section 423(b)(4) of the Code. Unless otherwise
determined by the
Committee,
eligibility
for an Offering shall be
determined as of the
Offering Date.
For purposes of
determining
an
Employee's eligibility
under the Plan,
the Committee
shall have the
right to determine
that employment for an
entity which is acquired by
an Employer or whose assets are acquired by an Employer is
employment
by the Employer.
2.1.10. Employer.
With respect to each Offering, the Company and all of
its Parents and Subsidiaries whose Employees are eligible to be
granted
Options to purchase Common Stock in such Offering.
2.1.11. Entry Date.
The Offering Date and any other dates selected by the
Committee as of which an Eligible Employee may become a
Participant.
2.1.12. Exercise Date.
Each date on which an Option is exercised.
2.1.13. Fair Market Value.
The closing price of
Shares on the NASDAQ on a given
date or in the absence of sales on a given date, the closing price on
the NASDAQ on the last day on which a sale occurred prior to such
date.
2.1.14. Offering.
An offering
consisting
of grants of Options to
purchase Shares under the Plan.
2.1.15. Offering Date.
Each date selected by
the Committee for the
initial
granting of Options to purchase Shares in an Offering.
2.1.16. Offering Period.
With respect to each Offering, the period beginning
on the Offering Date and ending on the Termination Date.
2
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2.1.17. Option.
An option granted under the Plan to purchase Shares.
2.1.18. Parent.
Any corporation
(other
than the Company or a
Subsidiary) in an
unbroken chain of corporations ending with the
Company, if,
at the time of the grant of an Option, each of the
corporations (other than the Company) owns stock possessing 50% or
more
of the total combined
voting power of all classes of stock in
one of
the other corporations in such chain.
2.1.19. Participant.
An Eligible Employee
who has elected to
participate
in the Plan.
2.1.20. Plan.
The Applied Digital Solutions, Inc. 1999 Employee
Stock Purchase Plan and all amendments and supplements to it.
2.1.21.
Share.
A share of Common Stock.
2.1.22. Subsidiary.
Any corporation,
other than the Company, in an
unbroken chain of
corporations
beginning with the
Company if, at the
time of grant of an Option, each of the corporations, other than the
last corporation in
the unbroken chain,
owns stock possessing
50% or
more of the total combined voting power of all classes of
stock in one
of the other corporations in such chain.
2.1.23. Termination Date.
The date on which an Offering expires.
2.1.24. Participation Agreement.
The written agreement
pursuant to which an
Eligible
Employee becomes a
Participant and elects such matters provided for in
the Plan and as the Committee shall determine from time to
time.
2.2. Other Definitions.
In addition
to the above definitions, certain words and
phrases used in the Plan and in any
Offering may be defined in other portions of
the Plan or in such Offering.
3. SHARES TO BE OFFERED.
3.1. Number of Shares.
The number of Shares for which Options may be granted under
the Plan shall be 900,000 Shares. Such Shares may be authorized but unissued
Shares, Shares held in the treasury, or
both.
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3.2. Reusage.
If an Option expires or is terminated, surrendered or canceled
without having been fully exerc
