Document:

Exhibit 10.3

 

VARIAN MEDICAL SYSTEMS, INC.

EMPLOYEE STOCK PURCHASE PLAN

 

(Amended and restated to reflect the July 30, 2004 two-for-one
stock split)

 

 

TABLE OF CONTENTS

 

	
  Section 1

  	
  PURPOSE

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 2

  	
  DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  2.1

  	
  “1934 Act”

  	
   

  
	
   

  	
  2.2

  	
  “Board”

  	
   

  
	
   

  	
  2.3

  	
  “Code”

  	
   

  
	
   

  	
  2.4

  	
  “Committee”

  	
   

  
	
   

  	
  2.5

  	
  “Common Stock”

  	
   

  
	
   

  	
  2.6

  	
  “Company”

  	
   

  
	
   

  	
  2.7

  	
  “Compensation”

  	
   

  
	
   

  	
  2.8

  	
  “Eligible
  Employee”

  	
   

  
	
   

  	
  2.9

  	
  “Employee”

  	
   

  
	
   

  	
  2.10

  	
  “Employer” or “Employers”

  	
   

  
	
   

  	
  2.11

  	
  “Enrollment
  Date”

  	
   

  
	
   

  	
  2.12

  	
  “Grant Date”

  	
   

  
	
   

  	
  2.13

  	
  “Participant”

  	
   

  
	
   

  	
  2.14

  	
  “Plan”

  	
   

  
	
   

  	
  2.15

  	
  “Purchase Date”

  	
   

  
	
   

  	
  2.16

  	
  “Subsidiary”

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3

  	
  SHARES SUBJECT TO THE PLAN

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  3.1

  	
  Number
  Available.

  	
   

  
	
   

  	
  3.2

  	
  Adjustments.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 4

  	
  ENROLLMENT

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  4.1

  	
  Participation.

  	
   

  
	
   

  	
  4.2

  	
  Payroll Withholding.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 5

  	
  OPTIONS TO PURCHASE COMMON STOCK

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  5.1

  	
  Grant
  of Option.

  	
   

  
	
   

  	
  5.2

  	
  Duration of Option.

  	
   

  
	
   

  	
  5.3

  	
  Number of Shares Subject to Option.

  	
   

  
	
   

  	
  5.4

  	
  Other Terms and Conditions.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 6

  	
  PURCHASE OF SHARES

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  6.1

  	
  Exercise of Option.

  	
   

  
	
   

  	
  6.2

  	
  Delivery of Shares.

  	
   

  
	
   

  	
  6.3

  	
  Exhaustion of Shares.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 7

  	
  WITHDRAWAL

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  7.1

  	
  Withdrawal.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 8

  	
  CESSATION OF PARTICIPATION

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  8.1

  	
  Termination of Status as Eligible Employee.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 9

  	
  DESIGNATION OF BENEFICIARY

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  9.1

  	
  Designation.

  	
   

  

 

 

	
   

  	
  9.2

  	
  Changes.

  	
   

  
	
   

  	
  9.3

  	
  Failed Designations.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 10

  	
  ADMINISTRATION

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  10.1

  	
  Plan Administrator.

  	
   

  
	
   

  	
  10.2

  	
  Actions by Committee.

  	
   

  
	
   

  	
  10.3

  	
  Powers of Committee.

  	
   

  
	
   

  	
  10.4

  	
  Decisions of Committee.

  	
   

  
	
   

  	
  10.5

  	
  Administrative Expenses.

  	
   

  
	
   

  	
  10.6

  	
  Eligibility to Participate.

  	
   

  
	
   

  	
  10.7

  	
  Indemnification.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 11

  	
  AMENDMENT, TERMINATION, AND DURATION

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  11.1

  	
  Amendment, Suspension, or Termination.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 12

  	
  GENERAL PROVISIONS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  12.1

  	
  Participation by Subsidiaries.

  	
   

  
	
   

  	
  12.2

  	
  Inalienability

  	
   

  
	
   

  	
  12.3

  	
  Severability.

  	
   

  
	
   

  	
  12.4

  	
  Requirements of Law.

  	
   

  
	
   

  	
  12.5

  	
  Compliance with Rule 16b-3.

  	
   

  
	
   

  	
  12.6

  	
  No Enlargement of Employment Rights.

  	
   

  
	
   

  	
  12.7

  	
  Apportionment of Costs and Duties.

  	
   

  
	
   

  	
  12.8

  	
  Construction and Applicable Law.

  	
   

  
	
   

  	
  12.9

  	
  Captions.

  	
   

  
	
   

  	
  12.10

  	
  Duration

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXECUTION

  	
   

  	
   

  

 

II

 

VARIAN MEDICAL SYSTEMS, INC.

EMPLOYEE STOCK PURCHASE PLAN

(as amended and restated to reflect the July 30, 2004 two-for-one stock
split)

 

SECTION 1

PURPOSE

 

Varian Medical
Systems, Inc., a Delaware corporation has established the Varian Medical
Systems, Inc. Employee Stock Purchase Plan in order to provide eligible
employees of the Company and its participating Subsidiaries with the
opportunity to purchase Common Stock through payroll deductions.  The Plan as amended and restated effective
as of April 1, 2001, is intended to qualify as an employee stock purchase
plan under Section 423(b) of the Code.

 

SECTION 2

DEFINITIONS

 

2.1                                 “1934
Act” means the Securities Exchange Act of 1934, as amended.  Reference to a specific Section of the
1934 Act or regulation thereunder shall include such Section or
regulation, any valid regulation promulgated under such Section, and any
comparable provision of any future legislation or regulation amending,
supplementing or superseding such Section or regulation.

 

2.2                                 “Board”
means the Board of Directors of the Company.

 

2.3                                 “Code”
means the Internal Revenue Code of 1986, as amended.  Reference to a specific Section of the Code or regulation
thereunder shall include such Section or regulation, any valid regulation
promulgated under such Section, and any comparable provision of any future
legislation or regulation amending, supplementing or superseding such
Section or regulation.

 

2.4                                 “Committee”
shall mean the committee appointed by the Board to administer the Plan.  Any member of the Committee may resign at
any time by notice in writing mailed or delivered to the Secretary of the
Company.  As of the effective date of
the Plan, the Plan shall be administered by the Organization and Compensation Committee
of the Board.

 

2.5                                 “Common
Stock” means the common stock of the Company.

 

2.6                                 “Company”
means Varian Medical Systems, Inc., a Delaware corporation.

 

2.7                                 “Compensation”
means a Participant’s regular wages. 
The Committee, in its discretion, may (on a uniform and
nondiscriminatory basis) establish a different definition of Compensation prior
to an Enrollment Date for all options to be granted on such Enrollment Date.

 

2.8                                 “Eligible
Employee” means every Employee of an Employer, except (a) any Employee who
immediately after the grant of an option under the Plan, would own stock and/or
hold outstanding options to purchase stock possessing five percent (5%) or more
of the total combined voting power or value of all classes of stock of the
Company or of any Subsidiary

 

1

 

of the Company
(including stock attributed to such Employee pursuant to Section 424(d) of
the Code), or (b) as provided in the following sentence.  The Committee, in its discretion, from time
to time may, prior to an Enrollment Date for all options to be granted on such
Enrollment Date, determine (on a uniform and nondiscriminatory basis) that an
Employee or class of Employees shall not be an Eligible Employee.

 

2.9                                 “Employee”
means an individual who is a common-law employee of any Employer, whether such
employee is so employed at the time the Plan is adopted or becomes so employed
subsequent to the adoption of the Plan.

 

2.10                           “Employer”
or “Employers” means any one or all of the Company, and those
Subsidiaries which, with the consent of the Board, have adopted the Plan.

 

2.11                           “Enrollment
Date” means such dates as may be determined by the Committee (in its
discretion and on a uniform and nondiscriminatory basis) from time to time.

 

2.12                           “Grant
Date” means any date on which a Participant is granted an option under the
Plan.

 

2.13                           “Participant”
means an Eligible Employee who (a) has become a Participant in the Plan
pursuant to Section 4.1 and (b) has not ceased to be a Participant
pursuant to Section 8 or Section 9.

 

2.14                           “Plan”
means the Varian Medical Systems, Inc. Employee Stock Purchase Plan, as set
forth in this instrument and as hereafter amended from time to time.

 

2.15                           “Purchase
Date” means such dates as may be determined by the Committee (in its
discretion and on a uniform and nondiscriminatory basis) from time to time
prior to an Enrollment Date for all options to be granted on such Enrollment
Date.

 

2.16                           “Subsidiary”
means any corporation in an unbroken chain of corporations beginning with the
Company if each of the corporations other than the last corporation in the
unbroken chain then owns stock possessing fifty percent (50%) or more of the
total combined voting power of all classes of stock in one of the other
corporations in such chain.

 

SECTION 3

SHARES SUBJECT TO THE PLAN

 

3.1                                 Number
Available.  In addition to shares of
Common Stock previously reserved by the Company’s Board of Directors for sale
to participants pursuant to the Plan, beginning with the first fiscal year of
the Company beginning after the effective date of the amendment and restatement
of the Plan, 2,700,000 Shares or such lesser amount as determined by the Board
will be added to the Plan.  Shares sold
under the Plan may be newly issued shares or treasury shares.

 

3.2                                 Adjustments.  In the event of any reorganization,
recapitalization, stock split, reverse stock split, stock dividend, combination
of shares, merger, consolidation, offering of rights or other similar change in
the capital structure of the Company, the Board may make

 

2

 

such
adjustment, if any, as it deems appropriate in the number, kind and purchase
price of the shares available for purchase under the Plan and in the maximum
number of shares subject to any option under the Plan.

 

SECTION 4

ENROLLMENT

 

4.1                                 Participation.  Each Eligible Employee may elect to become a
Participant by enrolling or re-enrolling in the Plan effective as of any
Enrollment Date.  In order to enroll, an
Eligible Employee must complete, sign and submit to the Company an enrollment
form in such form, manner and by such deadline as may be specified by the
Committee from time to time (in its discretion and on a nondiscriminatory
basis).  Any Participant whose option
expires and who has not withdrawn from the Plan automatically will be
re-enrolled in the Plan on the Enrollment Date immediately following the
Purchase Date on which his or her option expires.

 

4.2                                 Payroll
Withholding.  On his or her
enrollment form, each Participant must elect to make Plan contributions via
payroll withholding from his or her Compensation.  Pursuant to such procedures as the Committee may specify from
time to time.  A Participant may elect
to have withholding equal to a whole percentage from 1% to 10% (or such lesser,
or greater, percentage that the Committee may establish from time to time for
all options to be granted on any Enrollment Date).  A Participant may elect to increase or decrease his or her rate
of payroll withholding by submitting a new enrollment form in accordance with
such procedures as may be established by the Committee from time to time.  A Participant may stop his or her payroll
withholding by submitting a new enrollment form in accordance with such procedures
as may be established by the Committee from time to time.  In order to be effective as of a specific
date, an enrollment form must be received by the Company no later than the
deadline specified by the Committee, in its discretion and on a nondiscriminatory
basis, from time to time.  Any
Participant who is automatically re-enrolled in the Plan will be deemed to have
elected to continue his or her contributions at the percentage last elected by
the Participant.

 

SECTION 5

OPTIONS TO PURCHASE COMMON STOCK

 

5.1                                 Grant
of Option.  On each Enrollment Date
on which the Participant enrolls or re-enrolls in the Plan, he or she shall be
granted an option to purchase shares of Common Stock.

 

5.2                                 Duration
of Option.  Each option granted
under the Plan shall expire upon the conclusion of the option’s offering period
which will end on the earliest to occur of (a) the completion of the purchase
of shares on the last Purchase Date occurring within 27 months of the Grant
Date of such option, (b) such shorter option period as may be established by
the Committee from time to time prior to an Enrollment Date for all options to
be granted on such Enrollment Date, or (c) the date on which the Participant
ceases to be such for any reason.  Until
otherwise determined by the Committee for all options to be granted on an
Enrollment Date, the period referred to in clause (b) in the preceding sentence
shall mean the period from the applicable Enrollment Date through the last
business day prior to the immediately following Enrollment Date.

 

3

 

5.3                                 Number
of Shares Subject to Option.  The
number of shares available for purchase by each Participant under the option
will be established by the Committee from time to time prior to an Enrollment
Date for all options to be granted on such Enrollment Date.

 

5.4                                 Other
Terms and Conditions.  Each option
shall be subject to the following additional terms and conditions:

 

(a)                                  payment
for shares purchased under the option shall be made only through payroll
withholding under Section 4.2;

 

(b)                                 purchase
of shares upon exercise of the option will be accomplished only in accordance
with Section 6.1;

 

(c)                                  the
price per share under the option will be determined as provided in
Section 6.1; and

 

(d)                                 the
option in all respects shall be subject to such other terms and conditions
(applied on a uniform and nondiscriminatory basis), as the Committee shall
determine from time to time in its discretion.

 

SECTION 6

PURCHASE OF SHARES

 

6.1                                 Exercise
of Option.  Subject to
Section 6.2, on each Purchase Date, the funds then credited to each
Participant’s account shall be used to purchase whole shares of Common
Stock.  Any cash remaining after whole
shares of Common Stock have been purchased shall be carried forward in the
Participant’s account for the purchase of shares on the next Purchase
Date.  The price per Share of the Shares
purchased under any option granted under the Plan shall be eighty-five percent
(85%) of the lower of:

 

(a)                                  the
closing price per Share on the New York Stock Exchange as reported in the
Western Edition of The Wall Street Journal
on the Grant Date for such option; or

 

(b)                                 the
closing price per Share on the New York Stock Exchange as reported in the
Western Edition of The Wall Street Journal
on the Purchase Date.

 

6.2                                 Delivery
of Shares.  As directed by the
Committee in its sole discretion, shares purchased on any Purchase Date shall
be delivered directly to the Participant or to a custodian or broker (if any)
designated by the Committee to hold shares for the benefit of the Participants.  As determined by the Committee from time to
time, such shares shall be delivered as physical certificates or by means of a
book entry system.

 

6.3                                 Exhaustion
of Shares.  If at any time the
shares available under the Plan are over-enrolled, enrollments shall be reduced
proportionately to eliminate the over-enrollment. Such reduction method shall
be “bottom up,” with the result that all option exercises for one share shall
be satisfied first, followed by all exercises for two shares, and so on, until
all available shares have been exhausted. 
Any funds that, due to over-enrollment, cannot be applied to the
purchase of whole shares shall be refunded to the Participants (without
interest thereon).

 

4

 

SECTION 7

WITHDRAWAL

 

7.1                                 Withdrawal.  A Participant may withdraw from the Plan by
submitting a completed Employee Stock Purchase Plan Authorization form to the
Company.  A withdrawal will be effective
only if it is received by the Company by the deadline specified by the
Committee (in its discretion and on a uniform and nondiscriminatory basis) from
time to time.  When a withdrawal becomes
effective, the Participant’s payroll contributions shall cease and all amounts
then credited to the Participant’s account shall be distributed to him or her
(without interest thereon).

 

SECTION 8

CESSATION OF PARTICIPATION

 

8.1                                 Termination
of Status as Eligible Employee.  A
Participant shall cease to be a Participant immediately upon the cessation of
his or her status as an Eligible Employee (for example, because of his or her
termination of employment from all Employers for any reason).  As soon as practicable after such cessation,
the Participant’s payroll contributions shall cease and all amounts then
credited to the Participant’s account shall be distributed to him or her
(without interest thereon).  If a
Participant is on a Company-approved leave of absence, his or her participation
in the Plan shall continue for so long as he or she remains an Eligible
Employee and has not withdrawn from the Plan pursuant to Section 7.1.

 

SECTION 9

DESIGNATION OF BENEFICIARY

 

9.1                                 Designation.  Each Participant may, pursuant to such
uniform and nondiscriminatory procedures as the Committee may specify from time
to time, designate one or more Beneficiaries to receive any amounts credited to
the Participant’s account at the time of his or her death.  Notwithstanding any contrary provision of
this Section 9, Sections 9.1 and 9.2 shall be operative only after (and
for so long as) the Committee determines (on a uniform and nondiscriminatory
basis) to permit the designation of Beneficiaries.

 

9.2                                 Changes.  A Participant may designate different
Beneficiaries (or may revoke a prior Beneficiary designation) at any time by
delivering a new designation (or revocation of a prior designation) in like
manner.  Any designation or revocation
shall be effective only if it is received by the Committee.  However, when so received, the designation
or revocation shall be effective as of the date the designation or revocation
is executed (whether or not the Participant still is living), but without
prejudice to the Committee on account of any payment made before the change is
recorded.  The last effective
designation received by the Committee shall supersede all prior designations.

 

9.3                                 Failed
Designations.  If a Participant dies
without having effectively designated a Beneficiary, or if no Beneficiary
survives the Participant, the Participant’s Account shall be payable to his or
her estate.

 

5

 

SECTION 10

ADMINISTRATION

 

10.1                           Plan
Administrator.  The Plan shall be
administered by the Committee.  The
Committee shall have the authority to control and manage the operation and
administration of the Plan.

 

10.2                           Actions
by Committee.  Each decision of a
majority of the members of the Committee then in office shall constitute the
final and binding act of the Committee. 
The Committee may act with or without a meeting being called or held and
shall keep minutes of all meetings held and a record of all actions taken by
written consent.

 

10.3                           Powers
of Committee.  The Committee shall
have all powers and discretion necessary or appropriate to supervise the
administration of the Plan and to control its operation in accordance with its
terms, including, but not by way of limitation, the following discretionary
powers:

 

(a)                                  To
interpret and determine the meaning and validity of the provisions of the Plan
and the options and to determine any question arising under, or in connection
with, the administration, operation or validity of the Plan or the options;

 

(b)                                 To
determine any and all considerations affecting the eligibility of any employee
to become a Participant or to remain a Participant in the Plan;

 

(c)                                  To
cause an account or accounts to be maintained for each Participant;

 

(d)                                 To
determine the time or times when, and the number of shares for which, options
shall be granted;

 

(e)                                  To
establish and revise an accounting method or formula for the Plan;

 

(f)                                    To
designate a custodian or broker to receive shares purchased under the Plan and
to determine the manner and form in which shares are to be delivered to the
designated custodian or broker;

 

(g)                                 To
determine the status and rights of Participants and their Beneficiaries or
estates;

 

(h)                                 To
employ such brokers, counsel, agents and advisers, and to obtain such broker,
legal, clerical and other services, as it may deem necessary or appropriate in
carrying out the provisions of the Plan;

 

(i)                                     To
establish, from time to time, rules for the performance of its powers and
duties and for the administration of the Plan;

 

(j)                                     To
adopt such procedures and subplans as are necessary or appropriate to permit
participation in the Plan by employees who are foreign nationals or employed
outside of the United States;

 

6

 

(k)                                  To
delegate to any one or more of its members or to any other person, severally or
jointly, the authority to perform for and on behalf of the Committee one or
more of the functions of the Committee under the Plan.

 

10.4                           Decisions
of Committee.  All actions,
interpretations, and decisions of the Committee shall be conclusive and binding
on all persons, and shall be given the maximum possible deference allowed by
law.

 

10.5                           Administrative
Expenses.  All expenses incurred in
the administration of the Plan by the Committee, or otherwise, including legal
fees and expenses, shall be paid and borne by the Employers, except any stamp
duties or transfer taxes applicable to the purchase of shares may be charged to
the account of each Participant.  Any
brokerage fees for the purchase of shares by a Participant, fees and taxes
(including brokerage fees) for the transfer, sale or resale of shares by a
Participant, or the issuance of physical share certificates, shall be borne
solely by the Participant.

 

10.6                           Eligibility
to Participate.  No member of the
Committee who is also an employee of an Employer shall be excluded from
participating in the Plan if otherwise eligible, but he or she shall not be
entitled, as a member of the Committee, to act or pass upon any matters
pertaining specifically to his or her own account under the Plan.

 

10.7                           Indemnification.  Each of the Employers shall, and hereby
does, indemnify and hold harmless the members of the Committee and the Board,
from and against any and all losses, claims, damages or liabilities (including
attorneys’ fees and amounts paid, with the approval of the Board, in settlement
of any claim) arising out of or resulting from the implementation of a duty,
act or decision with respect to the Plan, so long as such duty, act or decision
does not involve gross negligence or willful misconduct on the part of any such
individual.

 

SECTION 11

AMENDMENT, TERMINATION, AND DURATION

 

11.1                           Amendment,
Suspension, or Termination.  The
Board, in its sole discretion, may amend, suspend or terminate the Plan, or any
part thereof, at any time and for any reason. 
If the Plan is terminated, the Board, in its discretion, may elect to
terminate all outstanding options either immediately or upon completion of the
purchase of shares on the next Purchase Date, or may elect to permit options to
expire in accordance with their terms (and participation to continue through
such expiration dates).  If the options
are terminated prior to expiration, all amounts then credited to Participants’
accounts which have not been used to purchase shares shall be returned to the
Participants (without interest thereon) as soon as administratively
practicable.

 

SECTION 12

GENERAL PROVISIONS

 

12.1                           Participation
by Subsidiaries.  One or more
Subsidiaries of the Company may become participating Employers by adopting the
Plan and obtaining approval for such adoption from the Board.  By adopting the Plan, a Subsidiary shall be
deemed to agree to all of

 

7

 

its terms,
including (but not limited to) the provisions granting exclusive authority (a)
to the Board to amend the Plan, and (b) to the Committee to administer and
interpret the Plan.  An Employer may
terminate its participation in the Plan at any time.  The liabilities incurred under the Plan to the Participants
employed by each Employer shall be solely the liabilities of that Employer, and
no other Employer shall be liable for benefits accrued by a Participant during
any period when he or she was not employed by such Employer.

 

12.2                           Inalienability  In no event may either a Participant, a
former Participant or his or her Beneficiary, spouse or estate sell, transfer,
anticipate, assign, hypothecate, or otherwise dispose of any right or interest
under the Plan; and such rights and interests shall not at any time be subject
to the claims of creditors nor be liable to attachment, execution or other
legal process.  Accordingly, for example,
a Participant’s interest in the Plan is not transferable pursuant to a domestic
relations order.

 

12.3                           Severability.  In the event any provision of the Plan shall
be held illegal or invalid for any reason, 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.

 

12.4                           Requirements
of Law.  The granting of options and
the issuance of shares shall be subject to all applicable laws, rules, and
regulations, and to such approvals by any governmental agencies or securities
exchanges as the Committee may determine are necessary or appropriate.

 

12.5                           Compliance
with Rule 16b-3.  Any transactions
under this Plan with respect to officers (as defined in Rule 16a-1 promulgated
under the 1934 Act) are intended to comply with all applicable conditions of
Rule 16b-3.  To the extent any provision
of the Plan or action by the Committee fails to so comply, it shall be deemed
null and void, to the extent permitted by law and deemed advisable by the
Committee.  Notwithstanding any contrary
provision of the Plan, if the Committee specifically determines that compliance
with Rule 16b-3 no longer is required, all references in the Plan to Rule 16b-3
shall be null and void.

 

12.6                           No
Enlargement of Employment Rights. 
Neither the establishment or maintenance of the Plan, the granting of
options, the purchase of shares, nor any action of any Employer or the
Committee, shall be held or construed to confer upon any individual any right
to be continued as an employee of the Employer nor, upon dismissal, any right
or interest in any specific assets of the Employers other than as provided in
the Plan.  Each Employer expressly
reserves the right to discharge any employee at any time, with or without
cause.

 

12.7                           Apportionment
of Costs and Duties.  All acts
required of the Employers under the Plan may be performed by the Company for
itself and its Subsidiaries, and the costs of the Plan may be equitably
apportioned by the Committee among the Company and the other Employers.  Whenever an Employer is permitted or
required under the terms of the Plan to do or perform any act, matter or thing,
it shall be done and performed by any officer or employee of the Employers who
is thereunto duly authorized by the Employers.

 

8

 

12.8                           Construction
and Applicable Law.  The Plan is
intended to qualify as an “employee stock purchase plan” within the meaning of
Section 423(b) of the Code.  Any
provision of the Plan which is inconsistent with Section 423(b) of the
Code shall, without further act or amendment by the Company or the Committee,
be reformed to comply with the requirements of Section 423(b).  The provisions of the Plan shall be
construed, administered and enforced in accordance with such Section and
with the laws of the State of California (excluding California’s conflict of
laws provisions).

 

12.9                           Captions.  The captions contained in and the table of
contents prefixed to the Plan are inserted only as a matter of convenience, and
in no way define, limit, enlarge or describe the scope or intent of the Plan
nor in any way shall affect the construction of any provision of the Plan.

 

12.10                     Duration.  The Plan commenced on April 1, 2001,
and subject to Section ll.1 (regarding the Board’s right to amend, suspend
or terminate the Plan), shall remain in effect for ten (10) years thereafter.

 

EXECUTION

 

IN WITNESS
WHEREOF, Varian Medical Systems, Inc., by its duly authorized officer, has
executed this Plan.

 

 

	
   

  	
  VARIAN MEDICAL SYSTEMS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:  July 30, 2004

  	
  By 

  	
  /s/ Joseph B. Phair

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Joseph B.
  Phair

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President, Administration,

  General Counsel & Secretary

  	
   

  
						

 

9EXHIBIT
10.35

 

SECOND AMENDMENT TO CREDIT AGREEMENT

 

This SECOND AMENDMENT TO
CREDIT AGREEMENT dated this 28th day of June, 2004 (this “Amendment”),
is made by and among UFP Technologies, Inc., a Delaware corporation, Moulded
Fibre Technology, Inc., a Maine corporation, Simco Industries, Inc., a Michigan
corporation, and Simco Automotive Trim, Inc., a Michigan corporation
(collectively, the “Borrowers”), and Fleet Capital Corporation (the “Lender”).

 

WHEREAS, the Borrowers
and the Lender are parties to a Credit and Security Agreement dated as of
February 28, 2003, as amended by that certain First Amendment to Credit
Agreement dated as of March 24, 2004 (as further amended, modified,
restated and supplemented, the “Credit Agreement”); and

 

WHEREAS, the Borrowers
and the Lender desire to amend certain provisions of the Credit Agreement, all
subject to the terms, conditions and limitations set forth herein;

 

NOW, THEREFORE, in
consideration of the foregoing and the agreements contained herein, the parties
hereby agree as follows:

 

1.             Capitalized Terms.

 

Capitalized terms used
herein which are defined in the Credit Agreement have the same meanings herein
as therein, except to the extent that such meanings are amended hereby.

 

2.             Amendments.  Subject to the satisfaction of the terms and
conditions set forth in Section 6 hereof, the Borrowers and the Lender
agree that the Credit Agreement is hereby amended, effective as of the date of
this Amendment, as follows:

 

(a)           Amendments
to Section 1.1 of the Credit Agreement.

 

(i)            Section 1.1 of the Credit Agreement
is amended by the addition thereto, in appropriate alphabetical order, of the
following definitions:

 

“‘Forming Equipment’
means the equipment and machinery to be purchased from R+S Technik GmbH by the
Borrowers using the proceeds of the Forming Equipment Term Loan pursuant to
Purchase Order Number 790249, and
constituting Forming Line Number lines 1
through 17.

 

“‘Forming Equipment
Term Loan’ means the $1,500,000 Forming Equipment Term Loan to be made by
the Lender as provided in Section 2.2A(a).”

 

“‘Forming Equipment
Term Loan Funding Date’ means the date upon which all of the conditions set
forth in Section 5 of the Second Amendment are satisfied, or are waived by
the Lender in accordance with Section 10.2 of this Agreement.”

 

“‘Forming Equipment
Term Loan Maturity Date’ means June 30, 2010, or such earlier date as
provided in Section 2.7 or Section 9.1.”

 

 

“‘Forming Equipment
Term Note’ means the promissory note, substantially in the form of Exhibit
A-4 annexed hereto, issued by the Borrowers in favor of the Lender and
evidencing the Forming Equipment Term Loan.”

 

“‘Second Amendment’
means the Second Amendment to Credit Agreement dated as of June 28th,
2004 among the Borrowers and the Lender.”

 

“‘Second Amendment
Effective Date’ means the date upon which all of the conditions set forth
in Section 4 of the Second Amendment are satisfied, or are waived by the
Lender in accordance with Section 10.2 of this Agreement.”

 

(ii)           Section 1.1 of the Credit Agreement
is amended by deleting the definitions of “Borrowing Base,” “Loan Documents,”
“Loans,” “Non-Financed Capital Expenditures,” “Post-Default Rate” and “Term
Loans” in their entirety and replacing them with the following new definitions:

 

“‘Borrowing
Base’ means, at the relevant time of reference thereto, an amount
determined by the Lender by reference to the most recent Borrowing Base
Certificate/Collateral Update Certificate delivered to the Lender pursuant to
Section 2.1(b) which is equal to the sum of:

 

(a)           85% of Eligible
Accounts, provided
that at no time shall more than $500,000 in the aggregate of all
outstanding Eligible Accounts arise from the sale of tooling to account
debtors, plus

 

(b)                           the
lesser of:

 

(i)            the sum of:

 

(A)          50% of Eligible Raw
Material Inventory,

 

plus

 

(B)           50% of Eligible
Finished Goods Inventory,

 

and

 

(ii)           $3,500,000, minus

 

(c)           the Availability
Reserve, minus

 

(d)           reserves for foreign
exchange and interest rate derivative exposure and such other reserves as the
Lender in its reasonable credit judgment  shall deem appropriate from time to time;

 

In determining the
Borrowing Base from time to time, the Lender may, but shall not be required to,
rely upon reports or analyses generated by the Credit Parties (including,
without limitation, Borrowing Base Certificates/Collateral Update Certificates)
and reports or analyses generated by or on behalf of the Lender.  Notwithstanding anything to the contrary set
forth herein, the Lender may in its reasonable credit judgment at any time and
from time to time, adjust the percentages of

 

2

 

Eligible Accounts,
Eligible Raw Materials Inventory, Eligible Finished Goods Inventory and undrawn
amount of Documentary LCs included within the Borrowing Base.”

 

“‘Loan
Documents’ means this Agreement, the Revolving Credit Note, the Equipment
Term Note, the Real Estate Term Note, the Forming Equipment Term Note, the
Control Agreements, the Mortgages, the Stock Pledge Agreement, the Hazardous
Materials Indemnity Agreement, and any other instruments or documents executed
and delivered or to be delivered to the Lender from time to time pursuant to
this Agreement, as the same may be supplemented and amended from time to time
in accordance with their respective terms.”

 

“‘Loans’
means the Revolving Loans, the Equipment Term Loan, the Real Estate Term Loan
and the Forming Equipment Term Loan.”

 

“‘Non-Financed
Capital Expenditures’ means Capital
Expenditures paid in cash and not financed with Indebtedness for borrowed
money; provided
that Capital Expenditures financed with the proceeds of Revolving
Loans shall be deemed to constitute “Non-Financed Capital Expenditures” for
purposes of this Agreement; provided however, that the portion of
Forming Equipment expenditures financed with the proceeds of Revolving Loans
shall not be deemed to constitute “Non-Financed Capital Expenditures” for
purposes of this Agreement.”

 

“‘Post-Default
Rate’ means, (i) for Term Loans and Revolving Loans, a rate per annum equal
to the Adjusted Base Rate plus the Applicable Margin plus two
percent (2%), and (ii) for Forming Equipment Term Loan, a rate per annum equal
to the Adjusted Base Rate plus two percent (2%).”

 

“‘Term Loans’
means, collectively, the Equipment Term Loan, the Real Estate Term Loan and the
Forming Equipment Term Loan.”

 

(b)           Amendment to
Section 2.2 of the Credit Agreement.  Section 2.2 of the Credit Agreement is amended by the
addition thereto of the following new Section 2.2A:

 

2.2A        Forming Equipment Term Loan.  Notwithstanding anything to the
contrary set forth in Section 2.2, the Forming Equipment Term Loan shall
be governed by this Section 2.2A:

 

(a)           Funding of the
Forming Equipment Term Loan. 
Subject to the terms and conditions set forth below, the Lender agrees
to fund the Forming Equipment Term Loan in four separate (4) draws as follows:

 

(i)            The Lender agrees to
fund $512,408.00 of the Forming Equipment Term Loan on the Forming Equipment
Term Loan Funding Date.

 

(ii)           Upon the request of the
Borrowers, the Lender agrees to fund an additional $256,204.00 of the Forming
Equipment Term Loan within one Business Day after the satisfaction of the
following terms and conditions:

 

(A)          The Lender shall have
received evidence in form and substance satisfactory to the Lender in its
commercially reasonable judgment that the Forming Equipment (including all
components thereof) has been delivered by R+S Technik GmbH to a shipping agent
(the “Approved Shipping Agent”) approved by the Borrowers and the
Lender, and at a ocean port acceptable to the

 

3

 

Borrowers
and the Lender, and that title to the Forming Equipment has been transferred
from R+S Technik GmbH to the Borrowers;

 

(B)           The Lender shall have
received a facsimile copy of the bill of lading for the Forming Equipment from
the Approved Shipping Agent, and confirmation that the Approved Shipping Agent
has mailed the original bill of lading to the Lender by a recognized
international mail courier; and

 

(C)           The Lender shall have
received:  (1) evidence that the
Borrowers have obtained replacement value casualty insurance on the Forming
Equipment with an insurance company, with such deductibles, and covering such
terms and risks as are at all times satisfactory to the Lender in its
commercially reasonable judgment, (2) evidence that such policy of insurance
provides for at least 30 days prior written notice to the Lender of any
modifications or cancellation of such policy, and (3) a certificate from the
Borrowers’ insurance broker that such insurance is in full force and effect and
that the Lender has been named as loss payee thereunder.

 

(iii)          Upon the request of the
Borrowers, the Lender agrees to fund an additional $603,287.00 of the Forming
Equipment Term Loan within one Business Day after the satisfaction of the
following terms and conditions:

 

(A)          The Lender shall have
received evidence in form and substance satisfactory to the Lender in its
commercially reasonable judgment that the Forming Equipment has been received,
fully assembled and is operating in the Borrowers’ facility at 6077 Fulton
Industrial Park Boulevard in Atlanta, Georgia;

 

(B)           The Lender shall have
filed a financing statement filed as a fixture filing in the proper office in
the State of Georgia, for the purpose of perfecting its security interest in
the Forming Equipment, and shall have received evidence that as of the date of
such funding, the Forming Equipment is not subject to any Liens (other than
those in favor of the Lender); and

 

(C)           The Lender shall have
received an acknowledgement letter from Orix Financial Services in form and
substance satisfactory to the Lender acknowledging that it has no security
interest in or lien on the Forming Equipment.

 

(iv)          Upon the request of the
Borrowers, the Lender agrees to fund the remaining $128,101.00 of the Forming
Equipment Term Loan within one Business Day after the Lender shall have
received a certificate signed by a Designated Financial Officer and otherwise
in form and substance satisfactory to the Lender in its commercially reasonable
judgment certifying that (A) the Forming Equipment is performing to
specifications, (B) the Forming Equipment has been accepted by the Borrowers,
and (C) the Borrowers are required to deliver the final payment to R+S Technik
GmbH for the Forming Equipment; provided that the Lender shall have no
obligation to fund the fourth and final amount of the Forming Equipment Term
Loan if the Borrowers have not satisfied the conditions set forth in this
subsection (iv) within two months after the date of the funding of the
third portion of the Forming Equipment Term Loan pursuant to
Section 2.2A(a)(iii).

 

4

 

Notwithstanding the
foregoing, the Lender shall have no obligation to fund any amounts of the
Forming Equipment Term Loan (x) if the Forming Equipment Term Loan Funding Date
shall have not occurred, or (y) on or after the date that is fifteen months
after the Second Amendment Effective Date. 
Principal amounts of the Forming Equipment Term Loan that have been repaid
or prepaid may not be reborrowed.

 

(b)           Interest on the
Forming Equipment Term Loan. 
Subject to Section 2.3 hereof, the outstanding principal amount of
the Forming Equipment Term Loan shall bear interest at a rate per annum equal
to the Adjusted Base Rate. 
Notwithstanding the foregoing, (i) any portion of the Forming Equipment
Term Loan which is not paid when due shall automatically bear interest until
paid in full at the Post-Default Rate, (ii) during the period when any Event of
Default of the type described in clauses (g), (h) or (i) of Section 9.1
shall have occurred and be continuing, the outstanding principal balance of the
Forming Equipment Term Loan shall automatically bear interest, after as well as
before judgment, at the Post-Default Rate, (iii) if there shall occur and be
continuing any Event of Default (other than an Event of Default of the type
described in clauses (g), (h) or (i) of Section 9.1), following written
notice delivered to the Borrowers from the Lender, the outstanding principal
balance of the Forming Equipment Term Loan shall bear interest, after as well
as before judgment, at the Post-Default Rate during the period beginning on the
date such Event of Default first occurred, and ending on the date such Event of
Default is cured or waived.  Accrued
interest on the outstanding principal balance of the Forming Equipment Term
Loan shall be payable in arrears on the first day of each month; provided
that interest accrued at the Post-Default Rate shall be payable on
demand, and all accrued interest on the Forming Equipment Term Loan shall be
payable on each date that any portion of the principal of the Forming Equipment
Term Loan shall be payable hereunder and on the Forming Equipment Term Loan
Maturity Date.  All interest hereunder
shall be computed on the basis of a year of 360 days, and in each case shall be
payable for the actual number of days elapsed (including the first day but
excluding the last day).

 

(c)           Repayment of Forming
Equipment Term Loan.  The Borrowers
hereby unconditionally promise to pay to the Lender monthly principal
installments in respect of the Forming Equipment Term Loan on the first day of
each month, commencing on the first day of the first month after the earlier of
(i) the date that is fifteen months after the Second Amendment Effective Date
or (ii) the date of the funding of the fourth and final portion of the Forming
Equipment Term Loan pursuant to Section 2.2A(a)(iv); provided that if the fourth
and final portion of the Forming Equipment Term Loan is not funded within two
months after the date of the funding of the third portion of the Forming
Equipment Term Loan pursuant to Section 2.2A(a)(iii), the monthly payments
of principal described above shall commence on the first day of the month
following the date that is two months after the funding of such third portion
of the Forming Equipment Term Loan. 
Payments of principal shall be paid in equal monthly installments in
amounts sufficient to amortize the outstanding principal balance of the Forming
Equipment Term Loan through the Forming Equipment Term Loan Maturity Date.  To the extent not previously paid, the
Forming Equipment Term Loan shall be due and payable in full on the Forming
Equipment Term Loan Maturity Date.

 

(d)           Loan Account.  The Lender shall maintain in accordance with
its usual practice an account evidencing the indebtedness of the Borrowers to
the Lender in respect of the Forming Equipment Term Loan, including the amounts
of principal and interest payable and paid to the Lender from time to time
hereunder.  The entries made in the
account maintained pursuant to this subsection 2.2A(d) shall be prima
facie evidence of the existence and amounts of the obligations recorded
therein; provided
that the failure of the Lender to maintain such account or any error

 

5

 

therein
shall not in any manner affect the obligation of the Borrowers to repay the
Forming Equipment Term Loan in accordance with the terms of this Agreement.

 

(e)           Forming Equipment
Term Note.  Prior to the Second
Amendment Effective Date, the Borrowers shall prepare, execute and deliver to
the Lender the Forming Equipment Term Note evidencing the Borrowers’
obligations in respect of the Forming Equipment Term Loan.

 

(f)            Forming Equipment
Term Loan Termination Fee.  In
connection with any prepayment of the Forming Equipment Term Loan that occurs
on or prior to the third anniversary of the Second Amendment Effective Date,
the Borrowers shall: (i) notify the Lender in writing of such termination at
least 60 days prior to the date of such prepayment; (ii) repay the entire
principal balance of, and all accrued interest and fees owing with respect to,
the Forming Equipment Term Loan, and (ii) pay to the Lender a termination fee
equal to $20,000.

 

(c)           Amendments
to Section 2.3 of the Credit Agreement.

 

(i)            Section 2.3(a) of the Credit
Agreement is amended by deleting the last sentence thereof, and replacing it
with the following new sentence:

 

“The Borrowers shall not
be permitted to select any Eurodollar Interest Period for any Eurodollar
Borrowing that ends after the Revolving Credit Maturity Date, the Equipment
Term Loan Maturity Date, the Real Estate Term Loan Maturity Date or the Forming
Equipment Term Loan Maturity Date.”

 

(ii)           Section 2.3(b) of the Credit
Agreement is amended by deleting the first sentence thereof, and replacing it
with the following new sentence:

 

Each Eurodollar Borrowing
shall bear interest during the applicable Eurodollar Interest Period at a rate
per annum equal to the Eurodollar Rate plus the Applicable Margin; provided,
however, that the Forming Equipment Term Loan shall bear interest
during the applicable Eurodollar Interest Period at a rate per annum equal to
the Eurodollar Rate plus 2.75%.

 

(d)           Amendment to
Section 2.7(a) of the Credit Agreement.  Section 2.7(a) of the Credit Agreement
is amended by deleting the second sentence thereof, and replacing it with the
following new sentence:

 

“The Borrowers shall have
the right at any time and from time to time to prepay the Term Loans in whole
or in part, subject to prior notice in accordance with subsection 2.7(d),
subject to the payment of any amounts due under subsection 2.3(g), and,
with respect to the Forming Equipment Term Loan, subject to the provisions of
Section 2.2(f) and, if the Term Loans are repaid in full,
subsection 2.5(d), and provided that each such prepayment of the
Term Loans shall be in an amount that is at least equal to $250,000 or any
greater multiple of $100,000.”

 

(e)           Amendment to
Article 7 of the Credit Agreement.  Article 7 of the Credit Agreement is hereby amended by the
addition thereto of the following new Section 7.15:

 

“7.15  Landlord’s Waiver and Consent for Atlanta,
Georgia Property.  Within 60
days after the Second Amendment Effective Date, the Lender shall have received
a Landlord’s Waiver and Consent, in form and substance satisfactory to the
Lender, executed by InSite Real Estate
Development, L.L.C. with respect to the Borrower’s leased property
located at 6077 Fulton Industrial Park Boulevard, Atlanta, Georgia.”

 

6

 

(f)            Amendment to
Section 8.10 of the Credit Agreement.  Section 8.10 of the Credit Agreement is amended by deleting
subsection (a) thereof in its entirety, and replacing it with the following
new subsection (a):

 

(a)           Fixed Charge
Coverage Ratio.  The Credit Parties
shall not permit the Fixed Charge Coverage Ratio for each fiscal period set
forth below to be less than the ratio set opposite such period:

 

	
  Period

  	
   

  	
  Minimum
  Fixed

  Charge Coverage Ratio

  	
   

  
	
  January 1,
  2004 through June 30, 2004

  	
   

  	
  0.75 to 1.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  January 1,
  2004 through September 30, 2004

  	
   

  	
  0.80 to 1.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Any
  period of four consecutive fiscal quarters ending on or after
  December 31, 2004

  	
   

  	
  1.00 to 1.00.

  	
   

  

 

(g)           Amendment to
Section 9.1 of the Credit Agreement.  Section 9.1 of the Credit Agreement is amended by adding the
following new subsection (q):

 

“9.1(q)    the Borrowers shall have
failed to deliver the original bill of lading for the Forming Equipment
referred to in 2.2A(a)(ii)(B) within 5 Business Days after the funding of the
Forming Equipment Term Loan made in accordance with Section 2.2A(a)(ii).”

 

(h)           Addition of
Exhibit A-4 to the Credit Agreement.  Exhibit A-4 is hereby added to the Credit Agreement in the
form attached hereto.

 

3.             No Default;
Representations and Warranties, etc. 
The Borrowers hereby represent, warrant and confirm that: (a) the
representations and warranties of the Credit Parties contained in
Article 5 of the Credit Agreement are true and correct on and as of the
date hereof as if made on such date (except to the extent that such
representations and warranties expressly relate to an earlier date); (b) after
giving effect to this Amendment, the Borrowers are in compliance with all of
the terms and provisions set forth in the Credit Agreement and the other Loan
Documents; (c) after giving effect to this Amendment, no Default has occurred
and is continuing; and (d) the execution, delivery and performance by the
Borrowers of this Amendment (i) have been duly authorized by all necessary
action on the part of the Borrowers, (ii) will not violate any applicable law
or regulation or the organizational documents of any Borrower, (iii) will not
violate or result in a default under any indenture, agreement or other
instrument binding on any Borrower or any of its assets, and (iv) do not
require any consent, waiver or approval of or by any Person (other than the
Lender) which has not been obtained.

 

4.             Conditions to
Effectiveness.  The effectiveness of
this Amendment shall be subject to the satisfaction of the following conditions
precedent:

 

(a)           the
Lender shall have received counterparts of this Amendment duly executed by each
of the Borrowers;

 

(b)           the
Lender shall have received a Forming Equipment Term Note duly executed by each
of the Borrowers;

 

7

 

(c)           the
Lender shall have received a Certificate of the Secretary of each of the
Borrowers, certifying that this Amendment has been duly authorized by the
Boards of Directors of such Borrower; and

 

(d)           the
Lender shall have received a favorable written opinion (addressed to the Lender
and dated as of the date hereof) of Lynch, Brewer, Hoffman & Fink, LLP,
counsel to the Borrowers, with respect to this Amendment and such other matters
as the Lender may reasonably request.

 

5.             Conditions to
Forming Equipment Term Loan Funding Date. The Lender shall fund the first
draw of the Forming Equipment Term Loan upon the satisfaction of the following
conditions precedent:

 

(a)           All of
the conditions to the Second Amendment Effective Date shall have been
satisfied, or waived by the Lender in accordance with Section 10.2 of the
Credit Agreement; and

 

(b)           The
Lender shall have received a letter of credit for the account of R+S Technik GmbH
in favor of the Lender, in the amount of at least US $512,408.00, drawn on a
bank acceptable to the Lender, and confirmed by a United States bank acceptable
to the Lender, and otherwise in form and substance satisfactory to the Lender.

 

6.             Miscellaneous.

 

(a)           Except as
specifically amended hereby, all of the terms and provisions of the Credit
Agreement, the other Loan Documents and all related documents, shall remain in
full force and effect.

 

(b)           This
Amendment may be executed in any number of counterparts, each of which, when
executed and delivered, shall be an original, but all counterparts shall
together constitute one instrument. 
Delivery of an executed signature page hereto by facsimile transmission
shall be effective as delivery of a manually executed counterpart hereof.

 

(c)           This
Amendment shall be governed by the laws of The Commonwealth of Massachusetts
and shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and assigns. 
This Amendment shall be deemed to be a sealed instrument as of the date
first above written.

 

(d)           The
Borrowers shall reimburse the Lender for all reasonable costs and expenses,
including reasonable legal fees and disbursements, incurred by the Lender in
connection with this Amendment and the transactions contemplated hereby.

 

 

[The remainder of
this page is intentionally left blank.]

 

8

 

IN WITNESS WHEREOF, the
parties hereto have caused this Amendment to be duly executed under seal by
their respective authorized officers as of the day and year first above
written.

 

	
   

  	
  BORROWERS

  
	
   

  	
   

  
	
   

  	
  UFP TECHNOLOGIES, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
          /s/
  Ronald J. Lataille

  	
   

  
	
   

  	
  Name:  

  	
  Ronald J. Lataille

  
	
   

  	
  Title:

  	
  Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MOULDED FIBRE
  TECHNOLOGY, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
          /s/
  Ronald J. Lataille

  	
   

  
	
   

  	
  Name:  

  	
  Ronald J. Lataille

  
	
   

  	
  Title:

  	
  Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SIMCO INDUSTRIES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
          /s/
  Ronald J. Lataille

  	
   

  
	
   

  	
  Name:  

  	
  Ronald J. Lataille

  
	
   

  	
  Title:

  	
  Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SIMCO AUTOMOTIVE TRIM,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
           /s/ Ronald J.
  Lataille

  	
   

  
	
   

  	
  Name:  

  	
  Ronald J. Lataille

  
	
   

  	
  Title:

  	
  Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  LENDER

  
	
   

  	
   

  	
   

  
	
   

  	
  FLEET CAPITAL
  CORPORATION, as Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
          /s/
  Daniel P. Corcoran, Jr.

  	
   

  
	
   

  	
  Name:  

  	
  Daniel P. Corcoran, Jr.

  
	
   

  	
  Title:

  	
  SVP

  
						

 

 

Second Amendment
to Credit Agreement

 

 

Exhibit A-4

FORMING EQUIPMENT TERM NOTE

 

	
  Up to $1,500,000

  	
   

  	
  June 28,
  2004

  

 

 

FOR VALUE RECEIVED, the
undersigned, UFP Technologies, Inc., a Delaware corporation, Moulded Fibre
Technology, Inc., a Maine corporation, Simco Industries, Inc., a Michigan
corporation, and Simco Automotive Trim, Inc., a Michigan corporation, as joint
and several borrowers, (collectively the “Borrowers”), promise to pay to the
order of FLEET CAPITAL CORPORATION (the “Lender”), at the place and times
provided in the Credit Agreement referred to below the principal sum of

 

ONE MILLION FIVE HUNDRED THOUSAND
DOLLARS ($1,500,000),

 

or, if less, the
principal amount of, and interest accrued on, the Forming Equipment Term Loan
made by the Lender from time to time pursuant to that certain Credit and
Security Agreement dated as of February 28, 2003, as amended by that
certain First Amendment to Credit Agreement dated as of March 24, 2004 and
that certain Second Amendment to Credit Agreement dated as of June 28,
2004 (together with all amendments and other modifications, if any, from time
to time hereafter made thereto, the “Credit Agreement”) among the Borrowers,
the Guarantors named therein, and the Lender. 
This Forming Equipment Term Note is being executed and delivered by the
Borrowers pursuant to subsection 2.2A(e) of the Credit Agreement.  Capitalized terms used herein and not
defined herein shall have the meanings ascribed to them in the Credit Agreement.

 

The Borrowers are
obligated to make regularly scheduled payments of principal to the Lender as
provided in subsection 2.2A(c) of the Credit Agreement.  In addition, the unpaid principal amount of
this Forming Equipment Term Note from time to time outstanding is subject to
mandatory prepayment from time to time as provided in the Credit Agreement and
shall bear interest as provided in the Credit Agreement.  All payments of principal and interest on
this Forming Equipment Term Note shall be payable in lawful currency of the
United States of America in immediately available funds to the Lender.

 

This Forming Equipment
Term Note is entitled to the benefits of, and evidences obligations incurred
under, the Credit Agreement, to which reference is made for a description of
the security for this Forming Equipment Term Note and for a statement of the
terms and conditions on which the Borrowers are permitted and required to make
prepayments and repayments of principal of the obligations evidenced hereby and
on which such obligations may be declared to be immediately due and payable.

 

THIS FORMING EQUIPMENT
TERM NOTE SHALL BE GOVERNED, CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS
OF THE COMMONWEALTH OF MASSACHUSETTS, WITHOUT REFERENCE TO THE CONFLICTS OR
CHOICE OF LAW PRINCIPLES THEREOF.

 

 

The Borrowers hereby
waive all requirements as to diligence, presentment, demand of payment, protest
and (except as required by the Credit Agreement) notice of any kind with
respect to this Forming Equipment Term Note.

 

IN WITNESS WHEREOF, the
undersigned Borrowers have executed this Forming Equipment Term Note under seal
as of the day and year first above written.

 

 

	
   

  	
  UFP TECHNOLOGIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
          /s/
  Ronald J. Lataille

  	
   

  
	
   

  	
  Name:  

  	
  Ronald J. Lataille

  
	
   

  	
  Title:

  	
  Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
  MOULDED FIBRE
  TECHNOLOGY, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
          /s/
  Ronald J. Lataille

  	
   

  
	
   

  	
  Name:  

  	
  Ronald J. Lataille

  
	
   

  	
  Title:

  	
  Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
  SIMCO INDUSTRIES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
          /s/
  Ronald J. Lataille

  	
   

  
	
   

  	
  Name:  

  	
  Ronald J. Lataille

  
	
   

  	
  Title:

  	
  Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
  SIMCO AUTOMOTIVE TRIM,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
           /s/ Ronald J.
  Lataille

  	
   

  
	
   

  	
  Name:  

  	
  Ronald J. Lataille

  
	
   

  	
  Title:

  	
  Treasurer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00070-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00070-of-00352.parquet"}]]