Document:

exv10w1

Exhibit 10.1

EXECUTION COPY

Dated as of September 30, 2009

TLC Vision (USA) Corporation

16305 Swingley Ridge Road, Suite 300

Chesterfield, MO 63017

Attention: Michael Gries

Re:       Limited Waiver

Ladies and Gentlemen:

     We refer to the Amended and Restated Credit Agreement, dated as of June 21, 2007 among TLC
Vision (USA) Corporation, a Delaware corporation (the “Borrower”), TLC Vision Corporation,
a New Brunswick corporation (“Parent”), as Guarantor, the Additional Guarantors, the
Lenders, the Issuing Bank, and Wells Fargo Bank, National Association, as Collateral Agent and
Administrative Agent, as amended by (i) Amendment No. 1 to Credit Agreement dated as of February
28, 2008, (ii) Limited Waiver and Amendment No. 2 to Credit Agreement dated as of March 31, 2009,
(iii) Amendment to Limited Waiver and Amendment No. 2 to Credit Agreement, dated as of April 30,
2009, (iv) Consent and Amendment No. 2 to Limited Waiver and Amendment No. 2 to Credit Agreement,
dated as of June 1, 2009, (v) Limited Waiver, Consent, and Amendment No. 3 to Credit Agreement,
dated as of June 5, 2009, (vi) Limited Waiver and Amendment No. 4 to Credit Agreement, dated as of
June 30, 2009, and (vii) Amendment to Limited Waiver and Amendment No. 4 to Credit Agreement and
Amendment No. 5 to Credit Agreement, dated as of September 8, 2009 (the “Credit Agreement).
Capitalized terms used but not defined in this Limited Waiver (this “Limited Waiver”) have the
same meanings herein as in the Credit Agreement.

     The Loan Parties have requested that (a) the Required Lenders grant a limited waiver with
respect to any and all Specified Defaults (as defined below), and (b) either (i) all of the Lenders
agree to an extension for payment of the Specified Amounts (as defined below) or (ii) the Required
Lenders agree to forbear from exercising their rights and remedies under the Loan Documents with
respect to the Payment Defaults (as defined below). Accordingly, the Loan Parties hereby agree
with the undersigned Lenders as follows:

     SECTION 1. Limited Waiver of Specified Defaults.

     (a) The undersigned Lenders hereby waive solely during the Waiver Period (as
hereinafter defined) any and all Specified Defaults.

     (b) Upon the termination of the Waiver Period, (i) the Specified Defaults shall be
Defaults and Events of Default for all purposes of the Credit Agreement and the other Loan
Documents and (ii) the Administrative Agent, the Collateral Agent, the Issuing Bank and the
Lenders shall be entitled to exercise and to enforce any and all rights and

 

 

remedies available to them under the Loan Documents or otherwise against the Loan
Parties or in relation to the Collateral as a result of the occurrence of any Specified
Default and any Default or Event of Default other than the Specified Defaults.

     (c)
Notwithstanding the limited waiver contained in clause (a) above:

     (i) the defined term Eligible Assignee and Sections 2.06(b)(ii), 2.06(b)(v),
2.15, 5.02 (g)(ii)(B), 5.02(g)(ii)(C) and 5.02(g)(ii)(D) of the Credit Agreement
shall be read and shall apply and be operative as if the foregoing limited waiver
had not been granted and the Specified Defaults were continuing; and

     (ii) the Borrower shall have no right to (A) elect to cause an assignment by a
Lender Party pursuant to Section 2.10(d) of the Credit Agreement, and (B) request or
receive any additional Advance or the issuance of any additional Letter of Credit or
Letter of Credit Participation Agreements, pursuant to Article II of
the Credit Agreement, or otherwise.

(d) As used in this Limited Waiver:

     (i) “Limited Waiver Effective Date” shall mean
September 30, 2009.

     (ii) “Payment Defaults” means the Defaults and Events of
Default arising from failure to pay any Specified Amount on or prior to the date on
which such Specified Amount is due and payable as set forth on Schedule
1 hereto;

     (iii) “Specified Amounts” has the meaning set forth in
Section 2 hereof;

     (iv) “Specified Defaults” has the meaning set forth in
Section 4 hereof; and

     (v) “Waiver Period” means the period commencing on the Limited
Waiver Effective Date and ending on the earlier to occur of (A) October 13, 2009 or,
if so agreed by the Required Lenders in their sole discretion after the Limited
Waiver Effective Date, October 30, 2009, or (B) the occurrence of any Default or
Event of Default (other than a Specified Default or a Payment Default).

     SECTION 2. Consent to Deferral of Specified Amounts Payment

     (a) Subject to Section 6(b) hereof, each of the Lenders hereby agrees
to extend each date on which payment of each amount set forth on Schedule 1
hereto (each a “Specified Amount” and collectively, the “Specified
Amounts”) is due and payable under the Loan Documents to the day immediately
following the last day of the Waiver Period.

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     SECTION 3. Forbearance

     (a) In the event that Section 2 hereof does not become effective
because the conditions precedent specified in Section 6(b) hereof are not
satisfied, then the undersigned Required Lenders agree that from and after the Limited
Waiver Effective Date until the last day of the Waiver Period, they shall forbear from
exercising their rights and remedies under the Credit Agreement, the other Loan Documents
and applicable law with respect to the Payment Defaults.

     (b) Upon termination of the Waiver Period, the agreements of the undersigned Required
Lenders to forbear from exercising their rights and remedies in respect of the Payment
Defaults set forth herein shall automatically terminate, without the requirement of any
notice to any Loan Party, and the undersigned Required Lenders shall be free in their sole
and absolute discretion to proceed to enforce any or all of their rights and remedies set
forth in the Credit Agreement, the other Loan Documents and applicable law, including,
without limitation, the right to demand the immediate repayment of the Advances and the
right to immediate repayment of all other Obligations in full.

     (c) In furtherance of the foregoing and notwithstanding the occurrence of the Limited
Waiver Effective Date, each of the Loan Parties agrees that, subject to the agreement of the
undersigned Required Lenders to forbear from exercising certain of their rights and remedies
as and to the extent expressly set forth in this Limited Waiver, all rights and remedies of
the Lenders under the Loan Documents or applicable law with respect to such Loan Party shall
continue to be available to the Lenders from and after the Limited Waiver Effective Date.

     SECTION 4. Acknowledgments and Agreements of the Loan Parties. Each of the Loan
Parties hereby irrevocably and unconditionally agrees, acknowledges and affirms to the Agents, the
Issuing Bank and the Lenders that:

     (a) Specified Defaults and Payment Defaults.
Set forth on Schedule 2 attached hereto is an accurate list of certain
Defaults and/or Events of Default that have occurred and are continuing under the Loan
Documents (such Defaults and/or Events of Default, the “Specified Defaults”) as of
the date hereof. Immediately (i) prior to the effectiveness of this Limited Waiver (and
subject to the terms and conditions of the Credit Agreement), the Agents, the Issuing Bank
and the Lenders had available to them, and were entitled to exercise, and (ii) upon the
expiration of the Waiver Period, the Agents, the Issuing Bank and the Lenders shall have
available to them, and be entitled to exercise, in each case, all of the rights and remedies
(including the right to enforce all of the security interests created pursuant to the Loan
Documents and, at the direction of the Required Lenders, to terminate the Commitments and
accelerate the Advances) accorded under the Credit Agreement and the other Loan Documents
with respect to the Specified Defaults, and any other then continuing Default or Event of
Default. From and after the date hereof, neither the Borrower nor any other Loan Party will
assert any objection to, or take any position, or engage in any action, which is
inconsistent with, the Loan Parties’ acknowledgments of the existence of the Specified
Defaults set forth in this Section 4(a) as of the date hereof.

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     (b) Continued Validity of Loan Documents. Except for the consent, waivers and
forbearance set forth in Sections 1, 2, and 3 respectively,
hereof, this Limited Waiver shall not, by implication or otherwise, limit, impair,
constitute a consent, waiver of or otherwise affect any rights or remedies of the Agents,
the Issuing Bank or the Lenders under any of the Loan Documents, nor alter, modify, amend or
in any way affect any of the rights, remedies, obligations or any covenants of the Loan
Parties contained in any of the other Loan Documents, all of which are ratified and
confirmed in all respects and shall continue in full force and effect.

     (c) Reimbursement and Indemnification Obligations. Nothing contained herein
shall be construed to diminish the expense reimbursement and indemnification obligations of
the Loan Parties set forth in Section 9.04 of the Credit Agreement.

     (d) Advisers. The Borrower has an existing obligation to, and will, pay all
invoiced fees and out-of-pocket expenses and disbursements of (i) Bingham McCutchen LLP
(“Bingham”), counsel to certain of the Lenders, pursuant to the fee agreement, dated
as of February 10, 2009, (ii) Gordian Group LLC (“Gordian”), the financial adviser
engaged by Bingham for the benefit of the lenders represented by it, pursuant to engagement
letter, dated as of February 20, 2009, and (iii) Stikeman Elliott LLP, Canadian counsel
engaged by Bingham McCutchen LLP, subject to the terms and conditions of the fee agreement,
dated as of February 10, 2009.

     (e) Payment Obligations. The Borrower has an existing obligation to, and will,
pay to the Lenders on the day immediately following the last day of the Waiver Period each
of the Specified Amounts.

     (f) Default Interest. Notwithstanding the consent, waivers and amendments set
forth in this Limited Waiver, interest shall (i) accrue on the outstanding Obligations on
and after the date hereof at the applicable default rates under Section
2.07(b) of the Credit Agreement and (ii) be payable in accordance with the Credit
Agreement; provided that no such interest shall be payable until the day immediately
following the last day of the Waiver Period.

     SECTION 5. Representations and Warranties. Each of the Loan Parties hereby represents
and warrants to the Agents, the Issuing Bank and the Lenders that:

     (a) Due Execution and Authorization; Legal, Valid and Binding Obligation. This
Limited Waiver has been duly executed and delivered by each Loan Party. The execution and
delivery by each Loan Party of this Limited Waiver is within such Loan Party’s powers and
has been duly authorized by all necessary action on its part. This Limited Waiver and the
Credit Agreement constitute the legal, valid and binding obligations of such Loan Party,
enforceable against such Loan Party in accordance with its terms, subject to applicable
bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights
generally and subject to general principles of equity, regardless of whether considered in a
proceeding in equity or at law.

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     (b) No Violation; No Defaults; Consents and Approvals. The execution, delivery
and performance by each Loan Party of this Limited Waiver are within such Loan Party’s
corporate, limited liability company, limited liability partnership or limited partnership
(as applicable) powers, have been duly authorized by all necessary corporate, limited
liability company, limited liability partnership or limited partnership (as applicable)
action, and do not (i) contravene such Loan Party’s charter, bylaws, limited liability
company agreement, partnership agreement or other constituent documents, (ii) violate any
law, rule regulation, order, writ, judgment, injunction, decree, determination or award,
(iii) conflict with or result in the breach of, or constitute a default or require any
payment to be made under, any contract, loan agreement, indenture, mortgage, deed of trust,
lease or other instrument binding on or affecting any Loan Party, any of its Subsidiaries or
any of their properties or (iv) except for the Liens created under the Loan Documents,
result in or require the creation or imposition of any Lien upon or with respect to any of
the properties of any Loan Party or any of its Subsidiaries.

     (c) Representations. After giving effect to this Limited Waiver, each of the
representations and warranties made by any Loan Party contained in the Loan Documents is
true and correct in all material respects as of the date hereof, except to the extent such
representations and warranties expressly relate to an earlier date.

     (d) Ratification of Obligations.

     (i) There are no understandings or agreements relating to the Obligations other
than the Loan Documents.

     (ii) Neither the Lenders, any Agent, nor the Issuing Bank are in default under
any of the Loan Documents or otherwise have breached any obligations to the Loan
Parties.

     (iii) There are no offsets, counterclaims or defenses to the Obligations or to
the rights, remedies or powers of the Administrative Agent, the Collateral Agent,
the Issuing Bank, or any Lender in respect of any of the Obligations or any of the
Loan Documents, and the Loan Parties agree not to interpose (and each does hereby
waive and release) any such defense, set-off or counterclaim in any action brought
by the Administrative Agent, the Collateral Agent, the Issuing Bank or any of the
Lenders with respect thereto.

     (iv) As of the Limited Waiver Effective Date (a) the outstanding principal
amount of all Term Advances equals $76,659,696.92, (b) the outstanding principal
amount of all Revolving Credit Advances equals $23,400,000.00 and (c) the
outstanding LC Exposure equals US $50,000 and CAD $1,000,000.

     (e) No Other Defaults. No Default or Event of Default exists on the date
hereof other than the Specified Defaults and Payment Defaults.

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     (f) Material Information.

     (i) None of the factual information and data (taken as a whole) at any time
furnished by any Loan Party, any of its Affiliates that it controls or any of their
respective counsel, financial advisers or authorized representatives to any Agent,
any Lender, or any of their respective counsel or financial advisors in connection
with the Loan Documents and the proposed restructuring of the obligations
thereunder, contains any untrue statement of a material fact or omits to state any
material fact necessary to make such information and data (taken as a whole) not
materially misleading, in each case, at the time such information was provided in
light of the circumstances under which such information or data was furnished.

     (ii) The projections and other pro forma financial information provided by any
Loan Party, any of its Affiliates that it controls or any of their respective
counsel, financial advisers or authorized representatives to any Agent, any Lender
or any of their respective counsel or financial advisers were prepared in good faith
based upon assumptions believed by the Loan Parties to be reasonable at the time
made, it being recognized by the Agents and the Lenders that such projections as to
future events are not to be viewed as facts and that actual results during the
period or periods covered by any such projections may differ from the projected
results and such differences may be material.

     SECTION 6. Conditions to Effectiveness. (a) This Limited Waiver shall become
effective if, and only if, on or before September 30, 2009, each of the following conditions
precedent shall have been satisfied:

     (i)
Execution
and Delivery of Documents. The Administrative Agent and counsel
to the Required Lenders shall have received (A) duly executed counterparts of this
Limited Waiver which, when taken together, bear the authorized signatures of each of
the Borrower, the Parent and the Required Lenders, required for this Limited Waiver
to become effective and (B) duly executed counterparts of the Consent, in the form
of Annex A hereto, which when taken together, bear the authorized signatures of each
of the Guarantors.

     (ii) Fees, Costs and Expenses. The Borrower shall have paid all
invoiced unpaid fees and out-of-pocket expenses and disbursements of (A) Bingham,
pursuant to the fee agreement dated as of February 10, 2009, (B) Gordian, pursuant
to the engagement letter, dated as of February 20, 2009, (C) Wells Fargo Bank,
National Association, as Administrative Agent and Collateral Agent, and (D) Ropes
and Gray LLP, counsel to the Administrative Agent and Collateral Agent, pursuant to
Section 9.04 of the Credit Agreement.

     (iii) Proof of Corporate Action. The
Administrative Agent and counsel to the Required Lenders shall have received from
each of the Loan Parties copies, certified by a duly authorized officer of such
Person to be true and complete on and as of the Limited Waiver Effective Date, of
the records of all corporate action

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taken by such Person to authorize (A) such Person’s execution and delivery of
this Limited Waiver, and (B) such Person’s performance of all of its agreements and
obligations under this Limited Waiver and the Credit Agreement. Such certified
copies shall be in form and substance reasonably satisfactory to the Required
Lenders.

     (iv) Incumbency Certificate. The Administrative Agent and
counsel to the Required Lenders shall have received incumbency certificates, dated
the Limited Waiver Effective Date, signed respectively by a duly authorized officer
of each of the Loan Parties, and giving the name and bearing a specimen signature of
each individual who shall be authorized (A) to sign, in the name and on behalf of
such Person, this Limited Waiver, and (B) to give notices and to take other action
on behalf of such Person under this Limited Waiver and the Loan Documents. Such
certified copies or certificate shall be in form and substance reasonably
satisfactory to the Required Lenders.

     (v) Closing Certificate. The Administrative Agent and counsel to the
Required Lenders shall have received a certificate, dated the Limited Waiver
Effective Date, signed by the Chief Financial Officer of the Borrower, to the effect
that (A) each of the representations and warranties of the Loan Parties contained in
Section 5 hereof are true and correct as of the Limited Waiver Effective Date, and
(B) all conditions to the effectiveness of this Limited Waiver set forth in this
Section 6, other than those which are subject to the discretion of the Agents or any
Lender, have been satisfied in all respects.

     (vi) Amendment to Fee Agreement. (A) Counsel to the Required Lenders
shall have received duly executed counterparts of the amendment to the fee agreement
dated as of the date hereof between the Borrower and Bingham, in form and substance
reasonably satisfactory to Bingham, and (B) the fee reserve referred to in the
amendment to the fee agreement dated as of the date hereof between the Borrower and
Bingham shall have been deposited in accordance with the terms thereof.

     (b) In the event that less than 100% of the Lenders execute and deliver this Limited
Waiver, then Section 2 of this Limited Waiver shall not be effective and
shall not be binding on any of the Loan Parties, the Agents, the Issuing Bank and the
Lenders.

     SECTION 7. Post-Closing Covenants.

     (a) Agreements. The Loan Parties shall not (i) make or permit any of their
Subsidiaries (or Affiliates that they control) to make, any material amendment to any
agreement to which it is a party, (ii) settle or permit any of their Subsidiaries to settle,
or make any payment of or permit any of their Subsidiaries (or Affiliates that they control)
to make any payment of, all or any part of any material claim, under or in connection with
any agreement to which it is a party, or (iii) enter into any material agreement with any
Person, unless in the case of (i) and (ii) the Loan Parties reasonably determine that

7

 

such amendment, settlement or payment results in cash savings or improved liquidity for
the Loan Parties after written notice to and consultation with the Required Lenders.

     (b) Terms of Financing and Restructuring. The Loan Parties shall negotiate in
good faith and use their best efforts to agree by October 26, 2009 to (i) documentation for
additional debt financing acceptable to the Required Lenders, and (ii) documentation for an
overall debt and/or equity restructuring acceptable to the Lenders under applicable law.

     (c) Obligations. The Borrower shall pay in full all principal, interest, and
any other Obligations (other than the Specified Amounts) due and payable during the Waiver
Period.

     (d) Liquidity. The Loan Parties shall during the Waiver Period (i) at all
times cause minimum Liquidity to be no less than $1,500,000, (ii) as of the last Business
Day of any week, cause minimum Adjusted Liquidity to be no less than $1,500,000, and (iii)
promptly notify the Agents and the Lender Parties if (A) Liquidity is less than $2,000,000
at any time or (B) Adjusted Liquidity is less than $2,000,000 as of the last Business Day of
any week.

     (e) Meetings and Additional Information. The Loan Parties shall respond
promptly to any reasonable requests for additional information by any Lender, its counsel or
financial advisors.

     (f) Distributions to Parent. During the Waiver Period, the Borrower shall not
declare and pay cash dividends to Parent in excess of an aggregate amount of $375,000 to
permit Parent to pay (i) reasonable and customary corporate and operating expenses
(including reasonable out-of-pocket expenses for legal, administrative and accounting
services provided by third parties, and compensation, benefits and other amounts payable to
officers and employees in connection with their employment in the ordinary course of
business and to board of director observers) and (ii) franchise fees or similar taxes and
fees required to maintain its corporate existence.

     (g) Sale of Assets. The Loan Parties shall not sell, lease, transfer or
otherwise dispose of, or permit any of their Subsidiaries to sell, lease, transfer of
otherwise dispose of, any assets, or grant any option or other right to purchase, lease or
otherwise acquire, or permit any of their Subsidiaries to grant any option or other right to
purchase, lease or otherwise acquire, any assets except as expressly permitted by Sections
5.02(e)(i) and 5.02(e)(iii) of the Credit Agreement (which permission is hereby extended
through and including the last day of the Waiver Period).

     (h) Consents, Waivers. The Loan Parties shall, and shall cause their
Subsidiaries to, use their best efforts to (i) obtain all necessary consents and/or waivers
of any Person that has any rights under any agreement with any Loan Party or any of its
Subsidiaries arising from any bankruptcy, insolvency, reorganization or any similar
proceeding with respect to the Parent and/or Borrower, or any change of control provision
therein that could have an adverse effect on the Parent or any of its Subsidiaries

8

 

or Affiliates and (ii) seek a settlement, amendment or resolution, as applicable, with
respect to (A) material claims and obligations asserted by any third party against any Loan
Party or any of its Subsidiaries or Affiliates, and (B) material agreements between or among
any Loan Party and any of its Subsidiaries or Affiliates on the one hand, and one or more
third parties, on the other hand, in the case of each of (A) and (B) including, without
limitation, such claims, obligations and agreements set forth in the list provided to
counsel for the Borrower by counsel to the Represented Lenders on or prior to the date
hereof.

     SECTION 8. Release. In consideration of the foregoing, each of the Loan Parties and
its successors and assigns (collectively, the “Releasors”), as applicable, release and forever
discharge the Agents, the Issuing Bank, and each Lender that executes this Limited Waiver, and
their respective affiliates, officers, directors, employees, agents, attorneys, predecessors,
successors and assigns, both present and former (collectively, together with the Agents, the
Issuing Bank and each Lender, the “Bank Affiliates”), of and from any and all manner of action and
actions, causes of action, suits, debts, controversies, damages, judgments, executions, claims and
demands whatsoever, asserted or unasserted, in law or in equity, relating to or arising out of any
Loan Document, against any of the Bank Affiliates which any Releasor ever had or now has on the
date hereof, upon or by reason of any manner, cause, causes or thing whatsoever, whether presently
existing, suspected, known, unknown, contemplated or anticipated.

     SECTION 9. GOVERNING LAW. THIS LIMITED WAIVER SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

     SECTION 10. Miscellaneous. The failure of any Loan Party to timely perform any of its
obligations under Section 7 hereof shall constitute an immediate and automatic
Event of Default. This Limited Waiver constitutes the entire agreement of the parties with respect
to the subject matter hereof and supersedes any prior understanding or agreement which may have
existed with respect thereto. The waivers, consent and forbearance set forth in Sections
1, 2, and 3 of this Limited Waiver shall not apply to any other provision
of the Credit Agreement, and shall be limited precisely as written, and shall only be effective
during the Waiver Period. Except as expressly provided herein, this Limited Waiver shall not, by
implication or otherwise, limit, impair, constitute a waiver of or otherwise affect any right or
remedy of the Agents or the Lender Parties under the Credit Agreement or the other Loan Documents,
nor alter, modify, amend or in any way affect any of the obligations or covenants contained in the
Credit Agreement or any of the other Loan Documents, all of which are ratified and confirmed in all
respects and shall continue in full force and effect. To the extent there is any inconsistency
between the terms and provisions of any Loan Document and the terms and provisions of this Limited
Waiver, the terms and provisions of this Limited Waiver shall govern. The headings used in this
Limited Waiver are for convenience of reference only and shall not in any way be deemed to limit,
define or describe the scope and intent of this Limited Waiver or any provision hereof. This
Limited Waiver shall be binding upon and inure to the benefit of each of the Lenders, the Agents
and the Issuing Bank and each of the Loan Parties, and to each of their respective successors and
assigns. This Limited Waiver may not be modified or amended except by a written instrument
executed by the party to be charged. Execution and delivery of this Limited Waiver by facsimile
transmission shall constitute execution and delivery of this Limited

9

 

Waiver for all purposes, with the same force and effect as execution and delivery of an
original manually signed copy hereof. This Limited Waiver may be executed in any number of
counterparts by different parties hereto in separate counterparts, each of which when so executed
shall be deemed to be an original and all of which taken together shall constitute one and same
agreement. Delivery by telecopier of an executed counterpart of a signature page to this Limited
Waiver shall be effective as delivery of an original executed counterpart of this Limited Waiver.

[Remainder of this page intentionally left blank]

10

 

     IN WITNESS WHEREOF, the parties hereto have caused this Limited Waiver to be duly executed by
their duly authorized officers, all as of the date first above written.

	 	 	 	 	 
	 	Very truly yours,

TLC VISION (USA) CORPORATION, as 
Borrower

 	 
	 	By:  	/s/ William McManus
 	 
	 	 	Name:  	William McManus 	 
	 	 	Title:  	Interim CFO 	 
	 
	 	TLC VISION CORPORATION, as Parent and
 Guarantor

 	 
	 	By:  	/s/ William McManus
 	 
	 	 	Name:  	William McManus 	 
	 	 	Title:  	Interim CFO 	 
	 

[Signature Page to Limited Waiver]

 

 

Annex A

CONSENT

Dated as of September 30, 2009

We, the undersigned, as Guarantors under the Guaranty and Grantors under the Security Agreements
and the Intellectual Property Security Agreement (each as defined in the Credit Agreement) in favor
of the Administrative Agent and, for its benefit and the benefit of the Lenders party to the Credit
Agreement referred to in the foregoing Limited Waiver and Limited Waiver to Credit Agreement
(“Limited Waiver”), hereby consent to such Limited Waiver and hereby confirm and agree that
notwithstanding the effectiveness of such Limited Waiver, each of the Guaranty, the Security
Agreements and the Intellectual Property Security Agreement is, and shall continue to be, in full
force and effect and is hereby ratified and confirmed in all respects.

	 	 	 	 	 
	 	GUARANTORS

TLC VISION CORPORATION

 	 
	 	By:  	/s/ William McManus
 	 
	 	 	Name:  	William McManus 	 
	 	 	Title:  	Interim CFO 	 
	 

[Signature Page to Limited Waiver]

 

 

	 	 	 	 	 	 	 	 	 
	 	 	AMERICAN EYE INSTRUMENTS, INC.
	 	 	LASER EYE SURGERY, INC.
	 	 	LASER VISION CENTERS, INC.
	 	 	LVCI CALIFORNIA, LLC
	 	 	 	 	By: Laser Vision Centers, Inc., its Member
	 	 	SIGHTPATH MEDICAL INC.
	 	 	OR PARTNERS, INC.
	 	 	O.R. PROVIDERS, INC.
	 	 	SOUTHEAST MEDICAL, INC.
	 	 	SOUTHERN OPHTHALMICS, INC.
	 	 	TLC CAPITAL CORPORATION
	 	 	TLC FLORIDA EYE LASER CENTER, LLC
	 	 	 	 	By: TLC THE LASER CENTER (INSTITUTE) INC., ITS MEMBER
	 	 	TLC LASER EYE CENTERS (ATAC), LLC
	 	 	TLC LASER EYE CENTERS (REFRACTIVE I) INC.
	 	 	TLC MANAGEMENT SERVICES, INC.
	 	 	TLC MIDWEST EYE LASER CENTER, INC.
	 	 	TLC THE LASER CENTER (ANNAPOLIS) INC.
	 	 	TLC THE LASER CENTER (BALTIMORE MANAGEMENT) LLC
	 	 	TLC THE LASER CENTER (BALTIMORE) INC.
	 	 	TLC THE LASER CENTER (BOCA RATON) LIMITED PARTNERSHIP
	 	 	 	 	By: (NORTHEAST) INC., ITS GENERAL PARTNER
	 	 	TLC THE LASER CENTER (CAROLINA) INC.
	 	 	TLC THE LASER CENTER (CONNECTICUT) L.L.C.
	 	 	 	 	By: TLC THE LASER CENTER (NORTHEAST) INC., ITS SOLE MEMBER
	 	 	TLC THE LASER CENTER (INSTITUTE) INC.
	 	 	TLC THE LASER CENTER (NORTHEAST) INC.
	 	 	TLC VC, LLC
	 	 	TLC VISION SOURCE, INC.
	 	 	TLC WHITTEN LASER EYE ASSOCIATES, LLC
	 	 	 	 	By: TLC THE LASER CENTER (NORTHEAST) INC., ITS MEMBER
	 	 	TRUVISION, INC.
	 	 	TRUVISION CONTACTS, INC.
	 	 	TRUVISION PROVIDER ONLINE SERVICES, INC.
	 	 	VALLEY LASER EYE CENTER, LLC
	 	 	 	 	By: LASER VISION CENTERS, INC., ITS SOLE MEMBER
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ William McManus
	 	 	 	 	   	 
	 	 	 	 	Name: 	William McManus
	 	 	 	 	Title:	Interim CFO

[Signature Page to Limited Waiver]

 

 

	 	 	 	 	 	 	 
	 	 	TLC THE LASER CENTER (MONCTON) INC.
	 	 	RHEO CLINIC INC.
	 	 	VISION CORPORATION
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ William McManus
	 	 	 	 	   	 
	 

	 	 	 	Name: William McManus	 	 
	 

	 	 	 	Title:    Interim CFO	 	 

[Signature Page to Limited Waiver]

 

 

	 	 	 	 	 
	Agreed to and Accepted By:	 	 
	 
	 	 	 	 
	Brentwood CLO Ltd.	 	 
	By: Highland Capital Management, L.P.	 	 
	As Investment Manager	 	 
	 
	 	 	 	 
	By:

	 	/s/ JASON POST
 

	 	 
	 

	 	Name: JASON POST	 	 
	 

	 	Title:  OPERATIONS DIRECTOR	 	 

[Signature Page to Limited Waiver]

 

 

	 	 	 	 	 
	Agreed to and Accepted By:	 	 
	 
	 	 	 	 
	Loan Funding IV LLC	 	 
	By: Highland Capital Management, L.P., As Investment Manager	 	 
	 
	 	 	 	 
	By:

	 	/s/ JASON POST
 

	 	 
	 

	 	Name: JASON POST	 	 
	 

	 	Title:  OPERATIONS DIRECTOR	 	 

[Signature Page to Limited Waiver]

 

 

	 	 	 	 	 
	Agreed to and Accepted By:	 	 
	 
	 	 	 	 
	Emerald Orchard Limited	 	 
	 
	 	 	 	 
	By:

	 	/s/ ARLENE ARELLANO
 

	 	 
	 

	 	Name: ARLENE ARELLANO	 	 
	 

	 	Title:   AUTHORIZED SIGNATORY	 	 

[Signature Page to Limited Waiver]

 

 

Agreed to and Accepted By:

Greenbriar CLO, Ltd.

By: Highland Capital Management, L.P., As Investment Manager

	 	 	 	 	 
	By: 

	 	/s/ JASON POST
 

Name: JASON POST
	 	 
	 

	 	Title:  OPERATIONS DIRECTOR	 	 

[Signature Page to Limited Waiver]

 

 

Agreed to and Accepted By:

HCSMF SCOTIA SWAP

	 	 	 	 	 
	By: 

	 	/s/ ARLENE ARELLANO
 

Name: ARLENE ARELLANO
	 	 
	 

	 	Title:   AUTHORIZED SIGNATORY	 	 

[Signature Page to Limited Waiver]

 

 

Agreed to and Accepted By:

Loan Star State Trust

By: Highland Capital Management, L.P., As Investment Manager

	 	 	 	 	 
	By: 

	 	/s/ JASON POST
 

Name: JASON POST
	 	 
	 

	 	Title:  OPERATIONS DIRECTOR	 	 

[Signature Page to Limited Waiver]

 

 

Agreed to and Accepted By:

Longhorn Credit Funding, LLC

By: Highland Capital Management, L.P., As Investment Manager

	 	 	 	 	 
	By: 

	 	/s/ JASON POST
 

Name: JASON POST
	 	 
	 

	 	Title:  OPERATIONS DIRECTOR	 	 

[Signature Page to Limited Waiver]

 

 

Agreed to and Accepted By:

Red River CLO Ltd.

By: Highland Capital Management, L.P.

As Investment Manager

	 	 	 	 	 
	By: 

	 	/s/ JASON POST
 

Name: JASON POST
	 	 
	 

	 	Title:  OPERATIONS DIRECTOR	 	 

[Signature Page to Limited Waiver]

 

 

Agreed to and Accepted By:

Rockwall CDO II Ltd.

By: Highland Capital Management, L.P.

As Investment Manager

	 	 	 	 	 
	By: 

	 	/s/ JASON POST
 

Name: JASON POST
	 	 
	 

	 	Title:  OPERATIONS DIRECTOR	 	 

[Signature Page to Limited Waiver]

 

 

Agreed to and Accepted By:

Southfork CLO, Ltd.

By: Highland Capital Management, L.P., As Investment Manager

	 	 	 	 	 
	By: 

	 	/s/ JASON POST
 

Name: JASON POST
	 	 
	 

	 	Title:  OPERATIONS DIRECTOR	 	 

[Signature Page to Limited Waiver]

 

 

Agreed to and Accepted By:

Loan Funding VII LLC

By: Highland Capital Management, L.P., As Investment Manager

	 	 	 	 	 
	By: 

	 	/s/ JASON POST
 

Name: JASON POST
	 	 
	 

	 	Title:  OPERATIONS DIRECTOR	 	 

[Signature Page to Limited Waiver]

 

 

Agreed to and Accepted By:

GALE FORCE 1 CLO. LTD.

By: GSO/Blackstone Debt Funds Management LLC

as Collateral Manager

	 	 	 	 	 
	By: 

	 	/s/ Dean T. Criares
 

Name: Dean T. Criares
	 	 
	 

	 	Title:  Authorized Signatory	 	 

[Signature Page to Limited Waiver]

 

 

Agreed to and Accepted By:

GALE FORCE 3 CLO. LTD.

By: GSO/Blackstone Debt Funds Management LLC

as Collateral Manager

	 	 	 	 	 
	By: 

	 	/s/ Dean T. Criares
 

Name: Dean T. Criares
	 	 
	 

	 	Title:  Authorized Signatory	 	 

[Signature Page to Limited Waiver]

 

 

Agreed to and Accepted By:

FM LEVERAGED CAPITAL FUND II

By: GSO/Blackstone Debt Funds Management LLC

as Subadviser to FriedbergMilstein LLC

	 	 	 	 	 
	By: 

	 	/s/ Dean T. Criares
 

Name: Dean T. Criares
	 	 
	 

	 	Title:  Authorized Signatory	 	 

[Signature Page to Limited Waiver]

 

 

Agreed to and Accepted By:

MONUMENT PARK CDO LTD.

By: Blackstone Debt Advisors L.P.

as Collateral Manager

	 	 	 	 	 
	By: 

	 	/s/ Dean T. Criares
 

Name: Dean T. Criares
	 	 
	 

	 	Title:  Authorized Signatory	 	 

[Signature Page to Limited Waiver]

 

 

Agreed to and Accepted By:

CIFC Funding 2007-48, LTD.

	 	 	 	 	 
	By: 

	 	/s/ Michio Brunner
 

Name: Michio Brunner
	 	 
	 

	 	Title:  Authorized Signatory	 	 

[Signature Page to Limited Waiver]

 

 

Agreed to and Accepted By:

CIFC Funding 2007- IV, Ltd.

	 	 	 	 	 
	By: 

	 	/s/ Nga Tran
 

Name: Nga Tran
	 	 
	 

	 	Title:   Head of Institutional Relationships	 	 

[Signature Page to Limited Waiver]

 

 

Agreed to and Accepted By:

Denali Capital LLC, managing member of

DC Funding Partners LLC, Collateral Manager for

Spring Road CLO 2007-1, LTD., or an affiliate

	 	 	 	 	 
	By: 

	 	/s/ JOHN P. THACKER
 

Name: JOHN P. THACKER
	 	 
	 

	 	Title:  CHIEF CREDIT OFFICER	 	 

[Signature Page to Limited Waiver]

 

 

Agreed to and Accepted By:

Pangaea CLO 2007-1 LTD.

          By: Pangaea
Asset Management, LLC, its

          Collateral Manager

	 	 	 	 	 
	By: 

	 	/s/ Mark S. Maglaya
 

Name: Mark S. Maglaya
	 	 
	 

	 	Title:  Assistant Secretary	 	 

[Signature Page to Limited Waiver]

 

 

Agreed to and Accepted By:

Sargas CLO I LTD.

          By:
Sargas Asset Management, LLC, its

          Portfolio Manager

	 	 	 	 	 
	By: 

	 	/s/ Mark S. Maglaya
 

Name: Mark S. Maglaya
	 	 
	 

	 	Title:  Assistant Secretary	 	 

[Signature Page to Limited Waiver]

 

 

Agreed to and Accepted By:

ACA CLO 2007-1, LTD

By: Its investment advisor

Apidos Capital Management, LLC

	 	 	 	 	 
	By: 

	 	/s/ Vincent Ingato
 

Name: Vincent Ingato
	 	 
	 

	 	Title:   Managing Director	 	 

[Signature Page to Limited Waiver]

 

 

Schedule 1

Specified Amounts

	 	 	 	 	 	 	 	 	 
	Type of Payment	 	Specified Amount	 	 	Due Date
	1. Mandatory Prepayment from Net Cash Proceeds of a tax refund for the Fiscal Year ended December 31, 2008
	 	$	1,434,000.00	 	 	July 1, 2009
	2. Commitment Fees
	 	$	465.17	 	 	June 30, 2009
	3. Commitment Fees
	 	$	621.40	 	 	September 30, 2009
	4. Interest on the Term Advances and Revolving Credit Advances
	 	$	227,304.97	 	 	June 30, 2009
	5. Interest on the Term Advances
	 	$	275,383.36	 	 	July 1, 2009
	6. Interest on the Term Advances and Revolving Credit Advances
	 	$	2,319,859.52	 	 	September 30, 2009
	7. Amortization of the Term Advances
	 	$	212,500.00	 	 	June 30, 2009
	8. Amortization of the Term Advances
	 	$	212,500.00	 	 	September 30, 2009
	9. Letter of Credit Fees
	 	$	2,211.81	 	 	June 30, 2009
	10. Letter of Credit Fees
	 	$	16,739.81	 	 	September 30, 2009

 

Schedule 2

Specified Defaults

1. Event of Default under Section 6.01(c) of the Credit Agreement because the Borrower failed to
comply with the Total Leverage Ratio and Fixed Charge Coverage Ratio in Section 5.04 of the Credit
Agreement for the Measurement Periods ended December 31, 2008, March 31, 2009, June 30, 2009, and
September 30, 2009.

2. Event of Default under the Credit Agreement because the Borrower received an audit opinion with
respect to the Fiscal Year ended December 31, 2008 that contains a going concern qualification.

3. Default or Event of Default under Section 6.01(d) of the Credit Agreement because the Borrower
failed to comply with Section 5.03(a) of the Credit Agreement by not giving notice of any of the
Events of Default listed in paragraphs 1 and 2 above.

4. Default under Section 6.01(d) of the Credit Agreement because the Borrower failed to maintain
its corporate ratings from Moody’s and S&P.

5. Default or Event of Default under Section 6.01(e) of the Credit Agreement because the Borrower
failed to make payments due under any interest rate Hedge Agreement.

6. Default or Event of Default under Section 6.01(c) of the Credit Agreement because the Borrower
failed to comply with Section 5.01(p) of the Credit Agreement by failing to maintain interest rate
Hedge Agreements as set forth therein.

7. Event of Default under Section 6.01(d) of the Credit Agreement because the Loan Parties failed
to comply with Section 6(c) of Amendment No. 5 to Credit Agreement by not causing TLC Management
Services, Inc. to merge into the Borrower by September 21, 2009.exv10w1

 

    Exhibit 10.1

 

 

    VIASAT,
    INC.

    EMPLOYEE STOCK PURCHASE PLAN

    

    (As Amended and Restated Effective July 1, 2009)

 

    ViaSat, Inc., a corporation organized under the laws of the
    State of Delaware (the “Company”), hereby adopts The
    ViaSat, Inc. Employee Stock Purchase Plan (the
    “Plan”). The purposes of the Plan are as follows:

 

    (1) To assist employees of the Participating Companies (as
    defined below) in acquiring a stock ownership interest in the
    Company pursuant to a plan which is intended to qualify as an
    “employee stock purchase plan” within the meaning of
    Section 423(b) of the Internal Revenue Code of 1986, as
    amended.

 

    (2) To help employees provide for their future security and
    to encourage them to remain in the employment of the Company and
    its Subsidiary Corporations.

 

		
	
    1.  
	
    DEFINITIONS

 

    Whenever any of the following terms is used in the Plan with the
    first letter or letters capitalized, it shall have the following
    meaning unless the context clearly indicates to the contrary
    (such definitions to be equally applicable to both the singular
    and the plural forms of the terms defined):

 

    (a) “Authorization” has the meaning
    assigned to that term in Section 3(b) hereof.

 

    (b) “Board of Directors” or
    “Board” means the Board of Directors of the Company.

 

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

 

    (d) “Committee” means the committee
    appointed to administer the Plan pursuant to Section 12
    hereof.

 

    (e) “Company” means ViaSat, Inc., a
    Delaware corporation.

 

    (f) “Date of Exercise” means, with respect
    to any Option, the last day of the Offering Period for which the
    Option was granted.

 

    (g) “Date of Grant” means, with respect to
    any Option, the date upon which the Option is granted, as set
    forth in Section 3(a) hereof.

 

    (h) “Eligible Compensation” means the
    employee’s base pay.

 

    (i) “Eligible Employee” means an employee
    of a Participating Company (1) who does not, immediately
    after the Option is granted, own stock possessing five percent
    or more of the total combined voting power or value of all
    classes of stock of the Company, a Parent Corporation or a
    Subsidiary Corporation; (2) who has been employed by a
    Participating Company for not less than six months;
    (3) whose customary employment is for more than
    20 hours per week; and (4) whose customary employment
    is for more than five months in any calendar year. For purposes
    of paragraph (i), the rules of Section 424(d) of the Code
    with regard to the attribution of stock ownership shall apply in
    determining the stock ownership of an individual, and stock
    which an employee may purchase under outstanding options shall
    be treated as stock owned by the employee. During a leave of
    absence meeting the requirements of Treasury
    Regulation Section 1.421-7(h)(2),
    an individual shall be treated as an employee of the
    Participating Company employing such individual immediately
    prior to such leave. “Eligible Employee” shall not
    include any director of a Participating Company who does not
    render services to the Participating Company in the status of an
    employee within the meaning of Section 3401(c) of the Code.
    In addition, “Eligible Employee” shall not include any
    employee of a Participating Company who is a citizen or resident
    of a foreign jurisdiction if the grant of an Option under the
    Plan to such employee would be prohibited under the laws of such
    foreign jurisdiction or the grant of an Option to such employee
    in compliance with the laws of such foreign jurisdiction would
    cause the Plan to violate the requirements of Section 423
    of the Code, as determined by the Committee in its sole
    discretion.

    

 

    (j) “Offering Period” shall mean the
    six-month periods commencing January 1 and July 1 of each Plan
    Year as specified in Section 3(a) hereof or such other
    dates which are six months apart as determined by the Committee.
    Options shall be granted on the Date of Grant and exercised on
    the Date of Exercise as provided in Sections 3(a) and 4(a)
    hereof.

 

    (k) “Option” means an option granted under
    the Plan to an Eligible Employee to purchase shares of the
    Company’s Stock.

 

    (l) “Option Period” means, with respect to
    any Option, the period beginning upon the Date of Grant and
    ending upon the Date of Exercise.

 

    (m) “Option Price” has the meaning set
    forth in Section 4(b) hereof.

 

    (n) “Parent Corporation” means any
    corporation, other than the Company, in an unbroken chain of
    corporations ending with the Company if, at the time of the
    granting of the 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.

 

    (o) “Participant” means an Eligible
    Employee who has complied with the provisions of
    Section 3(b) hereof.

 

    (p) “Participating Company” means the
    Company and such present or future Subsidiary Corporations of
    the Company as the Board of Directors or the Committee shall
    from time to time designate.

 

    (q) “Payday” means the regular and
    recurring established day for payment of cash compensation to
    employees of the Company or any Participating Company.

 

    (r) “Plan” means The ViaSat, Inc. Employee
    Stock Purchase Plan.

 

    (s) “Plan Year” means the calendar year.

 

    (t) “Stock” means the shares of the
    Company’s common stock, $0.0001 par value.

 

    (u) “Subsidiary Corporation” means any
    corporation, other than the Company, in an unbroken chain of
    corporations beginning with the Company if, at the time of the
    granting of the Option, each of the corporations other than the
    last corporation in an 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.  
	
    STOCK
    SUBJECT TO THE PLAN

 

    Subject to the provisions of Section 9 hereof (relating to
    adjustments upon changes in the Stock) and Section 11
    hereof (relating to amendments of the Plan), the Stock which may
    be sold pursuant to Options granted under the Plan shall not
    exceed in the aggregate 2,250,000 shares, and may be
    unissued shares or treasury shares or shares bought on the
    market for purposes of the Plan.

 

		
	
    3.  
	
    GRANT OF
    OPTIONS

 

    (a) General Statement.  The Company
    shall offer Options under the Plan to all Eligible Employees in
    successive Offering Periods. Dates of Grant shall include
    January 1 and July 1 of each Plan Year
    and/or such
    other date or dates as the Committee may from time to time
    determine. Each Option shall expire on the Date of Exercise
    immediately after the automatic exercise of the Option pursuant
    to Section 4(a) hereof. The number of shares of Stock
    subject to each Option shall equal the payroll deductions
    authorized by each Participant in accordance with
    subsection (b) hereof for the Option Period, divided by the
    Option Price, except as provided in Section 4(a); provided,
    however, that the maximum number of shares subject to any Option
    shall not exceed 100,000. If by reason of the foregoing
    limitation any portion of the balance in a Participant’s
    account under the Plan is not applied to the purchase of Stock
    on a Date of Exercise, the Company shall pay to the Participant
    such amount in cash in one lump sum within sixty (60) days
    following such Date of Exercise, without any interest thereon.

 

    (b) Election to Participate; Payroll Deduction
    Authorization.  Except as provided in
    subsection (d) or (e) hereof, an Eligible Employee
    shall participate in the Plan only by means of payroll
    deduction. Each Eligible

    

 

    Employee who elects to participate in the Plan shall deliver to
    the Company during the calendar month preceding a Date of Grant
    and no later than five (5) working days before such Date of
    Grant a completed and executed written payroll deduction
    authorization in a form prepared by the Company (the
    “Authorization”). An Eligible Employee’s
    Authorization shall give notice of such Eligible Employee’s
    election to participate in the Plan for the next following
    Offering Period and subsequent Offering Periods and shall
    designate such Participant’s payroll deduction election.
    The cash compensation payable to a Participant for an Offering
    Period shall be reduced each Payday through a payroll deduction
    in an amount equal to the stated withdrawal amount specified in
    the Authorization payable on such Payday, and such amount shall
    be credited to the Participant’s account under the Plan.
    Any Authorization shall remain in effect until the Eligible
    Employee amends the same pursuant to this subsection, withdraws
    pursuant to Section 5 or ceases to be an Eligible Employee
    pursuant to Section 6.

 

    The Committee may adopt rules and procedures for the
    implementation and administration of payroll deduction
    elections, including the following:

 

    (i) whether a Participant’s payroll deduction election
    may be stated in terms of a dollar amount on each Payday, a
    percentage of Eligible Compensation on each Payday or in any
    other manner; provided that, in the absence of any determination
    by the Committee, a Participant’s payroll deduction
    election shall be stated in terms of a percentage of such
    Participant’s Eligible Compensation on each Payday; and

 

    (ii) any minimum or maximum dollar or percentage
    limitations that apply to a Participant’s payroll deduction
    election; provided that, in the absence of any determination by
    the Committee, the minimum payroll deduction to be made by a
    Participant per Payday is $10.00 (if a specific dollar amount is
    selected) or 1% of Eligible Compensation (if a specific
    percentage is selected); provided, further, that in the absence
    of any determination by the Committee, the maximum payroll
    deduction to be made by a Participant per Payday is 5% of
    Eligible Compensation.

 

    (c) $25,000 Limitation.  No
    Eligible Employee shall be granted an Option under the Plan
    which permits his or her rights to purchase Stock under the Plan
    and under all other employee stock purchase plans of the
    Company, any Parent Corporation or any Subsidiary Corporation
    subject to Section 423 to accrue at a rate which exceeds
    the $25,000 limit set forth in Section 423(b)(8) of the
    Code and the Treasury Regulations thereunder. If by reason of
    the foregoing limitation any portion of the balance in a
    Participant’s account under the Plan is not applied to the
    purchase of Stock on a Date of Exercise, the Company shall pay
    to the Participant such amount in cash in one lump sum within
    sixty (60) days following such Date of Exercise, without
    any interest thereon.

 

    (d) Leaves of Absence.  During a
    leave of absence meeting the requirements of Treasury
    Regulation Section 1.421-1(h)(2),
    a Participant may continue to participate in the Plan by making
    cash payments to the Company on each Payday equal to the amount
    of the Participant’s payroll deductions under the Plan for
    the Payday immediately preceding the first day of such
    Participant’s leave of absence.

 

    (e) Foreign Employees.  In order to
    facilitate participation in the Plan, the Committee may provide
    for such special terms applicable to Participants who are
    citizens or residents of a foreign jurisdiction, or who are
    employed by a Participating Company outside of the United
    States, as the Committee may consider necessary or appropriate
    to accommodate differences in local law, tax policy or custom.
    Such special terms may not be more favorable than the terms of
    Options granted under the Plan to Eligible Employees who are
    residents of the United States. Moreover, the Committee may
    approve such supplements to, or amendments, restatements or
    alternative versions of, this Plan as it may consider necessary
    or appropriate for such purposes without thereby affecting the
    terms of this Plan as in effect for any other purpose. No such
    special terms, supplements, amendments or restatements shall
    include any provisions that are inconsistent with the terms of
    this Plan as then in effect unless this Plan could have been
    amended to eliminate such inconsistency without further approval
    by the stockholders of the Company.

 

		
	
    4.  
	
    EXERCISE
    OF OPTIONS; OPTION PRICE

 

    (a) General Statement.  Each
    Participant automatically and without any act on such
    Participant’s part shall be deemed to have exercised such
    Participant’s Option on the Date of Exercise to the extent
    that the balance then in the Participant’s account under
    the Plan is sufficient to purchase at the Option Price whole
    shares of the Stock subject to the Option. Any cash in lieu of
    fractional shares of Stock remaining after the purchase of whole
    shares of

    

 

    Stock upon exercise of an Option will be credited to such
    Participant’s account and carried forward and applied
    toward the purchase of whole shares of Stock pursuant to the
    Option, if any, granted to such Participant for the next
    following Offering Period. Fractional shares will not be issued.

 

    (b) Option Price Defined.  The
    option price per share of Stock (the “Option Price”)
    to be paid by a Participant upon the exercise of the
    Participant’s Option shall be equal to 85% of the lesser of
    the fair market value of a share of Stock on the Date of
    Exercise or the fair market value of a share of Stock on the
    Date of Grant. The fair market value of a share of Stock as of a
    given date shall be: (i) the closing price of a share of
    Stock on the principal exchange on which the Stock is then
    trading, including, without limitation, The Nasdaq Stock Market,
    if any, on such date, or, if shares were not traded on such
    date, then on the next preceding trading day during which a sale
    occurred; (ii) if the Stock is not traded on an exchange
    but is quoted on a national market or other quotation system,
    (1) the last sales price on such date, or if no sales
    occurred on such date, then on the next preceding trading day
    during which a sale occurred, as reported by such national
    market or quotation system; (iii) if the Stock is not
    publicly traded on an exchange and not quoted on a national
    market or a quotation system, the mean between the closing bid
    and asked prices for a share of Stock on such date, or, if
    shares were not traded on such date, then on the next preceding
    trading day during which a sale occurred, as determined in good
    faith by the Committee; or (iv) if the Stock is not
    publicly traded, the fair market value of a share of Stock
    established by the Committee acting in good faith.

 

    (c) Delivery of Shares.  As soon as
    practicable after the exercise of any Option, the Company will
    deliver to the Participant or his or her nominee the whole
    shares of Stock purchased by the Participant from funds credited
    to the Participant’s account under the Plan. Shares issued
    pursuant to the Plan may be evidenced in such manner as the
    Committee may determine and may be issued in certificated form
    or issued pursuant to book-entry procedures. In the event the
    Company is required to obtain authority from any commission or
    agency to issue any such shares, the Company shall seek to
    obtain such authority. The inability of the Company to obtain
    authority from any such commission or agency which the Committee
    in its absolute discretion deems necessary for the lawful
    issuance of any such shares shall relieve the Company from
    liability to any Participant except to pay to the Participant
    the amount of the balance in the Participant’s account in
    cash in one lump sum without any interest thereon.

 

    (d) Pro Rata Allocations.  If the
    total number of shares of Stock for which Options are to be
    exercised on any Date of Exercise exceeds the lesser of
    (i) the number of shares of Stock that were available for
    sale under the Plan on the Date of Grant of the applicable
    Offering Period or (ii) the number of shares remaining
    unsold under the Plan (after deduction of all shares for which
    Options have theretofore been exercised) on such Date of
    Exercise, the Committee shall make a pro rata allocation of the
    available remaining shares in as nearly a uniform manner as
    shall be practicable and any balance of payroll deductions
    credited to the accounts of Participants which have not been
    applied to the purchase of shares of Stock shall be paid to such
    Participants in cash in one lump sum within sixty (60) days
    after the Date of Exercise, without any interest thereon.

 

		
	
    5.  
	
    WITHDRAWAL
    FROM THE PLAN

 

    (a) General Statement.  Any
    Participant may withdraw from participation under the Plan at
    any time except that no Participant may withdraw during the last
    ten (10) days of any Offering Period. A Participant who
    wishes to withdraw from the Plan must deliver to the Company a
    notice of withdrawal in a form prepared by the Company (the
    “Withdrawal Election”) not later than ten
    (10) days prior to the Date of Exercise during any Offering
    Period. Upon receipt of a Participant’s Withdrawal
    Election, the Company shall pay to the Participant the amount of
    the balance in the Participant’s account under the Plan in
    cash in one lump sum within sixty (60) days, without any
    interest thereon. Upon receipt of a Participant’s
    Withdrawal Election by the Company, the Participant shall cease
    to participate in the Plan and the Participant’s Option
    shall terminate.

 

    (b) Eligibility Following
    Withdrawal.  A Participant who withdraws from
    the Plan and who is still an Eligible Employee shall be eligible
    to participate again in the Plan as of any subsequent Date of
    Grant by delivering to the Company an Authorization pursuant to
    Section 3(b) hereof.

    

 

 

		
	
    6.  
	
    TERMINATION
    OF EMPLOYMENT

 

    (a) Termination of Employment Other than by
    Death.  If the employment of a Participant
    terminates other than by death, the Participant’s
    participation in the Plan automatically and without any act on
    the Participant’s part shall terminate as of the date of
    the termination of the Participant’s employment. As soon as
    practicable after such a termination of employment, the Company
    will pay to the Participant the amount of the balance in the
    Participant’s account under the Plan without any interest
    thereon. Upon a Participant’s termination of employment
    covered by this Section 6(a), the Participant’s
    Authorization, interest in the Plan and Option under the Plan
    shall terminate. A transfer of employment from one Participating
    Company to another shall not be treated as a termination of
    employment.

 

    (b) Termination By Death.  If the
    employment of a participant is terminated by the
    Participant’s death, the executor of the Participant’s
    will or the administrator of the Participant’s estate by
    written notice to the Company may request payment of the balance
    in the Participant’s account under the Plan, in which event
    the Company shall make such payment without any interest thereon
    as soon as practicable after receiving such notice; upon receipt
    of such notice the Participant’s Authorization, interest in
    the Plan and Option under the Plan shall terminate. If the
    Company does not receive such notice prior to the next Date of
    Exercise, the Participant’s Option shall be deemed to have
    been exercised on such Date of Exercise and any cash remaining
    in such Participant’s account thereafter shall be
    distributed in cash without interest thereon pursuant to
    Section 5(a) hereof.

 

		
	
    7.  
	
    RESTRICTION
    UPON ASSIGNMENT

 

    An Option granted under the Plan shall not be transferable other
    than by will or the laws of descent and distribution, and is
    exercisable during the Participant’s lifetime only by the
    Participant. Except as provided in Section 6(b) hereof, an
    Option may not be exercised to any extent except by the
    Participant. The Company shall not recognize and shall be under
    no duty to recognize any assignment or alienation of the
    Participant’s interest in the Plan, the Participant’s
    Option or any rights under the Participant’s Option.

 

		
	
    8.  
	
    NO RIGHTS
    OF STOCKHOLDERS UNTIL SHARES ISSUED

 

    With respect to shares of Stock subject to an Option, a
    Participant shall not be deemed to be a stockholder of the
    Company, and the Participant shall not have any of the rights or
    privileges of a stockholder, until such shares have been issued
    to the Participant or his or her nominee following exercise of
    the Participant’s Option. No adjustments shall be made for
    dividends (ordinary or extraordinary, whether in cash
    securities, or other property) or distribution or other rights
    for which the record date occurs prior to the date of such
    issuance, except as otherwise expressly provided herein.

 

		
	
    9.  
	
    CHANGES
    IN THE STOCK; ADJUSTMENTS OF AN OPTION

 

    Whenever any change is made in the Stock or to Options
    outstanding under the Plan, by reason of a stock split, stock
    dividend, recapitalization or other subdivision, combination, or
    reclassification of shares, appropriate action shall be taken by
    the Committee to adjust accordingly the number of shares of
    Stock subject to the Plan and the number and the Option Price of
    shares of Stock subject to the Options outstanding under the
    Plan to preserve, but not increase, the rights of Participants
    hereunder.

 

		
	
    10.  
	
    USE OF
    FUNDS; NO INTEREST PAID

 

    All funds received or held by the Company under the Plan shall
    be included in the general funds of the Company free of any
    trust or other restriction and may be used for any corporate
    purpose. No interest will be paid to any Participant or credited
    to any Participant’s account under the Plan with respect to
    such funds.

 

		
	
    11.  
	
    AMENDMENT
    OF THE PLAN

 

    The Board of Directors may amend, suspend, or terminate the Plan
    at any time and from time to time, provided that approval of the
    Company’s stockholders shall be required to amend the Plan
    (i) to increase the number of shares of Stock, or change
    the type of securities, reserved for sale pursuant to Options
    under the Plan, (ii) to decrease the

    

 

    Option Price below a price computed in the manner stated in
    Section 4(b) hereof, (iii) to alter the requirements
    for eligibility to participate in the Plan or (iv) in any
    manner that would cause the Plan to no longer be an
    “employee stock purchase plan” within the meaning of
    Section 423(b) of the Code.

 

		
	
    12.  
	
    ADMINISTRATION
    BY COMMITTEE; RULES AND REGULATIONS

 

    (a) Appointment of Committee.  The
    Plan shall be administered by the Committee, which shall be
    composed of two or more members of the Board of Directors, each
    of whom is both a “non-employee director” as defined
    by
    Rule 16b-3
    under the Securities Exchange Act of 1934, as amended, and an
    “outside director” for purposes of Section 162(m)
    of the Code. Each member of the Committee shall serve for a term
    commencing on a date specified by the Board of Directors and
    continuing until the member dies or resigns or is removed from
    office by the Board of Directors. The Committee at its option
    may utilize the services of an agent to assist in the
    administration of the Plan including establishing and
    maintaining an individual securities account under the Plan for
    each Participant.

 

    (b) Duties and Powers of
    Committee.  It shall be the duty of the
    Committee to conduct the general administration of the Plan in
    accordance with the provisions of the Plan. The Committee shall
    have the power to interpret the Plan and the terms of the
    Options and to adopt such rules for the administration,
    interpretation, and application of the Plan as are consistent
    therewith and to interpret, amend or revoke any such rules. In
    its absolute discretion, the Board may at any time and from time
    to time exercise any and all rights and duties of the Committee
    under the Plan.

 

    (c) Majority Rule.  The Committee
    shall act by a majority of its members in office. The Committee
    may act either by vote at a meeting or by a memorandum or other
    written instrument signed by a majority of the Committee.

 

    (d) Compensation; Professional Assistance; Good Faith
    Actions.  All expenses and liabilities
    incurred by members of the Committee in connection with the
    administration of the Plan shall be borne by the Company. The
    Committee may, with the approval of the Board, employ attorneys,
    consultants, accountants, appraisers, brokers or other persons.
    The Committee, the Company and its officers and directors shall
    be entitled to rely upon the advice, opinions or valuations of
    any such persons. All actions taken and all interpretations and
    determinations made by the Committee in good faith shall be
    final and binding upon all Participants, the Company and all
    other interested persons. No member of the Committee shall be
    personally liable for any action, determination or
    interpretation made in good faith with respect to the Plan or
    the Options, and all members of the Committee shall be fully
    protected by the Company in respect to any such action,
    determination, or interpretation.

 

		
	
    13.  
	
    NO RIGHTS
    AS AN EMPLOYEE

 

    Nothing in the Plan shall be construed to give any person
    (including any Eligible Employee or Participant) the right to
    remain in the employ of the Company, a Parent Corporation or a
    Subsidiary Corporation or to affect the right of the Company,
    any Parent Corporation or any Subsidiary Corporation to
    terminate the employment of any person (including any Eligible
    Employee or Participant) at any time, with or without cause.

 

		
	
    14.  
	
    MERGER,
    ACQUISITION OR LIQUIDATION OF THE COMPANY

 

    In the event of the merger or consolidation of the Company into
    another corporation, the acquisition by another corporation of
    all or substantially all of the Company’s assets or 50% or
    more of the Company’s then outstanding voting stock, the
    liquidation or dissolution of the Company or any other
    reorganization of the Company, the Date of Exercise with respect
    to outstanding Options shall be the business day immediately
    preceding the effective date of such merger, consolidation,
    acquisition, liquidation, dissolution, or reorganization (or on
    such other prior date as is determined by the Committee) unless
    the Committee shall, in its sole discretion, provide for the
    assumption or substitution of such Options in a manner complying
    with Section 424(a) of the Code.

 

		
	
    15.  
	
    TERM;
    APPROVAL BY STOCKHOLDERS

 

    This amended and restated Plan shall be effective July 1,
    2009. No Options granted under this amended and restated Plan
    shall be exercised, and no shares of Stock shall be issued
    hereunder, until this amended and restated Plan shall have been
    approved by the stockholders of the Company (such stockholder
    approval shall be prior to

    

 

    December 31, 2009). In the event this amended and restated
    Plan shall not have been approved by the stockholders of the
    Company prior to December 31, 2009, all Options granted
    under this amended and restated Plan shall be canceled and
    become null and void.

 

    The Plan shall terminate upon such date as is determined by the
    Company in its sole discretion. The Plan shall automatically be
    suspended on the date on which all shares available for issuance
    under the Plan shall have been sold pursuant to Options
    exercised under the Plan pending approval of an increase in the
    number of shares available for issuance under the Plan. No
    Option may be granted during any period of suspension of the
    Plan or after termination of the Plan.

 

		
	
    16.  
	
    EFFECT
    UPON OTHER PLANS

 

    The adoption of the Plan shall not affect any other compensation
    or incentive plans in effect for the Company, any Parent
    Corporation or any Subsidiary Corporation. Nothing in this Plan
    shall be construed to limit the right of the Company, any Parent
    Corporation or any Subsidiary Corporation (a) to establish
    any other forms of incentives or compensation for employees of
    the Company, any Parent Corporation or any Subsidiary
    Corporation or (b) to grant or assume options otherwise
    than under this Plan in connection with any proper corporate
    purpose, including, but not by way of limitation, the grant or
    assumption of options in connection with the acquisition, by
    purchase, lease, merger, consolidation or otherwise, of the
    business, stock or assets of any corporation, firm or
    association.

 

		
	
    17.  
	
    CONDITIONS
    TO ISSUANCE OF SHARES

 

    The Company shall not be required to issue or deliver any
    certificate or certificates for, or make any book entries
    evidencing, shares of Stock purchased upon the exercise of
    Options prior to fulfillment of all the following conditions:

 

    (a) The admission of such shares to listing on all stock
    exchanges, if any, on which the Stock is then listed; and

 

    (b) The completion of any registration or other
    qualification of such shares under any state or federal law or
    under the rulings or regulations of the Securities and Exchange
    Commission or any other governmental regulatory body which the
    Committee shall, in its absolute discretion, deem necessary or
    advisable; and

 

    (c) The obtaining of any approval or other clearance from
    any state or federal governmental agency which the Committee
    shall, in its absolute discretion, determine to be necessary or
    advisable; and

 

    (d) The payment to the Company of all amounts which it is
    required to withhold under federal, state or local law upon
    exercise of the Option; and

 

    (e) The lapse of such reasonable period of time following
    the exercise of the Option as the Committee may from time to
    time establish for reasons of administrative convenience.

 

		
	
    18.  
	
    CONFORMITY
    TO SECURITIES LAWS

 

    Notwithstanding any other provision of this Plan, the
    participation in this Plan and all elections thereunder shall be
    subject to, and may be limited by, such rules and restrictions
    as the Committee may prescribe in order to comply with all
    applicable federal and state securities laws. Without limiting
    the generality of the foregoing, this Plan and participation in
    this Plan by any individual who is then subject to
    Section 16 of the Securities Exchange Act of 1934, as
    amended (the “Exchange Act”) shall be subject to any
    additional limitations set forth in any applicable exemptive
    rule under Section 16 of the Exchange Act (including any
    amendment to
    Rule 16b-3
    of the Exchange Act) that are requirements for the application
    of such exemptive rule. To the extent permitted by applicable
    law, the Plan shall be deemed amended to the extent necessary to
    conform to such applicable exemptive rule.

 

		
	
    19.  
	
    NOTIFICATION
    OF DISPOSITION

 

    Each Participant shall give prompt notice to the Company of any
    disposition or other transfer of any shares of Stock purchased
    upon exercise of an Option if such disposition or transfer is
    made (a) within two (2) years from the Date of Grant
    of the Option or (b) within one (1) year after the
    transfer of such shares to such Participant upon

    

 

    exercise of such Option. Such notice shall specify the date of
    such disposition or other transfer and the amount realized, in
    cash, other property, assumption of indebtedness or other
    consideration, by the Participant in such disposition or other
    transfer.

 

		
	
    20.  
	
    NOTICES

 

    Any notice to be given under the terms of the Plan to the
    Company shall be addressed to the Company in care of its
    Secretary and any notice to be given to any Eligible Employee or
    Participant shall be addressed to such Employee at such
    Employee’s last address as reflected in the Company’s
    records. By a notice given pursuant to this Section, either
    party may designate a different address for notices to be given
    to it, him or her. Any notice which is required to be given to
    an Eligible Employee or a Participant shall, if the Eligible
    Employee or Participant is then deceased, be given to the
    Eligible Employee’s or Participant’s personal
    representative if such representative has previously informed
    the Company of his or her status and address by written notice
    under this Section. Any notice shall have been deemed duly given
    if personally delivered or if enclosed in a properly sealed
    envelope or wrapper addressed as aforesaid at the time it is
    deposited (with postage prepaid) in a post office or branch post
    office regularly maintained by the United States Postal Service.

 

		
	
    21.  
	
    HEADINGS

 

    Headings are provided herein for convenience only and are not to
    serve as a basis for interpretation or construction of the Plan.

 

		
	
    22.  
	
    EQUAL
    RIGHTS AND PRIVILEGES

 

    Subject to Section 3(e) hereof, all Eligible Employees
    shall have equal rights and privileges under this Plan so that
    this Plan qualifies as an “employee stock purchase
    plan” within the meaning of Section 423 of the Code or
    applicable Treasury Regulations thereunder. Subject to
    Section 3(e) hereof, any provision of this Plan that is
    inconsistent with Section 423 or applicable Treasury
    Regulations will, without further act or amendment by the
    Company, the Board of Directors or the Committee, be reformed to
    comply with the equal rights and privileges requirement of
    Section 423 of the Code or applicable Treasury Regulations.

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