Document:

EX-4.2

 

EXHIBIT 4.2

RULES

OF THE

OSI PHARMACEUTICALS

SAVINGS-RELATED SHARE OPTION SCHEME

(as amended by the

Board of Directors of OSI Pharmaceuticals (UK) Limited

on the 7th day of June 2005)

 

 

INDEX

	 	 	 	 	 	 	 
	1
	 	Definitions and Interpretation	 	 	1	 
	 
	 	 	 	 	 	 
	2
	 	Invitations to apply for Options	 	 	6	 
	 
	 	 	 	 	 	 
	3
	 	Scaling Down	 	 	7	 
	 
	 	 	 	 	 	 
	4
	 	Grant of Options	 	 	8	 
	 
	 	 	 	 	 	 
	5
	 	Dealings in Options	 	 	8	 
	 
	 	 	 	 	 	 
	6
	 	Limits on Grant of Options	 	 	9	 
	 
	 	 	 	 	 	 
	7
	 	Exercise of Options	 	 	9	 
	 
	 	 	 	 	 	 
	8
	 	Lapse of Options	 	 	10	 
	 
	 	 	 	 	 	 
	9
	 	Takeovers	 	 	12	 
	 
	 	 	 	 	 	 
	10
	 	Variation of Share Capital	 	 	14	 
	 
	 	 	 	 	 	 
	11
	 	Manner of Exercise of Options	 	 	14	 
	 
	 	 	 	 	 	 
	12
	 	Alteration of the Rules	 	 	16	 
	 
	 	 	 	 	 	 
	13
	 	Employment	 	 	16	 
	 
	 	 	 	 	 	 
	14
	 	Administration	 	 	16	 

Appendices

Letter of Invitation

Form of Application

Option Certificate

Notice of Exercise of Option

 

 

RULES OF THE OSI PHARMACEUTICALS

SAVINGS-RELATED SHARE OPTION SCHEME

	1	 	Definitions and Interpretation

	 	1.1	 	In these Rules, including these definitions, the following words and
expressions shall except insofar as the context otherwise requires have the meanings
set opposite them respectively:-

	 	 	 	 	 
	 

	 	Acquiring Company
	 	a company which has obtained control of OSI in terms of Rule 9.1
	 
	 	 	 	 
	 

	 	Acquisition Price
	 	the price at which each Share subject to an Option may be
acquired on the exercise of that Option which shall, subject to Rule 10, be
the higher of:-

	 	(a)	 	the
nominal (ie par) value of a Share; and

	 	(b)	 	such
price as the Board shall determine but being not
less than 80% of the Market Value of a Share on the
day the invitation to apply for that Option was
issued pursuant to Rule 2.

	 	 	 	 	 
	 

	 	Act
	 	the Income and Corporation Taxes Act 1988.
	 
	 	 	 	 
	 

	 	Appropriate Period
	 	the meaning given in paragraph 15(2) of Schedule 9
	 
	 	 	 	 
	 

	 	Associated Company
	 	the meaning given in Paragraph 23 of Schedule 9 by virtue of
Section 187 of the Act
	 
	 	 	 	 
	 

	 	Auditors
	 	the auditors of OSI (acting as experts and not as arbiters)
	 
	 	 	 	 
	 

	 	Board
	 	the board of directors of OSI or, except in Rule 14.3, a
duly authorised committee thereof

 

 

	 	 	 	 	 
	 

	 	Bonus Date
	 	the earliest date on which a bonus is payable under
the Savings Contract
	 
	 	 	 	 
	 

	 	Commencement Date
	 	the date on which the Company shall receive notice that the
Inland Revenue has formally approved the Scheme under Schedule 9
	 
	 	 	 	 
	 

	 	Company
	 	OSI Pharmaceuticals (UK) Limited (formerly known as Aston Molecules) with
registered number 1709877
	 
	 	 	 	 
	 

	 	Control
	 	the meaning given in Section 840 of the Act
	 
	 	 	 	 
	 

	 	Date of Grant
	 	the date on which the application for an Option is
accepted in accordance with Rule 4
	 
	 	 	 	 
	 

	 	Eligible Employee
	 	any director or employee of any Participating Company who

	 	(a)	 	has on
the day preceding the date of issue of the relevant
invitations pursuant to Rule 2.1 been a director or
employee for such minimum qualifying period not
exceeding five years immediately prior to the Date
of Grant as the Board may from time to time
determine, and

	 	(b)	 	is
chargeable to tax in respect of his office or
employment under Case I of Schedule E of the Act;
and

	 	(c)	 	in the
case of a director, normally devotes to his duties
twenty five hours or more per week

 

 

	 	 	 	 	 
	 

	 	 	 	and any other director or employee of any Participating
Company who is nominated by the Board to be an Eligible
Employee
	 
	 	 	 	 
	 

	 	Market Value
	 	on any day the market value of a Share determined in accordance with
the provisions of Part VIII of the Taxation of Chargeable Gains Act 1992 and
agreed in advance for the purposes of the Scheme with Shares Valuation
Division of the Inland Revenue as being valid at the date of an invitation to
participate pursuant to Rule 2.
	 
	 	 	 	 
	 	 	Maximum Contribution in relation to any invitation the lower of:-

	 	(a)	 	the
maximum aggregate amount of monthly contributions
to Savings Contracts permitted by Paragraph
24(2)(a) of Schedule 9; and
	 
	 	(b)	 	such
amount, being a multiple of £1 and not less than
£5, as the Board shall determine

	 	 	 	 	 
	 

	 	Nasdaq
	 	the US NASDAQ National Market System
	 
	 	 	 	 
	 

	 	Option
	 	a right granted in accordance with the Rules to subscribe for or acquire
Shares
	 
	 	 	 	 
	 

	 	Option Holder
	 	an individual to whom an Option has been granted or, if that
individual has died, his executors or personal representatives
	 
	 	 	 	 
	 

	 	OSI
	 	OSI Pharmaceuticals, Inc
	 
	 	 	 	 
	 

	 	Participating Company
	 	the Company and any other company of which OSI has Control
and which is nominated by the Board to be a Participating Company
	 
	 	 	 	 
	 

	 	Rules
	 	these rules as altered or varied from time to time

 

 

	 	 	 	 	 
	 

	 	Savings Contract
	 	a contract under a certified contractual savings scheme within
the meaning of Section 326 of the Act which has been approved by the Board of
Inland Revenue pursuant to Paragraph 16 of Schedule 9
	 
	 	 	 	 
	 

	 	Schedule 9
	 	Schedule 9 to the Act
	 
	 	 	 	 
	 

	 	Scheme
	 	the savings-related share option scheme constituted and governed by the
Rules
	 
	 	 	 	 
	 

	 	Share
	 	a common share in the capital of OSI which satisfies the
conditions specified in Paragraphs 10 to 14 inclusive of Schedule 9
	 
	 	 	 	 
	 

	 	Specified Age
	 	65 years of age

	 	1.2	 	In these Rules, except in so far as the context otherwise requires:-

	 	1.2.1	 	words denoting the singular shall include the plural and vice versa;
	 
	 	1.2.2	 	words denoting the masculine gender shall include feminine
gender; and
	 
	 	1.2.3	 	any reference to any enactment shall be construed as a
reference to that enactment as from time to time amended, extended or
re-enacted.

2 Invitations to apply for Options

	 	2.1	 	The Board may at any time invite every Eligible Employee to apply for the
grant of an Option to acquire Shares.
	 
	 	 	 	No invitation may be made after the tenth anniversary of the Commencement Date.
	 
	 	2.2	 	Each invitation shall specify:-

 

 

	 	2.2.1	 	the date, being not less than fourteen days after the
issue of the invitation, by which an application for the grant of an Option
must be made;
	 
	 	2.2.2	 	the Acquisition Price at which Shares may be acquired on
the exercise of any Option granted in response to the applications;
	 
	 	2.2.3	 	the amount of the Maximum Contribution.

	 	2.3	 	Each invitation shall specify, for the purposes of the Scheme that the
Eligible Employee will require to enter into a three year Savings Contract.
	 
	 	2.4	 	Each invitation shall be accompanied by a proposal form for a Savings
Contract and a form of application for option in such form as the Board shall from
time to time prescribe which shall provide for the applicant to state:-

	 	2.4.1	 	the monthly savings contribution (being a multiple of
£1.00 and not less than £5) which he wishes to make under the related Savings
Contract; and
	 
	 	2.4.2	 	that his proposed monthly savings contribution will not
exceed the Maximum Contribution and will not, when added to any monthly
savings contributions then being made under any other Savings Contract linked
to an option granted under the Scheme or any other scheme approved under
Section 9, exceed the maximum amount of monthly contributions to Savings
Contracts permitted by Paragraph 24(2)(a) of Schedule 9;

	 	2.5	 	Each application shall be deemed to be an application for an Option to
acquire the largest whole number of Shares which can be bought at the Acquisition
Price with the expected repayment under the related Savings Contract at the Bonus
Date.

3 Scaling Down

	 	3.1	 	If the Board receives valid applications for Options to acquire an aggregate
number of Shares which exceeds the limit fixed under Rule 6.1 in respect of

 

 

	 	 	 	that invitation, then the Board shall apply such one or more of the following
scaling down methods in such manner as the Board shall in its discretion consider
appropriate to the extent necessary to eliminate the excess:-

	 	3.1.1	 	the monthly savings contributions chosen by each applicant
shall be reduced pro rata, except that no such contribution shall be reduced
to below £5;
	 
	 	3.1.2	 	each election for a bonus to be included in the repayment
under the Savings Contract shall be deemed to be an election for no bonuses
to be so included;
	 
	 	3.1.3	 	applications will be selected by lot, each based on a
monthly savings contribution of £5.00 and the inclusion of no bonus in the
repayment under the Savings Contract; and
	 
	 	3.1.4	 	any other method which the Board shall consider
appropriate and is acceptable to the Inland Revenue.

	 	3.2	 	Each application for an Option shall be deemed to have been modified or
withdrawn to the extent necessary to take account or the application of Rule 3.1, and
the Board shall alter and/or complete each Savings Contract proposal form in such
manner as may be necessary to reflect any resulting change in Bonus Date and/or
reduction in monthly savings contributions.

4 Grant of Options

	 	4.1	 	Not later than the thirtieth day (or, where the provisions of Rule 3 apply,
not later than the forty-second day) following the date on which the invitation
mentioned in Rule 2.2 was issued the Board shall grant, or shall procure that there is
granted to each applicant who is still an Eligible Employee and is not precluded from
participation in the Scheme by virtue of Paragraph 8 of Schedule 9 an Option to
acquire the number of Shares for which, in accordance with Rule 2.5 and Rule 3, he is
deemed to have applied.

 

 

	 	4.2	 	As soon as possible after Options have been granted the Board shall issue or
procure that there is issued a certificate of Option in respect of each Option in such
form as the Board may determine.

5 Dealings in Options

	 	5.1	 	No Option may be transferred, assigned or charged in any way. If any attempt
is made to transfer, assign or charge any Option shall lapse immediately. Each Option
certificate shall carry a statement to this effect. Nothing in this Rule shall
detract from the rights or the executors or personal representatives of a deceased
Option Holder under the Rules to exercise his Option in his place.
	 
	 	5.2	 	Any Option Holder may at any time within the period of 30 days after the
grant to him of an Option disclaim such Option in whole or in part by giving notice to
the Company to that effect. To the extent that an Option is disclaimed, it shall be
deemed never to have been granted. No consideration shall be payable for any such
disclaimer.
	 
	 	5.3	 	Any Option Holder may surrender any Option at any time.

6 Limits on Grants of Options

	 	6.1	 	The Board shall, before issuing invitations on any occasions, fix a limit on
the number of Shares which are to be available in respect of that invitation in order
to ensure that Shares remain available for subsequent invitations.
	 
	 	6.2	 	No Option shall be granted to an Eligible Employee if the monthly savings
contribution under the related Savings Contract, when added to the monthly savings
contributions then being made under any other Savings Contract, would exceed the
maximum for the time being supplied in Paragraph 24(2)(a) of Schedule 9.

7 Exercise of Options

	 	7.1	 	Subject to the provisions of Rule 11, any Option may be exercised in whole or
in part at any time following the earliest to occur of the following events

 

 

	 	7.1.1	 	the Bonus Date
	 
	 	7.1.2	 	the death of the Option Holder
	 
	 	7.1.3	 	the Option Holder ceasing to be a Director or employee of
any Participating Company by reason of injury, disability, redundancy within
the meaning of the Employment Rights Act 1997 or retirement on reaching the
Specified Age or any other age at which he is bound to retire in accordance
with the terms of his contract of employment
	 
	 	7.1.4	 	the Option Holder ceasing to hold an office or employment
by virtue of which he is eligible to participate in the Scheme by reason only
that:-

	 	7.1.4.1	 	the office or employment is in a company of which OSI ceases to
have control; or
	 
	 	7.1.4.2	 	the office or employment relates to a business or part of a
business which is transferred to an entity which is neither an
Associated Company of the Company nor a company of which the Company
has Control.

	 	7.1.5	 	the Option becoming exercisable in accordance with Rule 9

	 	7.2	 	If at the Bonus Date an Option Holder holds an office or employment in a
company which is not a Participating Company but which is:-

	 	7.2.1	 	an Associated Company of the Company; or
	 
	 	7.2.2	 	a company of which the Company has Control

	 
	 	the Option may be exercised in whole or in part after the Bonus Date.

	 	7.3	 	No person shall for the purposes of Rule 7 and Rule 8 be treated as ceasing
to be employed by any Participating Company until he is no longer employed

 

 

	 	 	 	by the Company, any Associated Company or company of which the Company has
Control.

8 Lapse of Options

	 	8.1	 	An Option shall lapse on the earliest to occur of the following events:-

	 	8.1.1	 	except where the Option Holder has died, the expiry of six
months following the Bonus Date;
	 
	 	8.1.2	 	where the Option Holder dies during the six months
following the Bonus Date, the first anniversary of the Bonus Date;
	 
	 	8.1.3	 	where the Option Holder had died before the Bonus Date,
the first anniversary of his death;
	 
	 	8.1.4	 	unless the Option Holder had died, the expiry of six
months after the Option has become exercisable by virtue of Rule 7.1.3 or
Rule 7.1.4;
	 
	 	8.1.5	 	the expiry of six months after the Option has become
exercisable in accordance with Rule 9 (subject always to the provisions of
Rule 9.5);
	 
	 	8.1.6	 	the Option Holder ceasing to be a Director or employee of
any Participating Company in circumstances in which the Option does not
become exercisable;
	 
	 	8.1.7	 	the Option Holder being adjudicated bankrupt or declared
apparently insolvent; and
	 
	 	8.1.8	 	if before an Option is capable of exercise the Option
Holder stops or gives notice that he intends to stop paying the monthly
contributions under the Savings Contract, or is deemed under the terms of the
Savings Contract to have given such notice, or if he makes an application for
repayment of the contributions made by him to the Savings Contract.

 

 

	 	8.2	 	If an Option Holder continues to be employed by a Participating Company after
the date on which he reaches the Specified Age he may exercise any Option within six
months following that date.

9 Takeovers

	 	9.1	 	If any person obtains Control of OSI as a result of making:-

	 	9.1.1	 	a general offer to acquire the whole of the issued common
share capital of OSI (other than that which is already owned by such person)
which is made on a condition such that if it is satisfied the person making
the offer will have Control of OSI; or
	 
	 	9.1.2	 	a general offer to acquire all the shares in OSI which are
of the same class as the Shares and which are not already owned by that
person

	 	 	 	then any Option may be exercised within six months of the time when the person
making the offer has obtained Control of OSI and any condition subject to which
the offer is made has been satisfied. If a person obtains Control of OSI as
contemplated by this Rule the Board shall as soon as practicable notify all Option
Holders of that fact.
	 
	 	9.2	 	If the Company passes a resolution for voluntary winding up, any Option may
be exercised within six months of the passing of the resolution.
	 
	 	9.3	 	For the purposes of this Rule 9 (other than Rule 9.5) a person shall be
deemed to have obtained Control of OSI if he and others acting in concert with him
have together obtained Control of it.
	 
	 	9.4	 	The exercise of an Option pursuant to the preceding provisions of this Rule 9
shall be subject to the provisions of Rule 11.
	 
	 	9.5	 	If as a result of the occurrence of either of the events specified in Rule
9.1 a company has obtained Control of OSI, OSI shall seek the agreement of the
Acquiring Company and if such agreement is obtained any Option Holder may within the
Appropriate Period with the agreement of the Acquiring

 

 

	 	 	 	Company release all Options which he then holds in exchange for the grant to him
of new options which:-

	 	9.5.1	 	are in respect of shares in the Acquiring Company or some
other company which satisfy the conditions specified in paragraphs 10 to 14
inclusive of Schedule 9;
	 
	 	9.5.2	 	carry the right to acquire such number of such shares as
have on acquisition of the new options an aggregate Market Value equal to the
aggregate Market Value at that time of the Shares subject to the Options;
	 
	 	9.5.3	 	have a total aggregate option price equal to the total
amount which would have been payable in the event of the exercise of all
Options held by him;
	 
	 	9.5.4	 	are exercisable in the same manner as the Options were
exercisable in accordance with the provisions of the Scheme in effect
immediately before the release of the Options; and
	 
	 	9.5.5	 	shall for all other purposes of the Scheme be treated as
having been acquired at the time or respective times of acquisition of the
Options which are released in exchange for the grant of the new options.

	 	9.6	 	Where new options are granted pursuant to Rule 9.5 in relation to such new
options, Rules 1.1 (definitions of “Auditors” and “Share”) 9, 10, 11, 14.5 and 14.6
shall be construed as if references to “OSI” were references to the company whose
shares are subject to the new options and as if references to “Shares” were references
to the shares subject to the new options.

	10	 	Variation of Share Capital
	 
	 	 	In the event of any capitalisation issue, rights issue, consolidation,
sub-division or reduction or other variation of share capital by OSI
the number of Shares over which Options have been granted and the
Acquisition Price for each of those Shares may, if the Board considers
it appropriate, be adjusted in such manner as the Auditors confirm to
be fair and reasonable provided that:-

 

 

	 	10.1	 	the aggregate amount payable on the exercise of an Option in full is neither
materially changed nor increased beyond the expected repayment under the Savings
Contract at the appropriate Bonus Date;
	 
	 	10.2	 	no adjustment shall be made without the prior approval of the Board of Inland
Revenue; and
	 
	 	10.3	 	following the adjustment the Shares continue to satisfy the conditions
specified in paragraph 10 to 14 inclusive of Schedule 9.

The Company shall promptly after any adjustment has been made pursuant to this Rule give
notice thereof to all Option Holders.

	11	 	Manner of Exercise of Options

	 	11.1	 	No Option may at any time be exercised by an Option Holder who is precluded
by paragraph 8 or paragraph 26(3) of Schedule 9 from participating in the Scheme.
	 
	 	11.2	 	No Option may be exercised at any time when the shares which may thereby be
acquired are not Shares as defined in Rule 1.1
	 
	 	11.3	 	An Option may only be exercised over the number of Shares which may be
purchased with the sum obtained by way of repayment under the related Savings
Contract.
	 
	 	11.4	 	An Option shall be exercised by the Option Holder giving notice to the
Company in writing of the number of Shares in respect of which he wishes to exercise
the Option accompanied by the appropriate payment (which shall not exceed the sum
obtained by way of repayment under the related Savings Contract) and the relevant
Option Certificates and shall be effective on the date of its receipt by the Company.
	 
	 	11.5	 	Not later than thirty days after the date of exercise of any Option the
Shares which then fall to be acquired by the Option Holder shall be issued or
transferred to him and a definitive share certificate shall be issued to him in

 

 

	 	 	 	respect of such Shares. Shares issued as a result of the exercise of any Option
shall rank pari passu with the other shares of the same class in issue at the date
of issue, but shall not confer any right, dividends or other benefits or
entitlements the right to which is determined by reference to a date preceding the
date of issue.
	 
	 	11.6	 	All issues and transfers of Shares to be made pursuant to the Scheme shall be
subject to the obtaining of all necessary statutory or other consents.
	 
	 	11.7	 	On exercise of any Option at a time when Shares in the Company are listed on
Nasdaq OSI shall ensure that all Shares to be issued pursuant to the exercise of the
Option shall be duly listed on Nasdaq.
	 
	 	11.8	 	When an Option is exercised only in part, it shall lapse to the extent of the
unexercised balance.
	 
	 	11.9	 	For the purposes of Rules 11.3 and 11.4 above, any repayment under the
Savings Contract shall exclude the repayment of any contribution the due date for
payment of which falls more than one month after the date on which repayment is made.

	12	 	Alteration of the Rules
	 
	 	 	The Board may at any time alter or add to all or any of the Rules in
such manner and to such extent as the Board shall think fit, provided
that:-

	 	12.1	 	no alteration or addition shall materially and adversely affect the rights of
an Option Holder as regards an Option granted prior to the alteration or addition
being made;
	 
	 	12.2	 	while and so long as the Scheme is approved under Scheme 9, no alteration or
addition shall have effect until approved by the Board of Inland Revenue.

	13	 	Employment
	 
	 	 	The terms and conditions of the employment by any Participating
Company of any Option Holder shall not be changed or affected in any
way by his being the holder of

 

 

	 	 	any option under the Scheme, or by such rights as he may have to participate in the Scheme.
In the event of termination of the employment by a Participating Company of any Option
Holder he shall not be entitled to any compensation or damages in respect of any loss or
diminution in the value of his rights under the Scheme which may occur as a result of such
termination.

	14	 	Administration

	 	14.1	 	The Scheme shall be administered by the Board whose decision on all disputes
and matters concerning the interpretation of the Rules shall be final.
	 
	 	14.2	 	The cost of establishing and operating the Scheme shall be borne by the
Participating Companies in such proportions as the Board shall determine.
	 
	 	14.3	 	The Board may establish a committee consisting of not less than three Board
members to whom any or all of its powers in relation to the Scheme may be delegated.
The Board may at any time dissolve the committee, alter its constitution or direct the
manner in which it shall act.
	 
	 	14.4	 	Any notice or other communication under or in connection with the Scheme may
be given by the Company either personally or by post and to the Company either
personally or by post to the Secretary; items sent by post shall be pre-paid and shall
be deemed to have been received 72 hours after posting.
	 
	 	14.5	 	The Company shall at all times either keep available sufficient authorised
and unissued Shares to satisfy all Options which have neither lapsed nor have been
fully exercised or procure that sufficient Shares are available for transfer to
satisfy all such Options.
	 
	 	14.6	 	The Scheme, the Rules and all other documents relating to the Scheme shall be
governed by and construed in accordance with English Law.

 

 

OSI Pharmaceuticals

Letter of Invitation to Apply for a Share Option

(Date)

Dear

OSI Pharmaceuticals Savings-Related Share Option Scheme (“the Scheme”)

You are invited to apply for an option to acquire common shares in OSI Pharmaceuticals, Inc under
the terms of the Scheme. The acquisition price payable per share on exercise of the option will be
( ). The maximum number of shares over which options may be granted on this occasion will be (     ).

You will find with this letter a booklet entitled “Sharesave” which contains a description of the
Scheme and an application form.

If you wish to apply for an option you must enter into a SAYE contract with [      ]. This will require
you to make monthly savings contributions over a period of three years. Your monthly contributions
will be deducted from your salary. Your monthly contribution must be not less than £5 [and must
not be greater than [£250]. In addition,] [and] the total aggregate amount which you can
contribute monthly to SAYE contract must not exceed [£250]. The application form authorises your
employer to deduct your monthly savings from your pay.

The number of shares over which you will have an option will be determined by reference to:-

	(a)	 	the amount you save; and
	 
	(b)	 	the exercise price.

By completing the application form we will be able to determine the number of common shares over
which you will be granted an option.

If we received applications for options over more shares than are available your application will
be scaled down by reducing your monthly contribution or any additional method deemed necessary (of
which you will be notified).

Any shares acquired by you under the Scheme will be subject to the Certificate of Incorporation and
By-laws of the Company.

If you wish to accept this invitation please complete and sign the application form and return it
to ( ) as soon as possible but no later than 14 days after the date of this letter. Any
application received after this date will NOT be accepted.

 

 

OSI Pharmaceuticals

Savings-Related Share Option Scheme (“the Scheme”)

Form of Application for Option

The Directors

Dear Sirs

With reference to the Letter of Invitation to Apply for a Share Option (“the Invitation”) dated [
], I, being an Eligible Employee (as defined in the Rules of the Scheme) (“the Rules”), hereby
apply for an Option to acquire that whole number of common shares which may be purchased at the
acquisition price specified in the Invitation using the amount of the expected repayment under the
SAYE contract at the Bonus Date.

This application is made on the basis that my Option will be exercisable on the Bonus Date on which
the repayment under the SAYE contract will be received, which will be the 3rd
anniversary of the commencement of the SAYE contract. I certify that my total monthly
contributions under the SAYE contract will not exceed the maximum monthly savings contribution
shown in the Invitation, and that the total aggregate monthly amount of my contributions to all
SAYE contracts will not exceed [£250].

I wish to save £[ ] each month.

(This amount must be a multiple of £1 and not less than £5 and not more than the maximum specified
in the Invitation).

I authorise you to make the necessary arrangements for my monthly contributions to be deducted from
my pay and contributed to my SAYE contract until 36 monthly contributions have been made.

I understand that if the total number of shares applied for by all Eligible Employees exceeds the
total number of shares which are available under the Scheme at this time, the number of shares for
which I have applied may be scaled down and my SAYE contract amended accordingly.

I enclose with this application a duly completed, signed and dated SAYE contract application form.

I agree to be bound by the Rules of the Scheme.

	 	 	 	 	 	 	 	 	 
	Signature

	 	 	 	Date	 	 	 	 
	Full Name

	 	 

	 	 	 	 

	 	 
	 

	 	 	 	 	 	 	 	 
	Home Address
	 	 	 	 	 	 	 	 
	 	 	 	 	 

			
	Note:	 	To be valid this Application accompanied by an SAYE Contract Application Form, both duly
completed, must be in the hands of the Company not later than close of business on the
14th
day after the date of the Invitation.

 

 

Certificate No                                                             

OSI PHARMACEUTICALS

SAVINGS-RELATED SHARE OPTION SCHEME

OPTION CERTIFICATE

THIS IS TO CERTIFY that the person named in this Certificate is the holder of an Option to acquire
at the Acquisition Price stated below the number of common shares of £1 each in the capital of OSI
Pharmaceuticals, Inc (“OSI”) specified below, subject to the Rules of the OSI Pharmaceuticals
Savings-Related Share Option Scheme adopted by OSI on [          ] (“the Scheme”).

Number of commons shares of

OSI subject to the foregoing Option

Acquistion Price

	 	 	 	 	 	 	 
	 	 	Subscribed for and on behalf of [     ] by
A Director of [          ] at   on
the   day of   before	 	  
	 
	 	 	 	 	 	 
	 

	 	Witness	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Address	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Occupation	 	 	 	 
	 

	 	 	 	 	 	 

(Date)

NOTES:

	1	 	Except otherwise expressly provided in the Rules of the Scheme, the above-mentioned Option is
exercisable at any time within the 6 months after [ ] but will expire in respect of any shares
which have not then been taken up, or on the Option holder ceasing to be employed by a company
participating in the Scheme.
	 
	2	 	If the Option is to be exercised the Notice of Exercise on the reverse of this Certificate
should be duly completed and signed and sent to the Company Secretary accompanied by payment
of the full amount of the Acquisition Price payable on the exercise of the Option.
	 
	3	 	The Option is not transferable. Any purported transfer or assignation of the Option shall
result in it lapsing automatically.

 

 

NOTICE OF EXERCISE OF OPTION

(SAYE SCHEME)

The Directors,

Dear Sirs

I, [                    ], being

	*	 	the Option Holder
	 
	*	 	the executor/legal personal representative of the Option Holder named in the Certificate
overleaf (“the Certificate”) hereby exercise the Option contained in the Certificate in
respect of
	 
	*	 	all
	 
	*	 	of

the common shares specified in the Certificate.

I accordingly hereby request you to issue or procure the transfer to me of the number of common
shares specified above, subject to the Certificate of Incorporation and By-laws. I enclose my
cheque for £       being the cost of those shares at the Acquisition Price specified in the Certificate.

I request you to send to me

	*	 	at the address appearing in the Certificate

	 
	*	 	at the following address

                                                            

                                                            

                                                            

at my risk a definitive certificate for the number of common shares in respect of which the Option
is hereby exercised.

	 	 	 	 	 
	(Signed)
	 	 	 	 
	 

	 	 

	 	 
	(Date)
	 	 	 	 
	 

	 	 	 	 
	
(Full Name)
	 	 	 	 
	 

	 	 	 	 

 

			
	*	 	Delete whichever alternative is not applicable

 

 

On completion this Notice should be sent to:-

The Company Secretary

[                            ]

Notes:

	1	 	If you are exercising your Option in part only, your Option will lapse in respect of any
shares over which you do not now exercise your Option.
	 
	2	 	If this Notice is completed by the executor or legal personal representative of the Option
Holder named in the Certificate, it must be accompanied by evidence of the appointment of such
executor or representative.exv10w9b

 

Exhibit 10.9(b)

EXECUTION VERSION

FOURTH AMENDMENT TO

INDEX BASED GAS SALE AND POWER PURCHASE AGREEMENT

     This FOURTH AMENDMENT TO INDEX BASED GAS SALE AND POWER PURCHASE AGREEMENT (the “Fourth
Amendment”), effective as of May 1, 2005, is entered into by and among CALPINE ENERGY SERVICES,
L.P., a Delaware limited partnership (“CES”), CALPINE GENERATING COMPANY, LLC, a Delaware
limited liability company (“CGC”), and the indirect wholly-owned subsidiaries of CGC listed
on the signature pages hereof (each a “Facility Owner” or the “Company”). Each of
CES, CGC and the Facility Owners is referred to herein individually as a “Party” and
collectively as the “Parties.”

RECITALS

     A. The Parties have entered into that certain Index Based Gas Sale and Power Purchase
Agreement dated as of March 23, 2004 (as amended, the “Original Agreement”) with respect to
fourteen (14) natural gas-fired electric power generating facilities owned by the respective
Facility Owners.

     B. On May 1, 2005, the Goldendale Energy Center Facility (the “Goldendale Facility”)
secured gas transportation from the revised Gas Delivery Point, as defined in the amended
Schedule 9 attached hereto, to the Goldendale Facility. On May 1, 2005, CES began
delivering gas to the Goldendale Facility at such revised Gas Delivery Point.

     C. Each of CES, CGC and the other Parties desire to amend the Original Agreement as set forth
below to, among other things, reflect the revised Gas Delivery Point for the Goldendale Facility,
effective as of May 1, 2005.

AGREEMENT

     NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein and
other valuable consideration, the parties hereto agree as follows:

     1. Amendments.

          (a) The Parties hereby amend the Original Agreement by deleting Schedule 9 thereto
relating to the Goldendale Facility in its entirety and replacing it with Schedule 9
hereto.

          (b) The Parties agree that the terms and provisions of Schedule 9 hereto shall apply
with respect to determining the Contract Price effective as of May 1, 2005.

     2. Governing Law. This Fourth Amendment shall be governed by the laws of the State of
California.

 

 

     3. Defined Terms. Capitalized terms used and not otherwise defined herein shall have
the meanings given to them in the Original Agreement.

     4. Counterparts. This Fourth Amendment may be executed in one or more counterparts,
each one of which may be considered an original, but all of which together shall constitute one and
the same agreement.

     5. No Assumption. The execution of this Fourth Amendment shall not be deemed an
assumption or a rejection of the Original Contract pursuant to Section 365 of the Bankruptcy Code.
The Parties agree that the execution of this Fourth Amendment shall not impact a Party’s right or
ability to seek assumption or rejection of the Original Agreement, and all Parties reserve all
rights with respect to the assumption or rejection of the Original Agreement, including all
amendments thereto.

     5. No Other Amendment. The Original Agreement is amended by this Fourth Amendment
effective as of the date hereof. The Original Agreement, as amended hereby, shall remain in full
force and effect, in accordance with its terms as amended hereby.

[The next page is the signature page.]

2

 

     IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed to be effective
as of the date first above written.

	 	 	 	 	 
	CALPINE ENERGY SERVICES, L.P.
	 
	 	 	 	 
	By:
	 	/s/ Thomas May
	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	BAYTOWN ENERGY CENTER, L.P.
	 
	 	 	 	 
	By:
	 	/s/ Zamir Rauf
	 	 	 
	 

	 	Name:	 	Zamir Rauf
	 

	 	Title:	 	Vice President
	 
	 	 	 	 
	 
	 	 	 	 
	CHANNEL ENERGY CENTER, L.P.
	 
	 	 	 	 
	By:
	 	/s/ Zamir Rauf
	 	 	 
	 

	 	Name:	 	Zamir Rauf
	 

	 	Title:	 	Vice President
	 
	 	 	 	 
	 
	 	 	 	 
	CORPUS CHRISTI COGENERATION, L.P.
	 
	 	 	 	 
	By:
	 	/s/ Zamir Rauf
	 	 	 
	 

	 	Name:	 	Zamir Rauf
	 

	 	Title:	 	Vice President
	 
	 	 	 	 
	 
	 	 	 	 
	DELTA ENERGY CENTER, LLC
	 
	 	 	 	 
	By:
	 	/s/ Zamir Rauf
	 	 	 
	 

	 	Name:	 	Zamir Rauf
	 

	 	Title:	 	Vice President

	 	 	 	 	 
	CALPINE GENERATING COMPANY, LLC
	 
	 	 	 	 
	By:
	 	/s/ Zamir Rauf
	 	 	 
	 

	 	Name:	 	Zamir Rauf
	 

	 	Title:	 	Vice President
	 
	 	 	 	 
	 
	 	 	 	 
	CARVILLE ENERGY, LLC
	 
	 	 	 	 
	By:
	 	/s/ Zamir Rauf
	 	 	 
	 

	 	Name:	 	Zamir Rauf
	 

	 	Title:	 	Vice President
	 
	 	 	 	 
	 
	 	 	 	 
	COLUMBIA ENERGY, LLC
	 
	 	 	 	 
	By:
	 	/s/ Zamir Rauf
	 	 	 
	 

	 	Name:	 	Zamir Rauf
	 

	 	Title:	 	Vice President
	 
	 	 	 	 
	 
	 	 	 	 
	DECATUR ENERGY CENTER, LLC
	 
	 	 	 	 
	By:
	 	/s/ Zamir Rauf
	 	 	 
	 

	 	Name:	 	Zamir Rauf
	 

	 	Title:	 	Vice President
	 
	 	 	 	 
	 
	 	 	 	 
	FREESTONE POWER GENERATION, L.P.
	 
	 	 	 	 
	By:
	 	/s/ Zamir Rauf
	 	 	 
	 

	 	Name:	 	Zamir Rauf
	 

	 	Title:	 	Vice President

3

 

	 	 	 	 	 
	GOLDENDALE ENERGY CENTER, LLC
	 
	 	 	 	 
	By:
	 	/s/ Zamir Rauf
	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	MORGAN ENERGY CENTER, LLC
	 
	 	 	 	 
	By:
	 	/s/ Zamir Rauf
	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	PASTORIA ENERGY FACILITY L.L.C.
	 
	 	 	 	 
	By:
	 	/s/ Zamir Rauf
	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

	 	 	 	 	 
	LOS MEDANOS ENERGY CENTER, LLC
	 
	 	 	 	 
	By:
	 	/s/ Zamir Rauf
	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	CALPINE ONETA POWER, L.P.
	 
	 	 	 	 
	By:
	 	/s/ Zamir Rauf
	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	ZION ENERGY, LLC
	 
	 	 	 	 
	By:
	 	/s/ Zamir Rauf
	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

4

 

Schedule 9

Goldendale Energy Center Facility

600 Industrial Park Way

Goldendale, WA 98620

Location: Washington

NERC Region: WECC

			
	Applicable Power Price:	 	The daily prices published by Dow Jones Telerate in the
section “Workstation 3 Pages 38422” under the heading “Dow Jones Energy
Service, Dow Jones Mid-C Electricity Price Index: [date] Firm: On Peak” for
electricity delivered during the applicable day.

			
	Fallback Power Reference Price:	 	The daily weighted average index for on-peak
power in the 10X Day Ahead Power Price Report as published by Intercontinental
Exchange on its official web site currently located at www.theice.com under the
heading “Mid C.”

			
	Applicable Fuel Price:	 	The daily price for applicable day published under the
heading “Daily Price Survey ($/MMBtu): Midpoint: Canadian Gas: Northwest,
Can. Bdr. (Sumas)” in Gas Daily.

Total Capacity: 228 MW

Applicable Heat Rate: 7.34 MMBtu/MWh

Variable O&M Amount:

	 	 	 	 	 
	Effective Date through December 2004:

	 	$	0.49	 
	January 2005 through December 2005:

	 	 	0.50	 
	January 2006 through December 2006:

	 	 	0.51	 
	January 2007 through December 2007:

	 	 	0.53	 
	January 2008 through December 2008:

	 	 	0.51	 
	January 2009 through December 2009:

	 	 	0.52	 
	January 2010 through December 2010:

	 	 	0.53	 
	January 2011 through December 2011:

	 	 	0.55	 
	January 2012 through December 2012:

	 	 	0.56	 
	January 2013 through December 2013:

	 	 	0.57	 

Planned Outage Months:

First Planned Outage Month: April

Second Planned Outage Month: N/A

S-1

 

Planned Outage Percentage:

April: 29.40%

			
	Gas Delivery Point:	 	The interconnection point between the Duke Energy Gas
Transmission (Westcoast) and the Williams Northwest Pipelines at Huntingdon,
British Columbia, Canada

Power Delivery Point: 230kV Harvalum Substation

			
	Facility Transmission Charge Adjustment:	 	Transmission charges payable to
Bonneville Power Administration
or Klickitat Public Utility
District between the Power
Delivery Point and the
mid-Columbia hub, including
variable and fixed components

Fixed Price Power Contract (On Peak): N/A

Fixed Price Power Contracts (Off Peak): N/A

Host Agreement: N/A

Direct Power Purchase Agreements: N/A

Steam Sale Agreements: N/A

Special Provisions: N/A

S-2

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