Document:

Employment Agreement with Alfred Novak

  Exhibit 10.34
 October 8, 2002
 Mr. Alfred J. Novak
9375 S.W. 60th Avenue
Miami, FL 33156
 Dear
Al:
 We are delighted to welcome you as you join Novoste Corporation (“Novoste”) as its new President and Chief Executive Officer (CEO). This letter
sets forth the agreement between you and Novoste as to the terms and conditions of your employment by Novoste.
 1.        Duties and Responsibilities. In your capacity as CEO of Novoste you will report to Novoste’s Board of Directors (the “Board”) and
perform such duties and responsibilities as are from time to time directed by Novoste’s Board consistent with your positions as CEO. You will, upon joining Novoste as CEO, also be appointed to the Board of Directors to fill one of the currently
existing vacancies on the Board, and will be proposed to the shareholders, at the proper time, for election to the Board.
 2.        Related Agreements. Simultaneously herewith, you are entering into the Confidentiality and Arbitration Agreement, Business Conduct Agreement,
Conflict of Interest Agreement, Patent Agreement, Unfair Competition Agreement, and Termination Agreement, in the forms for Exhibits A, B, C, D, E and F hereto, respectively (the “Related
Agreements”), all of which agreements are incorporated herein by reference thereto and made a part hereof. Your employment is also subject to the successful completion of a pre-employment drug screening.
 3.        Term. The term of your employment will commence on October 15, 2002, or on such
earlier date when you have accepted the terms and conditions set forth herein and the Board has formally elected you to the positions of CEO (your “Employment Date”), and continues until terminated under the provisions of Paragraph 7
below. By accepting this Agreement, you accept such employment as a full-time employee of Novoste and agree to devote substantially all of your business and professional time, energy and skills to the affairs of Novoste and to serve faithfully and
to the best of your ability; provided, however, that nothing in this Agreement or the Related Agreements precludes you continuing the affiliations and associations set forth in Paragraph 7 of the Conflict of Interest Agreement and any similar
professional
 
 

  Mr. Alfred J. Novak
October 8, 2002
Page 2 of 8
 affiliations, or any civic, charitable or other non-professional activities that do not significantly interfere with your performance of services to Novoste.
 4.        Compensation. As compensation for the services to be rendered by you hereunder, following the commencement of your
employment, Novoste will:
 (a)       pay you a base salary of at least $350,000
per annum, payable in installments in accordance with Novoste’s regular payroll practices. Your performance will be reviewed annually by Novoste’s Board of Directors, in conjunction with which
goals and possible increases in your base salary for the future will be discussed, it being understood that any such increases shall be within the discretion of the Board.
 (b)       grant you, effective as of your Employment Date, a ten-year non-incentive stock option to purchase an aggregate of 400,000 shares of
Novoste’s Common Stock, at an exercise price equal to the fair market value, per share, of the stock at the close of trading on the day of the grant, upon the terms and conditions as shall be set forth in a Stock Option Agreement between you
and Novoste (the “Stock Option Agreement”). Such options shall become exercisable as follows: 100,000 shares vesting on the effective date of the grant, and 100,000 shares thereof vesting thereafter on each of the following dates, October
16, 2003, October 16, 2004, and October 16, 2005. Such options shall become exercisable in full upon a Change of Control. 
 (c)       grant you effective as of your Employment Date an additional ten-year non-incentive stock option to purchase an aggregate of 300,000 shares of Novoste’s Common Stock, at an
exercise price equal to the fair market value, per share, of the stock at the close of trading on the day of the grant subject to the provisions of the Stock Option Agreement and vesting on the following basis:
 (i)        The said grant shall fully vest, if not sooner vested pursuant to
the following terms, on October 16, 2007, however; 
 (ii)       When the Novoste common stock achieves a closing price of $8.00 per share and maintains that closing price for twenty out of thirty consecutive trading days, 100,000 shares shall vest;
 (iii)     When the Novoste common stock achieves a closing price of $12.00 per share and maintains that price for
twenty out of thirty consecutive trading days, an additional 100,000 shares shall vest; and
 (iv)     When the Novoste common stock achieves a closing price of $15.00 per share and maintains that
 
 

  Mr. Alfred J. Novak
October 8, 2002
Page 3 of 8
             closing price for twenty out of thirty consecutive days, the remaining 100,000 shares
shall vest.
 In the event of a Change of Control, all unvested shares shall vest that would have vested at the price per share set forth in paragraphs (c) (i), (ii) and (iii)
above, which equals the fair market value per share at the close of trading on the date immediately preceding the Change of Control, whether or not such share price has been at the level for twenty out of thirty consecutive days prior to the Change
of Control.
 (d)       entitle you to participate in Novoste’s discretionary
annual incentive cash bonus plan for executive officers, established to reward participating individuals for their contribution to the achievement of key annual corporate objectives. You will be eligible for participation in the 2002 Bonus Incentive
Plan, prorated to your date of hire. For 2003, your bonus eligibility will be 40% of your base salary, based upon the successful completion of Novoste’s Corporate Goals. These company-wide goals will be determined by the Senior Management team
and are subject to Board approval.
 (e)       provide a company-paid apartment for
your use and will pay all expenses related to the apartment including rent, utilities, furniture rental, etc. up to $3,500 per month. Airfare for weekly visits to your family will be paid by Novoste, provided tickets are purchased with 14-day
advance notice.
 (f)       entitle you to participate in any and all health, life,
disability or other insurance plans, retirement plans, 401(k) plans, stock purchase plans, and all other employee benefit plans that are now, or may in the future be offered by Novoste, subject to the terms and conditions of those plans.

5.        Vacation. You will be entitled to take up to an
aggregate of four weeks of vacation each calendar year as business conditions permit. In accordance with company policy, you will be allowed to carry over up to 10 unused vacation days to the following year.
 6.        Reimbursement of Expenses. Novoste will reimburse you for all reasonable and
documented business expenses incurred by you on behalf of Novoste during the term of your employment hereunder consistent with Novoste’s expense reporting policy, as the same may be modified from time to time.
 7.        Events of Termination. 
 (a)       By Novoste for Cause. Your employment hereunder may be terminated at
any time by Novoste for “Cause.” “Cause” shall mean termination due to
 
 

  Mr. Alfred J. Novak
October 8, 2002
Page 4 of 8
 any one or more of the following: (i) if you are indicted for committing a felony or a decision or determination is rendered by any court or governmental authority that you have committed any act involving fraud, dishonesty, breach of trust
or moral turpitude, or if you enter a plea of guilty or nolo contendere to any of the foregoing: (ii) if you willfully breach your duty of loyalty to, or commit an act of fraud or dishonesty upon, Novoste; (iii) if you demonstrate gross negligence
or willful misconduct, (iv) if, in the reasonable, good faith opinion of a majority of Novoste’s Board of Directors (excluding yourself if you shall then be a director of Novoste), you engage in personal misconduct of such a material nature as
to render your presence as CEO detrimental to Novoste or its reputation and you fail to cure the same (if curable) within five days after written notice thereof from Novoste; or (v) if you commit a material breach of, or a default under any of the
terms or conditions of this Agreement (including the Related Agreements) and you fail to cure such breach or default (if curable) within ten days after written notice thereof from Novoste.
 (b)       By Novoste for Unsatisfactory Performance. Your employment may be terminated at any time by Novoste if a
majority of Novoste’s Board of Directors (excluding yourself if you shall then be a director of Novoste), shall have given you a vote of no confidence based upon the nature or manner of the performance of your duties hereunder
(“Unsatisfactory Performance”).
 (c)       By Novoste without Cause or
without Unsatisfactory Performance. Your employment hereunder may be terminated at any time by Novoste, upon 30 days’ prior written notice to you, without “Cause” or without “Unsatisfactory
Performance.” 
 (d)       Upon Death or Permanent
Disability. Your employment hereunder shall additionally terminate immediately upon your Death or “Permanent Disability.” Shall have the meaning set forth in the long-term disability policy or policies then
maintained by Novoste for the benefit of its employees, or if no such policy shall then be in effect, or if more than one such policy shall then be in effect in which the term “Permanent Disability” shall be assigned different definitions,
then the term “Permanent Disability” shall be defined for purposes of this Agreement and the Related Agreements to mean any physical or mental disability or incapacity which renders you incapable of performing the services normally
required of you as the CEO in substantially the same manner and with the same degree of competence that you performed them prior to the occurrence of the physical or mental disability.
 (e)       By You without Good Reason. Your employment hereunder may be terminated at any time by you, upon 90
days’ prior written notice to Novoste, without Good Reason.
 
 

  Mr. Alfred J. Novak
October 8, 2002
Page 5 of 8
 (f)       By You for Good Reason. Your employment hereunder may be terminated at any time by you for “Good
Reason.” “Good Reason” shall mean one or more of the following events: (i) a material breach of or default under this Agreement by Novoste which is not cured by Novoste within thirty days after its receipt of prior written notice
thereof from you; or (ii) a material reduction in your duties or a material interference with the exercise of your authority by Novoste’s Board of Directors (not arising from any disabling physical or mental disability you may sustain) which
would be inconsistent with your position as CEO of Novoste and the same shall not have been remedied by Novoste’s Board of Directors within thirty days after its receipt of prior written notice thereof from you. A termination by you of your
employment pursuant to this Paragraph 7(f) shall not be deemed for purposes hereof to constitute a termination of your employment by you for Good Reason if, at the time of such termination by you, Novoste shall be entitled to terminate this
Agreement by reason of your Permanent Disability (subject to the passage of any remaining time necessary to render any disability you may sustain a Permanent Disability under Paragraph 7(d) above), or for Cause (subject to the passage of any
applicable cure period) and Novoste shall have sent prior to Novoste’s receipt of your notice of termination, a notice of termination by Novoste specifying the Cause or notice by Novoste of such pending Permanent Disability.
 8.        Consequences of Termination. 
 (a)       By Novoste for Cause. If your employment is terminated for Cause, this Agreement shall
terminate immediately upon the date fixed for the cessation of your employment and you shall be entitled to be paid any accrued, but unpaid, salary earned by you through the date of such termination.
 (b)       By Novoste for Unsatisfactory Performance. In the event your employment is terminated
by Novoste for Unsatisfactory Performance, this Agreement shall terminate immediately on the date fixed for the cessation of your employment and you shall be entitled to receive all accrued, but unpaid, salary earned by you through the date of such
termination.
 (c)       By Novoste without Cause or without Unsatisfactory
Performance. In the event your employment is terminated by Novoste without Cause or without Unsatisfactory Performance (other than by reason of your death or Permanent Disability), this Agreement shall terminate immediately
on the date fixed for cessation of your employment and you shall be entitled to receive: (i) all accrued but unpaid salary earned by you through the date of such termination; and (ii) a lump sum, cash severance payment on the date of termination of
employment equal to two times your Annualized Includable Compensation, as defined in the Termination Agreement, taking as a Base
 
 

  Mr. Alfred J. Novak
October 8, 2002
Page 6 of 8
 Period the two most recent taxable years ending before the date of your termination of employment.
 (d)       Upon your Death or Permanent Disability. In the event your employment terminates by reason of your Death or Permanent Disability, this Agreement shall
terminate immediately upon such occurrence and you, your estate or your personal representative, as the case may be, shall be entitled to be paid any accrued but unpaid salary earned by you through the date of such termination.
 (e)       By You without Good Reason. In the event your employment is
terminated by you without Good Reason, this Agreement shall terminate immediately upon the date of your resignation, consistent with the notice requirements set forth in Paragraph 7(e) and you shall be entitled to be paid any accrued but unpaid
salary earned by you through the date of such termination.
 (f)       By You for
Good Reason. In the event your employment is terminated by you for Good Reason, this Agreement shall terminate on the date set forth in your notice of termination consistent with Paragraph 7(f) and you shall be entitled to
receive: (i) all accrued but unpaid salary earned by you through the date of such termination; and (ii) a lump sum, cash severance payment on the date of termination of employment equal to two times your Annualized Includable Compensation, as
defined in the Termination Agreement, taking as a Base Period the two most recent taxable years ending before the date of your termination of employment.
 (g)       Effect on Stock Options. In the event of the termination of your employment, pursuant to paragraphs 7(c) or 7(f) above, any
unvested options from the initial 400,000 share grant set forth in paragraph 4(b) above shall become fully vested and exercisable on the date of such termination.
 9.        Key Man Life Insurance. You agree that Novoste may, in its discretion, apply for and take out in its name and at its own
expense, and solely for its benefit, key man life insurance on you in any amount deemed necessary or advisable by Novoste to protect its interests, and you agree that you shall have no right, title or interest therein and further agree to submit to
any medical or other examination and to execute and deliver any application or other instruments or information reasonably necessary to effectuate such insurance.
 10.      Your Representations and Warranties. You    represent and warrant that you are
not under any obligation, restriction or limitation, contractual or otherwise, to any other individual or entity which would prohibit or impede you from performing your
 
 

  Mr. Alfred J. Novak
October 8, 2002
Page 7 of 8
 duties and responsibilities hereunder, and that you are free to enter into and perform the terms and provisions of this Agreement, such representation and warranty to survive the execution, delivery and termination hereof; provided,
hereunder, that you shall not be required to disclose to Novoste any information that you are obligated to keep confidential under any agreement with a third party.
 11.      Notices. Any notice required hereunder shall be delivered by hand, sent by telecopy, or sent registered or certified mail, addressed to
the other party hereto at its address set forth above or at such other address thereof shall have been given in accordance with the provisions of this Paragraph 11. Any such notice shall become effective (a) when mailed, three days after having been
deposited in the mail, postage prepaid, and (b) in the case of delivery by hand or telecopy, upon delivery.
 12.      Entire Agreement. This Agreement, together with the Related Agreements, contains the entire agreement and understanding between the parties hereto relating to
the subject matter hereof and thereof and supersedes any and all prior understandings, agreements and representations, written or oral, expressed or implied, with respect thereto. In the event of a conflict between the terms of this Agreement and
any of the Related Agreements, this Agreement shall govern.
 13.      Amendments. This Agreement may not be amended, modified, altered or terminated except by an instrument in writing signed by the parties.
 14.      Successors and Assigns. This Agreement is personal in nature and neither this Agreement nor any rights or
obligations hereunder may be assigned or transferred by you without the prior written consent of Novoste. This Agreement may not be assigned or transferred by Novoste without your prior written consent, which shall not be unreasonably withheld.
Subject to the foregoing, this Agreement and all of the provisions hereof shall be binding upon and inure to the benefit of the parties hereto and Novoste’s successors and permitted assigns and your executors, administrators, personal
representatives, heirs and distributees.
 15.      Severability. In case any one or more of the provisions of this Agreement shall be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be effected
thereby.
 16.      Governing Law. This Agreement shall be
governed by, construed and enforced in accordance with the laws of the State of Georgia applicable to contracts made and to be performed entirely therein (without giving effect to the conflicts of law rules thereof).
 
 

  Mr. Alfred J. Novak
October 8, 2002
Page 8 of 8
 17.      Effectiveness. Of course, notwithstanding anything herein to the contrary, the effectiveness of this Agreement
and your employment pursuant hereto is contingent upon the mutual execution and delivery of this Agreement by you and Novoste.
 We would appreciate it if you
would kindly indicate your agreement with the foregoing by countersigning the enclosed duplicate copy of this letter agreement and returning it to me on behalf of Novoste.
 On behalf of Novoste, we look forward to a long and mutually rewarding relationship.
  

	  
 	  
 	 Sincerely,
 
 NOVOSTE CORPORATION
 
	 
 
 
 	  
 	 By: 
 	 
 
 
 
	  
 	  
 	  
 	 
 
	  
 	  
 	  
 	 Daniel G. Hall
 Vice President, Secretary and General Counsel
 

  

	 Attachments:
 	  
 	 Confidentiality and Arbitration Agreement
 Business Conduct Agreement
 Conflict of
Interest Agreement
 Patent Agreement
 Unfair Competition Agreement
 Termination Agreement
 Novoste Proxy Statement dated April 25, 2001
 Novoste Proxy Statement dated April 26, 2002
 

  
 Accepted and Agreed to this
_____ day of October 2002.
 ______________________________________________Non-Qualified Stock Option Agreement with CEO

  Exhibit 10.35
 NOVOSTE
CORPORATION
NON-QUALIFIED STOCK OPTION AGREEMENT
 THIS AGREEMENT (the “Agreement”), is
dated as of October 16, 2002, by and between NOVOSTE CORPORATION, a Florida corporation (the “Company”), and Alfred J. Novak (the “Optionee”), pursuant to the Company’s 2002 Chief Executive Officer Stock Option Plan (the
“Plan”).
 For good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Company and Optionee hereby agree as
follows:
 1.        Grant of Option.
 The Company hereby grants to Optionee, effective as of the date set forth above (the “Grant Date”), the right and option (hereinafter called the
“Option”) to purchase up to an aggregate of 400,000 shares of common stock, par value $0.01 per share (the “Common Stock”), of the Company at a price of $4.20 per share, on the terms and conditions set forth in this Agreement and
in the Plan. This Option is not intended to be an incentive stock option within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”). The Option shall terminate at the close of business on the day ten
(10) years from the Grant Date, or such shorter period as is prescribed herein. Optionee shall not have any of the rights of a shareholder with respect to the shares of Common Stock subject to the Option until such shares shall be issued to Optionee
upon the proper exercise of the Option.
 2.        Duration and
Exercisability.
 (a)       Subject to the terms and
conditions set forth herein, this Option shall become exercisable by the Optionee for the following installments of shares of Common Stock in accordance with the following schedule. The Optionee must be employed by the Company on the relevant
anniversary date set forth below in order for the corresponding installment to become exercisable. As the Option becomes exercisable for such installment, those installments shall accumulate and the Option shall remain exercisable for the
accumulated installments until the Option expires pursuant to Section 1 or terminates pursuant to Section 3 or Section 4.
   

	 on or after each of
 the following dates:
 	  
 	 Cumulative Percentage of Shares as
 to which Option is
exercisable:
 	  
 
	 October 16, 2002
 	  
 	   25%
 	  
 
	 October 16, 2003
 	  
 	   50%
 	  
 
	 October 16, 2004
 	  
 	   75%
 	  
 
	 October 16, 2005
 	  
 	 100%
 	  
 

 
 (b)       In the event of a Change of Control (as defined herein), the Option shall become immediately fully exercisable. A “Change of
Control” shall mean:
 
 

  (i)        the sale or other
disposition to a person (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), entity or group (as such term is defined in Rule 13d-5 under the Exchange Act) of 50% or
more of the Company’s assets;
 (ii)       any
“person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) or group (as defined in Rule 13d-5 of the Exchange Act) is or becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act), directly
or indirectly, of securities of the Company representing 50% or more of the combined voting power of the Company’s then outstanding securities;
 (iii)     the Continuing Directors cease to constitute a majority of the Company’s Board of Directors; or 
 (iv)     the majority of the Continuing Directors determine in their sole and absolute discretion that there has
been a change in control of the Company.
 For purposes of clauses (iii) and (iv) above, “Continuing Director” shall mean any person who is a member
of the Board of Directors of the Company, while such person is a member of the Board of Directors, who is not an Acquiring Person (as defined below) or an Affiliate or Associate (as defined below) of an Acquiring Person, or a representative of an
Acquiring Person or of any such Affiliate or Associate, and who (1) was a member of the Board of Directors on the date of this Agreement as first written above or (2) subsequently becomes a member of the Board of Directors, if such person’s
initial nomination for election or initial election to the Board of Directors is recommended or approved by a majority of the Continuing Directors. For purposes of this paragraph, “Acquiring Person” shall mean any “person” (as
such term is used in Sections 13(d) and 14(d) of the Exchange Act) who or which, together with all Affiliates and Associates of such person, is the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act) of 15% or more of the
shares of Common Stock then outstanding, but shall not include the Company, any subsidiary of the Company or any executive benefit plan of the Company or of any subsidiary of the Company or any entity holding shares of common stock organized,
appointed or established for, or pursuant to the terms of, any such plan; and “Affiliate” and “Associate” shall have the respective meanings ascribed to such terms in Rule 12b-2 of the Exchange Act.
 (c)       During the lifetime of Optionee, the Option shall be exercisable only by Optionee or
Optionee’s agent pursuant to a Rule 10b5-1 Plan and shall not be assignable or transferable by Optionee, other than as provided for in accordance with the provisions of Section 4(c) of this Agreement or to a Family Member. A “Rule 10b5-1
Plan” shall mean a trading plan adopted by a person or an entity that is intended to comply with the requirements of Rule 10b5-1 promulgated by the Securities and Exchange Commission under the Exchange Act or any successor rule or regulation. A
“Family Member” shall mean any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law,
including adoptive relationships, any person sharing the employee’s household, (other than a tenant or employee), a
 

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  trust in which these persons have more than fifty percent of the beneficial interest, a foundation in which these persons (or employee) control the
management assets, and any other entity in which these persons (or employee) own more than fifty percent of the voting interests.
 3.        Adjustment of Shares.
 (a)       The exercise price and the number of shares purchasable upon exercise of the Options may be adjusted by the Compensation Committee (the “Compensation Committee”) of the
Board of Directors of the Company (the “Board”) in accordance with Section 4(c) of the Plan upon the occurrence of certain corporate actions that may affect the Common Stock.
 (b)       In the event that the Company is a party to a merger or consolidation, the Option shall be subject to the agreement of merger or
consolidation. Subject to Section 2(b), such agreement, without the Optionee’s consent, may provide for:
 (i)        The continuation of the Option by the Company (if the Company is the surviving corporation);
 (ii)       The assumption of the Plan and the Option by the surviving corporation or its parent;
 (iii)     The substitution by the surviving corporation or its parent of options with substantially the same terms
for the Option as contemplated by Section 4(c) of the Plan; or
 (iv)     The cancellation of the Option provided that the Optionee shall have the right immediately prior to such merger or consolidation to exercise the Option in whole or in part, whether or not the Optionee’s right to exercise the Option has
otherwise vested pursuant to Section 2 of this Agreement.
 4.        Effect
of Termination of Employment.
 (a)       In the event that
Optionee shall cease to be employed by the Company or its subsidiaries, if any, for any reason other than termination for cause (as defined in Section 4(b) hereof) or Optionee’s death or disability (as such term is defined in Section 4(c)
hereof), Optionee shall have the right to exercise the Option at any time within six (6) months after such termination of employment to the extent of the full number of shares Optionee was entitled to purchase under the Option on the date of
termination; provided, however, that this Option shall not be exercisable after the expiration of the term of the Option if
earlier.
 (b)       In the event that Optionee shall cease to be employed by the
Company or its subsidiaries, if any, upon termination for cause, the Option shall be terminated as of the date of the act giving rise to such termination. Termination for “cause” shall have the meaning ascribed to such term in that certain
Letter of Employment Agreement, dated October 8, 2002, between the Optionee and the Company.
 

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  (c)       If Optionee shall die while this Option is still
exercisable according to its terms, or if Optionee’s employment with the Company is terminated because Optionee has become disabled (within the meaning of Code Section 22(e)(3)) while this Option is still exercisable according to its terms, and
Optionee shall not have fully exercised the Option, such Option may be exercised at any time within twelve (12) months after Optionee’s death or date of termination of employment by Optionee, personal representatives or administrators, or
guardians of Optionee, as applicable, or by any person or persons to whom the Option is transferred by will or the applicable laws of descent and distribution, to the extent of the full number of shares Optionee was entitled to purchase under the
Option on the date of Optionee’s death, the date of termination of Optionee’s employment with the Company, if earlier, or the date of termination of Optionee’s employment with the Company for such disability, and subject in all cases
to the condition that no Option shall be exercisable after the expiration of the term of the Option.
 5.        Manner of Exercise.
 (a)       The Option may be exercised only by Optionee or other proper party, as provided herein, by delivering within the period during which the Option is exercisable hereunder written
notice to the Company at its principal office. The notice shall state the number of shares as to which the Option is being exercised and be accompanied by payment in full of the Option price for all shares designated in the notice.
 (b)       Optionee may pay the Option price in cash, by check (bank check, certified check or
personal check), by money order, or with the approval of the Compensation Committee (i) by delivering to the Company for cancellation shares of Common Stock with a fair market value as of the date of exercise equal to the exercise price of the
Option or the portion thereof being paid by tendering such shares; provided, however, no Shares may be surrendered in payment of the exercise price if
acquired by the Participant from the Company within six months of the date of the current exercise or (ii) by delivering to the Company a combination of cash and Common Stock with an aggregate fair market value equal to the exercise price of the
Option. Any broker-assisted cashless exercise by the Optionee of the Option shall be performed in compliance with the requirements of the Sarbanes-Oxley Act of 2002 and approved by the Compensation Committee. For these purposes, the fair market
value of the shares of Common Stock, as of any date, shall be as reasonably determined by the Compensation Committee pursuant to the Plan. 
 6.        Notices.
 All notices or other communications which are
required or permitted hereunder shall be deemed to be sufficient if contained in a written instrument given by personal delivery, air courier or registered or certified mail, postage prepaid, return receipt requested, addressed to such party at the
address set forth below or such other address as may thereafter be designated in a written notice from such party to the other party:
 

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  if to the Company, to:
 Attention: Corporate
Secretary
Novoste Corporation
3890 Steve Reynolds Boulevard
Norcross, Georgia 30093
 if to
the Optionee, to:
 Alfred J. Novak
9375 S.W. 60th Avenue
Miami, Florida 33156
 All such notices, advances, and communications shall be deemed to have been delivered and received (a) in the case of personal delivery, on the date of such delivery, (b) in the case of air courier,
on the business day after the date when sent and (c) in the case of mailing, on the third business day following such mailing.
 7.        Miscellaneous.
 (a)       This Option is issued pursuant to the Plan and is subject to its terms. The terms of the Plan are available for inspection during business hours at the principal offices of the
Company.
 (b)       This Agreement shall not confer on Optionee any right with
respect to continuance of employment by the Company or any of its subsidiaries, nor will it interfere in any way with the right of the Company to terminate such employment at any time. Optionee shall have none of the rights of a stockholder with
respect to shares subject to this Option until such shares shall have been issued to Optionee upon exercise of this Option.
 (c)       The exercise of all or any part of this Option shall only be effective at such time as the sale of Common Stock pursuant to such exercise will not violate any state or federal
securities or other laws. If the Committee administering the Plan determines that such conditions have not been met at the time the Option is otherwise properly exercised, the Company may either (i) defer effectiveness of the exercise (with notice
to Employee) until such reasonable date as the conditions have been met, or (ii) refund or return to Employee the consideration given to the Company for the exercise, with an explanation that the exercise cannot then be given effect.
 (d)       The Company shall at all times during the term of the Option reserve and keep available
such number of shares as will be sufficient to satisfy the requirements of this Agreement.
 (e)       No waiver of any breach or condition of this Agreement shall be deemed to be a waiver of any other or subsequent breach or condition, whether of like or different
nature.
 

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  (f)       The Optionee shall take whatever additional actions
and execute whatever additional documents the Company may in its judgment deem necessary or advisable in order to carry out or effect one or more of the obligations or restrictions imposed on the Optionee pursuant to the express provisions of this
Agreement. The certificates for shares issued upon exercise of the Option may bear legends and notices of transfer restrictions as the Committee administering the Plan deems appropriate in the circumstances.
 (g)       This Agreement shall be governed by and construed in accordance with, the laws of the State of Florida without
regard to choice law provisions thereof.
 (h)       This Agreement may be executed
in counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument.
 (i)        This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and thereof, merging any and all prior agreements.
 (j)        In order to provide the Company with the opportunity to claim the benefit of any
income tax deduction which may be available to it upon the exercise of the Option and in order to comply with all applicable federal or state income tax laws or regulations, the Company may take such action as it deems appropriate to insure that, if
necessary, all applicable federal or state payroll, withholding, income or other taxes are withheld or collected from Optionee. With the Company’s concurrence, Optionee may elect to satisfy his or her federal and state income tax withholding
obligations upon exercise of this Option by (i) having the Company withhold a portion of the shares of Common Stock otherwise to be delivered upon exercise of such Option having a fair market value equal to the amount of federal and state income tax
required to be withheld upon such exercise, in accordance with such rules as the Company may from time to time establish, or (ii) delivering to the Company shares of its Common Stock (other than the shares issuable upon exercise of such Option or
acquired from the Company within six months prior to the current exercise of such Option) with a fair market value equal to such taxes, in accordance with such rules.
 (k)       This Agreement does not obligate the Company to register the Option or the shares subject to the Option under applicable securities
laws, to maintain any such registration or to list such shares on any securities exchange.
 *     *     *     *     *
 

6

  IN WITNESS WHEREOF, the parties hereto have caused this Agreement as of the date set forth above.

No. of Shares Subject to Option: 400,000
Exercise Price per Share: $4.20
Date of Grant: October 16, 2002
  

	  
 	 NOVOSTE CORPORATION
 	  
 	  
 
	  
 	 By: 
 	 
 
 
 	  
 	  
 	  
 
	  
 	  
 	 
 	  
 	  
 	  
 
	  
 	  
 	 Name: 
 	  
 	  
 	  
 
	  
 	  
 	 Title: 
 	  
 	  
 	  
 

  

	  
 	  
 	  
 	  
 
	 
 
 
 	  
 	  
 	 
 
 
 
	 
 	  
 	  
 	  
 
	  
 	 Alfred J. Novak
 	  
 	  
 	  
 
					

 
 7

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