Document:

exv10w53w1

 

EXHIBIT 10.53.1

EXECUTION COPY

 

AMENDMENT No. 1 and WAIVER No. 1

TO THE

CREDIT AGREEMENT

dated as of April 7, 2006

among

Kansas City Southern de México, S.A. de C.V.

(formerly known as TFM, S.A. de C.V.),

as Borrower

ARRENDADORA TFM, S.A. de C.V.,

as Guarantor

CERTAIN LENDERS,

BANK OF AMERICA, N.A.,

as Administrative Agent,

and

BBVA BANCOMER, S.A., INSTITUCIÓN DE BANCA MÚLTIPLE, GRUPO
 FINANCIERO BBVA BANCOMER,

as the Collateral Agent

      

 

 

     THIS AMENDMENT No. 1 AND WAIVER NO. 1 TO THE CREDIT AGREEMENT, dated as of April 7, 2006 (this
“Amendment”), is entered into among Kansas City Southern de México, S.A. de C.V. (formerly known as
TFM, S.A. de C.V., a corporation with variable capital (sociedad anónima de capital variable)
organized under the laws of Mexico (the “Borrower”), Arrendadora TFM, S.A. de C.V., a corporation
with variable capital (sociedad anónima de capital variable) organized under the laws of the Mexico
(“Arrendadora”), each of the lenders that is a signatory hereto under the caption “LENDERS” on the
signature pages hereto and each other Person that becomes a “Lender” after the date hereof pursuant
to Section 11.8(b) of the Credit Agreement, as defined below (each a “Lender”), Bank of
America, N.A., as the administrative agent for the Lenders (in such capacity, together with its
successors in such capacity, the “Administrative Agent”), and BBVA Bancomer, S.A., Institución de
Banca Múltiple, Grupo Financiero BBVA Bancomer, as the collateral agent for the Beneficiaries (as
defined in the Credit Agreement) (in such capacity, together with its successors in such capacity,
the “Collateral Agent”).

RECITALS

     WHEREAS, the Borrower, the Guarantor, the Lenders, the Administrative Agent and the Collateral
Agent have entered into the Credit Agreement, dated as of October 24, 2005 (the “Credit
Agreement”);

     WHEREAS, the parties hereto desire to amend the Credit Agreement as set forth below, in
accordance with Section 11.3 of the Credit Agreement, subject to the conditions set forth
herein; and

     WHEREAS, the parties hereto desire to waive certain obligations of the Borrower under the
Credit Agreement, subject to the conditions set forth herein,

     NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

     SECTION 1. Certain Defined Terms. Capitalized terms used but not otherwise defined
herein shall have the meanings ascribed to them in the Credit Agreement.

     SECTION 2. Amendments. (a) The parties hereto hereby agree that the definition of
“Indebtedness” in Section 1.1 of the Credit Agreement shall be deleted and the following
definition shall be inserted in proper alphabetical order:

“Indebtedness” shall mean, with respect to any Person at any date of determination (without
duplication):

(a) all indebtedness of such Person for borrowed money;

(b) all obligations of such Person evidenced by bonds, debentures, notes or other similar
instruments;

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(c) all obligations, contingent or otherwise, of such Person in respect of acceptances,
letters of credit, financial guaranty insurance policies or similar instruments;

(d) all obligations of such Person for the deferred purchase price of Property or services
(other than current trade payables incurred in the ordinary course of such Person’s business
and other than the Specified Deferred Payment Obligations);

(e) all obligations of such Person as lessee under Capitalized Leases (but not operating
leases);

(f) all Guarantees of such Person in respect of obligations of the kind referred to in
clauses (a) through (e) and (h) of this definition;

(g) all Indebtedness of other Persons secured by a Lien on any Property of such Person,
whether or not such Indebtedness is assumed by such Person; provided that the amount of such
Indebtedness shall be the lesser of (i) the fair market value of such Property at such date
of determination and (ii) the amount of such Indebtedness; and

(h) to the extent not otherwise included in this definition, net obligations to make
payments under Swap Agreements.

The amount of Indebtedness of any Person at any date shall be the outstanding balance at
such date of all unconditional obligations as described above and, with respect to
contingent obligations, the maximum liability upon the occurrence of the contingency giving
rise to the obligation; provided that, in the case of clause (h) above, the amount of
Indebtedness shall be the mark-to-market amount of such obligations at such date.

(b) The parties hereto hereby agree to add the following definition in Section 1.1 of the
Credit Agreement which shall be inserted in proper alphabetical order:

“Specified Deferred Payment Obligations” mean all payment obligations as in effect as of
April 1, 2006 with respect to: (a) the locomotive maintenance agreements with each of Alstom
Transporte, S.A. de C.V. and GETS Locomotive Services, S.A. de C.V., and (b) a track
maintenance rehabilitation agreement with Alstom Transporte, S.A. de C.V. that accrue and
are recorded on the Borrower’s balance sheet. Such payment obligations are set forth on
Schedule I to the Amendment No. 1 and Waiver No. 1 to the Credit Agreement dated as of April
7, 2006 among Kansas City Southern de México, S.A. de C.V., Arrendadora TFM, S.A. de C.V.,
each of the lenders that is a signatory thereto, Bank of America, N.A., as the
administrative agent and BBVA Bancomer, S.A., Institución de Banca Múltiple, Grupo
Financiero BBVA Bancomer, as the collateral agent.

(c) The parties hereto hereby agree to eliminate the minimum and the multiple borrowing thresholds
of the Tranche A2 Loans that the Borrower may request on a Borrowing Date under Section
2.1(b)(i), such that such Tranche A2 Loans may be borrowed in any amount.

(d) The parties hereto hereby agree that Section 6.2(b) of the Credit Agreement shall be
deleted and substituted with the following:

“(b) as soon as available, and in any case within 45 days of the end of each of the first
three fiscal quarters of each year, beginning with the fiscal quarter ending on September
30, 2005, the unaudited consolidated financial statements of the Borrower and

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its Consolidated Subsidiaries in respect of such fiscal quarter prepared in accordance with
GAAP, consistently applied (except as otherwise discussed in the notes to such financial
statements), which financial statements shall present fairly in accordance with GAAP
(subject to absence of footnotes), the financial condition of the Borrower and its
Consolidated Subsidiaries as at the end of the relevant fiscal quarter of each fiscal year
and the results of the operations of the Borrower and its Consolidated Subsidiaries for such
fiscal quarter; provided that for so long as the Borrower files a Form 10-Q with the
Securities and Exchange Commission, the furnishing by the Borrower to the Administrative
Agent of such Form 10-Q for each fiscal quarter of the Borrower shall satisfy the Borrower’s
obligation to provide the financial statements contemplated in this clause (b); ”

     SECTION 3. Waiver. (a) The parties hereto hereby waive the reporting requirements in
Section 6.2(a) of the Credit Agreement, requiring that the Borrower shall deliver to the
Administrative Agent the information contained therein within 90 days of the end of each fiscal
year with respect to fiscal year 2005, provided that such reports shall be delivered to the
Administrative Agent by April 30, 2006.

     (b) The parties hereto hereby waive the reporting requirements in Section 6.2(b) of
the Credit Agreement, requiring that the Borrower shall deliver to the Administrative Agent within
45 days of the end of the last fiscal quarter of 2005 the reports contained therein.

     (c) The parties hereto hereby waive the reporting requirements in Section 6.2(c) of
the Credit Agreement, requiring that the Borrower shall deliver to the Administrative Agent updated
financial projections of the Borrower for the three year period commencing on January 1, 2006 by
March 31, 2006, provided that such projections shall be delivered to the Administrative Agent no
later than April 30, 2006.

     (d) The parties hereto hereby waive the requirement in Section 6.2(d) of the Credit
Agreement with respect to the delivery of a certificate of a Responsible Officer of the Borrower
concurrently with the delivery of the financial statements pursuant to Section 6.2(a) and
(b) with respect to the end of fiscal year 2005, provided that such certificate shall be
delivered to the Administrative Agent no later than April 30, 2006.

     (e) The parties hereto hereby waive compliance with the obligations of Section 7.1(c)
of the Credit Agreement for the four quarters ending December 31, 2005 if compliance therewith was
calculated without giving effect to the amendment to the definition of “Indebtedness” set forth in
Section 2(a) above, provided that the Borrower is in compliance therewith after giving
effect to such amendment.

     SECTION 4. Representations and Warranties. Each of the Borrower and each Guarantor
represents and warrants to the Administrative Agent, the Collateral Agent and the Lender that:

     (a) The representations and warranties made in the Credit Agreement are (or after giving
effect hereto will be) true and correct as if made on the date hereof.

     (b) The execution and delivery by each of the Borrower and the Guarantor of this Amendment and
the performance by it of its obligations hereunder (i) are within its corporate

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powers, (ii) have been duly authorized by all necessary corporate action and (iii) do not and
will not contravene or conflict with any provision of (A) its organizational documents, (B) any
Applicable Law, decree, judgment, award, injunction or similar legal restriction in effect, except
to the extent that any contravention thereof is not reasonably likely to have a Material Adverse
Effect or (C) any document or other contractual restriction binding upon or affecting it or any of
its Properties, except to the extent that any contravention thereof is not reasonably likely to
have a Material Adverse Effect.

     SECTION 5. Effect of Amendment. All provisions of the Credit Agreement, except as
expressly amended and modified by this Amendment, shall remain in full force and effect. After this
Amendment becomes effective, all references in any Loan Document (or any other document) referring
to the Credit Agreement shall be deemed to be references to the Credit Agreement as amended by this
Amendment. This Amendment shall not be deemed to expressly or impliedly waive, amend or supplement
any provision of the Credit Agreement other than as expressly set forth herein.

     SECTION 6. Effectiveness. This Amendment shall become effective on the date when the
Administrative Agent shall have received counterparts of this Amendment duly executed and delivered
by each of the Borrower, the Guarantor, each Agent and the Majority Lenders and the following
documents, each in form and substance satisfactory to the Administrative Agent:

	 	(a)	 	certified copies of the Organizational Documents of the Borrower and the
Guarantor (unless such Organizational Documents have not been modified since the
Effective Date (other than the modification to the Borrower’s Organizational Documents
to change the name of TFM, S.A. de C.V. to Kansas City Southern de México, S.A. de
C.V., which was effective on December 2, 2005), as certified by an authorized officer
of the Borrower or the Guarantor, as applicable), and
	 
	 	(b)	 	if required by Applicable Law, documents (including appropriate resolutions of
its shareholders or the Board of Directors or similar body) evidencing due
authorization of the execution, delivery and performance by it of this Amendment by the
Borrower and the Guarantor, or a certification from an authorized officer of the
Borrower and the Guarantor if such documents are not required by Applicable Law.

     SECTION 7. Governing Law. THIS AMENDMENT THIS AGREEMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE
LAW OF THE STATE OF NEW YORK (NOT INCLUDING SUCH STATE’S CONFLICT OF LAWS PROVISIONS OTHER THAN
SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

     SECTION 8. Counterparts. This Amendment may be executed on any number of separate
counterparts (including by fax or electronic delivery), and all of such counterparts taken together
shall be deemed to constitute one and the same instrument.

     SECTION 9. Section Headings. The various headings of this Amendment are inserted for
convenience only and shall not affect the meaning or interpretation of this Amendment (or the
Credit Agreement).

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     SECTION 10. Loan Document. The parties hereto hereby acknowledge and agree that this
Amendment shall constitute a Loan Document for all purposes of the Credit Agreement and the other
Loan Documents.

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     IN WITNESS WHEREOF, the parties hereto have duly executed this Amendment as of the day and
year first above written.

	 	 	 	 	 
	 	 	KANSAS CITY SOUTHERN DE MÉXICO, S.A. DE C.V.,
	 	 	  as Borrower
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	ARRENDADORA TFM, S.A. DE C.V.,
	 	 	  as Guarantor
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:

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	 	BANK OF AMERICA, N.A.,

  as Administrative Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

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	 	BBVA BANCOMER, S.A., INSTITUCIÓN DE BANCA MÚLTIPLE,

GRUPO FINANCIERO BBVA BANCOMER,

  as Collateral Agent

 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

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	 	 	LENDERS:
	 
	 	 	 	 
	 	 	BBVA BANCOMER, S.A., INSTITUCIÓN DE BANCA MÚLTIPLE,
GRUPO FINANCIERO BBVA BANCOMER, GRAND CAYMAN BRANCH
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	Lending Office: Grand Cayman, Cayman Islands
	 
	 	 	 	 
	 	 	BBVA BANCOMER, S.A., INSTITUCIÓN DE BANCA MÚLTIPLE,
GRUPO FINANCIERO BBVA BANCOMER
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	Lending Office: Mexico City, D.F., Mexico

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	 	 	BANK OF AMERICA, N.A.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	Lending Office: Concord, California, United States of
America
	 
	 	 	 	 
	 	 	BANK OF AMERICA MEXICO, S.A.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	Lending Office: Mexico City, D.F., Mexico

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	 	 	EXPORT DEVELOPMENT CANADA
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	Lending Office: Ottawa, Ontario, Canada

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	 	 	KFW
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	Lending Office: Frankfurt, Germany

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	 	 	BANK OF MONTREAL
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	Lending Office: Chicago, Illinois, United States of
America

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	 	 	THE BANK OF NOVA SCOTIA
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	Lending Office: New York, New York, United States of
America

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	 	 	JPMORGAN CHASE BANK, N.A.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	Lending Office: New York, New York, United States of
America

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	 	 	RAIFFEISEN ZENTRALBANK OESTERREICH AG
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	Lending Office: Vienna, Austria

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                                                                    EXHIBIT 10.1

                                                      NAME: ____________________

                                 ENDOCARE, INC.
                         RESTRICTED STOCK UNIT AGREEMENT
                                    UNDER THE
                    ENDOCARE, INC. 2004 STOCK INCENTIVE PLAN

        This Restricted Stock Unit Agreement (the "Agreement") is made effective
the ___ day of _________, 200_ between ENDOCARE, INC. (the "Company", which term
shall include its Related Companies), and ______________ (the "Grantee"), [AN
EMPLOYEE/A DIRECTOR] of the Company, under the following terms and conditions.
The Agreement is issued pursuant to the Endocare, Inc. 2004 Stock Incentive Plan
(the "Plan"). Unless otherwise specifically defined in this Agreement,
capitalized terms used herein have the meanings designated in the Plan.

                                        I
                         GRANT OF RESTRICTED STOCK UNIT

        The Company has, as of _________ ___, 200_ (hereinafter referred to as
the "Date of Grant"), granted to the Grantee Restricted Stock Units with respect
to ________ shares of Common Stock in accordance with the Plan.

                                       II
                             PERIOD OF RESTRICTION

        [TIME-BASED VESTING] The Restricted Stock Units shall vest as follows:
[INSERT VESTING SCHEDULE]. Upon all or a portion of an award of Restricted Stock
Units vesting (the date of each such vesting being a "Vest Date"), one share of
Common Stock shall be issuable for each Restricted Stock Unit that vests on such
Vest Date (the "RSU Shares"). Effective on such date, the Company will transfer
such RSU Shares to the Grantee upon satisfaction of any required tax withholding
obligations. No fractional shares shall be issued with respect to vesting of
Restricted Stock Units. Any fractional portion of Restricted Stock Units shall
be paid to the Grantee in cash, based on the Fair Market Value of the Common
Stock on the applicable Vest Date. Notwithstanding the foregoing, to the extent
permitted by the Administrator in a manner that complies with Section 409A of
the Code, the Grantee may elect to defer delivery of the RSU Shares.

        [PERFORMANCE-BASED VESTING] The Restricted Stock Units shall vest as
follows: [INSERT DESCRIPTION OF PERFORMANCE CRITERIA AND WHEN RSUS WILL VEST].
Upon all or a portion of an award of Restricted Stock Units vesting (the date of
each such vesting being a "Vest Date"), one share of Common Stock shall be
issuable for each Restricted Stock Unit that vests on such Vest Date (the "RSU
Shares"). Effective on such date, the Company will transfer such RSU Shares to
the Grantee upon satisfaction of any required tax withholding obligations. No
fractional shares shall be issued with respect to vesting of Restricted Stock
Units. Any fractional portion of Restricted Stock Units shall be paid to the
Grantee in cash, based on the Fair Market Value of the Common Stock on the

                                       1
<PAGE>
applicable Vest Date. Notwithstanding the foregoing, to the extent permitted by
the Administrator in a manner that complies with Section 409A of the Code, the
Grantee may elect to defer delivery of the RSU Shares.

                                       III
                        TERMINATION OF CONTINUOUS SERVICE

        Unless otherwise determined by the Administrator in its sole discretion,
in the event that the Grantee's Continuous Service shall cease for any reason
before all or any portion of the Restricted Stock Units have vested, the Grantee
shall immediately forfeit to the Company the unvested Restricted Stock Units,
and no shares of Common Stock shall be issued nor shall any cash be paid with
respect to such Restricted Stock Units.

                                       IV
                                CHANGE IN CONTROL

        The treatment of the Restricted Stock Units upon a Change in Control or
Corporate Transaction shall be as set forth in Section 11 of the Plan.

                                        V
                                      TAXES

        The Company shall issue the shares of Common Stock underlying the
Grantee's Restricted Stock Units net of the minimum applicable statutory tax
withholding such that a portion of the shares of Common Stock that would
otherwise be issued to the Grantee will be retained by the Company and applied
to defray such tax withholding relating to the issuance of shares underlying the
Grantee's Restricted Stock Units. The Administrator, in its sole discretion, may
unilaterally modify this Section V at any time to the extent necessary or
advisable to avoid accounting treatment that the Administrator, in its sole
discretion, deems unfavorable to the Company.

                                       VI
                                    THE PLAN

        The grant of Restricted Stock Units pursuant to this Agreement is
subject to the terms and conditions set forth herein as well as the provisions
of the Plan. In the event of a conflict between the terms of this Agreement and
the Plan, the Plan shall control.

                                       VII
                                  NO ASSIGNMENT

        Except as specifically provided in the Plan, Restricted Stock Units
granted hereunder may not be sold, transferred, pledged, assigned, exchanged,
encumbered or otherwise alienated or hypothecated until the Restricted Stock
Units have vested and the underlying shares of Common Stock have been issued. In
the event of any violation of this provision, the Restricted Stock Units

                                       2
<PAGE>
will be automatically forfeited to the Company and neither the Grantee nor any
other person shall be entitled to receive any shares of Common Stock or cash in
respect of Restricted Stock Units.

                                      VIII
                                  VOTING RIGHTS

        There are no voting rights with respect to any Restricted Stock Units or
the Common Stock issuable in respect of the Restricted Stock Units prior to the
vesting of such Restricted Stock Units and the issuance of Common Stock in
respect thereof, if applicable. Subsequent to the vesting of Restricted Stock
Units and the issuance of shares of Common Stock in respect thereof, if any, the
Grantee may exercise voting rights with respect to such shares of Common Stock,
as a stockholder of the Company, for as long as the Grantee holds such shares.

                                       IX
                                    DIVIDENDS

        Prior to vesting of the Restricted Stock Units, subject to the
following, the Grantee shall be entitled to receive all dividends and other
distributions paid with respect to the shares of Common Stock issuable in
respect of such Restricted Stock Units. If the stockholders of the Company
receive dividends paid in cash, in lieu of a cash payment, the Grantee shall
automatically receive additional Restricted Stock Units equal in value to such
cash dividend otherwise payable. For such purposes, the value of the number of
additional Restricted Stock Units to be issued shall be deemed to equal the
number of shares of Common Stock, valued at the Fair Market Value of a share of
Common Stock on the date such dividend is paid, equal in value to such cash
dividend; provided, however that the Company shall not issue fractional
Restricted Stock Units, and any amount that would have otherwise been payable as
a fractional unit shall be paid in cash to the Grantee. If any such dividends or
distributions are paid to the stockholders of the Company in shares of Common
Stock, the Grantee shall receive a number of Restricted Stock Units equal to the
number of shares of Common Stock the Grantee would have received if the
Restricted Stock Units with respect to which the Grantee is receiving the
dividend had already been settled in shares of Common Stock. In each case, any
such additional Restricted Stock Units shall be subject to the same vesting
requirements and restrictions on transferability as the Restricted Stock Units
with respect to which they were distributed.

                                        X
                         VENUE AND WAIVER OF JURY TRIAL

        The Company and the Grantee (the "parties") agree that any suit, action,
or proceeding arising out of or relating to the Plan or this Agreement shall be
brought in the United States District Court for the Central District of
California (or should such court lack jurisdiction to hear such action, suit or
proceeding, in a California state court in the County of Orange) and that the
parties shall submit to the jurisdiction of such court. The parties irrevocably
waive, to the fullest extent permitted by law, any objection the party may have
to the laying of venue for any such suit, action or proceeding brought in such
court. THE PARTIES ALSO EXPRESSLY WAIVE ANY RIGHT THEY HAVE OR MAY HAVE TO A
JURY TRIAL OF ANY SUCH SUIT, ACTION OR PROCEEDING. If any one or more provisions
of this Section X shall for any

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<PAGE>
reason be held invalid or unenforceable, it is the specific intent of the
parties that such provisions shall be modified to the minimum extent necessary
to make it or its application valid and enforceable.

                                       XI
                                  MISCELLANEOUS

        In the event that any provision of this Agreement is declared to be
illegal, invalid or otherwise unenforceable by a court of competent
jurisdiction, such provision shall be reformed, if possible, to the extent
necessary to render it legal, valid and enforceable, or otherwise deleted, and
the remainder of this Agreement shall not be affected except to the extent
necessary to reform or delete such illegal, invalid or unenforceable provision.

        The captions used in this Agreement are inserted for convenience and
shall not be deemed a part of this Agreement for construction or interpretation.
Except when otherwise indicated by the context, the singular shall include the
plural and the plural shall include the singular. Use of the term "or" is not
intended to be exclusive, unless the context clearly requires otherwise.

        Neither the Plan nor this Agreement shall confer upon the Grantee any
right with respect to continuance of employment by the Company, nor shall it
interfere in any way with the Grantee's right, or the Company's right, to
terminate the Grantee's employment at any time.

        This Agreement shall inure to the benefit of and be binding upon the
parties hereto and their respective permitted heirs, beneficiaries, successors
and assigns.

        The Grantee acknowledges that a copy of the Plan, the Plan prospectus
and a copy of the Company's most recent annual report to its stockholders has
been delivered to the Grantee.

        The Plan and this Agreement shall be governed, construed, interpreted
and administered solely in accordance with the laws of the state of California,
without regard to principles of conflicts of law.

        As of the date hereof, the Company has an effective registration
statement on file with the Securities and Exchange Commission with respect to
the offer and sale of the Restricted Stock Units and the shares of Common Stock
issuable upon vesting of the Restricted Stock Units. The Company intends to
maintain the effectiveness of this registration statement but has no obligation
to do so. In the event the registration statement ceases to be effective, the
Grantee will not be able to transfer or sell any shares of Common Stock issued
to him or her upon the vesting of the Restricted Stock Units unless exemptions
from registration under applicable securities laws are available. Such
exemptions from registration are very limited and might be unavailable.

        All questions arising under the Plan or under this Agreement shall be
decided by the Administrator in its total and absolute discretion. The
resolution of such question or dispute by the Administrator shall be final and
binding on all persons.

                                       4
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        IN WITNESS WHEREOF, the Company has caused this Restricted Stock Unit
Agreement to be duly executed by its officers thereunto duly authorized, and the
Grantee has hereunto set his or her hand as of the date first above written.

ENDOCARE, INC.
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                                                   Grantee Signature
By
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Title:                               Address (please print):
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                                       5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}]]