Document:

EXHIBIT 10.10

 

THE SECURITIES EVIDENCED BY THIS INSTRUMENT
AND THE SECURITIES ISSUABLE UPON EXERCISE THEREOF HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”).  THE SECURITIES MAY NOT BE SOLD OR OFFERED
FOR SALE (A) IN THE ABSENCE OF (I) AN EFFECTIVE REGISTRATION STATEMENT FOR THE
SECURITIES UNDER THE ACT, (II) A “NO ACTION” LETTER OF THE SECURITIES AND
EXCHANGE COMMISSION AND AN EXEMPTION FROM APPLICABLE STATE AND FOREIGN
SECURITIES LAWS.  WITH RESPECT TO SUCH
SALE OR OFFER, OR (III) AN EXEMPTION UNDER THE ACT AND APPLICABLE STATE AND
FOREIGN SECURITIES LAWS OR (B) UNLESS SOLD PURSUANT TO RULE 144 UNDER THE
ACT.  NOTWITHSTANDING THE FOREGOING, THE
SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER
LOAN SECURED BY THE SECURITIES.

 

 

	
  Warrant No.
  2

  	
   

  	
  Number of
  Shares:  1,000,000

  
	
  Date of
  Issuance:  January 9, 2001

  	
   

  	
   

  	
  (subject to
  adjustment)

  

 

 

PLC SYSTEMS INC.

 

 

Warrant to Purchase
Common Shares

 

PLC Systems
Inc., a Yukon Territory corporation (the “Company”), for value received,
hereby certifies that Edwards Lifesciences Corporation, a Delaware corporation,
or its registered assigns (“Edwards”), is entitled, subject to the terms
set forth below, to purchase from the Company, at any time after the date hereof
and on or before the fifth anniversary of the date hereof, up to 1,000,000 (as
adjusted from time to time) common shares without par value (the “Common
Shares”), of the Company, pursuant to the provisions of this warrant (the “Warrant”),
at a purchase price of $2.50 per share (as adjusted from time to time, the “Purchase
Price”).  The shares purchasable
upon exercise of this Warrant, as adjusted from time to time pursuant to the
provisions of this Warrant, are sometimes referred to herein as the “Warrant
Shares.”

 

This Warrant
is issued pursuant to the Securities Purchase Agreement, dated as of January 7,
2001 (the “Securities Purchase Agreement”), by and between Edwards and
the Company.

 

1

 

1.             Exercise.

 

(a)           Manner of Exercise.  This Warrant may be exercised
by the holder of this Warrant (the “Holder”), in whole or in part, by
surrendering this Warrant and the duly executed Notice of Exercise attached
hereto as Exhibit A, at the principal office of the Company, or at such
other office or agency as the Company may designate, together with payment in
full of an amount equal to the Purchase Price multiplied by the number of the
Warrant Shares to be purchased upon such exercise (the “Aggregate Purchase
Price”).  The Purchase Price shall
be paid to the Company by certified check or wire transfer of immediately
available funds.

 

(b)           Effective Time of Exercise.  Each exercise of this Warrant
shall be deemed to have been effected immediately prior to the close of business
on the day on which this Warrant is surrendered to the Company and the
Aggregate Purchase Price paid as provided in Section 1(a).  Subject to Section 4(a), at such time, the
person or persons in whose name or names any certificates for Warrant Shares
shall be issuable, shall be deemed to have become the holder or holders of
record of the Warrant Shares evidenced by such certificates.

 

(c)           No Fractional Shares.  No fractional shares will be
issued in connection with any exercise hereunder.   In lieu of any fractional shares which would otherwise be
issuable, the Company shall pay cash equal to the product of such fraction
multiplied by the fair market value of one Warrant Share on the date of
exercise, as determined in good faith by the Board of Directors of the Company.

 

(d)           Delivery to Holder.  As soon as practicable after
the exercise of this Warrant, and in any event within ten (10) business days
thereafter, the Company shall cause to be issued in the name of, and delivered
to, the Holder, or as such Holder (upon payment by such Holder of any
applicable transfer taxes) may direct:

 

(i)            a certificate or certificates evidencing the number
of Common Shares to which such Holder shall be entitled, and

 

(ii)           in case of a partial exercise, a new warrant of like
tenor, calling in the aggregate on the face thereof for the number of Common
Shares equal (without giving effect to any adjustment therein) to the number of
such shares called for on the face of this Warrant minus the number of such
shares in respect of which the Warrant has been previously exercised.

 

2

 

2.             Covenants as to Common
Shares.  The Company hereby covenants and agrees as follows:

 

(a)           This Warrant is, and any Warrants issued in
substitution for or replacement of this Warrant will upon issuance be, duly
authorized, validly issued and fully paid and non-assessable.

 

(b)           All Warrant Shares which may be issued upon the
exercise of the rights represented by this Warrant will, upon issuance, be duly
authorized, validly issued, fully paid and non-assessable and free from all
taxes, liens and charges with respect to the issue thereof.

 

(c)           During the period within which the rights
represented by this Warrant may be exercised, the Company will at all times
have authorized and reserved at least 100% of the Common Shares needed to
provide for the exercise of the rights then represented by this Warrant.

 

(d)           The Company shall secure the listing of the Warrant
Shares upon the American Stock Exchange as required by the Securities Purchase
Agreement and shall maintain, so long as any other Common Shares shall be so
listed, such listing of all Warrant Shares from time to time issuable upon the
exercise of this Warrant; and the Company shall so list on each national
securities exchange or automated quotation system, as the case may be, and
shall maintain such listing of, any other shares of capital stock of the
Company issuable upon the exercise of this Warrant if and so long as any shares
of the same class shall be listed on such national securities exchange or
automated quotation system.

 

(e)           The Company will not, by amendment of its Articles
of Continuance or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities, or any other
voluntary action, avoid or seek to avoid the observance or performance of any
of the terms to be observed or performed by it hereunder, but will at all times
in good faith assist in the carrying out of all the provisions of this Warrant.  Without limiting the generality of the
foregoing, the Company will take all such actions as may be necessary or
appropriate in order that the Company may validly and legally issue fully paid
and non-assessable Common Shares upon the exercise of this Warrant.

 

(f)            This Warrant will be binding upon any entity
succeeding to the Company by merger, consolidation or acquisition of all or
substantially all of the Company’s assets.

 

3.             Adjustments.  The Purchase Price and the
number of Common Shares issuable upon exercise of this Warrant shall be
adjusted from time to time as follows:

 

3

 

(a)           Merger, Sale of Assets, etc.  A recapitalization, reorganization, merger
or consolidation of the Company with or into another corporation in which the
Company is not the surviving entity, merger or consolidation in which the
Company is the surviving entity but the shares of the Company’s capital stock
outstanding immediately prior to the merger or consolidation are converted into
other property, whether in the form of securities, cash, or otherwise, or sale
or transfer of all or substantially all of the Company’s assets is referred to
herein as an “Organic Change.” In the event of an Organic Change, lawful
provision shall be made so that the Holder shall be entitled to receive upon
exercise of this Warrant, the number of shares of stock or other securities or
property of the successor entity resulting from such Organic Change that a
holder of the Common Shares deliverable upon exercise of this Warrant would
have been entitled to receive in such Organic Change if this Warrant had been
exercised immediately before such Organic Change, all subject to further
adjustment as provided in this Section 3. 
The foregoing provisions of this Section 3(a) shall similarly apply to
successive Organic Changes and to the stock or securities of any other entity
that are at the time receivable upon the exercise of this Warrant.  If the per-share consideration payable to
the holder of Common Shares in connection with any such transaction is in a
form other than cash or marketable securities, then the value of such
consideration shall be determined in good faith by the Company’s Board of
Directors and a copy of the resolutions reflecting such determination shall be
provided to the Holder.  In all events,
appropriate adjustment (as determined in good faith by the Company’s Board of
Directors) shall be made in the application of the provisions of this Warrant
with respect to the rights and interests of the Holder after the transaction,
to the end that the provisions of this Warrant shall be applicable after that
event, as near as reasonably may be, in relation to any shares or other
property deliverable after that event upon exercise of this Warrant.

 

(b)           Reclassification, etc.  If the Company, by reclassification of
securities or otherwise, changes any of the securities as to which purchase
rights under this Warrant exist into the same or a different number of
securities of any other class or classes, this Warrant shall thereafter
represent the right to acquire such number and kind of securities as would have
been issuable as the result of such change with respect to the securities as
would have been issuable as the result of such change with respect to the
securities that were subject to the purchase rights under this Warrant
immediately prior to such reclassification or other change and the Purchase
Price therefor shall be appropriately adjusted, all subject to further
adjustment as provided in this Section 3.

 

(c)           Split, Subdivision or
Combination of Shares.  If the Company changes (by any stock split,
recapitalization, combination, reverse stock split or otherwise) the securities
as to which purchase rights under this Warrant exist, into a different number
of securities of the same class, the Purchase Price for such securities shall
be proportionately decreased in the case of a split or subdivision or
proportionately increased in the case of a combination or reverse stock split.

 

4

 

(d)           Adjustments for Dividends in
Stock or Other Securities or Property.  If the holders of the securities as to which
purchase rights under this Warrant exist at the time shall have received, or,
on or after the record date fixed for the determination of eligible
stockholders, shall have become entitled to receive, without payment therefor,
other or additional stock or other securities or property (other than cash) of
the Company by way of dividend, then in each case, this Warrant shall represent
the right to acquire, in addition to the number of shares of the security
receivable upon exercise of this Warrant, and without payment of any additional
consideration therefor, the amount of such other or additional stock or other
securities or property (other than cash) of the Company that the Holder would
have held on the date of such exercise had it been the holder of record of the
security receivable upon exercise of this Warrant on the date hereof and had
thereafter, during the period from the date hereof to and including the date of
such exercise, retained such shares and/or all other additional stock available
by it as aforesaid during such period, giving effect to all adjustments called
for during such period by the provisions of this Section 3.

 

(e)           Adjustments for Common
Shares Issue.  If the Company issues Common Shares for a consideration per
Common Share less than the Fair Value per Common Share on the date of issuance
of such additional Common Shares, the Purchase Price shall be adjusted in
accordance with the following formula:

 

	
   

  	
   

  	
   

  	
  C

  	
   

  
	
  P’

  	
  =

  	
  P  

  	
  X

  	
  O   + 

  	
  M

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  A

  	
   

  
							

 

where:

 

	
  P’

  	
  =

  	
  the adjusted
  Purchase Price

  
	
   

  	
   

  	
   

  
	
  P

  	
  =

  	
  the then
  current Purchase Price

  
	
   

  	
   

  	
   

  
	
  O

  	
  =

  	
  the number
  of Common Shares outstanding immediately prior to the issuance of such
  additional Common Shares

  
	
   

  	
   

  	
   

  
	
  C

  	
  =

  	
  the
  aggregate consideration received for the issuance of such additional Common
  Shares

  
	
   

  	
   

  	
   

  
	
  M

  	
  =

  	
  the Fair
  Value of one Common Share on the date of issuance of such additional Common
  Shares

  
	
   

  	
   

  	
   

  
	
  A

  	
  =

  	
  the number
  of Common Shares outstanding immediately after the issuance of such
  additional Common Shares

  

 

5

 

The adjustment shall be made
successively whenever any such issuance is made, and shall become effective
immediately after such issuance, provided that in the event the adjustment
set forth above would result in a Purchase Price less than $0.88 (as adjusted
by the occurrence of any of the events set forth in subsections (a)-(d) of this
Section 3 (as adjusted, the “Minimum Purchase Price”)), the Purchase Price
shall be adjusted to the Minimum Purchase Price.  This subsection (e) does not apply to any sale or issuance of
securities pursuant to (i) subsections (a)-(d) of this Section 3, (ii) the
exercise of the Warrants, or the conversion or exchange of other securities
convertible or exchangeable for Common Shares the issuance of which caused an
adjustment to be made under Section 3(f), or (iii) an employee stock
option plan, stock purchase plan or similar benefit program, or any sale or
issuance to directors, employees or consultants, so long as such sales or
issuances of Common Shares, in the aggregate, do not exceed, in any five-year
period, 20%, on a fully diluted basis, of the outstanding equity shares of the
Company as of the date hereof.

 

(f)            Adjustments for Convertible
Securities Issue.  If the Company issues any securities
convertible into or exchangeable for Common Shares for a consideration per
Common Share initially deliverable upon conversion or exchange of such
securities less than the Fair Value per Common Share on the date of issuance of
such securities, the Purchase Price shall be adjusted in accordance with the
following formula:

 

	
   

  	
   

  	
   

  	
  C   +   E

  	
   

  
	
  P’

  	
  =

  	
  P  

  	
  X

  	
  O    +  

  	
  M

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  O    +  

  	
  D

  	
   

  
								

 

where:

 

	
  P’

  	
  =

  	
  the adjusted
  Purchase Price

  
	
   

  	
   

  	
   

  
	
  P

  	
  =

  	
  the then
  current Purchase Price

  
	
   

  	
   

  	
   

  
	
  O

  	
  =

  	
  the number
  of Common Shares outstanding immediately prior to the issuance of such
  securities

  
	
   

  	
   

  	
   

  
	
  C

  	
  =

  	
  the
  aggregate consideration received for the issuance of such securities

  
	
   

  	
   

  	
   

  
	
  E

  	
  =

  	
  the minimum
  amount of consideration required to be paid to convert or exchange such
  securities into or for Common Shares

  
	
   

  	
   

  	
   

  
	
  M

  	
  =

  	
  the Fair
  Value of one Common Share on the date of issuance of such securities

  

 

6

 

	
  D

  	
  =

  	
  the maximum
  number of Common Shares deliverable upon conversion or in exchange for such
  securities at the initial conversion or exchange rate

  

 

The adjustment shall be made
successively whenever any such issuance is made, and shall become effective
immediately after such issuance, provided that in the event the adjustment
set forth above would result in a Purchase Price less than the Minimum Purchase
Price, the Purchase Price shall be adjusted to the Minimum Purchase Price.  If all of the Common Shares deliverable upon
conversion or exchange of such securities have not been issued when such
securities are no longer outstanding, then the Purchase Price shall promptly be
readjusted to the Purchase Price which would then be in effect had the
adjustment upon the issuance of such securities been made on the basis of the
actual number of shares of Common Shares issued upon conversion or exchange of
such securities.

 

(g)           Consideration Received.  If the consideration
received by the Company for issuances of securities pursuant to subsections (e)
and (f) of this Section 3 is in a form other than cash or marketable
securities, then the value of such consideration shall be determined in good
faith by the company’s Board of Directors and a copy of the resolutions reflecting
such determination shall be provided to the Holder.

 

(h)           Adjustment in Number of
Common Shares.  When an adjustment to the Purchase Price is required to be made
pursuant to this Section 3, the number of Common Shares purchasable upon the
exercise of this Warrant shall be adjusted to the number determined by dividing
(i) an amount equal to the number of Common Shares issuable upon the exercise
of this Warrant immediately prior to such adjustment multiplied by the Purchase
Price in effect immediately prior to such adjustment by (ii) the Purchase Price
in effect immediately after such adjustment.

 

(i)            Certificate as to
Adjustments.  Upon the occurrence of each adjustment or readjustment pursuant
to this Section 3, the Company at its expense shall promptly compute such
adjustment or readjustment in accordance with the terms hereof and furnish to
the Holder a certificate setting forth such adjustment or readjustment and
showing in detail the facts upon which such adjustment or readjustment is
based.  The Company shall, upon the
written request, at any time, of the Holder, furnish or cause to be furnished
to the Holder a like certificate setting forth: (i) such adjustments and
readjustments; (ii) the Purchase Price at the time in effect; and (iii) the number
of shares and the amount, if any, of other property that at the time would be
received upon the exercise of the Warrant.

 

(j)            No Impairment.  The Company will not, by any
voluntary action, avoid or seek to avoid the observance or performance of any
of the terms to be observed or performed hereunder by the Company, but will at
all times in good faith assist in the carrying

 

7

 

out of all the provisions of this Section 3 and in the taking of all
such action as may be necessary or appropriate in order to protect the rights
of the Holder against impairment.

 

4.             Transfers.

 

(a)           Unregistered Security.  The Holder acknowledges that
this Warrant and the Warrant Shares have not been registered under the
Securities Act of 1933, as amended (the “Act”), and agrees not to sell,
pledge, distribute, offer for sale, transfer or otherwise dispose of this
Warrant or any Warrant Shares (i) in the absence of (x) an effective
registration statement for the securities under the Act, (y) a “no action”
letter of the Securities and Exchange Commission and an exemption from
applicable state and foreign securities laws with respect to such sale or
offer, or (z) an exemption under the Act and applicable state and foreign
securities laws or (ii) unless such sale is made pursuant to Rule 144 under the
Act. Each certificate or other instrument for Common Shares issued upon the
exercise of this Warrant shall bear a legend substantially to the foregoing
effect unless and until the Warrant Shares have been registered.

 

(b)           Transferability of Warrant.  Subject to the provisions of
this Warrant described herein, this Warrant and all rights hereunder may be
transferred in whole or in part without the prior written consent of the
Company.

 

(c)           Tranferability of Warrant
Shares.  The Holder
shall not sell, pledge, distribute, offer for sale, transfer or otherwise
dispose of any Warrant Share within 33 days of its issuance by the Company to
the Holder.

 

(d)           Warrant Register.  The Company shall maintain at
its principal offices (or such other office or agency of the Company as it may
designate), a register for this Warrant, in which the Company shall record the
name and address of the person in whose name this Warrant has been issued, as
well as the name and address of each transferee.  The Company may treat the person in whose name any Warrant is
registered on the register as the owner and holder thereof for all purposes,
notwithstanding any notice to the contrary, but in all events recognizing any
transfers made in accordance with the terms of this Warrant.

 

(e)           Exchange of Warrant Upon a
Transfer.  On surrender of this Warrant for exchange, properly endorsed on
the Assignment Form attached hereto as Exhibit B, and subject to the
provisions of this Warrant, the Company at its expense shall promptly issue to
or on the order of the Holder a new warrant or warrants of like tenor, in the
name of the Holder or as the Holder (on payment by the Holder of any applicable
transfer taxes) may direct, for the number of shares issuable upon exercise
hereof.

 

5.             Notices of Certain
Transactions.   If (a) the Company takes any action or enters into any
transaction contemplated by Section 3(a)-(f) or (b) there is a voluntary or

 

8

 

involuntary dissolution,
liquidation or winding-up of the Company, then, and in each such case, the
Company will mail or cause to be mailed to the Holder a notice specifying, as
the case may be, (i) the date on which a record is to be taken for the purpose
of such dividend, distribution or right, and stating the amount and character
of such dividend, distribution or right, or (ii) the effective date on which
such Organic Change, reclassification of or change to securities, dissolution,
liquidation or winding-up is to take place, and the time, if any is to be
fixed, as of which the holders of record of its Common Shares are to be
determined.  Such notice shall be sent
at least fifteen (15) business days prior to the record date or effective date
for the event specified in such notice.

 

6.             Replacement of Warrants.  Upon receipt of evidence
reasonably satisfactory to the Company of the loss, theft, destruction or
mutilation of this Warrant and (in the case of loss, theft or destruction) upon
delivery of an indemnity agreement in an amount reasonably satisfactory to the
Company, or (in the case of mutilation) upon surrender and cancellation of this
Warrant, the Company will issue, in lieu thereof, a new warrant of like tenor.

 

7.             Notices.  All notices, demands,
requests, consents, approvals or other communications required or permitted to
be given hereunder or which are given with respect to this Warrant shall be in
writing and shall be delivered (charges prepaid, receipt confirmed or return
receipt requested (if available)) by hand, by nationally recognized air courier
service, by certified mail or facsimile, addressed as set forth below or to
such other address as such party shall have specified most recently by written
notice.  Notice shall be deemed given
and effective (i) if delivered by hand or by nationally recognized courier
service, when delivered at the address specified in this Section 7 (or in
accordance with the latest unrevoked written direction from such party), (ii)
if by certified mail, upon mailing or (iii) if given by facsimile when such
facsimile is transmitted to the fax number specified in this Section 7 (or in
accordance with the latest unrevoked written direction from such party),
provided the appropriate confirmation is received.

 

	
  To PLC:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PLC Systems
  Inc.

  	
   

  	
   

  
	
   

  	
  10 Forge Park

  	
   

  	
   

  
	
   

  	
  Franklin, MA 02038

  	
   

  	
   

  
	
   

  	
  Attention:  Chief Executive Officer

  	
   

  	
   

  
	
   

  	
  Fax:  (508) 541-7990

  	
   

  	
   

  

 

9

 

	
  with a copy
  (which shall not constitute notice) to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Hale and
  Dorr LLP

  	
   

  	
   

  
	
   

  	
  60 State
  Street

  	
   

  	
   

  
	
   

  	
  Boston,
  MA  02109

  	
   

  	
   

  
	
   

  	
  Attention:  Steven D. Singer, Esq.

  	
   

  	
   

  
	
   

  	
  Fax: (617)
  526-5000

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  To
  Purchaser:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Edwards
  Lifesciences Corporation

  	
   

  	
   

  
	
   

  	
  One Edwards
  Way

  	
   

  	
   

  
	
   

  	
  Irvine,
  California 92614

  	
   

  	
   

  
	
   

  	
  Attention:  Associate General Counsel

  	
   

  	
   

  
	
   

  	
  Fax: (949)
  250-6850

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  with a copy
  (which shall not constitute notice) to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Skadden, Arps, Slate, Meagher & Flom LLP

  	
   

  	
   

  
	
   

  	
  300 South
  Grand Avenue, Suite 3400

  	
   

  	
   

  
	
   

  	
  Los Angeles,
  California  90071-3144

  	
   

  	
   

  
	
   

  	
  Attention:
  Joseph J. Giunta, Esq.

  	
   

  	
   

  
	
   

  	
  Fax: (213)
  687-5600

  	
   

  	
   

  

 

8.             Amendments and
Modifications; Waivers and Extensions.

 

(a)           No amendment, modification or termination of this
Warrant shall be binding upon any other party unless executed in writing by the
parties hereto intending to be bound thereby.

 

(b)           Any party to this Warrant may waive any right,
breach or default which such party has the right to waive; provided that such waiver
will not be effective against the waiving party unless it is in writing, is
signed by such party, and specifically refers to this Warrant.  Waivers may be made in advance or after the
right waived has arisen or the breach or default waived has occurred.  Any waiver may be conditional.  No waiver of any breach of any agreement or
provision herein contained shall be deemed a waiver of any preceding or
succeeding breach thereof nor of any other agreement or provision herein
contained.  No failure or delay in
exercising any right, power or privilege hereunder shall be deemed a waiver or
extension of the time for performance of any other obligations or acts nor
shall any single or partial exercise thereof preclude any other or further
exercise thereof or the exercise of any other right, power or privilege.

 

10

 

9.             Interpretation.   When a reference is made in this Warrant to a
Section or Exhibit, such reference shall be to a Section or Exhibit of this
Warrant unless otherwise indicated.  The
titles and headings contained in this Warrant are for reference purposes only
and shall not affect in any way the meaning or interpretation of this
Warrant.  When the words “includes” or
“including” are used in this Warrant, they shall be deemed to be followed by
the words “without limitation.”

 

10.          Governing Law; Jurisdiction
and Consent to Service.  This Warrant shall be governed by,
interpreted under, and construed in accordance with the internal laws of the
State of New York, including, without limitation, Sections 5-1401, 5-1402 of
the New York General Obligations Law and New York Civil Practice Laws and Rules
327(b).

 

In accordance
with the laws of the State of New York, and without limiting the jurisdiction
or venue of any other court, the Holder and the Company (a) agree that any
suit, action or proceeding arising out of or relating to this Warrant shall be
brought solely in the state or federal courts of New York; (b) consent to the
exclusive jurisdiction of each such court in any suit, action or proceeding
relating to or arising out of this Warrant; (c) waive any objection which any
of them may have to the laying of venue in any such suit, action or proceeding
in any such court; and (d) agree that service of any court paper in any such
suit, action or proceeding may be made in any manner as may be provided under
the applicable laws or court rules governing service of process in such court.

 

11

 

	
   

  	
  PLC SYSTEMS INC.  

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/
  James G. Thomasch

  
	
   

  	
   

  	
  Name: James
  G. Thomasch

  
	
   

  	
   

  	
  Title:  

  	
  Senior Vice
  President and 

  
	
   

  	
   

  	
  Chief Financial
  Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WARRANT TO
  PURCHASE COMMON SHARES 

  
					

 

 

EXHIBIT A

 

NOTICE OF EXERCISE

 

	
  To:

  	
  PLC Systems
  Inc.

  

 

The
undersigned hereby irrevocably, subject to the terms and conditions contained
in the attached Warrant, elects to purchase
              
Common Shares of PLC Systems Inc., pursuant to the provisions of Section 1 of
the attached Warrant, and tenders herewith payment of the Aggregate Purchase
Price for such shares in full, in cash.

 

In exercising
this Warrant, the undersigned hereby confirms and acknowledges that the Common
Shares are being acquired solely for the account of the undersigned and the
undersigned will not offer, sell or otherwise dispose of any of the Common
Shares in contravention of Section 4 of the Warrant.

 

Please issue a
certificate or certificates representing said Common Shares in the name of the
undersigned or in such other name as is specified below.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  (Name)

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (Name)

  

 

 

Please issue a
new warrant for the unexercised portion of the attached Warrant in the name of
the undersigned:

 

 

	
   

  	
   

  	
   

  
	
   

  	
  (Name)

  
	
   

  	
   

  
	
  Dated: 

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Signature

  
					

 

A-1

 

EXHIBIT B

 

ASSIGNMENT FORM

 

FOR VALUE
RECEIVED, the undersigned registered owner of this Warrant hereby sells,
assigns and transfer unto the Assignee named below the attached Warrant,
together with all of the rights of the undersigned under the Warrant, with
respect to the number of Common Shares set forth below:

 

	
  Name of Assignee

  	
   

  	
  Address

  	
   

  	
  No. of Shares

  

 

 

and does hereby irrevocably
constitute and appoint
                                   
Attorney to make such transfer on the books of PLC Systems Inc., maintained for
the purpose, with full power of substitution in the premises.

 

The
undersigned also represents that, by assignment hereof, the Assignee
acknowledges that this Warrant and the securities to be issued upon exercise
hereof are being acquired for investment and that the Assignee will not offer,
sell or otherwise dispose of this Warrant or any securities to be issued upon
exercise hereof in contravention of Section 4 of the Warrant.  Further, the Assignee has acknowledged that
upon exercise of this Warrant, the Assignee shall, if requested by the Company,
confirm in writing, in a form satisfactory to the Company, that the securities
so purchased are being acquired for investment and not with a view toward
distribution or resale.

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Signature of
  Holder

  
	
   

  	
   

  
	
   

  	
  Note:  The above signature should 

  
	
   

  	
  correspond
  exactly with the name

  
	
   

  	
  on the face
  of the attached Warrant.

  

 

B-1EXHIBIT 10.11

 

THE SECURITIES EVIDENCED BY THIS INSTRUMENT
AND THE SECURITIES ISSUABLE UPON EXERCISE THEREOF HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”).  THE SECURITIES MAY NOT BE SOLD OR OFFERED
FOR SALE (A) IN THE ABSENCE OF (I) AN EFFECTIVE REGISTRATION STATEMENT FOR THE
SECURITIES UNDER THE ACT, (II) A “NO ACTION” LETTER OF THE SECURITIES AND
EXCHANGE COMMISSION AND AN EXEMPTION FROM APPLICABLE STATE AND FOREIGN
SECURITIES LAWS.  WITH RESPECT TO SUCH
SALE OR OFFER, OR (III) AN EXEMPTION UNDER THE ACT AND APPLICABLE STATE AND
FOREIGN SECURITIES LAWS OR (B) UNLESS SOLD PURSUANT TO RULE 144 UNDER THE
ACT.  NOTWITHSTANDING THE FOREGOING, THE
SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER
LOAN SECURED BY THE SECURITIES.

 

 

	
  Warrant No.
  3

  	
   

  	
  Number of Shares:  1,000,000

  
	
  Date of
  Issuance:  January 9, 2001

  	
   

  	
  (subject to adjustment)

  

 

 

PLC SYSTEMS INC.

 

 

Warrant to Purchase
Common Shares

 

PLC Systems
Inc., a Yukon Territory corporation (the “Company”), for value received,
hereby certifies that Edwards Lifesciences Corporation, a Delaware corporation,
or its registered assigns (“Edwards”), is entitled, subject to the terms
set forth below, to purchase from the Company, at any time after the date hereof
and on or before the fifth anniversary of the date hereof, up to 1,000,000 (as
adjusted from time to time) common shares without par value (the “Common
Shares”), of the Company, pursuant to the provisions of this warrant (the “Warrant”),
at a purchase price of $3.50 per share (as adjusted from time to time, the “Purchase
Price”).  The shares purchasable
upon exercise of this Warrant, as adjusted from time to time pursuant to the
provisions of this Warrant, are sometimes referred to herein as the “Warrant
Shares.”

 

This Warrant
is issued pursuant to the Securities Purchase Agreement, dated as of January 7,
2001 (the “Securities Purchase Agreement”), by and between Edwards and
the Company.

 

1

 

1.             Exercise.

 

(a)           Manner of Exercise.  This Warrant may be exercised
by the holder of this Warrant (the “Holder”), in whole or in part, by
surrendering this Warrant and the duly executed Notice of Exercise attached
hereto as Exhibit A, at the principal office of the Company, or at such
other office or agency as the Company may designate, together with payment in
full of an amount equal to the Purchase Price multiplied by the number of the
Warrant Shares to be purchased upon such exercise (the “Aggregate Purchase
Price”).  The Purchase Price shall
be paid to the Company by certified check or wire transfer of immediately
available funds.

 

(b)           Effective Time of Exercise.  Each exercise of this Warrant
shall be deemed to have been effected immediately prior to the close of
business on the day on which this Warrant is surrendered to the Company and the
Aggregate Purchase Price paid as provided in Section 1(a).  Subject to Section 4(a), at such time, the
person or persons in whose name or names any certificates for Warrant Shares
shall be issuable, shall be deemed to have become the holder or holders of
record of the Warrant Shares evidenced by such certificates.

 

(c)           No Fractional Shares.  No fractional shares will be
issued in connection with any exercise hereunder.   In lieu of any fractional shares which would otherwise be
issuable, the Company shall pay cash equal to the product of such fraction
multiplied by the fair market value of one Warrant Share on the date of
exercise, as determined in good faith by the Board of Directors of the Company.

 

(d)           Delivery to Holder.  As soon as practicable after
the exercise of this Warrant, and in any event within ten (10) business days
thereafter, the Company shall cause to be issued in the name of, and delivered
to, the Holder, or as such Holder (upon payment by such Holder of any
applicable transfer taxes) may direct:

 

(i)            a certificate or certificates evidencing the number
of Common Shares to which such Holder shall be entitled, and

 

(ii)           in case of a partial exercise, a new warrant of like
tenor, calling in the aggregate on the face thereof for the number of Common
Shares equal (without giving effect to any adjustment therein) to the number of
such shares called for on the face of this Warrant minus the number of such
shares in respect of which the Warrant has been previously exercised.

 

2

 

2.             Covenants as to Common
Shares.  The Company hereby covenants and agrees as follows:

 

(a)           This Warrant is, and any Warrants issued in
substitution for or replacement of this Warrant will upon issuance be, duly
authorized, validly issued and fully paid and non-assessable.

 

(b)           All Warrant Shares which may be issued upon the
exercise of the rights represented by this Warrant will, upon issuance, be duly
authorized, validly issued, fully paid and non-assessable and free from all
taxes, liens and charges with respect to the issue thereof.

 

(c)           During the period within which the rights
represented by this Warrant may be exercised, the Company will at all times
have authorized and reserved at least 100% of the Common Shares needed to
provide for the exercise of the rights then represented by this Warrant.

 

(d)           The Company shall secure the listing of the Warrant
Shares upon the American Stock Exchange as required by the Securities Purchase
Agreement and shall maintain, so long as any other Common Shares shall be so
listed, such listing of all Warrant Shares from time to time issuable upon the
exercise of this Warrant; and the Company shall so list on each national
securities exchange or automated quotation system, as the case may be, and
shall maintain such listing of, any other shares of capital stock of the
Company issuable upon the exercise of this Warrant if and so long as any shares
of the same class shall be listed on such national securities exchange or
automated quotation system.

 

(e)           The Company will not, by amendment of its Articles
of Continuance or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities, or any other
voluntary action, avoid or seek to avoid the observance or performance of any
of the terms to be observed or performed by it hereunder, but will at all times
in good faith assist in the carrying out of all the provisions of this Warrant.  Without limiting the generality of the
foregoing, the Company will take all such actions as may be necessary or
appropriate in order that the Company may validly and legally issue fully paid
and non-assessable Common Shares upon the exercise of this Warrant.

 

(f)            This Warrant will be binding upon any entity
succeeding to the Company by merger, consolidation or acquisition of all or
substantially all of the Company’s assets.

 

3.             Adjustments.  The Purchase Price and the
number of Common Shares issuable upon exercise of this Warrant shall be
adjusted from time to time as follows:

 

3

 

(a)           Merger, Sale of Assets, etc.  A recapitalization, reorganization, merger
or consolidation of the Company with or into another corporation in which the
Company is not the surviving entity, merger or consolidation in which the
Company is the surviving entity but the shares of the Company’s capital stock
outstanding immediately prior to the merger or consolidation are converted into
other property, whether in the form of securities, cash, or otherwise, or sale
or transfer of all or substantially all of the Company’s assets is referred to
herein as an “Organic Change.” In the event of an Organic Change, lawful
provision shall be made so that the Holder shall be entitled to receive upon
exercise of this Warrant, the number of shares of stock or other securities or
property of the successor entity resulting from such Organic Change that a
holder of the Common Shares deliverable upon exercise of this Warrant would
have been entitled to receive in such Organic Change if this Warrant had been
exercised immediately before such Organic Change, all subject to further
adjustment as provided in this Section 3. 
The foregoing provisions of this Section 3(a) shall similarly apply to
successive Organic Changes and to the stock or securities of any other entity
that are at the time receivable upon the exercise of this Warrant.  If the per-share consideration payable to
the holder of Common Shares in connection with any such transaction is in a
form other than cash or marketable securities, then the value of such
consideration shall be determined in good faith by the Company’s Board of
Directors and a copy of the resolutions reflecting such determination shall be
provided to the Holder.  In all events,
appropriate adjustment (as determined in good faith by the Company’s Board of
Directors) shall be made in the application of the provisions of this Warrant with
respect to the rights and interests of the Holder after the transaction, to the
end that the provisions of this Warrant shall be applicable after that event,
as near as reasonably may be, in relation to any shares or other property
deliverable after that event upon exercise of this Warrant.

 

(b)           Reclassification, etc.  If the Company, by reclassification of
securities or otherwise, changes any of the securities as to which purchase
rights under this Warrant exist into the same or a different number of
securities of any other class or classes, this Warrant shall thereafter
represent the right to acquire such number and kind of securities as would have
been issuable as the result of such change with respect to the securities as
would have been issuable as the result of such change with respect to the
securities that were subject to the purchase rights under this Warrant
immediately prior to such reclassification or other change and the Purchase
Price therefor shall be appropriately adjusted, all subject to further
adjustment as provided in this Section 3.

 

(c)           Split, Subdivision or
Combination of Shares.  If the Company changes (by any stock split,
recapitalization, combination, reverse stock split or otherwise) the securities
as to which purchase rights under this Warrant exist, into a different number
of securities of the same class, the Purchase Price for such securities shall
be proportionately decreased in the case of a split or subdivision or
proportionately increased in the case of a combination or reverse stock split.

 

4

 

(d)           Adjustments for Dividends in
Stock or Other Securities or Property.  If the holders of the securities as to which
purchase rights under this Warrant exist at the time shall have received, or,
on or after the record date fixed for the determination of eligible
stockholders, shall have become entitled to receive, without payment therefor,
other or additional stock or other securities or property (other than cash) of
the Company by way of dividend, then in each case, this Warrant shall represent
the right to acquire, in addition to the number of shares of the security
receivable upon exercise of this Warrant, and without payment of any additional
consideration therefor, the amount of such other or additional stock or other
securities or property (other than cash) of the Company that the Holder would
have held on the date of such exercise had it been the holder of record of the
security receivable upon exercise of this Warrant on the date hereof and had
thereafter, during the period from the date hereof to and including the date of
such exercise, retained such shares and/or all other additional stock available
by it as aforesaid during such period, giving effect to all adjustments called
for during such period by the provisions of this Section 3.

 

(e)           Adjustments for Common
Shares Issue.  If the Company issues Common Shares for a consideration per
Common Share less than the Fair Value per Common Share on the date of issuance
of such additional Common Shares, the Purchase Price shall be adjusted in
accordance with the following formula:

 

	
   

  	
   

  	
   

  	
  C

  	
   

  
	
  P’

  	
  =

  	
  P  

  	
  X

  	
  O   + 

  	
  M

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  A

  	
   

  
							

 

where:

 

	
  P’

  	
   

  	
  =

  	
   

  	
  the adjusted
  Purchase Price

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  P

  	
   

  	
  =

  	
   

  	
  the then
  current Purchase Price

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  O

  	
   

  	
  =

  	
   

  	
  the number
  of Common Shares outstanding immediately prior to the issuance of such
  additional Common Shares

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  C

  	
   

  	
  =

  	
   

  	
  the
  aggregate consideration received for the issuance of such additional Common
  Shares

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M

  	
   

  	
  =

  	
   

  	
  the Fair
  Value of one Common Share on the date of issuance of such additional Common
  Shares

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  A

  	
   

  	
  =

  	
   

  	
  the number
  of Common Shares outstanding immediately after the issuance of such
  additional Common Shares

  

 

5

 

The adjustment shall be made
successively whenever any such issuance is made, and shall become effective
immediately after such issuance, provided that in the event the adjustment
set forth above would result in a Purchase Price less than $0.88 (as adjusted
by the occurrence of any of the events set forth in subsections (a)-(d) of this
Section 3 (as adjusted, the “Minimum Purchase Price”)), the Purchase Price
shall be adjusted to the Minimum Purchase Price.  This subsection (e) does not apply to any sale or issuance of
securities pursuant to (i) subsections (a)-(d) of this Section 3, (ii) the exercise
of the Warrants, or the conversion or exchange of other securities convertible
or exchangeable for Common Shares the issuance of which caused an adjustment to
be made under Section 3(f), or (iii) an employee stock option plan, stock
purchase plan or similar benefit program, or any sale or issuance to directors,
employees or consultants, so long as such sales or issuances of Common Shares,
in the aggregate, do not exceed, in any five-year period, 20%, on a fully
diluted basis, of the outstanding equity shares of the Company as of the date
hereof.

 

(f)            Adjustments for Convertible
Securities Issue.  If the Company issues any securities
convertible into or exchangeable for Common Shares for a consideration per
Common Share initially deliverable upon conversion or exchange of such
securities less than the Fair Value per Common Share on the date of issuance of
such securities, the Purchase Price shall be adjusted in accordance with the
following formula:

 

	
   

  	
   

  	
   

  	
  C   +   E

  	
   

  
	
  P’

  	
  =

  	
  P  

  	
  X

  	
  O    +  

  	
  M

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  O    +  

  	
  D

  	
   

  
								

 

where:

 

	
  P’

  	
   

  	
  =

  	
   

  	
  the adjusted
  Purchase Price

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  P

  	
   

  	
  =

  	
   

  	
  the then
  current Purchase Price

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  O

  	
   

  	
  =

  	
   

  	
  the number
  of Common Shares outstanding immediately prior to the issuance of such
  securities

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  C

  	
   

  	
  =

  	
   

  	
  the
  aggregate consideration received for the issuance of such securities

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  E

  	
   

  	
  =

  	
   

  	
  the minimum
  amount of consideration required to be paid to convert or exchange such
  securities into or for Common Shares

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  M

  	
   

  	
  =

  	
   

  	
  the Fair
  Value of one Common Share on the date of issuance of such securities

  

 

6

 

	
  D

  	
   

  	
  =

  	
   

  	
  the maximum
  number of Common Shares deliverable upon conversion or in exchange for such
  securities at the initial conversion or exchange rate

  

 

The adjustment shall be made
successively whenever any such issuance is made, and shall become effective
immediately after such issuance, provided that in the event the adjustment
set forth above would result in a Purchase Price less than the Minimum Purchase
Price, the Purchase Price shall be adjusted to the Minimum Purchase Price.  If all of the Common Shares deliverable upon
conversion or exchange of such securities have not been issued when such
securities are no longer outstanding, then the Purchase Price shall promptly be
readjusted to the Purchase Price which would then be in effect had the
adjustment upon the issuance of such securities been made on the basis of the
actual number of shares of Common Shares issued upon conversion or exchange of
such securities.

 

(g)           Consideration Received.  If the consideration
received by the Company for issuances of securities pursuant to subsections (e)
and (f) of this Section 3 is in a form other than cash or marketable
securities, then the value of such consideration shall be determined in good
faith by the company’s Board of Directors and a copy of the resolutions
reflecting such determination shall be provided to the Holder.

 

(h)           Adjustment in Number of
Common Shares.  When an adjustment to the Purchase Price is required to be made
pursuant to this Section 3, the number of Common Shares purchasable upon the
exercise of this Warrant shall be adjusted to the number determined by dividing
(i) an amount equal to the number of Common Shares issuable upon the exercise
of this Warrant immediately prior to such adjustment multiplied by the Purchase
Price in effect immediately prior to such adjustment by (ii) the Purchase Price
in effect immediately after such adjustment.

 

(i)            Certificate as to
Adjustments.  Upon the occurrence of each adjustment or readjustment pursuant
to this Section 3, the Company at its expense shall promptly compute such
adjustment or readjustment in accordance with the terms hereof and furnish to
the Holder a certificate setting forth such adjustment or readjustment and
showing in detail the facts upon which such adjustment or readjustment is
based.  The Company shall, upon the
written request, at any time, of the Holder, furnish or cause to be furnished
to the Holder a like certificate setting forth: (i) such adjustments and
readjustments; (ii) the Purchase Price at the time in effect; and (iii) the
number of shares and the amount, if any, of other property that at the time
would be received upon the exercise of the Warrant.

 

(j)            No Impairment.  The Company will not, by any
voluntary action, avoid or seek to avoid the observance or performance of any
of the terms to be observed or performed hereunder by the Company, but will at
all times in good faith assist in the carrying

 

7

 

out of all the provisions of this Section 3 and in the taking of all
such action as may be necessary or appropriate in order to protect the rights
of the Holder against impairment.

 

4.             Transfers.

 

(a)           Unregistered Security.  The Holder acknowledges that
this Warrant and the Warrant Shares have not been registered under the
Securities Act of 1933, as amended (the “Act”), and agrees not to sell,
pledge, distribute, offer for sale, transfer or otherwise dispose of this
Warrant or any Warrant Shares (i) in the absence of (x) an effective registration
statement for the securities under the Act, (y) a “no action” letter of the
Securities and Exchange Commission and an exemption from applicable state and
foreign securities laws with respect to such sale or offer, or (z) an exemption
under the Act and applicable state and foreign securities laws or (ii) unless
such sale is made pursuant to Rule 144 under the Act. Each certificate or other
instrument for Common Shares issued upon the exercise of this Warrant shall
bear a legend substantially to the foregoing effect unless and until the
Warrant Shares have been registered.

 

(b)           Transferability of Warrant.  Subject to the provisions of
this Warrant described herein, this Warrant and all rights hereunder may be
transferred in whole or in part without the prior written consent of the
Company.

 

(c)           Tranferability of Warrant
Shares.  The Holder shall not sell, pledge, distribute, offer for sale,
transfer or otherwise dispose of any Warrant Share within 33 days of its
issuance by the Company to the Holder.

 

(d)           Warrant Register.  The Company shall maintain at
its principal offices (or such other office or agency of the Company as it may
designate), a register for this Warrant, in which the Company shall record the
name and address of the person in whose name this Warrant has been issued, as
well as the name and address of each transferee.  The Company may treat the person in whose name any Warrant is
registered on the register as the owner and holder thereof for all purposes,
notwithstanding any notice to the contrary, but in all events recognizing any
transfers made in accordance with the terms of this Warrant.

 

(e)           Exchange of Warrant Upon a
Transfer.  On surrender of this Warrant for exchange, properly endorsed on
the Assignment Form attached hereto as Exhibit B, and subject to the
provisions of this Warrant, the Company at its expense shall promptly issue to
or on the order of the Holder a new warrant or warrants of like tenor, in the
name of the Holder or as the Holder (on payment by the Holder of any applicable
transfer taxes) may direct, for the number of shares issuable upon exercise
hereof.

 

5.             Notices of Certain
Transactions.   If (a) the Company takes any action or enters into any
transaction contemplated by Section 3(a)-(f) or (b) there is a voluntary or

 

8

 

involuntary dissolution,
liquidation or winding-up of the Company, then, and in each such case, the
Company will mail or cause to be mailed to the Holder a notice specifying, as
the case may be, (i) the date on which a record is to be taken for the purpose
of such dividend, distribution or right, and stating the amount and character
of such dividend, distribution or right, or (ii) the effective date on which
such Organic Change, reclassification of or change to securities, dissolution,
liquidation or winding-up is to take place, and the time, if any is to be
fixed, as of which the holders of record of its Common Shares are to be
determined.  Such notice shall be sent
at least fifteen (15) business days prior to the record date or effective date
for the event specified in such notice.

 

6.             Replacement of Warrants.  Upon receipt of evidence
reasonably satisfactory to the Company of the loss, theft, destruction or
mutilation of this Warrant and (in the case of loss, theft or destruction) upon
delivery of an indemnity agreement in an amount reasonably satisfactory to the
Company, or (in the case of mutilation) upon surrender and cancellation of this
Warrant, the Company will issue, in lieu thereof, a new warrant of like tenor.

 

7.             Notices.  All notices, demands,
requests, consents, approvals or other communications required or permitted to
be given hereunder or which are given with respect to this Warrant shall be in
writing and shall be delivered (charges prepaid, receipt confirmed or return
receipt requested (if available)) by hand, by nationally recognized air courier
service, by certified mail or facsimile, addressed as set forth below or to
such other address as such party shall have specified most recently by written
notice.  Notice shall be deemed given
and effective (i) if delivered by hand or by nationally recognized courier
service, when delivered at the address specified in this Section 7 (or in
accordance with the latest unrevoked written direction from such party), (ii)
if by certified mail, upon mailing or (iii) if given by facsimile when such
facsimile is transmitted to the fax number specified in this Section 7 (or in
accordance with the latest unrevoked written direction from such party), provided
the appropriate confirmation is received.

 

To PLC:

 

PLC Systems
Inc.

10 Forge Park

Franklin, MA 02038

Attention:  Chief Executive Officer

Fax:  (508) 541-7990

 

9

 

with a copy
(which shall not constitute notice) to:

 

Hale and Dorr
LLP

60 State
Street

Boston,
MA  02109

Attention:  Steven D. Singer, Esq.

Fax: (617)
526-5000

 

To Purchaser:

 

Edwards
Lifesciences Corporation

One Edwards
Way

Irvine,
California 92614

Attention:  Associate General Counsel

Fax: (949)
250-6850

 

with a copy
(which shall not constitute notice) to:

 

Skadden, Arps, Slate, Meagher & Flom LLP

300 South
Grand Avenue, Suite 3400

Los Angeles,
California  90071-3144

Attention:
Joseph J. Giunta, Esq.

Fax:   (213) 687-5600

 

8.             Amendments and Modifications;
Waivers and Extensions.

 

(a)           No amendment, modification or termination of this
Warrant shall be binding upon any other party unless executed in writing by the
parties hereto intending to be bound thereby.

 

(b)           Any party to this Warrant may waive any right,
breach or default which such party has the right to waive; provided that such waiver
will not be effective against the waiving party unless it is in writing, is
signed by such party, and specifically refers to this Warrant.  Waivers may be made in advance or after the
right waived has arisen or the breach or default waived has occurred.  Any waiver may be conditional.  No waiver of any breach of any agreement or
provision herein contained shall be deemed a waiver of any preceding or
succeeding breach thereof nor of any other agreement or provision herein
contained.  No failure or delay in
exercising any right, power or privilege hereunder shall be deemed a waiver or
extension of the time for performance of any other obligations or acts nor
shall any single or partial exercise thereof preclude any other or further
exercise thereof or the exercise of any other right, power or privilege.

 

10

 

9.             Interpretation.   When a reference is made in this Warrant to a
Section or Exhibit, such reference shall be to a Section or Exhibit of this
Warrant unless otherwise indicated.  The
titles and headings contained in this Warrant are for reference purposes only
and shall not affect in any way the meaning or interpretation of this
Warrant.  When the words “includes” or
“including” are used in this Warrant, they shall be deemed to be followed by
the words “without limitation.”

 

10.          Governing Law; Jurisdiction
and Consent to Service.  This Warrant shall be governed by, interpreted
under, and construed in accordance with the internal laws of the State of New
York, including, without limitation, Sections 5-1401, 5-1402 of the New York
General Obligations Law and New York Civil Practice Laws and Rules 327(b).

 

In accordance with
the laws of the State of New York, and without limiting the jurisdiction or
venue of any other court, the Holder and the Company (a) agree that any suit,
action or proceeding arising out of or relating to this Warrant shall be
brought solely in the state or federal courts of New York; (b) consent to the
exclusive jurisdiction of each such court in any suit, action or proceeding
relating to or arising out of this Warrant; (c) waive any objection which any
of them may have to the laying of venue in any such suit, action or proceeding
in any such court; and (d) agree that service of any court paper in any such
suit, action or proceeding may be made in any manner as may be provided under
the applicable laws or court rules governing service of process in such court.

 

11

 

	
   

  	
  PLC SYSTEMS INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/
  James G. Thomasch

  	
   

  
	
   

  	
   

  	
  Name:

  	
  James G.
  Thomasch

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice
  President and

  Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WARRANT TO
  PURCHASE COMMON SHARES

  
							

 

 

EXHIBIT A

 

NOTICE OF EXERCISE

 

To:          PLC
Systems Inc.

 

The
undersigned hereby irrevocably, subject to the terms and conditions contained
in the attached Warrant, elects to purchase
                  
Common Shares of PLC Systems Inc., pursuant to the provisions of Section 1 of
the attached Warrant, and tenders herewith payment of the Aggregate Purchase
Price for such shares in full, in cash.

 

In exercising
this Warrant, the undersigned hereby confirms and acknowledges that the Common
Shares are being acquired solely for the account of the undersigned and the
undersigned will not offer, sell or otherwise dispose of any of the Common
Shares in contravention of Section 4 of the Warrant.

 

Please issue a
certificate or certificates representing said Common Shares in the name of the
undersigned or in such other name as is specified below.

 

	
   

  	
   

  	
   

  
	
   

  	
  (Name)

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (Name)

  

 

Please issue a
new warrant for the unexercised portion of the attached Warrant in the name of
the undersigned:

 

 

	
   

  	
   

  	
   

  
	
   

  	
  (Name)

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated: 

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Signature

  
					

 

A-1

 

EXHIBIT B

 

ASSIGNMENT FORM

 

FOR VALUE
RECEIVED, the undersigned registered owner of this Warrant hereby sells,
assigns and transfer unto the Assignee named below the attached Warrant,
together with all of the rights of the undersigned under the Warrant, with
respect to the number of Common Shares set forth below:

 

	
  Name of Assignee

  	
   

  	
  Address

  	
   

  	
  No. of Shares

  

 

 

and does hereby irrevocably
constitute and appoint
                                   
Attorney to make such transfer on the books of PLC Systems Inc., maintained for
the purpose, with full power of substitution in the premises.

 

The
undersigned also represents that, by assignment hereof, the Assignee
acknowledges that this Warrant and the securities to be issued upon exercise
hereof are being acquired for investment and that the Assignee will not offer,
sell or otherwise dispose of this Warrant or any securities to be issued upon
exercise hereof in contravention of Section 4 of the Warrant.  Further, the Assignee has acknowledged that
upon exercise of this Warrant, the Assignee shall, if requested by the Company,
confirm in writing, in a form satisfactory to the Company, that the securities
so purchased are being acquired for investment and not with a view toward
distribution or resale.

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Signature of
  Holder

  
	
   

  	
   

  
	
   

  	
  Note:  The above signature should 

  
	
   

  	
  correspond
  exactly with the name

  
	
   

  	
  on the face
  of the attached Warrant.

  

 

B-1

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