Document:

Form of Debt Securities Warrant Agreement and Warrant Certificate

 Exhibit 4.16 
  
 VICURON PHARMACEUTICALS INC. 
  

and 
  
 as Warrant Agent 
  
 FORM OF DEBT SECURITIES 
 WARRANT AGREEMENT 
  
 Dated as of 
  
 [                    ] 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

			
	ARTICLE 1	  	 ISSUANCE OF WARRANTS AND EXECUTION AND DELIVERY OF WARRANT CERTIFICATES
	  	1
			
	1.1	  	Issuance of Warrants	  	1
			
	1.2	  	Execution and Delivery of Warrant Certificates	  	2
			
	1.3	  	Issuance of Warrant Certificates	  	2
			
	ARTICLE 2	  	 WARRANT PRICE, DURATION AND EXERCISE OF WARRANTS
	  	3
			
	2.1	  	Warrant Price	  	3
			
	2.2	  	Duration of Warrants	  	3
			
	2.3	  	Exercise of Warrants	  	3
			
	ARTICLE 3	  	 OTHER PROVISIONS RELATING TO RIGHTS OF HOLDERS OF WARRANT CERTIFICATES
	  	4
			
	3.1	  	No Rights as Holders of Warrant Debt Securities Conferred by Warrants or Warrant Certificates	  	4
			
	3.2	  	Lost, Stolen, Mutilated or Destroyed Warrant Certificates	  	5
			
	3.3	  	Holder of Warrant Certificate May Enforce Rights	  	5
			
	3.4	  	Merger, Sale, Conveyance or Lease	  	5
			
	3.5	  	Notice to Warrantholders	  	6
			
	ARTICLE 4	  	 EXCHANGE AND TRANSFER OF WARRANT CERTIFICATES
	  	6
			
	4.1	  	Exchange and Transfer of Warrant Certificates	  	6
			
	4.2	  	Treatment of Holders of Warrant Certificates	  	7
			
	4.3	  	Cancellation of Warrant Certificates	  	7
			
	ARTICLE 5	  	 CONCERNING THE WARRANT AGENT
	  	7
			
	5.1	  	Warrant Agent	  	7
			
	5.2	  	Conditions of Warrant Agent’s Obligations	  	8
			
	5.3	  	Resignation, Removal and Appointment of Successors	  	9
			
	ARTICLE 6	  	 MISCELLANEOUS
	  	10
			
	6.1	  	Amendment	  	10
			
	6.2	  	Notices and Demands to the Company and Warrant Agent	  	11
			
	6.3	  	Addresses	  	11
			
	6.4	  	Governing Law	  	11

  

 -i- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page

			
	 6.5
	  	 Delivery of Prospectus
	  	11
			
	 6.6
	  	 Obtaining of Governmental Approvals
	  	11
			
	 6.7
	  	 Persons Having Rights Under Warrant Agreement
	  	11
			
	 6.8
	  	 Headings
	  	11
			
	 6.9
	  	 Counterparts
	  	11
			
	 6.10
	  	 Inspection of Agreement
	  	12

  

 -ii- 

 VICURON PHARMACEUTICALS INC.  
 Form of Debt Securities Warrant Agreement 
  
 DEBT SECURITIES WARRANT AGREEMENT, dated as of                      between Vicuron Pharmaceuticals
Inc., a Delaware corporation (the “Company”) and                     , a [corporation] [national banking association]
organized and existing under the laws of                     and having a corporate trust office in
            , as warrant agent (the “Warrant Agent”). 
  
 WHEREAS, the Company has entered into an indenture dated as of [
                    (the “Senior Indenture”), with
                    , as trustee (such trustee, and any successors to such trustee, herein called the “Senior
Trustee”), providing for the issuance from time to time of its unsubordinated debt securities, to be issued in one or more series as provided in the Senior Indenture (the “Debt Securities”);] [
                    (the “Subordinated Indenture”), with
                    , as trustee (such trustee, and any successors to such trustee, herein called the “Subordinated
Trustee”), providing for the issuance from time to time of its subordinated debt securities, to be issued in one or more series as provided in the Subordinated Indenture (the “Debt Securities”);] 
  
 WHEREAS, the Company proposes to sell [If Warrants are sold with other
securities—title of such other Securities being offered (the “Other Securities”) with] warrant certificates evidencing one or more warrants (the “Warrants” or, individually, a
“Warrant”) representing the right to purchase [title of Debt Securities purchasable through exercise of Warrants] (the “Warrant Debt Securities”), such warrant certificates and other warrant
certificates issued pursuant to this Agreement being herein called the “Warrant Certificates”; and 
  
 WHEREAS, the Company desires the Warrant Agent to act on behalf of the Company, and the Warrant Agent is willing so to act, in connection with the
issuance, registration, transfer, exchange, exercise and replacement of the Warrant Certificates, and in this Agreement wishes to set forth, among other things, the form and provisions of the Warrant Certificates and the terms and conditions on
which they may be issued, registered, transferred, exchanged, exercised and replaced; 
  
 NOW, THEREFORE, in consideration of the premises and of the mutual agreements herein contained, the parties hereto agree as follows: 
  
 ARTICLE 1 
  
 ISSUANCE OF WARRANTS AND EXECUTION AND 
 DELIVERY OF WARRANT CERTIFICATES 
  
 1.1
Issuance of Warrants. [If Warrants alone—Upon issuance, each Warrant Certificate shall evidence one or more Warrants.] [If Other Securities and Warrants—Warrant Certificates shall be [initially] issued in connection with the issuance
of the Other Securities [but shall be separately transferable on and after                     (the “Detachable
Date”)] [and shall not be separately transferable] and each Warrant Certificate shall evidence one or more Warrants.] Each Warrant evidenced thereby shall represent the right, subject to the provisions contained herein and therein, to
purchase one Warrant Debt Security. [If Other Securities and 
  

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 Warrants—Warrant Certificates shall be initially issued in units with the Other Securities and each Warrant
Certificate included in such a unit shall evidence                      Warrants for each [$
                     principal amount] [              shares] of Other
Securities included in such unit.]. 
  
 1.2 Execution and
Delivery of Warrant Certificates. Each Warrant Certificate, whenever issued, shall be in registered form substantially in the form set forth in Exhibit A hereto, shall be dated the date of its countersignature by the Warrant Agent and may have
such letters, numbers, or other marks of identification or designation and such legends or endorsements printed, lithographed or engraved thereon as the officers of the Company executing the same may approve (execution thereof to be conclusive
evidence of such approval) and as are not inconsistent with the provisions of this Agreement, or as may be required to comply with any law or with any rule or regulation made pursuant thereto or with any rule or regulation of any securities exchange
on which the Warrants may be listed, or to conform to usage. The Warrant Certificates shall be signed on behalf of the Company by any of its present or future chief executive officers, presidents, senior vice presidents, vice presidents, chief
financial officers, chief legal officers, treasurers, assistant treasurers, controllers, assistant controllers, secretaries or assistant secretaries under its corporate seal reproduced thereon. Such signatures may be manual or facsimile signatures
of such authorized officers and may be imprinted or otherwise reproduced on the Warrant Certificates. The seal of the Company may be in the form of a facsimile thereof and may be impressed, affixed, imprinted or otherwise reproduced on the Warrant
Certificates. 
  
 No Warrant Certificate shall be valid for any
purpose, and no Warrant evidenced thereby shall be exercisable, until such Warrant Certificate has been countersigned by the manual signature of the Warrant Agent. Such signature by the Warrant Agent upon any Warrant Certificate executed by the
Company shall be conclusive evidence that the Warrant Certificate so countersigned has been duly issued hereunder. 
  
 In case any officer of the Company who shall have signed any of the Warrant Certificates either manually or by facsimile signature shall cease to be such
officer before the Warrant Certificates so signed shall have been countersigned and delivered by the Warrant Agent, such Warrant Certificates may be countersigned and delivered notwithstanding that the person who signed Warrant Certificates ceased
to be such officer of the Company; and any Warrant Certificate may be signed on behalf of the Company by such persons as, at the actual date of the execution of such Warrant Certificate, shall be the proper officers of the Company, although at the
date of the execution of this Agreement any such person was not such officer. 
  
 The term “holder” or “holder of a Warrant Certificate” as used herein shall mean any person in whose name at the time any Warrant Certificate shall be registered upon the books to be maintained by
the Warrant Agent for that purpose [If Other Securities and Warrants are not immediately detachable—or upon the registration of the Other Securities prior to the Detachable Date. Prior to the Detachable Date, the Company will, or will cause the
registrar of the Other Securities to, make available at all times to the Warrant Agent such information as to holders of the Other Securities as may be necessary to keep the Warrant Agent’s records up to date]. 
  

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 1.3 Issuance of Warrant Certificates. Warrant Certificates evidencing the right to purchase
Warrant Debt Securities may be executed by the Company and delivered to the Warrant Agent upon the execution of this Warrant Agreement or from time to time thereafter. The Warrant Agent shall, upon receipt of Warrant Certificates duly executed on
behalf of the Company, countersign such Warrant Certificates and shall deliver such Warrant Certificates to or upon the order of the Company. 
  
 ARTICLE 2 
  
 WARRANT PRICE, DURATION AND 
 EXERCISE OF WARRANTS 
  
 2.1 Warrant Price. During the period specified in Section 2.2, each
Warrant shall, subject to the terms of this Warrant Agreement and the applicable Warrant Certificate, entitle the holder thereof, to purchase the principal amount of Warrant Debt Securities specified in the applicable Warrant Certificate at an
exercise price of             % of the principal amount thereof [plus accrued amortization, if any, of the original issue discount of the Warrant Debt Securities] [plus accrued
interest, if any, from the most recent date from which interest shall have been paid on the Warrant Debt Securities or, if no interest shall have been paid on the Warrant Debt Securities, from the date of their initial issuance.] [The original issue
discount ($              for each $1,000 principal amount of Warrant Debt Securities) will be amortized at a
            % annual rate, computed on a[n] [semi-] annual basis [using a 360-day year consisting of twelve 30-day months].] Such purchase price for the Warrant Debt Securities is
referred to in this Agreement as the “Warrant Price.” 
  
 2.2 Duration of Warrants. Each Warrant may be exercised in whole or in part at any time, as specified herein, on or after [the date thereof]
[                    ] and at or before [            ] p.m., [City] time,
on                      or such later date as the Company may designate by notice to the Warrant Agent and the holders of Warrant Certificates
mailed to their addresses as set forth in the record books of the Warrant Agent (the “Expiration Date”). Each Warrant not exercised at or before [            ] p.m.,
[City] time, on the Expiration Date shall become void, and all rights of the holder of the Warrant Certificate evidencing such Warrant under this Agreement shall cease. 
  
 2.3 Exercise of Warrants. 
  

(a) During the period specified in Section 2.2, the Warrants may be exercised to purchase a whole number of Warrant Debt Securities in registered form
by providing certain information as set forth on the reverse side of the Warrant Certificate and by paying in full, in lawful money of the United States of America, [in cash or by certified check or official bank check in New York Clearing
House funds] [by bank wire transfer in immediately available funds] the Warrant Price for each Warrant Debt Security with respect to which a Warrant is being exercised to the Warrant Agent at its corporate trust office, provided that
such exercise is subject to receipt within five business days of such payment by the Warrant Agent of the Warrant Certificate with the form of election to purchase Warrant Debt Securities set forth on the reverse side of the Warrant Certificate
properly completed and duly executed. The date on which payment in full of the Warrant Price is received by the Warrant Agent shall, subject to 
  

 3 

 receipt of the Warrant Certificate as aforesaid, be deemed to be the date on which the Warrant is exercised; provided,
however, that if, at the date of receipt of such Warrant Certificates and payment in full of the Warrant Price, the transfer books for the Warrant Debt Securities purchasable upon the exercise of such Warrants shall be closed, no such receipt of
such Warrant Certificates and no such payment of such Warrant Price shall be effective to constitute the person so designated to be named as the holder of record of such Warrant Debt Securities on such date, but shall be effective to constitute such
person as the holder of record of such Warrant Debt Securities for all purposes at the opening of business on the next succeeding day on which the transfer books for the Warrant Debt Securities purchasable upon the exercise of such Warrants shall be
opened, and the certificates for the Warrant Debt Securities in respect of which such Warrants are then exercised shall be issuable as of the date on such next succeeding day on which the transfer books shall next be opened, and until such date the
Company shall be under no duty to deliver any certificate for such Warrant Debt Securities. The Warrant Agent shall deposit all funds received by it in payment of the Warrant Price in an account of the Company maintained with it and shall advise the
Company by telephone at the end of each day on which a payment for the exercise of Warrants is received of the amount so deposited to its account. The Warrant Agent shall promptly confirm such telephone advice to the Company in writing. 

 
 (b) The Warrant Agent shall, from time to time, as promptly as
practicable, advise the Company of (i) the number of Warrant Debt Securities with respect to which Warrants were exercised, (ii) the instructions of each holder of the Warrant Certificates evidencing such Warrants with respect to delivery of the
Warrant Debt Securities to which such holder is entitled upon such exercise, (iii) delivery of Warrant Certificates evidencing the balance, if any, of the Warrants for the remaining Warrant Debt Securities after such exercise, and (iv) such other
information as the Company or the [Senior] [Subordinated] Trustee shall reasonably require. 
  
 (c) As soon as practicable after the exercise of any Warrant, the Company shall issue, pursuant to the Indenture, in authorized denominations, to or upon the order of the holder of the Warrant Certificate evidencing
such Warrant, the Warrant Debt Securities to which such holder is entitled, in fully registered form, registered in such name or names as may be directed by such holder. If fewer than all of the Warrants evidenced by such Warrant Certificate were
exercised, the Company shall execute, and an authorized officer of the Warrant Agent shall manually countersign and deliver, a new Warrant Certificate evidencing Warrants for the number of Warrant Debt Securities remaining unexercised. 

 
 (d) The Company shall not be required to pay any stamp or other tax or
other governmental charge required to be paid in connection with any transfer involved in the issue of the Warrant Debt Securities, and in the event that any such transfer is involved, the Company shall not be required to issue or deliver any
Warrant Debt Securities until such tax or other charge shall have been paid or it has been established to the Company’s satisfaction that no such tax or other charge is due. 
  

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 ARTICLE 3 
  

OTHER PROVISIONS RELATING TO RIGHTS OF 
 HOLDERS OF WARRANT CERTIFICATES 
  
 3.1 No
Rights as Holders of Warrant Debt Securities Conferred by Warrants or Warrant Certificates. No Warrant Certificate or Warrant evidenced thereby shall entitle the holder thereof to any of the rights of a holder of Warrant Debt Securities,
including, without limitation, the right to receive the payment of principal of (or premium, if any) or interest, if any, on the Warrant Debt Securities or to enforce any of the covenants in the Indenture. 
  
 3.2 Lost, Stolen, Mutilated or Destroyed Warrant Certificates. Upon
receipt by the Warrant Agent of evidence reasonably satisfactory to it and the Company of the ownership of and the loss, theft, destruction or mutilation of any Warrant Certificate and/or indemnity reasonably satisfactory to the Warrant Agent and
the Company and, in the case of mutilation, upon surrender of the mutilated Warrant Certificate to the Warrant Agent for cancellation, then, in the absence of notice to the Company or the Warrant Agent that such Warrant Certificate has been acquired
by a bona fide purchaser, the Company shall execute, and an authorized officer of the Warrant Agent shall manually countersign and deliver, in exchange for or in lieu of the lost, stolen, destroyed or mutilated Warrant Certificate, a new Warrant
Certificate of the same tenor and evidencing Warrants for a like principal amount of Warrant Debt Securities. Upon the issuance of any new Warrant Certificate under this Section 3.2, the Company may require the payment of a sum sufficient to cover
any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Warrant Agent) in connection therewith. Every substitute Warrant Certificate executed and delivered pursuant
to this Section 3.2 in lieu of any lost, stolen or destroyed Warrant Certificate shall represent an additional contractual obligation of the Company, whether or not the lost, stolen or destroyed Warrant Certificate shall be at any time enforceable
by anyone, and shall be entitled to the benefits of this Agreement equally and proportionately with any and all other Warrant Certificates duly executed and delivered hereunder. The provisions of this Section 3.2 are exclusive and shall preclude (to
the extent lawful) all other rights and remedies with respect to the replacement of mutilated, lost, stolen or destroyed Warrant Certificates. 
  
 3.3 Holder of Warrant Certificate May Enforce Rights. Notwithstanding any of the provisions of this Agreement, any holder of any Warrant
Certificate, without the consent of the Warrant Agent, the [Senior] [Subordinated] Trustee, the holder of any Warrant Debt Securities or the holder of any other Warrant Certificate, may, in such holder’s own behalf and for such holder’s
own benefit, enforce, and may institute and maintain any suit, action or proceeding against the Company suitable to enforce, or otherwise in respect of, such holder’s right to exercise the Warrants evidenced by such holder’s Warrant
Certificate in the manner provided in such holder’s Warrant Certificates and in this Agreement. 
  
 3.4 Merger, Sale, Conveyance or Lease. In case of (a) any share exchange, merger or similar transaction of the Company with or into another person
or entity (other than a share exchange, merger or similar transaction in which the Company is the acquiring or surviving corporation) or (b) the sale, exchange, lease, transfer or other disposition of all or substantially all of the properties and
assets of the Company as an entirety (in any such case, a 
  

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 “Reorganization Event”), then, as a condition of such Reorganization Event, lawful provisions
shall be made, and duly executed documents evidencing the same from the Company’s successor shall be delivered to the holders of the Warrants, so that such successor shall succeed to and be substituted for the Company, and assume all the
Company’s obligations under, this Agreement and the Warrants. The Company shall thereupon be relieved of any further obligation hereunder or under the Warrants, and the Company as the predecessor corporation may thereupon or at any time
thereafter be dissolved, wound up or liquidated. Such successor or assuming entity thereupon may cause to be signed, and may issue either in its own name or in the name of the Company, any or all of the Warrants issuable hereunder which heretofore
shall not have been signed by the Company, and may execute and deliver securities in its own name, in fulfillment of its obligations to deliver Warrant Debt Securities upon exercise of the Warrants. All the Warrants so issued shall in all respects
have the same legal rank and benefit under this Agreement as the Warrants theretofore or thereafter issued in accordance with the terms of this Agreement as though all of such Warrants had been issued at the date of the execution hereof. In any case
of any such Reorganization Event, such changes in phraseology and form (but not in substance) may be made in the Warrants thereafter to be issued as may be appropriate. 
  
 The Warrant Agent may receive a written opinion of legal counsel as conclusive evidence that any such Reorganization Event
complies with the provisions of this Section 3.4. 
  
 3.5
Notice to Warrantholders. In case the Company shall (a) effect any Reorganization Event or (b) make any distribution on or in respect of the [title of Warrant Debt Securities] in connection with the dissolution, liquidation or winding up of the
Company, then the Company shall mail to each holder of Warrants at such holder’s address as it shall appear on the books of the Warrant Agent, at least ten days prior to the applicable date hereinafter specified, a notice stating the date on
which such Reorganization Event, dissolution, liquidation or winding up is expected to become effective, and the date as of which it is expected that holders of [title of Warrant Debt Securities] of record shall be entitled to exchange their shares
of [title of Warrant Debt Securities] for securities or other property deliverable upon such Reorganization Event, dissolution, liquidation or winding up. No failure to mail such notice nor any defect therein or in the mailing thereof shall affect
any such transaction. 
  
 ARTICLE 4 
  
 EXCHANGE AND TRANSFER OF WARRANT CERTIFICATES 
  
 4.1 Exchange and Transfer of Warrant Certificates. [If Other
Securities with Warrants which are immediately detachable—Upon] [If Other Securities with Warrants which are not immediately detachable—Prior to the Detachable Date, a Warrant Certificate may be exchanged or transferred only together with
the Other Security to which the Warrant Certificate was initially attached, and only for the purpose of effecting or in conjunction with an exchange or transfer of such Other Security. Prior to any Detachable Date, each transfer of the Other
Security shall operate also to transfer the related Warrant Certificates. After the Detachable Date, upon] surrender at the corporate trust office of the Warrant Agent, Warrant Certificates evidencing Warrants may be exchanged for Warrant
Certificates in other denominations evidencing such Warrants or the transfer thereof may be registered in whole or in part; provided that such other Warrant Certificates evidence Warrants for the same aggregate principal amount 
  

 6 

 of Warrant Debt Securities as the Warrant Certificates so surrendered. The Warrant Agent shall keep, at its corporate
trust office, books in which, subject to such reasonable regulations as it may prescribe, it shall register Warrant Certificates and exchanges and transfers of outstanding Warrant Certificates, upon surrender of the Warrant Certificates to the
Warrant Agent at its corporate trust office for exchange or registration of transfer, properly endorsed or accompanied by appropriate instruments of registration of transfer and written instructions for transfer, all in form satisfactory to the
Company and the Warrant Agent. No service charge shall be made for any exchange or registration of transfer of Warrant Certificates, but the Company may require payment of a sum sufficient to cover any stamp or other tax or other governmental charge
that may be imposed in connection with any such exchange or registration of transfer. Whenever any Warrant Certificates are so surrendered for exchange or registration of transfer, an authorized officer of the Warrant Agent shall manually
countersign and deliver to the person or persons entitled thereto a Warrant Certificate or Warrant Certificates duly authorized and executed by the Company, as so requested. The Warrant Agent shall not be required to effect any exchange or
registration of transfer which will result in the issuance of a Warrant Certificate evidencing a Warrant for a fraction of a Warrant Debt Security or a number of Warrants for a whole number of Warrant Debt Securities and a fraction of a Warrant Debt
Security. All Warrant Certificates issued upon any exchange or registration of transfer of Warrant Certificates shall be the valid obligations of the Company, evidencing the same obligations and entitled to the same benefits under this Agreement as
the Warrant Certificate surrendered for such exchange or registration of transfer. 
  
 4.2 Treatment of Holders of Warrant Certificates. [If Other Securities and Warrants are not immediately detachable—Prior to the Detachable Date, the Company, the Warrant Agent and all other persons may
treat the owner of the Other Security as the owner of the Warrant Certificates initially attached thereto for any purpose and as the person entitled to exercise the rights represented by the Warrants evidenced by such Warrant Certificates, any
notice to the contrary notwithstanding. After the Detachable Date and prior to due presentment of a Warrant Certificate for registration of transfer, the] [The] Company, the Warrant Agent and all other persons may treat the registered holder of a
Warrant Certificate as the absolute owner thereof for any purpose and as the person entitled to exercise the rights represented by the Warrants evidenced thereby, any notice to the contrary notwithstanding. 
  
 4.3 Cancellation of Warrant Certificates. Any Warrant Certificate
surrendered for exchange, registration of transfer or exercise of the Warrants evidenced thereby shall, if surrendered to the Company, be delivered to the Warrant Agent and all Warrant Certificates surrendered or so delivered to the Warrant Agent
shall be promptly canceled by the Warrant Agent and shall not be reissued and, except as expressly permitted by this Agreement, no Warrant Certificate shall be issued hereunder in exchange therefor or in lieu thereof. The Warrant Agent shall deliver
to the Company from time to time or otherwise dispose of canceled Warrant Certificates in a manner satisfactory to the Company. 
  

 7 

 ARTICLE 5 
  

CONCERNING THE WARRANT AGENT 
  
 5.1 Warrant Agent. The Company hereby appoints
                    as Warrant Agent of the Company in respect of the Warrants and the Warrant Certificates upon the terms and subject to the
conditions herein set forth, and                      hereby accepts such appointment. The Warrant Agent shall have the powers and authority
granted to and conferred upon it in the Warrant Certificates and hereby and such further power and authority to act on behalf of the Company as the Company may hereafter grant to or confer upon it. All of the terms and provisions with respect to
such power and authority contained in the Warrant Certificates are subject to and governed by the terms and provisions hereof. 
  
 5.2 Conditions of Warrant Agent’s Obligations. The Warrant Agent accepts its obligations herein set forth upon the terms and conditions
hereof, including the following to all of which the Company agrees and to all of which the rights hereunder of the holders from time to time of the Warrant Certificates shall be subject: 
  
 (a) Compensation and Indemnification. The Company agrees promptly to pay the Warrant Agent the compensation to be
agreed upon with the Company for all services rendered by the Warrant Agent and to reimburse the Warrant Agent for reasonable out-of-pocket expenses (including reasonable counsel fees) incurred without negligence, bad faith or willful misconduct by
the Warrant Agent in connection with the services rendered hereunder by the Warrant Agent. The Company also agrees to indemnify the Warrant Agent for, and to hold it harmless against, any loss, liability or expense incurred without negligence, bad
faith or willful misconduct on the part of the Warrant Agent, arising out of or in connection with its acting as Warrant Agent hereunder, including the reasonable costs and expenses of defending against any claim of such liability. 
  
 (b) Agent for the Company. In acting under this Warrant Agreement and
in connection with the Warrant Certificates, the Warrant Agent is acting solely as agent of the Company and does not assume any obligations or relationship of agency or trust for or with any of the holders of Warrant Certificates or beneficial
owners of Warrants. 
  
 (c) Counsel. The Warrant Agent may
consult with counsel satisfactory to it, which may include counsel for the Company, and the written advice of such counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in
good faith and in accordance with the advice of such counsel. 
  
 (d) Documents. The Warrant Agent shall be protected and shall incur no liability for or in respect of any action taken or omitted by it in reliance upon any Warrant Certificate, notice, direction, consent, certificate, affidavit,
statement or other paper or document reasonably believed by it to be genuine and to have been presented or signed by the proper parties. 
  
 (e) Certain Transactions. The Warrant Agent, and its officers, directors and employees, may become the owner of, or acquire any interest in,
Warrants, with the same rights that it or they would have if it were not the Warrant Agent hereunder, and, to the extent 
  

 8 

 permitted by applicable law, it or they may engage or be interested in any financial or other transaction with the
Company and may act on, or as depositary, trustee or agent for, any committee or body of holders of Warrant Securities or other obligations of the Company as freely as if it were not the Warrant Agent hereunder. Nothing in this Warrant Agreement
shall be deemed to prevent the Warrant Agent from acting as [Senior] [Subordinated] Trustee under the [Senior] [Subordinated] Indenture. 
  
 (f) No Liability for Interest. Unless otherwise agreed with the Company, the Warrant Agent shall have no liability for interest on any monies at
any time received by it pursuant to any of the provisions of this Agreement or of the Warrant Certificates. 
  
 (g) No Liability for Invalidity. The Warrant Agent shall have no liability with respect to any invalidity of this Agreement or any of the Warrant
Certificates (except as to the Warrant Agent’s countersignature thereon). 
  
 (h) No Responsibility for Representations. The Warrant Agent shall not be responsible for any of the recitals or representations herein or in the Warrant Certificates (except as to the Warrant Agent’s
countersignature thereon), all of which are made solely by the Company. 
  
 (i) No Implied Obligations. The Warrant Agent shall be obligated to perform only such duties as are herein and in the Warrant Certificates specifically set forth and no implied duties or obligations shall be read into this Agreement
or the Warrant Certificates against the Warrant Agent. The Warrant Agent shall not be under any obligation to take any action hereunder which may tend to involve it in any expense or liability, the payment of which within a reasonable time is not,
in its reasonable opinion, assured to it. The Warrant Agent shall not be accountable or under any duty or responsibility for the use by the Company of any of the Warrant Certificates authenticated by the Warrant Agent and delivered by it to the
Company pursuant to this Agreement or for the application by the Company of the proceeds of the Warrant Certificates. The Warrant Agent shall have no duty or responsibility in case of any default by the Company in the performance of its covenants or
agreements contained herein or in the Warrant Certificates or in the case of the receipt of any written demand from a holder of a Warrant Certificate with respect to such default, including, without limiting the generality of the foregoing, any duty
or responsibility to initiate or attempt to initiate any proceedings at law or otherwise or, except as provided in Section 6.2 hereof, to make any demand upon the Company. 
  
 5.3 Resignation, Removal and Appointment of Successors. 
  
 (a) The Company agrees, for the benefit of the holders from time to time of
the Warrant Certificates, that there shall at all times be a Warrant Agent hereunder until all the Warrants have been exercised or are no longer exercisable. 
  
 (b) The Warrant Agent may at any time resign as agent by giving written notice to the Company of such intention on its part, specifying the date on which
its desired resignation shall become effective; provided that such date shall not be less than three months after the date on which such notice is given unless the Company otherwise agrees. The Warrant Agent hereunder may be removed at any
time by the filing with it of an instrument in writing signed by or on 
  

 9 

 behalf of the Company and specifying such removal and the intended date when it shall become effective. Such resignation
or removal shall take effect upon the appointment by the Company, as hereinafter provided, of a successor Warrant Agent (which shall be a bank or trust company authorized under the laws of the jurisdiction of its organization to exercise corporate
trust powers) and the acceptance of such appointment by such successor Warrant Agent. The obligation of the Company under Section 5.2(a) shall continue to the extent set forth therein notwithstanding the resignation or removal of the Warrant Agent.

  
 (c) In case at any time the Warrant Agent shall resign, or
shall be removed, or shall become incapable of acting, or shall be adjudged a bankrupt or insolvent, or shall commence a voluntary case under the Federal bankruptcy laws, as now or hereafter constituted, or under any other applicable Federal or
state bankruptcy, insolvency or similar law or shall consent to the appointment of or taking possession by a receiver, custodian, liquidator, assignee, trustee, sequestrator (or other similar official) of the Warrant Agent or its property or
affairs, or shall make an assignment for the benefit of creditors, or shall admit in writing its inability to pay its debts generally as they become due, or shall take corporate action in furtherance of any such action, or a decree or order for
relief by a court having jurisdiction in the premises shall have been entered in respect of the Warrant Agent in an involuntary case under the Federal bankruptcy laws, as now or hereafter constituted, or any other applicable Federal or state
bankruptcy, insolvency or similar law, or a decree or order by a court having jurisdiction in the premises shall have been entered for the appointment of a receiver, custodian, liquidator, assignee, trustee, sequestrator (or similar official) of the
Warrant Agent or of its property or affairs, or any public officer shall take charge or control of the Warrant Agent or of its property or affairs for the purpose of rehabilitation, conservation, winding up or liquidation, a successor Warrant Agent,
qualified as aforesaid, shall be appointed by the Company by an instrument in writing, filed with the successor Warrant Agent. Upon the appointment as aforesaid of a successor Warrant Agent and acceptance by the successor Warrant Agent of such
appointment, the Warrant Agent shall cease to be Warrant Agent hereunder. 
  
 (d) Any successor Warrant Agent appointed hereunder shall execute, acknowledge and deliver to its predecessor and to the Company an instrument accepting such appointment hereunder, and thereupon such successor Warrant
Agent, without any further act, deed or conveyance, shall become vested with all the authority, rights, powers, trusts, immunities, duties and obligations of such predecessor with like effect as if originally named as Warrant Agent hereunder, and
such predecessor, upon payment of its charges and disbursements then unpaid, shall thereupon become obligated to transfer, deliver and pay over, and such successor Warrant Agent shall be entitled to receive, all monies, securities and other property
on deposit with or held by such predecessor, as Warrant Agent hereunder. 
  
 (e) Any corporation into which the Warrant Agent hereunder may be merged or converted or any corporation with which the Warrant Agent may be consolidated, or any corporation resulting from any merger, conversion or
consolidation to which the Warrant Agent shall be a party, or any corporation to which the Warrant Agent shall sell or otherwise transfer all or substantially all the assets and business of the Warrant Agent, provided that it shall be
qualified as aforesaid, shall be the successor Warrant Agent under this Agreement without the execution or filing of any paper or any further act on the part of any of the parties hereto. 
  

 10 

 ARTICLE 6 
  

MISCELLANEOUS 
  
 6.1 Amendment. This Agreement may be amended by the parties hereto, without the consent of the holder of any Warrant Certificate, for the purpose
of curing any ambiguity, or of curing, correcting or supplementing any defective provision contained herein, or making any other provisions with respect to matters or questions arising under this Agreement as the Company and the Warrant Agent may
deem necessary or desirable; provided that such action shall not materially adversely affect the interests of the holders of the Warrant Certificates. 
  
 6.2 Notices and Demands to the Company and Warrant Agent. If the Warrant Agent shall receive any notice or demand addressed to the Company by the
holder of a Warrant Certificate pursuant to the provisions of the Warrant Certificates, the Warrant Agent shall promptly forward such notice or demand to the Company. 
  
 6.3 Addresses. Any communication from the Company to the Warrant Agent with respect to this Agreement shall be
addressed to                     , Attention:
                                     and any
communication from the Warrant Agent to the Company with respect to this Agreement shall be addressed to Vicuron Pharmaceuticals Inc., 455 South Gulph Road, Suite 305, King of Prussia, Pennsylvania, 19406, Attention: Chief Financial Officer (or such
other address as shall be specified in writing by the Warrant Agent or by the Company). 
  
 6.4 Governing Law. This Agreement and each Warrant Certificate issued hereunder shall be governed by and construed in accordance with the laws of the State of [Delaware]. 
  
 6.5 Delivery of Prospectus. The Company shall furnish to the Warrant
Agent sufficient copies of a prospectus meeting the requirements of the Securities Act of 1933, as amended, relating to the Warrant Debt Securities deliverable upon exercise of the Warrants (the “Prospectus”), and the Warrant
Agent agrees that upon the exercise of any Warrant, the Warrant Agent will deliver to the holder of the Warrant Certificate evidencing such Warrant, prior to or concurrently with the delivery of the Warrant Debt Securities issued upon such exercise,
a Prospectus. 
  
 The Warrant Agent shall not, by reason of any
such delivery, assume any responsibility for the accuracy or adequacy of such Prospectus. 
  
 6.6 Obtaining of Governmental Approvals. The Company will from time to time take all action which may be necessary to obtain and keep effective any and all permits, consents and approvals of governmental
agencies and authorities and securities act filings under United States Federal and state laws (including without limitation a registration statement in respect of the Warrants and Warrant Debt Securities under the Securities Act of 1933, as
amended), which may be or become requisite in connection with the issuance, sale, transfer, and delivery of the Warrant Debt Securities issued upon exercise of the Warrants, the issuance, sale, transfer and delivery of the Warrants or upon the
expiration of the period during which the Warrants are exercisable. 
  

 11 

 6.7 Persons Having Rights Under Warrant Agreement. Nothing in this Agreement shall give to any
person other than the Company, the Warrant Agent and the holders of the Warrant Certificates any right, remedy or claim under or by reason of this Agreement. 
  
 6.8 Headings. The descriptive headings of the several Articles and Sections of this Agreement are inserted for convenience only and shall not
control or affect the meaning or construction of any of the provisions hereof. 
  
 6.9 Counterparts. This Agreement may be executed in any number of counterparts, each of which as so executed shall be deemed to be an original, but such counterparts shall together constitute but one and the
same instrument. 
  
 6.10 Inspection of Agreement. A copy
of this Agreement shall be available at all reasonable times at the principal corporate trust office of the Warrant Agent for inspection by the holder of any Warrant Certificate. The Warrant Agent may require such holder to submit his Warrant
Certificate for inspection by it. 
  
 IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be duly executed, all as of the day and year first above written. 
  

					
	 	 	VICURON PHARMACEUTICALS INC.
			
	 	 	 By
	 	  

			
	 	 	 Its
	 	  

	 Attest:
	 	 	 	 
	  

	 	 	 	 , as

	 	 	 	 	 Warrant Agent

			
	 	 	 By
	 	  

			
	 	 	 Its
	 	  

  
 [SIGNATURE PAGE TO DEBT
SECURITIES WARRANT AGREEMENT] 
  

 12 

 EXHIBIT A 
  
 FORM OF WARRANT CERTIFICATE 
 [Face of Warrant
Certificate] 
  

			
	[Form if Warrants are attached to Other Securities and are not immediately detachable.	  	Prior to                     , this Warrant Certificate cannot be transferred or
exchanged unless attached to a [Title of Other Security].]
		
	[Form of Legend if Warrants are not immediately exercisable.	  	Prior to                     , Warrants evidenced by this Warrant Certificate cannot
be exercised.]

  
 EXERCISABLE ONLY IF
COUNTERSIGNED BY THE WARRANT 
 AGENT AS PROVIDED HEREIN 
  
 VOID AFTER [            ] P.M., [CITY] TIME, ON
                    , 
  
 VICURON PHARMACEUTICALS INC. 
  
 WARRANT CERTIFICATE REPRESENTING 
 WARRANTS TO
PURCHASE 
 [TITLE OF WARRANT DEBT SECURITIES] 
  

  

			
	No.	  	 Warrants

  
 This certifies that
                    or registered assigns is the registered owner of the above indicated number of Warrants, each Warrant entitling such owner
[If Warrants are attached to Other Securities and are not immediately detachable—, subject to the registered owner qualifying as a “Holder” of this Warrant Certificate, as hereinafter defined)] to purchase, at any time [after
[            ] p.m., [City] time, on                      and] on or before
[            ] p.m., [City] time, on             , $
             principal amount of [Title of Warrant Debt Securities] (the “Warrant Debt Securities”), of Vicuron Pharmaceuticals Inc. (the
“Company”), issued or to be issued under the Indenture (as hereinafter defined), on the following basis: during the period from
                    , through and including             , each Warrant
shall entitle the Holder thereof, subject to the provisions of this Agreement, to purchase the principal amount of Warrant Debt Securities stated in the Warrant Certificate at the warrant price (the “Warrant Price”) of
            % of the principal amount thereof [plus accrued amortization, if any, of the original issue discount of the Warrant Debt Securities] [plus accrued interest, if any, from
the most recent date from which interest shall have been paid on the Warrant Debt Securities or, if no interest shall have been paid on the Warrant Debt Securities, from the date of their original issuance]. [The original issue discount ($
             for each $1,000 principal amount of Warrant Debt Securities) will be amortized at a             %
annual rate, computed on a[n] [semi-]annual basis [using a 360-day year consisting of twelve 30-day months]. The Holder may exercise the Warrants evidenced hereby by providing certain information set forth on the back hereof and by paying in full,
in lawful money of the United States of America, [in cash or by 
  

 A-1 

 certified check or official bank check in New York Clearing House funds] [by bank wire transfer in immediately available
funds], the Warrant Price for each Warrant Debt Security with respect to which this Warrant is exercised to the Warrant Agent (as hereinafter defined) and by surrendering this Warrant Certificate, with the purchase form on the back hereof duly
executed, at the corporate trust office of [name of Warrant Agent], or its successor as warrant agent (the “Warrant Agent”), which is, on the date hereof, at the address specified on the reverse hereof, and upon compliance
with and subject to the conditions set forth herein and in the Warrant Agreement (as hereinafter defined). 
  
 The term “Holder” as used herein shall mean [If Warrants are attached to Other Securities and are not immediately
detachable—, prior to                     ,             (the
“Detachable Date”), the registered owner of the Company’s [title of Other Securities] to which this Warrant Certificate was initially attached, and after such Detachable Date,] the person in whose name at the time this
Warrant Certificate shall be registered upon the books to be maintained by the Warrant Agent for that purpose pursuant to Section 4 of the Warrant Agreement. 
  
 The Warrants evidenced by this Warrant Certificate may be exercised to purchase Warrant Debt Securities in the principal amount of $1,000 or any integral
multiple thereof in registered form. Upon any exercise of fewer than all of the Warrants evidenced by this Warrant Certificate, there shall be issued to the Holder hereof a new Warrant Certificate evidencing Warrants for the aggregate principal
amount of Warrant Debt Securities remaining unexercised. 
  
 This
Warrant Certificate is issued under and in accordance with the Warrant Agreement dated as of                     ,
             (the “Warrant Agreement”), between the Company and the Warrant Agent and is subject to the terms and provisions contained in the Warrant
Agreement, to all of which terms and provisions the Holder of this Warrant Certificate consents by acceptance hereof. Copies of the Warrant Agreement are on file at the above-mentioned office of the Warrant Agent. 
  
 The Warrant Debt Securities to be issued and delivered upon the exercise of
Warrants evidenced by this Warrant Certificate will be issued under and in accordance with an Indenture, [dated as of                     ,
             (the “Senior Indenture”), between the Company and              , as trustee
(such trustee, and any successors to such trustee, the “Senior Trustee”)] [dated as of                     ,
            , (the “Subordinated Indenture”), between the Company and             , as
trustee (such trustee, and any successors to such trustee, the “Subordinated Trustee”)] and will be subject to the terms and provisions contained in the Warrant Debt Securities and in the Indenture. Copies of the [Senior]
[Subordinated] Indenture, including the form of the Warrant Debt Securities, are on file at the corporate trust office of the Trustee. 
  
 [If Warrants are attached to Other Securities and are not immediately detachable—Prior to the Detachable Date, this Warrant Certificate may be
exchanged or transferred only together with the [Title of Other Securities] (the “Other Securities”) to which this Warrant Certificate was initially attached, and only for the purpose of effecting or in conjunction with, an
exchange or transfer of such Other Security. Additionally, on or prior to the Detachable Date, each transfer of such Other Security on the register of the Other Securities shall operate also to transfer this Warrant Certificate. After such date,
transfer of this] [If Warrants are attached to Other Securities and are immediately detachable—Transfer of this] Warrant Certificate may be 
  

 A-2 

 registered when this Warrant Certificate is surrendered at the corporate trust office of the Warrant Agent by the
registered owner or such owner’s assigns, in the manner and subject to the limitations provided in the Warrant Agreement. 
  
 [If Other Securities with Warrants which are not immediately detachable-Except as provided in the immediately preceding paragraph, after] [If Other
Securities with Warrants which are immediately detachable or Warrants alone—After] countersignature by the Warrant Agent and prior to the expiration of this Warrant Certificate, this Warrant Certificate may be exchanged at the corporate trust
office of the Warrant Agent for Warrant Certificates representing Warrants for the same aggregate principal amount of Warrant Debt Securities. 
  
 This Warrant Certificate shall not entitle the Holder hereof to any of the rights of a holder of the Warrant Debt Securities, including, without
limitation, the right to receive payments of principal of (and premium, if any) or interest, if any, on the Warrant Debt Securities or to enforce any of the covenants of the Indenture. 
  
 Reference is hereby made to the further provisions of this Warrant Certificate set forth on the reverse hereof, which
further provisions shall for all purposes have the same effect as if set forth at this place. 
  
 This Warrant Certificate shall not be valid or obligatory for any purpose until countersigned by the Warrant Agent. 
  
 IN WITNESS WHEREOF, the Company has caused this Warrant to be executed in its name and on its behalf by the facsimile signatures of its duly
authorized officers. 
  

							
	 Dated:
	 	  

	 	VICURON PHARMACEUTICALS INC.
				
	 	 	 	 	 By
	 	  

				
	 	 	 	 	 Its
	 	  

	 Attest:
	 	 	 	 
			
	
	 	 	 	 
			
	 Countersigned:
	 	 	 	 
	  

	 	 	 	 
	 As Warrant Agent
	 	 	 	 
				
	 By:
	 	  

	 	 	 	 
	 	 	     Authorized Signature
	 	 	 	 

  

 A-3 

 [REVERSE OF WARRANT CERTIFICATE] 
  
 (Instructions for Exercise of Warrants) 
  
 To exercise any Warrants evidenced hereby for Warrant Debt Securities (as hereinafter defined), the Holder must pay, in
lawful money of the United States of America, [in cash or by certified check or official bank check in New York Clearing House funds] [by bank wire transfer in immediately available funds], the Warrant Price in full for Warrants exercised, to
[Warrant Agent] [address of Warrant Agent], Attn:                     , which payment must specify the name of the Holder and the number of
Warrants exercised by such Holder. In addition, the Holder must complete the information required below and present this Warrant Certificate in person or by mail (certified or registered mail is recommended) to the Warrant Agent at the appropriate
address set forth above. This Warrant Certificate, completed and duly executed, must be received by the Warrant Agent within five business days of the payment. 
  

(To be executed upon exercise of Warrants) 
  
 The undersigned hereby irrevocably elects to exercise
                     Warrants, represented by this Warrant Certificate, to purchase $
             principal amount of the [Title of Warrant Debt Securities] (the “Warrant Debt Securities”) of Vicuron Pharmaceuticals Inc. and represents that he
has tendered payment for such Warrant Debt Securities, in lawful money of the United States of America, [in cash or by certified check or official bank check in New York Clearing House funds] [by bank wire transfer in immediately available funds],
to the order of Vicuron Pharmaceuticals Inc., c/o [insert name and address of Warrant Agent], in the amount of $              in accordance with the terms hereof. The undersigned
requests that said principal amount of Warrant Debt Securities be in fully registered form in the authorized denominations, registered in such names and delivered all as specified in accordance with the instructions set forth below. 
  
 If the number of Warrants exercised is less than all the Warrants evidenced
hereby, the undersigned requests that a new Warrant Certificate evidencing the Warrants for the aggregate principal amount of Warrant Debt Securities remaining unexercised be issued and delivered to the undersigned unless otherwise specified in the
instructions below. 
  

							
	 Dated:
	 	  

	 	 Name
	 	  

	 	 	 	 	 	 	 (Please Print)

				
	 	 	 	 	 Address
	 	  

			
	 	 	 	 	  

			
	 	 	 	 	  

			
	 	 	 	 	(Insert Social Security or Other Identifying Number of Holder)

  

 A-1 

			
	 Signature Guaranteed
	 	

	  

	 	 Signature

		
	 	 	(Signature must conform in all respects to name of holder as specified on the face of this Warrant Certificate and must bear a signature guarantee by a bank, trust company or member broker of
the New York, Midwest or Pacific Stock Exchange)

  
 This Warrant may be exercised at the
following addresses: 
  

			
	 By hand at
	  	  

	 	  	  

	 	  	  

		
	 By mail at
	  	  

	 	  	  

	 	  	  

  
 [Instructions as to form and delivery
of Warrant Debt Securities and, if applicable, Warrant Certificates evidencing Warrants for the number of Warrant Debt Securities remaining unexercised—complete as appropriate.] 
  

 A-2 

 ASSIGNMENT 
  
 [Form of assignment to be executed if 
 Warrant
Holder desires to transfer Warrant) 
  
  

			
	FOR VALUE RECEIVED,	 	 hereby sells, assigns and transfers unto:

	  

	 	 
	  

	 	 
	  

	 	  

	 (Please print name and address including zip code)
	 	Please insert Social Security or other identifying number

  
 the right represented
by the within Warrant to purchase $              aggregate principal amount of [Title of Warrant Debt Securities] of Vicuron Pharmaceuticals Inc. to which the within Warrant relates
and appoints                      attorney to transfer such right on the books of the Warrant Agent with full power of substitution in the
premises. 
  

					
	 Dated
	 	  

	 	  

	 	 	 	 	 Signature

			
	 	 	 	 	(Signature must conform in all respects to name of holder as specified on the face of the Warrant)
	 Signature Guaranteed2003 Management Equity Incentive Plan.

 Exhibit 4.3 
  
 DDi CORP. 
  
 2003 MANAGEMENT EQUITY INCENTIVE PLAN 
  
 ARTICLE I 
 PURPOSE 
  
 Section 1.1 Purpose. This plan shall be known as the DDi Corp. 2003 Management Equity
Incentive Plan (the “Plan”). The purpose of the Plan shall be to promote the long-term growth and profitability of DDi Corp. (the “Company”) and its Subsidiaries by (i) providing certain officers and employees of
the Company and its Subsidiaries with incentives to maximize stockholder value and otherwise contribute to the success of the Company and (ii) enabling the Company to attract, retain and reward the best available persons for positions of
responsibility. Grants of incentive or non-qualified stock options and restricted stock may be made under the Plan in accordance with the terms and conditions set forth herein. 
  
 ARTICLE II 
 DEFINITIONS 
  
 Section 2.1 Definitions. 
  
 “Bank Commitments” has the meaning set forth in Section 5.3.

  
 “Bank Determination Date” has the meaning set
forth in Section 7.1.2. 
  
 “Board of Directors”
and “Board” mean the board of directors of the Company. 
  
 “Cause” means the occurrence of one or more of the following events: 
  
 (a) indictment of conviction of any felony (it being understood that if such Participant is not convicted of a felony within two (2) years of indictment
(or later if any state or federal agency is actively prosecuting such felony), such options shall be reinstated), 
  
 (b) fraud, misappropriation, or embezzlement that would warrant termination from the Company or its subsidiaries based upon the existing policies of the
Company and its subsidiaries then in effect, 
  
 (c) failure or
refusal, after reasonable notice, to perform the material duties of such person’s office, 
  
 (d) drug or alcohol abuse that would warrant termination from the Company or its subsidiaries based upon the existing policies of the Company and its subsidiaries then in effect, 
  
 (e) any willful misconduct or willful acts that materially impair the assets
of operations of the Company and its subsidiaries, taken as a whole, 

 (f) acts of discrimination or sexual harassment that would warrant termination from the Company or its
subsidiaries based upon the existing policies of the Company and its subsidiaries then in effect, 
  
 (g) public statements disparaging the Company that are likely to cause material damage to the Company and its subsidiaries, taken as a whole. 

 
 “Change in Control” means the occurrence of one of the
following events: 
  
 (a) any “person” or
“group” is or becomes the beneficial owner, directly or indirectly, of more than 50% of the total voting power of the voting stock of the Company (for the purposes of this clause, such person shall be deemed to beneficially own any voting
stock of a person held by any other person (the “parent entity”), if such person is the beneficial owner, directly or indirectly, of more than 50% of the voting power of the voting stock of such parent entity) or such person or group has
the power, directly or indirectly, to elect a majority of the members of the board of directors of the Company; 
  
 (b) the sale of all or substantially all the assets of the Company to another person, or, the merger or consolidation of the Company with or into another
person or the merger of another person with or into the Company, or if the securities of the Company that are outstanding immediately prior to such transaction and which represent 100% of the aggregate voting power of the voting stock of the Company
are changed into or exchanged for cash, securities, or property, unless pursuant to such transaction such securities are changed into or exchanged for, in addition to any other consideration, securities of the surviving person or transferee that
represent, immediately after such transaction, a majority of the aggregate voting power of the voting stock of the surviving person or transferee; or 
  
 (c) the Company is dissolved or liquidated. 
  
 “Code” means the Internal Revenue Code of 1986, as amended. 
  
 “Committee” means the Compensation Committee of the Board, which shall consist solely of two or more
members of the Board. 
  
 “Common Stock” means
the Common Stock, par value $.001 per share, of the Company, and any other shares into which such stock may be changed by reason of a recapitalization, reorganization, merger, consolidation or any other change in the corporate structure or capital
stock of the Company. 
  
 “Contingent Tranche A Stock
Options” has the meaning set forth in Section 5.3. 
  
 “Contingent Tranche A1-A3(b) Stock Options” has the meaning set forth in Section 5.3. 
  
 “Contingent Tranche A1-A3(c) Stock Options” has the meaning set forth in Section 5.3. 
  
 “Disability” means a disability that would entitle an
eligible participant to payment of monthly disability payments under any Company disability plan or as otherwise determined by the Committee. 
  

 2 

 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 “Exercised Options” has the meaning set forth in Section
9.5. 
  
 “Family Member” has the meaning given to
such term in General Instructions A.1(a)(5) to Form S-8 under the Securities Act of 1933, as amended, and any successor thereto. 
  
 “Fair Market Value” of a share of Common Stock of the Company means, as of the date in question, (i) if the Common Stock is listed on any
national securities exchange or quoted on the Nasdaq National Market or Nasdaq Small Cap Market, weighted average of the closing sales price of the Common Stock on such exchange or market on the five (5) trading days immediately preceding the date
of grant; or (ii) otherwise, the fair market value as determined by the Board of Directors of the Company, which determination shall be subject to approval by the Required Lenders; provided, further, that should the Required Lenders not approve the
determination of Fair Market Value, any dispute with regard to such valuation determinations shall be resolved by a neutral valuation firm of national standing approved by the Required Lenders; provided, however, that when shares received upon
exercise of an option are immediately sold in the open market, the net sale price received may be used to determine the Fair Market Value of any shares used to pay the exercise price or applicable withholding taxes and to compute the withholding
taxes. 
  
 “Good Reason” means termination of
employment by a Participant if (x) (a) such Participant’s annual base salary is materially reduced without Cause (unless there is a reduction in the base salary of substantially all comparably positioned employees or unless such Participant
consents) or (b) the requirements of such person’s job materially and adversely are changed without Cause and without such Participant’s consent (including, without limitation, the relocation of the Participant’s place of employment
to a location beyond 75 miles of his or her then current place of employment) and (y) such Participant terminates his or her position within 90 days of either (x)(a) or (x)(b) and states that the purpose for such termination is the events stated in
(x)(a) or (x)(b). 
  
 “Houlihan Note” has the
meaning set forth in the Senior Credit Agreement. 
  
 “Incentive Stock Option” means an option conforming to the requirements of Section 422 of the Code and any successor thereto. 
  
 “Initial Grant Date” has the meaning set forth in Section 6.1.1. 
  
 “Non-Contingent Stock Options” has the meaning set forth in Section 6.5. 
  
 “Non-Employee Director” has the meaning given to such term
in Rule 16b-3 under the Exchange Act and any successor thereto. 
  
 “Non-qualified Stock Option” means any stock option other than an Incentive Stock Option. 
  
 “Option Shares” has the meaning set forth in Section 3.2. 
  

 3 

 “Other Company Securities” mean securities of the Company other than Common Stock, which
may include, without limitation, unbundled stock units or components thereof, debentures, preferred stock, warrants and securities convertible into or exchangeable for Common Stock or other property. 
  
 “Participants” has the meaning set forth in Section 3.3.1.

  
 “Plan” has the meaning set forth in Section
1.1. 
  
 “Reload Number” has the meaning set
forth in Section 9.5. 
  
 “Reload Option” has the
meaning set forth in Section 9.5. 
  
 “Required
Lenders” has the meaning given such term in the Senior Credit Agreement. 
  
 “Restricted Stock” has the meaning set forth in Section 3.2. 
  
 “Retirement” means retirement as defined under any Company pension plan or retirement program or termination of one’s employment on
retirement with the approval of the Committee. 
  
 “Second
Grant Date” has the meaning set forth in Section 6.1.1. 
  
 “Senior Credit Agreement” has the meaning set forth in Section 5.3. 
  
 “Shares” has the meaning set forth in Section 3.2. 
  
 “Stock Options” has the meaning set forth in Section 3.2. 
  
 “Subsidiary” means a corporation or other entity of which outstanding shares or ownership interests
representing 50% or more of the combined voting power of such corporation or other entity entitled to elect the management thereof, or such lesser percentage as may be approved by the Committee, are owned directly or indirectly by the Company.

  
 “Tranche A Optionees” has the meaning set
forth in Section 5.1.1. 
  
 “Tranche A Stock
Options” has the meaning set forth in Section 5.1.1. 
  
 “Tranche A1 Exercise Price” has the meaning set forth in Section 6.1.2. 
  
 “Tranche A2 Exercise Price” has the meaning set forth in Section 6.2.2. 
  
 “Tranche A3 Exercise Price” has the meaning set forth in Section 6.3.2. 
  
 “Tranche B Exercise Price” has the meaning set forth in
Section 6.4. 
  
 “Tranche A1 Stock Options” has
the meaning set forth in Section 5.1.2. 
  
 “Tranche A1(a)
Stock Options” has the meaning set forth in Section 5.1.2. 
  

 4 

 “Tranche A1(b) Stock Options” has the meaning set forth in Section 5.1.2. 
  
 “Tranche A1(c) Stock Options” has the meaning set forth in
Section 5.1.2. 
  
 “Tranche A2 Stock Options” has
the meaning set forth in Section 5.1.3. 
  
 “Tranche A2(a)
Stock Options” has the meaning set forth in Section 5.1.3. 
  
 “Tranche A2(b) Stock Options” has the meaning set forth in Section 5.1.3. 
  
 “Tranche A2(c) Stock Options” has the meaning set forth in Section 5.1.3. 
  
 “Tranche A3 Stock Options” has the meaning set forth in Section 5.1.4. 
  
 “Tranche A3(a) Stock Options” has the meaning set forth in
Section 5.1.4. 
  
 “Tranche A3(b) Stock Options”
has the meaning set forth in Section 5.1.4. 
  
 “Tranche
A3(c) Stock Options” has the meaning set forth in Section 5.1.4. 
  
 “Tranche A4 Stock Options” has the meaning set forth in Section 5.1.5. 
  
 “Tranche B Stock Options” has the meaning set forth in Section 5.2. 
  
 “Tranche B1 Stock Options” has the meaning set forth in Section 5.2. 
  
 “Tranche B2 Stock Options” has the meaning set forth in
Section 5.2. 
  
 “Tranche B3 Stock Options” has
the meaning set forth in Section 5.2. 
  
 ARTICLE III 

PLAN ADMINISTRATION, SHARES AND PARTICIPATION 
  
 Section 3.1 Administration. 
  
 3.1.1 The Plan shall be administered by the Committee; provided that the Board may, in its discretion, at any time and from time to time, resolve to
administer the Plan, in which case the term “Committee” shall be deemed to mean the Board for all purposes herein. Subject to the provisions of the Plan, the Committee shall be authorized to (i) select persons to participate in the Plan,
(ii) determine the form and substance of grants made under the Plan to each participant, and the conditions and restrictions, if any, subject to which such grants will be made, (iii) certify that the conditions and restrictions applicable to any
grant have been met, (iv) modify the terms of grants made under the Plan, (v) interpret the Plan and grants made thereunder, (vi) make any adjustments necessary or desirable in connection with grants made under the Plan to eligible participants
located outside the United States, (vii) adopt, amend, or rescind such rules and regulations, and make such other determinations, for carrying out the Plan as it may deem appropriate and (viii) delegate to employees of the Company and outside
consultants such tasks and responsibilities as are related to the administration of day-to-day aspects of the Plan. Decisions of the Committee on all matters relating to the Plan shall be in the 
  

 5 

 Committee’s sole discretion and shall be conclusive and binding on all parties. The validity, construction, and
effect of the Plan and any rules and regulations relating to the Plan shall be determined in accordance with applicable federal and state laws and rules and regulations promulgated pursuant thereto. No member of the Committee and no officer of the
Company shall be liable for any action taken or omitted to be taken by such member, by any other member of the Committee or by any officer of the Company in connection with the performance of duties under the Plan, except for such person’s own
willful misconduct or as expressly provided by statute. 
  
 3.1.2
The expenses of the Plan shall be borne by the Company. The Plan shall not be required to establish any special or separate fund or make any other segregation of assets to assume the payment of any award under the Plan, and rights to the payment of
such awards shall be no greater than the rights of the Company’s general creditors. 
  
 Section 3.2 Shares Available For The Plan. 
  
 Subject to (i) the restrictions on grant and exercise described in Articles VI and VII and (ii) to adjustments as provided in Section 11.5 hereof, an aggregate of 6,190,120 shares of Common Stock (the
“Shares”) may be issued pursuant to the Plan, including an aggregate of 1,250,000 Shares of restricted stock (the “Restricted Stock”) and an aggregate of 4,940,120 Shares (the “Option Shares”) that
may be issued upon the exercise of stock options (the “Stock Options”). In order to be able to provide proper incentives to Plan Participants in connection with the achievement of the Company’s business objectives as
established by the Board of Directors, the Committee may, in its discretion, grant Stock Options in separate tranches or series having different terms of, among other things, vesting and exercise such that the aggregate number of shares of Common
Stock that may be purchased pursuant to Stock Options granted and outstanding at any time, based on the amount of Shares described on the face of such Stock Options, may exceed the number of Option Shares authorized pursuant to this Plan;
provided, that the aggregate number Shares that may be issued upon complete exercise of all series and tranches of stock options in accordance with their terms shall not exceed the number of Option Shares authorized by this Plan. Such Shares
may be in whole or in part authorized and unissued or held by the Company as treasury shares. Except as otherwise provided in this Plan, if any grant under the Plan expires or terminates unexercised, becomes unexercisable or is forfeited as to any
Shares, or is tendered or withheld as to any shares in payment of the exercise price of the grant or the taxes payable with respect to the exercise, then such unpurchased, forfeited, tendered or withheld Shares shall thereafter be available for
further grants under the Plan. 
  
 Section 3.3 Participation. 

 
 3.3.1 Participation in the Plan shall be limited to those officers and
employees of the Company and its Subsidiaries selected by the Committee (including participants located outside the United States) (the “Participants”). Nothing in the Plan or in any grant thereunder shall confer any right on a
Participant to continue in the employ as an officer of the Company or shall interfere in any way with the right of the Company to terminate the employment or to reduce the compensation or responsibilities of a participant at any time. By accepting
any award under the Plan, each Participant and each person claiming under or through him or her shall be conclusively deemed to have indicated his or her acceptance and ratification of, and consent to, 
  

 6 

 any action taken under the Plan by the Company, the Board or the Committee. Such individuals to whom grants are made
pursuant to this Plan being sometimes herein called “optionees” or “grantees,” as the case may be. 
  
 3.3.2 Incentive Stock Options, Non-Qualified Stock Options and Restricted Stock awards may be granted to such persons and for such number of Shares as the
Committee shall determine. Determinations of grants made by the Committee under the Plan need not be uniform and may be made selectively among eligible individuals under the Plan, whether or not such individuals are similarly situated. A grant of
any type in any one year to an eligible Participant shall neither guarantee nor preclude a further grant of that type to such Participant in that year or subsequent years. 
  
 ARTICLE IV 
 RESTRICTED STOCK 
  
 Section 4.1 Restricted Stock. The Committee
may grant shares of Restricted Stock to eligible Participants. Each grant of Restricted Stock shall specify the applicable restrictions on such Shares, the duration of such restrictions and the time or times at which such restrictions shall have
with respect to all or a specified number of Shares that are part of the grant. 
  
 Section 4.2 Purchase Price; Certificates; Rights of Holder. Each Restricted Stock grantee will be required to pay the Company the aggregate par value of any Shares of Restricted Stock (or such larger amount as the Board may determine
to constitute capital under Section 154 of the Delaware General Corporation Law, as amended, or any successor thereto) within ten days of the date of grant, unless such Shares of Restricted Stock are treasury shares. Unless otherwise determined by
the Committee, certificates representing Shares of Restricted Stock granted under the Plan will be held in escrow by the Company on the participant’s behalf during any period of restriction thereon and will bear an appropriate legend specifying
the applicable restrictions thereon, and the Participant will be required to execute a blank stock power therefor. Except as otherwise provided by the Committee, during such period of restriction the Participant shall have all of the rights of a
holder of Common Stock, including but not limited to the rights to receive dividends and to vote, and any stock or other securities received as a distribution with respect to such Participant’s Restricted Stock shall be subject to the same
restrictions as then in effect for the restricted stock. 
  
 Section 4.3
Vesting. The Restricted Stock shall vest as follows: (i) fifty percent (50%) of the Restricted Stock on February 15, 2004 and (ii) fifty percent (50%) on or after January 15, 2005. 
  
 ARTICLE V 
 STOCK
OPTIONS 
  
 Section 5.1 Tranche A Stock Options. 
  
 5.1.1 General. The Committee may grant options to purchase shares of
Common Stock (the “Tranche A Stock Options”) to eligible Participants (the “Tranche A Optionees”). The Tranche A Stock Options shall consist of four (4) series of stock options: Tranche A1 Stock Options, Tranche A2
Stock Options, Tranche A3 Stock Options, and Tranche A4 Stock Options, respectively, as each such series, including each sub-series thereof, is more 
  

 7 

 fully described below; provided, that the total number of Option Shares that may be issued upon exercise of the
Tranche A Stock Options shall not exceed 3,742,515 shares of Common Stock in the aggregate. 
  
 5.1.2 Tranche A1 Stock Options. The Committee may grant options to the Tranche A Optionees to purchase up to 1,133,787 shares of Common Stock in the aggregate (the “Tranche A1 Stock Options”)
in three series of stock options (the “Tranche A1(a) Stock Options”, “Tranche A1(b) Stock Options” and “Tranche A1(c) Stock Options”, respectively). 
  
 5.1.3 Tranche A2 Stock Options. The Committee may grant options to the
Tranche A Optionees to purchase up to 1,133,787 shares of Common Stock in the aggregate (the “Tranche A2 Stock Options”) in three series of stock options (the “Tranche A2(a) Stock Options”, “Tranche A2(b)
Stock Options” and “Tranche A2(c) Stock Options”, respectively). 
  
 5.1.4 Tranche A3 Stock Options. The Committee may grant options to the Tranche A Optionees to purchase up to 1,133,787 shares of Common Stock in the aggregate (the “Tranche A3 Stock Options”)
in three series of stock options (the “Tranche A3(a) Stock Options”, “Tranche A3(b) Stock Options” and “Tranche A3(c) Stock Options”, respectively). 
  
 5.1.5 Tranche A4 Stock Options. The Committee may grant options to
purchase up to 748,503 shares of Common Stock in the aggregate (the “Tranche A4 Stock Options”) as set forth in Article VII herein. 
  
 Section 5.2 Tranche B Stock Options. Subject to the restriction set forth in Section 6.4.1 herein, the Committee may from time to time grant to eligible
Participants options to purchase up to 1,360,544 shares of Common Stock in the aggregate (the “Tranche B Stock Options”) in three series of stock options (the “Tranche B1 Stock Options”, “Tranche B2 Stock
Options” and “Tranche B3 Stock Options”, respectively). 
  
 Section 5.3 Contingent Stock Options. The terms of exercise applicable to the Tranche A1(b) Stock Options, Tranche A2(b) Stock Options, Tranche A3(b) Stock Options (collectively, the “Contingent Tranche A1-A3(b) Stock
Options”), the Tranche A1(c) Stock Options, Tranche A2(c) Stock Options, and Tranche A3(c) Stock Options (together, the “Contingent Tranche A1-A3(c) Stock Options”, and together with the Contingent Tranche A1-A3(b) Stock
Options, the “Contingent Tranche A Stock Options”), the Tranche A4 Stock Options, the Tranche B2 Stock Option and the Tranche B3 Stock Options shall be contingent upon the satisfaction by the Company, pursuant to the Second Amended
and Restated Credit Agreement, dated December 12, 2003 (the “Senior Credit Agreement”), among certain subsidiaries of the Company and the Lenders and agents named therein, of certain conditions relating to the repayment of its
commitments, including all accrued and unpaid interest and the Success Fee, as defined in the Senior Credit Agreement (collectively, the “Bank Commitments”), as more fully described in Article VII herein. 
  

 8 

 ARTICLE VI 
 NON-CONTINGENT STOCK OPTIONS 
  

	Section	6.1 Tranche A1(a) Stock Options. 

  
 6.1.1 Grant Dates. The Committee may grant Tranche A1(a) Stock Options as follows: (i) on or after the Effective Date (such grant date, the
“Initial Grant Date”), the Committee may grant Tranche A1(a) Stock Options representing the right to purchase up to 499,002 shares of Common Stock in the aggregate; and (ii) on or after the first anniversary of the Effective Date
(the “Second Grant Date”), the Committee may grant Tranche A1(a) Stock Options representing the right to purchase up to 499,002 shares of Common Stock in the aggregate. 
  
 6.1.2 Exercise Price. The exercise price for all Tranche A1 Stock Options shall be $0.49 per share (the
“Tranche A1 Exercise Price”). 
  
 Section 6.2 Tranche A2(a)
Stock Options. 
  
 6.2.1 Grant Dates. The Committee may
grant Tranche A2(a) Stock Options as follows: (i) on or after the Initial Grant Date, the Committee may grant Tranche A2(a) Stock Options representing the right to purchase up to 499,002 shares of Common Stock in the aggregate and (ii) on or after
the Second Grant Date, the Committee may grant Tranche A2(a) Stock Options representing the right to purchase up to 499,002 shares of Common Stock in the aggregate. 
  
 6.2.2 Exercise Price. The exercise price for the Tranche A2 Stock Options (the “Tranche A2 Exercise
Price”) shall be determined as follows: (i) for grants on the Initial Grant Date, the exercise price shall be the Fair Market Value of the Common Stock as of the Initial Grant Date and (ii) for grants on the Second Grant Date, the exercise
price shall be equal to the greater of (x) the Fair Market Value of the Common Stock as of the Initial Grant Date and (y) the Fair Market Value of the Common Stock as of the Second Grant Date. 
  
 Section 6.3 Tranche A3(a) Stock Options. 
  
 6.3.1 Grant Dates. The Committee may grant Tranche A3(a) Stock Options
as follows: (i) on or after the Effective Date, the Committee may grant Tranche A3(a) Stock Options representing the right to purchase up to 499,002 shares of Common Stock in the aggregate and (ii) on or after the Second Grant Date, the Committee
may grant Tranche A3(a) Stock Options representing the right to purchase up to 499,002 shares of Common Stock in the aggregate. 
  
 6.3.2 Exercise Price. The exercise price for the Tranche A3 Stock Options (the “Tranche A3 Exercise Price”) shall be determined as
follows: (i) for grants on the Initial Grant Date, the exercise price shall be 115% of the Fair Market Value of the Common Stock as of the Initial Grant Date and (ii) for grants on the Second Grant Date, the exercise price shall be equal to the
greater of (x) the 115% of the Fair Market Value of the Common Stock as of the Initial Grant Date and (y) the Fair Market Value of the Common Stock as of the Second Grant Date. 
  

 9 

 Section 6.4 Tranche B1 Stock Options. 
  
 6.4.1 General. The Committee may from time to time grant to eligible Participants Tranche B1 Stock Options
representing the right to purchase up to 1,197,605 shares of Common Stock in the aggregate; provided that, if at any time the Houlihan Note is outstanding and unpaid, or if the Houlihan Note has been converted into Common Stock of the Company
in accordance with its terms, the Committee may only grant Tranche B1 Stock Options representing the right to purchase 996,659 shares of Common Stock in the aggregate. 
  
 6.4.2 Exercise Price. The exercise price (the “Tranche B Exercise Price”) for Tranche B Stock
Options shall be equal to the Fair Market Value of the Common Stock as of the date of grant thereof. 
  
 Section 6.5 Vesting. The Tranche A1(a) Stock Options, Tranche A2(a) Stock Options, Tranche A3(a) Stock Options and Tranche B1 Stock Options (together, the “Non-Contingent Stock Options”) may
only be exercised to the extent they have become vested. The Non-Contingent Stock Options shall vest in increments of 331/3% commencing on the respective date of grant and on each eighteen (18) month anniversary thereof.

  
 Section 6.6 Termination Date. In no event shall any part of the
Non-Contingent Stock Options be exercisable after the tenth anniversary of the Termination Date (defined below). 
  
 ARTICLE VII 
 CONTINGENT STOCK OPTIONS 
  
 Section 7.1 Tranche A4 Stock Options. 
  
 7.1.1 General. The Committee may grant Tranche A4 Stock Options to the
Tranche A Optionees at an exercise price of $0.001 per share as follows: (i) on the Effective Date, the Committee may grant Tranche A4 Stock Options representing the right to purchase up to 374,252 shares of Common Stock and (ii) on the first
anniversary of the Effective Date, the Committee may grant Tranche A4 Stock Options representing the right to purchase up to 374,251 shares of Common Stock in the aggregate. 
  
 7.1.2 Exercise. The Tranche A4 Stock Options may only be exercised if, as of the second anniversary of the Effective
Date (the “Bank Determination Date”), the Company has satisfied certain conditions relating to the repayment of the Bank Commitments as follows: 
  
 (a) if the Bank Commitments have been permanently repaid by one hundred percent (100%) by the Bank Determination Date, then
all of the Tranche A4 Stock Options shall become exercisable; and 
  
 (b) if the Bank Commitments have been permanently repaid by at least fifty percent (50%) but less then one hundred percent (100%) by the Bank Determination Date, then (x) fifty percent (50%) of the Tranche A4 Stock Options may be exercised
such that up to 374,252 shares of Common Stock may be issued pursuant to such exercise and (y) the remaining fifty percent (50%) of Tranche A4 Stock Options shall be forfeited. 
  

 10 

 7.1.3 Forfeiture. If less than fifty percent (50%) of the Bank Commitments have been permanently
repaid by the Bank Determination Date, then all of the Tranche A4 Stock Options shall be forfeited as of such date. Notwithstanding anything contained herein to the contrary, if any Tranche A4 Stock Options are forfeited pursuant to this Section
7.1.3, then such forfeited option shares shall not thereafter be available for further grants under this Plan. 
  
 7.1.4 Termination Date. In no event shall any part of the Tranche A4 Stock Options be exercisable after the fifth anniversary of the date of grant
thereof. 
  
 Section 7.2 Contingent Tranche A Stock Options. 
  
 7.2.1 Grant Dates. The Committee may grant Contingent Tranche A Stock
Options as follows: 
  
 (a) on or after the Initial Grant Date,
the Committee may grant Contingent Tranche A Stock Options representing the right to purchase up to 203,676 shares of Common Stock in the aggregate, consisting of: 
  

	 	(i)	Tranche A1(b) Stock Options representing the right to purchase up to 42,186 shares of Common Stock in the aggregate at an exercise price equal to the Tranche A1 Exercise Price;

  

	 	(ii)	Tranche A1(c) Stock Options representing the right to purchase up to 25,706 shares of Common Stock in the aggregate at an exercise price equal to the Tranche A1 Exercise Price;

  

	 	(iii)	Tranche A2(b) Stock Options representing the right to purchase up to 42,186 shares of Common Stock in the aggregate at an exercise price equal to the Tranche A2 Exercise Price;

  

	 	(iv)	Tranche A2(c) Stock Options representing the right to purchase up to 25,706 shares of Common Stock in the aggregate at an exercise price equal to the Tranche A2 Exercise Price;

  

	 	(v)	Tranche A3(b) Stock Options representing the right to purchase up to 42,186 shares of Common Stock in the aggregate at an exercise price equal to the Tranche A3 Exercise Price; and

  

	 	(vi)	Tranche A3(c) Stock Options representing the right to purchase up to 25,706 shares of Common Stock in the aggregate at an exercise price equal to the Tranche A3 Exercise Price.

  

 11 

 (b) On or after the Second Grant Date, the Committee may grant Contingent Tranche A Stock Options
representing the right to purchase up to 203,673 shares of Common Stock in the aggregate, consisting of: 
  

	 	(i)	Tranche A1(b) Stock Options representing the right to purchase up to 42,185 shares of Common Stock in the aggregate at an exercise price equal to the Tranche A1 Exercise Price;

  

	 	(ii)	Tranche A1(c) Stock Options representing the right to purchase up to 25,706 shares of Common Stock in the aggregate at an exercise price equal to the Tranche A1 Exercise Price;

  

	 	(iii)	Tranche A2(b) Stock Options representing the right to purchase up to 42,185 shares of Common Stock in the aggregate at an exercise price equal to the Tranche A2 Exercise Price;

  

	 	(iv)	Tranche A2(c) Stock Options representing the right to purchase up to 25,706 shares of Common Stock in the aggregate at an exercise price equal to the Tranche A2 Exercise Price;

  

	 	(v)	Tranche A3(b) Stock Options representing the right to purchase up to 42,185 shares of Common Stock in the aggregate at an exercise price equal to the Tranche A3 Exercise Price; and

  

	 	(vi)	Tranche A3(c) Stock Options representing the right to purchase up to 25,706 shares of Common Stock in the aggregate at an exercise price equal to the Tranche A3 Exercise Price.

  
 7.2.2 Vesting. Subject to the conditions
on exercise set forth in Section 7.2.3 below, the Contingent Tranche A Stock Options may only be exercised to the extent they have been vested. The Contingent Tranche A Stock Options shall vest in increments of 331/3% commencing on
the respective date of grant and on each eighteen (18) month anniversary thereof. 
  
 7.2.3 Exercise. Notwithstanding the satisfaction of any vesting requirements, (i) the Contingent Tranche A1-A3(b) Stock Options may only be exercised if, as of the Bank Determination Date, the Company and its
Subsidiaries have repaid less than 100% of the Bank Commitments and (ii) the Contingent Tranche A1-A3(c) Stock Options may only be exercised if, as of the Bank Determination Date, the Company and its Subsidiaries have permanently repaid less than
50% of the Bank Commitments. Notwithstanding anything contained herein to the contrary, if any Contingent Tranche A Stock Options are forfeited pursuant to this Section 7.2.3, then such forfeited option shares shall not thereafter be available for
further grants under this Plan. 
  

 12 

 Section 7.3 Contingent Tranche B Stock Options. 
  
 7.3.1 The Committee may from time to time grant Tranche B2 Stock Options to purchase up to 101,245 shares of Common Stock in
the aggregate and Tranche B3 Stock Options to purchase up to 61,694 shares of Common Stock in the aggregate, in each case, at the Tranche B Exercise Price. 
  
 7.3.2 Vesting. Subject to the conditions on exercise set forth in Section 7.3.3 below, the Tranche B2 Stock Options and Tranche B3 Stock Options
may only be exercised to the extent they have been vested. The Tranche B2 Stock Options and Tranche B3 Stock Options shall each vest in increments of 331/3% commencing on the respective date of grant and on each eighteen
(18) month anniversary thereof; provided, that in the case of grants of Tranche B2 Stock Options or Tranche B3 Stocks on the Initial Grant Date the first increment of such options may not vest until the date that is three (3) months after the
date of such grant. 
  
 7.3.3 Exercise. Notwithstanding the
satisfaction of any vesting requirements, (i) the Tranche B2 Stock Options may only be exercised if, as of the Bank Determination Date, the Company and its Subsidiaries have repaid less than 100% of the Bank Commitments and (ii) the Tranche B3 Stock
Options may only be exercised if, as of the Bank Determination Date, the Company and its Subsidiaries have permanently repaid less than 50% of the Bank Commitments. Notwithstanding anything contained herein to the contrary, if any Tranche B Stock
Options are forfeited pursuant to this Section 7.3.3, then such forfeited option shares shall not thereafter be available for further grants under this Plan. 
  
 ARTICLE VIII 
 FORM; PAYMENT 
  

	Section	8.1 Form of Stock Option Grants. 

  
 8.1.1 Grants of Stock Options may, in the Committee’s discretion, be in the form of Incentive Stock Options, Non-qualified Stock Options, or any
combination thereof; provided that the Committee may grant Incentive Stock Options only to eligible employees of the Company or its subsidiaries (as defined for this purpose in Section 424(f) of the Code or any successor thereto). In any one
calendar year, the Committee shall not grant to any one participant options to purchase a number of shares of Common Stock in excess of 50% of the total number of Shares authorized under the Plan pursuant to Section 3.2. 
  
 8.1.2 It is the Company’s intent that Non-qualified Stock Options
granted under the Plan not be classified as Incentive Stock Options, that Incentive Stock Options be consistent with and contain or be deemed to contain all provisions required under Section 422 of the Code and any successor thereto, and that any
ambiguities in construction be interpreted in order to effectuate such intent. If an Incentive Stock Option granted under the Plan does not qualify as such for any reason, then to the extent of such non-qualification, the stock option represented
thereby shall be regarded as a Non-qualified Stock Option duly granted under the Plan, provided that such stock option otherwise meets the Plan’s requirements for Non-qualified Stock Options. 
  

 13 

 Section 8.2 Payment for Stock Options. 
 8.2.1 Options may be exercised, in whole or in part, upon payment of the exercise price of the Shares to be acquired. Unless otherwise determined by the
Committee, payment shall be made (i) in cash (including check, bank draft, money order or wire transfer of immediately available funds), (ii) by delivery of outstanding shares of Common Stock with a Fair Market Value on the date of exercise equal to
the aggregate exercise price payable with respect to the options’ exercise, (iii) by simultaneous sale through a broker reasonably acceptable to the Committee of Shares acquired on exercise, as permitted under Regulation T of the Federal
Reserve Board, (iv) by authorizing the Company to withhold from issuance a number of Shares issuable upon exercise of the options which, when multiplied by the Fair Market Value of a share of Common Stock on the date of exercise, is equal to the
aggregate exercise price payable with respect to the options so exercised or (v) by any combination of the foregoing. 
  
 8.2.2 In the event a grantee elects to pay the exercise price payable with respect to an option pursuant to clause (ii) above, (A) only a whole number of
share(s) of Common Stock (and not fractional shares of Common Stock) may be tendered in payment, (B) such grantee must present evidence acceptable to the Company that he or she has owned any such shares of Common Stock tendered in payment of the
exercise price (and that such tendered shares of Common Stock have not been subject to any substantial risk of forfeiture) for at least six months prior to the date of exercise, and (C) Common Stock must be delivered to the Company. Delivery for
this purpose may, at the election of the grantee, be made either by (A) physical delivery of the certificate(s) for all such shares of Common Stock tendered in payment of the price, accompanied by duly executed instruments of transfer in a form
acceptable to the Company, or (B) direction to the grantee’s broker to transfer, by book entry, such shares of Common Stock from a brokerage account of the grantee to a brokerage account specified by the Company. When payment of the exercise
price is made by delivery of Common Stock, the difference, if any, between the aggregate exercise price payable with respect to the option being exercised and the Fair Market Value of the shares of Common Stock tendered in payment (plus any
applicable taxes) shall be paid in cash. No grantee may tender shares of Common Stock having a Fair Market Value exceeding the aggregate exercise price payable with respect to the option being exercised (plus any applicable taxes). 
  
 8.2.3 In the event a grantee elects to pay the exercise price payable with
respect to an option pursuant to clause (iv) above, (A) only a whole number of Share(s) (and not fractional Shares) may be withheld in payment and (B) such grantee must present evidence acceptable to the Company that he or she has owned a number of
shares of Common Stock at least equal to the number of Shares to be withheld in payment of the exercise price (and that such owned shares of Common Stock have not been subject to any substantial risk of forfeiture) for at least six months prior to
the date of exercise. When payment of the exercise price is made by withholding of Shares, the difference, if any, between the aggregate exercise price payable with respect to the option being exercised and the Fair Market Value of the Shares
withheld in payment (plus any applicable taxes) shall be paid in cash. No grantee may authorize the withholding of Shares having a Fair Market Value exceeding the aggregate exercise price payable with respect to the option being exercised (plus any
applicable taxes). Any withheld Shares shall no longer be issuable under such option. 
  

 14 

 8.2.4 If required by the Code, the aggregate Fair Market Value (determined as of the grant date) of
Shares for which an Incentive Stock Option is exercisable for the first time during any calendar year under all equity incentive plans of the Company and its Subsidiaries (as defined in Section 422 of the Code or any successor thereto) may not
exceed $100,000. 
  
 ARTICLE IX 
 ADDITIONAL VESTING AND FORFEITURE PROVISIONS 
  
 Section 9.1 Death or Disability. If a participant ceases to be an officer or employee of the Company and any Subsidiary due to death or Disability, (i) all of the
Participant’s Stock Options to the extent then vested and exercisable, will remain exercisable by such Participant or Participant’s executor or administrator or the person or persons to whom the Stock Option is transferred by will or the
applicable law of descent and distribution, as applicable, for the lessor of (i) a one year period ending with the first anniversary of the Participant’s death or Disability or (ii) the period ending on the latest date on which the Stock Option
could have been exercised without regard to this Section 9.1 and shall thereupon terminate and (ii) all of the Participant’s Restricted Stock and Stock Options to the extent not already fully vested and, in the case of Stock Options,
exercisable, will be forfeited. Notwithstanding the foregoing, if the Disability giving rise to the termination of employment is not within the meaning of Section 22(e)(3) of the Code or any successor thereto, Incentive Stock Options not
exercised by such participant within 90 days after the date of termination of employment will cease to qualify as Incentive Stock Options and will be treated as Non-qualified Stock Options under the Plan if required to be so treated under the
Code. 
  
 Section 9.2 Retirement. If a Participant ceases to be an
officer or employee of, the Company and any Subsidiary upon the occurrence of his or her Retirement, (A) all of the Participant’s Stock Options that were exercisable on the date of Retirement shall remain exercisable for, and shall otherwise
terminate at the end of, a period of 90 days after the date of Retirement, but in no event after the expiration date of the Stock Options; provided that the Participant does not engage in Competition during such 90-day period unless he or she
receives written consent to do so from the Board or the Committee, and (B) all of the Participant’s Stock Options that were not exercisable on the date of Retirement shall be forfeited immediately upon such Retirement; provided, however, that
such Stock Options may become fully vested and exercisable in the discretion of the Committee. Notwithstanding the foregoing, Incentive Stock Options not exercised by such participant within 90 days after Retirement will cease to qualify as
Incentive Stock Options and will be treated as Non-qualified Stock Options under the Plan if required to be so treated under the Code. 
  
 Section 9.3 Mandatory Forfeiture. If a Participant ceases to be an officer or employee of the Company or a Subsidiary (i) as a result of termination by the Company
or such Subsidiary for Cause or (ii) upon voluntary termination by such participant without Good Reason, then, in each case, all of the Participant’s unvested Restricted Stock and all of the Participant’s Stock Options shall expire and be
forfeited immediately upon such cessation, whether or not, in the case of Stock Options, then exercisable. 
  

 15 

 Section 9.4 Other Termination. Unless otherwise determined by the Committee, if a Participant ceases to be an
officer or employee of the Company or a Subsidiary for any reason other than as set forth in Sections 9.1, 9.2 and 9.3 above, (A) all of the Participant’s Stock Options that were exercisable on the date of such cessation shall remain
exercisable for, and shall otherwise terminate at the end of, a period of 90 days after the date of such cessation, but in no event after the expiration date of the Stock Options; provided that the participant does not engage in Competition during
such 90-day period unless he or she receives written consent to do so from the Board or the Committee, and (B) all of the Participant’s Stock Options that were not exercisable on the date of such cessation shall be forfeited immediately upon
such cessation. 
  
 Section 9.5 Change in Control. 
  
 9.5.1 Upon any Change of Control effected solely for cash consideration, (A)
all Restricted Stock and Stock Options shall immediately become fully vested and, in the case of Stock Options, exercisable and all deferrals, other than deferrals of amounts that are neither measured by reference to nor payable in shares of Common
Stock, shall be accelerated, immediately prior to the Change of Control and (ii) upon consummation of such Change of Control all Awards then outstanding and requiring exercise shall be forfeited unless assumed by an acquiring or surviving entity or
its affiliate as provided in the following sentence. 
  
 9.5.2
Upon any Change of Control where the consideration is a combination of cash and securities, (x) the percentage amount of unvested Restricted Stock and Stock Options that shall become immediately vested and, in the case of Stock Options, exercisable
shall be equal to the percentage amount that cash consideration represents to the total consideration used in connection with such Change of Control and (y) the percentage amount of unvested Restricted Stock and Stock Options that shall be converted
into unvested Restricted Stock and Stock Option of the surviving entity resulting from such Change of Control shall be equal to the percentage amount that securities used as consideration represent to the total consideration used in connection with
such Change of Control. 
  
 9.5.3 Upon any Change of Control where
cash is not used as any form of consideration, all unvested Restricted Stock and Stock Options shall be converted into unvested Restricted Stock and Stock Options of the surviving entity resulting from such Change of Control. 
  
 9.5.4 If, following a Change of Control, (A) a holder’s employment is
terminated by the Company or the successor to the Company for Cause, or the holder voluntarily leaves the successor to the Company without Good Reason within one year following the effective date of the Change of Control, then all of such
holder’s unvested Stock Options and unvested Restricted Stock shall be forfeited upon such termination and/or leave or (B) a holder’s employment is terminated by the Company or the successor to the Company without Cause, or the holder
voluntarily leaves the Company or the successor to the Company with Good Reason within two years following the effective date of the Change of Control, then all of such holder’s unvested Options and unvested Restricted Stock shall immediately
vest upon such termination or leave. 
  

 16 

 Section 9.6 Grant of Reload Options. The Committee may provide (either at the time of grant or exercise of an
option), in its discretion, for the grant to a grantee who exercises all or any portion of an option (“Exercised Options”) and who pays all or part of such exercise price with shares of Common Stock, of an additional option (a
“Reload Option”) for a number of shares of Common Stock equal to the sum (the “Reload Number”) of the number of shares of Common Stock tendered or withheld in payment of such exercise price for the Exercised Options
plus, if so provided by the Committee, the number of shares of Common Stock, if any, tendered or withheld by the grantee or withheld by the Company in connection with the exercise of the Exercised Options to satisfy any federal, state or local tax
withholding requirements. The terms of each Reload Option, including the date of its expiration and the terms and conditions of its exercisability and transferability, shall be the same as the terms of the Exercised Option to which it relates,
except that (i) the grant date for each Reload Option shall be the date of exercise of the Exercised Option to which it relates and (ii) the exercise price for each Reload Option shall be the Fair Market Value of the Common Stock on the grant date
of the Reload Option. 
  
 ARTICLE X 
 WITHHOLDING TAXES 
  
 Section 10.1 Participant Election. Unless otherwise determined by the Committee, a participant may elect to deliver shares of Common Stock (or have the Company
withhold shares acquired upon exercise of a Stock Option or deliverable upon grant or vesting of Restricted Stock, as the case may be) to satisfy, in whole or in part, the amount the Company is required to withhold for taxes in connection with the
exercise of a Stock Option or the delivery of Restricted Stock upon grant or vesting, as the case may be. Such election must be made on or before the date the amount of tax to be withheld is determined. Once made, the election shall be irrevocable.
The fair market value of the shares to be withheld or delivered will be the Fair Market Value as of the date the amount of tax to be withheld is determined. In the event a participant elects to deliver or have the Company withhold shares of Common
Stock pursuant to this Section 10.1, such delivery or withholding must be made subject to the conditions and pursuant to the procedures set forth in Section 8.2 with respect to the delivery or withholding of Common Stock in payment of the exercise
price of options. 
  
 Section 10.2 Company Requirement. The Company may
require, as a condition to any grant or exercise under the Plan or to the delivery of certificates for Shares issued hereunder, that the grantee make provision for the payment to the Company, either pursuant to Section 10.1 or this Section 10.2, of
federal, state or local taxes of any kind required by law to be withheld with respect to any grant or delivery of Shares. The Company, to the extent permitted or required by law, shall have the right to deduct from any payment of any kind (including
salary or bonus) otherwise due to a grantee, an amount equal to any federal, state or local taxes of any kind required by law to be withheld with respect to any grant or delivery of Shares under the Plan. 
  

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 ARTICLE XI 
 MISCELLANEOUS 
  
 Section 11.1 Written
Agreement. Each employee to whom a grant is made under the Plan shall enter into a written agreement with the Company that shall contain such provisions, including without limitation vesting requirements, consistent with the provisions of the
Plan, as may be approved by the Committee. 
  
 Section 11.2
Transferability. Unless the Committee determines otherwise, no Stock Option or Restricted Stock granted under the Plan shall be transferable by a participant other than by will or the laws of descent and distribution or to a
participant’s Family Member by gift or a qualified domestic relations order as defined by the Code. Unless the Committee determines otherwise, Stock Option may be exercised only by the optionee or grantee thereof; by his or her Family Member if
such person has acquired the Stock Option by gift or qualified domestic relations order; by the executor or administrator of the estate of any of the foregoing or any person to whom the Option is transferred by will or the laws of descent and
distribution; or by the guardian or legal representative of any of the foregoing; provided that Incentive Stock Options may be exercised by any Family Member, guardian or legal representative only if permitted by the Code and any regulations
thereunder. All provisions of this Plan shall in any event continue to apply to any Stock Option or Restricted Stock granted under the Plan and transferred as permitted by this Section 11.2, and any transferee of any such Stock Option or Restricted
Stock shall be bound by all provisions of this Plan as and to the same extent as the applicable original grantee. 
  
 Section 11.3 Listing, Registration and Qualification. If the Committee determines that the listing, registration or qualification upon any securities exchange or
under any law of Shares subject to any Stock Option or Restricted Stock grant is necessary or desirable as a condition of, or in connection with, the granting of same or the issue or purchase of Shares thereunder, no such Stock Option may be
exercised in whole or in part, no such performance award may be paid out, and no Shares may be issued, unless such listing, registration or qualification is effected free of any conditions not acceptable to the Committee. 
  
 Section 11.4 Transfer of Employee. The transfer of an employee from the Company to a
Subsidiary, from a Subsidiary to the Company, or from one Subsidiary to another shall not be considered a termination of employment; nor shall it be considered a termination of employment if an employee is placed on military or sick leave or such
other leave of absence which is considered by the Committee as continuing intact the employment relationship. 
  
 Section 11.5 Adjustments. 
  
 11.5.1 In the event of a reorganization, recapitalization, stock split, stock dividend, combination of shares, merger, consolidation, distribution of assets, or any other change in the corporate structure or shares of the Company, the
Committee shall make such adjustment as it deems appropriate in the number and kind of Shares or other property available for issuance under the Plan (including, without limitation, the total number of Shares available for issuance under the Plan
pursuant to Section 3.2), in the number and kind of Stock Options covered by grants previously made under the Plan, and in the exercise price of outstanding Stock 
  

 18 

 Options. Any such adjustment shall be final, conclusive and binding for all purposes of the Plan. In the event of any
merger, consolidation or other reorganization in which the Company is not the surviving or continuing corporation or in which a Change in Control is to occur, all of the Company’s obligations regarding Stock Options and Restricted Stock that
were granted hereunder and that are outstanding on the date of such event shall, on such terms as may be approved by the Committee prior to such event, be assumed by the surviving or continuing corporation or canceled in exchange for property
(including cash). 
  
 11.5.2 Without limitation of the foregoing,
in connection with any transaction of the type specified by clause (ii) of the definition of a Change in Control in Section 2(c), the Committee may, in its discretion, (i) cancel any or all outstanding options under the Plan in consideration for
payment to the holders thereof of an amount equal to the portion of the consideration that would have been payable to such holders pursuant to such transaction if their options had been fully exercised immediately prior to such transaction, less the
aggregate exercise price that would have been payable therefor, or (ii) if the amount that would have been payable to the option holders pursuant to such transaction if their options had been fully exercised immediately prior thereto would be equal
to or less than the aggregate exercise price that would have been payable therefor, cancel any or all such options for no consideration or payment of any kind. Payment of any amount payable pursuant to the preceding sentence may be made in cash or,
in the event that the consideration to be received in such transaction includes securities or other property, in cash and/or securities or other property in the Committee’s discretion. 
  
 Section 11.6 Amendment and Termination of the Plan. The Board of Directors or the
Committee, without approval of the stockholders, may amend or terminate the Plan, except that no amendment shall become effective without prior approval of the stockholders of the Company if stockholder approval would be required by applicable law
or regulations, including if required for continued compliance with the performance-based compensation exception of Section 162(m) of the Code or any successor thereto, under the provisions of Section 422 of the Code or any successor thereto, or by
any listing requirement of the principal stock exchange on which the Common Stock is then listed. 
  
 Section 11.7 Amendment or Substitution of Awards under the Plan. The terms of any outstanding award under the Plan may be amended from time to time by the Committee in its discretion in any manner that it deems
appropriate (including, but not limited to, acceleration of the date of exercise of any award and/or payments thereunder or of the date of lapse of restrictions on Shares); provided that, except as otherwise provided in Section 11.5, no such
amendment shall adversely affect in a material manner any right of a participant under the award without his or her written consent, and provided further that the Committee shall not reduce the exercise price of any Stock Options awarded under the
Plan without approval of the stockholders of the Company. The Committee may, in its discretion, permit holders of awards under the Plan to surrender outstanding awards in order to exercise or realize rights under other awards, or in exchange for the
grant of new awards, or require holders of awards to surrender outstanding awards as a condition precedent to the grant of new awards under the Plan. 
  
 Section 11.8 Commencement Date; Termination Date. The date of commencement of the Plan shall be December 12, 2003. Unless previously terminated upon the adoption
of a 
  

 19 

 resolution of the Board terminating the Plan, the Plan shall terminate at the close of business on December 12, 2013 (the
“Termination Date”). No termination of the Plan shall materially and adversely affect any of the rights or obligations of any person, without his or her written consent, under any grant of options or other incentives theretofore
granted under the Plan. 
  
 Section 11.9 Severability. Whenever possible,
each provision of the Plan shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of the Plan is held to be prohibited by or invalid under applicable law, such provision shall be ineffective only
to the extent of such prohibition or invalidity, without invalidating the remainder of the Plan. 
  
 Section 11.10 Governing Law. The Plan shall be governed by the corporate laws of the State of Delaware, without giving effect to any choice of law provisions that might otherwise refer construction or
interpretation of the Plan to the substantive law of another jurisdiction. 
  

 20

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