Document:

Exhibit 4.01

 

SECOND AMENDMENT TO RIGHTS AGREEMENT

 

This SECOND AMENDMENT TO RIGHTS AGREEMENT (this “Amendment”) is made
and entered into as of May 10, 2005 by and between Worldwide Restaurant
Concepts, Inc. (formerly Sizzler International, Inc.), a Delaware
corporation (the “Company”), and American Stock Transfer And Trust Company, a
New York banking corporation (the “Rights Agent”).  Except as otherwise provided herein, all
capitalized terms used herein shall have the meanings ascribed thereto in the
Rights Agreement (as defined below).

 

R  E  C  I
T  A  L  S

 

WHEREAS, the Company and the Rights Agent are parties to a Rights
Agreement, dated as of January 22, 2001, as amended on April 30, 2002
(as amended, the “Rights Agreement”);

 

WHEREAS, pursuant to Section 27(a) of the Rights Agreement,
prior to earliest of (i) the date of the first Section 11(a)(ii) Event,
(ii) the date of the first Section 13(a) Event, (iii) the
Redemption Date and (iv) the Expiration Date, the Board of Directors of
the Company (the “Board”) may amend any provision of the Rights Agreement
without approval of any holders of Rights, and may direct the Rights Agent to
so amend the Rights Agreement; and

 

WHEREAS, none of the events specified above has yet occurred and,
subject to and in accordance with the terms of this Amendment, the Company and
the Rights Agent desire to amend the Rights Agreement in certain respects, as
more particularly set forth below, and the Board has approved such amendments.

 

A  G  R  E
E  M  E  N  T

 

NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the undersigned hereby agree to
modify the Rights Agreement as set forth below.

 

1.                                       Amendments.

 

(a)                                  Section 1
of the Rights Agreement, with respect to the definition of “Acquiring Person,”
shall be amended to delete the word “or” which appears between subclauses (v) and
(vi) of such definition.  Section 1(a) shall
be further amended by adding the following language after the end of subclause (vi) in
the definition of “Acquiring Person”:

 

“or (vii) Pacific Equity Partners Pty Limited (“PEP”), Aus Bidco Pty
Limited (“Aus Bidco”), US Mergeco, Inc. (“Mergeco”) and any of their
respective Affiliates if any such parties become the Beneficial Owner of Voting
Shares as a result of the transactions contemplated by the Agreement and Plan
of Merger, dated as of April 28, 2005, by and among the Company, Aus Bidco
and Mergeco, as the same may be amended with the approval of the Company.”

 

 

(b)                                 Section 1
of the Rights Agreement, with respect to the definition of “Expiration Date,”
shall be deleted in its entirety and replaced with the following definition of “Expiration
Date”:

 

““Expiration Date” shall mean the earlier of (i) the fifth
anniversary of the date of this Agreement and (ii) the time at which a
merger certificate is filed with the Secretary of State of the State of
Delaware as contemplated by the Agreement and Plan of Merger, dated as of April 28,
2005, by and among the Company, Aus Bidco and Mergeco, as the same may be amended
with the approval of the Company.”

 

(b)                                 Section 3(a) of
the Rights Agreement shall be amended by adding the following language at the
end of Section 3(a):

 

“; provided, however, that for avoidance of any doubt,
no Distribution Date shall be deemed to have occurred as a result of the
transactions contemplated by the Agreement and Plan of Merger, dated as of April 28,
2005, by and among the Company, Aus Bidco and Mergeco, as the same may be
amended with the approval of the Company.”

 

(c)                                  Section 11(a)(ii) of
the Rights Agreement shall be amended by adding the following language at the
end of the first sentence of Section 11(a)(ii):

 

“; provided, however, that for avoidance of any doubt,
no Section 11(a)(ii) Event shall be deemed to have occurred as a result
of the transactions contemplated by the Agreement and Plan of Merger, dated as
of April 28, 2005, by and among the Company, Aus Bidco and Mergeco, as the
same may be amended with the approval of the Company.”

 

(d)                                 Section 13(a) of
the Rights Agreement shall be amended by adding the following language at the
end of

Section 13(a):

 

“; provided, however, that for avoidance of any doubt,
no Section 13(a) Event shall be deemed to have occurred as a result
of the transactions contemplated by the Agreement and Plan of Merger, dated as
of April 28, 2005, by and among the Company, Aus Bidco and Mergeco, as the
same may be amended with the approval of the Company.”

 

2.                                       Confirmation
of the Rights Agreement.  Except as
amended or modified hereby, all terms, covenants and conditions of the Rights
Agreement as heretofore in effect shall remain in full force and effect and are
hereby ratified and confirmed in all respects.

 

3.                                       Governing
Law.  This Amendment shall be
governed by and constituted in accordance with the laws of the State of
Delaware applicable to contracts to be made and performed entirely within such
State.

 

4.                                       Counterparts.  This Amendment may be executed in any number
of counterparts, each of which when executed and delivered shall be deemed to
be an original and all such counterparts together, shall constitute one and the
same instrument.

 

2

 

IN WITNESS WHEREOF, the parties hereto have executed this Amendment as
of the date first set forth above.

 

 

	
   

  	
  WORLDWIDE RESTAURANT CONCEPTS,

  INC (formerly SIZZLER INTERNATIONAL,

  INC.)

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Michael Green

  	
   

  
	
   

  	
  Name:

  	
  Michael
  Green

  
	
   

  	
  Title:

  	
  Vice
  President and Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  AMERICAN STOCK TRANSFER AND

  TRUST COMPANY, as Rights Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Joseph Wolf

  	
   

  
	
   

  	
  Name:

  	
  Joseph
  Wolf

  
	
   

  	
  Title:

  	
  Vice
  PresidentExhibit 10.1

 

Stock
Option Grant

 

1.                                       Grant
of Option

 

Advanced Magnetics, Inc., a Delaware
corporation (the “Company”), hereby grants to           
(the “Employee”), an option to purchase         
shares of Common Stock, $.01 par value per share, of the Company as
hereinafter set forth (the “Option”), pursuant and subject to the terms and
provisions of the Company’s 2000 Stock Plan
(the “Plan”).  The date of grant of this
Option is [date of grant].

 

All terms which are defined in the Plan shall
have the same meanings herein.

 

2.                                       Vesting
of Option

 

This Option shall be exercisable in
cumulative installations, as follows:

 

	
  Date Exercised

  	
   

  	
  Number of Shares Exercisable

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  On or before
  date of grant

  	
   

  	
  -0-

  	
   

  
	
  One year
  from date of grant

  	
   

  	
  [  ]

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Two years from
  date of grant

  	
   

  	
  [  ]

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Three years
  from date of grant

  	
   

  	
  [  ]

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Four years
  from date of grant

  	
   

  	
  [  ]

  	
   

  

 

3.                                       Term
of Option

 

This Option shall terminate
in ten (10) years
on [date of grant plus 10].

 

4.                                       Exercise
Price

 

The exercise price
of this Option shall be          dollars and         cents ($    )
per share.

 

5.                                       Exercise
and Payment

 

(a)                                  Method
of Payment.    This Option shall be
exercisable by delivery to the Company of written notice of exercise,
specifying the number of shares for which this Option is being exercised
(subject to Section 2 hereof), together with payment to the Company for
the total exercise price thereof in cash, by check or, subject to the Company’s
approval, by Common Stock of the Company owned by the Employee for more than
six (6) months, or by some combination thereof.

 

(b)                                 Valuation
of Shares Tendered in Payment of Purchase Price.    For the purposes hereof, the fair market
value of any share of the Company’s Common Stock which may be delivered to the
Company in exercise of this Option shall be determined in good faith by the
Board of Directors of the Company, or, in the absence of such determination,
shall be equal to the closing price of a share of the Company’s Common Stock as
reported on the American Stock Exchange on the date of exercise of this Option.

 

 

(c)                                  Delivery
of Shares Tendered in Payment of Purchase Price.    If the Company permits the Employee to
exercise Options by delivery of shares of Common Stock of the Company, the
certificate or certificates representing the shares of Common Stock of the
Company to be delivered shall be duly executed in blank by the Employee or
shall be accompanied by a stock power duly executed in blank suitable for
purposes of transferring such shares to the Company.  Fractional shares of Common Stock of the
Company will not be accepted in payment of the purchase price of shares
acquired upon exercise of this Option.

 

(d)                                 Use
of Statutory Option Stock.    Without
derogating from the foregoing, “statutory option stock” (as defined below) may
be tendered in payment of the exercise price of this Option even if the stock
to be so tendered has not, at the time of tender, been held by the Employee for
the applicable minimum statutory holding period required to receive the tax
benefits afforded under Section 421(a) of the Code with respect to
such stock.  The Employee acknowledges
that the tender of such “statutory option stock” may have adverse tax
consequences to the Employee.  As used
above, the term “statutory option stock” means stock acquired through the
exercise of a qualified stock option, incentive stock option, restricted stock
option or an option granted under an employee stock purchase plan.  The tender of statutory option stock in
payment of the exercise price of this Option shall be accompanied by written
representation (in form satisfactory to the Company) stating whether such stock
has been held by the Employee for the applicable minimum statutory holding
period.

 

6.                                       Effect
of Termination of Employment or Death

 

This Option shall not be assignable or
transferable either voluntarily or by operation of law, except as set forth in
this Section 6.

 

In the event that the Employee during his or
her lifetime ceases to be an employee of the Company or of any subsidiary for
any reason, other than death or disability, any unexercised portion of this
Option which was otherwise exercisable on the date of termination of employment
shall expire unless exercised within three months of that date, but in no event
after the expiration of the term hereof.

 

In the event of the death or disability of
the Employee (i) while an employee of the Company or any subsidiary, or (ii) during
the three-month period following termination of his or her employment for any
reason other than death or disability, this Option shall be exercisable for the
number of shares otherwise exercisable on the date of death or disability, by
the Employee or his or her personal representatives, heirs or legatees, as the
case may be, at any time prior to the expiration of one (1) year from the
date of the death or disability of the Employee, but in no event after the
expiration of the term hereof.

 

7.                                       Employment

 

Nothing contained in this Option or in the
Plan shall be construed as giving the Employee any right to be retained in the
employ of the Company or any of its subsidiaries.

 

8.                                       Withholding
Taxes

 

The Employee acknowledges and agrees that the
Company has the right to deduct from payments of any kind otherwise due to the
Employee any federal, state or local taxes of any kind required by law to be
withheld with respect to exercise of this Option.

 

9.                                       Plan
Provisions

 

Except as
otherwise expressly provided herein, this Option and the rights of the Employee
hereunder shall be subject to and governed by the terms and provisions of the
Plan, including without limitation the provisions of Section 4 thereof.

 

 

10.                                 Employee
Representation; Stock Certificate Legend

 

The Employee hereby represents that he or she
has received and read the Prospectus filed with the Securities and Exchange
Commission as a part of the Registration Statement on Form S-8,
which registered the shares under the Plan.

 

If the Employee is an “affiliate” of the
Company (as defined in Rule 144 promulgated under the Securities Act of
1933), all stock certificates representing shares of Common Stock issued to
such Employee pursuant to this Option shall have affixed thereto legends
substantially in the following form:

 

“The shares represented by this certificate
have not been registered under the Securities Act of 1933, as amended (the “Act”)
and may not be sold, transferred or assigned unless such shares are registered
under the Act or an opinion of counsel, satisfactory to the corporation, is
obtained to the effect that such sale, transfer or assignment is exempt from
the registration requirements of the Act.”

 

11.                                 Notice

 

Any notice required to be given under the
terms of this Option shall be properly addressed as follows:  to the Company at its principal executive
offices, and to the Employee at his or her address set forth below, or at such
other address as either of such parties may hereafter designate in writing to
the other.

 

12.                                 Qualification
under Section 422

 

It is understood and intended that this
Option shall qualify as an “incentive stock option” as defined in Section 422
of the Internal Revenue Code. 
Accordingly, the Employee understands that in order to obtain the
benefits of an incentive stock option under Section 421 of the Code, no
sale or other disposition may be made of any shares acquired upon exercise of
this Option within the one (1) year period beginning on the day after the
day of the transfer of such shares to him or her, nor within the two (2) year
period beginning on the day after the grant of this Option.  If the Employee intends to dispose or does
dispose (whether by sale, exchange, gift, transfer or otherwise) of any such
shares within said periods, he or she will notify the Company within thirty
(30) days after such disposition.

 

13.                                 Enforceability

 

This Option shall be binding upon the Employee,
his or her estate, and his or her personal representatives and beneficiaries.

 

14.                                 Effective
Date

 

The effective date of this Option is the date
of grant ([date of grant]).

 

[Remainder of page intentionally
left blank.]

 

 

IN WITNESS WHEREOF, this Option has been executed by a duly authorized
officer of the Company as of the effective date.

 

 

	
   

  	
   

  	
  Advanced Magnetics, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
    Michael N. Avallone

  
	
   

  	
   

  	
   

  	
    Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
  Employee’s Acceptance:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  The undersigned hereby accepts this Option
  and agrees

  to the terms and provisions set forth in this Option and in

  the Plan (a copy of which has been delivered to him/her).

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Signature of Employee)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Print Name of Employee)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

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