Document:

Exhibit 10.1

 

EXECUTION COPY

 

FOURTH AMENDMENT
TO AMENDED AND RESTATED CREDIT AGREEMENT

 

This FOURTH AMENDMENT TO AMENDED AND RESTATED CREDIT
AGREEMENT (this “Amendment”)
is entered into effective as of September 19, 2005 (the “Amendment Effective Date”),
among ENBRIDGE ENERGY PARTNERS, L.P., a Delaware limited partnership, as
borrower (the “Borrower”),
the financial institutions parties to the Credit Agreement hereinafter
referenced (collectively, the “Existing  Lenders”), each New Lender (hereinafter defined) and
BANK OF AMERICA, N.A., as administrative agent (in such capacity, the “Administrative Agent”)
and as L/C Issuer (in such capacity, the “L/C Issuer”). 
As used herein, the term “New Lender” means each financial institution
that is named as a Lender on the signature pages hereto that is not an
Existing Lender and the term “Lenders” means, collectively, the New Lenders and the
Existing Lenders.

 

WHEREAS, the Borrower, the Existing Lenders, the
Administrative Agent, and the other agents named therein are parties to that
certain Amended and Restated Credit Agreement dated as of January 24,
2003, as amended by that certain First Amendment to Amended and Restated Credit
Agreement dated as of January 12, 2004, that certain Second Amendment to
Amended and Restated Credit Agreement dated as of April 26, 2004, and that
certain Third Amendment to Amended and Restated Credit Agreement dated as of April 14,
2005  (as amended, the “Credit Agreement”);

 

WHEREAS, the Borrower has requested that the Credit
Agreement be further amended and modified to effect the matters described in Section 2 below.

 

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

 

SECTION 1.           Definitions.  Unless otherwise defined in this
Amendment, terms used in this Amendment which are defined in the Credit
Agreement shall have the meanings assigned to such terms in the Credit
Agreement.  The interpretive provisions
set forth in Section 1.02 of
the Credit Agreement shall apply to this Amendment.

 

SECTION 2.           Amendments to the Credit Agreement.  Subject to
satisfaction of the conditions precedent set forth in Section 3 of
this Amendment, effective as of the Amendment Effective Date, the Credit Agreement
is hereby amended as follows:

 

(a)           The definition of “Applicable Rate” set forth
in Section 1.01 of the
Credit Agreement is hereby amended by deleting the chart set forth therein and
replacing it with the following:

 

Applicable
Rate

 

	
  Pricing

  Level

  	
   

  	
  Debt Ratings

  S&P/Moody’s

  	
   

  	
  Facility

  Fee Rate

  	
   

  	
  Applicable Rate for

  Eurodollar Loans

  and Applicable Rate

  for Letters of Credit

  	
   

  	
  Applicable

  Rate for

  Base Rate

  Loans

  	
   

  	
  Utilization

  Fee Rate

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  A/A2 or higher

  	
   

  	
  .060

  	
  %

  	
  .170

  	
  %

  	
  -0-

  	
   

  	
  .100

  	
  %

  
	
  2

  	
   

  	
  A-/A3

  	
   

  	
  .065

  	
  %

  	
  .210

  	
  %

  	
  -0-

  	
   

  	
  .100

  	
  %

  
	
  3

  	
   

  	
  BBB+/Baa1

  	
   

  	
  .080

  	
  %

  	
  .270

  	
  %

  	
  -0-

  	
   

  	
  .100

  	
  %

  
	
  4

  	
   

  	
  BBB/Baa2

  	
   

  	
  .100

  	
  %

  	
  .350

  	
  %

  	
  -0-

  	
   

  	
  .100

  	
  %

  
	
  5

  	
   

  	
  BBB-/Baa3

  	
   

  	
  .125

  	
  %

  	
  .500

  	
  %

  	
  -0-

  	
   

  	
  .100

  	
  %

  
	
  6

  	
   

  	
  Lower than BBB-/Baa3 or unrated

  	
   

  	
  .175

  	
  %

  	
  .575

  	
  %

  	
  -0-

  	
   

  	
  .100

  	
  %

  

 

 

(b)           The definition of “Excess Swap Termination Value”
set forth in Section 1.01 of
the Credit Agreement is hereby amended by deleting the first three words of
clause (i) (“all Swap Contracts”) and inserting the following in lieu
thereof:  “all Swap Contracts (other than
EPRM Swap Contracts)”.

 

(c)           The definition of “Letter of Credit Sublimit”
set forth in Section 1.01 of
the Credit Agreement is hereby amended by replacing the term “$175,000,000” set
forth therein with the term “$300,000,000”.

 

(d)           The following definition is hereby added to Section 1.01 of the Credit Agreement:

 

“Acquisition Period” means
the period beginning with the date of payment of the purchase price for a
Specified Acquisition (the “Acquisition Closing Date”) and
continuing through the earliest of (a) the last day of the second fiscal
quarter following the quarter in which the Acquisition Closing Date occurs, (b) 
the date designated by the Borrower as the termination date of such Acquisition
Period, or (c) the Quarter End Date on which the Borrower is in compliance
with Section 7.13 as
such compliance is determined as if such period was not the Acquisition
Period.  As used in this definition, “Specified Acquisition”
means any one or more transactions (a) consummated during a consecutive 9-month
period pursuant to which the Borrower or one or more of its Subsidiaries, or
any combination of the foregoing, directly or indirectly, whether in the form
of capital expenditure, an investment, a merger, a consolidation, an
amalgamation or otherwise and whether through a solicitation of tender of
equity interests, one or more negotiated block, market, private or other
transactions, or any combination of the foregoing, acquires for an aggregate
purchase price of not less than $50,000,000 (i) all or substantially all
of the business or assets of any other Person or operating division or business
unit of any other Person or (ii) more than 50% of the equity interests in
any other Person and (b) designated by the Borrower to the Administrative
Agent as a “Specified Acquisition” (such designation may be made at any time
during an Acquisition Period that began on the Acquisition Closing Date for
such Specified Acquisition); provided that following a designation of a
Specified Acquisition, the Borrower may not designate a subsequent Specified
Acquisition unless, after the end of the most recent Acquisition Period there
shall have occurred at least one Quarter End Date on which the Borrower is in
compliance with Section 7.13, as such
compliance is determined as if such period was not an Acquisition Period.  As used in this definition, “Quarter End Date”
means the last date of a fiscal quarter.

 

(e)           New definitions of “EPRM” and “EPRM Swap
Contracts” are hereby added to Section 1.01
of the Credit Agreement as follows:

 

“EPRM” means Enbridge
Partners Risk Management, L.P., a Delaware limited partnership, and a
Wholly-Owned Subsidiary.

 

“EPRM Swap Contracts” means
Swap Contracts to which EPRM is a counterparty, provided that (a) no
other Subsidiary of the Borrower is a counterparty thereto or has Guarantee
Obligations with respect thereto, (b) EPRM engages in no business other
than the
entry into Swap Contracts and related documents, instruments and agreements,
and the performance of obligations and duties, the taken of actions, and the
exercise of rights, privileges, interests or benefits under and incidental
thereto, and (c) EPRM’s assets consist solely of Swap Contracts and
related documents, instruments and agreements, and rights, privileges,
interests and benefits thereunder, and other assets related to, or needed or
needful for, the performance of obligations, taking of actions or exercise of
rights, privileges, interests or benefits thereunder or arising under, or in
connection with, revenues and operations with respect thereto.

 

2

 

(f)            Section 2.10(c) of the Credit Agreement (Other Fees) is
hereby amended by (i) replacing the date “December 16, 2002” set
forth in the first sentence thereof with the date “September 16, 2005” and
(ii) deleting the last sentence thereof.

 

(g)           Section 7.13 of the Credit Agreement (Consolidated Leverage
Ratio) is hereby amended by replacing clauses
(1), (2) and (3) thereof with the following:  “(1) during an Acquisition Period, 5.50
to 1.00, and (2) during any period other than an Acquisition Period as
follows: (A) during the period from April 1, 2004 to and including December 31,
2006, 5.25 to 1.00, and (B) thereafter, 5.00 to 1.00;”

 

(h)           Section 7.17 of the Credit Agreement (Swap
Contracts) is hereby amended by replacing the phrase “property of the person
entering into such Swap Contract” with the phrase “property of the Borrower or
a Subsidiary of the Borrower”, so that Section 7.17 reads as follows:

 

7.17        Swap Contracts.  The
Borrower shall not, nor shall its permit any Subsidiary to, enter into or
permit to exist any obligations under any Swap Contracts for purposes of speculation.

 

(i)            (i) The Commitments under the Credit Agreement
are hereby increased from $600,000,000 to $800,000,000, (ii) each New
Lender is a Lender under the Credit Agreement with all rights, powers,
obligations, duties and privileges attendant thereto, and (iii) each New
Lender’s and each Existing Lender’s Commitment is as set forth on Schedule 2.01 attached
hereto.

 

(j)            Schedule 2.01 attached to the Credit Agreement (Commitments
and Pro Rata Shares) is hereby amended in its entirety to read as set forth
on Schedule 2.01 attached
hereto.

 

(k)           Exhibit C attached to the Credit Agreement (Form of
Compliance Certificate) is hereby amended as follows:  the chart relating to the maximum permitted
leverage ratio set forth in Schedule 2 thereof under the heading entitled “Section 7.13
– Leverage Ratio” is hereby replaced in its entirety with the following:

 

 

	
   

  	
   

  	
  Maximum Leverage

  Ratio

  	
   

  
	
  During an Acquisition Period*:

  	
   

  	
  5.50:1.00

  	
   

  
	
  *If
  a Specified Acquisition has been or is hereby designated by the Borrower and
  the corresponding Acquisition Period is in effect as of the Statement Date, a
  separate sheet of paper is to be attached to this Compliance Certificate
  setting forth the corresponding Acquisition Closing Date (and if such
  Acquisition Period has terminated, the last day of such Acquisition Period),
  and describing the transactions that constitute such Specified Acquisition.
  Check the applicable line:

  	
   

  	
   

  	
   

  
	
  •      The
  Borrower has previously designated such Specified Acquisition; or

  	
   

  	
   

  	
   

  
	
  •      The
  Borrower hereby designates such Specified Acquisition.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  During any Period other than an Acquisition Period:

  	
   

  	
   

  	
   

  
	
  April 1, 2004
  through and including December 31, 2006

  	
   

  	
  5.25:1.00

  	
   

  
	
  Thereafter

  	
   

  	
  5.00:1.00

  	
   

  

 

3

 

SECTION 3.           Conditions of Effectiveness.  The
amendments to the Credit Agreement set forth in Section 2 of this Amendment shall
be effective on the Amendment Effective Date, provided that the Administrative
Agent shall have received the following:

 

(a)           a counterpart of this Amendment executed by each of
the parties hereto (which may be by telecopy transmission);

 

(b)           to the extent requested by any Lender, a Note in a
maximum principal amount equal to such Lender’s Commitment, which Note, to the
extent delivered in favor of an Existing Lender, shall be a renewal and
replacement of, and shall be given in substitution and exchange for, but not in
payment of, those Notes held by such Existing Lender prior to the date hereof;

 

(c)           such certificates of resolutions or other action,
incumbency certificates and/or other certificates of a Responsible Officer as
the Administrative Agent may reasonably require to establish the identities of
and verify the authority and capacity of each Responsible Officer thereof
authorized to act as a Responsible Officer in connection with this Amendment;

 

(d)           a certificate from the appropriate governmental
authority in the Borrower’s state of organization evidencing that the Borrower
is in good standing, and a certificate of a Responsible Officer certifying that
no amendments have been made to the Borrower’s Organization Documents since January 24,
2003, or if such amendments have been made, certifying a copy of such
amendments;

 

(e)           a certificate of a Responsible Officer certifying
that there has been no event or circumstance since the date of the financial
statements dated as of December 31, 2004 delivered pursuant to Section 6.01(a) of the Credit
Agreement which has or could reasonably be expected to have a Material Adverse
Effect;

 

(f)            an opinion of counsel to the Borrower with respect
to the Credit Agreement as amended, substantially in the form attached as Exhibit E to the Credit Agreement;

 

(g)           all upfront fees, other fees, and expenses that are
required to be paid by the Borrower concurrently with the Amendment Effective
Date;   and

 

(h)           such other assurances, certificates, documents,
consents or opinions as the Administrative Agent, the L/C Issuer, or the
Required Lenders reasonably may require and timely request.

 

SECTION 4.           Qualifying Subordinated Debt.  The
Borrower represents and warrants that, as of the Amendment Effective Date, the
outstanding principal balance of Qualifying Subordinated Debt is $142,100,000
plus interest which has accrued since December 31, 2004 and been added to
principal, and the holder of such Qualifying Subordinated Debt is Enbridge
Hungary Liquidity Management Limited Liability Company (“Enbridge Hungary”).  The Borrower agrees to deliver, within [30]
days after the Amendment Effective Date, an acknowledgement in form reasonably
satisfactory to the Administrative Agent, executed on behalf of such holder,
that the subordination agreement executed by Enbridge Hungary for the benefit
of holders of Obligations owing under the Credit Agreement remains in full
force and effect.

 

SECTION 5.           Acknowledgment and Ratification.  As a
material inducement to the Administrative Agent and the Lenders to execute and
deliver this Amendment, the Borrower agrees and acknowledges that the
execution, delivery, and performance of this Amendment shall, except as
expressly provided herein, in no way release, diminish, impair, reduce, or
otherwise affect the obligations of the Borrower under the Loan Documents,
which Loan Documents shall remain in full force and effect.

 

4

 

SECTION 6.           Borrower’s
Representations and Warranties.  As a material inducement to the
Administrative Agent and the Lenders to execute and deliver this Amendment, the
Borrower represents and warrants to the Lenders (with the knowledge and intent that
the Lenders are relying upon the same in entering into this Amendment) that as
of the Amendment Effective Date and as of the date of its execution of this
Amendment, that:

 

(a)           This Amendment, the Credit Agreement as amended
hereby, and each other Loan Document have been duly authorized, executed and
delivered by the Borrower and constitute its legal, valid and binding
obligations enforceable against it in accordance with their respective terms
(subject, as to the enforcement of remedies, to applicable bankruptcy,
reorganization, insolvency, moratorium and similar laws affecting creditors’
rights generally and to general principles of equity).

 

(b)           There has been no event or circumstance since the
date of the financial statements dated as of December 31, 2004 delivered
pursuant to Section 6.01(a) of
the Credit Agreement which has or could reasonably be expected to have a
Material Adverse Effect.  The
representations and warranties set forth in Article V
of the Credit Agreement are true and correct in all material respects on and as
of the Amendment Effective Date, after giving effect to this Amendment, as if
made on and as of the Amendment Effective Date except to the extent such
representations and warranties relate solely to an earlier date, in which case,
they shall be true and correct as of such date.

 

(c)           As of the date hereof, at the time of and after
giving effect to this Amendment, no Default or Event of Default has occurred
and is continuing.

 

(d)           No approval, consent, exemption, authorization or
other action by, or notice to, or filing with, any Governmental Authority is
required to be obtained or made by the Borrower by any material statutory law
or regulation applicable to it as a condition to the execution, delivery or
performance by, or enforcement against, the Borrower of this Amendment.  The execution, delivery and performance by the
Borrower of this Amendment has been duly authorized by all necessary corporate
or other organizational action, and does not and will not (i) violate the
terms of any of the Borrower’s Organization Documents, (ii) result in any
breach of, constitute a default under, or require pursuant to the express
provisions thereof, the creation of any consensual Lien on the properties of
the Borrower under, any Contractual Obligation to which the Borrower is a party
or any order, injunction, writ or decree of any Governmental Authority to which
the Borrower or its property is subject, or (iii) violate any Law, in each
case with respect to the preceding clauses (i) through (iii), which would
reasonably be expected to have a Material Adverse Effect.

 

SECTION 7.           Administrative Agent, L/C Issuer and Lenders Make No
Representations or Warranties. None
of the Administrative Agent, the L/C Issuer nor any Lender (a) makes any
representation or warranty nor assumes any responsibility with respect to any
statements, warranties, or representations made in or in connection with the
Loan Documents or the execution, legality, validity, enforceability,
genuineness, sufficiency, or value of the Credit Agreement, the Loan Documents,
or any other instrument or document furnished pursuant thereto, or (b) makes
any representation or warranty nor assumes any responsibility with respect to
the financial condition of the Borrower or any other Person or the performance
or observance by such Persons of any of their obligations under the Loan
Documents, or any other instrument or document furnished pursuant thereto.

 

SECTION 8.           New Lenders’ Representations, Warranties, Covenants,
and Agreements.  Each New Lender (a) confirms that it has
received a copy of the Credit Agreement and such other documents and
information as it has deemed appropriate to make its own credit analysis and
decision to enter into this Amendment and become a Lender party to the Credit
Agreement, (b) agrees that it will, independently and without reliance
upon the Administrative Agent or any other Lender and based on such documents
and information as it shall deem appropriate at the time, continue to make its
own credit decisions in taking or not taking action under the Loan Documents, (c) appoints
or authorizes the

 

5

 

Administrative Agent to take such action on its
behalf and to exercise such powers under the Loan Documents as are delegated by
the terms thereof, together with such powers as are reasonably incidental
thereto, (d) agrees that it will perform in accordance with their terms
all of the obligations which by the terms of the Loan Documents are required to
be performed by it as a Lender, and (e) specifies as its lending office
and address for notices the offices set forth on the administrative details
form provided to the Administrative Agent.

 

SECTION 9.           Costs.  The Borrower agrees to pay the reasonable
Attorney Costs of the Administrative Agent and all other reasonable costs and
expenses of the Administrative Agent in connection with the preparation,
execution and delivery of this Amendment and any other documents executed by
the Borrower in connection herewith.  The
Borrower agrees to pay such amounts within 30 days of receipt of a
corresponding reasonably-detailed statement of related time, charges and other
information.

 

SECTION 10.         Effect of Amendment.

 

(a)           This Amendment (i) except as expressly provided
herein, shall not be deemed to be a consent to the modification or waiver of
any other term or condition of the Credit Agreement or of any of the
instruments or agreements referred to therein and (ii) shall not prejudice
any right or rights which the Administrative Agent or the Lenders may now have
under or in connection with the Credit Agreement, as amended by this
Amendment.  Except as otherwise expressly
provided by this Amendment, all of the terms, conditions and provisions of the
Credit Agreement shall remain the same. 
It is declared and agreed by each of the parties hereto that the Credit
Agreement, as amended hereby, shall continue in full force and effect, and that
this Amendment and such Credit Agreement shall be read and construed as one
instrument.

 

(b)           From and after the Amendment Effective Date, (i) each
reference in the Credit Agreement, including the schedules and exhibits thereto
and the other documents delivered in connection therewith, to the “Credit
Agreement,” “this Agreement,” “hereunder,” “hereof,” “herein,” or words of like
import, shall mean and be a reference to the Credit Agreement as amended
hereby, (ii) each reference in the Credit Agreement, including the
schedules and exhibits thereto and the other documents delivered in connection
therewith, to “$600,000,000” shall be deemed to be and shall be a reference to “$800,000,000”
and (iii) each reference in the Credit Agreement, including the schedules
and exhibits thereto and the other documents delivered in connection therewith,
to “Lenders” shall include each of the New Lenders.

 

SECTION 11.         Existing Loans and Letters of Credit.   As of the
Amendment Effective Date, each Existing Lender shall be deemed to have
assigned, without recourse, to the New Lenders such portion of such Existing
Lender’s Loans and L/C Obligations such that the Pro Rata Share of each Lender
(including each Existing Lender and each New Lender) shall be as set forth on Schedule 2.01 of the Credit Agreement
as amended hereby.  The parties hereto
consent to all reallocations and assignments of Commitments and Outstanding
Amounts effected pursuant to this Amendment, and agree that such reallocations
and assignments shall be deemed effective as if such reallocations and
assignments were evidenced by an Assignment and Acceptance in the form attached
as Exhibit D to the Credit
Agreement.  On the Amendment Effective
Date, the New Lenders and Existing Lenders shall make full cash settlement with
each other either directly or through the Administrative Agent, as the
Administrative Agent may direct or approve, with respect to all assignments and
reallocations as reflected in this Section such that after giving effect
to such settlement each Lender’s (including each Existing Lender’s and each New
Lender’s) Pro Rata Share of the Commitments equals (with customary rounding)
its Pro Rata Share as reflected on Schedule 2.01
to the Credit Agreement as amended hereby of (a) the Outstanding Amount of
all Loans, and (b) the Outstanding Amount of all L/C Obligations.

 

6

 

SECTION 12.         Miscellaneous.  This Amendment shall for all
purposes be construed in accordance with and governed by the laws of the State
of New York and applicable federal law. 
The captions in this Amendment are for convenience of reference only and
shall not define or limit the provisions hereof.  This Amendment may be executed in separate
counterparts, each of which when so executed and delivered shall be an
original, but all of which together shall constitute one instrument.  In proving this Amendment, it shall not be
necessary to produce or account for more than one such counterpart.  This Amendment, and any documents required or
requested to be delivered pursuant to Section 3 hereof, may be delivered
by facsimile transmission of the relevant signature pages hereof and
thereof, as applicable.  This Amendment
shall be a “Loan Document” as defined in the Credit Agreement.

 

SECTION 13.         USA PATRIOT Act Notice.  Each Lender
and the Administrative Agent (for itself and not on behalf of any Lender)
hereby notifies the Borrower that pursuant to the requirements of the USA
Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26,
2001)) (the “Act”), it is required to obtain, verify and record
information that identifies the Borrower, which information includes the name
and address of the Borrower and other information that will allow such Lender
or the Administrative Agent, as applicable, to identify the Borrower in
accordance with the Act.

 

SECTION 14.         Entire Agreement.  THE CREDIT AGREEMENT (AS AMENDED
BY THIS AMENDMENT) AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT
BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS
BETWEEN THE PARTIES.

 

[SIGNATURES
BEGIN ON NEXT PAGE]

 

7

 

IN WITNESS WHEREOF, the parties hereto have caused this
Amendment to be duly executed and delivered by their proper and duly authorized
officers as of the date and year first above written.

 

	
   

  	
  ENBRIDGE ENERGY PARTNERS, L.P.,

  
	
   

  	
  a Delaware limited partnership, as Borrower

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  ENBRIDGE ENERGY MANAGEMENT, L.L.C.,

  
	
   

  	
   

  	
  as delegate of Enbridge Energy Company, Inc.,

  
	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
								

 

[SIGNATURE
PAGE TO FOURTH AMENDMENT TO

AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

	
   

  	
  BANK OF AMERICA, N.A., as Administrative Agent

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A., as a Lender and

  	
   

  
	
   

  	
  L/C Issuer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
							

 

[SIGNATURE
PAGE TO FOURTH AMENDMENT TO

AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

	
   

  	
  BANK OF MONTREAL, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

[SIGNATURE
PAGE TO FOURTH AMENDMENT TO

AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

	
   

  	
  WACHOVIA BANK, NATIONAL ASSOCIATION,

  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

[SIGNATURE
PAGE TO FOURTH AMENDMENT TO

AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

	
   

  	
  ABN AMRO BANK N.V., as a Lender

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

[SIGNATURE
PAGE TO FOURTH AMENDMENT TO

AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

	
   

  	
  UBS LOAN FINANCE LLC, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

[SIGNATURE
PAGE TO FOURTH AMENDMENT TO

AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

	
   

  	
  CITIBANK, N.A., as a Lender

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

[SIGNATURE
PAGE TO FOURTH AMENDMENT TO

AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

	
   

  	
  CIBC INC., as a Lender

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

[SIGNATURE
PAGE TO FOURTH AMENDMENT TO

AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

	
   

  	
  TORONTO DOMINION (TEXAS) LLC, as a

  Lender

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

[SIGNATURE
PAGE TO FOURTH AMENDMENT TO

AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

	
   

  	
  LEHMAN BROTHERS BANK, FSB, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

[SIGNATURE
PAGE TO FOURTH AMENDMENT TO

AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

	
   

  	
  DEUTSCHE BANK AG NEW YORK BRANCH,

  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

[SIGNATURE
PAGE TO FOURTH AMENDMENT TO

AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

	
   

  	
  ROYAL BANK OF CANADA, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

[SIGNATURE
PAGE TO FOURTH AMENDMENT TO

AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

	
   

  	
  SUNTRUST BANK, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

[SIGNATURE
PAGE TO FOURTH AMENDMENT TO

AMENDED AND RESTATED CREDIT AGREEMENT]

 

 

SCHEDULE 2.01

 

COMMITMENTS

AND PRO RATA
SHARES

 

	
  Lender

  	
   

  	
  Commitment

  	
   

  	
  Pro Rata Share

  	
   

  
	
  Bank of America, N.A.

  	
   

  	
  $

  	
  93,300,000

  	
   

  	
  11.662500000

  	
   

  
	
  Bank of Montreal

  	
   

  	
  $

  	
  93,300,000

  	
   

  	
  11.662500000

  	
   

  
	
  Wachovia Bank, National Association

  	
   

  	
  $

  	
  93,300,000

  	
   

  	
  11.662500000

  	
   

  
	
  ABN AMRO Bank N.V.

  	
   

  	
  $

  	
  71,700,000

  	
   

  	
  8.962500000

  	
   

  
	
  UBS Loan Finance LLC

  	
   

  	
  $

  	
  71,700,000

  	
   

  	
  8.962500000

  	
   

  
	
  Citibank, N.A.

  	
   

  	
  $

  	
  70,000,000

  	
   

  	
  8.750000000

  	
   

  
	
  CIBC Inc.

  	
   

  	
  $

  	
  58,300,000

  	
   

  	
  7.287500000

  	
   

  
	
  Toronto Dominion (Texas) LLC

  	
   

  	
  $

  	
  58,300,000

  	
   

  	
  7.287500000

  	
   

  
	
  Lehman Brothers Bank, FSB

  	
   

  	
  $

  	
  50,000,000

  	
   

  	
  6.250000000

  	
   

  
	
  Deutsche Bank AG New York Branch

  	
   

  	
  $

  	
  46,700,000

  	
   

  	
  5.837500000

  	
   

  
	
  Royal Bank of Canada

  	
   

  	
  $

  	
  46,700,000

  	
   

  	
  5.837500000

  	
   

  
	
  SunTrust Bank

  	
   

  	
  $

  	
  46,700,000

  	
   

  	
  5.837500000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total:

  	
   

  	
  $

  	
  800,000,000

  	
   

  	
  100.000000000

  	
  %Exhibit 10.1

 

Appendix B

 

AMERICAN SCIENCE AND ENGINEERING, INC.

 

2005 EQUITY AND INCENTIVE PLAN

 

1.
Purposes of the Plan

 

The
purposes of the American Science and Engineering, Inc. 2005 Equity and
Incentive Plan (the “Plan”) are (i) to
provide long-term incentives and rewards to those employees, officers,
directors, and consultants of American Science and Engineering, Inc. (the
“Company”) and its Affiliates (as defined
below) who are in a position to contribute to the long-term success and growth
of the Company and its Affiliates, (ii) to assist the Company and its
Affiliates in attracting and retaining persons with the requisite experience
and ability, and (iii) to more closely align the interests of such
employees, officers, directors, and consultants with the interests of the
Company’s stockholders.

 

2.
Definitions

 

“Affiliate”
means any business entity in which the Company holds, directly or indirectly,
an equity, profits, or voting interest of 30% or
more, and includes any Subsidiary.

 

“Applicable
Law” means the applicable requirements relating to the administration of equity
compensation plans under Massachusetts
state corporate law, federal and state securities laws, the Code, any stock
exchange or quotation system on which the Common Stock is listed or quoted,
employment laws, and the applicable laws of any foreign jurisdiction where
Awards are or will be granted.

 

“Award”
means any Option, Stock Appreciation Right, Restricted Stock, Restricted Stock
Unit, Cash Award, or Foreign National Award granted under the Plan. Awards may
be granted for services to be rendered or for past services already rendered to
the Company or any Affiliate.

 

“Cash
Award” means an Award granted to a Participant pursuant to Section 10(d) of
the Plan that is payable in cash, and that may be subject to certain terms,
conditions, and restrictions.

 

“Board”
means the Board of Directors of the Company.

 

“Code”
means the Internal Revenue Code of 1986, as amended from time to time, or any
successor law.

 

“Committee”
means one or more committees each comprised of not less than two members of the
Board appointed by the Board to administer the Plan or a specified portion
thereof. To the extent that the Board determines it’s desirable to qualify
Awards granted to Covered Employees under the Plan as “performance-based
compensation” within the meaning of Section 162(m) of the Code, then
each member of the Committee shall be an “outside director” within the meaning
of Section 162(m) of the Code. To the extent that the Board
determines it desirable to qualify Awards granted by the Committee to a
Reporting Person under the Plan as exempt under Rule 16b-3(d)(1) of
the Exchange Act, then each member of the Committee shall be a “non-employee
director” within the meaning of Rule 16b-3.

 

“Common
Stock” or “Stock” means the common stock of the Company.

 

“Company”
means American Science and Engineering, Inc., or any successor
corporation.

 

“Covered
Employee” means a “covered employee” within the meaning of Section 162(m) of
the Code.

 

“Designated
Beneficiary” means the beneficiary designated by a Participant, in a manner
determined by the Committee, to receive amounts due or exercise rights of the
Participant in the event of the

 

B-1

 

Participant’s
death. In the absence of an effective designation by a Participant, “Designated
Beneficiary” means the Participant’s estate.

 

“Disability”
means a total and permanent disability as provided in the long-term disability
plan or policy maintained by the Company or if applicable, most recently
maintained, by the Company or if applicable, an Affiliate, for the Participant,
whether or not such Participant actually receives disability benefits under
such plan or policy. If no long-term disability plan or policy was ever
maintained on behalf of the Participant or if the determination of disability
relates to an Incentive Stock Option or SAR issued in tandem with an Incentive
Stock Option, Disability means permanent and total disability as defined in Section 22(e)(3) of
the Code. In the event of a dispute, the determination whether a Participant is
disabled will be made by the Committee and may be supported by the advice of a
physician competent in the area to which such disability relates.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended from time to time,
or any successor law.

 

“Fair
Market Value” means, with respect to Common Stock or any other property, the
fair market value of such property as determined by the Committee in good faith
or in the manner established by the Committee from time to time.

 

“Foreign
National Award” means an Award granted pursuant to Section 10(f) to a
Participant who is a foreign national or employed or performing services
outside of the United States.

 

“Grant
Date” means the first date on which all necessary corporate action has been
taken to approve the grant of the Award as provided in the Plan, or such later
date as is determined and specified as part of that authorization process.
Notice of the grant shall be provided to the Participant within a reasonable
time after the grant.

 

“Grant
Agreement” means the documentation evidencing an Award as provided in Section 10(b).

 

“Incentive
Stock Option” means an Option intended to qualify as an incentive stock option
and which meets the requirements of Section 422 of the Code.

 

“Nonstatutory
Stock Option” means an Option that is not an Incentive Stock Option.

 

“Option”
means a right to acquire shares of Company Stock upon the payment of an
exercise price that is granted in accordance with Section 6 of the Plan.
An Option may be either an Incentive Stock Option or a Nonstatutory Stock
Option.

 

“Participant”
means a person selected by the Committee to receive an Award under the Plan.

 

“Performance
Goals” means with respect to any Performance Period, one or more performance
goals based on one or more of the following objective criteria established by
the Committee prior to the beginning of such Performance Period or within such
period after the beginning of the Performance Period as shall meet the
requirements to be considered “pre-established objective performance goals” for
purposes of the regulations issued under Section 162(m) of the Code: (i) increases
in the price of the Common Stock, (ii) market share, (iii) sales, (iv) revenue,
(v) return on equity, assets, or capital, (vi) economic profit
(economic value added), (vii) total shareholder return, (viii) costs,
(ix) expenses, (x) margins, (xi) earnings (including EBITDA) or
earnings per share, (xii) cash flow (including adjusted operating cash flow),
(xiii) customer satisfaction, (xiv) operating profit, (xv) net income, (xvi)
research and development, (xvii) product releases, (xviii) manufacturing, or
(xix) any combination of the foregoing, including without limitation, goals
based on any of such measures relative to appropriate peer groups or market
indices. Such Performance Goals may be particular to a Participant or may be
based, in whole or in part, on the performance of the division, department,
line of business, subsidiary, or other business unit,

 

B-2

 

whether
or not legally constituted, in which the Participant works or on the
performance of the Company generally.

 

“Performance
Period” means the period of service designated by the Committee applicable to
an Award subject to Section 10(l) during which the Performance Goals
will be measured.

 

“Reporting
Person” means a person subject to Section 16 of the Exchange Act.

 

“Restricted
Stock” means shares of Common Stock granted to a Participant pursuant to Section 8
of the Plan that may be subject to certain terms, conditions, and restrictions.

 

“Restricted
Stock Unit” means the right granted to a Participant pursuant to Section 9
of the Plan to receive shares of Common Stock (or the equivalent value in cash
or other property if the Committee so provides) in the future that may be
subject to certain terms, conditions, and restrictions.

 

“Service
Provider” means an employee, officer, director or consultant of the Company or
any of its Affiliates.

 

“Stock
Appreciation Right” or “SAR” means a right to acquire cash or shares of Common
Stock granted in accordance with Section 7 of the Plan having a value
equal to the difference between the Fair Market Value on the date of exercise
over the exercise price set forth in the Grant Agreement multiplied by the
number of shares of Common Stock with respect to which the SAR is being
exercised.

 

“Subsidiary”
means any subsidiary corporation as defined in Section 424(f) of the
Code.

 

“Termination
Date” means (i) in the case of an employee, the date that the Committee
determines that the employee-employer relationship between the Company or
Affiliate and such person ceased for any reason, (ii) in the case of a
consultant or non-employee officer, the date that the Committee determines that
the service relationship between the Company or Affiliate and such person
ceased for any reason, and (iii) in the case of a director, the date that
the Committee determines that such person’s service on the Board ceased for any
reason.

 

3.
Administration

 

The
Plan shall be administered by the Committee. Subject to and consistent with the
provisions of the Plan, the Committee shall have the authority and discretion
to: (i) determine which eligible employees, officers, directors, and
consultants will receive Awards, (ii) determine the number of shares of
Common Stock, cash, or other consideration to be covered by each Award, (iii) determine
the terms and conditions of any Award (including Fair Market Value, the
exercise price, the vesting schedule, the term of the Award, and the period
following termination from employment or service during which an Award may be
exercised), (iv) approve forms of Award agreements and other documentation
for use under the Plan, (v) adopt, alter, and repeal administrative rules,
guidelines, and practices governing the operation of the Plan and the
Committee, (vi) interpret the provisions of the Plan and any Award
documentation and remedy any ambiguities, omissions, or inconsistencies
therein, (vii) to modify or amend Awards, or grant waivers of Plan or
Award conditions, and (viii) make all other determinations necessary or
advisable for the administration of the Plan. A majority of the members of the
Committee shall constitute a quorum. The Committee’s decisions, determinations,
and interpretations shall be final and binding on all persons having an
interest in any Award. To the extent permitted by Applicable Law, the Committee
may delegate to one or more executive officers of the Company the power to make
Awards to Participants who are not Reporting Persons and all determinations
under the Plan with respect thereto, provided that the Committee shall fix the
maximum amount of such Awards for all such Participants and a maximum for any
one Participant, and such other features of the Awards as required by
Applicable Law.

 

B-3

 

4.
Eligibility

 

Incentive
Stock Options may be granted only to employees (including officers and
directors who are also employees) of the Company or a Subsidiary. All other
Awards may be granted to employees, officers, directors, and consultants of the
Company or any Affiliate.

 

5.
Stock Available for Awards

 

(a)       Amount.   Subject
to adjustment under Section 5(c), the aggregate number of shares of Common
Stock that may be issued pursuant to Awards granted under the Plan shall be
750,000 shares. Subject to adjustment under Section 5(c), up to 750,000
shares of Common Stock may be issued upon exercise of Incentive Stock Options
granted under the Plan. Shares issued under the Plan may consist in whole or in
part of authorized but unissued shares, or treasury shares, or shares purchased
on the open market. At all times the Company will reserve and keep available a
sufficient number of shares to satisfy the number of shares available for
issuance under the Plan.

 

(b)  Share Counting.   If an Award
granted under the Plan is canceled, terminates, expires, is forfeited, lapses,
or is settled in cash, then the shares subject to such Award (to the extent of
such cancelation, termination, expiration, forfeiture, lapse, or settlement)
shall again be available for issuance pursuant to Awards granted under the
Plan. For purposes of Section 5(a), any shares granted as Options or Stock
Appreciation Rights under the Plan shall be counted against this limit as one
share for every share subject to the Award. Any shares granted as Awards other
than Options or Stock Appreciation Rights shall be counted against the limit
set forth in Section 5(a) as 1.5 shares for every one share subject
to the Award. Any shares tendered in payment of an Option’s exercise price
(whether by attestation or actual delivery), any shares tendered or withheld to
satisfy a tax withholding on an Award, and any shares repurchased by the
Company using Option proceeds shall not be added back, replenish, or increase
the aggregate Plan share limit set forth in Section 5(a).

 

(c)       Adjustment.   In
the event that the Committee determines that any stock dividend, extraordinary
cash dividend, recapitalization, reorganization, merger, consolidation,
split-up, spin-off, combination, exchange of shares, or other transaction
affects the Common Stock such that an adjustment is required in order to
preserve the benefits intended to be provided by the Plan, then the Committee
(subject in the case of Incentive Stock Options to any limitation required
under the Code) shall equitably adjust any or all of (i) the number and
class of shares that may be issued in respect of Awards under the Plan, (ii) the
number and class of shares subject to outstanding Awards, (iii) the number
and class of shares subject to the limit on individual grants under Section 5(d) of
the Plan, and (iv) the exercise price with respect to any of the
foregoing, and if considered appropriate, the Committee may make provision for
a cash payment with respect to an outstanding Award, provided that the number
of shares subject to any Award shall always be a whole number.

 

(d)       Limit on Individual Grants.   The maximum number of shares of Common
Stock subject to all Awards that may be granted under this Plan to any
Participant in the aggregate in any fiscal year of
the Company shall not exceed 250,000 shares, subject to adjustment under Section 5(b).
Notwithstanding the foregoing, during the fiscal year in which a Participant
first becomes an employee of the Company or an Affiliate, the Participant may
be granted Awards covering an additional 250,000 shares of Common Stock,
subject to adjustment under Section 5(b). With respect to any Award
settled in cash that is intended to satisfy the requirements for
“performance-based compensation” (within the meaning of Section 162(m)(4)(C) of
the Code), no more than $2,500,000 may be paid to any one individual with respect
to each year of a Performance Period.

 

B-4

 

6.
Stock Options

 

(a)       Grant of Options.   Subject
to the provisions of the Plan, the Committee may grant Incentive Stock Options
or Nonstatutory Stock Options to a Participant.

 

(b)       Terms and Conditions.   The
Committee shall determine the number of shares of Common Stock subject to each
Option and the exercise price therefor, which shall not be less than 100% of
the Fair Market Value of the Common Stock on the Grant Date. Each Option shall
be exercisable at such times and subject to such terms and conditions as the
Committee may specify in the Grant Agreement or thereafter; provided that (i) no
Option shall be exercisable after the expiration of ten years
from the Option’s Grant Date, and (ii) no Option may be granted with a
reload feature which provides for an automatic grant of additional or
replacement options upon the exercise of an Option. A Participant may exercise
an Option by following such procedures as the Committee or its designees may
specify from time to time. The Committee may impose such conditions with
respect to the exercise of Options, including conditions relating to Applicable
Laws, as it considers necessary or advisable.

 

(c)       Payment.   No
shares shall be delivered pursuant to any exercise of an Option until payment
in full of the exercise price therefor is received by the Company. Except as
otherwise provided by the Committee, such payment may be made in whole or in
part in or pursuant to any of the following methods:  (i) cash, (ii) by actual delivery
or attestation of ownership of shares of Common Stock owned by the Participant,
including vested Restricted Stock, (iii) by retaining shares of Common
Stock otherwise issuable pursuant to the Option, (iv) for consideration
received by the Company under a broker-assisted cashless exercise program
acceptable to the Company, or (v) for such other lawful consideration as
the Committee may determine.

 

(d)  Exercise Period.   When a
Participant’s status as a Service Provider terminates, the Participant’s Option
may be exercised within the period of time specified in the Grant Agreement to
the extent that the Option is vested on the Participant’s Termination Date. In
the absence of a specific period of time set forth in the Grant Agreement, an
Option shall remain exercisable for three (3) months following the date
the Participant ceases to be a Service Provider, but in no event shall the
Option be exercisable after the expiration of the term of such Option. If a Participant’s
status as a Service Provider terminates from death or Disability or the
Participant dies within three (3) months after his Termination Date, then
(unless provided otherwise in the Grant Agreement) the Option shall remain
exercisable for twelve (12) months following the date the Participant ceases to
be a Service Provider, but in no event shall the Option be exercisable after
the expiration of the term of such Option. In no event may the Committee
provide in a Grant Agreement that the period of time for exercising an Option
following a Participant’s Termination Date shall exceed three (3) years.

 

(e) 
Incentive Stock Option Rules.   In addition to the limitations and
conditions that apply generally to Options, the following provisions shall
apply to any Incentive Stock Option. The Committee may grant Incentive Stock
Options only to persons who are employees of the Company or a Subsidiary as of
the Grant Date. The aggregate Fair Market Value (determined as of the Grant
Date) of all shares with respect to which Incentive Stock Options are
exercisable for the first time by a Participant during any calendar year (under
the Plan or any other incentive stock option plan of the Company or any
Subsidiary) shall not exceed $100,000. If the Fair Market Value of shares on
the Grant Date with respect to which Incentive Stock Options are exercisable
for the first time by a Participant during any calendar year exceeds $100,000,
the Options for the first $100,000 worth of shares to become exercisable in
that calendar year will be Incentive Stock Options, and the Options for the
shares with a Fair Market Value in excess of $100,000 that become exercisable
in that calendar year will be Nonstatutory Stock Options. No Incentive Stock
Option shall be granted to any individual who, at the Grant Date, owns stock
possessing more than ten percent (10%) of the total combined voting power of
all classes of stock of the Company or any Subsidiary unless the exercise price
per share of such Option is at least 110% of the Fair Market Value per share at

 

B-5

 

the
Grant Date and the Option expires no later than five (5) years after the
Grant Date. If a Participant sells or otherwise disposes of any shares acquired
pursuant to the exercise of an Incentive Stock Option on or before the later of
(i) the date two (2) years after the Grant Date, and (ii) the
date one year after the exercise of the Incentive Stock Option, the Company may
require the Participant to immediately notify the Company in writing of such
disposition.

 

7.
Stock Appreciation Rights

 

(a)       Grant of SARs.   Subject
to the provisions of the Plan, the Committee may grant SARs to a Participant in
tandem with an Option (at or after the award of the Option), or alone and
unrelated to an Option. SARs granted in tandem with an Option shall terminate
to the extent that the related Option is exercised, and the related Option
shall terminate to the extent that the tandem SARs are exercised.

 

(b)       Terms and Conditions.   The
Committee shall determine the number of shares of Common Stock subject to each
SAR and the exercise price therefore. A SAR granted in tandem with an Option
shall have an exercise price not less than the exercise price of the related
Option. A SAR granted alone and unrelated to an Option may not have an exercise
price less than 100% of the Fair Market Value of the Common Stock on of the
Grant Date. Each SAR shall be exercisable at such times and subject to such
terms and conditions as the Committee may specify in the Grant Agreement or
thereafter; provided that no SAR shall be exercisable after the expiration of
ten years from the SAR’s Grant Date. A Participant may exercise a SAR by
following such procedures as the Committee or its designees may specify from
time to time. The Committee may impose such conditions with respect to the
exercise of SARs, including conditions relating to Applicable Laws, as it
considers necessary or advisable.

 

(c)       Exercise Period.   When a
Participant’s status as a Service Provider terminates, the Participant’s SAR
may be exercised within the period of time specified in the Grant Agreement to
the extent that the SAR is vested on the Participant’s Termination Date. In the
absence of a specific period of time set forth in the Grant Agreement, a SAR
shall remain exercisable for three (3) months following the date the
Participant ceases to be a Service Provider, but in no event shall the SAR be
exercisable after the expiration of the term of such SAR. If a Participant’s
status as a Service Provider terminates from death or Disability or the
Participant dies within three (3) months after his Termination Date, then
(unless provided otherwise in the Grant Agreement) the SAR shall remain exercisable
for twelve (12) months following the date the Participant ceases to be a
Service Provider, but in no event shall the SAR be exercisable after the
expiration of the term of such SAR. In no event may the Committee provide in
the Grant Agreement that the period of time for exercising a SAR following a
Participant’s Termination Date shall exceed three (3) years.

 

8.
Restricted Stock

 

(a)       Grant of Restricted Stock.   Subject
to the provisions of the Plan, the Committee may grant Restricted Stock to a
Participant.

 

(b)       Terms
and Conditions.   The Committee shall determine the
number of shares of Common Stock subject to each Restricted Stock Award and the
purchase price (if any) for each share. Shares of Restricted Stock may be
issued for no cash consideration, or such minimum consideration as may be
required by Applicable Law. The Committee may grant shares of Common Stock
subject to such other terms, conditions, and restrictions (including forfeiture
provisions and conditions relating to Applicable Laws) as it considers
necessary or advisable.

 

(c)       Restrictions.   Shares
of Restricted Stock may not be sold, assigned, transferred, pledged or
otherwise encumbered, except as permitted by the Committee, during the
restricted period. Shares of Restricted Stock shall be evidenced in such manner
as the Committee may determine, including book-entry registration. Any physical
certificates issued in respect of shares of Restricted Stock shall be

 

B-6

 

registered
in the name of the Participant bearing an appropriate legend referring to the
terms, conditions, and restrictions applicable to such Restricted Stock and
unless otherwise determined by the Committee, deposited by the Participant,
together with a stock power endorsed in blank, with the Company or a designated
custodian or escrow agent. At the expiration of the restricted period, the
Company shall deliver any such certificates to the Participant or if the
Participant has died, to the Participant’s Designated Beneficiary.

 

9.
Restricted Stock Units

 

(a)       Restricted
Stock Units.   Subject to the provisions of the
Plan, the Committee may grant Restricted Stock Units to a Participant.

 

(b)       Terms
and Conditions.   The Committee shall determine the
number of shares of Common Stock subject to each Restricted Stock Unit Award
and the purchase price (if any) for each unit. Restricted Stock Units may be
issued for no cash consideration, or such minimum consideration as may be
required by Applicable Law. The Committee may grant Restricted Stock Units
subject to such other terms, conditions, and restrictions (including forfeiture
provisions and conditions relating to Applicable Laws) as it considers
necessary or advisable.

 

(c)       Unfunded
Obligation.   A Restricted Stock Unit Award
shall constitute an unfunded and unsecured obligation of the Company, and shall
be settled in shares of Common Stock or cash, as determined by the Committee at
the time of grant or thereafter. Each unit shall represent the equivalent of
one share of Common Stock.

 

10.
General Provisions Applicable to Awards

 

(a)       Transferability.   Except as otherwise provided in this Section 10(a),
an Award (i) shall not be transferable other than as designated by the
Participant by will or by the laws of descent and distribution, and (ii) may
be exercised during the Participant’s lifetime only by the Participant or by
the Participant’s guardian or legal representative. In the discretion of the
Committee, any Award may be transferable upon such terms and conditions and to
such extent as the Committee determines at or after grant, provided that
Incentive Stock Options may be transferable only to the extent permitted by the
Code.

 

(b)       Grant Agreement.   Each Award under the Plan shall be
evidenced by a written or electronic grant agreement delivered to the
Participant specifying the terms and conditions thereof and containing such
other terms and conditions not inconsistent with the provisions of the Plan or
Applicable Laws as the Committee considers necessary or advisable to achieve
the purposes of the Plan.

 

(c)       Committee Discretion.   Each type of Award may be made alone, in
addition to or in relation to any other Award. The terms of each type of Award
need not be identical, and the Committee need not treat Participants uniformly.
In addition to the authority granted to the Committee in Section 10(l) to
make Awards to Covered Employees which qualify as “performance-based
compensation” for purposes of Section 162(m) of the Code, the Company
may grant Awards subject to such performance conditions (including
performance-based vesting) as it shall determine in its discretion. Except as
otherwise provided by the Plan or a particular Award, any determination with
respect to an Award may be made by the Committee at the time of grant or at any
time thereafter.

 

(d)       Dividends and Cash Awards.   In the discretion of the Committee, any
Award under the Plan may provide the Participant with dividends or dividend
equivalents payable currently or deferred, with or without interest. The
Committee may also make cash payments under the Plan in lieu of or in addition
to an Award. Such Cash Awards may be made subject to such terms, conditions,
and restrictions as the Committee considers necessary or advisable.

 

B-7

 

(e)       Termination of Employment
or Service.   Whether
military service, government service, or other leave of absence shall
constitute a termination of employment or service, and whether the vesting of
an Award shall cease, be suspended, or continue during such leave of absence,
shall be determined in each case by the Committee in its direction. Except as
otherwise provided by the Committee, a Participant’s employment or service
shall not be deemed to terminate upon the transfer of employment or service
between the Company and an Affiliate. Except as otherwise provided by the
Committee, a Participant’s employment or service shall be deemed to terminate,
and further vesting of any Award shall cease, in the case of any sale,
spin-off, or other disposition of the Participant’s employer or substantially
all of its assets. To the extent that this Section 10(e) or action by
the Committee results in an Incentive Stock Option being exercised beyond the
date that a Participant is deemed to be an employee of the Company or a
Subsidiary for purposes of Section 424 of the Code, the Option shall be
deemed to be a Nonstatutory Stock Option.

 

(f)         Change in Control.   In order to preserve a Participant’s
rights under an Award in the event of a change in control of the Company as
defined by the Committee (a “Change in Control”), the Committee in its
discretion may, at the time an Award is made or at any time thereafter, take
one or more of the following actions: (i) provide for the acceleration of
any time period relating to the exercise or payment of the Award, (ii) provide
for payment to the Participant of cash or other property with a Fair Market
Value equal to the amount that would have been received upon the exercise or
payment of the Award had the Award been exercised or paid upon the Change in
Control, (iii) adjust the terms of the Award in a manner determined by the
Committee to reflect the Change in Control, (iv) cause the Award to be
assumed, or new rights substituted therefor, by another entity, or (v) make
such other provision as the Committee may consider equitable to Participants
and in the best interests of the Company.

 

(g)      Loans.   The Committee may not authorize the
making of loans to Participants in connection with the grant or exercise of any
Award under the Plan.

 

(h)      Withholding Taxes.   A Participant shall pay to the Company,
or make provision satisfactory to the Committee for payment of, any taxes
required by law to be withheld in respect of Awards under the Plan no later
than the date of the event creating the tax liability. In the Committee’s
discretion, such tax obligations may be paid in whole or in part in shares of
Common Stock, including shares retained from the Award creating the tax
obligation, valued at their Fair Market Value on the date of delivery. The
Company and its Affiliates may, to the extent permitted by Applicable Law,
deduct any such tax obligations from any payment of any kind otherwise due to
the Participant.

 

(i)         Foreign National Awards.   Notwithstanding anything to the contrary
contained in this Plan, Foreign National Awards may be made to Participants on
such terms and conditions different from those specified in the Plan as the Committee
considers necessary or advisable to achieve the purposes of the Plan or to
comply with Applicable Law.

 

(j)         Amendment of Award.   Except as provided in Section 10(k),
the Committee may amend, modify, or terminate any outstanding Award, including
substituting therefor another Award of the same or a different type, changing
the date of exercise or realization and converting an Incentive Stock Option to
a Nonstatutory Stock Option, provided that the Participant’s consent to such
action shall be required unless (i) the Committee determines that the
action, taking into account any related action, would not materially and
adversely affect the Participant, or (ii) the action is permitted by the
terms of the Plan.

 

(k)     No
Repricing of Options.   Notwithstanding anything to the contrary
in the Plan, the Company shall not engage in any repricing of Options or SARs
granted under this Plan without further stockholder approval. For this purpose,
the term “repricing” shall mean any of the following or other action that has
the same effect:  (i) lowering the
exercise price of an Option or a SAR after it is granted, (ii) any other
action that is treated as a repricing under generally accepted accounting
principles, or (iii) canceling an Option or a SAR at a time when its
exercise price exceeds the fair market value of the underlying stock in
exchange for another Option, SAR, Restricted Stock, or other equity of the
Company, unless the

 

B-8

 

cancellation
and exchange occurs in connection with a merger, acquisition, spin-off, or
similar corporate transaction (including any adjustment described in Section 5(c)).

 

(l)         Code Section 162(m) Provisions.   If the Committee determines at the
time an Award is granted to a Participant that such Participant is, or may be
as of the end of the tax year for which the Company would claim a tax deduction
in connection with such Award, a Covered Employee, then the Committee may
provide that the Participant’s right to receive cash, shares, or other property
pursuant to such Award shall be subject to the satisfaction of Performance
Goals during a Performance Period. Prior to the payment of any Award subject to
this Section 10(l), the Committee shall certify in writing that the
Performance Goals and other material terms applicable to such Award were
satisfied. Notwithstanding the attainment of Performance Goals by a Covered
Employee, the Committee shall have the right to reduce (but not to increase)
the amount payable at a given level of performance to take into account
additional factors that the Committee may deem relevant. The Committee shall
have the power to impose such other restrictions on Awards subject to this Section 10(l) as
it may deem necessary or appropriate to ensure that such Awards satisfy all
requirements for “performance-based compensation” within the meaning of Section 162(m) of
the Code.

 

(m) Minimum Vesting Requirements for Full Value Awards.   Each
Restricted Stock or Restricted Stock Unit Award granted under the Plan (each, a
“Full Value Award”) shall vest in
accordance with a schedule that does not permit such Full Value Award to
vest in full prior to the third anniversary of the Grant Date of the Award.
This minimum vesting requirement shall not, however, preclude the Committee
from exercising its discretion to (i) accelerate the vesting of any Full
Value Award upon retirement, termination of employment by the Company, death or
Disability, (ii) accelerate the vesting of any Full Value Award in
accordance with Section 10(f), (iii) establish a shorter vesting schedule for
any Full Value Award granted to a consultant, director, or newly-hired
employee, (iv) establish a shorter vesting schedule for any Full
Value Award that is granted in exchange for or in lieu of the right to receive
the payment of an equivalent amount of salary, bonus, directors’ fees, or other
cash compensation, (v) establish a shorter performance-based vesting schedule in
accordance with Section 10(c) or Section 10(l) (but in each
case of not less than one year), or (vi) vest up to 1,000 shares per year
for each Participant; provided, however, the total number of Full Value Awards
granted under clauses (iii) and (vi) above shall not exceed 75,000
shares in the aggregate (subject to adjustment in accordance with Section 5(c)).

 

(n)      Limitation Following a
Hardship Distribution.   To the extent required to comply with
Treasury Regulation Section 1.401(k)-1(d)(2)(iv)(B)(4), or any amendment
or successor thereto, a Participant’s “elective and employee contributions”
(within the meaning of such Treasury Regulation) under the Plan shall be
suspended for a period of twelve months following such Participant’s receipt of
a hardship distribution made in reliance on such Treasury Regulation from any
plan containing a cash or deferred arrangement under Section 401(k) of
the Code maintained by the Company or a related party within the provisions of Section 414
of the Code.

 

11.
Miscellaneous

 

(a)       No Right To Employment.   No person shall have any claim or right
to be granted an Award. Neither the Plan nor any Award hereunder shall be
deemed to give any employee the right to continued employment or service or to
limit the right of the Company to discharge any Participant at any time.

 

(b)       No Rights As Stockholder.   Subject to the provisions of the
applicable Award, no Participant or Designated Beneficiary shall have any
rights as a stockholder with respect to any shares of Common Stock to be
distributed under the Plan until he or she becomes the holder thereof. A
Participant to whom Common Stock is awarded shall be considered the holder of
the Stock at the time of the Award except as otherwise provided in the Grant
Agreement.

 

B-9

 

(c)       Effective Date.   Subject to the approval of the
stockholders of the Company, the Plan shall be effective on September 15,
2005.

 

(d)       Amendment and Term of Plan.   The Board may amend, suspend, or
terminate the Plan or any portion thereof at any time, subject to such stockholder
approval as the Board determines to be necessary or advisable to comply with
any tax or regulatory requirement, provided, however, that the Board may not
without stockholder approval materially amend the Plan (within the meaning of
applicable exchange listing requirements) to materially increase the number of
shares of Common Stock that may be issued under the Plan, materially increase
benefits to Participants, materially expand the class of Participants eligible
to participate in the Plan, or expand the types of Awards provided under the
Plan. Unless terminated earlier by the Board, or extended by subsequent
approval of the Company’s stockholders, the term of the Plan shall expire on September 15,
2015, and no further Awards shall be made thereafter. The termination of the
Plan on such date shall not affect the validity of any Award outstanding on the
date of termination.

 

(e)       Governing Law.   The provisions of the Plan shall be
governed by and interpreted in accordance with the laws of Massachusetts.

 

(f)         Indemnification.   Neither the
Board nor the Committee, nor any members of either, nor any employees or
officers of the Company or any Affiliate, shall be liable for any act,
omission, interpretation, construction, or determination made in good faith in
connection with their responsibilities under the Plan, and the Company hereby
agrees to indemnify the members of the Board, the members of the Committee, and
the employees and officers of the Company or any Affiliate administering the
Plan, in respect of any claim, loss, damage, or expense (including reasonable
fees of legal counsel) arising from any such act, omission, interpretation,
construction, or determination to the fullest extent permitted by Applicable
Law.

 

This
Plan was approved by the Board of Directors on July 20, 2005.

 

This
Plan was approved by the Company’s stockholders on September 15, 2005.

 

B-10

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