Document:

exv10w3

 

Exhibit 10.3

AMENDED AND RESTATED

SYNERGETICS USA, INC.

2005 NON-EMPLOYEE

DIRECTORS’ STOCK OPTION PLAN

     1. Purpose. The purpose of this Plan is to advance the interests of Synergetics USA, Inc., a
Delaware corporation (the "Company”), by providing an additional incentive to attract
and retain qualified and competent directors, upon whose efforts and judgment the success of the
Company is largely dependent, through the encouragement of stock ownership in the Company by such
persons.

     2. Definitions. As used herein, the following terms shall have the meanings indicated:

     (a) “Board” shall mean the Board of Directors of Synergetics USA, Inc.

     (b) “Committee” shall mean the committee, if any, appointed by the Board pursuant to Section
12 hereof.

     (c) “Date of Grant” shall mean the date on which an Option is granted to an Eligible Person
pursuant to Section 4 hereof.

     (d) “Director” shall mean a member of the Board.

     (e) “Eligible Person(s)” shall mean those persons who are Directors of the Company and who are
not either employees of the Company or a Subsidiary or members of the immediate family of an
employee-director of the Company or a Subsidiary.

     (f) “Fair Market Value” means: (i) if the Shares are traded in the over-the-counter market
and bid and ask prices are reported by a nationally recognized service, the Fair Market Value on
any given date shall be the average of the highest bid and lowest asked prices of a Share reported
for such date or, if no bid and asked prices were reported for such date, for the last day
preceding such date for which such prices were reported; or (ii) if the Shares are admitted to
trading on a United States securities exchange, the NASDAQ National Market or the NASDAQ Capital
Market, the Fair Market Value on any date shall be the closing price reported for a Share on such
exchange or system for such date or, if no sales were reported for such date, for the last day
preceding such date for which a sale was reported; and (iiii) in the absence of an established
market for the Shares, the Fair Market Value thereof shall be determined in good faith by the
Committee.

     (g) “Internal Revenue Code” or “Code” shall mean the Internal Revenue Code of 1986, as it now
exists or may be amended from time to time.

     (h) “Nonstatutory Stock Option” shall mean an option that is not an incentive stock option as
defined in Section 422 of the Internal Revenue Code.

     (i) “Option” shall mean any option granted pursuant to this Plan.

 

 

     (j) “Optionee” shall mean a person to whom an Option is granted under this Plan or any
successor to the rights of such person under this Plan by reason of the death of such person.

     (k) “Plan” shall mean this 2005 Non-Employee Directors’ Stock Option Plan of Synergetics USA,
Inc., as amended from time to time.

     (l) “Share(s)” shall mean a share or shares of the common stock, $0.001 par value per share,
of the Company.

     (m) “Subsidiary” shall mean a subsidiary corporation of the Company as defined in Section
424(f) of the Code.

     3. Shares and Options. The maximum number of Shares to be issued pursuant to Options under
this Plan shall be TWO HUNDRED THOUSAND (200,000) Shares. Shares issued pursuant to Options
granted under this Plan may be issued from Shares held in the Company’s treasury or from authorized
and unissued Shares. If any Option granted under this Plan shall terminate, expire or be canceled
or surrendered as to any Shares, new Options may thereafter be granted covering such Shares. Any
Option granted hereunder shall be a Nonstatutory Stock Option.

     4. Automatic Grant of Options. (a) Options shall automatically be granted to Directors as
provided in this Section 4. Each Option shall be evidenced by an option agreement (an “Option
Agreement”) and shall contain such terms as are not inconsistent with this Plan or any applicable
law. Any person who files with the Committee, in a form satisfactory to the Committee, a written
waiver of eligibility to receive any Option under this Plan shall not be eligible to receive any
Option under this Plan for the duration of such waiver.

     (b) The Options automatically granted to Directors under this Section 4 shall be in addition
to any other Options granted pursuant to this Plan, regular director’s fees and other benefits with
respect to the Director’s position with the Company or its Subsidiaries. Neither the Plan nor any
Option granted under the Plan shall confer upon any person any right to continue to serve as a
Director.

     (c) Options shall be automatically granted as follows:

     (i) Each Director who is an Eligible Person shall automatically receive an
Option for TEN THOUSAND (10,000) Shares on the date this Plan is adopted by the
Board of Directors of the Company, and each Eligible Person shall automatically
receive on the first business day after he/she is first appointed to be, or
elected as, a Director an Option for TEN THOUSAND (10,000) Shares, and such
Options shall vest on the Date of Grant.

     (ii) Each Director who is an Eligible Person shall automatically receive on
the first business day after the date of each annual meeting of stockholders of
the Company at which such Director is re-elected to, or continues to be a member
of, the Board of Directors of the Company, an Option to purchase TEN THOUSAND
(10,000) Shares, and such Options shall vest on the Date of Grant.

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     (d) Any Option that may be granted pursuant to subparagraph (c) of this Section 4 prior to the
approval of this Plan by the stockholders of the Company may be exercised on or after the Date of
Grant subject to the approval of this Plan by the stockholders of the Company within twelve (12)
months after the effective date of this Plan. If any Optionee exercises an Option prior to such
stockholder approval, the Optionee must tender the exercise price at the time of exercise and the
Company shall hold the Shares to be issued pursuant to such exercise until the stockholders approve
this Plan. If this Plan is approved by the stockholders, the Company shall issue and deliver the
Shares as to which the Option has been exercised. If this Plan is not approved by the
stockholders, the Company shall return the exercise price to the Optionee.

     5. Discretionary Grant of Options. In addition to the Options automatically granted under
Section 4 of this Plan, the Committee may grant Options at any time during the term of this Plan to
any Eligible Person. Subject only to the applicable limitations set forth in this Plan and
applicable law, the number of Shares to be covered by an Option shall be as determined by the
Committee. Each Option granted pursuant to this Section 5 shall be evidenced by an Option
Agreement and shall contain such terms as are not inconsistent with this Plan or any applicable
law.

     6. Option Price. The Option price per Share of any Option granted pursuant to this Plan shall
be one hundred percent (100%) of the Fair Market Value per Share on the Date of Grant.

     7. Exercise of Options. Options may be exercised at any time after the date on which the
Options, or any portion thereto are vested until the Option expires pursuant to Section 8. An
Option shall be deemed exercised when (i) the Company has received written notice of such exercise
in accordance with the terms of the Option Agreement, (ii) full payment of the aggregate Option
price of the Shares as to which the Option is exercised has been made, and (iii) arrangements that
are satisfactory to the Committee in its sole discretion have been made for the Optionee’s payment
to the Company of the amount, if any, that the Committee determines to be necessary for the Company
to withhold in accordance with applicable federal or state income tax withholding requirements.
Pursuant to procedures approved by the Committee, tax withholding requirements, at the option of
an Optionee, may be met by withholding Shares otherwise deliverable to the Optionee upon the
exercise of an Option. Unless further limited by the Committee in any Option Agreement, the Option
price of any Shares purchased shall be paid solely in cash, by certified or cashier’s check, by
money order, with Shares (but with Shares only if permitted by the Option Agreement or otherwise
permitted by the Committee in its sole discretion at the time of exercise) or by a combination of
the above, provided, however, that the Committee in its sole discretion may accept a personal check
in full or partial payment of any Shares. If the exercise price is paid in whole or in part with
Shares, the value of the Shares surrendered shall be their Fair Market Value on the date the Shares
are received by the Company.

     8. Termination of Option Period. The unexercised portion of an Option shall automatically and
without notice terminate and become null and void at the time of the earliest to occur of the
following:

     (a) with respect to Options granted automatically pursuant to Section 4(c), two (2) years
after the date that an Optionee ceases to be a Director regardless of the reason therefor, other
than as a result of such termination by death of the Optionee; or

     (b) the tenth (10th) anniversary of the Date of Grant of the Option.

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     9. Adjustment of Shares. (a) If at any time while this Plan is in effect or unexercised
Options are outstanding, there shall be any increase or decrease in the number of issued and
outstanding Shares through the declaration of a stock dividend or through any recapitalization
resulting in a stock split-up, combination or exchange of Shares, then and in such event:

(i) appropriate adjustment shall be made in the maximum number of Shares then subject
to being optioned under this Plan, so that the same proportion of the Company’s issued
and outstanding Shares shall continue to be subject to being so optioned, and

(ii) appropriate adjustment shall be made in the number of Shares and the exercise
price per Share thereof then subject to any outstanding Option, so that the same
proportion of the Company’s issued and outstanding Shares shall remain subject to
purchase at the same aggregate exercise price.

     In addition, the Committee shall make such adjustments in the Option price and the number of
shares covered by outstanding Options that are required to prevent dilution or enlargement of the
rights of the holders of such Options that would otherwise result from any reorganization,
recapitalization, stock split, stock dividend, combination of shares, merger, consolidation,
issuance of rights, spin-off or any other change in capital structure of the Company.

     (b) Except as otherwise expressly provided herein, the issuance by the Company of shares of
its capital stock of any class, or securities convertible into shares of capital stock of any
class, either in connection with a direct sale or upon the exercise of rights or warrants to
subscribe therefor, or upon conversion of shares or obligations of the Company convertible into
such shares or other securities, shall not affect, and no adjustment by reason thereof shall be
made with respect to, the number of or exercise price of Shares then subject to outstanding Options
granted under this Plan.

     (c) Without limiting the generality of the foregoing, the existence of outstanding Options
granted under this Plan shall not affect in any manner the right of power of the Company to make,
authorize or consummate (i) any or all adjustments recapitalizations, reorganizations, or other
changes in the Company’s capital structure or its business; (ii) any merger or consolidation of the
Company; (iii) any issue by the Company of debt securities, or preferred or preference stock that
would rank above the Shares subject to outstanding Options; (iv) the dissolution or liquidation of
the Company; (v) any sale, transfer or assignment of all or any part of the assets or business of
the Company; or (vi) any other corporate act or proceeding, whether of a similar character or
otherwise.

     10. Transferability of Options. Each Option Agreement shall provide that such Option shall
not be transferable by the Optionee other than by will or the laws of descent and distribution or
pursuant to a qualified domestic relations order and that, so long as an Optionee lives, only such
Optionee or his guardian or legal representative shall have the right to exercise the related
Option; provided however, that the Committee may, in its discretion, at the time of an
Option or by amendment of an Option, provide that Options granted to or held by an Eligible Person
may be transferred, in whole or in part, to one or more transferees and exercised by any such
transferee, provided further that: (i) any such transfer must be without consideration; (ii) each
transferee must be a member of such Eligible Person’s “immediate family” (as defined below) or a
trust, family limited partnership or other estate planning vehicle established for the exclusive
benefit of one or more members of the Eligible Person’s immediate family; and (iii) such transfer
is specifically approved by the

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Committee following the receipt of a written request for approval of the transfer. In the event an
Option is transferred as contemplated in this Section, such transfer shall become effective when
approved by the Committee and such Option may not be subsequent transferred by the transferee other
than by will or the laws of descent and distribution. Any transferred Option shall continue to be
governed by and subject to the term and conditions of this Plan and the relevant Option Agreement,
and the transferee shall be entitled to the same rights as the Eligible Person as if no transfer
had taken place. As used in this Section, “immediate family” shall mean, with respect to any
person, any spouse, child, stepchild or grandchild, and shall included relationships arising from
legal adoption.

     11. Issuance of Shares. No person shall be, or have any of the rights or privileges of, a
stockholder of the Company with respect to any of the Shares subject to an Option unless and until
certificates representing such Shares shall have been issued and delivered to such person. As a
condition of any transfer of the certificate for Shares, the Committee may obtain such agreements
or undertakings, if any, as it may deem necessary or advisable to assure compliance with any
provision of this Plan, any Option Agreement or any law or regulation, including, but not limited
to, the following:

(i) A representation, warranty or agreement by the Optionee to the Company, at the time
any Option is exercised, that he is acquiring the Shares to be issued to him or her for
investment and not with a view to, or for sale in connection with, the distribution of such
Shares; and

(ii) A representation, warranty or agreement to be bound by any legends that are, in the
opinion of the Committee, necessary or appropriate to comply with the provisions of any
securities law deemed by the Committee to be applicable to the issuance of the Shares and
are endorsed upon the Share certificates.

     Share certificates issued to an Optionee who is a party to any stockholder agreement or a
similar agreement shall bear the legends contained in such agreements.

     12. Administration of the Plan. (a) This Plan shall be administered by a stock option
committee (the “Committee”) consisting of not fewer than two (2) non-employee members of the Board,
provided, however, that if no Committee is appointed, the Board shall administer this Plan and in
such case all references to the Committee shall be deemed to be references to the Board. The
Committee shall have all of the powers of the Board with respect to this Plan. Any member of the
Committee may be removed at any time, with or without cause, by resolution of the Board, and any
vacancy occurring in the membership of the Committee may be filled by appointment by the Board.

     (b) The Committee, from time to time, may adopt rules and regulations for carrying out the
purposes of this Plan. The determinations and the interpretation and construction of any provision
of this Plan by the Committee shall be final and conclusive.

     (c) Any and all decisions or determinations of the Committee shall be made either (i) by a
majority vote of the members of the Committee at a meeting or (ii) without a meeting by the written
approval of a majority of the members of the Committee.

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     (d) This Plan is intended and has been drafted to comply with Rule 16b-3, as amended, under
the Securities Exchange Act of 1934, as amended. If any provision of this Plan does not comply
with Rule 16b-3, as amended, this Plan shall be automatically amended to comply with Rule 16b-3, as
amended.

     13. Interpretation. (a) If any provision of this Plan is held invalid for any reason, such
holding shall not affect the remaining provisions hereof, but instead this Plan shall be construed
and enforced as if such provision had never been included in this Plan.

     (b) THIS PLAN SHALL BE GOVERNED BY THE LAWS OF THE STATE OF DELAWARE EXCEPT TO THE EXTENT
SUPERSEDED BY THE LAWS OF THE UNITED STATES OR THE PROPERTY LAWS OF ANY STATE.

     (c) Headings contained in this Plan are for convenience only and shall in no manner be
construed as part of this Plan.

     (d) Any reference to the masculine, feminine or neuter gender shall be a reference to such
other gender as is appropriate.

     14. Section 83(b) Election. If as a result of exercising an Option an Optionee receives
Shares that are subject to a “substantial risk of forfeiture” and are not “transferable” as those
terms are defined for purposes of Section 83(a) of the Code, then such Optionee may elect under
Section 83(b) of the Code to include in his gross income, for his taxable year in which the Shares
are transferred to such Optionee, the excess of the Fair Market Value of such Shares at the time of
transfer (determined without regard to any restriction other than one which by its terms will never
lapse), over the amount paid for the Shares. If the Optionee makes the Section 83(b) election
described above, the Optionee shall (i) make such election in a manner that is satisfactory to the
Committee, (ii) provide the Company with a copy of such election, (iii) agree to promptly notify
the Company if any Internal Revenue Service or state tax agent, on audit or otherwise, questions
the validity or correctness of such election or of the amount of income reportable on account of
such election, and (iv) agree to such withholding as the Committee may reasonably require in its
sole and absolute discretion.

     15. Effective Date and Termination Date. The effective date of this Plan is the date that it
is adopted by the Board of Directors of the Company. The effective date of any amendment to the
Plan is the date on which the Board adopted such amendment, provided, however, if this Plan is not
approved by the stockholders of the Company within twelve (12) months after the effective date,
then, in such event, this Plan and all Options granted pursuant to this Plan shall be null and
void. This Plan shall terminate ten (10) years after the effective date, and any Option
outstanding on such date will remain outstanding until it has either expired or has been exercised.

6<PAGE>

                                                                    EXHIBIT 10.1

     AMENDMENT NO. 1 TO AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT

            THIS AMENDMENT NO. 1 TO AMENDED AND RESTATED RECEIVABLES PURCHASE
AGREEMENT, effective as of June 9, 2006 (this "AMENDMENT"), is entered into by
and among DEJ 98 Finance, LLC, a Delaware limited liability company (the
"SELLER"), Wolverine Finance, LLC, a Tennessee limited liability company, as
initial servicer (the "SERVICER"), Wolverine Tube, Inc., a Delaware corporation,
as performance guarantor (the "PERFORMANCE GUARANTOR" and, together with the
Seller and the Servicer, the "SELLER PARTIES"), Variable Funding Capital Company
LLC, a Delaware limited liability company ("VFCC"), The CIT Group/Business
Credit, Inc., a New York corporation ("CIT/BC"), individually and as co-agent
(the "CO-AGENT"), and Wachovia Bank, National Association, individually
(together with VFCC and CIT/BC, the "PURCHASERS"), and as agent for the
Purchasers (together with its successors and assigns in such capacity, the
"AGENT").

                             PRELIMINARY STATEMENTS

            The Seller Parties, the Purchasers and the Agent are parties to that
      certain Amended and Restated Receivables Purchase Agreement dated as of
      April 4, 2006 (the "EXISTING Agreement").

            The parties wish to amend the Existing Agreement as hereinafter set
      forth.

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

            1. Definitions. Capitalized terms used and not otherwise defined
herein are used with the meanings attributed thereto in the Existing Agreement.

            2. Amendments.

            2.1. The definition of "PURCHASE LIMIT" set forth in the Existing
Agreement is hereby amended and restated in its entirety to read as follows:

            "PURCHASE LIMIT" means US$90,000,000.

            2.2. Any reference in Exhibit VIII or Exhibit X to the Existing
Agreement to the Purchase Limit as being US$70,000,000 is hereby increased to
US$90,000,000.

            2.3. Schedule A to the Existing Agreement is hereby amended to
delete "US$25,000,000.00" where it appears opposite "The CIT Group/Business
Credit, Inc." and to substitute in lieu thereof "US$45,000,000.00".

                                       1
<PAGE>

            3. Representations.

            3.1. Each of the Seller Parties represents and warrants to the
Purchasers and the Agent that it has duly authorized, executed and delivered
this Amendment and that the Existing Agreement, as amended hereby, constitutes,
a legal, valid and binding obligation of such Seller Party, enforceable in
accordance with its terms (except as enforceability may be limited by applicable
bankruptcy, insolvency, or similar laws affecting the enforcement of creditors'
rights generally or by equitable principles relating to enforceability).

            3.2. Each of the Seller Parties further represents and warrants to
the Purchasers and the Agent that, after giving effect to this Amendment, each
of its representations and warranties set forth in Section 5.1 of the Existing
Agreement is true and correct as of the date hereof and that no Amortization
Event or Unmatured Amortization Event exists as of the date hereof and is
continuing.

            4. Condition Precedent. This Amendment shall become effective as of
the date first above written upon receipt by the Agent of a counterpart hereof
duly executed by each of the parties hereto.

            5. Miscellaneous.

            5.1. Except as expressly amended hereby, the Existing Agreement
shall remain unaltered and in full force and effect, and each of the parties
hereby ratifies and confirms the Existing Agreement and each of the other
Transaction Documents to which it is a party. Without limiting the generality of
the foregoing, the Performance Guarantor hereby specifically ratifies and
confirms the Performance Undertaking and agrees that it remains unaltered and in
full force and effect.

            5.2. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO
PRINCIPLES OF CONFLICTS OF LAW.

            5.3. This Amendment may be executed in any number of counterparts
and by the different parties hereto in separate counterparts, each of which when
so executed shall be deemed to be an original and all of which when taken
together shall constitute one and the same Amendment. Delivery of any executed
counterpart by facsimile or electronic mail with an attached image of such
executed counterpart shall have the same force and effect as delivery of an
originally executed counterpart.

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<PAGE>

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

                                         DEJ 98 FINANCE, LLC

                                         By: /s/ James E. Deason
                                             ------------------------------
                                         Name: JAMES E. DEASON
                                         Title: MEMBER, BOARD OF MANAGERS

                                         WOLVERINE FINANCE, LLC

                                         By: /s/ James E. Deason
                                             ------------------------------
                                         Name: JAMES E. DEASON
                                         Title: VICE MANAGER & TREASURER

                                       3
<PAGE>

                                         WOLVERINE TUBE, INC.

                                         By: /s/ James E. Deason
                                             ------------------------------
                                         Name: JAMES E. DEASON
                                         Title: SR VICE-PRESIDENT
                                                CFO & SECRETARY

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<PAGE>

                                         The CIT GROUP/BUSINESS CREDIT, INC.,
                                         individually and as Co-Agent

                                         By: /s/ C. Mark Smith
                                             ---------------------------------
                                             Name: C. Mark Smith
                                             Title: Vice President

                                       5
<PAGE>

                                         WACHOVIA BANK, NATIONAL ASSOCIATION,
                                         individually and as Agent

                                         By: /s/ Elizabeth R. Wagner
                                             --------------------------------
                                             Name:  Elizabeth R. Wagner
                                             Title: Managing Director

                                       6
<PAGE>

                                         VARIABLE FUNDING CAPITAL COMPANY LLC

                                         BY: WACHOVIA CAPITAL MARKETS, LLC,
                                         ITS ATTORNEY-IN-FACT

                                         By: /s/ Douglas R. Wilson, Sr.
                                             --------------------------------
                                             Name: Douglas R. Wilson, Sr.
                                             Title: Vice President

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