Document:

Exhibit 10.3

 

REVOLVING LINE OF CREDIT
NOTE

 

	
  $25,000,000.00

  	
  Los Angeles, California

  
	
   

  	
  May 31, 2005

  

 

FOR
VALUE RECEIVED, the undersigned, INTERNATIONAL HOUSE OF PANCAKES, INC., a
Delaware corporation (“Borrower”), promises to pay to the order of WELLS FARGO
BANK, NATIONAL ASSOCIATION (“Bank”) at its office at Los Angeles RCBO, 333
South Grand Avenue, Third Floor, Los Angeles, California 90071, or at such
other place as the holder hereof may designate, in lawful money of the United
States of America and in immediately available funds, the principal sum of
Twenty-Five Million and No/100 Dollars ($25,000,000.00), or so much
thereof as may be advanced and be outstanding, with interest thereon, to be
computed on each advance from the date of its disbursement as set forth herein.

 

DEFINITIONS:

 

As
used herein, the following terms shall have the meanings set forth after each,
and any other term defined in this Note shall have the meaning set forth at the
place defined:

 

(a)                                  “Business Day” means any day except a Saturday,
Sunday or any other day on which commercial banks in California are authorized
or required by law to close.

 

(b)                                 “Fixed Rate Term” means a period during which
all or a portion of the outstanding principal balance of this Note bears
interest determined in relation to LIBOR or the SAF Rate, with each Fixed Rate
Term to commence on a Business Day and to continue:

 

(i)                                     for a period of one (1), two (2) or
three (3) months for a LIBOR interest selection; and

 

(ii)                                  for a period of not less than one (1) Business
Day nor more than twenty-eight (28) days for a SAF Rate interest selection;

 

provided however, that no Fixed Rate Term for a LIBOR interest option
may be selected for a principal amount less than One Hundred Thousand Dollars
($100,000.00) and no Fixed Rate Term for a SAF Rate interest option may be
selected for a principal amount less than One Hundred Thousand Dollars
($100,000.00); and provided further, that no Fixed Rate Term shall extend
beyond the Line of Credit Maturity Date. 
If any Fixed Rate Term would end on a day which is not a Business Day,
then such Fixed Rate Term shall be extended to the next succeeding Business
Day.

 

(c)                                  “LIBOR” means the rate per annum (rounded
upward, if necessary, to the nearest whole 1/16 of 1%) and determined pursuant
to the following formula:

 

	
  LIBOR =

  	
  Base LIBOR

  
	
   

  	
  100% - LIBOR Reserve
  Percentage

  

 

(i)                                     “Base LIBOR” means the rate per annum for
United States dollar deposits quoted by Bank as the Inter-Bank Market Offered
Rate, with the understanding that such rate is quoted by Bank for the purpose
of calculating effective rates of interest for loans making reference thereto,
on the first day of a

 

1

 

Fixed Rate Term for delivery of funds on said date for a period of time
approximately equal to the number of days in such Fixed Rate Term and in an
amount approximately equal to the principal amount to which such Fixed Rate
Term applies.  Borrower understands and
agrees that Bank may base its quotation of the Inter-Bank Market Offered Rate
upon such offers or other market indicators of the Inter-Bank Market as Bank in
its discretion deems appropriate including, but not limited to, the rate
offered for U.S. dollar deposits on the London Inter-Bank Market.

 

(ii)                                  “LIBOR Reserve Percentage” means the reserve
percentage prescribed by the Board of Governors of the Federal Reserve System
(or any successor) for “Eurocurrency Liabilities” (as defined in Regulation D
of the Federal Reserve Board, as amended), adjusted by Bank for expected
changes in such reserve percentage during the applicable Fixed Rate Term.

 

(d)                                 “Line of Credit Maturity Date” shall have the
meaning specified for such term in the Credit Agreement described below.

 

(e)                                  “Prime Rate” means at any time the rate of
interest most recently announced within Bank at its principal office as its
Prime Rate, with the understanding that the Prime Rate is one of Bank’s base
rates and serves as the basis upon which effective rates of interest are
calculated for those loans making reference thereto, and is evidenced by the
recording thereof after its announcement in such internal publication or
publications as Bank may designate.

 

(f)                                    “SAF Rate” means the fixed rate per annum
determined solely for Borrower by Bank to be the Special Advance Facility Rate
applicable to all or a portion of the outstanding principal balance of this
Note, with the understanding that:  (i) the
SAF Rate shall be determined separately by Bank at the time of each request
therefor; (ii) Bank’s agreement to make the SAF Rate available is subject
to cancellation by Bank at any time at Bank’s sole discretion; and (iii) upon
any such cancellation, Bank shall have no further obligation to provide any new
SAF Rate for this Note.

 

INTEREST:

 

(a)                                  Interest.  The outstanding principal
balance of this Note shall bear interest (computed on the basis of a 360-day
year, actual days elapsed) either (i) at a fluctuating rate per annum one
percent (1.000%) below the Prime Rate in effect from time to time, (ii) at
a fixed rate per annum determined by Bank to be three-eighths percent (0.375%)
above LIBOR in effect on the first day of the applicable Fixed Rate Term for a
LIBOR interest selection, or (iii) at a fixed rate per annum determined by
Bank to be ninety-five one hundredths of one percent (0.950%) above the SAF
Rate in effect on the first day of any Fixed Rate Term for a SAF Rate interest
selection.  When interest is determined
in relation to the Prime Rate, each change in the rate of interest hereunder
shall become effective on the date each Prime Rate change is announced within
Bank.  With respect to each LIBOR or SAF
Rate interest selection hereunder, Bank is hereby authorized to note the date,
principal amount, interest rate and Fixed Rate Term applicable thereto and any
payments made thereon on Bank’s books and records (either manually or by
electronic entry) and/or on any schedule attached to this Note, which
notations shall be prima facie evidence of the accuracy of the information
noted.

 

2

 

(b)                                 Selection of Interest Rate Options.  At
any time any portion of this Note bears interest determined in relation to
LIBOR or the SAF Rate, it may be continued by Borrower at the end of the Fixed
Rate Term applicable thereto so that all or a portion thereof bears interest
determined in relation to the Prime Rate or in relation to LIBOR or the SAF
Rate for a new Fixed Rate Term designated by Borrower.  At any time any portion of this Note bears
interest determined in relation to the Prime Rate, Borrower may convert all or
a portion thereof so that it bears interest determined in relation to LIBOR or
the SAF Rate for a Fixed Rate Term designated by Borrower.  At such time as Borrower requests an advance
hereunder or wishes to select a LIBOR or SAF Rate option for all or a portion
of the outstanding principal balance hereof, and at the end of each Fixed Rate
Term, Borrower shall give Bank notice specifying:  (i) the interest rate option selected by
Borrower; (ii) the principal amount subject thereto; and (iii) for
each LIBOR or SAF Rate selection, the length of the applicable Fixed Rate Term.
Any such notice may be given by telephone (or such other electronic method as
Bank may permit) so long as, with respect to each LIBOR or SAF Rate selection, (A) if
requested by Bank, Borrower provides to Bank written confirmation thereof not
later than three (3) Business Days after such notice is given, and (B) with
respect to each LIBOR option requested hereunder, such notice is given to Bank
prior to 2:00 p.m. on the first day of the Fixed Rate Term, or at a later
time during any Business Day if Bank, at it’s sole option but without
obligation to do so, accepts Borrower’s notice and quotes a LIBOR-based rate to
Borrower.  If Borrower does not
immediately accept a LIBOR-based rate when quoted by Bank, the quoted rate
shall expire and any subsequent LIBOR request from Borrower shall be subject to
a redetermination by Bank of the applicable fixed rate.  If no specific designation of interest is
made at the time any advance is requested hereunder or at the end of any Fixed
Rate Term, Borrower shall be deemed to have made a Prime Rate interest
selection for such advance or the principal amount to which such Fixed Rate
Term applied.

 

(c)                                  Taxes and Regulatory Costs. 
Borrower shall pay to Bank immediately upon demand, in addition to any
other amounts due or to become due hereunder, any and all (i) withholdings,
interest equalization taxes, stamp taxes or other taxes (except income and
franchise taxes) imposed by any domestic or foreign governmental authority and
related in any manner to LIBOR, and (ii) future, supplemental, emergency
or other changes in the LIBOR Reserve Percentage, assessment rates imposed by
the Federal Deposit Insurance Corporation, or similar requirements or costs
imposed by any domestic or foreign governmental authority or resulting from
compliance by Bank with any request or directive (whether or not having the
force of law) from any central bank or other governmental authority and related
in any manner to LIBOR to the extent they are not included in the calculation
of LIBOR.  In determining which of the
foregoing are attributable to any LIBOR option available to Borrower hereunder,
any reasonable allocation made by Bank among its operations shall be conclusive
and binding upon Borrower.

 

(d)                                 Payment of Interest. 
Interest accrued on this Note shall be payable on the first day of each
month, commencing June 1, 2005.

 

(e)                                  Default Interest.  From
and after the maturity date of this Note, or such earlier date as all principal
owing hereunder becomes due and payable by acceleration or otherwise, the
outstanding principal balance of this Note shall bear interest until paid in
full at an increased rate per annum (computed on the basis of a 360-day year, actual
days elapsed) equal to four percent (4%) above the rate of interest from time
to time applicable to this Note.

 

3

 

BORROWING
AND REPAYMENT:

 

(a)                                  Borrowing and Repayment. 
Borrower may from time to time during the term of this Note borrow,
partially or wholly repay its outstanding borrowings, and reborrow, subject to
all of the limitations, terms and conditions of this Note and of any document
executed in connection with or governing this Note; provided however, that the
total outstanding borrowings under this Note shall not at any time exceed the
principal amount set forth above or such lesser amount as shall at any time be
available hereunder.  The unpaid principal
balance of this obligation at any time shall be the total amounts advanced
hereunder by the holder hereof less the amount of principal payments made
hereon by or for Borrower, which balance may be endorsed hereon from time to
time by the holder.  The outstanding
principal balance of this Note shall be due and payable in full on the Line of
Credit Maturity Date.

 

(b)                                 Advances.  Advances hereunder, to the
total amount of the principal sum stated above, may be made by the holder at
the oral or written request of Katherine G. Mittelman or Robert H. Dickson or
Thomas G. Conforti, any one acting alone, who are authorized to request
advances and direct the disposition of any advances until written notice of the
revocation of such authority is received by the holder at the office designated
above.

 

(c)                                  Application of Payments.  Each
payment made on this Note shall be credited first, to any interest then due and
second, to the outstanding principal balance hereof.  All payments credited to principal shall be
applied first, to the outstanding principal balance of this Note which bears
interest determined in relation to the Prime Rate, if any, second, to the
outstanding principal balance of this Note which bears interest determined in
relation to LIBOR, with such payments applied to the oldest Fixed Rate Term
first, and third, subject to the restrictions set forth below on voluntary
prepayments of any principal amount bearing interest in relation to the SAF
Rate, to the outstanding principal balance of this Note which bears interest
determined in relation to the SAF Rate, with such payments applied to the
oldest Fixed Rate Term first.

 

PREPAYMENT:

 

(a)                                  Prime Rate.  Borrower may prepay principal
on any portion of this Note which bears interest determined in relation to the
Prime Rate at any time, in any amount and without penalty.

 

(b)                                 LIBOR.  Borrower may prepay principal
on any portion of this Note which bears interest determined in relation to
LIBOR at any time and in the minimum amount of One Hundred Thousand Dollars
($100,000.00); provided however, that if the outstanding principal balance of
such portion of this Note is less than said amount, the minimum prepayment
amount shall be the entire outstanding principal balance thereof.  In consideration of Bank providing this
prepayment option to Borrower, or if any such portion of this Note shall become
due and payable at any time prior to the last day of the Fixed Rate Term
applicable thereto by acceleration or otherwise, Borrower shall pay to Bank
immediately upon demand a fee which is the sum of the discounted monthly
differences for each month from the month of prepayment through the month in
which such Fixed Rate Term matures, calculated as follows for each such month:

 

4

 

(i)                                     Determine the amount of interest which would have accrued each month on the
amount prepaid at the interest rate applicable to such amount had it remained
outstanding until the last day of the Fixed Rate Term applicable thereto.

 

(ii)                                  Subtract from the amount determined in (i) above the amount of interest
which would have accrued for the same month on the amount prepaid for the
remaining term of such Fixed Rate Term at LIBOR in effect on the date of
prepayment for new loans made for such term and in a principal amount equal to
the amount prepaid.

 

(iii)                               If the result obtained in (ii) for any
month is greater than zero, discount that difference by LIBOR used in (ii) above.

 

Borrower
acknowledges that prepayment of such amount may result in Bank incurring
additional costs, expenses and/or liabilities, and that it is difficult to
ascertain the full extent of such costs, expenses and/or liabilities.  Borrower, therefore, agrees to pay the above-described
prepayment fee and agrees that said amount represents a reasonable estimate of
the prepayment costs, expenses and/or liabilities of Bank.  If Borrower fails to pay any prepayment fee
when due, the amount of such prepayment fee shall thereafter bear interest
until paid at a rate per annum two percent (2.000%) above the Prime Rate in
effect from time to time (computed on the basis of a 360-day year, actual days
elapsed).  Each change in the rate of
interest on any such past due prepayment fee shall become effective on the date
each Prime Rate change is announced within Bank.

 

(c)                                  SAF Rate.  Borrower may not voluntarily
prepay principal on any portion of this Note which bears interest determined in
relation to the SAF Rate. 
Notwithstanding the foregoing, in the event that any portion of this
Note which bears interest in relation to the SAF Rate shall become due and
payable at any time prior to the last day of the Fixed Rate Term applicable
thereto by acceleration or otherwise, Borrower shall reimburse Bank immediately
on demand for the full amount of any loss incurred by Bank as a result of the
prepayment of such portion, including any loss of income resulting from Bank’s
reinvestment or re-employment of the amount prepaid at a rate which is less
than the SAF Rate for such portion.

 

EVENTS
OF DEFAULT:

 

This
Note is made pursuant to and is subject to the terms and conditions of that
certain Credit Agreement between Borrower and Bank dated as of June 28,
2001, as amended from time to time (the “Credit Agreement”).  Any default in the payment or performance of
any obligation under this Note, or any defined event of default under the
Credit Agreement, shall constitute an “Event of Default” under this Note.

 

MISCELLANEOUS:

 

(a)                                  Remedies.  Upon the occurrence of any
Event of Default, the holder of this Note, at the holder’s option, may declare
all sums of principal and interest outstanding hereunder to be immediately due
and payable without presentment, demand, notice of nonperformance, notice of
protest, protest or notice of dishonor, all of which are expressly waived by
Borrower, and the obligation, if any, of the holder to extend any further
credit hereunder shall immediately cease and terminate.  Borrower shall pay to the holder immediately
upon demand the full amount of all payments, advances, charges, costs and

 

5

 

expenses, including reasonable attorneys’ fees (to include outside
counsel fees and all allocated costs of the holder’s in-house counsel),
expended or incurred by the holder in connection with the enforcement of the
holder’s rights and/or the collection of any amounts which become due to the
holder under this Note, and the prosecution or defense of any action in any way
related to this Note, including without limitation, any action for declaratory
relief, whether incurred at the trial or appellate level, in an arbitration
proceeding or otherwise, and including any of the foregoing incurred in
connection with any bankruptcy proceeding (including without limitation, any
adversary proceeding, contested matter or motion brought by Bank or any other
person) relating to Borrower or any other person or entity.

 

(b)                                 Governing Law.  This
Note shall be governed by and construed in accordance with the laws of the
State of California.

 

IN
WITNESS WHEREOF, the undersigned has executed this Note as of the date first written
above.

 

INTERNATIONAL
HOUSE OF PANCAKES, INC.,

a
Delaware corporation

 

 

	
  By

  	
  /s/ Julia A. Stewart

  	
   

  
	
   

  	
  Julia A. Stewart

  
	
   

  	
  President and
  CEO

  

 

6Exhibit 10.1

 

Grant No.:
        

 

ACCELLENT INC.

(formerly UTI CORPORATION, and formerly MDMI HOLDINGS, INC.)
2000 STOCK OPTION AND INCENTIVE PLAN

 

RESTRICTED STOCK AGREEMENT

 

Accellent Inc., a Maryland
corporation (the “Company”), hereby grants shares of its common stock, $.01 par
value, (the “Stock”) to the Grantee named below.  The terms and conditions of the grant are set
forth in this cover sheet, in the attachment and in the Company’s 2000 Stock
Option and Incentive Plan (the “Plan”).

 

Grant Date:                       
    , 2005

 

Name of Grantee:                                                         

 

Grantee’s Social Security
Number: 
           -        -           

 

Number of Shares Covered by
Grant: 
                   

 

Purchase Price per Share: 
$          .     

 

Vesting Start Date:
                               ,
         

 

By
signing this cover sheet, you agree to all of the terms and conditions
described in the attached Agreement and in the Plan, a copy of which is also
attached.  You acknowledge that you have
carefully reviewed the Plan, and agree that the Plan will control in the event
any provision of this Agreement should appear to be inconsistent.

 

 

	
  Grantee:

  	
   

  	
   

  
	
   

  	
  (Signature)

  	
   

  
	
   

  	
   

  	
   

  
	
  Company:

  	
   

  	
   

  
	
   

  	
  (Signature)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
				

 

Attachment

 

This is not a stock certificate
or a negotiable instrument.

 

 

	
  Restricted
  Stock/ Nontransferability

  	
   

  	
  This
  grant is an award of Stock in the number of shares set forth on the cover
  sheet, at the purchase price set forth on the cover sheet, and subject to the
  vesting conditions described below (“Restricted Stock”). The purchase
  price for the Restricted Stock is deemed paid by your services to the
  Company. To the extent not yet
  vested, your Restricted Stock may not be transferred, assigned, pledged or
  hypothecated, whether by operation of law or otherwise, nor may the
  Restricted Stock be made subject to execution, attachment or similar process.

  
	
   

  	
   

  	
   

  
	
  Issuance
  and Vesting

  	
   

  	
  The
  Company will issue your Restricted Stock in your name as of the Grant Date.
  One hundred percent (100%) of the total number of shares covered by this
  grant, as shown on the cover sheet, will vest on the four-year anniversary of
  the Vesting Start Date (“Anniversary Date”), provided you then continue in
  Service. For the purpose of this Agreement, Service means service with the
  Company or an affiliate as an employee or consultant.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Upon
  the completion of an Initial Public Offering (as defined below), all of the
  shares of Stock subject to this grant shall become immediately vested. For
  the purposes of this Agreement, the term “Initial Public Offering” shall mean
  the closing of a firm commitment underwritten initial public offering of
  Stock of the Company that is effected pursuant to a registration statement
  filed and declared effective by the Securities and Exchange Commission (or
  any successor thereof) under the securities Act of 1933, as amended, and the
  rules and regulations promulgated thereunder.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Section 18
  of the Plan contains a description of certain events involving a change in
  control of the company which may cause vesting of your grant to accelerate.
  Notwithstanding any other provision contained in the Plan to the contrary,
  the exceptions in the last sentence of Section 18.3 of the Plan shall
  not be applicable to the Restricted Stock if the Restricted Stock becomes
  immediately vested under the first sentence of Section 18.3 upon a
  Change of Control as defined in Section 2.5(ii) and
  Section 2.5(iii) of the Plan.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  No
  additional shares of Stock will vest after your Service has

  

 

2

 

	
   

  	
   

  	
  terminated
  for any reason.

  
	
   

  	
   

  	
   

  
	
  Regular
  Termination

  	
   

  	
  If
  your Service terminates for any reason then the unvested portion of your
  grant will expire immediately upon your termination.

  
	
   

  	
   

  	
   

  
	
  Escrow

  	
   

  	
  The certificates for the Restricted Stock shall be deposited in
  escrow with the Secretary of the Company to be held in accordance with the
  provisions of this paragraph. Each deposited certificate shall be accompanied
  by a duly executed Assignment Separate from Certificate in the form attached
  hereto as Exhibit A. The deposited certificates shall remain in
  escrow until such time or times as the certificates are to be released or
  otherwise surrendered for cancellation as discussed below. Upon delivery of
  the certificates to the Company, you shall be issued an instrument of deposit
  acknowledging the number of shares of Stock delivered in escrow to the
  Secretary of the Company.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  All regular cash dividends on the Stock (or other securities at the
  time held in escrow) shall be paid directly to you and shall not be held in
  escrow. However, in the event of any stock dividend, stock split,
  recapitalization or other change affecting the Company’s outstanding common
  stock as a class effected without receipt of consideration, any new,
  substituted or additional securities or other property which is by reason of
  such transaction distributed with respect to the Stock shall be immediately
  delivered to the Secretary of the Company to be held in escrow hereunder, but
  only to the extent the Stock is at the time subject to the escrow
  requirements hereof.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The shares of Stock held in escrow hereunder shall be subject to the
  following terms and conditions relating to their release from escrow or their
  surrender to the Company for cancellation:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  •                  When your interest in the shares vests as
  described above, the certificates for such vested shares shall be released
  from escrow and delivered to you, at your request;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  •                  Upon termination of your Service, any
  escrowed shares in which you are at the time vested shall be promptly
  released from escrow.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Upon your termination of Service, the escrowed certificates for such
  unvested shares shall be surrendered to the Company for cancellation, and you
  shall have no further rights with respect to such shares of Stock.

  

 

3

 

	
  Withholding
  Taxes

  	
   

  	
  You
  agree, as a condition of this grant, that you will make acceptable
  arrangements to pay any withholding or other taxes that may be due as a
  result of the vesting of Stock acquired under this grant. In the event that
  the Company determines that any federal, state, local or foreign tax or
  withholding payment is required relating to the vesting of shares arising
  from this grant, the Company shall have the right to require such payments
  from you, or withhold such amounts from other payments due to you from the
  Company or any Affiliate.

  
	
   

  	
   

  	
   

  
	
  Section 83(b) Election

  	
   

  	
  Under Section 83 of the Internal Revenue Code of 1986, as
  amended (the “Code”), the difference between the purchase price paid for the
  shares of Stock and their fair market value on the date any forfeiture
  restrictions applicable to such shares lapse will be reportable as ordinary
  income at that time. For this purpose, “forfeiture restrictions” include the
  forfeiture as to unvested Stock described above. You may elect to be taxed at
  the time the shares are acquired, rather than when such shares cease to be
  subject to such forfeiture restrictions, by filing an election under Section 83(b) of
  the Code with the Internal Revenue Service within thirty (30) days after the
  Grant Date. You will have to make a tax payment to the extent the purchase
  price is less than the fair market value of the shares on the Grant Date. No
  tax payment will have to be made to the extent the purchase price is at least
  equal to the fair market value of the shares on the Grant Date. The form for
  making this election is attached as Exhibit B hereto. Failure to
  make this filing within the thirty (30) day period will result in the
  recognition of ordinary income by you (in the event the fair market value of
  the shares as of the vesting date exceeds the purchase price) as the
  forfeiture restrictions lapse.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  YOU ACKNOWLEDGE THAT IT IS YOUR SOLE
  RESPONSIBILITY, AND NOT THE COMPANY’S, TO FILE A TIMELY ELECTION UNDER
  SECTION 83(b), EVEN IF YOU REQUEST THE COMPANY OR ITS REPRESENTATIVES TO
  MAKE THIS FILING ON YOUR BEHALF. YOU ARE RELYING SOLELY ON YOUR OWN ADVISORS
  WITH RESPECT TO THE DECISION AS TO WHETHER OR NOT TO FILE ANY
  83(b) ELECTION.

  
	
   

  	
   

  	
   

  
	
  Market
  Stand-off Agreement

  	
   

  	
  In
  connection with the initial public offering of the Company’s securities and
  upon request of the Company or the underwriters managing such underwritten
  offering of the Company’s securities, you (or your transferee) agree not to
  sell, make any 

  

 

4

 

	
   

  	
   

  	
  short
  sale of, loan, grant any option for the purchase of, or otherwise dispose of
  any shares of Stock acquired pursuant to this grant (other than those included
  in the registration) without the prior written consent of the Company or such
  underwriters, as the case may be, for such period of time (not to exceed
  180 days) from the effective date of such registration as may be
  requested by the Company or such managing underwriters and to execute an
  agreement reflecting the foregoing as may be requested by the underwriters at
  the time of the Company’s initial public offering.

  
	
   

  	
   

  	
   

  
	
  Right of First Refusal

  	
   

  	
  You
  may not sell, pledge, assign, gift, transfer, or otherwise dispose of any
  shares of Stock acquired pursuant to this grant to any person or entity
  without first offering such shares to the Company for purchase on the same
  terms and conditions as those offered the proposed transferee. The Company
  may assign its right of first refusal under this Agreement, in whole or in part, to (1) any holder of stock
  or other securities of the Company (a “Stockholder”), (2) any affiliate
  or (3) any other person or entity that the Board determines has a
  sufficient relationship with or interest in the Company. The Company shall
  give reasonable written notice to you of any such assignment of its rights.
  The restrictions of this Agreement
  re-apply to any person to whom Stock that was originally acquired pursuant to
  this grant is sold, pledged, assigned, bequeathed, gifted, transferred or
  otherwise disposed of, without regard to the number of such subsequent
  transferees or the manner in which they acquire the Stock, but the
  restrictions of this Agreement do
  not apply to a transfer of Stock that occurs as a result of your death or the
  death of any subsequent transferee (but shall apply to the executor, the
  administrator or personal representative, the estate, and the legatees,
  beneficiaries and assigns thereof).

  
	
   

  	
   

  	
   

  
	
  Company
  Repurchase Rights

  	
   

  	
  Upon the termination of your employment or
  other relationship with the Company or an affiliate, the Company shall have
  the right, for a period of up to twelve months following such termination, to
  repurchase any or all of the shares acquired by you or your transferee
  pursuant to this grant (including shares that were previously transferred
  pursuant to this Agreement),
  at a price equal to the fair market value, as defined below, of such shares
  on the date of termination. In the event that the Company determines that it
  cannot or will not exercise its rights to purchase Stock under this Agreement, in whole or in part, the
  Company may assign its rights, in whole or in part, to (1) any
  Stockholder, (2) any affiliate or (3) any other person or entity that
  the Board determines has a sufficient relationship with or

  

 

5

 

	
   

  	
   

  	
  interest in the Company. The Company shall
  give reasonable written notice to the individual of any assignment of its
  rights.

  
	
   

  	
   

  	
   

  
	
  Installment
  Payments

  	
   

  	
  In the case of any purchase of Stock under
  this Agreement, at the option
  of the Company or its permitted assignee, the Company or its permitted
  assignee may pay you, the transferee of the Stock or other registered owner
  of the Stock the purchase price in three or fewer annual installments.
  Interest shall be credited on the installments at the applicable federal rate
  (as determined for purposes of Section 1274 of the Code) in effect on
  the date on which the purchase is made. The Company or its permitted assignee
  shall pay at least one-third of the total purchase price each year, plus
  interest on the unpaid balance, with the first payment being made on or
  before the 60th day after the purchase.

  
	
   

  	
   

  	
   

  
	
  Publicly Traded Stock

  	
   

  	
  If the Stock is listed on an established national or regional stock
  exchange or is admitted to quotation on the National Association of
  Securities Dealers Automated Quotation System or is publicly traded in an
  established securities market the right of first refusal and company purchase
  right shall terminate as of the first date that the Stock is so listed,
  quoted or publicly traded.

  
	
   

  	
   

  	
   

  
	
  Adjustments

  	
   

  	
  In
  the event of a stock split, a stock dividend or a similar change in the
  Company stock, the number of shares covered by this grant may be adjusted
  pursuant to the Plan. Your Restricted Stock shall be subject to the terms of
  the agreement of merger, liquidation or reorganization in the event the
  Company is subject to such corporate activity.

  
	
   

  	
   

  	
   

  
	
  Legends

  	
   

  	
  All
  certificates representing the Stock issued in connection with this grant
  shall, where applicable, have endorsed thereon the following legends:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “THE SHARES REPRESENTED BY
  THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER AND
  FORFEITURE PROVISIONS SET FORTH IN AN AGREEMENT BETWEEN THE COMPANY AND THE
  REGISTERED HOLDER, OR HIS OR HER PREDECESSOR IN INTEREST. A COPY OF SUCH
  AGREEMENT IS ON FILE AT THE PRINCIPAL OFFICE OF THE COMPANY AND WILL BE
  FURNISHED UPON WRITTEN REQUEST TO THE SECRETARY OF THE COMPANY BY THE HOLDER
  OF RECORD OF THE SHARES REPRESENTED BY THIS CERTIFICATE.”

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “THE SHARES REPRESENTED
  HEREBY HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES ACT OF
  1933, AS AMENDED, OR ANY 

  

 

6

 

	
   

  	
   

  	
  SECURITIES LAWS OF ANY
  STATE OR OTHER JURISDICTION, AND MAY NOT BE SOLD, PLEDGED, OR OTHERWISE
  TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION OR QUALIFICATION THEREOF UNDER
  SUCH ACT AND SUCH APPLICABLE STATE OR OTHER JURISDICTION’S SECURITIES LAWS OR
  AN OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH
  REGISTRATION AND QUALIFICATION IS NOT REQUIRED.”

  
	
   

  	
   

  	
   

  
	
  Forfeiture
  of Rights

  	
   

  	
  If you should take actions
  in competition with the Company, the Company shall have the right to cause a
  forfeiture of your rights, including, but not limited to, the right to cause
  you to forfeit: (i) any outstanding Restricted Stock and (ii) any
  gain recognized by you upon the vesting in the Restricted Stock during the
  period commencing twelve (12) months prior to your termination of employment
  or other relationship with the Company due to taking actions in competition
  with the company and ending twelve (12) months following such termination of
  employment or other relationship. Unless otherwise specified in an employment
  or other agreement between the Company and you, you take actions in
  competition with Company if you directly or indirectly, own, manage, operate,
  join or control, or participate in the ownership, management, operation or
  control of, or are a proprietor, director, officer, stockholder, member,
  partner or any employee or agent of, or a consultant to any business, firm,
  corporation, partnership or other entity which competes with any business in
  which the Company or any of its affiliates is engage during your employment
  or other relationship with the Company or its affiliates or at the time of
  your termination of employment or other relationship.

  
	
   

  	
   

  	
   

  
	
  Applicable
  Law

  	
   

  	
  This
  Agreement will be interpreted and enforced under the laws of the State of
  Maryland, other than any conflicts or choice of law rule or principle
  that might otherwise refer construction or interpretation of this Agreement
  to the substantive law of another jurisdiction.

  
	
   

  	
   

  	
   

  
	
  The
  Plan

  	
   

  	
  The
  text of the Plan is incorporated in this Agreement by reference. Certain capitalized terms used in this Agreement
  are defined in the Plan, and have the meaning set forth in the Plan.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  This
  Agreement and the Plan constitute the entire understanding

  

 

7

 

	
   

  	
   

  	
  between
  you and the Company regarding this grant of Restricted Stock. Any prior
  agreements, commitments or negotiations concerning this grant are superseded.

  
	
   

  	
   

  	
   

  
	
  Consent
  to Electronic Delivery

  	
   

  	
  The
  Company may choose to deliver certain statutory materials relating to the
  Plan in electronic form. By accepting this grant you agree that the Company
  may deliver the Plan prospectus and the Company’s annual report to you in an
  electronic format. If at any time you would prefer to receive paper copies of
  these documents, as you are entitled to, the Company would be pleased to
  provide copies. Please contact the Secretary of the Company to request paper
  copies of these documents.

  
	
   

  	
   

  	
   

  
	
  Other
  Agreements

  	
   

  	
  You agree, as a condition of this grant of Restricted Stock, that you
  will execute such document(s) as necessary to become a party to any
  shareholder agreement or voting trust as the Company may require.

  

 

By
signing the cover sheet of this Agreement, you agree to all of the terms and conditions
described above and in the Plan.

 

8

 

ASSIGNMENT SEPARATE FROM
CERTIFICATE

 

 

FOR VALUE RECEIVED,
                            hereby
sells, assigns and transfers unto Accellent Inc. (the “Company”),                             
(                    )
shares of common stock of the Company represented by Certificate No.    
herewith and does hereby irrevocable constitute and appoint
                            
Attorney to transfer the said stock on the books of the Company with full power
of substitution in the premises.

 

Dated:                        ,
2005

 

	
   

  	
   

  	
   

  
	
   

  	
  Print Name

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signature

  	
   

  

 

 

Spouse Consent (if
applicable)

 

                                             
(Purchaser’s spouse) indicates by the execution of this Assignment his or her
consent to be bound by the terms herein as to his or her interests, whether as
community property or otherwise, if any, in the shares of common stock of the
Company.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Signature

  	
   

  

 

 

INSTRUCTIONS: 
PLEASE DO NOT FILL IN ANY BLANKS OTHER THAN THE SIGNATURE LINE.

 

 

EXHIBIT B

 

ELECTION UNDER SECTION 83(b) OF

THE INTERNAL REVENUE CODE

 

The undersigned hereby makes
an election pursuant to Section 83(b) of the Internal Revenue Code
with respect to the property described below and supplies the following
information in accordance with the regulations promulgated thereunder:

 

1.                                       The name, address and social security number
of the undersigned:

 

Name:                                                                                                                                

 

Address:
                                                                                                                                                                                           

                                                                                                                                                                                           

 

Social Security No. :                                                                                         

 

2.                                       Description of property with respect to which
the election is being made:

 

                                   shares
of common stock, par value $.      per share, Accellent
Inc., (the “Company”).

 

3.                                       The date on which the property was transferred
is
                       
   , 2005.

 

4.                                       The taxable year to which this election
relates is calendar year 2005.

 

5.                                       Nature of restrictions to which the property
is subject:

 

The shares of stock are subject to the provisions of a Restricted Stock
Agreement between the undersigned and the Company.  The shares of stock are subject to forfeiture
under the terms of the Agreement.

 

6.                                       The fair market value of the property at the
time of transfer (determined without regard to any lapse restriction) was $                       
per share, for a total of $
                       .

 

7.                                       The amount paid by taxpayer for the property
was $                         .

 

8.                                       A copy of this statement has been furnished
to the Company.

 

	
  Dated:

  	
   

  	
  , 2005

  
	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Taxpayer’s Signature

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Taxpayer’s Printed Name

  	
   

  
					

 

 

PROCEDURES FOR MAKING ELECTION

UNDER INTERNAL REVENUE CODE SECTION 83(b)

 

The following procedures must
be followed with respect to the attached form for making an election under
Internal Revenue Code section 83(b) in order for the election to be
effective:(1)

 

1.                                       You must file one copy of the completed
election form with the IRS Service Center where you file your federal income
tax returns within 30 days after the Grant Date of your Restricted
Stock.

 

2.                                       At the same time you file the election form
with the IRS, you must also give a copy of the election form to the Secretary
of the Company.

 

3.                                      You must file another copy of the
election form with your federal income tax return (generally, Form 1040)
for the taxable year in which the stock is transferred to you.

 

(1)                                  Whether or not to make the election is your
decision and may create tax consequences for you.  You are advised to consult your tax advisor
if you are unsure whether or not to make the election.

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