Document:

Amendment Agreement No. 1 - Kingsbridge Capital Limited

 Exhibit 4.6C 
 EXECUTION VERSION 
 AMENDMENT
AGREEMENT NO. 1 
 THIS AMENDMENT AGREEMENT NO. 1
(the “Amendment Agreement”) is made as of the 20th day of November, 2009, by and between Kingsbridge Capital Limited, an entity organized and existing under the laws of the British Virgin Islands, whose registered address
is Palm Grove House, 2nd Floor, Road Town, Tortola, British Virgin Islands (the “Investor”), and Jazz Pharmaceuticals, Inc., a corporation organized and existing under the laws of the State of Delaware (the
“Company”). Capitalized terms used but not defined herein shall have the meanings ascribed to them in that certain Common Stock Purchase Agreement, dated as of May 7, 2008, by and between the Investor and the Company
(the “Purchase Agreement”). 
 RECITALS 
 WHEREAS, the Company and the Investor are parties to the Purchase Agreement and the Registration Rights Agreement;

 WHEREAS, pursuant to Section 2.4 of the Purchase Agreement, the Company issued the Warrant to the
Investor; 
 WHEREAS, in accordance with Section 10.6 of the Purchase Agreement, Section 4.5 of
the Registration Rights Agreement and Section 15 of the Warrant, the Company and the Investor desire to amend the Purchase Agreement, the Registration Rights Agreement and the Warrant, respectively, as set forth below; and 
 WHEREAS, the Company has filed, pursuant to Rule 477 under the Securities Act, an application for withdrawal of that
certain registration statement on Form S-3 (File No. 333-151590) filed by the Company on June 11, 2008 and declared effective by the Commission on June 19, 2008 (the “Prior Registration Statement”), and in
connection with the execution and delivery of this Amendment Agreement, intends to file a new registration statement under the Securities Act for the registration of the resale by the Investor of the Registrable Securities pursuant to terms of the
Registration Rights Agreement (as amended and modified by this Amendment Agreement) (the “New Registration Statement”). 
 NOW, THEREFORE, in consideration of the mutual agreements, covenants and considerations contained herein, the undersigned hereby agree as follows: 
 1. Amendments to the Purchase Agreement. 
 1.1 The following definitions set forth in Article I of the Purchase Agreement are hereby amended and restated to read in their entirety as follows: 
 “Draw Down Discount Price” means (i) 90.5% of the VWAP on any Trading Day during a Draw Down Pricing
Period when the VWAP equals or exceeds $2.50 but is less than $6.75, (ii) 91% of the VWAP on any Trading Day

  

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during the Draw Down Pricing Period when VWAP equals or exceeds $6.75 but is less than $8.00, (iii) 92% of the VWAP on any Trading Day during the Draw Down Pricing Period when VWAP equals or
exceeds $8.00 but is less than $12.00, (iv) 93% of the VWAP on any Trading Day during the Draw Down Pricing Period when VWAP equals or exceeds $12.00 but is less than $15.00, (v) 94% of the VWAP on any Trading Day during the Draw Down
Pricing Period when VWAP equals or exceeds $15.00 but is less than $17.50, or (vi) 95% of the VWAP on any Trading Day during the Draw Down Pricing Period when VWAP equals or exceeds $17.50. 
 “Liquidity Ratio” means thirty-five percent (35%). 
 “Material Adverse Effect” means any effect that is not negated, corrected, cured or otherwise remedied
within a reasonable period of time on the business, operations, properties or financial condition of the Company and its consolidated subsidiaries that is material and adverse to the Company and such subsidiaries, taken as a whole, and/or any
condition, circumstance, or situation that would prohibit or otherwise interfere with the ability of the Company to perform any of its obligations under this Agreement, the Registration Rights Agreement or the Warrant in any material respect;
provided, however, that none of the following shall constitute a “Material Adverse Effect”: (i) the effects of conditions or events that are generally applicable to the capital, financial, banking or currency markets or the
biotechnology or pharmaceutical industries; (ii) the effects of conditions or events that are reasonably expected to occur in the Company’s ordinary course of business (such as, by way of example only, failed clinical trials, serious
adverse events involving the Company’s product candidates or products, delays in product development or commercial launch, unfavorable regulatory determinations, difficulties in generating product sales or involving collaborators or
intellectual property disputes), except for purposes of Section 4.9 herein; (iii) any defaults under or breaches of that certain Senior Secured Note and Warrant Purchase Agreement, dated as of March 14, 2008, as amended, by and among
the Company, JPI Commercial, LLC, and the purchasers named therein, the 15% Senior Secured Notes issued pursuant thereto (the “Senior Notes”) and any other related agreements and documents, in each case as disclosed in the
Commission Documents (collectively, “Disclosed Defaults”), and the effects of conditions or events arising out of or resulting from Disclosed Defaults (excluding the holders of the Senior Notes accelerating the Senior Notes and
declaring all of the Senior Notes to be immediately due and payable); (iv) any changes or effects resulting from the announcement or consummation of any of the transactions contemplated by this Agreement, the Registration Rights Agreement, the
Warrant or any amendments or modifications hereto or thereto, including, without limitation, any changes or effects associated with any particular Draw Down; and (v) changes in the market price of the Common Stock. 
 “Maximum Draw Down Amount” means, at the Company’s option, the greater of (i) a maximum of 2.0% of
the Company’s Market Capitalization at the

  

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time of the Draw Down, or (ii) the lesser of (A) 3.75% of the Company’s Market Capitalization at the time of the Draw Down, or (B) the Alternative Draw Down Amount; provided,
however, that in no event may the Maximum Draw Down Amount exceed $25 million. 
 “Registration Rights
Agreement” means that certain Registration Rights Agreement, dated as of May 7, 2008, by and between the Investor and the Company, as amended on November 20, 2009. 
 “Registration Statement” shall have the meaning assigned to such term in the Registration Rights Agreement
(which, for the avoidance of doubt, shall not mean the Prior Registration Statement). 
 1.2 The following definitions
are hereby added to Article I of the Purchase Agreement and shall read in their entirety as follows: 
 “POSAM Suspension” shall have the meaning assigned to such term in the Registration Rights Agreement. 
 “Prior Registration Statement” means that certain registration statement on Form S-3 (File No. 333-151590) filed by the Company on June 11, 2008 and declared effective by the
Commission on June 19, 2008. 
 1.3 Section 3.3 of the Purchase Agreement is hereby amended and restated to
read in its entirety as follows: 
 Section 3.3 Limitations on Draw Downs. Only one Draw Down shall
be permitted for each Draw Down Pricing Period. In addition, the Company shall not issue a Draw Down Notice that designates as the first Trading Day of the Draw Down Pricing Period a Trading Day that is within the fifteen (15) consecutive
Trading Days immediately prior to a POSAM Suspension. 
 1.4 Section 3.6(b) of the Purchase Agreement is hereby
amended and restated to read in its entirety as follows: 
 (b) For each Trading Day during a Draw Down Pricing
Period on which the VWAP is less than the greater of (i) 90% of the Closing Price of the Company’s Common Stock on the Trading Day immediately preceding the commencement of such Draw Down Pricing Period, or (ii) $2.50, such Trading
Day shall not be used in calculating the number of Shares to be issued in connection with such Draw Down, and the Draw Down Amount in respect of such Draw Down Pricing Period shall be reduced by one eighth (1/8th) of the initial Draw Down
Amount specified in the Draw Down Notice. If trading in the Company’s Common Stock is suspended for any reason for more than three (3) consecutive or non-consecutive hours during any Trading Day during a Draw Down Pricing Period, such
Trading Day shall not be used in calculating the number of Shares to be issued in connection with such Draw Down, and the Draw

  

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Down Amount in respect of such Draw Down Pricing Period shall be reduced by one eighth (1/8th) of the initial Draw Down Amount specified in the Draw Down Notice. 
 1.5 Section 6.7 of the Purchase Agreement is hereby amended and restated to read in its entirety as follows: 
 6.7 Prohibited Transactions. Except as set forth on Schedule 6.7 of the Disclosure Schedule, during the term of this
Agreement, the Company shall not enter into any Prohibited Transaction without the prior written consent of the Investor, which consent may be withheld at the sole discretion of the Investor. For the purposes of this Agreement, the term
“Prohibited Transaction” shall refer to the issuance by the Company of any “future priced securities,” which shall mean the issuance of shares of Common Stock or securities of any type whatsoever that are, or may become,
convertible or exchangeable into shares of Common Stock where the purchase, conversion or exchange price for such Common Stock is determined using any floating discount or other post-issuance adjustable discount to the market price of Common Stock,
including, without limitation, pursuant to any equity line or other financing that is substantially similar to the financing provided for under this Agreement; provided, however, that a Prohibited Transaction shall not include any future issuance by
the Company of a convertible security (“Convertible Security”) that contains provisions that adjust the purchase, conversion or exchange price of such Convertible Security (i) in the event of stock splits, dividends,
distributions or similar events, (ii) in the event of or in connection with transactions customarily constituting or that may constitute a change in control of, or a fundamental change in, the Company, including pursuant to
“make-whole” provisions and the like, or (iii) pursuant to anti-dilution provisions. 
 1.6
Section 6.11 of the Purchase Agreement is hereby amended and restated to read in its entirety as follows: 
 6.11 Amendments to the Registration Statement. After the Registration Statement has been declared effective by the Commission, the Company shall not (a) file any amendment to the Registration Statement or make any amendment or
supplement to the Prospectus of which the Investor shall not have been previously or be simultaneously advised; provided, however, that the Company shall, to the extent it deems advisable, and without the prior consent of or notice to Investor,
supplement the Prospectus within one Trading Day following the Settlement Date for each Draw Down solely to reflect the issuance of Shares with respect to such Draw Down, and provided further, however, that the Company need not so advise the
Investor regarding any amendment or supplement the purpose of which is to update the Registration Statement and the Prospectus to include information the Company has previously or simultaneously filed with the Commission pursuant to Section 13
or 15(d) under the Exchange Act; and (b) so long as, in the reasonable opinion of counsel for the Investor, a Prospectus is required to be delivered in

  

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connection with sales of the Shares by the Investor, if the Company files any information, documents or reports that are incorporated by reference in the Registration Statement pursuant to the
Exchange Act, the Company shall, if requested in writing by the Investor, deliver a copy of such information, documents or reports to the Investor promptly following such filing to the extent such information, documents or reports are not available
on the Commission’s EDGAR filing system. 
 2. Amendments to the Registration Rights Agreement. 
 2.1 Sections 1.1(a) through 1.1(e) of the Registration Rights Agreement are hereby amended and restated to read in their entirety as
follows: 
 (a) Filing of the Registration Statement. Upon the terms and subject to the conditions set
forth in this Agreement, the Company shall file with the Commission on or before December 15, 2009 (or such other date as agreed in writing between the Company and the Investor) a registration statement under the Securities Act for the
registration of the resale by the Investor of the Registrable Securities, which such registration statement shall initially be on Form S-1 under the Securities Act or such other form as deemed appropriate by counsel to the Company for the
registration of the resale by the Investor of the Registrable Securities (such registration statement, the “Registration Statement”). 
 (b) Effectiveness of the Registration Statement; Conversion to Form S-3. The Company shall use commercially reasonable efforts (i) to have the Registration Statement declared effective by the
Commission as soon as reasonably practicable, but in any event no later than April 30, 2010 (the “Effectiveness Deadline”) and (ii) to ensure that the Registration Statement remains in effect throughout the term of this
Agreement as set forth in Section 4.2, subject to the terms and conditions of this Agreement. In the event that the Registration Statement, as initially declared effective by the Commission, is a registration statement on Form S-1 under the
Securities Act, then the Company shall use commercially reasonable efforts to convert such Registration Statement to a registration statement on Form S-3 under the Securities Act as soon as reasonably practicable following the Form S-3 Eligibility
Date; provided, however, that in no event shall the Company be obligated to convert such Registration Statement as aforesaid prior to the Effectiveness Deadline. For purposes of this Agreement, the “Form S-3 Eligibility Date” shall
be the date that the Company shall, upon advice of counsel to the Company, become eligible to use Form S-3 for the registration of the resale by the Investor of the Registrable Securities; provided, however, that the Form S-3 Eligibility Date shall
in all cases be subject to any determinations by the Commission with respect thereto. 
 (c) Regulatory
Disapproval. The contemplated effective date for the Registration Statement as described in Section 1.1(b) shall be extended without default or liquidated damages hereunder or under the Purchase Agreement (and

  

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without the ability of the Investor to terminate the Purchase Agreement pursuant to Section 8.2(b) thereof) in the event that the Company’s failure to obtain the effectiveness of the
Registration Statement on a timely basis results from (i) the failure of the Investor to timely provide the Company with information requested by the Company and necessary to complete the Registration Statement in accordance with the
requirements of the Securities Act, or (ii) the Commission’s disapproval of the structure of the transactions contemplated by the Purchase Agreement, or (iii) a determination by the Commission (including any initial determination
included in any Commission staff comment letter received by the Company with respect to the Registration Statement) that either the Company or the Investor is ineligible to rely on Rule 415 under the Securities Act with respect to (or that Rule 415
is otherwise unavailable or may not be relied upon with respect to) the registration of any or all of the Registrable Securities for resale by the Investor, or (iv) events or circumstances that are not in any way attributable to the Company. In
the event of clauses (ii) and (iii) above, the parties agree to cooperate with one another in good faith to arrive at a resolution acceptable to the Commission. 
 (d) Failure to Maintain Effectiveness of Registration Statement. In the event the Company fails to maintain the
effectiveness of the Registration Statement (or the Prospectus) throughout the period set forth in Section 4.2, other than POSAM Suspensions (as defined below) or temporary suspensions as set forth in Section 1.1(e), and the Investor holds
any Registrable Securities at any time during the period of such ineffectiveness (an “Ineffective Period”), and provided that such failure to maintain effectiveness was within the reasonable control of the Company, the Company shall
pay on demand to the Investor in immediately available funds into an account designated by the Investor an amount equal to the product of (i) the total number of Registrable Securities issued to the Investor under the Purchase Agreement (which,
for the avoidance of doubt, shall not include any Warrant Shares) and owned by the Investor at any time during such Ineffective Period (and not otherwise sold, hypothecated or transferred) and (ii) the result, if greater than zero, obtained by
subtracting the VWAP on the Trading Day immediately following the last day of such Ineffective Period from the VWAP on the Trading Day immediately preceding the day on which any such Ineffective Period began; provided, however, that (A) the
foregoing payments shall not apply in respect of Registrable Securities (I) that are otherwise freely tradable by the Investor, including pursuant to Rule 144 under the Securities Act (as such Rule may be amended from time to time,
“Rule 144”) or (II) if the Company offers to repurchase from the Investor such Registrable Securities for a per share purchase price equal to the VWAP on the Trading Day immediately preceding the day on which any such Ineffective
Period began and (B) unless otherwise required by any applicable federal and state securities laws, the Company shall be under no obligation to supplement the Prospectus to reflect the issuance of any Shares pursuant to a Draw Down at any time
prior to the day following the Settlement Date with respect to such Shares and that the failure to

  

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supplement the Prospectus prior to such time shall not be deemed a failure to maintain the effectiveness of the Registration Statement (or Prospectus) for purposes of this Agreement (including
this Section 1.1(d)). For purposes of this Section 1.1(d), a “POSAM Suspension” shall mean the suspension of effectiveness of the Registration Statement as the result of the filing of a post-effective amendment to the
Registration Statement (x) when required pursuant to Section 10(a)(3) under the Securities Act or Item 512(a)(1) of Regulation S-K, or (y) to convert the Registration Statement from a registration statement on Form S-1 under the
Securities Act to a registration statement on Form S-3 under the Securities Act. 
 (e) Deferral or Suspension
During a Blackout Period. Notwithstanding the provisions of Section 1.1(d), if in the good faith judgment of the Company, following consultation with legal counsel, it would be detrimental to the Company or its stockholders for the
Registration Statement to be filed or for resales of Registrable Securities to be made pursuant to the Registration Statement due to (i) the existence of a material development or potential material development involving the Company that the
Company would be obligated to disclose or incorporate by reference in the Registration Statement and which the Company has not disclosed, or which disclosure would be premature or otherwise inadvisable at such time or would have a Material Adverse
Effect on the Company or its stockholders, or (ii) a filing of a Company-initiated registration of any class of its equity securities, which, in the good faith judgment of the Company, would adversely effect or require premature disclosure of
the filing of such Company-initiated registration (notice thereof, a “Blackout Notice”), the Company shall have the right to (A) immediately defer such filing for a period of not more than sixty (60) days beyond the date
by which such Registration Statement was otherwise required hereunder to be filed or (B) suspend use of such Registration Statement for a period of not more than thirty (30) days (any such deferral or suspension period, a “Blackout
Period”). The Investor acknowledges that it would be seriously detrimental to the Company and its stockholders for such Registration Statement to be filed (or remain in effect) during a Blackout Period and therefore essential to defer such
filing (or suspend the use thereof) during such Blackout Period and agrees to cease any disposition of the Registrable Securities during such Blackout Period. The Company may not utilize any of its rights under this Section 1.1(e) to defer the
filing of a Registration Statement (or suspend its effectiveness) more than six (6) times in any twelve (12) month period. In the event that, during the applicable Blackout Damages Period (as defined below), the Company gives a Blackout
Notice to the Investor and the VWAP on the Trading Day immediately preceding such Blackout Period (“Old VWAP”) is greater than the VWAP on the first Trading Day following such Blackout Period that the Investor may sell its
Registrable Securities pursuant to an effective Registration Statement (“New VWAP”), then the Company shall pay to the Investor, by wire transfer of immediately available funds to an account designated by the Investor, the Blackout
Amount. For the purposes of this Agreement, “Blackout Amount”

  

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means a percentage equal to: (1) seventy-five percent (75%) if such Blackout Notice is delivered prior to the fifth (5th) Trading Day following such Settlement Date; (2) fifty
percent (50%) if such Blackout Notice is delivered on or after the fifth (5th) Trading Day following such Settlement Date, but prior to the tenth (10th) Trading Day following such Settlement Date; (3) twenty-five percent
(25%) if such Blackout Notice is delivered on or after the tenth (10th) Trading Day following such Settlement Date, but prior to the fifteenth (15th) Trading Day following such Settlement Date; and (4) zero percent (0%)
thereafter (such percentage, as applicable, the “Applicable Percentage”) of: the product of (i) the number of Registrable Securities purchased by the Investor pursuant to the most recent Draw Down and actually held by the
Investor immediately prior to the Blackout Period and (ii) the result, if greater than zero, obtained by subtracting the New VWAP from the Old VWAP (such product, the “Blackout Product”); provided, however, that if on the
Trading Day immediately preceding such Blackout Period the Registration Statement is then a registration statement on Form S-1 under the Securities Act, then the Blackout Amount shall be calculated solely by reference to the Blackout Product and not
by the Applicable Percentage of the Blackout Product. Notwithstanding anything in the foregoing to the contrary, no Blackout Amount shall be payable in respect of Registrable Securities (x) that are otherwise freely tradable by the Investor,
including under Rule 144, during the Blackout Period or (y) if the Company offers to repurchase from the Investor such Registrable Securities for a per share purchase price equal to the VWAP on the Trading Day immediately preceding the day on
which any such Blackout Period began. For any Blackout Period in respect of which a Blackout Amount becomes due and payable, rather than paying the Blackout Amount, the Company may at is sole discretion, issue to the Investor shares of Common Stock
with an aggregate market value determined as of the first Trading Day following such Blackout Period equal to the Blackout Amount (“Blackout Shares”). For purposes of this Agreement, the “Blackout Damages Period”
means, as applicable: (i) if on the Trading Day immediately preceding the applicable Blackout Period the Registration Statement is then a registration statement on Form S-3 under the Securities Act, the period beginning on any Settlement Date
and ending on the fifteenth (15th) Trading Day following such Settlement Date; or (ii) if on the Trading Day immediately preceding the applicable Blackout Period the Registration Statement is then a registration statement on Form S-1 under
the Securities Act, the period beginning on any Settlement Date and ending on the tenth (10th) Trading Day following such Settlement Date. 
 2.2 Section 4.2
of the Registration Rights Agreement is hereby amended and restated to read in its entirety as follows: 
 Section 4.2 Term. The registration rights provided to the holders of Registrable Securities hereunder, and the Company’s obligation to keep the Registration Statement effective, shall terminate at the earlier of
(a) such time that is one year following the termination of the Purchase Agreement, (b) such time as all Registrable Securities have been issued and have ceased to be Registrable

  

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Securities, or (c) upon the consummation of an “Excluded Merger or Sale” as defined in the Warrant or an event described in the last sentence of Section 6(d) or
Section 6(e) of the Warrant. Notwithstanding the foregoing, Section 1.1(d), Article III, Section 4.7, Section 4.8, Section 4.9, Section 4.10, Section 4.11 and Section 4.13 shall survive the termination of this
Agreement. 
 3. Amendment to the Warrant. The definition of “Exercise Price” in Section 1 of the
Warrant is hereby amended and restated to read in its entirety as follows: 
 “Exercise Price”
shall mean nine dollars and twenty cents ($9.20) per Warrant Share, as the same may be adjusted from time to time pursuant to Section 6 hereof. 
 4. Prior Registration Statement. The Investor hereby (i) acknowledges that the Company has filed an application for withdrawal of the Prior Registration Statement pursuant to Rule 477
under the Securities Act, reaffirms its consent to the same, and acknowledges and agrees that no sales or issuances of Registrable Securities may be made thereunder, (ii) acknowledges and agrees that any and all agreements and covenants of the
Company in the Purchase Agreement and the Registration Rights Agreement with respect to the Prior Registration Statement shall terminate and have no further force or effect as of the date hereof, and (iii) waives any failure by the Company to
comply with the provisions of the Purchase Agreement or the Registration Rights Agreement concerning the Prior Registration Statement (including with respect to any of the Company’s actions or inactions with respect to the Prior Registration
Statement). 
 5. Representations and Warranties. Each of the Company and the Investor (together, the
“Parties” and each, a “Party”) represents and warrants as follows (which representations and warranties shall survive the execution and delivery of this Amendment Agreement until the termination of the
Purchase Agreement): 
 5.1 The execution, delivery and performance of this Amendment Agreement by such Party and the
consummation by it of the transactions contemplated hereby have been duly authorized by all necessary corporate action, and no further consent or authorization of such Party, its Board of Directors or stockholders is required (other than as
contemplated by Section 6.5 of the Purchase Agreement). 
 5.2 This Amendment Agreement has been duly executed and
delivered by such Party and constitutes a valid and binding obligation of such Party enforceable against such Party in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, securities, insolvency,
reorganization, moratorium, liquidation, conservatorship, receivership, or similar laws relating to, or affecting generally the enforcement of creditor’s rights and remedies or indemnification or by other equitable principles of general
application. 
 5.3 Such Party’s representations and warranties set forth in the Purchase Agreement are true and
correct in all material respects as though made on and as of the date hereof (except for such representations and warranties that are made as of a particular date). In

  

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addition, the Investor hereby acknowledges and reaffirms its representations, warranties and covenants included in that certain Representation Letter dated May 7, 2008 (the
“Investor Representation Letter”). 
 6. Effect of Amendment Agreement. 
 6.1 All provisions of the Purchase Agreement, the Registration Rights Agreement, the Warrant and the Investor Representation Letter
(collectively, the “CEFF Agreements” and each, a “CEFF Agreement”), except as amended and modified by this Amendment Agreement, shall remain in full force and effect and are reaffirmed. Other than as
stated in this Amendment Agreement, this Amendment Agreement shall not operate as a waiver of any condition or obligation imposed on the Parties under the CEFF Agreements. 
 6.2 The term “Agreement”, “hereof”, “herein”, “hereunder” and similar terms as used in a
particular CEFF Agreement, and references in each other CEFF Agreement to such CEFF Agreement, shall mean and refer to, from and after the date hereof, such CEFF Agreement as amended and modified by this Amendment Agreement. 
 6.3 The Parties hereto acknowledge and understand that as a result of the execution and delivery of this Amendment Agreement, among
other things, the Effective Date shall be first Trading Day immediately following the date on which the New Registration Statement is declared effective by the Commission. 
 6.4 In the event of any conflict, inconsistency, or incongruity between any provision of this Amendment Agreement and any provision
of the CEFF Agreements, the provisions of this Amendment Agreement shall govern and control. 
 7. Entire
Agreement. The Purchase Agreement, the Registration Rights Agreement and the Warrant (each as amended and modified by this Amendment Agreement), together with this Amendment Agreement, set forth the entire agreement and understanding of the
parties relating to the subject matter hereof and supersedes all prior and contemporaneous agreements, negotiations and understandings between the parties, both oral and written, relating to the subject matter hereof. 
 8. Legal Fees and Expenses. Each Party shall bear its own legal fees and other expenses incurred in connection with this
Amendment Agreement; provided, however, that, notwithstanding the limitation set forth in the final clause of Section 10.1(a) of the Purchase Agreement, the Company shall pay the reasonable, documented attorneys fees and expenses,
not to exceed $25,000, incurred by the Investor in connection with the preparation, negotiation, execution and delivery of this Amendment Agreement and the review of the New Registration Statement. 
 9. Title and Subtitles. The titles and subtitles used in this Amendment Agreement are used for the convenience of reference
and are not to be considered in construing or interpreting this Amendment Agreement. 
  

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 10. Counterparts. This Amendment Agreement may be executed in multiple
counterparts, each of which may be executed by less than all of the Parties and shall be deemed to be an original instrument which shall be enforceable against the Parties actually executing such counterparts and all of which together shall
constitute one and the same instrument. 
 11. Choice of Law. This Amendment Agreement shall be construed under
the laws of the State of New York. 
 [Remainder of this page intentionally left blank] 
  

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 IN WITNESS WHEREOF, the Parties hereto have caused this Amendment Agreement to be duly
executed by their respective authorized officer as of the date set forth above. 
  

			
	KINGSBRIDGE CAPITAL LIMITED
		
	By:	 	 /s/ TONY GARDNER-HILLMAN

		 	Tony Gardner-Hillman
		 	Managing Director
	
	JAZZ PHARMACEUTICALS, INC.
		
	By:	 	 /s/ BRUCE C. COZADD

		 	Bruce C. Cozadd
		 	Chairman and Chief Executive Officer

  

 12Unassociated Document

     

    
      
        EXHIBIT
4.2

      

      

      BAYTEX
ENERGY TRUST

       

      TRUST
UNIT RIGHTS INCENTIVE PLAN

       

      This
document sets out the terms and conditions of the Trust Unit Rights Incentive
Plan (the "Plan") of
Baytex Energy Trust (the "Trust").  The Plan
was approved by the board of directors (the "Board") of Baytex Energy Ltd.
("Baytex") on
March 9, 2009, subject to approval by the unitholders of the Trust ("Unitholders") on May 20,
2009 (the "Effective
Date").  Certain amendments to Sections 9 and 10 and the
addition of Section 20 were approved by the Board on November 16,
2009.

      

      
        	
                1.

              	
                The
      purpose of the Plan is to provide directors, officers, consultants,
      employees and other service providers, as designated from time to time by
      the Board of Baytex (all of which are hereinafter called "Service Providers"), of
      the Trust and any of its subsidiaries, including Baytex, with an
      opportunity to acquire rights ("Rights") to acquire
      trust units of the Trust ("Units").  This
      will provide an increased incentive for these Service Providers to
      contribute to the future success of the
Trust.

              

      

       

      
        	
                2.

              	
                The
      Plan shall come into effect on the Effective Date and shall be approved by
      Unitholders every three years
thereafter.

              

      

       

      
        	
                3.

              	
                Unless
      otherwise approved by the Toronto Stock Exchange ("TSX") and Unitholders,
      the Trust will set aside and reserve for issuance under the Plan up to 10%
      of the aggregate number of issued and outstanding Units plus the number of
      Units which may be issued on the exchange of all outstanding exchangeable
      shares of any subsidiary of the Trust (collectively, the "Total
      Units").  Any increase in the issued and outstanding
      Total Units will result in an increase in the available number of Units
      issuable under the Plan, and any exercises of Rights will create an
      equivalent number of Units available under the
  Plan.

              

      

       

      
        	
                4.

              	
                In
      accordance with the rules of the TSX, the number of Units: (a) issued to
      Insiders within a one year period; and (b) issuable to Insiders, at any
      time under the Plan, or when combined with all other securities based
      compensation arrangements of the Trust, cannot exceed 10% of the Total
      Units.  The following restrictions will apply to the
      participation of non-management directors under the Plan: (i) the
      aggregate number of Units issuable to non-management directors, at any
      time under the Plan, cannot exceed 1% of the Total Units; and
      (ii) the value of the Rights granted to any one non-management
      director during a calendar year, as calculated at the Grant Date (as
      defined below), cannot exceed
$100,000.

              

      

       

      
        	
                5.

              	
                Rights
      shall be granted by the Board from time to time, at its sole discretion,
      to Service Providers, provided that the aggregate number of Rights held by
      any single holder of Rights at any given time cannot exceed 1% of the
      Total Units.  No Service Provider shall have any entitlement to
      be granted Rights hereunder, except as may be specifically granted by the
      Board.

              

      

       

      
        	
                6.

              	
                Rights
      granted under the Plan may not be assigned or transferred by a holder
      thereof.

              

      

       

      
        	
                7.

              	
                The
      Plan is subject to the approval of the TSX and no Rights which may be
      granted prior to the receipt of such approval may be exercised until such
      approval has been received.

              

      

       

      
        	
                8.

              	
                Subject
      to the restrictions on exercise set out in paragraph 7 above and subject
      to paragraphs 12, 13, 14 and 16 below, Rights granted under the Plan may
      be exercised during a period (the "Exercise Period") not
      exceeding five (5) years from the date upon which the Rights were granted
      (the "Grant
      Date"), pursuant to vesting schedules determined by the Board in
      its sole discretion.  At the expiration of the Exercise Period
      (the "Expiry
      Date"), any Rights which have not been exercised shall expire and
      become null and void.  If the Expiry Date of any Rights falls
      within any Blackout Period (as defined below) or within ten business days
      (being a day other than a Saturday, Sunday or any other day when banks are
      generally not open in the City of Calgary for the transaction of business)
      following the end of any Blackout Period (the "Restricted Rights"),
      then the Expiry Date of such Restricted Rights shall, without any further
      action, be extended to the date that is ten business days, following the
      end such Blackout Period.  The foregoing extension applies to
      all Rights whatever the Grant Date and shall not be considered an
      extension of the term of the Rights as referred to in paragraph 12
      hereof.  Unless approved by the Board, no Rights may be
      exercised by a holder during a Blackout Period which is applicable to such
      holder.

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                9.

              	
                The
      grant price ("Grant
      Price") per Right granted hereunder shall be not less than the
      closing price of the Units on the TSX (or, in the case of Service
      Providers working in the United States, the New York Stock Exchange (the
      "NYSE")) on the
      trading day immediately preceding the Grant Date (or, if the Units are not
      then listed and posted for trading on the TSX or the NYSE, such price as
      required by such stock exchange on which such Units are listed and posted
      for trading as may be selected for such purpose by the
      Board).  In the event that the Units are not listed and posted
      for trading on any stock exchange, the Grant Price shall be determined by
      the Board in its sole discretion.  Notwithstanding the
      foregoing, in certain circumstances, such as when a Right is offered to an
      individual as an inducement to secure employment, the Grant Price may be
      otherwise determined, but only with the prior consent of all stock
      exchanges on which the Units are at that time
  listed.

              

      

       

      
        
          	
                  
                    10.

                  

                	
                  
                    (a)

                  

                	
                  For
      Service Providers that are subject to income taxes in the United States,
      the exercise price ("Exercise Price") per
      Right granted hereunder shall be equal to the Grant
  Price.

                

        

         

      

      
        	
                 
      

              	
                (b)

              	
                For
      Service Providers that are not subject to income taxes in the United
      States, the Exercise Price per Right granted hereunder shall be calculated
      by deducting from the Grant Price all monthly distributions (whether
      payable in cash, in securities or in any other assets of the Trust, but
      excluding a distribution of Units pursuant to the Trust's trust indenture
      that is followed by a consolidation of the Units pursuant to the trust
      indenture), on a per Unit basis, made by the Trust after the Grant Date
      where the aggregate amount of all such monthly distributions represent a
      return of more than 0.833% of the Trust's recorded cost of oil and natural
      gas properties less accumulated depreciation and depletion and any future
      income tax liability associated with such oil and natural gas properties
      at the end of that month.  For greater certainty, where a Grant
      Date falls other than on the first day of a calendar month, the per Unit
      amount of the distribution deducted from the Grant Price for that calendar
      month shall be pro-rated from the Grant Date to the end of such calendar
      month.  The reduction of the Exercise Price of any outstanding
      Rights pursuant to this paragraph shall not be considered a reduction for
      purposes of paragraph 12 hereof.  The Board may establish a
      minimum Grant Price and/or Exercise Price, provided that in no event shall
      the Exercise Price be less than
$1.00.

              

      

       

      
        	
                11.

              	
                The
      Plan shall be administered by the Board.  However,
      notwithstanding the foregoing or anything else contained in this Plan (and
      subject to compliance with applicable laws): (a) the Board may delegate
      the administration of the Plan (or any part thereof) to a committee of
      directors (a "Committee") appointed
      from time to time by the Board; and (b) the Board (or the Committee as its
      delegatee) may delegate the administration of the Plan (or any part
      thereof) to the Chief Executive Officer of Baytex (the "CEO") pursuant to rules
      of procedure fixed by the Board or the Committee, as
      applicable.  If the administration of the Plan is delegated (in
      whole or in part) to a Committee or to the CEO, references herein to the
      "Board" shall be
      to such Committee or CEO, where
applicable.

              

      

       

      
        	
                12.

              	
                The
      Plan and any outstanding Rights granted pursuant to the Plan may be
      amended, modified or terminated by the Board without approval of
      Unitholders subject to any required approval of the
      TSX.  Notwithstanding the foregoing, the Plan or any Rights
      granted pursuant to the Plan may not be amended without approval of
      Unitholders to: (a) increase the percentage of Units issuable on
      exercise of outstanding Rights at any time pursuant to paragraph 3
      hereof; (b) reduce the Exercise Price of any outstanding Rights or
      cancel and re-issue any Rights granted pursuant to the Plan;
      (c) extend the Expiry Date of any outstanding Rights; (d) permit
      a holder to transfer or assign Rights to a new beneficial holder other
      than for estate settlement purposes; (e) increase the number of Units
      that may be issued to Insiders above the restriction contained in
      paragraph 4; (f) increase the restrictions contained in
      paragraph 4 regarding the participation of non-management directors
      under the Plan; or (g) amend this paragraph 12.  If
      after the Effective Date, non-management directors cease to be eligible to
      participate in the Plan, any amendment to the Plan to re-introduce their
      participation must be approved by Unitholders.  In addition, no
      amendment to the Plan or Rights granted pursuant to the Plan may be made
      without the consent of the holder, if it adversely alters or impairs any
      Right previously granted to such holder under the
  Plan.

              

      

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      
        	
                13.

              	
                Upon
      any holder of Rights ceasing to be a Service Provider for any reason
      whatsoever, other than the death of such holder of Rights, during the
      Exercise Period, all Rights which have not vested at such date shall
      terminate and become null and void, and such holder of Rights shall have
      until the earlier of:

              

      

       

      
        	
                 
      

              	
                (a)

              	
                30
      days from the date such holder of Rights ceased to be a Service Provider;
      or

              

      

       

      
        	
                 
      

              	
                (b)

              	
                the
      Expiry Date,

              

      

       

      
        to
exercise the portions of any outstanding Rights which have vested in such holder
of right pursuant to paragraph 8 above and, at the expiration of such 30
day period, any vested Rights which have not been so exercised shall terminate
and become null and void; provided that upon the termination of any employee for
cause, the Board may, in its sole discretion, determine that all vested Rights
which have not been exercised shall immediately terminate and become null and
void.

      

       

      
        	
                14.

              	
                Upon
      the death of any individual holder of Rights during the Exercise Period,
      all Rights which have not vested at such date shall terminate and become
      null and void, and the executor, administrator or personal representative
      of such holder of Rights shall have until the earlier
  of:

              

      

       

      
        	
                 
      

              	
                (a)

              	
                6
      months from
      the date of the death of such holder of Rights;
  or

              

      

       

      
        	
                 
      

              	
                (b)

              	
                the
      Expiry Date,

              

      

       

      to
exercise those outstanding Rights which had vested in such holder of right
pursuant to paragraph 8 above as at the date of death and, at the
expiration of such 6 month period, any vested Rights which have not been
exercised shall terminate and become null and void.

       

      
        	
                15.

              	
                Rights
      granted hereunder shall be exercisable by a holder of Rights by delivering
      written notice in the form attached as Schedule "A" hereto to the Trust
      specifying the number of Rights being exercised, accompanied by payment in
      full of the Exercise Price for the number of Rights for which such
      exercise is made.  The calculation of the Exercise Price shall
      be ratified and confirmed by the Chief Financial Officer of Baytex. (In
      the event of the exercise of Rights by the Chief Financial Officer, the
      calculation of the Exercise Price shall be ratified and confirmed by the
      Chief Executive Officer).  Upon receipt of such notice made in
      accordance with the terms and conditions of the Plan, the Trust shall
      cause to be issued, and deliver to such holder of Rights, a certificate
      representing the Units for which such Rights have been
      exercised.

              

      

       

      
        	
                16.

              	
                Notwithstanding
      any other provision in this Plan, if a Change of Control (as defined
      below) occurs during any Exercise Period of any Rights granted hereunder,
      Baytex shall give notice of such Change of Control to all Service
      Providers at least 14 days before the
      anticipated effective date of such Change of Control.  Each Service
      Provider shall have the right, whether or not such notice is given to it
      by Baytex, to exercise their unvested Rights and any vested Rights which
      have not previously been purchased conditional on the completion of the
      Change of Control (such Rights to be deemed to be exercised prior to the
      effective time of the Change of Control) (a "Conditional
      Exercise").  All Rights not exercised prior to the effective
      time of the Change of Control shall be and shall be deemed to have been
      cancelled immediately prior to the effective time of the Change of Control
      and shall be of no further force or effect.  If for any reason
      such Change of Control is not effected, the Conditional Exercise shall
      become null and void.

              

      

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      For the
purposes of this clause, "Change of Control" means (and
shall be deemed to occur upon the effective date of the earlier of any of the
following events, provided that such event results in an actual Change of
Control of the Trust or Baytex):

       

      
        	
                 
      

              	
                (a)

              	
                a
      successful "take-over bid" (as defined in the Securities Act
      (Alberta)), as amended, or any successor legislation thereto, pursuant to
      which the "offeror" would as a result of such take-over bid, if
      successful, beneficially own in excess of 50% of the outstanding Total
      Units or common shares of Baytex;

              

      

       

      
        	
                 
      

              	
                (b)

              	
                the
      issuance to or acquisition by any person, or group of persons acting in
      concert, of Units which in the aggregate total 50% or more of the then
      issued and outstanding Total Units;

              

      

       

      
        	
                 
      

              	
                (c)

              	
                the
      sale of all or substantially all of the assets of Baytex;
    and

              

      

       

      
        	
                 
      

              	
                (d)

              	
                the
      termination of the Trust,

              

      

       

      provided
that notwithstanding the application of any of the foregoing, a change of
control shall be deemed to not have occurred:

       

      
        	
                 
      

              	
                (e)

              	
                pursuant
      to an arrangement, merger or other from of reorganization of the Trust
      where the holders of the outstanding voting securities or interests of the
      Trust immediately prior to the completion of the reorganization will hold
      more than 90% of the outstanding voting securities or interests of the
      continuing entity upon completion of the reorganization;
  or

              

      

       

      
        	
                 
      

              	
                (f)

              	
                if
      a majority of the Board determines that in substance the arrangement,
      merger or reorganization are such that a change of control should be
      deemed to not have occurred and any such determination shall be binding
      and conclusive for all purposes of the
Plan.

              

      

       

      
        
          	
                  17. 
      

                	
                  (a)

                	
                  In
      the event, during any Exercise Period of any Rights granted hereunder, of
      any consolidation, subdivision, re-division or change of the Units into a
      greater or lesser number of Units, then such outstanding Rights shall be
      deemed to be amended to be for such greater or lesser number of Units as
      would have resulted if the Units represented by such Rights had been
      issued and outstanding at the date of such consolidation, subdivision,
      re-division or change, and the Exercise Price shall be deemed to be
      adjusted on a pro rata basis.

                

        

         

      

      
        	
                 
      

              	
                (b)

              	
                In
      the event of any other capital reorganization of the Trust during any
      Exercise Period of any Rights granted hereunder not otherwise covered in
      subparagraph 17(a), or an amalgamation or merger (whether by plan of
      arrangement or otherwise) of the Trust and/or Baytex with or into any
      other entity or the sale of the properties and assets of the Trust (and
      the assets of its direct or indirect subsidiaries) as (or substantially
      as) an entirety to any other entity (and whether or not involving one or
      more third party entities) and provided that such event is not a Change of
      Control, each holder of Rights (if the holder has not exercised their
      Rights prior to the effective date of such capital reorganization,
      amalgamation, merger or sale) shall be entitled to receive and shall
      accept in exchange for the Rights then held by such holder, such number of
      rights or options (or similar securities) (the "New Securities") to
      acquire such number and type of securities of the entity resulting from
      such capital reorganization, amalgamation or merger or to which such sale
      may be made, as the case may be, (the "New Entity") and
      exercisable at such exercise price and terms of vesting, as is comparable
      to the Exercise Price and terms of vesting of the Rights, as the Board may
      determine in its absolute discretion, but subject in all cases to the
      receipt of any required regulatory and Unitholder
      approvals.  The New Securities will be subject to the terms of
      any incentive plan governing the New Securities implemented by the New
      Entity.  For greater certainty, the exchange of Rights for New
      Securities will be evidenced by the cancellation of the Rights and the
      grant of the New Securities.  Upon the issuance of such New
      Securities to the holder in exchange for its Rights, the obligation of the
      Trust to the holder in respect of the Rights so exchanged shall terminate
      and be at an end and the holder shall cease to have any further rights in
      respect thereof.

              

      

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      
        	
                18.

              	
                The
      granting of Rights hereunder to any holder of Rights shall not obligate
      such holder of Rights to exercise such Rights or any portion
      thereof.

              

      

       

      
        	
                19.

              	
                In
      this Plan the following terms shall have the meaning set forth
      below:

              

      

       

      
        	
                 
      

              	
                (a)

              	
                "Blackout Period" means a
      period of time imposed by the Board pursuant to the policies of Baytex
      upon certain holders during which those persons may not trade in any
      securities of the Trust; and

              

      

       

      
        	
                 
      

              	
                (b)

              	
                "Insider" has the meaning
      set forth in Company Manual of the
TSX.

              

      

       

      
        	
                20.

              	
                Notwithstanding
      any provision of the Plan to the contrary, the provisions of the Plan and
      Rights granted hereunder are intended to comply with or are exempt from
      Section 409A of the United States Internal Revenue Code of 1986, as
      amended, and its implementing regulations or guidance ("Section 409A"), and all
      provisions of the Plan and Rights granted hereunder shall be construed and
      interpreted in a manner consistent with the requirements of
      Section 409A, as applicable.

              

      

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      SCHEDULE
"A"

       

      NOTICE
OF EXERCISE OF UNIT RIGHTS

       

      To:             Baytex
Energy Trust (the "Trust")

       

      The
undersigned holder of Rights hereby gives notice of intention to exercise Rights
to purchase ______________ Units of the Trust granted on
__________________________________, 20___, at the following Exercise
Price:

       

      
        
          	
                  Grant
      Price

                	
                  ($_________.___)

                
	 	 
	
                  Exercise
      Price

                	
                  ($_________.___)

                

        

      

       

      Payment
in full of the aggregate Exercise Price for the total number of Rights being
exercised is enclosed.

      

      
        	 
      	 
      	 
      
	
                Date

              	 
      	
                Signature
      of Holder of Rights

                 

                 

              
	 
      	 
      	
                Name
      (please print)

                 

                 

              
	 
      	 
      	
                Address

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                Please
      have my Unit certificate sent to me at:

              	 
      	
                ____above
      address

                ____c/o
      2200, 205 – 5th
      Avenue S.W.

                Calgary, Alberta

                T2P 2V7

              
	 
      	 
      	 
      
	
                RATIFIED
      AND CONFIRMED this

                 _____________
      day of _________, 20__

              	 
      	 
      
	
                BAYTEX
      ENERGY LTD.

                 

                 

                Per:______________________________

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