Document:

exv10w43

 

EXHIBIT 10.43

THE SPECTRANETICS CORPORATION

2006 INCENTIVE AWARD PLAN

ARTICLE 1.

PURPOSE

     
The purpose of the Spectranetics Corporation 2006 Incentive
Award Plan (the “Plan”) is to promote the
success and enhance the value of The Spectranetics Corporation
(the “Company”) by linking the personal
interests of the members of the Board, Employees, and
Consultants to those of Company stockholders and by providing
such individuals with an incentive for outstanding performance
to generate superior returns to Company stockholders. The Plan
is further intended to provide flexibility to the Company in its
ability to motivate, attract, and retain the services of members
of the Board, Employees, and Consultants upon whose judgment,
interest, and special effort the successful conduct of the
Company’s operation is largely dependent.

ARTICLE 2.

DEFINITIONS AND CONSTRUCTIONS

     
Wherever the following terms are used in the Plan they shall
have the meanings specified below, unless the context clearly
indicates otherwise. The singular pronoun shall include the
plural where the context so indicates.

     
2.1     “Award”
means an Option, a Restricted Stock award, a Stock Appreciation
Right award, a Performance Share award, a Performance Stock Unit
award, a Dividend Equivalents award, a Stock Payment award, a
Deferred Stock award, a Restricted Stock Unit award, a
Performance Bonus Award, or a Performance-Based Award granted to
a Participant pursuant to the Plan.

     
2.2     “Award
Agreement” means any written agreement, contract,
or other instrument or document evidencing an Award, including
through electronic medium.

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

     
2.4     “Change in
Control” means and includes each of the following:

		
	 	     
    (a) A transaction or series of transactions (other than an
    offering of Stock to the general public through a registration
    statement filed with the Securities and Exchange Commission)
    whereby any “person” or related “group” of
    “persons” (as such terms are used in
    Sections 13(d) and 14(d)(2) of the Exchange Act) (other
    than the Company, any of its subsidiaries, an employee benefit
    plan maintained by the Company or any of its subsidiaries or a
    “person” that, prior to such transaction, directly or
    indirectly controls, is controlled by, or is under common
    control with, the Company) directly or indirectly acquires
    beneficial ownership (within the meaning of
    Rule 13d-3 under
    the Exchange Act) of securities of the Company possessing more
    than 50% of the total combined voting power of the
    Company’s securities outstanding immediately after such
    acquisition; or
	 
	 	     
    (b) During any period of two consecutive years, individuals
    who, at the beginning of such period, constitute the Board
    together with any new director(s) (other than a director
    designated by a person who shall have entered into an agreement
    with the Company to effect a transaction described in
    Section 2.4(a) hereof or Section 2.4(c) hereof) whose
    election by the Board or nomination for election by the
    Company’s stockholders was approved by a vote of at least
    two-thirds of the directors then still in office who either were
    directors at the beginning of the two-year period or whose
    election or nomination for election was previously so approved,
    cease for any reason to constitute a majority thereof; or
	 
	 	     
    (c) The consummation by the Company (whether directly
    involving the Company or indirectly involving the Company
    through one or more intermediaries) of (x) a merger,
    consolidation, reorganization, or business combination or
    (y) a sale or other disposition of all or substantially all
    of the Company’s

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    assets in any single transaction or series of related
    transactions or (z) the acquisition of assets or stock of
    another entity, in each case other than a transaction:

		
	 	     
    (i) Which results in the Company’s voting securities
    outstanding immediately before the transaction continuing to
    represent (either by remaining outstanding or by being converted
    into voting securities of the Company or the person that, as a
    result of the transaction, controls, directly or indirectly, the
    Company or owns, directly or indirectly, all or substantially
    all of the Company’s assets or otherwise succeeds to the
    business of the Company (the Company or such person, the
    “Successor Entity”)) directly or indirectly, at
    least a majority of the combined voting power of the Successor
    Entity’s outstanding voting securities immediately after
    the transaction, and
	 
	 	     
    (ii) After which no person or group beneficially owns
    voting securities representing 50% or more of the combined
    voting power of the Successor Entity; provided, however,
    that no person or group shall be treated for purposes of this
    Section 2.4(c)(ii) as beneficially owning 50% or more of
    combined voting power of the Successor Entity solely as a result
    of the voting power held in the Company prior to the
    consummation of the transaction; or

		
	 	     
    (d) The Company’s stockholders approve a liquidation
    or dissolution of the Company.

     
2.5     “Code”
means the Internal Revenue Code of 1986, as amended.

     
2.6     “Committee”
means the committee of the Board described in Article 12
hereof.

     
2.7     “Consultant”
means any consultant or adviser if: (a) the consultant or
adviser renders bona fide services to the Company; (b) the
services rendered by the consultant or adviser are not in
connection with the offer or sale of securities in a
capital-raising transaction and do not directly or indirectly
promote or maintain a market for the Company’s securities;
and (c) the consultant or adviser is a natural person who
has contracted directly with the Company or any Subsidiary to
render such services.

     
2.8     “Covered
Employee” means an Employee who is, or could be, a
“covered employee” within the meaning of
Section 162(m) of the Code.

     
2.9     “Deferred
Stock” means a right to receive a specified number
of shares of Stock during specified time periods pursuant to
Section 8.5 hereof.

     
2.10     “Disability”
means that the Participant qualifies to receive long-term
disability payments under the Company’s long-term
disability insurance program, as it may be amended from time to
time.

     
2.11     “Dividend
Equivalents” means a right granted to a Participant
pursuant to Section 8.3 hereof to receive the equivalent
value (in cash or Stock) of dividends paid on Stock.

     
2.12     “Effective
Date” shall have the meaning set forth in
Section 13.1 hereof.

     
2.13     “Eligible
Individual” means any person who is an Employee, a
Consultant or an Independent Director, as determined by the
Committee.

     
2.14     “Employee”
means any officer or other employee (as defined in accordance
with Section 3401(c) of the Code) of the Company or any
Subsidiary.

     
2.15     “Exchange
Act” means the Securities Exchange Act of 1934, as
amended.

     
2.16     “Fair Market
Value” means, as of any given date, (a) if
Stock is traded on an exchange, the closing price of a share of
Stock as reported in the Wall Street Journal for the
first trading date immediately prior to such date during which a
sale occurred; or (b) if Stock is not traded on an exchange
but is quoted on NASDAQ or a successor or other quotation
system, (i) the last sales price (if Stock is then listed
as a National Market Issue under the NASD National Market
System) or (ii) the mean between the closing representative
bid and asked prices (in all other cases) for the Stock on the
date immediately prior to such date on which sales prices or bid
and asked prices, as applicable, are reported by NASDAQ or such
successor quotation system; or (c) if Stock is not publicly
traded, or with respect to any non-Stock based Award or the
settlement of an Award, the fair market value established by the
Committee acting in good faith.

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2.17     “Full Value
Award” means any Award other than an Option or
other Award for which the Participant pays the intrinsic value
(whether directly or by forgoing a right to receive a payment
from the Company).

     
2.18     “Incentive Stock
Option” means an Option that is intended to meet
the requirements of Section 422 of the Code or any
successor provision thereto.

     
2.19     “Independent
Director” means a member of the Board who is not an
Employee of the Company.

     
2.20     “1997
Plan” means The 1997 Equity Participation Plan of
The Spectranetics Corporation, as amended from time to time.

     
2.21     “Non-Employee
Director” means a member of the Board who qualifies
as a “Non-Employee Director” as defined in
Rule 16b-3(b)
(3) under the Exchange Act, or any successor rule.

     
2.22     “Non-Qualified
Stock Option” means an Option that is not intended
to be an Incentive Stock Option.

     
2.23     “Option”
means a right granted to a Participant pursuant to
Article 5 hereof to purchase a specified number of shares
of Stock at a specified price during specified time periods. An
Option may be either an Incentive Stock Option or a
Non-Qualified Stock Option.

     
2.24     “Participant”
means any Eligible Individual who, as a member of the Board or
Employee, has been granted an Award pursuant to the Plan.

     
2.25     “Performance-Based
Award” means an Award, other than an Option or SAR,
granted to selected Covered Employees which the Committee
determines shall be subject to the terms and conditions set
forth in Article 9 hereof. All Performance-Based Awards are
intended to qualify as Qualified Performance-Based Compensation.

     
2.26     “Performance Bonus
Award” has the meaning set forth in
Section 8.7 hereof.

     
2.27     “Performance
Criteria” means the criteria that the Committee
selects for purposes of establishing the Performance Goal or
Performance Goals for a Participant for a Performance Period.
The Performance Criteria that will be used to establish
Performance Goals are limited to the following: net earnings
(either before or after interest, taxes, depreciation and
amortization), economic value-added, sales or revenue, net
income (either before or after taxes and stock-based
compensation), operating earnings, cash flow (including, but not
limited to, operating cash flow and free cash flow), cash flow
return on capital, return on net assets, return on
stockholders’ equity, return on assets, return on capital,
stockholder returns, return on sales, gross or net profit
margin, productivity, expense, margins, operating efficiency,
customer satisfaction, working capital, earnings per share,
price per share of Stock, and market share, any of which may be
measured either in absolute terms by comparison to comparable
performance in an earlier period or periods, or as compared to
results of a peer group, industry index, or other Company or
companies. The Committee shall define in an objective fashion
the manner of calculating the Performance Criteria it selects to
use for such Performance Period for such Participant.

     
2.28     “Performance
Goals” means, for a Performance Period, the goals
established in writing by the Committee for the Performance
Period based upon the Performance Criteria. Depending on the
Performance Criteria used to establish such Performance Goals,
the Performance Goals may be expressed in terms of overall
Company performance or the performance of a division, business
unit, or an individual. The Committee, in its discretion, may,
within the time prescribed by Section 162(m) of the Code,
adjust or modify the calculation of Performance Goals for such
Performance Period in order to prevent the dilution or
enlargement of the rights of Participants (a) in the event
of, or in anticipation of, any unusual or extraordinary
corporate item, transaction, event, or development, or
(b) in recognition of, or in anticipation of, any other
unusual or nonrecurring events affecting the Company, or the
financial statements of the Company, or in response to, or in
anticipation of, changes in applicable laws, regulations,
accounting principles, or business conditions.

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2.29     “Performance
Period” means the one or more periods of time,
which may be of varying and overlapping durations, as the
Committee may select, over which the attainment of one or more
Performance Goals will be measured for the purpose of
determining a Participant’s right to, and the payment of, a
Performance-Based Award.

     
2.30     “Performance
Share” means a right granted to a Participant
pursuant to Section 8.1 hereof, to receive Stock, the
payment of which is contingent upon achieving certain
Performance Goals or other performance-based targets established
by the Committee.

     
2.31     “Performance Stock
Unit” means a right granted to a Participant
pursuant to Section 8.2 hereof, to receive Stock, the
payment of which is contingent upon achieving certain
Performance Goals or other performance-based targets established
by the Committee.

     
2.32     “Plan”
means this Spectranetics Corporation 2006 Incentive Award Plan,
as it may be amended from time to time.

     
2.33     “Qualified
Performance-Based Compensation” means any
compensation that is intended to qualify as “qualified
performance-based compensation” as described in
Section 162(m) (4) (C) of the Code.

     
2.34     “Restricted
Stock” means Stock awarded to a Participant
pursuant to Article 6 hereof that is subject to certain
restrictions and may be subject to risk of forfeiture.

     
2.35     “Restricted Stock
Unit” means an Award granted pursuant to
Section 8.6 hereof.

     
2.36     “Securities
Act” shall mean the Securities Act of 1933, as
amended.

     
2.37     “Stock”
means the common stock of the Company, no par value per share,
and such other securities of the Company that may be substituted
for Stock pursuant to Article 11 hereof.

     
2.38     “Stock Appreciation
Right” or “SAR” means a right
granted pursuant to Article 7 hereof to receive a payment
equal to the excess of the Fair Market Value of a specified
number of shares of Stock on the date the SAR is exercised over
the Fair Market Value on the date the SAR was granted as set
forth in the applicable Award Agreement.

     
2.39     “Stock
Payment” means (a) a payment in the form of
shares of Stock, or (b) an option or other right to
purchase shares of Stock, as part of any bonus, deferred
compensation or other arrangement, made in lieu of all or any
portion of the compensation, granted pursuant to
Section 8.4 hereof.

     
2.40     “Subsidiary”
means any “subsidiary corporation” as defined in
Section 424(f) of the Code and any applicable regulations
promulgated thereunder or any other entity of which a majority
of the outstanding voting stock or voting power is beneficially
owned directly or indirectly by the Company.

ARTICLE 3.

SHARES SUBJECT TO THE PLAN

     
3.1     Number of Shares.

     
(a) Subject to Article 11 and Section 3.1(b), the
aggregate number of shares of Stock which may be issued or
transferred pursuant to Awards under the Plan shall be equal to
the sum of (x) 350,000, (y) any shares of Stock which
as of the Effective Date are available for issuance under the
1997 Plan, and (z) any shares of Stock subject to awards
under the 1997 Plan which terminate, expire, lapse for any
reason or are settled in cash on or after the Effective Date;
provided, however, that such aggregate number of shares
of Stock available for issuance under the Plan shall be reduced
by 1.50 shares for each share of Stock delivered in
settlement of any Full Value Award. In order that the applicable
regulations under the Code relating to Incentive Stock Options
be satisfied, the maximum number of shares of Stock that may be
delivered under the Plan upon the exercise of Incentive Stock
Options shall be that number of shares specified in
Section 3.1(a)(x) above.

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(b) To the extent that an Award terminates, expires, or
lapses for any reason, or is settled in cash, any shares of
Stock subject to the Award shall again be available for the
grant of an Award pursuant to the Plan. Any shares of Stock
tendered or withheld to satisfy the grant or exercise price or
tax withholding obligation pursuant to any Award shall not
subsequently be available for grant of an Award pursuant to the
Plan. To the extent permitted by applicable law or any exchange
rule, shares of Stock issued in assumption of, or in
substitution for, any outstanding awards of any entity acquired
in any form of combination by the Company or any Subsidiary
shall not be counted against shares of Stock available for grant
pursuant to this Plan. To the extent that a SAR is exercised
for, or settled in, Stock, the full number of shares subject to
such SAR shall be counted for purposes of calculating the
aggregate number of shares of Stock available for issuance under
the Plan as set forth in Section 3.1(a), regardless of the
actual number of shares issued upon such exercise or settlement.
The payment of Dividend Equivalents in cash in conjunction with
any outstanding Awards shall not be counted against the shares
available for issuance under the Plan. Notwithstanding the
provisions of this Section 3.1(b), no shares of Stock may
again be optioned, granted or awarded if such action would cause
an Incentive Stock Option to fail to qualify as an incentive
stock option under Section 422 of the Code.

     
3.2     Stock
Distributed. Any Stock distributed pursuant to an Award
may consist, in whole or in part, of authorized and unissued
Stock, treasury Stock or Stock purchased on the open market.

     
3.3     Limitation on Number of
Shares Subject to Awards. Notwithstanding any provision
in the Plan to the contrary, and subject to Article 11
hereof, the maximum number of shares of Stock with respect to
one or more Awards that may be granted to any one Participant
during any calendar year shall be 250,000 and the maximum amount
that may be paid in cash with respect to one or more Awards to
any one Participant which are not denominated in Stock or
otherwise for which the foregoing limitation would not be an
effective limitation, the maximum amount that may be paid in
cash during any calendar year shall be $5,000,000.

ARTICLE 4.

ELIGIBILITY AND PARTICIPATION

     
4.1     Eligibility. Each
Eligible Individual shall be eligible to be granted one or more
Awards pursuant to the Plan.

     
4.2     Participation.
Subject to the provisions of the Plan, the Committee may, from
time to time, select from among all Eligible Individuals, those
to whom Awards shall be granted and shall determine the nature
and amount of each Award. No Eligible Individual shall have any
right to be granted an Award pursuant to this Plan.

     
4.3     Foreign
Participants. Notwithstanding any provision of the Plan
to the contrary, in order to comply with the laws in other
countries in which the Company and its Subsidiaries operate or
have Eligible Individuals, the Committee, in its sole
discretion, shall have the power and authority to:
(i) determine which Subsidiaries shall be covered by the
Plan; (ii) determine which Eligible Individuals outside the
United States are eligible to participate in the Plan;
(iii) modify the terms and conditions of any Award granted
to Eligible Individuals outside the United States to comply with
applicable foreign laws; (iv) establish subplans and modify
exercise procedures and other terms and procedures, to the
extent such actions may be necessary or advisable (any such
subplans and/or modifications shall be attached to this Plan as
appendices); provided, however, that no such subplans
and/or modifications shall increase the share limitations
contained in Sections 3.1 and 3.3 hereof; and (v) take
any action, before or after an Award is made, that it deems
advisable to obtain approval or comply with any necessary local
governmental regulatory exemptions or approvals. Notwithstanding
the foregoing, the Committee may not take any actions hereunder,
and no Awards shall be granted, that would violate the Exchange
Act, the Code, any securities law or governing statute or any
other applicable law.

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ARTICLE 5.

STOCK OPTIONS

     
5.1     General. The
Committee is authorized to grant Options to Participants on the
following terms and conditions:

		
	 	     
    (a) Exercise Price. The exercise price per
    share of Stock subject to an Option shall be determined by the
    Committee and set forth in the Award Agreement; provided,
    that, subject to Section 5.2(b) hereof, the per share
    exercise price for any Option shall not be less than 100% of the
    Fair Market Value of a share of Stock on the date of grant.
	 
	 	     
    (b) Time and Conditions of Exercise. The
    Committee shall determine the time or times at which an Option
    may be exercised in whole or in part; provided that the
    term of any Option granted under the Plan shall not exceed ten
    years. The Committee shall also determine the performance or
    other conditions, if any, that must be satisfied before all or
    part of an Option may be exercised.
	 
	 	     
    (c) Payment. The Committee shall determine
    the methods by which the exercise price of an Option may be
    paid, the form of payment, including, without limitation:
    (i) cash, (ii) shares of Stock having a fair market
    value on the date of delivery equal to the aggregate exercise
    price of the Option or exercised portion thereof, including
    shares that would otherwise be issuable or transferable upon
    exercise of the Option, or (iii) other property acceptable
    to the Committee (including through the delivery of a notice
    that the Participant has placed a market sell order with a
    broker with respect to shares of Stock then issuable upon
    exercise of the Option, and that the broker has been directed to
    pay a sufficient portion of the net proceeds of the sale to the
    Company in satisfaction of the Option exercise price;
    provided that payment of such proceeds is then made to
    the Company at such time as may be required by the Company, not
    later than the settlement of such sale), and the methods by
    which shares of Stock shall be delivered or deemed to be
    delivered to Participants. Notwithstanding any other provision
    of the Plan to the contrary, no Participant who is a member of
    the Board or an “executive officer” of the Company
    within the meaning of Section 13(k) of the Exchange Act
    shall be permitted to pay the exercise price of an Option, or
    continue any extension of credit with respect to the exercise
    price of an Option with a loan from the Company or a loan
    arranged by the Company n violation of Section 13(k) of the
    Exchange Act.
	 
	 	     
    (d) Evidence of Grant. All Options shall be
    evidenced by an Award Agreement between the Company and the
    Participant. The Award Agreement shall include such additional
    provisions as may be specified by the Committee.

     
5.2     Incentive Stock
Options. Incentive Stock Options shall be granted only
to employees of the Company or any “parent
corporation” or “subsidiary corporation” of the
Company within the meaning of Section 424(e) and 424(f),
respectively, of the Code, and the terms of any Incentive Stock
Options granted pursuant to the Plan, in addition to the
requirements of Section 5.1 hereof, must comply with the
provisions of this Section 5.2.

     
(a) Dollar Limitation. The aggregate Fair
Market Value (determined as of the time the Option is granted)
of all shares of Stock with respect to which Incentive Stock
Options are first exercisable by a Participant in any calendar
year may not exceed $100,000 or such other limitation as imposed
by Section 422(d) of the Code, or any successor provision.
To the extent that Incentive Stock Options are first exercisable
by a Participant in excess of such limitation, the excess shall
be considered Non-Qualified Stock Options.

     
(b) Ten Percent Owners. An Incentive Stock
Option may not be granted to any individual who, at the date of
grant, owns stock possessing more than ten percent of the total
combined voting power of all classes of Stock of the Company or
any “parent corporation” or “subsidiary
corporation” of the Company within the meaning of
Section 424(e) and 424(f), respectively, of the Code,
unless such Option is granted at a price that is not less than
110% of Fair Market Value on the date of grant and the Option is
exercisable for no more than five years from the date of grant.

     
(c) Notice of Disposition. The Participant
shall give the Company prompt notice of any disposition of

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shares of Stock acquired by exercise of an Incentive Stock
Option within (i) two years from the date of grant of such
Incentive Stock Option or (ii) one year after the transfer
of such shares of Stock to the Participant.

     
(d) Right to Exercise. During a
Participant’s lifetime, an Incentive Stock Option may be
exercised only by the Participant.

     
(e) Failure to Meet Requirements. Any Option (or
portion thereof) purported to be an Incentive Stock Option,
which, for any reason, fails to meet the requirements of
Section 422 of the Code shall be considered a Non-Qualified
Stock Option.

     
5.3     Options Granted to
Independent Directors.

     
(a) Grant of Options to Independent
Directors. During the term of the Plan, a person who
first becomes an Independent Director shall automatically be
granted an Option to purchase 45,000 shares of Stock
(an ”Initial Option”) on the date of such
initial election. In addition, during the term of the Plan, each
Independent Director who has served at least three years as an
Independent Director, shall be granted on the third anniversary
of the date of the grant of the Initial Option, and each third
anniversary thereafter (so long as he is an Independent Director
at the close of business on such date), an Option to purchase an
additional 45,000 shares of Stock (“Anniversary
Option”). For the avoidance of doubt, an Independent
Director elected for the first time to the Board at an annual
meeting of stockholders shall only receive an Initial Option in
connection with such election. Members of the Board who are
employees of the Company who subsequently retire from the
Company and remain on the Board will not receive an Initial
Option grant but to the extent that such individual is otherwise
eligible, will receive, on the third anniversary of the annual
meeting of stockholders immediately following his or her
retirement from employment with the Company and each third
anniversary thereafter (so long as he is an Independent Director
at the close of business on such date), an Anniversary Option.

     
(b) Terms of Options Granted to Independent
Directors. Options granted to Independent Directors
shall be Non-Qualified Stock Options. The exercise price per
share of Stock subject to each Option granted to an Independent
Director shall equal 100% of the Fair Market Value of a share of
Stock on the date the Option is granted. Subject to the
grantee’s continued status as a Board member, Options
granted to Independent Directors shall become exercisable in
cumulative annual installments of
331/3
% on each of the first, second and third anniversaries of
the date on which the Option is granted. The term of each Option
granted to an Independent Director shall be 10 years from
the date the Option is granted. Upon a Director’s
termination of directorship for any reason, all outstanding
Options granted to such Director under Section 5.3(a) above
shall remain exercisable for 12 months following his or her
termination of directorship (or such longer period as the Board
may determine in its discretion on or after the date of grant of
such Option). Unless otherwise determined by the Board on or
after the date of grant of such Option, no portion of an Option
granted under Section 5.3(a) above which is unexercisable
at the time of an Independent Director’s termination of
membership on the Board shall thereafter become exercisable.

     
(c) 1997 Plan Awards. As of the Effective
Date (as defined below), (i) Options granted to Independent
Directors pursuant to this Section 5.3 shall be in lieu of
all Option grants to Independent Directors under
Section 3.4 of the 1997 Plan, and (ii) the provisions
of this Section 5.3 shall replace and supersede the
relevant provisions of Sections 3.4 and 5.6 of the 1997
Plan.

ARTICLE 6.

RESTRICTED STOCK AWARDS

     
6.1     Grant of Restricted
Stock. The Committee is authorized to make Awards of
Restricted Stock to any Participant selected by the Committee in
such amounts and subject to such terms and conditions as
determined by the Committee. All Awards of Restricted Stock
shall be evidenced by an Award Agreement.

     
6.2     Issuance and
Restrictions. Restricted Stock shall be subject to such
restrictions on transferability and other restrictions as the
Committee may impose (including, without limitation, limitations
on the right to vote Restricted Stock or the right to receive
dividends on the Restricted Stock). These restrictions may lapse

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separately or in combination at such times, pursuant to such
circumstances, in such installments, or otherwise, as the
Committee determines at the time of the grant of the Award or
thereafter.

     
6.3     Forfeiture.
Except as otherwise determined by the Committee at the time of
the grant of the Award or thereafter, upon termination of
employment or service during the applicable restriction period,
Restricted Stock that is at that time subject to restrictions
shall be forfeited; provided, however, that, the
Committee may (a) provide in any Restricted Stock Award
Agreement that restrictions or forfeiture conditions relating to
Restricted Stock will lapse in whole or in part in the event of
terminations resulting from specified causes, and
(b) provide in other cases for the lapse in whole or in
part of restrictions or forfeiture conditions relating to
Restricted Stock.

     
6.4     Certificates for
Restricted Stock. Restricted Stock granted pursuant to
the Plan may be evidenced in such manner as the Committee shall
determine. If certificates representing shares of Restricted
Stock are registered in the name of the Participant,
certificates must bear an appropriate legend referring to the
terms, conditions, and restrictions applicable to such
Restricted Stock, and the Company may, at its discretion, retain
physical possession of the certificate until such time as all
applicable restrictions lapse.

ARTICLE 7.

STOCK APPRECIATION RIGHTS

     
7.1     Grant of Stock
Appreciation Rights.

     
(a) A Stock Appreciation Right may be granted to any
Participant selected by the Committee. A Stock Appreciation
Right shall be subject to such terms and conditions not
inconsistent with the Plan as the Committee shall impose and
shall be evidenced by an Award Agreement.

     
(b) A Stock Appreciation Right shall entitle the
Participant (or other person entitled to exercise the Stock
Appreciation Right pursuant to the Plan) to exercise all or a
specified portion of the Stock Appreciation Right (to the extent
then exercisable pursuant to its terms) and to receive from the
Company an amount equal to the product of (i) the excess of
(A) the Fair Market Value of the Stock on the date the
Stock Appreciation Right is exercised over (B) the Fair
Market Value of the Stock on the date the Stock Appreciation
Right was granted and (ii) the number of shares of Stock
with respect to which the Stock Appreciation Right is exercised,
subject to any limitations the Committee may impose.

     
7.2     Payment and Limitations
on Exercise.

     
(a) Subject to Section 7.2(b), payment of the amounts
determined under Sections 7.1(b) above shall be in cash, in
Stock (based on its Fair Market Value as of the date the Stock
Appreciation Right is exercised) or a combination of both, as
determined by the Committee in the Award Agreement.

     
(b) To the extent any payment under Section 7.1(b) is
effected in Stock, it shall be made subject to satisfaction of
all provisions of Article 5 above pertaining to Options.

ARTICLE 8.

OTHER TYPES OF AWARDS

     
8.1     Performance Share
Awards. Any Participant selected by the Committee may be
granted one or more Performance Share awards which shall be
denominated in a number of shares of Stock and which may be
linked to any one or more of the Performance Criteria or other
specific performance criteria determined appropriate by the
Committee, in each case on a specified date or dates or over any
period or periods determined by the Committee. In making such
determinations, the Committee shall consider (among such other
factors as it deems relevant in light of the specific type of
award) the contributions, responsibilities and other
compensation of the particular Participant.

     
8.2     Performance Stock
Units. Any Participant selected by the Committee may be
granted one or more Performance Stock Unit awards which shall be
denominated in unit equivalent of shares of Stock and/or units

A-8

 

of value including dollar value of shares of Stock and which may
be linked to any one or more of the Performance Criteria or
other specific performance criteria determined appropriate by
the Committee, in each case on a specified date or dates or over
any period or periods determined by the Committee. In making
such determinations, the Committee shall consider (among such
other factors as it deems relevant in light of the specific type
of award) the contributions, responsibilities and other
compensation of the particular Participant.

     
8.3     Dividend
Equivalents.

     
(a) Any Participant selected by the Committee may be
granted Dividend Equivalents based on the dividends declared on
the shares of Stock that are subject to any Award, to be
credited as of dividend payment dates, during the period between
the date the Award is granted and the date the Award is
exercised, vests or expires, as determined by the Committee.
Such Dividend Equivalents shall be converted to cash or
additional shares of Stock by such formula and at such time and
subject to such limitations as may be determined by the
Committee.

     
(b) Dividend Equivalents granted with respect to Options or
SARs that are intended to be Qualified Performance-Based
Compensation shall be payable, with respect to pre-exercise
periods, regardless of whether such Option or SAR is
subsequently exercised.

     
8.4     Stock Payments.
Any Participant selected by the Committee may receive Stock
Payments in the manner determined from time to time by the
Committee; provided, that unless otherwise determined by
the Committee such Stock Payments shall be made in lieu of base
salary, bonus, or other cash compensation otherwise payable to
such Participant. The number of shares shall be determined by
the Committee and may be based upon the Performance Criteria or
other specific performance criteria determined appropriate by
the Committee, determined on the date such Stock Payment is made
or on any date thereafter.

     
8.5     Deferred Stock.
Any Participant selected by the Committee may be granted an
award of Deferred Stock in the manner determined from time to
time by the Committee. The number of shares of Deferred Stock
shall be determined by the Committee and may be linked to the
Performance Criteria or other specific performance criteria
determined to be appropriate by the Committee, in each case on a
specified date or dates or over any period or periods determined
by the Committee. Stock underlying a Deferred Stock award will
not be issued until the Deferred Stock award has vested,
pursuant to a vesting schedule or performance criteria set by
the Committee. Unless otherwise provided by the Committee, a
Participant awarded Deferred Stock shall have no rights as a
Company stockholder with respect to such Deferred Stock until
such time as the Deferred Stock Award has vested and the Stock
underlying the Deferred Stock Award has been issued.

     
8.6     Restricted Stock
Units. The Committee is authorized to make Awards of
Restricted Stock Units to any Participant selected by the
Committee in such amounts and subject to such terms and
conditions as determined by the Committee. At the time of grant,
the Committee shall specify the date or dates on which the
Restricted Stock Units shall become fully vested and
nonforfeitable, and may specify such conditions to vesting as it
deems appropriate. At the time of grant, the Committee shall
specify the maturity date applicable to each grant of Restricted
Stock Units which shall be no earlier than the vesting date or
dates of the Award and may be determined at the election of the
grantee. On the maturity date, the Company shall, subject to
Section 10.5(b) hereof, transfer to the Participant one
unrestricted, fully transferable share of Stock for each
Restricted Stock Unit scheduled to be paid out on such date and
not previously forfeited.

     
8.7     Performance Bonus
Awards. Any Participant selected by the Committee may be
granted a cash bonus (a “Performance Bonus
Award”) payable upon the attainment of Performance
Goals that are established by the Committee and relate to one or
more of the Performance Criteria or other specific performance
criteria determined to be appropriate by the Committee, in each
case on a specified date or dates or over any period or periods
determined by the Committee. Any such Performance Bonus Award
paid to a Covered Employee may be a Performance-Based Award and
be based upon objectively determinable bonus formulas
established in accordance with Article 9 hereof.

     
8.8     Term. Except as
otherwise provided herein, the term of any Award of Performance
Shares, Performance Stock Units, Dividend Equivalents, Stock
Payments, Deferred Stock or Restricted Stock Units shall be set
by the Committee in its discretion.

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8.9     Exercise or Purchase
Price. The Committee may establish the exercise or
purchase price, if any, of any Award of Performance Shares,
Performance Stock Units, Deferred Stock, Stock Payments or
Restricted Stock Units; provided, however, that such
price shall not be less than the par value of a share of Stock
on the date of grant, unless otherwise permitted by applicable
state law.

     
8.10     Exercise upon
Termination of Employment or Service. An Award of
Performance Shares, Performance Stock Units, Dividend
Equivalents, Deferred Stock, Stock Payments and Restricted Stock
Units shall only vest or be exercisable or payable while the
Participant is an Employee, Consultant or a member of the Board,
as applicable; provided, however, that the Committee in
its sole and absolute discretion may provide that an Award of
Performance Shares, Performance Stock Units, Dividend
Equivalents, Stock Payments, Deferred Stock or Restricted Stock
Units may vest or be exercised or paid subsequent to a
termination of employment or service, as applicable, or
following a Change in Control of the Company, or because of the
Participant’s retirement, death or Disability, or
otherwise; provided, however, that, to the extent
required to preserve tax deductibility under Section 162(m)
of the Code, any such provision with respect to Performance
Shares or Performance Stock Units that are intended to
constitute Qualified Performance-Based Compensation shall be
subject to the requirements of Section 162(m) of the Code
that apply to Qualified Performance-Based Compensation.

     
8.11     Form of Payment.
Payments with respect to any Awards granted under this
Article 8 shall be made in cash, in Stock or a combination
of both, as determined by the Committee.

     
8.12     Award Agreement.
All Awards under this Article 8 shall be subject to such
additional terms and conditions as determined by the Committee
and shall be evidenced by an Award Agreement.

ARTICLE 9.

PERFORMANCE-BASED AWARDS

     
9.1     Purpose. The
purpose of this Article 9 is to provide the Committee the
ability to qualify Awards other than Options and SARs and that
are granted pursuant to Articles 6 and 8 hereof as
Qualified Performance-Based Compensation. If the Committee, in
its discretion, decides to grant a Performance-Based Award to a
Covered Employee, the provisions of this Article 9 shall
control over any contrary provision contained in Articles 6
or 8 hereof; provided, however, that the Committee may in
its discretion grant Awards to Covered Employees that are based
on Performance Criteria or Performance Goals but that do not
satisfy the requirements of this Article 9.

     
9.2     Applicability.
This Article 9 shall apply only to those Covered Employees
selected by the Committee to receive Performance-Based Awards.
The designation of a Covered Employee as a Participant for a
Performance Period shall not in any manner entitle the
Participant to receive an Award for the period. Moreover,
designation of a Covered Employee as a Participant for a
particular Performance Period shall not require designation of
such Covered Employee as a Participant in any subsequent
Performance Period and designation of one Covered Employee as a
Participant shall not require designation of any other Covered
Employees as a Participant in such period or in any other period.

     
9.3     Procedures with Respect
to Performance-Based Awards. To the extent necessary to
comply with the Qualified Performance-Based Compensation
requirements of Section 162(m)(4)(C) of the Code, with
respect to any Award granted under Articles 6 or 8 hereof
which may be granted to one or more Covered Employees, no later
than ninety (90) days following the commencement of any
fiscal year in question or any other designated fiscal period or
period of service (or such other time as may be required or
permitted by Section 162(m) of the Code), the Committee
shall, in writing, (a) designate one or more Covered
Employees, (b) select the Performance Criteria applicable
to the Performance Period, (c) establish the Performance
Goals, and amounts of such Awards, as applicable, which may be
earned for such Performance Period, and (d) specify the
relationship between Performance Criteria and the Performance
Goals and the amounts of such Awards, as applicable, to be
earned by each Covered Employee for such Performance Period.
Following the completion of each Performance Period, the
Committee shall certify in writing whether the applicable
Performance Goals have been achieved for such Performance
Period. In determining the amount

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earned by a Covered Employee, the Committee shall have the right
to reduce or eliminate (but not to increase) the amount payable
at a given level of performance to take into account additional
factors that the Committee may deem relevant to the assessment
of individual or corporate performance for the Performance
Period.

     
9.4     Payment of
Performance-Based Awards. Unless otherwise provided in
the applicable Award Agreement, a Participant must be employed
by the Company or a Subsidiary on the day a Performance-Based
Award for such Performance Period is paid to the Participant.
Furthermore, a Participant shall be eligible to receive payment
pursuant to a Performance-Based Award for a Performance Period
only if the Performance Goals for such period are achieved. In
determining the amount earned under a Performance-Based Award,
the Committee may reduce or eliminate the amount of the
Performance-Based Award earned for the Performance Period, if in
its sole and absolute discretion, such reduction or elimination
is appropriate.

     
9.5     Additional
Limitations. Notwithstanding any other provision of the
Plan, any Award which is granted to a Covered Employee and is
intended to constitute Qualified Performance-Based Compensation
shall be subject to any additional limitations set forth in
Section 162(m) of the Code (including any amendment to
Section 162(m) of the Code) or any regulations or rulings
issued thereunder that are requirements for qualification as
qualified performance-based compensation as described in
Section 162(m)(4)(C) of the Code, and the Plan shall be
deemed amended to the extent necessary to conform to such
requirements.

ARTICLE 10.

PROVISIONS APPLICABLE TO AWARDS

     
10.1     Stand-Alone and Tandem
Awards. Awards granted pursuant to the Plan may, in the
discretion of the Committee, be granted either alone, in
addition to, or in tandem with, any other Award granted pursuant
to the Plan. Awards granted in addition to or in tandem with
other Awards may be granted either at the same time as or at a
different time from the grant of such other Awards.

     
10.2     Award Agreement.
Awards under the Plan shall be evidenced by Award Agreements
that set forth the terms, conditions and limitations for each
Award which may include the term of an Award, the provisions
applicable in the event the Participant’s employment or
service terminates, and the Company’s authority to
unilaterally or bilaterally amend, modify, suspend, cancel or
rescind an Award.

     
10.3     Limits on
Transfer. No right or interest of a Participant in any
Award may be pledged, encumbered, or hypothecated to or in favor
of any party other than the Company or a Subsidiary, or shall be
subject to any lien, obligation, or liability of such
Participant to any other party other than the Company or a
Subsidiary. Except as otherwise provided by the Committee, no
Award shall be assigned, transferred, or otherwise disposed of
by a Participant other than by will or the laws of descent and
distribution. The Committee by express provision in the Award or
an amendment thereto may permit an Award to be transferred to,
exercised by and paid to certain persons or entities related to
the Participant, including but not limited to members of the
Participant’s family, charitable institutions, or trusts or
other entities whose beneficiaries or beneficial owners are
members of the Participant’s family and/or charitable
institutions, or to such other persons or entities as may be
expressly approved by the Committee, pursuant to such conditions
and procedures as the Committee may establish; provided,
however, that no such transfer of an Incentive Stock Option
shall be permitted to the extent that such transfer would cause
the Incentive Stock Option to fail to qualify as an
“incentive stock option” under Section 422 of the
Code. Any permitted transfer shall be subject to the condition
that the Committee receive evidence satisfactory to it that the
transfer is being made for estate and/or tax planning purposes
(or to a “blind trust” in connection with the
Participant’s termination of employment or service with the
Company or a Subsidiary to assume a position with a
governmental, charitable, educational or similar non-profit
institution) and on a basis consistent with the Company’s
lawful issue of securities. Notwithstanding the foregoing, in no
event shall any Award be transferable by a Participant to a
third party (other than the Company) for consideration.

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10.4     Beneficiaries.
Notwithstanding Section 10.3 hereof, a Participant may, in
the manner determined by the Committee, designate a beneficiary
to exercise the rights of the Participant and to receive any
distribution with respect to any Award upon the
Participant’s death. A beneficiary, legal guardian, legal
representative, or other person claiming any rights pursuant to
the Plan is subject to all terms and conditions of the Plan and
any Award Agreement applicable to the Participant, except to the
extent the Plan and Award Agreement otherwise provide, and to
any additional restrictions deemed necessary or appropriate by
the Committee. If the Participant is married and resides in a
community property state, a designation of a person other than
the Participant’s spouse as his or her beneficiary with
respect to more than 50% of the Participant’s interest in
the Award shall not be effective without the prior written
consent of the Participant’s spouse. If no beneficiary has
been designated or survives the Participant, payment shall be
made to the person entitled thereto pursuant to the
Participant’s will or the laws of descent and distribution.
Subject to the foregoing, a beneficiary designation may be
changed or revoked by a Participant at any time provided the
change or revocation is filed with the Committee.

     
10.5     Stock Certificates; Book
Entry Procedures.

     
(a) Notwithstanding anything herein to the contrary, the
Company shall not be required to issue or deliver any
certificates evidencing shares of Stock pursuant to the exercise
of any Award, unless and until the Board has determined, with
advice of counsel, that the issuance and delivery of such
certificates is in compliance with all applicable laws,
regulations of governmental authorities and, if applicable, the
requirements of any exchange on which the shares of Stock are
listed or traded. All Stock certificates delivered pursuant to
the Plan are subject to any stop-transfer orders and other
restrictions as the Committee deems necessary or advisable to
comply with federal, state, or foreign jurisdiction, securities
or other laws, rules and regulations and the rules of any
national securities exchange or automated quotation system on
which the Stock is listed, quoted, or traded. The Committee may
place legends on any Stock certificate to reference restrictions
applicable to the Stock. In addition to the terms and conditions
provided herein, the Board may require that a Participant make
such reasonable covenants, agreements, and representations as
the Board, in its discretion, deems advisable in order to comply
with any such laws, regulations, or requirements. The Committee
shall have the right to require any Participant to comply with
any timing or other restrictions with respect to the settlement
or exercise of any Award, including a window-period limitation,
as may be imposed in the discretion of the Committee.

     
(b) Notwithstanding any other provision of the Plan, unless
otherwise determined by the Committee or required by any
applicable law, rule or regulation, the Company shall not
deliver to any Participant certificates evidencing shares of
Stock issued in connection with any Award and instead such
shares of Stock shall be recorded in the books of the Company
(or, as applicable, its transfer agent or stock plan
administrator).

     
10.6     Full Value Award Vesting
Limitations. Notwithstanding any other provision of this
Plan to the contrary, Full Value Awards made to Employees or
Consultants shall become vested over a period of not less than
three years (or, in the case of vesting based upon the
attainment of Performance Goals or other performance-based
objectives, over a period of not less than one year) following
the date the Award is made; provided, however, that,
notwithstanding the foregoing, Full Value Awards that result in
the issuance of an aggregate of up to 5% of the shares of Stock
available pursuant to Section 3.1(a) may be granted to any
one or more Participants without respect to such minimum vesting
provisions. The foregoing notwithstanding, such Awards may vest
on an accelerated basis in the event of a Participant’s
death, disability, or retirement, or in the event of a Change in
Control or other special circumstances. For purposes of this
Section 10.6, (i) vesting over a specified period will
include periodic vesting over such period, and (ii) a
pre-announced period in which service is required as a condition
to the grant of any Award may count toward the minimum vesting
period required under this Section 10.6, if so determined
by the Committee.

     
10.7     Paperless
Exercise. In the event that the Company establishes, for
itself or using the services of a third party, an automated
system for the exercise of Awards, such as a system using an
internet website or interactive voice response, then the
paperless exercise of Awards by a Participant may be permitted
through the use of such an automated system.

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ARTICLE 11.

CHANGES IN CAPITAL STRUCTURE

     
11.1     Adjustments.

     
(a) In the event of any stock dividend, stock split,
combination or exchange of shares, merger, consolidation,
spin-off, recapitalization or other distribution (other than
normal cash dividends) of Company assets to stockholders, or any
other change affecting the shares of Stock or the share price of
the Stock, the Committee shall make such proportionate
adjustments, if any, as the Committee in its discretion may deem
appropriate to reflect such change with respect to (a) the
aggregate number and kind of shares that may be issued under the
Plan (including, but not limited to, adjustments of the
limitations in Sections 3.1 and 3.3 hereof); (b) the
terms and conditions of any outstanding Awards (including,
without limitation, any applicable performance targets or
criteria with respect thereto); and (c) the grant or
exercise price per share for any outstanding Awards under the
Plan. Any adjustment affecting an Award intended as Qualified
Performance-Based Compensation shall be made consistent with the
requirements of Section 162(m) of the Code.

     
(b) In the event of any transaction or event described in
Section 11.1(a) hereof or any unusual or nonrecurring
transactions or events affecting the Company, any affiliate of
the Company, or the financial statements of the Company or any
affiliate, or of changes in applicable laws, regulations or
accounting principles, the Committee, in its sole and absolute
discretion, and on such terms and conditions as it deems
appropriate, either by the terms of the Award or by action taken
prior to the occurrence of such transaction or event and either
automatically or upon the Participant’s request, is hereby
authorized to take any one or more of the following actions
whenever the Committee determines that such action is
appropriate in order to prevent dilution or enlargement of the
benefits or potential benefits intended to be made available
under the Plan or with respect to any Award under the Plan, to
facilitate such transactions or events or to give effect to such
changes in laws, regulations or principles:

		
	 	     
    (i) To provide for either (A) termination of any such
    Award in exchange for an amount of cash, if any, equal to the
    amount that would have been attained upon the exercise of such
    Award or realization of the Participant’s rights (and, for
    the avoidance of doubt, if as of the date of the occurrence of
    the transaction or event described in this Section 11.1 the
    Committee determines in good faith that no amount would have
    been attained upon the exercise of such Award or realization of
    the Participant’s rights, then such Award may be terminated
    by the Company without payment) or (B) the replacement of
    such Award with other rights or property selected by the
    Committee in its sole discretion;
	 
	 	     
    (ii) To provide that such Award be assumed by the successor
    or survivor corporation, or a parent or subsidiary thereof, or
    shall be substituted for by similar options, rights or awards
    covering the stock of the successor or survivor corporation, or
    a parent or subsidiary thereof, with appropriate adjustments as
    to the number and kind of shares and prices;
	 
	 	     
    (iii) To make adjustments in the number and type of shares
    of Stock (or other securities or property) subject to
    outstanding Awards, and in the number and kind of outstanding
    Restricted Stock or Deferred Stock and/or in the terms and
    conditions of (including the grant or exercise price), and the
    criteria included in, outstanding options, rights and awards and
    options, rights and awards which may be granted in the future;
	 
	 	     
    (iv) To provide that such Award shall be exercisable or
    payable or fully vested with respect to all shares covered
    thereby, notwithstanding anything to the contrary in the Plan or
    the applicable Award Agreement; and
	 
	 	     
    (v) To provide that the Award cannot vest, be exercised or
    become payable after such event.

     
11.2     Acceleration Upon a
Change in Control. Notwithstanding Section 11.1
hereof, and except as may otherwise be provided in any
applicable Award Agreement or other written agreement entered
into between the Company and a Participant, if a Change in
Control occurs and a Participant’s Awards are not
converted, assumed, or replaced by a successor entity, then
immediately prior to the Change in Control such Awards

A-13

 

shall become fully exercisable and all forfeiture restrictions
on such Awards shall lapse. Upon, or in anticipation of, a
Change in Control, the Committee may cause any and all Awards
outstanding hereunder to terminate at a specific time in the
future, including but not limited to the date of such Change in
Control, and shall give each Participant the right to exercise
such Awards during a period of time as the Committee, in its
sole and absolute discretion, shall determine. In the event that
the terms of any agreement between the Company or any Company
subsidiary or affiliate and a Participant contains provisions
that conflict with and are more restrictive than the provisions
of this Section 11.2, this Section 11.2 shall prevail
and control and the more restrictive terms of such agreement
(and only such terms) shall be of no force or effect.

     
11.3     No Other Rights.
Except as expressly provided in the Plan, no Participant shall
have any rights by reason of any subdivision or consolidation of
shares of stock of any class, the payment of any dividend, any
increase or decrease in the number of shares of stock of any
class or any dissolution, liquidation, merger, or consolidation
of the Company or any other corporation. Except as expressly
provided in the Plan or pursuant to action of the Committee
under the Plan, no issuance by the Company of shares of stock of
any class, or securities convertible into shares of stock of any
class, shall affect, and no adjustment by reason thereof shall
be made with respect to, the number of shares of Stock subject
to an Award or the grant or exercise price of any Award.

ARTICLE 12.

ADMINISTRATION

     
12.1     Committee.
Unless and until the Board delegates administration of the Plan
to a Committee as set forth below, the Plan shall be
administered by the full Board, and for such purposes the term
“Committee” as used in this Plan shall be deemed to
refer to the Board. The Board, at its discretion or as otherwise
necessary to comply with the requirements of Section 162(m)
of the Code,
Rule 16b-3
promulgated under the Exchange Act or to the extent required by
any other applicable rule or regulation, shall delegate
administration of the Plan to a Committee. The Committee shall
consist solely of two or more members of the Board each of whom
is an “outside director,” within the meaning of
Section 162(m) of the Code, a Non-Employee Director and an
“independent director” under the rules of the New York
Stock Exchange (or other principal securities market on which
shares of Stock are traded). Any action taken by the Committee
shall be valid and effective, regardless of whether or not
members of the Committee at the time of such action are later
determined not to have satisfied the requirements for membership
set forth in this Section 12.1 or otherwise.
Notwithstanding the foregoing: (a) the full Board, acting
by a majority of its members in office, shall conduct the
general administration of the Plan with respect to all Awards
granted to Independent Directors and for purposes of such Awards
the term “Committee” as used in this Plan shall be
deemed to refer to the Board and (b) the Committee may
delegate its authority hereunder to the extent permitted by
Section 12.5 hereof. Appointment of Committee members shall
be effective upon acceptance of appointment. In its sole
discretion, the Board may at any time and from time to time
exercise any and all rights and duties of the Committee under
the Plan except with respect to matters which under
Rule 16b-3 under
the Exchange Act or Section 162(m) of the Code, or any
regulations or rules issued thereunder, are required to be
determined in the sole discretion of the Committee. Committee
members may resign at any time by delivering written notice to
the Board. Vacancies in the Committee may only be filled by the
Board.

     
12.2     Action by the
Committee. A majority of the Committee shall constitute
a quorum. The acts of a majority of the members present at any
meeting at which a quorum is present, and acts unanimously
approved in writing by the Committee in lieu of a meeting, shall
be deemed the acts of the Committee. Each member of the
Committee is entitled to, in good faith, rely or act upon any
report or other information furnished to that member by any
officer or other employee of the Company or any Subsidiary, the
Company’s independent certified public accountants, or any
executive compensation consultant or other professional retained
by the Company to assist in the administration of the Plan.

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12.3     Authority of
Committee. Subject to any specific designation in the
Plan, the Committee has the exclusive power, authority and
discretion to:

		
	 	     
    (a) Designate Participants to receive Awards;
	 
	 	     
    (b) Determine the type or types of Awards to be granted to
    each Participant;
	 
	 	     
    (c) Determine the number of Awards to be granted and the
    number of shares of Stock to which an Award will relate;
	 
	 	     
    (d) Determine the terms and conditions of any Award granted
    pursuant to the Plan, including, but not limited to, the
    exercise price, grant price, or purchase price, any reload
    provision, any restrictions or limitations on the Award, any
    schedule for lapse of forfeiture restrictions or restrictions on
    the exercisability of an Award, and accelerations or waivers
    thereof, any provisions related to non-competition and recapture
    of gain on an Award, based in each case on such considerations
    as the Committee in its sole discretion determines; provided,
    however, that the Committee shall not have the authority to
    accelerate the vesting or waive the forfeiture of any
    Performance-Based Awards;
	 
	 	     
    (e) Determine whether, to what extent, and pursuant to what
    circumstances an Award may be settled in, or the exercise price
    of an Award may be paid in, cash, Stock, other Awards, or other
    property, or an Award may be canceled, forfeited, or surrendered;
	 
	 	     
    (f) Prescribe the form of each Award Agreement, which need
    not be identical for each Participant;
	 
	 	     
    (g) Decide all other matters that must be determined in
    connection with an Award;
	 
	 	     
    (h) Establish, adopt, or revise any rules and regulations
    as it may deem necessary or advisable to administer the Plan;
	 
	 	     
    (i) Interpret the terms of, and any matter arising pursuant
    to, the Plan or any Award Agreement; and
	 
	 	     
    (j) Make all other decisions and determinations that may be
    required pursuant to the Plan or as the Committee deems
    necessary or advisable to administer the Plan.

     
12.4     Decisions
Binding. The Committee’s interpretation of the
Plan, any Awards granted pursuant to the Plan, any Award
Agreement and all decisions and determinations by the Committee
with respect to the Plan are final, binding, and conclusive on
all parties.

     
12.5     Delegation of
Authority. To the extent permitted by applicable law,
the Committee may from time to time delegate to a committee of
one or more members of the Board or one or more officers of the
Company the authority to grant or amend Awards to Participants
other than (a) senior executives of the Company who are
subject to Section 16 of the Exchange Act, (b) Covered
Employees, or (c) officers of the Company (or members of
the Board) to whom authority to grant or amend Awards has been
delegated hereunder. Any delegation hereunder shall be subject
to the restrictions and limits that the Committee specifies at
the time of such delegation, and the Committee may at any time
rescind the authority so delegated or appoint a new delegate. At
all times, the delegate appointed under this Section 12.5
shall serve in such capacity at the pleasure of the Committee.

ARTICLE 13.

EFFECTIVE AND EXPIRATION DATE

     
13.1     Effective Date.
The Plan is effective as of the date the Plan is approved by the
Company’s stockholders (the “Effective
Date”). The Plan will be deemed to be approved by the
stockholders if it receives the affirmative vote of the holders
of a majority of the shares of stock of the Company present or
represented and entitled to vote at a meeting duly held in
accordance with the applicable provisions of the Company’s
bylaws.

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13.2     Expiration Date.
The Plan will expire on, and no Award may be granted pursuant to
the Plan after, the tenth anniversary of the Effective Date. Any
Awards that are outstanding on the tenth anniversary of the
Effective Date shall remain in force according to the terms of
the Plan and the applicable Award Agreement.

ARTICLE 14.

AMENDMENT, MODIFICATION, AND TERMINATION

     
14.1     Amendment, Modification,
and Termination. Subject to Section 15.14 hereof,
with the approval of the Board, at any time and from time to
time, the Committee may terminate, amend or modify the Plan;
provided, however, that (a) to the extent necessary
and desirable to comply with any applicable law, regulation, or
stock exchange rule, the Company shall obtain stockholder
approval of any Plan amendment in such a manner and to such a
degree as required, and (b) stockholder approval shall be
required for any amendment to the Plan that (i) increases
the number of shares available under the Plan (other than any
adjustment as provided by Article 11 hereof),
(ii) permits the Committee to grant Options or SARs with an
exercise price that is below Fair Market Value on the date of
grant, or (iii) permits the Committee to extend the
exercise period for an Option or SAR beyond ten years from the
date of grant. Notwithstanding any provision in this Plan to the
contrary, absent approval of the stockholders of the Company,
(I) no Option or SAR may be amended to reduce the per share
exercise price of the shares subject to such Option or SAR below
the per share exercise price as of the date the Award is
granted, (II) except as permitted by Article 11
hereof, no Option or SAR may be granted in exchange for, or in
connection with, the cancellation or surrender of an Option or
SAR having a higher per share exercise price, and
(III) except as permitted by Article 11 hereof, no
Award may be granted in exchange for the cancellation or
surrender of an Option or SAR with a per share exercise price
that is greater than the Fair Market Value on the date of such
grant or cancellation.

     
14.2     Awards Previously
Granted. Except with respect to amendments made pursuant
to Section 15.14 hereof, no termination, amendment, or
modification of the Plan shall adversely affect in any material
way any Award previously granted pursuant to the Plan without
the prior written consent of the Participant.

ARTICLE 15.

GENERAL PROVISIONS

     
15.1     No Rights to
Awards. No Eligible Individual or other person shall
have any claim to be granted any Award pursuant to the Plan, and
neither the Company nor the Committee is obligated to treat
Eligible Individuals, Participants or any other persons
uniformly.

     
15.2     No Stockholders
Rights. Except as otherwise provided herein, a
Participant shall have none of the rights of a stockholder with
respect to shares of Stock covered by any Award until the
Participant becomes the record owner of such shares of Stock.

     
15.3     Withholding. The
Company or any Subsidiary shall have the authority and the right
to deduct or withhold, or require a Participant to remit to the
Company, an amount sufficient to satisfy federal, state, local
and foreign taxes (including the Participant’s employment
tax obligations) required by law to be withheld with respect to
any taxable event concerning a Participant arising as a result
of this Plan. The Committee may in its discretion and in
satisfaction of the foregoing requirement allow a Participant to
elect to have the Company withhold shares of Stock otherwise
issuable under an Award (or allow the return of shares of Stock)
having a fair market value on the date of withholding equal to
the sums required to be withheld. Notwithstanding any other
provision of the Plan, the number of shares of Stock which may
be withheld with respect to the issuance, vesting, exercise or
payment of any Award (or which may be repurchased from the
Participant of such Award within six months (or such other
period as may be determined by the Committee) after such shares
of Stock were acquired by the Participant from the Company) in
order to satisfy the Participant’s federal, state, local
and foreign income and payroll tax liabilities with respect to
the issuance, vesting, exercise or payment of the Award shall be
limited to the number of shares which have a fair market value
on the date of withholding or

A-16

 

repurchase equal to the aggregate amount of such liabilities
based on the minimum statutory withholding rates for federal,
state, local and foreign income tax and payroll tax purposes
that are applicable to such supplemental taxable income.

     
15.4     No Right to Employment
or Services. Nothing in the Plan or any Award Agreement
shall interfere with or limit in any way the right of the
Company or any Subsidiary to terminate any Participant’s
employment or services at any time, nor confer upon any
Participant any right to continue in the employ or service of
the Company or any Subsidiary.

     
15.5     Unfunded Status of
Awards. The Plan is intended to be an
“unfunded” plan for incentive compensation. With
respect to any payments not yet made to a Participant pursuant
to an Award, nothing contained in the Plan or any Award
Agreement shall give the Participant any rights that are greater
than those of a general creditor of the Company or any
Subsidiary.

     
15.6     Indemnification.
To the extent allowable pursuant to applicable law, each member
of the Committee or of the Board shall be indemnified and held
harmless by the Company from any loss, cost, liability, or
expense that may be imposed upon or reasonably incurred by such
member in connection with or resulting from any claim, action,
suit, or proceeding to which he or she may be a party or in
which he or she may be involved by reason of any action or
failure to act pursuant to the Plan and against and from any and
all amounts paid by him or her in satisfaction of judgment in
such action, suit, or proceeding against him or her; provided he
or she gives the Company an opportunity, at its own expense, to
handle and defend the same before he or she undertakes to handle
and defend it on his or her own behalf. The foregoing right of
indemnification shall not be exclusive of any other rights of
indemnification to which such persons may be entitled pursuant
to the Company’s Certificate of Incorporation or bylaws, as
a matter of law, or otherwise, or any power that the Company may
have to indemnify them or hold them harmless.

     
15.7     Relationship to Other
Benefits. No payment pursuant to the Plan shall be taken
into account in determining any benefits pursuant to any
pension, retirement, savings, profit sharing, group insurance,
welfare or other benefit plan of the Company or any Subsidiary
except to the extent otherwise expressly provided in writing in
such other plan or an agreement thereunder.

     
15.8     Expenses. The
expenses of administering the Plan shall be borne by the Company
and its Subsidiaries.

     
15.9     Titles and
Headings. The titles and headings of the Sections in the
Plan are for convenience of reference only and, in the event of
any conflict, the text of the Plan, rather than such titles or
headings, shall control.

     
15.10     Fractional
Shares. No fractional shares of Stock shall be issued
and the Committee shall determine, in its discretion, whether
cash shall be given in lieu of fractional shares or whether such
fractional shares shall be eliminated by rounding up or down as
appropriate.

     
15.11     Limitations Applicable
to Section 16 Persons. Notwithstanding any other
provision of the Plan, the Plan, and any Award granted or
awarded to any Participant who is then subject to
Section 16 of the Exchange Act, shall be subject to any
additional limitations set forth in any applicable exemptive
rule under Section 16 of the Exchange Act (including any
amendment to
Rule 16b-3 under
the Exchange Act) that are requirements for the application of
such exemptive rule. To the extent permitted by applicable law,
the Plan and Awards granted or awarded hereunder shall be deemed
amended to the extent necessary to conform to such applicable
exemptive rule.

     
15.12     Government and Other
Regulations. The obligation of the Company to make
payment of awards in Stock or otherwise shall be subject to all
applicable laws, rules, and regulations, and to such approvals
by government agencies as may be required. The Company shall be
under no obligation to register pursuant to the Securities Act,
as amended, any of the shares of Stock paid pursuant to the
Plan. If the shares paid pursuant to the Plan may in certain
circumstances be exempt from registration pursuant to the
Securities Act, as amended, the Company may restrict the
transfer of such shares in such manner as it deems advisable to
ensure the availability of any such exemption.

A-17

 

     
15.13     Governing Law.
The Plan and all Award Agreements shall be construed in
accordance with and governed by the laws of the State of
Delaware.

     
15.14     Section 409A.
To the extent that the Committee determines that any Award
granted under the Plan is subject to Section 409A of the
Code, the Award Agreement evidencing such Award shall
incorporate the terms and conditions required by
Section 409A of the Code. To the extent applicable, the
Plan and Award Agreements shall be interpreted in accordance
with Section 409A of the Code and Department of Treasury
regulations and other interpretive guidance issued thereunder,
including without limitation any such regulations or other
guidance that may be issued after the Effective Date.
Notwithstanding any provision of the Plan to the contrary, in
the event that following the Effective Date the Committee
determines that any Award may be subject to Section 409A of
the Code and related Department of Treasury guidance (including
such Department of Treasury guidance as may be issued after the
Effective Date), the Committee may adopt such amendments to the
Plan and the applicable Award Agreement or adopt other policies
and procedures (including amendments, policies and procedures
with retroactive effect), or take any other actions, that the
Committee determines are necessary or appropriate to
(a) exempt the Award from Section 409A of the Code
and/or preserve the intended tax treatment of the benefits
provided with respect to the Award, or (b) comply with the
requirements of Section 409A of the Code and related
Department of Treasury guidance.

Signature page to follow

A-18

 

* * * * *

     
I hereby certify that the foregoing Plan was duly adopted by the
Board of Directors of The Spectranetics Corporation
on April 15, 2006.

* * * * *

     
I hereby certify that the foregoing Plan was approved by the
stockholders of The Spectranetics Corporation June 6, 2006.

     
Executed on this 6th day
of June 2006.

		
	 	

/s/ Guy
A. Childs

		
	 	
    Corporate Secretary

A-19exv4w4

 

Exhibit 4.4

€250,000,000 DELAYED DRAW ADDITIONAL FACILITY M ACCESSION AGREEMENT

	 	 	 
	To:

	 	Toronto Dominion (Texas) LLC as Facility Agent and TD Bank Europe
Limited as Security Agent
	 
	 	 
	From:

	 	The banks and financial institutions listed in Schedule 1 to this
Agreement (the Additional Facility M Lenders)

Date: May 2007

UPC Broadband Holding B.V. (formerly known as UPC Distribution Holding B.V) — €1,072,000,000 Term
Credit Agreement dated 16 January 2004 as amended from time to time (the Credit Agreement)

	1.	 	In this Agreement:
	 
	 	 	Commitment Letter means the commitment letter between BNP Paribas, J.P. Morgan Plc and
Toronto Dominion (Texas) LLC as Bookrunners and Mandated Lead Arrangers, BNP Paribas,
JPMorgan Chase Bank, N.A. and Toronto Dominion (Texas) LLC as Underwriters and UPC Financing
Partnership dated 9 February 2007 as amended by an amendment letter dated 26 March 2007.
	 
	 	 	Facility I means the €500,000,000 term loan facility under the Additional Facility Accession
Agreement dated 9 March 2005.
	 
	 	 	Facility M means the €250,000,000 term loan facility which forms this Additional Facility.
	 
	 	 	Facility M Advance means a euro-denominated advance made to UPC Financing by the Additional
Facility M Lenders under Facility M.
	 
	 	 	Facility M Commitment means, in relation to an Additional Facility M Lender, the amount in
euros set opposite its name under the heading “Facility M Commitment” in Schedule 1 to the
counterpart of this Agreement executed by that Additional Facility M Lender, to the extent
not cancelled, transferred, or reduced under the Credit Agreement.
	 
	 	 	Majority Facility M Lenders means Additional Facility M Lenders the aggregate of whose
Facility M Commitments exceeds 662/3 per cent. of the Facility M
Commitments of all Additional Facility M Lenders.
	 
	 	 	50% Date means the date falling nine months after the Effective Date.
	 
	2.	 	Unless otherwise defined in this Agreement, terms defined in the Credit Agreement shall have
the same meaning in this Agreement and a reference to a Clause is a reference to a Clause of
the Credit Agreement.
	 
	3.	 	We refer to Clause 2.2 (Additional Facilities) of the Credit Agreement.
	 
	4.	 	This Agreement will take effect on the date (the Effective Date) being the later of:

 

 

	 	(a)	 	the date on which the Cancellation Notice referred to in paragraph 4(b) of
Schedule 2 to this Agreement has become effective; and
	 
	 	(b)	 	the date on which the Facility Agent has notified UPC Broadband and the
Additional Facility M Lenders that it has received the documents and evidence set out
in Schedule 2 to this Agreement, in each case in form and substance satisfactory to it
or, as the case may be, the requirement to provide any of such documents or evidence
has been waived by the Majority Facility M Lenders.

	5.	 	We, the Additional Facility M Lenders, agree:

	 	(a)	 	to become party to and to be bound by the terms of the Credit Agreement as
Lenders in accordance with Clause 2.2 (Additional Facilities) of the Credit Agreement;
and
	 
	 	(b)	 	to become party to the Security Deed as Lenders and to observe, perform and be
bound by the terms and provisions of the Security Deed in the capacity of Lenders in
accordance with Clause 9.3 (Transfers by Lenders) of the Security Deed.

	6.	 	The Additional Facility Commitment in relation to an Additional Facility M Lender (for the
purpose of the definition of Additional Facility Commitment in Clause 1.1 (Definitions) of the
Credit Agreement) is its Facility M Commitment.

	7.	 	Any interest due in relation to Facility M will be payable on the last day of each Interest
Period in accordance with Clause 8 (Interest) of the Credit Agreement.

	8.	 	(a)	The Availability Period in relation to this Additional Facility is:

	 	(i)	 	in respect of up to 100 per cent of Facility M, the period from
and including the Effective Date up to and including the 50% Date; and
	 
	 	(ii)	 	in respect of up to 50 per cent of Facility M (to the extent
that Facility M has not been utilised during the Availability Period referred
to in (i) above), the period from but excluding the 50% Date up to and
including the date falling three months after the 50% Date,
	 
	 	or, in respect of both (i) and (ii) above, such later date as all the Additional
Facility M Lenders may agree at their discretion.

	 	(b)	 	To the extent that the undrawn Facility M Commitment on the 50% Date is in
excess of an amount equal to 50 per cent of Facility M (such excess amount being the
50% Excess), the 50% Excess will be automatically cancelled.
	 
	 	(c)	 	Facility M may be drawn by 5 Advances and no more than 5 Requests may be made
in respect of Facility M under the Credit Agreement.

	9.	 	(a)	The Borrower must pay a non-utilisation fee computed at the rate of 1.00% per annum on
the undrawn, uncancelled amount of each Additional Facility M Lenders’ Facility M Commitment.
The non-utilisation fee accrues on a daily basis on and from the Effective Date up to and
including the last day of the Availability Period and is payable quarterly in arrears from the
Effective Date and on the last day of the Availability Period.

	 	(b)	 	The Facility Agent will distribute the non-utilisation fee to the Additional
Facility M Lenders in accordance with Clause 14 (Distribution) of the Credit Agreement.

2

 

	10.	 	The Facility M Advance will be used for general corporate and working capital purposes
including the repayment of existing indebtedness.

	11.	 	The Final Maturity Date in respect of this Additional Facility is the earlier of:

	 	(a)	 	31 December 2014; and
	 
	 	(b)	 	if by the date (the Relevant Date) falling 90 days prior to the date on which
the UPC Holding BV issued bonds due 2014 (the Bonds) fall due, those Bonds have not
been repaid, redeemed or refinanced, the Relevant Date.

	12.	 	The outstanding Facility M Advances will be repaid in full on the Final Maturity Date.
	 
	13.	 	The Margin will be 2.00 per cent. per annum.
	 
	14.	 	The Borrower in relation to Facility M is UPC Financing.
	 
	15.	 	In the event that, on or before the date falling 12 months after the final Utilisation Date,
the whole or any part of an outstanding Facility M Advance is prepaid pursuant to Clause 7.3
(Voluntary prepayment) of the Credit Agreement, UPC Broadband will, at the same time, pay to
each Additional Facility M Lender which is to receive any such prepayment an amount equal to 1
per cent. of the principal amount to be prepaid to that Additional Facility M Lender. This
paragraph 15 may be amended or waived with the prior written consent of the Facility Agent
(acting on the instructions of all Additional Facility M Lenders) and UPC Broadband.
	 
	16.	 	Where an Additional Facility M Lender assigns, transfers or novates its rights and/or
obligations in relation to Facility M under Clause 26.2 (Transfers by Lenders) of the Credit
Agreement, such assignment, transfer or novation shall be in a minimum amount of €500,000.
	 

	17.	 	(a)	Facility M may consolidate with one or more other Additional Facility M Accession
Agreements that specify (along with the other terms specified therein) UPC Financing as the
sole Borrower and which specify Additional Facility M Commitments denominated in Euros, to be
drawn in Euros, with the same Final Maturity Date and Margin as specified in this Additional
Facility Accession Agreement. Facility M shall not consolidate with any other Additional
Facility M Accession Agreement until the date falling twelve months after the final
Utilisation Date.

	 	(b)	 	For the purposes this paragraph 17, references to Additional Facility M Lenders
and Facility M Advances shall include Lenders and Advances made under any other
Additional Facility M Accession Agreement.
	 
	 	(c)	 	If the Borrower so requests, an Interest Period for a Facility M Advance will
end on the same day as the current Interest Period for any other Facility M Advance
denominated in the same currency as that Facility M Advance. On the last day of those
Interest periods, those Facility M Advances will be consolidated and treated as one
Facility M Advance.

	18.	 	The representations and warranties set out in Clause 15 (Representations and Warranties) of
the Credit Agreement (with the exception of Clauses 15.6(a) (Consents), 15.10 (Financial
condition), 15.12 (Security Interests), 15.13(b) (Litigation and insolvency proceedings),
15.15 (Tax liabilities), 15.16 (Ownership of assets), 15.18 (Works Council), 15.19 (Borrower
Group Structure), 15.20 (ERISA), 15.24 (UPC Financing) and 15.25 (Dutch Banking Act)) are true
and correct as if made at the Effective Date with reference to the facts and circumstances
then

3

 

	 	 	existing, and as if each reference to the Finance Documents includes a reference to this
Agreement.

	19.	 	We confirm to each Finance Party that:

	 	(a)	 	we have made our own independent investigation and assessment of the financial
condition and affairs of each Obligor and its related entities in connection with its
participation in the Credit Agreement and have not relied on any information provided
to us by a Finance Party in connection with any Finance Document; and
	 
	 	(b)	 	we will continue to make our own independent appraisal of the creditworthiness
of each Obligor and its related entities while any amount is or may be outstanding
under the Credit Agreement or any Additional Facility Commitment is in force.

	20.	 	Each of the Additional Facility M Lenders agrees that without prejudice to Clause 26.3 of the
Credit Agreement, each New Lender (as defined in the Novation Certificate) shall become, by
the execution by the Facility Agent of a Novation Certificate in the form of Schedule 3 to
this Additional Facility Accession Agreement, bound by the terms of this Agreement as if it
were an original party hereto as an Additional Facility M Lender and shall acquire the same
rights and assume the same obligations towards the other parties to this Agreement as would
have been acquired and assumed had the New Lender been an original party to this Agreement as
an Additional Facility M Lender.
	 
	21.	 	The Facility Office and address for notices of each Additional Facility M Lender for the
purposes of Clause 32.2 (Addresses for notices) of the Credit Agreement will be that notified
by each Additional Facility M Lender to the Facility Agent.
	 
	22.	 	This Agreement is governed by English law.
	 
	23.	 	This Agreement may be executed in any number of counterparts and, in the case of each
Additional Facility M Lender, each Additional Facility M Lender’s counterpart will, only
contain the details of that Additional Facility M Lender, and this has the same effect as if
the signatures on the counterparts were on a single copy of this Agreement. All such
counterparts shall be read together as one agreement.

4

 

SCHEDULE 1

ADDITIONAL FACILITY M LENDERS AND COMMITMENTS

	 	 	 	 	 	 	 	 
	 
	 	Additional Facility M Lender	 	 	Facility M Commitment	 	 
	 	 	 	 	(€)	 	 
	 	Toronto Dominion (Texas) LLC
	 	 	 	250,000,000	 	 
	 	 
	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 
	 	Total
	 	 	€	250,000,000	 	 
	 

5

 

SCHEDULE 2

CONDITIONS PRECEDENT DOCUMENTS

	1.	 	Constitutional Documents
	 
	(a)	 	A copy of the constitutional documents of each Obligor (other than UPC Financing) and the
partnership agreement of UPC Financing or, if the Facility Agent already has a copy, a
certificate of an authorised signatory of the relevant Obligor confirming that the copy in the
Facility Agent’s possession is still correct, complete and in full force and effect as at a
date no earlier than the date of this Agreement.
	 
	(b)	 	An extract of the registration of each Obligor established in the Netherlands in the trade
register of the Dutch Chamber of Commerce.
	 
	2.	 	Authorisations
	 
	(a)	 	A copy of a resolution of the board of managing and, to the extent applicable, board of
supervisory directors (or equivalent) and, to the extent that a shareholders’ resolution is
required, a copy of the shareholders’ resolution of each Obligor:

	 	(i)	 	approving the terms of and the transactions contemplated by this Agreement and
(in the case of UPC Broadband and UPC Financing) resolving that it execute the same
(and, in the case of the Guarantors and the Charging Entities (as defined in the
Security Deed) resolving that it execute the confirmation described at paragraph 4(b)
below; and
	 
	 	(ii)	 	(in the case of UPC Broadband and UPC Financing) authorising the issuance of a
power of attorney to a specified person or persons to execute this Agreement on its
behalf and (in the case of the Guarantors and the Charging Entities (as defined in the
Security Deed)) authorising the issuance of a power of attorney to a specified person
or persons to execute the confirmation described in paragraph 4(b) below.

	(b)	 	A specimen of the signature of each person authorised pursuant to its constitutional
documents or to the power of attorney referred to in paragraph (a) above to sign this
Agreement or the confirmation described in paragraph 4(b) below (as appropriate).
	 
	(c)	 	A certificate of an authorised signatory of UPC Broadband and UPC Financing certifying that
each copy document specified in this Schedule and supplied by UPC Broadband or UPC Financing
(as the case may be) is correct, complete and in full force and effect as at a date no earlier
than the date of this Agreement.
	 
	(d)	 	A copy of any other authorisation or other document, opinion or assurance which the Facility
Agent has notified UPC Broadband is necessary in connection with the entry into and
performance of, and the transactions contemplated by, this Agreement or for the validity and
enforceability of this Agreement.
	 
	3.	 	Legal opinions
	 
	(a)	 	A legal opinion of Allen & Overy LLP, English legal advisers to the Facility Agent, addressed
to the Finance Parties.

6

 

	(b)	 	A legal opinion of Allen & Overy LLP, Dutch legal advisers to the Facility Agent, addressed
to the Finance Parties.
	 
	(c)	 	A legal opinion of Allen & Overy LLP, New York legal advisers to the Facility Agent,
addressed to the Finance Parties.
	 
	4.	 	Other documents
	 
	(a)	 	Confirmation (in writing) from (i) each of the Guarantors that its obligations under Clause
14 (Guarantee) of the Credit Agreement and (ii) each of the Charging Entities (as defined in
the Security Deed) that the Security Interests granted to the Beneficiaries pursuant to the
Security Documents and its obligations under the Finance Documents, shall continue unaffected
and that such obligations extend to the Total Commitments as increased by the addition of
Facility M and that such obligations shall be owed to each Finance Party including the
Additional Facility M Lenders.
	 
	(b)	 	Evidence that UPC Broadband has delivered a duly completed Cancellation Notice to the
Facility Agent giving notice of the cancellation of 50 per cent (being €250,000,000) of the
undrawn commitments under Facility I.

7

 

SCHEDULE 3

NOVATION CERTIFICATE

	 	 	 
	To:

	 	[ ] as Facility Agent and [BORROWER]
	 
	 	 
	From:

	 	[THE EXISTING LENDER] and [THE NEW LENDER]

Date: [ ]

UPC Broadband Holding B.V. — €1,072,000,000 Term Credit Agreement dated 16 January, 2004 (the
Credit Agreement)

We refer to Clause 26.3 (Procedure for novations) of the Credit Agreement and clause 9.3 (Transfers
by the Lenders) of the Security Deed. Terms defined in the Credit Agreement or, if not defined in
the Credit Agreement, the Additional Facility Accession Agreement between the Facility Agent, the
Security Agent and the Additional Facility M Lenders dated [ ] 2007, have the same meaning
in this Novation Certificate.

	1.	 	We [ ] (the Existing Lender) and [ ] (the New Lender) agree to the Existing
Lender and the New Lender novating all the Existing Lender’s rights and obligations referred
to in the Schedule in accordance with Clause 26.3 (Procedure for novations) of the Credit
Agreement and clause 9.3 (Transfers by the Lenders) of the Security Deed.
	 
	2.	 	The New Lender confirms that it is bound by the terms of the Additional Facility Accession
Agreement as if it were an original party thereto as an Additional Facility M Lender and shall
acquire the same rights and assume the same obligations towards the other parties to this
Agreement as would have been acquired and assumed had the New Lender been an original party to
this Agreement as an Additional Facility M Lender.
	 
	3.	 	The Facility Office and address for notices of the New Lender for the purposes of Clause 32.2
(Addresses for notices) are set out in the Schedule.
	 
	4.	 	This Novation Certificate may be executed in any number of counterparts and this has the same
effect as if the signatures on the counterparts were on a single copy of this Novation
Certificate.
	 
	5.	 	The specified date for the purposes of Clause 26.3 (c) (Procedure for novations) is [ ] 2007.
	 
	6.	 	This Novation Certificate is governed by English law.

8

 

THE SCHEDULE

Rights and obligations to be novated

[Details of the rights and obligations of the Existing Lender to be novated.]

	 	 	 	 	 
	[New Lender]
	 	 	 	 
	 
	 	 	 	 
	[Facility Office

	 	Address for notices for

administrative purposes	 	 
	 
	 	 	 	 
	 

	 	Address for notices for

credit purposes]	 	 
	 
	 	 	 	 
	[Existing Lender]

	 	[New Lender]
	 	[ ]
	 
	 	 	 	 
	By:

	 	By:
	 	By:
	 
	 	 	 	 
	Date:

	 	Date:
	 	Date:

9

 

SIGNATORIES

FACILITY M LENDERS

TORONTO DOMINION (TEXAS) LLC

By:

TORONTO DOMINION (TEXAS) LLC as Facility Agent

By:

TD BANK EUROPE LIMITED as Security Agent

By:

UPC BROADBAND HOLDING B.V.

By:

By:

UPC FINANCING PARTNERSHIP

By:

By:

10

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