Document:

exv10w4

 

EXHIBIT 10.4

JOINDER AGREEMENT

     JOINDER
AGREEMENT dated as of December 22, 2004 (as amended, modified or supplemented from
time to time, this “Agreement”), made by Trizec Holdings Operating LLC, a Delaware limited
liability company (the “Additional Borrower”). Except as otherwise defined herein, all
capitalized terms used herein and defined in this Credit Agreement (as defined below) shall be used
herein as therein defined.

W-I-T-N-E-S-S-E-T-H:

     WHEREAS, Trizec Properties, Inc. (“Trizec”) and Trizec Holdings, Inc.
(“Holdings” and together with Trizec, collectively, the “Borrowers”), the lenders
from time to time party thereto (the “Lenders”), and Deutsche Bank Trust Company Americas,
as Administrative Agent have entered into a Credit Agreement, dated as of June 29, 2004 (as
amended, amended and restated, modified or supplemented from time to time, the “Credit
Agreement”), providing for the making of Loans to, and the issuance of Letters of Credit for
the account of, the Borrowers as contemplated therein;

     WHEREAS, Trizec has formed the Additional Borrower in accordance with Section 8.04(b) of the
Credit Agreement; and

     WHEREAS, pursuant to Section 1.06(g) of the Credit Agreement, the Borrowers are required to
cause the Additional Borrower to execute and deliver this Agreement;

     NOW, THEREFORE, in consideration of the foregoing and other benefits accruing to the
Additional Borrower, the receipt and sufficiency of which are hereby acknowledged, the Additional
Borrower hereby makes the following representations and warranties to the Administrative Agent and
the Lenders (collectively, the “Creditors”) and hereby agrees with the Creditors as follows:

     1. The Additional Borrower shall be a Credit Party party to the Credit Agreement and the
Subordination Agreement as of the date hereof.

     2. The Additional Borrower has executed and delivered to the Administrative Agent on the date
hereof (x) a Note in replacement of each Note then outstanding to evidence the joint and several
liability of the Borrowers and the Additional Borrower for the indebtedness evidenced thereby, and
(y) all relevant officers’ certificates, resolutions, opinions of counsel and other documentation
of the type described in Sections 5.02 and 5.03 as the Additional Borrower would have had to
deliver if it were a Credit Party party to the Credit Agreement on the Effective Date.

     3. Each of the representations, warranties, and covenants of the Borrowers contained in the
Credit Agreement and in the other Credit Documents are hereby made by the Additional Borrower as if
the Additional Borrower were a borrower party to the Credit Agreement and such other Credit
Documents as of the Effective Date.

     4. The Additional Borrower agrees to do and deliver any and all further acts and other
documents as the Administrative Agent may reasonably request in connection with this Agreement.

 

 

     5. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE CONSTRUED
IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

     6. This Agreement shall bind the Additional Borrower and inure to the benefit of the
Administrative Agent and each of the Lenders and their respective successors and assigns.

[SIGNATURE PAGE IMMEDIATELY FOLLOWS]

-2-

 

     IN WITNESS WHEREOF, the Additional Borrower has duly executed this Agreement as of the day and
year first above written.

	 	 	 	 	 	 	 
	 	 	 	TRIZEC HOLDINGS OPERATING LLC
	

	 	 	 	 	 	 
	 	 	 	By: Trizec Properties, Inc., its managing member
	

	 	 	 	 	 	 
	 	 	 	By:	 /s/ TED R. JADWIN
	

	 	 	 	
 
	

	 	 	 	Name:
	 	Ted R. Jadwin
	

	 	 	 	Title:
	 	 Senior Vice President, Corporate Secretary and General Counsel<PAGE>
                                                                     EXHIBIT 4.4

                                 ENDOCARE, INC.

                          NOTICE OF STOCK OPTION AWARD
                          -----------------------------

         Grantee's Name and Address:                 John V. Cracchiolo

                                                     --------------------------

                                                     --------------------------

         You (the "Grantee") have been granted an option to purchase shares of
Common Stock, subject to the terms and conditions of this Notice of Stock Option
Award (the "Notice") and the Stock Option Award Agreement (the "Option
Agreement") attached hereto, as follows. Unless otherwise defined herein, the
terms defined in the Option Agreement shall have the same defined meanings in
this Notice.

         Date of Award                               October 30, 2003

         Vesting Commencement Date                   October 30, 2003

         Exercise Price per Share                    $4.50

         Total Number of Shares Subject
         to the Option (the "Shares")                385,000

         Total Exercise Price                        $1,732,500

         Type of Option                              Non-Qualified Stock Option

         Expiration Date:                            October 30, 2013

         Grant #                                     644

Vesting Schedule:
----------------

         100% of the Shares subject to the Option shall be vested as of the
Vesting Commencement Date.

         IN WITNESS WHEREOF, the Company and the Grantee have executed this
Notice and agree that the Option is to be governed by the terms and conditions
of this Notice and the Option Agreement.

                                    Endocare, Inc.,
                                    a Delaware corporation

                                    By: /s/ William Nydam
                                        ---------------------------------------

                                    Title: President
                                           ------------------------------------

THE GRANTEE ACKNOWLEDGES AND AGREES THAT NOTHING IN THIS NOTICE OR THE OPTION
AGREEMENT SHALL CONFER UPON THE GRANTEE ANY RIGHT WITH RESPECT TO FUTURE AWARDS.

                                       1
<PAGE>

         The Grantee acknowledges receipt of a copy of the Option Agreement, and
represents that he or she is familiar with the terms and provisions thereof, and
hereby accepts the Option subject to all of the terms and provisions hereof and
thereof. The Grantee has reviewed this Notice and the Option Agreement in their
entirety, has had an opportunity to obtain the advice of counsel prior to
executing this Notice, and fully understands all provisions of this Notice and
the Option Agreement. The Grantee hereby agrees that all disputes arising out of
or relating to this Notice and the Option Agreement shall be resolved in
accordance with Section 15 of the Option Agreement. The Grantee further agrees
to notify the Company upon any change in the residence address indicated in this
Notice.

Dated: 1-17-04               Signed: /s/ John V. Cracchiolo
       -----------                   -------------------------
                                           Grantee

                                       2
<PAGE>

                                 ENDOCARE, INC.

                          STOCK OPTION AWARD AGREEMENT
                          ----------------------------

         1. Grant of Option. Endocare, Inc., a Delaware corporation (the
"Company"), hereby grants to the Grantee (the "Grantee") named in the Notice of
Stock Option Award (the "Notice"), an option (the "Option") to purchase the
Total Number of Shares Subject to the Option (the "Shares") set forth in the
Notice, at the Exercise Price per Share set forth in the Notice (the "Exercise
Price") subject to the terms and provisions of this Stock Option Award Agreement
(the "Option Agreement") and the Notice which are incorporated herein by
reference.

         2. Exercise of Option.

            (a) Right to Exercise. The Option shall be exercisable during its
term in accordance with the Vesting Schedule set out in the Notice and with the
applicable provisions of this Option Agreement. The Option shall be subject to
the provisions of Section 18 of this Option Agreement relating to the
exercisability or termination of the Option in the event of a Corporate
Transaction. The Grantee shall be subject to reasonable limitations on the
number of requested exercises during any monthly or weekly period as determined
by the Board. In no event shall the Company issue fractional Shares.

            (b) Method of Exercise. The Option shall be exercisable by delivery
of an exercise notice (a form of which is attached as Exhibit A) or by such
other procedure as specified from time to time by the Board which shall state
the election to exercise the Option, the whole number of Shares in respect of
which the Option is being exercised, and such other provisions as may be
required by the Board. The exercise notice shall be delivered in person, by
certified mail, or by such other method (including electronic transmission) as
determined from time to time by the Board to the Company accompanied by payment
of the Exercise Price. The Option shall be deemed to be exercised upon receipt
by the Company of such notice accompanied by the Exercise Price, which, to the
extent selected, shall be deemed to be satisfied by use of the broker-dealer
sale and remittance procedure to pay the Exercise Price provided in Section
3(d), below.

            (c) Taxes. No Shares will be delivered to the Grantee or other
person pursuant to the exercise of the Option until the Grantee or other person
has made arrangements acceptable to the Board for the satisfaction of applicable
income tax and employment tax withholding obligations, including, without
limitation, obligations incident to the receipt of Shares. Upon exercise of the
Option, the Company or the Grantee's employer may offset or withhold (from any
amount owed by the Company or the Grantee's employer to the Grantee) or collect
from the Grantee or other person an amount sufficient to satisfy such tax
obligations and/or the employer's withholding obligations.

         3. Method of Payment. Payment of the Exercise Price shall be made by
any of the following, or a combination thereof, at the election of the Grantee;
provided, however, that such exercise method does not then violate any
Applicable Law and, provided further, that the portion

                            1
<PAGE>

of the Exercise Price equal to the par value of the Shares must be paid in cash
or other legal consideration permitted by the Delaware General Corporation Law:

            (a) cash;

            (b) check;

            (c) surrender of Shares or delivery of a properly executed form of
attestation of ownership of Shares as the Board may require (including
withholding of Shares otherwise deliverable upon exercise of the Option) which
have a Fair Market Value on the date of surrender or attestation equal to the
aggregate Exercise Price of the Shares as to which the Option is being exercised
(but only to the extent that such exercise of the Option would not result in an
accounting compensation charge with respect to the Shares used to pay the
exercise price); or

            (d) payment through a broker-dealer sale and remittance procedure
pursuant to which the Grantee (i) shall provide written instructions to a
Company-designated brokerage firm to effect the immediate sale of some or all of
the purchased Shares and remit to the Company sufficient funds to cover the
aggregate exercise price payable for the purchased Shares and (ii) shall provide
written directives to the Company to deliver the certificates for the purchased
Shares directly to such brokerage firm in order to complete the sale
transaction.

         4. Restrictions on Exercise. The Option may not be exercised if the
issuance of the Shares subject to the Option upon such exercise would constitute
a violation of any Applicable Laws or if the Shares subject to the Option have
not been registered pursuant to an effective Registration Statement on Form S-8,
unless the Company determines in its sole discretion that the exercise of the
Option without having been registered pursuant to an effective Registration
Statement on Form S-8 would not constitute a violation of any Applicable Laws.
The Company agrees that it will include Optionee's option on a Registration
Statement on Form S-8 on or within a reasonable time, but no more than 30 days,
after the Company next files a Registration Statement on Form S-8 for shares
underlying options issued pursuant to the Company's Amended and Restated 1995
Stock Option Plan (the "1995 Plan"). Optionee acknowledges that the Company
makes no representation or warranty regarding the eligibility of the Option for
inclusion on a Registration Statement on Form S-8 or the likelihood that such
Registration Statement on Form S-8 will become effective.

         5. Representations, Warranties and Covenants of Grantee. The Grantee
hereby represents, warrants and covenants to and for the benefit of the Company,
with knowledge that the Company is relying thereon in issuing the Option to the
Grantee, as follows:

            (a) The Option and the Shares issuable upon exercise of the Option
(collectively, the "Securities") shall be acquired for investment for the
Grantee's own account, not as a nominee or agent, and not with a view to the
resale or distribution of any part thereof. The Grantee has no present intention
of selling, granting any participation in, or otherwise distributing the same.
The Grantee further represents that the Grantee does not have any contract,
undertaking, agreement or arrangement with any person to sell, transfer or grant
participation to such person or to any third person, with respect to any of the
Securities.

                                       2
<PAGE>

            (b) The Grantee, by reason of the Grantee's business or financial
experience, is capable of evaluating the merits and risks of the investment in
the Securities and of protecting the Grantee's interests in connection with the
investment in the Securities.

            (c) The Grantee has a preexisting personal or business relationship
with the Company or one or more of its officers, directors or controlling
persons and is aware of its (their) character, business acumen, and general
business and financial condition.

            (d) The Grantee is an "accredited investor" within the meaning of
Rule 501(a) of Regulation D adopted by the Securities and Exchange Commission
under the Securities Act of 1933.

            (e) The Grantee has not seen or received any advertisement or
general solicitation with respect to the sale of the Securities.

            (f) The Grantee has been provided with financial and other written
information about the Company, and has been given the opportunity by the Company
to obtain any information and ask questions concerning the Company, the
Securities, and the Grantee's investment that the Grantee felt necessary. To the
extent requested, Grantee has received satisfactory information and answers.

            (g) In reaching the decision to invest in the Securities, the
Grantee evaluated such Grantee's financial resources and investment position and
the risks associated with the investment, and acknowledges that such Grantee is
able to bear the economic risks of this investment.

            (h) The Grantee agrees to not exercise the Option until the
Securities are registered pursuant to an effective Registration Statement on
Form S-8, unless the Company has determined in its sole discretion that such
exercise would not then violate any Applicable Law.

         6. [Intentionally Omitted].

         7. [Intentionally Omitted].

         8. Transferability of Option. The Option may not be transferred in any
manner other than by will or by the laws of descent and distribution, provided,
however, that the Option may be transferred to members of the Grantee's
Immediate Family to the extent and in the manner authorized by the Board.
Notwithstanding the foregoing, the Grantee may designate a member of the
Grantee's Immediate Family as a beneficiary of the Grantee's Option in the event
of the Grantee's death on a beneficiary designation form provided by the Board.
The terms of the Option shall be binding upon the executors, administrators,
heirs and successors of the Grantee.

         9. Term of Option. The Option must be exercised no later than the
Expiration Date set forth in the Notice or such earlier date as otherwise
provided herein. After the Expiration Date or such earlier date, the Option
shall be of no further force or effect and may not be exercised.

                                       3
<PAGE>

         10. Stop-Transfer Notices. In order to ensure compliance with the
restrictions on transfer set forth in this Option Agreement or the Notice, the
Company may issue appropriate "stop transfer" instructions to its transfer
agent, if any, and, if the Company transfers its own securities, it may make
appropriate notations to the same effect in its own records.

         11. Refusal to Transfer. The Company shall not be required (i) to
transfer on its books any Shares that have been sold or otherwise transferred in
violation of any of the provisions of this Option Agreement or (ii) to treat as
owner of such Shares or to accord the right to vote or pay dividends to any
purchaser or other transferee to whom such Shares shall have been so
transferred.

         12. Tax Consequences. Set forth below is a brief summary as of the date
of this Option Agreement of some of the federal tax consequences of exercise of
the Option and disposition of the Shares. THIS SUMMARY IS NECESSARILY
INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. THE GRANTEE
SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THE OPTION OR DISPOSING OF THE
SHARES.

            (a) Exercise of Non-Qualified Stock Option. On exercise of a
Non-Qualified Stock Option, the Grantee will be treated as having received
compensation income (taxable at ordinary income tax rates) equal to the excess,
if any, of the Fair Market Value of the Shares on the date of exercise over the
Exercise Price. If the Grantee is an Employee or a former Employee, the Company
will be required to withhold from the Grantee's compensation or collect from the
Grantee and pay to the applicable taxing authorities an amount in cash equal to
a percentage of this compensation income at the time of exercise, and may refuse
to honor the exercise and refuse to deliver Shares if such withholding amounts
are not delivered at the time of exercise.

            (b) Disposition of Shares. If Shares are held for more than one
year, any gain realized on disposition of the Shares will be treated as
long-term capital gain for federal income tax purposes.

         13. Entire Agreement: Governing Law. The Notice and this Option
Agreement constitute the entire agreement of the parties with respect to the
subject matter hereof and supersede in their entirety all prior undertakings and
agreements of the Company and the Grantee with respect to the subject matter
hereof, and may not be modified adversely to the Grantee's interest except by
means of a writing signed by the Company and the Grantee. Nothing in the Notice
and this Option Agreement (except as expressly provided therein) is intended to
confer any rights or remedies on any persons other than the parties. The Notice
and this Option Agreement are to be construed in accordance with and governed by
the internal laws of the State of California without giving effect to any choice
of law rule that would cause the application of the laws of any jurisdiction
other than the internal laws of the State of California to the rights and duties
of the parties. Should any provision of the Notice or this Option Agreement be
determined by a court of law to be illegal or unenforceable, such provision
shall be enforced to the fullest extent allowed by law and the other provisions
shall nevertheless remain effective and shall remain enforceable.

                                       4
<PAGE>

         14. Headings. The captions used in the Notice and this Option Agreement
are inserted for convenience and shall not be deemed a part of the Option for
construction or interpretation.

         15. Dispute Resolution. The provisions of this Section 15 shall be the
exclusive means of resolving disputes arising out of or relating to the Notice
and this Option Agreement. The Company, the Grantee, and the Grantee's assignees
(the "parties") shall attempt in good faith to resolve any disputes arising out
of or relating to the Notice and this Option Agreement by negotiation between
individuals who have authority to settle the controversy. Negotiations shall be
commenced by either party by notice of a written statement of the party's
position and the name and title of the individual who will represent the party.
Within thirty (30) days of the written notification, the parties shall meet at a
mutually acceptable time and place, and thereafter as often as they reasonably
deem necessary, to resolve the dispute. If the dispute has not been resolved by
negotiation, the parties agree that any suit, action, or proceeding arising out
of or relating to the Notice or this Option Agreement shall be brought in the
United States District Court for the Southern District of California (or should
such court lack jurisdiction to hear such action, suit or proceeding, in a
California state court in the County of San Diego) and that the parties shall
submit to the jurisdiction of such court. The parties irrevocably waive, to the
fullest extent permitted by law, any objection the party may have to the laying
of venue for any such suit, action or proceeding brought in such court. THE
PARTIES ALSO EXPRESSLY WAIVE ANY RIGHT THEY HAVE OR MAY HAVE TO A JURY TRIAL OF
ANY SUCH SUIT, ACTION OR PROCEEDING. If any one or more provisions of this
Section 15 shall for any reason be held invalid or unenforceable, it is the
specific intent of the parties that such provisions shall be modified to the
minimum extent necessary to make it or its application valid and enforceable.

         16. Notices. Any notice required or permitted hereunder shall be given
in writing and shall be deemed effectively given upon personal delivery, upon
deposit for delivery by an internationally recognized express mail courier
service or upon deposit in the United States mail by certified mail (if the
parties are within the United States), with postage and fees prepaid, addressed
to the other party at its address as shown in these instruments, or to such
other address as such party may designate in writing from time to time to the
other party.

         17. Adjustments Upon Changes in Capitalization. Subject to any required
action by the stockholders of the Company, the number of Shares covered by the
Option, the exercise price of the Option, as well as any other terms that the
Board determines require adjustment shall be proportionately adjusted for (i)
any increase or decrease in the number of issued Shares resulting from a stock
split, reverse stock split, stock dividend, combination or reclassification of
the Shares, or similar transaction affecting the Shares, (ii) any other increase
or decrease in the number of issued Shares effected without receipt of
consideration by the Company, or (iii) as the Board may determine in its
discretion, any other transaction with respect to Common Stock including a
corporate merger, consolidation, acquisition of property or stock, separation
(including a spin-off or other distribution of stock or property),
reorganization, liquidation (whether partial or complete) or any similar
transaction; provided, however that conversion of any convertible securities of
the Company shall not be deemed to have been "effected without receipt of
consideration." Such adjustment shall be made by the Board and its determination
shall be final, binding and conclusive. Except as the Board determines, no
issuance by the

                                       5
<PAGE>

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 hereof shall be
made with respect to, the number or price of Shares subject to the Option.

         18. Corporate Transactions. Effective upon the consummation of a
Corporate Transaction, the Option shall terminate. However, the Option shall not
terminate to the extent it is Assumed in connection with the Corporate
Transaction. In the event of a Corporate Transaction, the Company will use
reasonable commercial efforts to provide notice thereof in substantially the
same fashion as other holders of options to purchase shares of Common Stock.

         19. Definitions. As used herein, the following definitions shall apply:

            (a) "Applicable Laws" means the legal requirements applicable to
Options, if any, under applicable provisions of federal securities laws, state
corporate and securities laws, the Code, the rules of any applicable stock
exchange or national market system, and the rules of any foreign jurisdiction
applicable to Options granted to residents therein.

            (b) "Assumed" means that pursuant to a Corporate Transaction either
(i) the Option is expressly affirmed by the Company or (ii) the contractual
obligations represented by the Option are expressly assumed (and not simply by
operation of law) by the successor entity or its Parent in connection with the
Corporate Transaction with appropriate adjustments to the Exercise Price and the
number and type of securities of the successor entity or its Parent subject to
the Option which (at least) preserves the compensation element of the Option
existing at the time of the Corporate Transaction as determined in accordance
with the instruments evidencing the agreement to assume the Option.

            (c) "Board" means the Board of Directors of the Company and shall
include any committee of the Board or Officer of the Company to which the Board
has delegated its authority under this Agreement.

            (d) [Intentionally Omitted].

            (e) "Code" means the Internal Revenue Code of 1986, as amended.

            (f) "Common Stock" means the common stock of the Company.

            (g) "Company" means Endocare, Inc., a Delaware corporation.

            (h) [Intentionally Omitted].

            (i) [Intentionally Omitted].

            (j) "Corporate Transaction" means any of the following transactions:

               (i) a merger or consolidation in which the Company is not the
surviving entity, except for a transaction the principal purpose of which is to
change the state in which the Company is incorporated;

                                       6
<PAGE>

               (ii) the sale, transfer or other disposition of all or
substantially all of the assets of the Company (including the capital stock of
the Company's subsidiary corporations);

               (iii) the complete liquidation or dissolution of the Company;

               (iv) any reverse merger or series of related transactions
culminating in a reverse merger (including, but not limited to, a tender offer
followed by a reverse merger) in which the Company is the surviving entity but
in which securities possessing more than fifty percent (50%) of the total
combined voting power of the Company's outstanding securities are transferred to
a person or persons different from those who held such securities immediately
prior to such merger or the initial transaction culminating in such merger but
excluding any such transaction or series of related transactions that the Board
determines shall not be a Corporate Transaction; or

               (v) acquisition in a single or series of related transactions by
any person or related group of persons (other than the Company or by a
Company-sponsored employee benefit plan) of beneficial ownership (within the
meaning of Rule 13d-3 of the Exchange Act) of securities possessing more than
fifty percent (50%) of the total combined voting power of the Company's
outstanding securities but excluding any such transaction or series of related
transactions that the Board determines shall not be a Corporate Transaction.

            (k) "Director" means a member of the Board or the board of directors
of any Related Entity.

            (l) [Intentionally Omitted].

            (m) "Employee" means any person, including an Officer or Director,
who is in the employ of the Company or any Related Entity, subject to the
control and direction of the Company or any Related Entity as to both the work
to be performed and the manner and method of performance. The payment of a
director's fee by the Company or a Related Entity shall not be sufficient to
constitute "employment" by the Company.

            (n) "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

            (o) "Fair Market Value" means, as of any date, the value of Common
Stock determined as follows:

               (i) If the Common Stock is listed on any established stock
exchange or a national market system, including without limitation The Nasdaq
National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its
Fair Market Value shall be the closing sales price for such stock (or the
closing bid, if no sales were reported) as quoted on such exchange or system on
the date of determination (or, if no closing sales price or closing bid was
reported on that date, as applicable, on the last trading date such closing
sales price or closing bid was reported), as reported in The Wall Street Journal
or such other source as the Board deems reliable;

                                       7
<PAGE>

               (ii) If the Common Stock is regularly quoted on an automated
quotation system (including the OTC Bulletin Board) or by a recognized
securities dealer, its Fair Market Value shall be the closing sales price for
such stock as quoted on such system on the date of determination, but if selling
prices are not reported, the Fair Market Value of a share of Common Stock shall
be the mean between the high bid and low asked prices for the Common Stock on
the date of determination (or, if no such prices were reported on that date, on
the last date such prices were reported), as reported in The Wall Street Journal
or such other source as the Board deems reliable; or

               (iii) In the absence of an established market for the Common
Stock of the type described in (i) and (ii), above, the Fair Market Value
thereof shall be determined by the Board in good faith.

            (p) "Immediate Family" means any child, stepchild, grandchild,
parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew,
mother-in-law, father-in-law, son-in law, daughter-in-law, brother-in-law, or
sister-in-law, including adoptive relationships, any person sharing the
Grantee's household (other than a tenant or employee), a trust in which these
persons (or the Grantee) have more than fifty percent (50%) of the beneficial
interest, a foundation in which these persons (or the Grantee) control the
management of assets, and any other entity in which these persons (or the
Grantee) own more than fifty percent (50%) of the voting interests.

            (q) "Non-Qualified Stock Option" means an Option not intended to
qualify as an incentive stock option within the meaning of Section 422 of the
Code.

            (r) "Officer" means a person who is an officer of the Company or a
Related Entity within the meaning of Section 16 of the Exchange Act and the
rules and regulations promulgated thereunder.

            (s) "Parent" means a "parent corporation," whether now or hereafter
existing, as defined in Section 424(e) of the Code.

            (t) "Related Entity" means any Parent or Subsidiary of the Company
and any business, corporation, partnership, limited liability company or other
entity in which the Company or a Parent or a Subsidiary of the Company holds a
substantial ownership interest, directly or indirectly.

            (u) [Intentionally Omitted].

            (v) "Share" means a share of the Common Stock.

            (w) "Subsidiary" means a "subsidiary corporation," whether now or
hereafter existing, as defined in Section 424(f) of the Code.

                                       8

<PAGE>

                                    EXHIBIT A
                                    ---------

                                 EXERCISE NOTICE
                                 ---------------

Endocare, Inc.
201 Technology Drive
Irvine, CA  92618
Attention: Secretary

         1. Effective as of today, ______________, ___ the undersigned (the
"Grantee") hereby elects to exercise the Grantee's option to purchase
___________ shares of the Common Stock (the "Shares") of Endocare, Inc. (the
"Company") under and pursuant to the Stock Option Award Agreement (the "Option
Agreement") and Notice of Stock Option Award (the "Notice") dated
______________, ________. Unless otherwise defined herein, the terms defined in
the Option Agreement shall have the same defined meanings in this Exercise
Notice.

         2. Representations of the Grantee. The Grantee acknowledges that the
Grantee has received, read and understood the Notice and the Option Agreement
and agrees to abide by and be bound by their terms and conditions.

         3. Rights as Stockholder. Until the stock certificate evidencing such
Shares is issued (as evidenced by the appropriate entry on the books of the
Company or of a duly authorized transfer agent of the Company), no right to vote
or receive dividends or any other rights as a stockholder shall exist with
respect to the Shares, notwithstanding the exercise of the Option. The Company
shall issue (or cause to be issued) such stock certificate promptly after the
Option is exercised. No adjustment will be made for a dividend or other right
for which the record date is prior to the date the stock certificate is issued,
except as provided in Section 17 of the Option Agreement.

         4. Delivery of Payment. The Grantee herewith delivers to the Company
the full Exercise Price for the Shares, which, to the extent selected, shall be
deemed to be satisfied by use of the broker-dealer sale and remittance procedure
to pay the Exercise Price provided in Section 3(d) of the Option Agreement.

         5. Tax Consultation. The Grantee understands that the Grantee may
suffer adverse tax consequences as a result of the Grantee's purchase or
disposition of the Shares. The Grantee represents that the Grantee has consulted
with any tax consultants the Grantee deems advisable in connection with the
purchase or disposition of the Shares and that the Grantee is not relying on the
Company for any tax advice.

         6. Taxes. The Grantee agrees to satisfy all applicable foreign,
federal, state and local income and employment tax withholding obligations and
herewith delivers to the Company the full amount of such obligations or has made
arrangements acceptable to the Company to satisfy such obligations. If the
Company is required to satisfy any foreign, federal, state or local income or
employment tax withholding obligations as a result of such an early disposition,
the Grantee agrees to satisfy the amount of such withholding in a manner that
the Board prescribes.

                                       1
<PAGE>

         7. Successors and Assigns. The Company may assign any of its rights
under this Exercise Notice to single or multiple assignees, and this agreement
shall inure to the benefit of the successors and assigns of the Company. Subject
to the restrictions on transfer herein set forth, this Exercise Notice shall be
binding upon the Grantee and his or her heirs, executors, administrators,
successors and assigns.

         8. Headings. The captions used in this Exercise Notice are inserted for
convenience and shall not be deemed a part of this agreement for construction or
interpretation.

         9. Dispute Resolution. The provisions of Section 15 of the Option
Agreement shall be the exclusive means of resolving disputes arising out of or
relating to this Exercise Notice.

         10. Governing Law; Severability. This Exercise Notice is to be
construed in accordance with and governed by the internal laws of the State of
California without giving effect to any choice of law rule that would cause the
application of the laws of any jurisdiction other than the internal laws of the
State of California to the rights and duties of the parties. Should any
provision of this Exercise Notice be determined by a court of law to be illegal
or unenforceable, such provision shall be enforced to the fullest extent allowed
by law and the other provisions shall nevertheless remain effective and shall
remain enforceable.

         11. Notices. Any notice required or permitted hereunder shall be given
in writing and shall be deemed effectively given upon personal delivery, upon
deposit for delivery by an internationally recognized express mail courier
service or upon deposit in the United States mail by certified mail (if the
parties are within the United States), with postage and fees prepaid, addressed
to the other party at its address as shown below beneath its signature, or to
such other address as such party may designate in writing from time to time to
the other party.

         12. Further Instruments. The parties agree to execute such further
instruments and to take such further action as may be reasonably necessary to
carry out the purposes and intent of this agreement.

         13. Entire Agreement. The Notice and the Option Agreement are
incorporated herein by reference and together with this Exercise Notice
constitute the entire agreement of the parties with respect to the subject
matter hereof and supersede in their entirety all prior undertakings and
agreements of the Company and the Grantee with respect to the subject matter
hereof, and may not be modified adversely to the Grantee's interest except by
means of a writing signed by the Company and the Grantee. Nothing in the Notice
the Option Agreement and this Exercise Notice (except as expressly provided
therein) is intended to confer any rights or remedies on any persons other than
the parties.

                                       2
<PAGE>

Submitted by:                                       Accepted by:

GRANTEE:                                            ENDOCARE, INC.

                                                    By:
                                                       ------------------------
                                                    Title:
--------------------------------------------              ---------------------
             (Signature)

Address:                                            Address:
-------                                             -------

---------------------------------------------       201 Technology Drive
---------------------------------------------       Irvine, CA  92618

                                       3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}]]