Document:

1992 STOCK OPTION PLAN FOR OUTSIDE DIRECTORS

 
Exhibit 10.6

ALEXION PHARMACEUTICALS, INC. 
1992 STOCK OPTION PLAN FOR OUTSIDE DIRECTORS 
(As amended)

 
1.    Purpose. 
 
The purpose of this 1992 Stock Option Plan for Outside Directors (the “Plan”) of Alexion Pharmaceuticals, Inc. (the “Corporation”) is to enable the Corporation to compensate eligible directors of the
Corporation and to encourage the highest level of performance by providing such persons with a proprietary interest in the Corporation’s success and progress by granting them shares of the Corporation’s Common Stock, par value $.0001 per
share (“Common Stock”). 
 
2.    Administration of the Plan. 
 
The Plan shall be administered by a committee (the “Committee”) of the Board of Directors of the Corporation (the “Board”), which shall consist of one or more members of the Board,
appointed by the Board, who are outside directors (as defined below) or by the Board. The interpretation and construction by the Committee of any provisions of the Plan or of any other matters related to the Plan shall be final. The Committee may
from time to time adopt such rules and regulations for carrying out the Plan as it may deem advisable. No member of the Board or the Committee shall be liable for any action or determination made in good faith with respect to the Plan. The Plan
shall be interpreted and implemented such that the eligible outside directors will not fail, by reason of the Plan or its implementation, to be “non-employee directors” within the meaning of Rule 16b-3 of the Securities Exchange Act of
1934 (the “Exchange Act”), as such Rule and such Act may be amended. 
 
3.    Eligibility and Issuances. 
 
(a)    Eligibility. Directors of the Corporation who (i) are neither officers nor employees nor consultants of the Corporation or any of its subsidiaries (other than the Chairman of
the Board of Directors of the Corporation who shall be eligible) and (ii) are not affiliated with any person referred to in (i) above (“outside directors”) shall be eligible to receive options to purchase Common Stock under the Plan.

 
(b)    Issuances. 
 
(i)    Each outside director shall be issued an option to
purchase 12,000 shares of the Corporation’s Common Stock (the “Initial Option”) on the date of his initial election or appointment to the Board of Directors (the “Initial Grant Date”) on the following terms: 
 
(a)    The option exercise price per share of Common
Stock shall be the Fair Market Value (as defined below) of the Common Stock covered by such Initial Option on the Initial Grant Date. 
 
(b)    Except as provided herein, the term of an Initial Option shall be for a period of ten (10) years from the Initial Grant Date.

 
(ii)    In
addition, each outside director shall, on the date of each annual meeting of stockholders at which he is reelected as a director (the “Additional Grant Date”), if he is still an outside director on such date and has attended, either in
person or by telephone, at least seventy-five percent (75%) of the meetings of the Board of Directors that were held while he was a director since the prior annual meeting of stockholders, be granted an option to purchase 7,500 shares of Common
Stock (the “Additional Option” and, together with the Initial Option, an “Option”) on the following terms: 
 
(a)    The option exercise price per share of Common Stock shall be the Fair Market Value (as defined below) of the Common Stock
covered by such Additional Option on the Additional Grant Date. 
 
(b)    Except as provided herein, the term of an Additional Option shall be for a period of ten (10) years from the Additional Grant Date. 
 
(iii)    “Fair Market Value” shall mean, for each Initial Grant Date or Additional Grant Date
(collectively, a “Grant Date”), (A) if the Common Stock is listed or admitted to trading on the New York Stock Exchange (the “NYSE”) or the American Stock Exchange (the “ASE”), the last reported sale price of the Common
Stock on such date or, if no sale takes place on such date, the closing asked prices of the Common Stock on such exchange as of such date, in each case as officially reported on the NYSE or the ASE, or (B) if no shares of Common Stock are then
listed or admitted to trading on the NYSE or the ASE, the last reported sales price of the Common Stock on such date on the Nasdaq National Market (“NASDAQ”) or, if no shares of Common Stock are then quoted on NASDAQ, the average of the
closing bid and the highest asked prices of the Common Stock on such date on NASDAQ, or, if no shares of Common Stock are then quoted on NASDAQ, the average of the highest bid and the lowest asked prices of the Common Stock on such date as reported
on the over-the-counter system. If no closing bid and lowest asked prices thereof are then so quoted or published in the over-the-counter market, “Fair Market Value” shall mean the fair value per share of Common Stock (assuming for the
purposes of this calculation the economic equivalence of all shares of classes of capital stock), as determined on a fully diluted basis in good faith by the Board, as of a date which is 15 days preceding the Grant Date. 
 
(iv)    Options granted hereunder shall not be
“incentive stock options” within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended. 
 
4.    Prohibition on Repricing of Options. 
 
Under no circumstances may the Board or the Committee, directly or indirectly, reprice or otherwise modify any outstanding
Options granted pursuant to the Plan to effect a reduction in the exercise price thereof. 
 
5.    Regulatory Compliance and Listing. 
 
The issuance or delivery of any Option may be postponed by the Corporation, and an Option shall not be exercisable, for such period as may be required to comply with the Federal securities laws, state
“blue sky” laws, any applicable listing requirements of any applicable securities 

 
exchange and any other law or
regulation applicable to the issuance, delivery or exercise of such Options and the Corporation shall not be obligated to issue or deliver any Options or shares of Common Stock if the issuance or delivery of such Options or shares would constitute a
violation of any law or any regulation of any governmental authority or applicable securities exchange. 
 
6.    Restrictions on Exercisability. 
 
(a)    Except as provided in Section 6(b) below, each Option granted under the Plan may be exercisable as to one-third of the total
number of shares issuable under such Option on each of the three successive anniversaries of the Grant Date of such Option. 
 
(b)    If any event constituting a “Change in Control of the Corporation” shall occur, all Options granted under the Plan,
which are outstanding at the time a Change of Control of the Corporation shall occur, shall immediately become exercisable. A “Change in Control of the Corporation” shall be deemed to occur if (i) there shall be consummated (x) any
consolidation or merger of the Corporation in which the Corporation is not the continuing or surviving corporation or pursuant to which shares of the Corporation’s Common Stock would be converted into cash, securities or other property, other
than a merger of the Corporation in which the holders of the Corporation’s Common Stock immediately prior to the merger have the same proportionate ownership of common stock of the surviving corporation immediately after the merger, or (y) any
sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all, or substantially all, of the assets of the Corporation, or (ii) the stockholders of the Corporation shall approve any plan or proposal for
liquidation or dissolution of the Corporation, or (iii) any person (as such term is used in Section 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), shall become the beneficial owner (within the
meaning of Rule 13d-3 under the Exchange Act) of 40% or more of the Corporation’s outstanding Common Stock other than pursuant to a plan or arrangement entered into by such person and the Corporation, or (iv) during any period of two
consecutive years, individuals who at the beginning of such period constitute the entire Board shall cease for any reason to constitute a majority thereof unless the election, or the nomination for election by the Corporation’s stockholders, of
each new director was approved by a vote of at least two-thirds of the directors then still in office who were directors at the beginning of the period. 
 
7.    Cessation as Director. 
 
In the event that the holder of an Option granted pursuant to the Plan shall cease to be a director of the Corporation for any reason, such holder may
exercise any portion of such Option that is exercisable by him at the time he ceases to be a director of the Corporation, but only to the extent such Option is exercisable as of such date, within six months after the date he ceases to be a director
of the Corporation. 
 
8.    Death. 
 
In the event that a holder of an Option granted pursuant to the Plan shall die, his beneficiary may exercise any portion of such Option that was exercisable by the deceased Optionee at the time of his death, but only to the extent
such Option is exercisable as of such date, within twelve months after the date of his death. 

 
9.    
Stock Splits, Mergers, etc. 
 
In the event of any
stock split, stock dividend or similar transaction which increases or decreases the number of outstanding shares of Common Stock, appropriate adjustment shall be made by the Board, whose determination shall be final, to the number and option
exercise price per share of Common Stock which may be purchased under any outstanding Options. In the case of a merger, consolidation or similar transaction which results in a replacement of the Corporation’s Common Stock and stock of another
corporation but does not constitute a Change in Control of the Corporation, the Corporation will make a reasonable effort, but shall not be required, to replace any outstanding Options granted under the Plan with comparable options to purchase the
stock of such other corporation, or will provide for immediate maturity of all outstanding Options, with all Options not being exercised within the time period specified by the Board of Directors being terminated. 
 
10.    Transferability. 
 
Options are not assignable or transferable, except by will or the laws of
descent and distribution to the extent set forth in Section 8 and during a director’s lifetime may be exercised only by him. Notwithstanding the preceding sentence, the Committee may, in its sole discretion, permit an optionholder to transfer
an Option granted pursuant to the Plan, in whole or in part, to such persons and/or entities as are approved by the Committee from time to time and subject to such terms and conditions as the Committee may determine from time to time, including,
without limitation, such terms and conditions as are necessary or desirable to comply with applicable law. 
 
11.    Exercise of Options. 
 
An optionholder electing to exercise an Option shall give written notice to the Corporation of such election and of the number of shares of Common Stock that he has elected to acquire. An optionholder
shall have no rights of a stockholder with respect to shares of Common Stock covered by his Option until after the date of issuance of a stock certificate to him upon partial or complete exercise of his option. 
 
12.    Payment. 
 
The Option exercise price shall be payable in cash, check or in shares of
Common Stock upon the exercise of the Option. If the shares of Common Stock are tendered as payment of the Option exercise price, the value of such shares shall be the Fair Market Value as of the date of exercise. If such tender would result in the
issuance of fractional shares of Common Stock, the Corporation shall instead return the difference in cash or by check to the employee. 
 
13.    Term of Plan. 
 
The Plan shall terminate on August 26, 2007, and no Option shall be granted pursuant to the Plan after that date. 

 
14.    Obligation to Exercise Option. 
 
The granting of an Option shall impose no obligation on the director to exercise such Option. 
 
15.    Continuance as Director. 
 
Nothing in the Plan shall be deemed to create any obligation on the part of the Board to nominate any director for reelection
by the Corporation’s stockholders. 
 
16.    Amendment of the Plan. 
 
The Board may at any time and from time to time alter, amend, suspend or terminate the Plan in whole or in part, provided, however, that (i) any amendment which must be approved by the stockholders of the Company to comply with
applicable law, shall not be effective unless and until such stockholder approval has been obtained in compliance with such law and, (ii) provisions of the Plan which govern the amount, price or timing of the award of an Option shall not be amended
more than once every six months. 
 
17.    Withholding of taxes. 
 
The Company shall have the right, prior to the delivery of any certificate evidencing shares of Common Stock to be issued pursuant to an Option, to require the exercising outside director to remit to the Company an amount in cash
sufficient to satisfy any Federal, state, or local tax withholding requirements.<PAGE>

                                                               EXHIBIT 4.1. (ii)

                               AMENDMENT NO. 1 TO
                           REVOLVING CREDIT AGREEMENT

        This AMENDMENT NO. 1 (this "Amendment"), made as of February 5, 2003
among BARNES GROUP INC., a Delaware corporation with a principal place of
business at 123 Main Street, P.O. Box 489, Bristol, Connecticut 06011 (the
"Borrower"), and FLEET NATIONAL BANK, a national banking association with an
office at 100 Federal Street, Boston, MA 02110, as agent for the lenders which
are or may become party to the Credit Agreement referred to below (collectively,
the "Lenders") (Fleet National Bank, in its capacity as agent for the Lenders,
being hereinafter referred to as the "Administrative Agent"), amends that
certain Revolving Credit Agreement dated the 14th day of June, 2002 (as amended
and in effect from time to time, the "Credit Agreement"), executed by the
Borrower, the Lenders, the Administrative Agent, and HSBC Bank USA, KeyBank
National Association, Mellon Bank, N.A., and Webster Bank as Co-Documentation
Agents (the "Documentation Agents"). Terms not otherwise defined herein which
are defined in the Credit Agreement referred to below shall have the respective
meanings herein assigned to such terms in the Credit Agreement referred to
below.

        WHEREAS, the parties hereto wish to amend certain of the provisions of
the Credit Agreement as hereinafter set forth.

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

        1.      Amendments to Credit Agreement.

        (a)     Definitions. Section 1.1 of the Credit Agreement is hereby
amended by (i) the deletion of the definition of "Applicable Margin" set forth
therein and substituting in lieu thereof the following new definition and (ii)
the addition of the following new definition of "Industrial Distribution
Business Acquisition":

                "Applicable Margin. For each period commencing on an Adjustment
Date through the date immediately preceding the next Adjustment Date (each a
"Rate Adjustment Period"), the Applicable Margin shall be the applicable margin
set forth below with respect to the Leverage Ratio, as determined for the four
(4) consecutive fiscal quarters then ending of the Borrower and its Subsidiaries
ending on the last day of the fiscal quarter ended immediately prior to the
applicable Rate Adjustment Period.

<PAGE>

                                       -2-

<TABLE>
<CAPTION>
                                             BASE        LIBOR
                        LEVERAGE             RATE        RATE         LETTER OF
     LEVEL                RATIO              LOANS       LOANS         CREDIT            COMMITMENT FEE
---------------------------------------------------------------------------------------------------------
      <S>        <C>                         <C>         <C>            <C>                 <C>
       I         Less than to 2.25:1         0.125%      1.250%         1.250%              0.250%
---------------------------------------------------------------------------------------------------------
      II         Less than 2.50:1 but
                 greater than or equal
                 to 2.25:1                   0.250%      1.375%         1.375%              0.300%
---------------------------------------------------------------------------------------------------------
      III        Less than 2.75:1 but
                 greater than or equal
                 to 2.50:1                   0.375%      1.500%         1.500%              0.350%
---------------------------------------------------------------------------------------------------------
      IV         Less than 3.00:1 but
                 greater than or equal       0.500%      1.750%         1.750%              0.375%
                 to 2.75:1
---------------------------------------------------------------------------------------------------------
       V         Greater than or equal       0.625%       2.00%          2.00%              0.450%
                 to 3.00:1
---------------------------------------------------------------------------------------------------------
</TABLE>

Notwithstanding the foregoing, the Applicable Margin for the period from the
date of Closing until the date of receipt of the Compliance Certificate for the
period ending June 30, 2002 shall be Level IV above. If the Borrower fails to
maintain a Leverage Ratio of 3.00 or less as evidenced by the Compliance
Certificate delivered for the period ending September 30, 2003, the Applicable
Margin for Level V above for the period commencing on the next Adjustment Date
and thereafter will be increased to 2.25%. If the Borrower fails to deliver any
Compliance Certificate pursuant to Section 8.4(c) hereof, then for the period
commencing on the next Adjustment Date to occur subsequent to such failure
through the date immediately following the date on which such Compliance
Certificate is delivered, the Applicable Margin shall be the highest Applicable
Margin set forth above."

                "Industrial Distribution Business Acquisition. The acquisition
by the Borrower of Kar Products, LLC ("Kar") pursuant to the Membership Interest
and Asset Purchase Agreement dated as of January 15, 2003, by and among the
Borrower, Barnes Group Canada Corp., Kar, A. & H. Bolt & Nut Company Ltd.,
Sunsource Canada Investment Company, GC-Sun Holdings II, L.P., A & H Bolt
Holdings, Inc., GC-Sun, Inc., GC-Sun G.P. II, Inc., GC-Sun G.P., Inc. and GC-Sun
Holdings, L.P., in which the Borrower purchased (i) certain A. & H. Bolt & Nut
Company Ltd. assets for $4.0 million in cash and (ii) the membership interests
in Kar Products, LLC, a limited liability company which will guaranty the
Obligations and become a directly owned subsidiary of the Borrower, for $74.5
million."

        (b)     Section 5.2. Section 5.2 of the Credit Agreement is hereby
amended by the addition of the following new subsection:

                "5.2.1. Leverage Ratio Fee. In the event that the Leverage Ratio
is not less than 3.10:1 for the four consecutive fiscal quarters ending
September 30, 2003, the Borrower shall pay to the Administrative Agent, for the
pro rata benefit of the

<PAGE>

                                       -3-

Lenders, a Leverage Ratio fee (the "Leverage Ratio Fee") on November 29, 2003 in
an amount equal to 10 basis points multiplied by each Lender's Commitment."

        (c)     Section 8.14. Section 8 of the Credit Agreement is hereby
amended by the addition of the following new section:

                "8.14. Amendment of Kar Products, LLC Limited Liability Company
Agreement. Within thirty (30) days of the effective date of Amendment No. 1 to
the Credit Agreement, the Borrower will amend Section 6.1 of the Second Amended
and Restated Limited Liability Company Agreement of Kar Products, LLC in form
and substance satisfactory to the Administrative Agent."

        (d)     Section 9.3. Section 9.3 of the Credit Agreement is hereby
amended by deleting the last paragraph set forth therein and substituting in
lieu thereof the following new paragraph:

                "The Investments permitted under clauses (g), (h) and (i)(A) of
this Section 9.3 shall be limited as follows: the aggregate dollar amount of
such Investments in the form of acquisitions (excluding consideration paid (i)
by the issuance of equity of the Borrower, and (ii) in connection with the
Industrial Distribution Business Acquisition, so long as the target of the
contemplated transaction shall deliver a guaranty of the Obligations in the form
of Exhibit E hereof), capital contributions, loans or advances, or their
equivalent, net of stock redemptions, capital distributions, proceeds from the
sale of new equity of the Borrower (which shall be limited to up to 50% of the
net proceeds of any such issuance), loan repayments or advances by such
Subsidiaries to the Borrower, shall not at any time exceed 10% of Consolidated
Total Assets."

        (e)     Section 10.2. Section 10.2 of the Credit Agreement is hereby
restated in its entirety as follows:

                "10.2. Leverage Ratio. As of the end of any fiscal quarter, the
        Borrower will not permit the ratio of Consolidated Total Debt
        (excluding, for purposes of calculation of the Leverage Ratio, reverse
        interest rate swap contracts) as at such date to Consolidated EBITDA for
        the four (4) consecutive fiscal quarters then ending (the "Leverage
        Ratio") to be more than the applicable ratio set forth in the table
        below:

        For the Four Quarters Ending                  Ratio
        ----------------------------                  -----
          6/30/2002 and 9/30/2002                     3.50:1
                12/31/2002                            3.00:1
           3/31/2003 - 9/30/2003                      3.25:1
           12/31/2003 - 3/31/04                       3.00:1
           6/30/04 - Thereafter                       2.75:1"

<PAGE>

                                       -4-

        2.      Ratification. Except as expressly provided for herein, the
Credit Agreement and all documents, instruments and agreements related thereto
are hereby ratified and confirmed in all respects and shall continue in full
force and effect. The Credit Agreement and this Amendment shall be read and
construed as one instrument.

        3.      Representations and Warranties. The Borrower hereby represents
and warrants that all representations and warranties as set forth in the Credit
Agreement are true and correct in all material respects on and as of the date
hereof, except for Section 7.4.2 which continues to be true as of the Balance
Sheet Date. All such representations and warranties are hereby ratified,
affirmed and incorporated herein by reference with the same force and effect as
though set forth herein in their entirety.

        4.      Effectiveness. This Amendment shall become effective as of the
date hereof upon the satisfaction of the following conditions precedent:

        (a)     The Borrower and the Lenders shall have executed and delivered
this Amendment.

        (b)     All proceedings in connection with the Industrial Distribution
Business Acquisition and all documents incident thereto, including without
limitation the guaranties of the Obligations by Kar, shall be reasonably
satisfactory in substance and form to the Administrative Agent and its counsel,
and the Administrative Agent shall have received all information and such
counterpart originals or certified or other copies of such documents as the
Administrative Agent may reasonably request.

        (c)     The Administrative Agent shall have received from the Borrower
an amendment fee in an amount equal to 50 basis points multiplied by the
individual Commitment of each Lender who has approved this Amendment as of
February 5, 2003, for the benefit of such approving Lenders.

        (d)     Kar shall have executed and delivered to the Administrative
Agent a Guaranty of the Obligations in the form of Exhibit E to the Credit
Agreement.

        5.      No Waiver. Nothing contained herein shall constitute a waiver
of, impair or otherwise adversely affect any Obligations, any other obligation
of the Borrower or any rights of the Lenders consequent thereon.

        6.      Counterparts. This Amendment may be executed in any number of
counterparts, but all such counterparts shall together constitute but one
instrument. In making proof of this Amendment it shall not be necessary to
produce or account for more than one counterpart signed by each party hereto by
and against which enforcement hereof is sought.

<PAGE>

        IN WITNESS WHEREOF, the undersigned have executed this agreement as of
the day and year first above written.

                                         BARNES GROUP INC.

                                         By:    /s/ William C. Denninger
                                         Name:  William C. Denninger
                                         Title: Senior Vice President, Finance
                                                and Chief Financial Officer

                                         By:    /s/ Lawrence W. O'Brien
                                         Name:  Lawrence W. O'Brien
                                         Title: Vice President, Treasurer

<PAGE>

                                         FLEET NATIONAL BANK, individually and
                                         as Administrative Agent

                                         By:    /s/ Deanne M. Horn
                                         Name:  Deanne M. Horn
                                         Title: Director

<PAGE>

                                         HSBC BANK USA, individually and as
                                         Co-Documentation Agent

                                         By:    /s/ John V. Raleigh
                                         Name:  John V. Raleigh
                                         Title: Vice President

<PAGE>

                                         KEYBANK NATIONAL ASSOCIATION,
                                         individually and as Co-Documentation
                                         Agent

                                         By:    /s/ Lawrence A. Mack
                                         Name:  Lawrence A. Mack
                                         Title: Senior Vice President

<PAGE>

                                         MELLON BANK, N.A., individually and
                                         as Co-Documentation Agent

                                         By:    /s/ Nancy E. Gale
                                         Name:  Nancy E. Gale
                                         Title: Vice President

<PAGE>

                                         WEBSTER BANK, individually and as
                                         Co-Documentation Agent

                                         By:    /s/ Richard A. O'Brien
                                         Name:  Richard A. O'Brien
                                         Title: Senior Vice President

<PAGE>

                                         SUNTRUST BANK

                                         By:    /s/ Heidi M. Khambatta
                                         Name:  Heidi M. Khambatta
                                         Title: Vice President

<PAGE>

                                         THE BANK OF NEW YORK

                                         By:    /s/ Kenneth P. Sneider
                                         Name:  Kenneth P. Sneider
                                         Title: Vice President

<PAGE>

                                         BANK OF AMERICA, N.A.

                                         By:    /s/ Steve A. Aronowitz
                                         Name:  Steve A. Aronowitz
                                         Title: Managing Director

<PAGE>

                                         COMERICA BANK

                                         By:    /s/ Stacey Judd
                                         Name:  Stacey Judd
                                         Title: Account Officer

<PAGE>

                                         BANK ONE, NA (Main Office Chicago)

                                         By:    /s/ Jules Panno
                                         Name:  Jules Panno
                                         Title: Director

<PAGE>

                                         THE GOVERNOR & COMPANY OF
                                         THE BANK OF IRELAND

                                         By:    /s/ Geraldine Hannon
                                         Name:  Geraldine Hannon
                                         Title: Associate Director

                                         By:    /s/ Tom Hayes
                                         Name:  Tom Hayes
                                         Title: Head of Acquisition Finance

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00048-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00048-of-00352.parquet"}]]