Document:

Exhibit 10.1

 

EXECUTION
COPY

 

AMENDMENT
NO. 4

TO

TRANSACTION
AGREEMENT

 

THIS
AMENDMENT NO. 4 TO TRANSACTION AGREEMENT (this “Amendment 4”), dated as
of April 5, 2006, between BOSTON SCIENTIFIC CORPORATION, a Delaware corporation
(“Boston Scientific”), and ABBOTT LABORATORIES, an Illinois corporation
(“Abbott”).

 

WHEREAS, Boston
Scientific and Abbott are parties to that certain Transaction Agreement dated
as of January 8, 2006 and amended by Amendment Nos. 1 and 2 thereto dated as of
January 16, 2006, and by Amendment No. 3 thereto dated as of February 22, 2006,
pursuant to which Abbott agreed to acquire certain assets and businesses and
assume certain liabilities of Guidant contingent upon Boston Scientific’s
acquisition of Guidant (the “Agreement”); and

 

WHEREAS, Boston
Scientific and Abbott desire to further amend the Agreement as provided in this
Amendment 4 in accordance with Section 12.07 of the Agreement.

 

NOW, THEREFORE, in consideration of the foregoing and the promises and
mutual agreements contained in this Amendment 4, and for other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, and intending to be legally bound, the parties hereto agree as
follows:

 

SECTION 1. Amendments to the Agreement. (a)  The definition of “Definitive Agreements” in
Section 1.01 of the Agreement is hereby amended and restated to read as
follows:

 

““Definitive Agreements” means the
Purchase Agreement, the Transition Services Agreement, the Note, the
Subscription and Stockholder Agreement, the release and/or settlement agreement
in respect of Actions between Boston Scientific and/or its Affiliates and
Guidant and/or its Affiliates relating to the Business to the extent
contemplated herein and such other agreements as may be mutually agreed between
the parties.”

 

(b)           The
reference in Section 2.01(b)(ii) of the Agreement to Section 5.08(h) is hereby
amended and restated to be a reference to Section 5.08(i).

 

(c)           Section
5.07(a) of the Agreement is hereby amended and restated to read as follows:

 

“(a)         Following
the Closing, Abbott will supply Boston Scientific, on a private label basis, at
the pricing and on the terms provided in this Section 5.07 and on other terms
and conditions customary for similar supply arrangements, with DES Stents in
the following territories: United States, Japan, the European Economic Area and
Rest of

 

 

World (each, a “Territory”). ”

 

(d)           Section
5.07(c) of the Agreement is hereby amended and restated to read as follows:

 

“(c)         (i)  Abbott’s obligation to supply DES Stents to Boston
Scientific in the United States and Japan shall terminate on the later of (A)
December 31, 2010, or (B) the date that is one year following the last date on
which Boston Scientific has received all requisite approvals from applicable Governmental
Authorities to sell an everolimus eluting stent on a Boston Scientific stent
platform in the applicable Territory; provided, however, that
such obligation shall terminate on a date that is not later than June 30, 2012.

 

(ii)           Abbott’s
obligation to supply DES Stents to Boston Scientific in the European Economic
Area shall terminate on the earliest of:

 

(A) 90 days after issuance of the European
Commision design examination certificate (pursuant to which the CE mark may be
affixed) with respect to an Everolimus (as defined below) eluting stent on a
Boston Scientific platform;

 

(B) three years following the date on which
Boston Scientific receives from Abbott its first commercial shipment of DES
Stents for marketing and sale by Boston Scientific in the European Economic
Area, unless prior to the end of such three years either (1) the European
Commission has determined that Boston Scientific has submitted a design
dossier, pursuant to Council Directive 93/42/EC of June 14, 1993, Annex II,
point 4.1, in relation to an Everolimus eluting stent on a Boston Scientific
platform that is deemed satisfactory by a body designated in accordance with
the requirements of Council Directive 93/42/EC of June 14, 1993, Annex XI with
responsibility for carrying out conformity assessments of medical devices in
accordance with that Directive in support of CE marking, and Boston Scientific
has not yet received the European Commission design examination certificate, or
(2) the European Commission shall have approved an extension of such three-year
term on the ground that such extension is compatible with European Commission
competition rules; and

 

(C) June 30, 2012.

 

(iii)          Abbott’s
obligation to supply DES Stents to Boston Scientific in the Rest of World shall
terminate on December 31, 2010.

 

(iv)          For
purposes of this Agreement, “Everolimus” means the agent having the
chemical name 40-O-(2-hydroxyethyl)-rapamycin, an example of which is set forth
in the attached Schedule. For avoidance of doubt, Everolimus does not mean (A) any unknown prodrugs or
metabolites of Everolimus as of the date that Abbott grants a license,
sublicense, covenant not to sue or other rights with respect to the DES
Intellectual Property, (B) any derivatives or analogues of Everolimus, (C) any

 

2

 

intermediates in the manufacturing process of
Everolimus, (D) the agents known as Zotarolimus, Biolimus, Sirolimus,
Tacrolimus and Pimecrolimus, or (E) any of (A), (B), (C) or (D) that contain
residual or impurity levels of Everolimus. For purposes of this Section
5.08(c)(iv), “unknown” means that for the period of time up to
and including the earlier of the last to expire, be held invalid or otherwise
become unenforceable U.S. patent that is the subject of the Novartis Agreement
or December 31, 2013, the agent is not
generally known within the industry at the time of Abbott granting rights in
the DES Intellectual Property to a third party through (1) written peer
publications, (2) written industry presentations, (3) written prior public
admissions of Abbott, or (4) prior public (other than to Abbott) admissions of
the third party recipient of the rights to the DES Intellectual Property as a
prodrug or metabolite of Everolimus.”

 

(e)           Section
5.08(a) of the Agreement is hereby deleted and replaced with the following:

 

“(a)         (i) 
Abbott, on behalf of itself and its Affiliates, grants to Boston
Scientific, effective as of the Closing, to the fullest extent permitted by Law
and subject to the agreements included in the Assets, a perpetual (except as
set forth in Section 5.10(a) of this Agreement), worldwide, royalty-free (other
than as set forth in Section 5.08(a)(iii) of this Agreement) right and license,
without the right to grant sublicenses (except the right to “have made” solely
on behalf of Boston Scientific and its Affiliates) and without the right
to grant covenants not to sue, to use the DES Intellectual Property
(except for trademarks and related rights, other than as set forth in Section
5.07 of this Agreement or as otherwise agreed by the parties). The foregoing
license is non-exclusive, which means that Abbott and its Affiliates, as of the
Closing, have the right to grant licenses, sublicenses or covenants not to sue
or other rights with respect to the DES Intellectual Property, except that the
license granted to Boston Scientific to DES Intellectual Property is
co-exclusive as to Everolimus eluting stent systems, which means that any
rights to DES Intellectual Property granted by Abbott to a third party shall not
extend to such third party’s drug eluting stent system if the drug used in such
drug eluting stent system is Everolimus.  Notwithstanding the preceding
sentence, Abbott and its Affiliates, as of the Closing, have the right to grant
licenses, sublicenses or covenants not to sue or other rights with respect to
the DES Intellectual Property in the countries of the European Economic Area
within the field of use for medical devices designed for the minimally invasive
treatment of peripheral vascular (or endovascular) diseases.

 

(ii)           The
license granted pursuant to this Section 5.08(a) is assignable by Boston
Scientific to Guidant or any controlled Affiliate of Guidant or Boston
Scientific, and is not otherwise assignable by Guidant, Boston Scientific or
any Affiliate of Guidant or Boston Scientific except in connection with a
merger, change of control, or sale of all or substantially all of Guidant’s and
its Affiliates’ vascular intervention business.

 

(iii)          Boston
Scientific shall be responsible for all royalties payable by it and its Affiliates
with respect to products sold by Boston Scientific and its Affiliates 

 

3

 

using the DES Intellectual Property licensed
to Boston Scientific and its Affiliates pursuant to this Section 5.08.

 

(iv)          Subject to the other
provisions of this Section 5.08, the parties hereby acknowledge that the spirit
of this Section 5.08 is that Boston Scientific and its Affiliates will have
access to the DES Intellectual Property as if they were co-owners thereof,
including with respect to Boston Scientific’s ability to supplement Abbott’s
PMA for DES Stents.”

 

(f)            Section
5.08(d) of the Agreement is hereby amended to add the following to the end of
such section:

 

“Abbott
has the sole right, but not the obligation, in its sole discretion to commence
and prosecute any Action against a third party involving the Intellectual
Property included in the Assets (including the DES Intellectual Property) and,
also in its sole discretion, to settle or otherwise resolve such Action by
seeking and/or obtaining injunctive relief and past damages, and/or granting
licenses, sublicenses or covenants not to sue under any terms, including, but
not limited to, in exchange for future royalties, licenses or sublicenses,
payments, covenants not to sue or any other consideration; provided that, with
respect to the DES Intellectual Property, Abbott may not grant a license,
sublicense or covenant not to sue to a third party that could not otherwise be
granted pursuant to the second sentence of Section 5.08(a)(i) of this
Agreement.”

 

(g)           Section
5.08(i) of the Agreement is hereby amended and restated as follows:

 

“(i)          Boston Scientific, on behalf of itself
and its Affiliates, grants to Abbott and its Affiliates, effective as of the
Closing, a perpetual, non-exclusive, royalty-free, worldwide right and license
in and to all Intellectual Property (except for trademarks and related rights
unless otherwise agreed by the parties) owned or, to the extent permitted by
the applicable agreement, licensed to (with the right to sublicense) or
otherwise controlled by, Guidant or any of its Affiliates immediately prior to
the consummation of the Merger that is used in the Business but is not included
in the Assets. The license granted pursuant to this Section 5.08(i) is not
assignable by Abbott or any of its Affiliates except in connection with a
merger, change of control, or sale of all or substantially all of Abbott’s
vascular intervention business and is sublicensable by Abbott and its Affiliates
to all suppliers, licensees, distributors and customers of Abbott and its
Affiliates that are not Restricted Persons; provided, however,
that Abbott and its Affiliates have the exclusive (subject to the second
proviso of this sentence) right to sublicense the Intellectual Property
licensed under this Section 5.08(i) to any Person for any and all purposes in
the vascular intervention or endovascular solutions fields; and provided,
further, that neither Boston Scientific nor any of its Affiliates has
the right to license or sublicense (except the right to “have made” solely
on behalf of Boston Scientific and its Affiliates) the Intellectual
Property licensed under this Section 5.08(i) to any Person (other than Abbott
and its Affiliates) for any purpose in the vascular intervention or
endovascular solutions fields.

 

4

 

(h)           The following new Section 5.16 is
hereby added to the Agreement:

 

“SECTION 5.16. Abbott
and Boston Scientific hereby agree and acknowledge that, (a) notwithstanding
the second sentence of Section 5.07(a) of the Agreement, the second sentence of
Section 5.08(a) of the Agreement or any other provision in the Agreement or any
other Definitive Agreement to the contrary, on the Closing Abbott and Boston
Scientific shall not be entering into the Supply Agreements or the License and
Technology Transfer Agreement and consequently all references in this Agreement
to the Supply Agreements or the License and Technology and Transfer Agreement
are hereby deleted, and such references are deemed replaced with references to
Section 5.07 or 5.08, as applicable, and (b) following the Closing, the parties
may, but subject to Section 5.13 shall not have any obligation to, enter into
agreements covering certain matters related to the supply of DES Stents by
Abbott to Boston Scientific and/or the licenses granted herein.”

 

(i)            Section 12.11 of the Agreement is
hereby amended to add the following as the first two sentences of such section:

 

“As between the
parties, the terms of this Agreement and the Definitive Agreements shall govern
without regard to the provisions of the Federal Trade Commission’s Decision and
Order In the Matter of Boston Scientific Corporation and Guidant Corporation. Each
party agrees not to use the provisions of the Decision and Order In the Matter
of Boston Scientific Corporation and Guidant Corporation to construe or
interpret the provisions of this Agreement or any Definitive Agreement.”

 

SECTION 2. Public Announcement. The provisions contained in
Section 12.03 of the Agreement are incorporated by reference in this Amendment
4 as though they were expressly set forth herein.

 

SECTION 3. Representations and Warranties. (a) Boston Scientific
represents and warrants to Abbott as follows: 
Boston Scientific is a corporation duly incorporated, validly existing
and in good standing under the Laws of the State of Delaware and has all
necessary corporate power and authority to enter into, execute and deliver this
Amendment 4, to carry out its obligations hereunder and to consummate the
transactions contemplated hereby. The execution and delivery of this Amendment
4 by Boston Scientific, the performance by Boston Scientific of its obligations
hereunder and the consummation by Boston Scientific of the transactions
contemplated hereby have been duly authorized by all requisite corporate action
on the part of Boston Scientific. This Amendment 4 has been duly executed and
delivered by Boston Scientific, and, assuming due authorization, execution and
delivery by Abbott, this Amendment 4 is a legal, valid and binding obligation
of Boston Scientific, enforceable against it in accordance with its terms.

 

(b)           Abbott represents and warrants to
Boston Scientific as follows:  Abbott is a
corporation duly incorporated, validly existing and in good standing under the
laws of the State of Illinois and has all necessary corporate power and
authority to enter into, execute and deliver this Amendment 4, to carry out its
obligations hereunder and to consummate the transactions contemplated hereby. The
execution and delivery of this Amendment 4 by Abbott, the

 

5

 

performance by Abbott
of its obligations hereunder and the consummation by Abbott of the transactions contemplated hereby have
been duly authorized by all requisite corporate action on the part of Abbott. This
Amendment 4 has been duly executed and delivered by Abbott, and, assuming due authorization, execution
and delivery by Boston Scientific, this Amendment 4 is a legal, valid and
binding obligation of Abbott
enforceable against it in accordance with its terms.

 

SECTION 4. Ratification of Agreement. Except as expressly
provided in this Amendment 4, all of the terms, covenants, and other provisions
of the Agreement are hereby ratified and confirmed and shall continue to be in
full force and effect in accordance with their respective terms. From and after
the date hereof, all references to the Agreement shall refer to the Agreement
as amended by this Amendment 4. Capitalized terms used but not defined in this
Amendment 4 shall have the meanings assigned to them in the Agreement.

 

SECTION 5. Governing Law. This Amendment 4 shall be governed by,
and construed in accordance with, the laws of the State of New York. All
Actions arising out of or relating to this Amendment 4 shall be heard and
determined exclusively in any New York federal court sitting in the Borough of
Manhattan of The City of New York.

 

SECTION 6. Counterparts. This Amendment 4 may be executed and
delivered (including by facsimile transmission) in one or more counterparts,
and by the different parties hereto in separate counterparts, each of which
when executed shall be deemed to be an original, but all of which taken
together shall constitute one and the same agreement.

 

6

 

IN WITNESS WHEREOF,
Boston Scientific and Abbott have caused this Amendment 4 to be executed as of
the date first written above by their respective officers thereunto duly
authorized.

 

 

	
   

  	
  BOSTON
  SCIENTIFIC CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Lawrence J. Knopf

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Lawrence
  J. Knopf

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President and Assistant

  General Counsel

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ABBOTT
  LABORATORIES

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Richard A. Gonzalez

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Richard
  A. Gonzalez

  	
   

  
	
   

  	
   

  	
  Title:

  	
  President
  and Chief Operating

  Officer

  	
   

  
							

 

 

EVEROLIMUS SCHEDULEExhibit 4.1

 

LINCOLN NATIONAL
CORPORATION

 

Floating Rate Senior
Note due 2009

 

	
  [Registered]

  	
   

  	
  CUSIP
  534187AQ2

  
	
   

  	
   

  	
  ISIN
  US534187AQ29

  
	
  No. FLR-1

  	
   

  	
  U.S.
  $500,000,000

  

 

 

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING
OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A
DEPOSITORY OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN
WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS
SECURITY IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY
PERSON OTHER THAN SUCH DEPOSITORY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

 

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”),
TO THE COMPANY (AS DEFINED BELOW) OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE, OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE &
CO. OR IN SUCH NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND
ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

 

Lincoln National
Corporation, a corporation organized and existing under the laws of the State
of Indiana (hereinafter called the “Company”, which term includes any successor
corporation under the Indenture hereinafter referred to), for value received,
hereby promises to pay to Cede & Co., or registered assigns, the
principal sum of FIVE HUNDRED MILLION DOLLARS ($500,000,000) on April 6,
2009 and to pay interest thereon from April 6, 2006 or from the most
recent interest payment date to which

 

 

interest has been paid or duly provided for, quarterly
on January 6, April 6, July 6 and October 6, in each year,
commencing on July 6, 2006 (each, an “Interest Payment Date”), at the rate
of interest per annum for each Interest Period (as defined below) equal to the
three-month LIBOR (as determined pursuant to the provisions set forth on the
reverse of this Security) plus 0.11%, until the principal hereof is paid or
made available for payment.  The period
beginning on April 6, 2006 and ending on but excluding the first Interest
Payment Date and each successive period beginning on and including an Interest
Payment Date and ending on but excluding the next succeeding Interest Payment
Date is herein called an “Interest Period”. If any Interest Payment Date falls
on a day which is not a London Business Day (as defined below) such Interest
Payment Date shall be postponed to the next succeeding London Business Day,
except that if such next succeeding London Business Day is in the next calendar
month, such Interest Payment Date shall be the next preceding London Business
Day.  If April 6, 2009 shall not be
a London Business Day, payment of the principal and interest due on that date
need not be made on that day but may be made on the next day that is a London Business
Day with the same force and effect as if made on April 6, 2009, provided
that no interest shall accrue for the period from and after April 6, 2009.  A “London Business Day” means any day on
which dealings in deposits in U.S. dollars are transacted in the London
interbank market.  The interest so
payable and punctually paid or duly provided for on any interest payment date
will, as provided in the Indenture, be paid to the person in whose name this
Note is registered at the close of business on the Business Day preceding the Interest
Payment Date (each respectively a “Record Date”), subject to certain exceptions
as provided in the Indenture. Payment of the principal of, and interest on,
this Note will be made at the designated office or agency of the Company
maintained for such purpose in The City of New York, New York in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debt or, at the option of the Company,
interest so payable may be paid by check to the order of said Holder mailed to
his address appearing on the Security Register. Any interest not so punctually
paid or duly provided for shall be payable as provided in the Note. Interest on
this Note will be computed on the basis of a the actual number of days in an
Interest Period and a 360-day year.

 

Reference is
hereby made to the further provisions of this Note set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as
if set forth at this place.

 

Unless the
certificate of authentication hereon has been executed by the Trustee by manual
signature, this Note shall not be entitled to any benefit under the Indenture
or be valid or obligatory for any purpose.

 

2

 

IN WITNESS
WHEREOF, Lincoln National Corporation has caused this instrument to be duly
executed under its corporate seal.

 

	
   

  	
  LINCOLN
  NATIONAL CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

Dated:   April 6, 2006

 

 

Dated:  April 6, 2006

 

Trustee’s
Certificate of Authentication

 

This is one of
the Securities of the series designated herein and referred to in the
within-mentioned Indenture.

 

	
   

  	
  THE
  BANK OF NEW YORK, as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized
  Signatory

  

 

 

[Reverse of Note]

 

LINCOLN NATIONAL
CORPORATION

 

Floating Rate Senior
Note due 2009

 

This Note is
one of a duly authorized issue of Securities of the Company of a series
hereinafter specified, all issued and to be issued under an Indenture dated as
of September 15, 1994 (herein called the “Indenture”), between the Company
and The Bank of New York, as Trustee (herein called the “Trustee”, which term
includes any successor Trustee under the Indenture), to which Indenture and all
indentures supplemental thereto reference is hereby made for a statement of the
respective rights, limitations of rights, duties and immunities thereunder of
the Company, the Trustee and the Holder of the Securities and the terms upon
which the Securities are, and are to be, authenticated and delivered. The
Securities may be issued in one or more series, the terms of which different
series may vary as provided in the Indenture. This Note is one of a series of
the Securities of the Company designated as its Floating Rate Notes due 2009
(herein called the “Notes”), limited in aggregate principal amount to
$500,000,000, except as otherwise provided in the Indenture. The Notes of this
series are issuable in registered form only in denominations of $2,000 and
integral multiples of $1,000.

 

Three-month
LIBOR (“LIBOR”) will be determined by The Bank of New York or a successor
financial institution appointed by the Company for such purpose, as calculation
agent (the “Calculation Agent”), in accordance with the following provisions:

 

(a)           For
each Interest Period, on the applicable Interest Determination Date (as defined
below), the Calculation Agent will determine LIBOR for such Interest
Period.  LIBOR will be the offered rate
(expressed as an interest rate per annum) for three-month U.S. dollar deposits in
amounts of at least $1,000,000 which appears on Telerate Page 3750, as of approximately
11:00 A.M., London time, on such Interest Determination Date.  “Telerate Page 3750” means the display
designated as Page “3750” on the Moneyline Telerate Inc. (or such other page as
may replace page 3750 on that service or such other service).

 

(b)           If,
on any Interest Determination Date, LIBOR cannot be determined pursuant to  (a) above, the Calculation Agent will
obtain such rate from Bloomberg L.P.’s page (“BBAM”).

 

(c)           If
no offered rate appears on Telerate Page 3750 or BBAM on any Interest
Determination Date at approximately 11:00 A.M., London time, then the
Calculation Agent (after consultation with the Company) will select four major
banks in the London interbank market and shall request each of their principal
London offices to provide a quotation of the rate at which three-month deposits
in U.S. dollars in amounts of at least $1,000,000 are offered by it to prime
banks in the London interbank market, on that date

 

5

 

and at that time, that is
representative of single transactions at that time.  If at least two quotations are provided,
LIBOR will be the arithmetic average of the quotations provided. Otherwise, the
Calculation Agent will select three major banks in New York City and shall
request each of them to provide a quotation of the rate offered by them at
approximately 11:00 A.M., New York City time, on such Interest Determination
Date for loans in U.S. dollars to leading European banks having an index
maturity of three months for the applicable Interest Period in an amount of at
least $1,000,000 that is representative of single transactions at that time. If
three quotations are not provided, LIBOR will be set equal to the rate of LIBOR
for the then current Interest Period.

 

Accrued interest on the Notes will be
calculated by multiplying the principal amount of the Notes by an accrued
interest factor. The accrued interest factor will be computed by adding the
interest factors calculated for each day in an Interest Period. The interest
factor for each day is computed by dividing the interest rate applicable to
that day by 360. The interest rate in effect on any Floating Interest Reset
Date will be the applicable rate as reset on that date.  The interest rate applicable to any other day
is the interest rate from the immediately preceding Floating Interest Reset
Date, or if none, the initial floating interest rate.  The “Floating Interest Reset Dates” are January 6,
April 6, July 6 and October 6 of each year, commencing July 6,
2006.  If any Floating Interest Reset Date falls on a day that is not a
London Business Day, such Floating Interest Reset Date will be postponed to the
next succeeding London Business Day, except that if such London Business Day is
in the next succeeding calendar month, the Floating Interest Reset Date will be
the immediately preceding London Business Day. 
All percentages used in or resulting from any calculation of the rate of
interest on a Note will be rounded, if necessary, to the nearest one hundred-thousandth
of a percentage point (with .000005% rounded up to .00001%), and all U.S.
dollar amounts used in or resulting from these calculations will be rounded to
the nearest cent (with one-half cent rounded upward).

 

For the purposes of calculating LIBOR, “Interest
Determination Date” for any Interest Period means the second London Business
Day preceding the Interest Payment Date commencing such Interest Period.

 

Upon request
from any Holder of Notes, the Calculation Agent will provide the interest rate
in effect for the Notes for the current Interest Period and, if it has been
determined, the interest rate to be in effect for the next Interest Period.  Dollar amounts resulting from such
calculation will be rounded to the nearest cent, with one-half cent being
rounded upward.

 

Interest on the
Notes will be calculated on the basis of the actual number of days in the
applicable period divided by 360. All calculations made by the Calculation
Agent for the purposes of calculating interest on the Notes shall be conclusive
and binding on the Holders of the Notes, the Trustee and the Company, absent
manifest error.

 

The Notes are
not redeemable prior to maturity.

 

6

 

The Notes are
not entitled to any sinking fund.  If an
Event of Default shall occur with respect to the Notes, the principal of the
Notes may be declared due and payable in the manner and with the effect
provided in the Indenture.

 

The Indenture
contains provisions for defeasance at any time of the Notes, upon which the
Company, at its option, shall be deemed to have been Discharged from its
obligations with respect to the Notes or shall cease to be under any obligation
to comply with certain restrictive covenants of the Indenture.

 

Subject to
certain exceptions, the Indenture or the Notes may be amended or supplemented
with the consent of the Holders of at least a majority in principal amount of
the Outstanding Securities affected by such amendment or supplement voting as
one class. Without the consent of any Holder, the Company and the Trustee may
amend or supplement the Indenture or the Notes to, among other things, cure any
ambiguity, defect or inconsistency. Subject to certain exceptions, any past
default or Event of Default may be waived by the Holders of at least a majority
in principal amount of the Outstanding Securities of any series affected on
behalf of the Holders of the Securities of that series or the Holders of at
least a majority in principal amount of all the Outstanding Securities voting
as one class. Any such consent or waiver by the Holder of this Note shall be
conclusive and binding upon such Holder and upon all future Holders of this Note
and of any Note issued upon the transfer hereof or in exchange herefor or in
lieu hereof whether or not notation of such consent or waiver is made upon this
Note or upon any Note issued upon the transfer hereof or in exchange herefor or
in lieu hereof.

 

No reference
herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Company, which is absolute and
unconditional, to pay the principal of, and interest on, this Note at the
times, place, and rate, and in the coin or currency, herein prescribed.

 

As provided in
the Indenture and subject to certain limitations therein set forth, this Note
is transferable on the Security Register of the Company, upon surrender of this
Note for transfer at the office or agency of the Company in The City of New
York, New York, duly endorsed by, or accompanied by a written instrument of
transfer in form satisfactory to the Company and the Registrar, duly executed
by the Holder hereof or his attorney duly authorized in writing, and thereupon
one or more new Notes, of authorized denominations and for the same aggregate
principal amount, will be issued to the designated transferee or transferees.

 

As provided in
the Indenture and subject to certain limitations therein set forth, this Note
is exchangeable for a like aggregate principal amount of Notes of different
authorized denominations as requested by the Holder surrendering the same.

 

No service
charge will be made for any such transfer or exchange, but the Company may require
payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

 

7

 

The Company,
the Trustee and any agent of the Company or the Trustee may treat the person in
whose name this Note is registered as the owner hereof for the purpose of
receiving payment as herein provided and for all other purposes whether or not
this Note be overdue, and neither the Company, the Trustee nor any such agent
shall be affected by notice to the contrary.

 

No recourse
shall be had for the payment of the principal of, or the interest on, this Note
or for any claim based hereon or otherwise in any manner in respect hereof, or
in respect of the Indenture, against any incorporator, shareholder, officer or
director, as such, past, present or future, of the Company or of any
predecessor or successor corporation, whether by virtue of any constitutional
provision or statute or rule of law, or by the enforcement of any
assessment or penalty or in any other manner, all such liability being
expressly waived and released by the acceptance hereof and as part of the
consideration for the issue hereof.

 

All
capitalized terms used in this Note that are defined in the Indenture shall
have the meanings assigned to them in the Indenture.

 

8

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