Document:

Exhibit 10.4

 

LEASE

 

TABLE OF CONTENTS

 

	
  1.

  	
  PREMISES;
  CONDITION AND EXPANSION OF PREMISES

  	
   

  
	
  2.

  	
  LEASE TERM

  	
   

  
	
  3.

  	
  BASE RENT

  	
   

  
	
  4.

  	
  USE OF PREMISES

  	
   

  
	
  5.

  	
  PRIVILEGES OF HOSPIRA
  EMPLOYEES

  	
   

  
	
  6.

  	
  UTILITIES
  AND OTHER SERVICES FURNISHED BY LANDLORD

  	
   

  
	
  7.

  	
  EXTRA SERVICES

  	
   

  
	
   

  	
  A.

  	
  Landlord’s
  Delivery of Extra Services

  	
   

  
	
   

  	
  B.

  	
  Charges for Extra Services

  	
   

  
	
   

  	
  C.

  	
  Changes to Extra Services

  	
   

  
	
   

  	
  D.

  	
  Transitional
  Nature of Extra Services

  	
   

  
	
   

  	
  E.

  	
  Cooperation

  	
   

  
	
   

  	
  F.

  	
  Use
  of Third Parties to Provide the Extra Services

  	
   

  
	
   

  	
  G.

  	
  Early Termination
  of Extra Services

  	
   

  
	
   

  	
  H.

  	
  Information Transmission

  	
   

  
	
   

  	
  I.

  	
  Mutual
  Cooperation

  	
   

  
	
   

  	
  J.

  	
  Limitation
  on Liability for Failure to Provide Extra Services

  	
   

  
	
   

  	
  K.

  	
  Third
  Party Claims

  	
   

  
	
   

  	
  L.

  	
  Title to Intellectual
  Property

  	
   

  
	
  8.

  	
  ALTERATIONS
  AND REPAIRS

  	
   

  
	
  9.

  	
  MAINTENANCE
  AND REPAIR

  	
   

  
	
  10.

  	
  ASSIGNMENT
  – SUBLEASE

  	
   

  
	
  11.

  	
  INDEMNIFICATION AND
  INSURANCE

  	
   

  
	
  12.

  	
  INSPECTION

  	
   

  
	
  13.

  	
  EMINENT DOMAIN

  	
   

  
	
  14.

  	
  FIRE
  AND OTHER CASUALTY

  	
   

  
	
  15.

  	
  WAIVER
  OF SUBROGATION

  	
   

  
	
  16.

  	
  DEFAULTS
  AND REMEDIES

  	
   

  
	
   

  	
  A.

  	
  Defaults
  by Tenant

  	
   

  
	
   

  	
  B.

  	
  Landlord’s
  Remedies

  	
   

  
	
   

  	
  C.

  	
  Landlord’s
  Default and Tenant’s Remedies

  	
   

  
	
  17.

  	
  NOTICES

  	
   

  
	
  18.

  	
  HOLDING OVER

  	
   

  
	
  19.

  	
  SUCCESSORS
  OR ASSIGNS

  	
   

  
	
  20.

  	
  SUBORDINATION

  	
   

  
	
  21.

  	
  QUIET
  ENJOYMENT

  	
   

  
	
  22.

  	
  PARKING

  	
   

  
	
  23.

  	
  SALE BY
  LANDLORD

  	
   

  
	
  24.

  	
  ESTOPPEL
  CERTIFICATE

  	
   

  
	
  25.

  	
  TRANSFER
  OF PERSONAL PROPERTY, EQUIPMENT AND TRADE FIXTURES

  	
   

  
	
  26.

  	
  HAZARDOUS
  MATERIALS

  	
   

  
	
  27.

  	
  CERTAIN RIGHTS
  RESERVED TO LANDLORD

  	
   

  

 

i

 

	
  28.

  	
  CONFIDENTIALITY

  	
   

  
	
  29.

  	
  DISBARMENT
  AND EXCLUSION

  	
   

  
	
  30.

  	
  MISCELLANEOUS

  	
   

  
	
   

  	
  A.

  	
  Time of
  the Essence

  	
   

  
	
   

  	
  B.

  	
  Governing
  Law/Compliance with Laws

  	
   

  
	
   

  	
  C.

  	
  Lease
  Modification

  	
   

  
	
   

  	
  D.

  	
  Alternative Dispute
  Resolution

  	
   

  
	
   

  	
  E.

  	
  Independent
  Contractors

  	
   

  
	
   

  	
  F.

  	
  Force Majeure

  	
   

  
	
   

  	
  G.

  	
  Limitation
  of Liability

  	
   

  
	
   

  	
  H.

  	
  Exclusion from
  Liability Limitation

  	
   

  
	
  31.

  	
  NO
  REAL ESTATE BROKERS

  	
   

  
	
  Exhibits

  	
   

  	
   

  
	
  A

  	
  Diagram of Premises

  	
   

  
	
  A-1

  	
  Schedule of Rents

  	
   

  
	
  B-1

  	
  Included Services

  	
   

  
	
  B-2

  	
  Additional Services

  	
   

  
	
  B-3

  	
  Extra Services

  	
   

  
	
  B-4

  	
  Charges For Services

  	
   

  
	
  C

  	
  Rules and Regulations

  	
   

  
	
  D

  	
  Dispute Resolution

  	
   

  
	
  E

  	
  Hazardous Materials
  Disclosure Certificate

  	
   

  

 

ii

 

LEASE

 

THIS LEASE (this “Lease”)
made this     day of
          , 2004 (the “Effective
Date”), between Abbott Laboratories, an Illinois corporation (hereinafter
referred to as “Landlord”), and Hospira, Inc. a Delaware corporation
(hereinafter referred to as “Tenant”). 
Landlord and Tenant are sometimes collectively referred to herein as the
“Parties” or individually as a “Party”.

 

W I T N E S S E T H:

 

The following
schedule (the “Schedule”) is an integral part of this Lease:

 

SCHEDULE

 

	
  1.

  	
  Tenant:  Hospira, Inc.

  
	
   

  	
   

  
	
  2.

  	
  Premises:  239,136 square feet of manufacturing and
  laboratory facilities located in North    Chicago, Illinois and known as the M3 Building.

  
	
   

  	
   

  
	
  3.

  	
  Effective Date:  May 1, 2004

  
	
   

  	
   

  
	
  4.

  	
  Termination Date:  April 30, 2014.  Subject to early termination right set
  forth in Paragraph 2.

  
	
   

  	
   

  
	
  5.

  	
  Tenant’s Address for
  Notices:

  	
  Hospira, Inc.

  	
   

  	
   

  
	
   

  	
   

  	
  Attn:  Vice President Administration,

  	
   

  	
   

  
	
   

  	
   

  	
  Purchasing and Real
  Estate

  	
   

  	
   

  
	
   

  	
   

  	
  Dept. NRLE; Bldg. 1

  	
   

  	
   

  
	
   

  	
   

  	
  275 North Field Drive

  	
   

  	
   

  
	
   

  	
   

  	
  Lake Forest,
  Illinois  60045-5045

  	
   

  	
   

  
	
   

  	
   

  	
  Phone:  (224) 212-2361

  	
   

  	
   

  
	
   

  	
   

  	
  Fax:  (224) 212-3296

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  with a copy to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Hospira, Inc.

  	
   

  	
   

  
	
   

  	
   

  	
  Legal Department

  	
   

  	
   

  
	
   

  	
   

  	
  Attn:  General Counsel

  	
   

  	
   

  
	
   

  	
   

  	
  Dept. NLEG; Bldg. 1

  	
   

  	
   

  
	
   

  	
   

  	
  275 North Field Drive

  	
   

  	
   

  
	
   

  	
   

  	
  Lake Forest, Illinois 60045-5045

  	
   

  	
   

  
	
   

  	
   

  	
  Phone:  (224) 212-2848

  	
   

  	
   

  
	
   

  	
   

  	
  Fax:  (224) 212-3312

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
  Landlord’s Address for
  Notices:

  	
  Abbott Laboratories

  	
   

  	
   

  
	
   

  	
   

  	
  Corporate Engineering
  Division

  	
   

  	
   

  
	
   

  	
   

  	
  Attention:  Vice President, Corporate Real Estate

  
	
   

  	
   

  	
  Department 052T; Bldg.
  AP52-S

  	
   

  	
   

  

 

 

	
   

  	
   

  	
  200 Abbott Park Road

  	
   

  	
   

  
	
   

  	
   

  	
  Abbott Park, Illinois
  60064-6212

  	
   

  	
   

  
	
   

  	
   

  	
  Phone:  (847) 938-1301

  	
   

  	
   

  
	
   

  	
   

  	
  Fax:  (847) 937-1533

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  with a copy to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Abbott Laboratories

  	
   

  	
   

  
	
   

  	
   

  	
  Attention:

  	
  Executive Vice
  President and General

  Counsel

  
	
   

  	
   

  	
  Dept. 364; Bldg. AP6D

  	
   

  	
   

  
	
   

  	
   

  	
  100 Abbott Park Road

  	
   

  	
   

  
	
   

  	
   

  	
  Abbott Park, Illinois  60064

  	
   

  	
   

  
	
   

  	
   

  	
  Phone:  (847) 937-6100

  	
   

  	
   

  
	
   

  	
   

  	
  Fax:  (847) 938-6277

  	
   

  	
   

  
						

 

That the Parties
hereto do hereby mutually agree as follows:

 

1.             Premises; Condition and Expansion of Premises.  

 

A.            Tenant hereby leases from Landlord those certain
premises (hereinafter referred to as the “Premises”) depicted by
cross-hatching on the diagram attached hereto as Exhibit A.  As used in this Lease, the “Building” shall
mean that certain building located at 1401 Sheridan Road, North Chicago,
Illinois  60064, commonly known as the
M3 Building, and including the use in common with the Landlord of the Building,
the common areas and parking areas serving the Building.  Landlord shall install firewalls to separate
the private networks of the Landlord and Tenant.  These separation firewalls shall be deployed at both the
Landlord’s and Tenant’s networks on either end of the Inter-Company Link and
Gigabit connection.  Other than
Landlord’s installation of the firewalls, Tenant acknowledges that it is
leasing the Premises “as is” without any representation or warranty.

 

B.            Tenant shall have the right to reduce the
size of the Premises at any time during the Term upon not less than ninety (90)  days written notice to Landlord, at which
time Base Rent (as described in Paragraph 3 below) shall be
proportionately reduced.  Each reduction
of the Premises shall comprise a minimum of 2,000 square feet of space
contiguous to Abbott space.

 

C.            Upon the written agreement of the Parties, Tenant
shall be permitted to add space within the Building or adjacent to the Building
on the same general terms and conditions of this Lease.

 

2.             Lease Term.  The term (the “Term”)
of this Lease shall commence on the Effective Date and shall end on the
Termination Date.  Notwithstanding the
foregoing, Tenant shall have the right to terminate this Lease at any time upon
not less than one hundred eighty (180) days written notice to Landlord.

 

 

3.             Base Rent.  Tenant agrees to pay as
annual base rent (“Base Rent”) Landlord’s fully burdened cost per square
foot of the Premises for each year (“Lease Year”) during the Term
payable in equal monthly installments (“Monthly Base Rent”).  Monthly Base Rent for each  Lease Year is set forth in the
Schedule attached hereto as Exhibit A-1.  The obligation to pay Rent (defined below) shall commence on the
Effective Date.  The first Lease Year
shall commence on the Effective Date and end on December 31, 2004, and
each succeeding Lease Year shall commence on January 1 of the following
calendar year.  The final Lease Year
shall commence on January 1, 2014 and end on Termination Date.  Rent shall be paid to Landlord in advance on
or before the first day of each month of the Term, and shall be payable to
Landlord at the address shown in the Schedule, or at such other place as
Landlord may direct from time to time in writing.  If the Term shall commence on a day other than the first day of a
calendar month, Tenant shall pay a prorated monthly Rent for such initial
partial month.  Payments not made when
due shall bear interest at a rate per annum equal to the rate which Citibank
N.A. (or its successor or another major money center commercial bank agreed to
by the Parties) announces as its prime lending rate, as in effect from time to
time plus two percent (2%).

 

All Base Rent and the
cost of any Additional Services or Extra Services provided pursuant to Paragraphs
6 and 7 hereof, together with any other sum required to be paid by
Tenant pursuant to this Lease (such sums are collectively referred to herein as
“Rent”) shall be paid when due, without demand, deduction, offset or
discount and all in lawful money of the United States.  The payment of Rent hereunder is independent
of each and every other covenant and agreement contained in this Lease.  

 

4.             Use of
Premises. 
The Premises shall be occupied and used only for office, laboratory and
manufacturing  purposes and for no other purpose.  Without limiting the generality of the
foregoing, no use shall be made of the Premises nor acts done which will
increase the existing rate of insurance upon the Building or cause a
cancellation of any insurance policy covering the Building or any part thereof.  Tenant shall not commit, or suffer to be
committed, any waste upon the Premises, or any public or private nuisance, or
other act or thing which may disturb the quiet enjoyment of any other tenant in
the Building, nor, without limiting the generality of the foregoing, shall
Tenant allow the Premises to be used for any improper, immoral, unlawful or
objectionable purpose.

 

Tenant agrees that
Tenant, together with any other Person (as defined below) entering the Premises
with Tenant’s permission, will comply with (i) all federal, state and municipal
laws, ordinances and regulations applicable to Tenant’s use and occupancy of
the Premises, (ii) all covenants, conditions and restrictions of record
applicable to Tenant’s use and occupancy of the Premises, and (iii) the rules
and regulations attached hereto as Exhibit C together with all other
reasonable rules and regulations which Landlord may reasonably make from time
to time for the management, safety, care and cleanliness of the Building,
consistent with the same rules and regulations which Landlord implements for
its other buildings with analogous uses. 
The violation of any such items shall be deemed a material breach of
this Lease by Tenant.  “Person”
means an individual, a general or limited partnership, a corporation, a trust,
a joint venture, an unincorporated organization, a limited liability entity,
any other entity and any governmental authority.

 

 

5.             Privileges of Hospira Employees.  Tenant, its
employees and invitees, may use in common with Landlord, its employees and
invitees the conference rooms located in the Building, the cafeteria serving
the Building and the exercise facilities serving the Building.  Tenant’s use of conference rooms shall be in
accordance with Landlord’s reservation procedures.  Tenant’s use of exercise facilities and the cafeteria shall be in
accordance with the rules and procedures applicable to Landlord’s employees.

 

6.             Utilities and Other Services Furnished by Landlord.  On a
twenty-four (24) hour and seven (7) days per week basis, Landlord shall furnish
to Tenant during the Term:  (i)
automatic passenger elevator service; (ii) restroom facilities with hot and
cold water; (iii) heating and air conditioning, as appropriate (excluding Tenant
process areas); (iv) emergency lighting, electricity for lighting, computers,
telecommunications equipment but excluding any electricity used in providing
the Additional Services (as defined below) or the Extra Services (as defined
below); and (v) cold water as required for existing plumbing for the Premises.

 

Consistent with
Landlord’s current practice with respect to Landlord’s own buildings which are
analogous to the Building, Landlord shall furnish to Tenant the services
described in Exhibit B-1 which may be changed from time to time in Landlord’s
reasonable discretion upon thirty (30) days advance written notice to
Tenant.  Upon written request and
reasonable written notice, Landlord shall furnish janitorial, cleaning and
security services during weekend hours at rates determined in accordance with Exhibit
B-5 attached hereto.  During normal
business hours and upon written request and reasonable prior notice, Landlord
shall furnish freight elevator service to Tenant.  

 

Landlord may, but
shall have no obligation to, provide, at Tenant’s request, any other Additional
Services as it is reasonably possible for Landlord to provide within a
reasonable period after the time such additional service is requested (each, an
“Additional Service”) including, but not limited to, the services
described in Exhibit B-2 attached hereto.  

 

To the extent
Landlord incurs any additional cost or expense as a result of Landlord
providing Additional Services at Tenant’s request, Tenant shall reimburse
Landlord for such cost or expense, such amount to be considered additional Rent
hereunder.  All charges for such
Additional Services shall be due and payable at the same time as the
installment of Monthly Base Rent with which they are billed, or if billed
separately, shall be due and payable within thirty (30) days after Tenant
receives Landlord’s bill therefor.  Any
such billings for Additional Services shall include an itemization of the
Additional Services rendered and the charge for each such service, which charge
shall be calculated as Landlord’s fully burdened cost to perform such
services.  The Additional Services shall
be performed by Landlord in the same manner Landlord performs such services for
itself.

 

If the Tenant
fails to promptly pay charges for Additional Services, Landlord, upon not less
than ten (10) days’ notice, may, in addition to any other remedies available to
Landlord, discontinue furnishing Additional Services until such time as Tenant
has made payment therefor.  Such
discontinuance shall not be deemed an eviction or disturbance of Tenant’s use
of the

 

 

Premises, shall not render Landlord liable for damages, nor shall it
relieve Tenant from performance of Tenant’s obligations under this Lease.

 

Landlord shall not
be liable for any loss or damage caused by or resulting from any variation,
interruption or failure of any utilities and services to be provided by
Landlord hereunder due to any cause whatsoever, other than Landlord’s
negligence or willful misconduct, and no temporary interruption or failure of
such utilities and services incident to the making of repairs, alterations or
improvements, or due to accident, strike or conditions or events beyond
Landlord’s reasonable control shall be deemed an eviction of Tenant or relieve
Tenant from any of Tenant’s obligations hereunder, including, without
limitation, the payment of Rent.  

 

7.             Extra
Services.

 

A.            Landlord’s Delivery of Extra Services.  At Tenant’s
expense, Landlord shall furnish the extra services described on Exhibits B-3 and B-4
attached hereto (“Extra Services”).

 

1.             Landlord shall perform all Extra Services in a manner
which is substantially similar in nature, quality and timeliness to the
analogous services provided by Landlord prior to the Commencement Date.

 

2.             Landlord shall perform its duties and responsibilities
hereunder in good faith based on its past practices.  Landlord shall not be liable or held accountable, in damages or
otherwise, for any error of judgment or any mistake of fact or law or for
anything that Landlord does or refrains from doing in good faith hereunder,
except in the case of its gross negligence or willful misconduct.

 

3.             Nothing in this Lease shall require Landlord to
perform any Extra Service in a manner that would constitute a violation of
applicable laws.

 

4.             Landlord shall not be obligated to perform any Extra
Service in a volume or quantity which exceeds the planned 2004 volumes or
quantities of analogous services performed for the applicable operation of
Tenant, without reference to the transactions contemplated by the Separation
and Distribution Agreement dated April 12, 2004, between Landlord and
Tenant (the “Separation and Distribution Agreement”).  Tenant may request a higher volume or
quantity of such historical volumes or quantities of an Extra Service, which
request Landlord may accept or reject in its sole discretion.  If Landlord agrees to such a request, the
Parties shall cooperate and act in good faith to make any modifications to the
applicable Schedule for such Extra Service.

 

5.             (i) Landlord will not be required to perform any of
the Extra Services for the benefit of any Person other than Tenant, and (ii)
EXCEPT AS EXPRESSLY PROVIDED ABOVE IN THIS PARAGRAPH 7A., EACH
PARTY ACKNOWLEDGES AND AGREES THAT ALL EXTRA SERVICES AND PRODUCTS ARE PROVIDED
ON AN “AS-IS” BASIS AND THAT, LANDLORD MAKES NO WARRANTIES, EXPRESS OR IMPLIED,
WITH

 

 

RESPECT TO THE EXTRA
SERVICES AND PRODUCTS, AND HEREBY DISCLAIMS ANY REPRESENTATION OR WARRANTY OF
MERCHANTABILITY, FITNESS FOR ANY PARTICULAR PURPOSE, NON-INFRINGEMENT OR ANY
OTHER WARRANTY WHATSOEVER.

 

B.            Charges
for Extra Services. 
The charges for the Extra Services (the “Extra Service Charges”)
shall be determined in accordance with Exhibit
B-5.  If the Tenant fails to
timely pay Landlord’s charges for Extra Services, Landlord, upon not less than
ten (10) days’ notice, may, in addition to any other remedies available to
Landlord, discontinue furnishing such Extra Services until such time as Tenant
has made payment therefor.  No such
discontinuance shall be deemed an eviction or disturbance of Tenant’s use of the
Premises or render Landlord liable for damages or relieve Tenant from
performance of Tenant’s obligations under this Lease.

 

C.            Changes
to Extra Services. 
Except as provided in Paragraph 7F. below, the Parties
acknowledge that Landlord may make changes from time to time in the manner of
performing the Extra Services if Landlord is making similar changes in
performing analogous services for itself and if Landlord furnishes to Tenant
substantially the same notice (in content and timing, but in any event no less
than thirty (30) days) as Landlord shall furnish to others in its own
organization respecting such changes. 
No such change shall affect the Extra Services Charges for the
applicable Extra Service.

 

D.            Transitional Nature of Extra Services.  The Parties
acknowledge the transitional nature of the Extra Services and agree to
cooperate in good faith and to use commercially reasonable efforts to
effectuate a smooth transition of the Extra Services from Landlord to Tenant
(or its designee).

 

E.             Cooperation.  In the event that (i) there
is nonperformance of any Extra Service as a result of a Force Majeure event (as
defined in Paragraph 30.F. below), or (ii) the provision of an Extra
Service would violate applicable law, the Parties agree to work together in good
faith to arrange for an alternative means by which Tenant may obtain, at
Tenant’s sole cost, the Extra Service so affected.

 

F.             Use of Third Parties to Provide the Extra Services.  Landlord may
perform its obligations through its Subsidiaries (as defined below) or, if
Landlord is obtaining analogous services for itself from agents, subcontractors
or independent contractors, through the use of such agents, subcontractors or
independent contractors if Landlord furnishes Tenant substantially the same notice
(in content and timing) as Landlord shall furnish to its own organization
respecting such use of Third Parties. 
If Landlord is not obtaining analogous services for itself from Third
Parties, Landlord may perform its obligations hereunder through the use of
agents, subcontractors or independent contractors only upon obtaining the prior
written consent of Tenant. 
Notwithstanding the foregoing, Landlord shall not be relieved of its
obligations under this Lease by use of such Subsidiaries, agents, subcontractors
or contractors.  “Subsidiary”
or  “Subsidiaries” means another
Person or Persons directly or indirectly controlled by such first Person.  As used herein, “control” means the
possession, directly or indirectly, of the power to

 

 

direct or cause the
direction of the management and policies of such Person(s), whether through
ownership of voting securities or other interests, by contract or
otherwise.  

 

G.            Early Termination of Extra Services.  Tenant shall
have the right at any time during the Term to terminate its obligation to
purchase any individual Extra Service, upon the giving of one hundred eighty
(180) days, advance written notice to Landlord.

 

H.            Information
Transmission. 
On or prior to the last day of the term of an Extra Service, Landlord shall
use reasonable commercial efforts to support any transfer of Information (as
hereinafter defined) concerning the relevant Extra Services to Tenant.  If requested by Tenant, Landlord shall
deliver to Tenant, within such time periods as the Parties may reasonably
agree, all Information received or computed for the benefit of Tenant during
the term of an Extra Service, in electronic and/or hard copy form; provided,
however, that (i) Landlord shall not have any obligation to provide Information
in any non-standard format, and (ii) Landlord shall be reimbursed for its
reasonable out-of-pocket costs for providing Information in any format other
than its standard format.  For purposes
of this Lease, “Information” means information, whether or not
patentable or copyrightable, in written, oral, electronic or other tangible or
intangible forms, including studies, reports, records, books, contracts,
instruments, surveys, discoveries, ideas, concepts, know-how, techniques,
designs, specifications, drawings, blueprints, diagrams, models, prototypes,
samples, flow charts, data, computer data, disks, diskettes, tapes, computer
programs or other software, marketing plans, customer names, communications by
or to attorneys (including attorney-client privileged communications), memos
and other materials prepared by attorneys or under their direction (including
attorney work product), and other technical, financial, employee or business
information or data.

 

I.              Mutual
Cooperation. 
The Parties shall cooperate with each other in connection with the
performance of the Extra Services hereunder, including producing on a timely
basis all information that is reasonably requested with respect to the
performance of Extra Services and the transition of such Extra Services at the
end of their applicable term; provided, however, that such cooperation shall
not unreasonably disrupt the normal operations of the Parties.

 

J.             Limitations on Liability for Failure to Provide Extra Services.  FOR EACH
TWELVE (12) MONTH PERIOD DURING THE TERM, THE FIRST SUCH PERIOD COMMENCING ON
THE EFFECTIVE DATE AND SUBSEQUENT SUCH PERIODS COMMENCING ON EACH YEARLY
ANNIVERSARY THEREAFTER, THE MAXIMUM LIABILITY OF LANDLORD TO, AND THE SOLE
REMEDY OF, TENANT WITH RESPECT TO ANY AND ALL CLAIMS ARISING UNDER OR IN CONNECTION
WITH THE PROVISION OF EXTRA SERVICES UNDER THIS LEASE, REGARDLESS OF THE THEORY
UPON WHICH THE LIABILITY IS PREMISED, SHALL NOT EXCEED THE LANDLORD’S PROFITS
FOR PERFORMING EXTRA SERVICES HEREUNDER, WHICH SHALL BE DEEMED TO BE EQUAL TO
THE AMOUNT OF THE MARK-UP RECEIVED BY LANDLORD AS SET FORTH ON EXHIBIT B-5
AND AS MAY BE ADJUSTED PURSUANT TO THE TERMS OF EXHIBIT-B-5.  IN NO EVENT SHALL LANDLORD, ITS SUBSIDIARIES
OR THEIR RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES OR AGENTS BE LIABLE TO THE
OTHER PARTY FOR INDIRECT, EXEMPLARY,

 

 

INCIDENTAL, CONSEQUENTIAL
OR PUNITIVE DAMAGES (INCLUDING LOST OR ANTICIPATED PROFITS RELATING TO THE
SAME) IN CONNECTION WITH THE PERFORMANCE OF EXTRA SERVICES UNDER THIS LEASE,
EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, AND TENANT
HEREBY WAIVES ON BEHALF OF ITSELF AND ITS SUBSIDIARIES ANY CLAIM FOR SUCH
DAMAGES, INCLUDING ANY CLAIM FOR PROPERTY DAMAGE OR LOST PROFITS, WHETHER
ARISING IN CONTRACT, TORT OR OTHERWISE. 

 

K.            Third
Party Claims. 
Tenant shall indemnify, defend and hold harmless Landlord, its
Subsidiaries and each of their directors, officers and employees, and each of
the successors and assigns of any of the foregoing (collectively, the “Landlord
Indemnitees”), from and against any and all claims of any Person other than
Landlord, any Landlord Subsidiary, Tenant and any Tenant Subsidiary (each
herein a “Third Party”) relating to, arising out of or resulting from
Landlord’s furnishing or failing to furnish the Extra Services provided for in
this Lease, other than Third Party claims arising out of the gross negligence
or willful misconduct of any Landlord Indemnitee.  

 

L.             Title to Intellectual Property.  Tenant
acknowledges that it will acquire no right, title or interest (including any license
rights or rights of use) in any intellectual property which is owned or
licensed by Landlord, by reason of the provision of the Extra Services provided
hereunder.  Tenant will not remove or
alter any copyright, trademark, confidentiality or other proprietary notices
that appear on any intellectual property owned or licensed by Landlord, and
shall reproduce any such notices on any and all copies thereof.  Tenant will not attempt to decompile,
translate, reverse engineer or make excessive copies of any intellectual
property owned or licensed by Landlord, and shall promptly notify Landlord or
any such attempt, regardless of whether by Tenant or any Third Party, of which
Tenant becomes aware.

 

8.             Alterations
and Repairs. 
Tenant shall not make a structural change or changes which can be seen
from the exterior of the Building without Landlord’s prior written
consent.  For purposes of this Lease,
hot work, work requiring core drilling and surface penetration and work involving
pressurized lines shall automatically be deemed a structural change requiring
Landlord’s prior written consent. 
Tenant shall not do any painting or decorating, erect any non-moveable
partitions or make any additions, improvements, alterations or repairs to the
Premises costing in each case more than $50,000.00 without Landlord’s prior
written consent, which consent shall not be unreasonably withheld or
delayed.  In the event Tenant proposes
to make any addition, improvement, alteration or repair requiring Landlord’s
prior written approval, Tenant shall, prior to commencing any such activity,
submit to Landlord for its prior written approval:  (i) detailed plans and specifications; (ii) all necessary
governmental permits evidencing compliance with all applicable governmental
rules, regulations and requirements; (iii) certificates of insurance in form
and amounts reasonably required by Landlord, naming Landlord and any other
parties designated by Landlord as additional insureds; and (iv) all other
documents and information as Landlord may reasonably request in connection with
such work.  Neither approval of the
plans and specifications nor supervision of the addition, improvement or
alteration by Landlord shall constitute a representation or warranty by
Landlord as to the accuracy, adequacy, sufficiency or propriety of such plans
and specifications or as to the quality

 

 

of workmanship or the
compliance of such alteration with applicable law.  Tenant shall pay the entire cost of the addition, improvement or
alteration.  Each addition, improvement,
alteration and repair shall be performed in a good and workmanlike manner, in
accordance with the plans and specifications approved by Landlord, and shall
meet or exceed the standards for construction and quality of materials
established by Landlord for the Building. 
In addition, each addition, improvement, alteration and repair shall be
performed in compliance with all applicable governmental laws, ordinances,
codes, orders, rules and regulations. 
Each addition, improvement, alteration and repair shall be performed by
contractors approved by Landlord and all contractors shall act in harmony with
Landlord’s employees and contractors.

 

Tenant agrees to
protect, defend and indemnify the Landlord Indemnitees, the Premises and the
Building from and against any and all liabilities of every kind and description
which may arise out of or be connected in any way with said additions,
alterations, improvements or repairs or the like, whether performed by or under
the direction of Tenant and at the cost of Tenant.  Upon completion of any addition, improvement, alteration or
repair, if Landlord requests, Tenant shall promptly furnish Landlord with sworn
owner’s and contractors’ statements and full and final waivers of lien covering
all labor and materials included in such work. 
Tenant shall not permit any mechanic’s lien to be filed against the
Building, or any part thereof, arising out of any alteration performed, or
alleged to have been performed, by or on behalf of Tenant.  If any such lien is filed, Tenant shall
within thirty (30) days thereafter have such lien released of record or deliver
to Landlord a bond in form, amount, and issued by a surety satisfactory to
Landlord, indemnifying Landlord against all costs and liabilities resulting
from such lien and the foreclosure or attempted foreclosure thereof.  If Tenant fails to have such lien so
released or to deliver such bond to Landlord, Landlord, without investigating
the validity of such lien, may pay or discharge the same; and Tenant shall
reimburse Landlord upon demand for the amount so paid by Landlord, including
Landlord’s reasonable expenses and attorneys’ fees.

 

Unless otherwise
provided in this Paragraph or by written agreement, all additions,
improvements,  alterations, repairs and
fixtures (except Tenant’s furniture, trade fixtures and equipment) installed by
Tenant during the Term shall be surrendered with the Premises and shall become
Landlord’s property without compensation to Tenant.  Landlord shall have the option at the time of granting consent to
additions, improvements and alterations to require their removal and the
restoration of the Premises to the condition existing immediately prior to
their installation at the expiration or early termination of the Lease.  For any such installations which do not
require Landlord’s consent, Landlord shall have the option of requiring their
removal and the restoration of the Premises to the condition existing
immediately prior to their installation at the expiration or early termination
of the Lease. 

 

Tenant shall
remove its furniture, trade fixtures and equipment and all other items of
personal property from the Premises prior to the end of the Term or any
extension thereof, or at the termination of right of possession, however ended.  Tenant shall repair any damages caused by
the removal of such items.  If Tenant
does not remove such items, Tenant shall be conclusively presumed to have
conveyed the same to Landlord under this Lease as a bill of sale without
further payment or credit by Landlord to Tenant, or at Landlord’s sole option,
Landlord may cause the items covered in this Paragraph to be removed and stored
at the risk and cost of

 

 

Tenant.  Tenant shall pay to
Landlord, upon demand, any and all reasonable expenses incurred in such removal
and all reasonable storage charges against such property so long as the same
shall be in Landlord’s possession or under Landlord’s control.  Any such property of Tenant not removed from
the Premises or retaken from storage by Tenant within thirty (30) days after the
end of the Term, however terminated or any extension thereof, at Landlord’s
sole option, shall be conclusively deemed to have been forever abandoned by
Tenant.

 

9.             Maintenance
and Repair.

 

A.            Landlord shall at its own expense, maintain and keep
in good repair and in a manner consistent with the maintenance and standards of
other similar buildings owned by Landlord the foundation, walls (load bearing
and wall surfaces in common corridors), exterior doors and doors through load
bearing walls, floors, flooring (building standard carpet and tile), ceilings
(excluding false ceilings not located in common areas), roof, elevators and
other structural portions of the Building and common areas, and shall maintain
the fire mains and sprinkler system in the Building and the Building’s
mechanical, electrical, plumbing, heating, ventilating and air conditioning
equipment and systems.  Landlord shall,
also, at its sole cost and expense, maintain the following infrastructures serving
the Premises:

 

Distribution piping up to
the first isolation valve upstream of any Tenant process for fresh water and
steam plant;

 

Distribution piping
downstream of the utilities backflow preventer for Nitrogen, Carbon Dioxide,
Compressed Air and Plant Air;

 

Distribution piping
downstream of the utilities isolation valve for distilled water and lake water;

 

WFI stills, tanks and
recirculation loop;

 

ACW water line up to the
inlet of the ACW’s back flow preventer;

 

Condensate distribution
piping downstream of first isolation valve from the first trap;

 

Power Distribution up to
MCC panels; and 

 

Nine (9) break tanks
located within the basement of the Premises and all associated piping
discharging from the break tanks only.

 

Landlord shall perform
its maintenance in a manner designed to minimize interference with Tenant’s use
of the Premises to the extent such is reasonably possible without incurring
additional costs.  Landlord shall
perform its maintenance obligations in accordance with the laws of the United
States, the State of Illinois and all directions and regulations of
governmental agencies having jurisdiction over the Premises.  Landlord shall have no obligation for
Tenant’s personal property, furniture, trade fixtures and equipment, which
shall be Tenant’s responsibility.

 

 

B.            Tenant shall at its own expense, maintain and keep in
good repair and in a manner consistent with the current standards of the
Building, the process HVAC systems and controls, the flooring (excluding
building standard carpet and tile), false ceilings, interior doors and non-load
bearing walls within the Premises. 
Tenant shall also, at its sole cost and expense maintain the following
components of system infrastructure list:

 

Above grade chemical
sewer piping; storm sewer other than below grade piping and grade roof drains
piping;

 

Power Distribution from
the MCC panels and beyond;

 

Nitrogen, carbon dioxide
and distilled water systems up to the inlet isolation valve to the secondary
backflow preventer or up to the first isolation valve upstream of any process
takeoff;

 

WFI inlet control valve
to the break tank and beyond; and

 

ACW system from the
backflow preventer and beyond.

 

C.            Tenant shall, at its expense, maintain its furniture,
trade fixtures and equipment, at all times in good condition and repair.  Tenant shall be responsible for the cleaning
and maintenance of all Tenant’s furniture, trade fixtures and equipment.  Tenant shall commit no waste of any kind on
or about the Premises and Tenant shall pay for all damage to the Building, as
well as damage to tenants or occupants thereof, caused by misuse or neglect of
the Premises, by Tenant or Tenant’s employees, agents or invitees.  At the expiration of the Term, Tenant shall
surrender the Premises in good condition, normal wear and tear and damage by
fire or other insured casualty excepted.

 

10.           Assignment-Sublease.  This Lease
shall be binding upon and inure to the benefit of the Parties hereto and their
respective successors and permitted assigns; provided, however,
that neither Party may assign its rights or delegate its obligations under this
Lease without the express prior written consent of the other Party (which
consent shall not be unreasonably withheld, delayed or conditioned hereto.
 Notwithstanding the foregoing, this Lease shall be assignable by either Party
in whole with the prior written consent of the other Party (which consent shall
not be unreasonably withheld, delayed or conditioned) in connection with: (i) a
merger or consolidation of such Party if (a) such Party is not the surviving
entity, or (b) such Party’s shareholders constitute less than 70% of the
surviving shareholders; (ii) the sale of all or substantially all of the assets
of such Party; or (iii) the acquisition by a Third Party of at least 30% of the
combined voting power of the then-outstanding securities of such Party entitled
to vote generally in the election of directors (each such occurrence a “Change
of Control Event”), in each case so long as the resulting, surviving or
transferee Person assumes all the obligations of the assignor hereunder by
operation of law or pursuant to an agreement in form and substance reasonably
satisfactory to the other Party.  It shall not be deemed to be
unreasonable for a Party to withhold consent to assignment in connection with a
Change of Control Event on the basis that the proposed assignee is a competitor
of such Party.  In the event a Party
effects a Change of Control Event without the other Party’s prior written
consent to assign this Lease as set forth

 

 

above, the latter Party
may terminate this Lease, in its sole discretion, with effect immediately upon
the occurrence of such Change of Control Event.

 

11.           Indemnification and Insurance.  Landlord
shall not be liable to Tenant or to any other Persons for any injury to or
death of any Person or for loss or damage to property (including property of
Tenant) occurring in the Building or the Premises from any cause whatsoever,
except to the extent caused by Landlord’s negligence or willful
misconduct.  Tenant agrees to indemnify
and save Landlord harmless from all loss, damage, liability and expense
(including expense of defending claims) relating to any actual or alleged
injury to or death of any Person or loss or damage to property caused by or
resulting from any occurrence on the Premises, except to the extent caused by
Landlord’s negligence or willful misconduct. 
Tenant shall, at Tenant’s expense, maintain liability insurance and “All
Risk” insurance with insurers, coverages, amounts and waiver of subrogation and
cancellation clauses acceptable to Landlord. The liability insurance coverage
shall include, without limitation, minimum limits of $2,000,000.00 (combined
single limit per occurrence and $10,000,000.00 annual aggregate) for property
damage.  For bodily injuries and death,
Tenant’s insurance carrier should be licensed to do business in Illinois and
maintain a minimum Best’s rating of “A”, category “X”.  Tenant’s “All Risk” insurance coverage shall
include coverage of its moveable fixtures, office equipment, furniture, trade
fixtures and all other items of Tenant’s property on the Premises.  Such policy or policies shall name Landlord
as an additional insured and shall be noncancellable as to Landlord and not
subject to material change except upon at least thirty (30) days’ prior written
notice given to Landlord.  Tenant shall
furnish Landlord with a copy of said policy or policies or other acceptable
evidence that said insurance is in effect on the date hereof and at least
fifteen (15) days prior to the expiration of the then current policies.  Landlord shall maintain commercial general
liability insurance and “All Risk” insurance for the full replacement value of
the Building and all improvements, machinery and fixtures.  Each Party may self-insure its insurance
obligations hereunder.

 

12.           Inspection.  Landlord may retain a key to
the Premises and Landlord and its employees and agents shall have the right to
inspect the Premises at all reasonable times and to enter the same whenever
reasonably necessary to exercise any right or privilege of Landlord under this
Lease.

 

13.           Eminent
Domain. 
If the entire Premises (or a material portion thereof such that the
remainder of the Premises is no longer suitable for Tenant’s use) shall be
taken by any public or governmental authority under the power of eminent
domain, the Term shall cease as of the date possession is taken by such
authority and the Rent shall be paid up to that date.  If only a part of the Premises shall be taken and the remainder
remains tenantable for the purposes for which Tenant has been using the
Premises, then this Lease shall continue in effect, except that the Rent shall
be reduced in proportion to the amount of square footage of the Premises so
taken, and Landlord, at its expense, shall make all necessary repairs and
alterations to the Premises required by such taking.  However, Landlord shall not be required to make such repairs and
alterations, and this Lease shall terminate on the date possession is taken by
the applicable authority, if so much of the Building is taken by eminent domain
so as to make such repairs and alterations, in Landlord’s reasonable judgment,
economically disadvantageous.  All
damages

 

 

awarded for such taking
may be retained by Landlord, whether such damage is awarded as compensation for
diminution in the value of the leasehold or to the fee of the Premises.  Tenant shall be entitled to make a separate
claim for cost of removal of equipment and fixtures and Landlord shall not be
entitled to any separate award arising out of such claim.  The term “eminent domain” as used herein
shall include the exercise of any similar governmental power and any purchase
or other acquisition in lieu thereof.

 

14.           Fire
and Other Casualty. 
Should the Building or the Premises be damaged by fire or other
casualty, and if the damage is repairable within ninety (90) days from the date
of such casualty (with the repair work and the preparation therefor to be done
during regular working hours on regular working days), as determined by
Landlord’s architect, then the damage shall be repaired with due diligence by
Landlord.  In the meantime, Rent shall
be abated in the same proportion that the untenantable portion of the Premises
bears to the whole thereof.  Should the
Premises or the Building be completely destroyed by fire or other casualty, or
should they be damaged to such an extent that the damage cannot be repaired
within ninety (90) days from the date of the casualty, as determined by
Landlord’s architect, Landlord and Tenant shall each have the option of
terminating this Lease and shall so advise the other within thirty (30) days
after the date of the casualty.  If
neither Party has elected to terminate this Lease within said thirty (30) day
period, Landlord shall commence and prosecute with reasonable diligence any
work necessary to restore or repair the Premises.  For the period from the occurrence of any damage to the Premises
to the date of completion of the repairs (or to the date of termination of this
Lease) the Rent shall be abated in the same proportion as the untenantable
portion of the Premises bears to the whole thereof.  Rent hereunder shall not abate if Tenant’s negligence was the
cause of the damage or casualty.

 

15.           Waiver
of Subrogation. 
Tenant and Landlord hereby mutually release each other from liability
and waive all right of recovery against each other for any loss from perils
insured against under their respective “All Risk” insurance policies, including
any extended coverage and endorsements thereto, and agree to cause their
respective insurers to do the same.

 

16.           Defaults
and Remedies.

 

A.            Defaults
by Tenant. 
The occurrence of any of the following shall constitute a default (“Default”)
by Tenant hereunder:

 

1.             If Tenant defaults in the payment of Rent, and if the
default is not remedied within five (5) days after written notice thereof by
Landlord to Tenant;

 

2.             If Tenant defaults in the prompt and full performance
of any term, covenant or provision of this Lease (except those specified in Subparagraphs
(1), (3), (4), (5), (6) and (7) of this Subparagraph
A of Paragraph 16) and if such default is not remedied within thirty
(30) days after notice thereof by the Landlord; provided, however, if such
default is capable of being cured but cannot by its nature be cured within
thirty (30) days, Tenant shall have such longer period as is reasonably
necessary (not to exceed ninety (90) days from the date of

 

 

the initial default) to
cure such default, provided Tenant has promptly commenced and is diligently
pursuing such cure;

 

3.             If the leasehold interest of Tenant is levied upon
under execution or is attached under process of law, which levy or attachment
continues for a period of thirty (30) days;

 

4.             If Tenant shall generally not pay its debts as they
become due or shall admit in writing its inability to pay its debts or shall
make a general assignment for the benefit of creditors;

 

5.             If Tenant shall commence any case, proceeding or other
action seeking reorganization, arrangement, adjustment, liquidation,
dissolution or composition of it or its debts under any law relating to
bankruptcy, insolvency, reorganization or relief of debtors, or seeking
appointment of a receiver, trustee, custodian or other similar official for it
or for all or any substantial part of its property;

 

6.             If Tenant shall take any corporate or other action to
authorize any of the actions set forth above in Subparagraphs A(4) and A(5)
of this Paragraph 16; or

 

7.             If any case, proceeding or other action against Tenant
shall be commenced seeking to have an order for relief entered against it as debtor,
or seeking reorganization, arrangement, adjustment, liquidation, dissolution or
composition of it or its debts under any law relating to bankruptcy,
insolvency, reorganization or relief of debtors, or seeking appointment of a
receiver, trustee, custodian or other similar official for it or for all or any
substantial part of its property, and such case, proceeding or other action (i)
which results in the entry of an order for relief against it which is not fully
stayed within seven (7) business days after the entry thereof or (ii) which is
not dismissed for a period of thirty (30) days.

 

B.            Landlord’s
Remedies.

 

1.             Upon the occurrence of any one or more Defaults by
Tenant, Landlord may elect to terminate this Lease and Tenant’s right to
possession of the Premises.  Upon any
termination of this Lease, whether by lapse of time or otherwise, Tenant shall
surrender possession and vacate the Premises and deliver possession thereof to
Landlord.  In such event, Tenant hereby
grants to Landlord full and free license (a) to enter into and upon the
Premises with or without process of law, (b) to repossess the Premises, (c) to
expel or remove Tenant and any others who may be occupying or be within the
Premises, and (d) to remove any and all property therefrom using such force as
may be necessary without being deemed in any manner guilty of trespass,
eviction or forcible entry or

 

 

detainer, and without
relinquishing Landlord’s rights to Rent or any other right given to Landlord
hereunder or by operation of law.

 

2.             Landlord may but shall not be obligated to cure any
Default by Tenant hereunder.  If
Landlord so elects, all costs and expenses paid by Landlord in curing such
Default and reasonable legal fees in connection therewith shall be additional
rent due on the next rent date.

 

3.             Notwithstanding anything in the Lease to the contrary,
any and all remedies set forth in this Lease (i) shall be in addition to any
and all other remedies Landlord may have at law or in equity, (ii) shall be
cumulative, and (iii) may be pursued successively or concurrently as the
Landlord may elect.  The waiver by
Landlord of any breach of any term, covenant or condition herein contained
shall not be deemed to be a waiver of such term, covenant or condition or any
subsequent breach of the same, or any other term, covenant or condition herein
contained.  Neither the acceptance of
Rent nor any other action or omission of Landlord at any time or times after
the happening of any breach by Tenant of any term, covenant or condition of
this Lease, shall operate as a waiver of any past or future breach of any term,
covenant or condition hereof or to deprive Landlord of its right to exercise
its remedies on account of such breach, or be construed so as to at any future
time estop Landlord from promptly exercising any other option, right or remedy
that it may have under any term or provision of this Lease.

 

C.            Landlord’s Default and Tenant’s Remedies.  If Landlord
fails to observe or perform any material covenant, agreement or obligation to
be performed by Landlord under this Lease, and if such failure shall continue
for more than thirty (30) days after notice thereof from Tenant to Landlord
(unless such failure requires work to be performed, acts to be done, or
conditions to be removed which, by their nature, cannot reasonably be
performed, done or removed, as the case may be, within such period, in which
event, if the Landlord shall have commenced curing or correcting the same
within such period and shall have diligently prosecuted such cure, or correction,
such thirty (30) day period shall be extended by such additional time period as
may be reasonably required for Landlord to cure or correct such failure), then
Tenant shall have and may exercise such rights and remedies to which it may be
entitled at law or in equity upon such default of Landlord, including, but not
limited to, the right to expend amounts necessary to cure such Default and to
deduct such amounts from Rent payments due Landlord.

 

17.           Notices.  All notices or other
communications under this Lease must be in writing and shall be deemed to be
duly given (a) when delivered in person, (b) upon transmission via confirmed
facsimile transmission, provided that such transmission is followed by delivery
of a physical copy thereof in person, via U.S. first class mail, or via a
private express mail courier, or (c) two (2) days after deposit with a private
express mail courier, in any such case addressed as provided in Paragraphs 5
and 6 of the Lease Schedule.  Any
Party may, by notice to the other Party, change the address to which such
notices are to be given.

 

 

18.           Holding Over.  In the event Tenant remains
in possession of the Premises or any part thereof after the expiration of this
Lease, without a written lease, Tenant shall be deemed to be occupying the
Premises as a tenant from month-to-month subject to all of the conditions,
provisions and obligations of this Lease insofar as they may be applicable to
such month-to-month tenancy, except as provided in this Paragraph 18.  During such holding over, Tenant shall pay
Rent at one hundred twenty five percent (125%) the rate payable for the year
immediately preceding said holding over computed on a monthly basis for the
time Tenant thus remains in possession. 
The provisions of this Paragraph do not waive Landlord’s rights of
re-entry or right to regain possession by actions at law or in equity or by any
other rights hereunder.

 

19.           Successors
or Assigns. 
This Lease shall be binding upon and inure to the benefit of the Parties
hereto, and their respective successors and permitted assigns.

 

20.           Subordination.  Tenant
agrees that this Lease shall be subordinate in interest to any mortgage or
ground lease covering the Building now in effect or hereafter given by Landlord
or others provided that so long as Tenant is not in default hereunder, this
Lease shall remain in full force and effect and Tenant’s possession of the
Premises shall not be disturbed.  Tenant
agrees at Landlord’s request to execute an appropriate instrument confirming
its subordination in exchange for a written non-disturbance agreement executed
by any such lender or ground lessor in a form as may be reasonably acceptable
to Tenant.

 

21.           Quiet
Enjoyment. 
Landlord covenants that Tenant, on paying the Rent and performing
Tenant’s obligations under this Lease, shall peaceably have, hold and enjoy the
Premises for the Term without any hindrance by or through Landlord, or its
successors or assigns.

 

22.           Parking.  Tenant and its employees,
guests and visitors shall be permitted to park, along with other tenants of the
Building, their employees, guests and visitors in parking areas adjacent to the
Building in accordance with Landlord’s standard parking procedures.

 

23.           Sale by
Landlord. 
In the event of an arms length sale or conveyance by Landlord to an
unrelated Third Party of Landlord’s interest in the Building or in this Lease,
the same shall operate to release Landlord from any future liability under this
Lease accruing from and after such transfer. 
Tenant agrees to look solely to the successor in interest of Landlord in
and to this Lease for the performance of Landlord’s covenants and obligations.

 

24.           Estoppel
Certificate. 
Tenant shall, at the request of Landlord at any time and from time to
time upon not less than ten (10) business days’ prior written notice, furnish
to Landlord, or an entity designated by Landlord, a certificate stating (i)
that this Lease is unmodified and in full force and effect (or, if modified,
stating the nature of such modification and certifying that this Lease, as so
modified, is in full force and effect), (ii) the dates to which the Rent and
other charges are paid, (iii) that Tenant is in possession and paying Rent on a
current basis with no offsets, defenses or claims, (iv) that there are not any
uncured defaults on the part of Tenant and to Tenant’s knowledge, on the part
of Landlord, under the Lease (or specifying such defaults, if any are claimed)
and (v) such other matters as Landlord may reasonably require or that any
prospective purchaser, mortgagee or ground lessor may require.

 

 

25.           Transfer of Personal Property, Equipment and Trade Fixtures. 
In consideration of Tenant’s obligations and covenants hereunder,
Landlord hereby sells, assigns, transfers and conveys to Tenant all of its
right, title and interest in and to the personal property, equipment and trade
fixtures located on the Premises as of the Effective Date.  From and after the Effective Date, all
personal property, equipment and trade fixtures located on the Premises shall
be deemed the property of Tenant.  The
Parties have executed a Bill of Sale as of the date hereof regarding such
transfer.

 

26.           Hazardous
Materials. 
Prior to executing this Lease, Tenant has completed, executed and
delivered to Landlord a Hazardous Materials Disclosure Certificate (“Initial
Disclosure Certificate”) a fully completed copy of which is attached hereto
as Exhibit E and incorporated herein by this reference.  Tenant covenants, represents and warrants to
Landlord that the information on the Initial Disclosure Certificate is true and
correct and accurately describes all Hazardous Materials (as defined below)
which will be manufactured, treated, used, handled, transported or stored on or
about the Premises by Tenant or Tenant’s agents.  Tenant shall on each anniversary of the Commencement Date and at
such other times as Tenant desires to manufacture, treat, use, handle,
transport or store on or about the Premises new or additional Hazardous
Materials which were not listed on the Initial Disclosure Certificate, complete,
execute and deliver to Landlord an updated Disclosure Certificate (each, an “Updated
Disclosure Certificate”) describing the then current and proposed future
presence of Hazardous Materials on or about the Premises, which Updated
Disclosure Certificate shall be in the same format as that which is set forth
in Exhibit E or in such updated format as Landlord may require from time
to time.  Tenant shall deliver an
Updated Disclosure Certificate to Landlord not less than thirty (30) days prior
to the date Tenant intends to commence the manufacture, treatment, use,
handling, transportation or storage of new or additional Hazardous Materials on
or about the Premises, and Landlord shall have the right to approve or
disapprove such new or additional Hazardous Materials in its sole and absolute
discretion.  Tenant shall not allow the
presence of Hazardous Materials on or about the Premises except as described in
the Initial Disclosure Certificate or as otherwise approved by Landlord in
writing in accordance with this Paragraph  26, which approval
shall not be withheld if consistent with Landlord’s past practice on the
Premises.

 

Tenant shall not
cause or permit any Hazardous Material to be generated, produced, brought upon,
used, stored, treated or disposed of in or about the Premises by Tenant, its
agents, employees, contractors, sublessees or invitees without (a) the prior
written consent of Landlord, which consent shall not be unreasonably withheld,
and (b) complying with all applicable federal, state and local laws and
ordinances pertaining to the transportation, storage, use, treatment, handling,
manufacture or disposal of such Hazardous Materials, including but not limited
to obtaining and complying with proper licenses and permits (collectively,
“Environmental Requirements”).  Landlord
shall be entitled to take into account such other factors or facts as Landlord
may reasonably determine to be relevant in determining whether to grant or
withhold consent to Tenant’s proposed activity with respect to Hazardous Material.  In no event, however, shall Landlord be
required to consent to the installation or use of any underground storage
tanks.

 

If, during the
Term, the treatment, handling, manufacture, transportation, storage, use,
release or disposal of Hazardous Materials on the Premises results in the
contamination of

 

 

leasehold improvements (including buildings), equipment, soil or
surface or ground water or loss or damage to Person(s) or property, then Tenant
agrees to:  (a) notify Landlord
immediately of any contamination, claim of contamination, loss or damage, (b)
after consultation with the Landlord, clean up the contamination in full
compliance with all applicable statutes, regulations and standards, and (c)
indemnify, defend and hold Landlord harmless from and against any claims,
suits, causes of action, costs and fees, including attorney’s fees and costs
(all such losses, collectively, “Losses”), arising from or connected
with any such contamination, claim of contamination, loss or damage.  Tenant agrees to fully cooperate with
Landlord and provide such documents, affidavits and information as may be
requested by Landlord (a) to comply with any Environmental Requirements (as
defined below), (b) to comply with the request of any lender, purchaser, tenant,
or government agency and/or (c) for any other reason deemed necessary by
Landlord in its sole discretion.  Tenant
further shall:  (a) notify Landlord
promptly in the event of any spill or other release of any Hazardous Material
at, in, on, under or about the Premises which is required to be reported to a
governmental authority under any Environmental Requirements (as defined below),
(b) promptly forward to Landlord copies of any notices received by Tenant
relating to alleged violations of any Environmental Requirements, (c) promptly
pay when due any fine, penalty or assessment against Landlord, Tenant or the
Premises relating to any such spill or release or any violation of any
Environmental Requirements during the Term, and (d) indemnify, defend and hold
Landlord harmless from and against any and all Losses relating to or arising
from any such spill or release or any violation of an Environmental
Requirement.

 

If a lien is filed
against the Premises by any governmental authority resulting from the need to expend
or the actual expending of monies arising from an act or omission, whether
intentional or unintentional, of Tenant, its agents, employees or invitees or
for which Tenant is responsible, resulting in the releasing, spilling, leaking,
leaching, pumping, emitting, pouring, emptying or dumping of any Hazardous
Material into the waters or onto land located within or without the State where
the Premises is located, then Tenant shall, within thirty (30) days from the
date that Tenant is first given notice that such lien has been placed against
the Premises (or within such shorter period of time as may be specified by
Landlord if such governmental authority has commenced steps to cause the
Premises to be sold pursuant to such lien) either (a) pay the claim and remove
the lien, or (b) furnish a cash deposit, bond, or such other security with
respect thereto as is satisfactory in all respects to Landlord and is
sufficient to effect a complete discharge of such lien on the Premises.

 

Landlord shall
have the right, but not the obligation, without in any way limiting Landlord’s
other rights and remedies under this Lease to enter upon the Premises, or to
take such other actions as it deems necessary or advisable, to investigate,
clean up, remove or remediate any Hazardous Materials or contamination by
Hazardous Materials present on, in, at, under or emanating from the Premises or
the Building in violation of Tenant’s obligations under this Lease or under any
laws regulating Hazardous Materials. 
Notwithstanding any other provision of this Lease, Landlord shall have
the right, at its election, in its own name or as Tenant’s agent, to negotiate,
defend, approve and appeal, at Tenant’s expense, any action taken or order
issued by any governmental agency or authority with any governmental agency or
authority against Tenant, Landlord or the Premises relating to any Hazardous
Materials or under any related law or the occurrence of any event or existence
of any condition that would case a breach of any of the

 

 

covenants set forth in this Paragraph 26.  Prior to or promptly after the expiration or
termination of this Lease, Landlord may conduct or require an environmental
audit, assessment or investigation of the Premises by a qualified environmental
consultant.  Landlord and Tenant shall
equally share the reasonable costs of such an environmental audit and shall, at
its sole cost and expense, take all actions recommended in such audit to
remediate any environmental conditions. 
The provisions of this Paragraph 26 shall survive the expiration
or earlier termination of this Lease.

 

As used in this
Lease, the term “Hazardous Material” shall mean any flammable items,
explosives, radioactive materials, oil, hazardous or toxic substances, material
or waste, including any substances defined as or included in the definition of
“hazardous substances”, “hazardous wastes”, “hazardous materials” or “toxic
substances” now or subsequently regulated under any applicable federal, state
or local laws or regulations, including without limitation petroleum-based
products, asbestos, PCBs, mold, radioactive materials and similar compounds.

 

As used in this
Lease, the term “Environmental Requirements” shall mean all federal,
state, local and foreign statutes, regulations, ordinances and other provisions
having the force or effect of law, all judicial and administrative orders and
determinations, all contractual obligations and all common law concerning
public health and safety, worker health and safety, and pollution or protection
of the environment, including without limitation all those relating to the
presence, use, production, generation, handling, transportation, treatment,
storage, disposal, distribution, labeling, testing, processing, discharge,
release, threatened release, control, or cleanup of any Hazardous Materials,
each as amended and as in effect prior to, on, or after the date of this Lease.

 

27.           Certain Rights Reserved to Landlord.  Landlord
reserves the following rights:  (a) to
change the name or street address of the Building or the suite number of the
Premises; (b) to install, affix and maintain any and all signs on the exterior
or interior of the Building; (c) to make repairs, decorations, alterations,
additions, or improvements, whether structural or otherwise, in and about the
Building, and for such purposes to enter upon the Premises, temporarily close
doors, corridors and other areas in the Building and interrupt or temporarily
suspend services or use of common areas; (d) to install, use and maintain in
and through the Premises pipes, conduits, wires and ducts serving the Building,
provided that such installation, use and maintenance does not unreasonably
interfere with Tenant’s use of the Premises; (e) to approve or disapprove the
weight, size or location of heavy equipment in and about the Premises; and (f)
to take any other action which Landlord deems reasonable in connection with the
operation, maintenance or preservation of the Building.  The exercise of any such rights shall not be
deemed to constitute an eviction or disturbance of Tenant’s use or possession
of the Premises and shall not give rise to any claim for set-off or abatement
of Rent or any other claim.

 

28.           Confidentiality.  Each Party,
on behalf of itself and each of its Subsidiaries, agrees to hold, and to cause
its respective directors, officers, employees, agents, accountants, counsel and
other advisors and representatives to hold, in strict confidence, with at least
the same degree of care that applies to Landlord’s confidential and proprietary
information pursuant to policies in effect as of the Effective Date, all
information concerning the other and the other’s Subsidiaries

 

 

that is either in its
possession (including information in its possession prior to the Effective
Date) or furnished by the other or the other’s Subsidiaries or their respective
directors, officers, employees, agents, accountants, counsel and other advisors
and representatives at any time pursuant to this Lease, and shall not use any
such Information other than for such purposes as may be expressly permitted
hereunder or thereunder, except, in each case, to the extent that such
Information has been (i) in the public domain through no fault of such Party or
its Subsidiaries or any of their respective directors, officers, employees,
agents, accountants, counsel and other advisors and representatives; (ii) later
lawfully acquired from other sources by such Party (or any of its Subsidiaries)
which sources are not themselves bound by a confidentiality obligation; or
(iii) independently generated without reference to any proprietary or
confidential information of the other Party.

 

29.           Debarment
and Exclusion. 
Landlord represents and warrants that neither it, nor any of its
employees or agents working on Tenant’s behalf, has ever been, is currently, or
is the subject of a proceeding that could lead to that Party becoming, as
applicable, a Debarred Entity or Debarred Individual.  Landlord further covenants, represents and warrants that if,
during the Term, it, or any of its employees or agents working on Tenant’s
behalf, becomes or is the subject of any FDA investigation or debarment
proceeding that could lead to that Party becoming, as applicable, a Debarred
Entity or Debarred Individual, Landlord shall immediately notify Tenant and
reassign such employees such that they no longer work on Tenant’s behalf.  For purposes of this provision, the
following definitions shall apply:

 

(a)           A “Debarred Individual” is an individual who has been
debarred by the FDA pursuant to 21 U.S.C. §335a (a) or (b) from providing
services in any capacity to a Person that has an approved or pending drug
product application.

 

(b)           A “Debarred Entity” is a corporation, partnership or
association that has been debarred by the FDA pursuant to 21 U.S.C. §335a (a)
or (b) from submitting or assisting in the submission of any abbreviated drug
application, or a subsidiary or affiliate of a Debarred Entity.

 

30.           Miscellaneous.

 

A.            Time of
the Essence. 
Time is of the essence of this Lease and each and all of its provisions.

 

B.            Governing Law/Compliance with Laws.  This Lease
shall be governed by and construed and interpreted in accordance with the laws
of the State of Illinois irrespective of the choice of laws principles of the
State of Illinois, as to all matters, including matters of validity,
construction, effect, enforceability, performance and remedies.  Each Party shall comply with all applicable
laws, rules and regulations in the performance of its obligations under this
Lease.

 

C.            Lease
Modification. 
Should any mortgagee or ground lessor require a modification of this
Lease, which modification will not bring about any increased cost or expense to
Tenant or in any other way substantially change the rights and obligations of
Tenant hereunder, Tenant agrees that this Lease may be so modified.

 

 

D.            Alternative Dispute Resolution.  The Parties
acknowledge that, from time to time after the Effective Date, a controversy,
dispute or claim may arise relating to either Party’s rights or obligations
under this Lease.  The Parties agree
that any such controversy, dispute or claim (whether arising in contract, tort
or otherwise) arising out of or relating in any way to this Lease (shall be
resolved by the Alternative Dispute Resolution (“ADR”) provisions set
forth in Exhibit D attached hereto, the result of which shall be
binding upon the Parties.  Unless
otherwise agreed in writing, the Parties shall continue to provide services and
honor all other commitments under this Lease during the course of dispute
resolution pursuant to the provisions of Exhibit D with respect to all
matters subject to such dispute, controversy or claim.

 

E.             Independent
Contractors. 
It is understood that both Parties hereto are independent contractors
and engage in the operation of their own respective businesses and neither
Party hereto is to be considered the agent of the other Party for any purpose
whatsoever and neither Party has any authority to enter into any contract or
assume any obligation for the other Party or to make any warranty or
representation on behalf of the other Party.  Each Party shall be fully
responsible for its own employees, servants and agents, and the employees,
servants and agents of one Party shall not be deemed to be employees, servants
and agents of the other Party for any purpose whatsoever.

 

F.             Force
Majeure. 
Neither Party shall be deemed in default of this Lease to the extent
that any delay or failure in the performance of its obligations under this
Lease results from any cause beyond its reasonable control and without its
fault or negligence, such as acts of God, acts of civil, military or government
authority, embargoes, epidemics, war, riots, insurrections, acts of terrorism,
fires, explosions, earthquakes, floods, unusually severe weather conditions,
labor problems or unavailability of parts, or, in the case of computer systems,
any failure in electrical or air conditioning equipment.  In the event of any such excused delay, the
time for performance shall be extended for a period equal to the time lost by
reason of the delay.

 

G.            Limitations
on Liability. 
All obligations of Landlord under this Lease will be binding upon
Landlord only during the period of its ownership of the Premises and not
thereafter.  The term “Landlord” in this
Lease shall mean only the owner, for the time being of the Premises, and in the
event of the transfer by such owner of its interest in the Premises, such owner
shall thereupon be released and discharged from all obligations of Landlord
thereafter accruing, but such obligations shall be binding during the Term upon
each new owner for the duration of such owner’s ownership.  EXCEPT AS OTHERWISE SET FORTH IN PARAGRAPH
7J ABOVE, ANY LIABILITY OF LANDLORD UNDER THIS LEASE SHALL BE LIMITED
SOLELY TO ITS INTEREST IN THE PREMISES, AND IN NO EVENT SHALL ANY PERSONAL LIABILITY
BE ASSERTED AGAINST LANDLORD IN CONNECTION WITH THIS LEASE NOR SHALL ANY
RECOURSE BE HAD TO ANY OTHER PROPERTY OR ASSETS OF LANDLORD.  IN NO EVENT SHALL EITHER PARTY, ITS
SUBSIDIARIES OR ITS DIRECTORS, OFFICERS, EMPLOYEES OR AGENTS BE LIABLE TO THE
OTHER PARTY FOR INDIRECT, EXEMPLARY, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE
DAMAGES IN CONNECTION WITH THE PERFORMANCE OF THIS LEASE, EVEN IF THE PARTY HAS
BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, AND EACH PARTY HEREBY WAIVES
ON

 

 

BEHALF OF ITSELF AND ITS
SUBSIDIARIES ANY CLAIM FOR SUCH DAMAGES, INCLUDING ANY CLAIM FOR PROPERTY
DAMAGE OR LOST PROFITS, WHETHER ARISING IN CONTRACT, TORT OR OTHERWISE.

 

H.            Exclusion from Liability Limitation.  The
foregoing limitations on liability in Paragraph 30G. shall not apply
to:  either Party’s liability for
breaches of confidentiality under Paragraph 28 (Confidentiality).

 

31.           No
Real Estate Brokers. 
Landlord and Tenant each represent and warrant that it has had no
dealings with any real estate broker or agent in connection with the
negotiation of this Lease and that it knows of no real estate broker, agent or
finder which is or might be entitled to a commission or fee in connection with
the Lease.  If any claim for broker’s or
finder’s fees or commissions in connection with the Lease, Landlord shall
indemnify, hold harmless and defend Tenant from and against any and all
liability, claims, demands, damages and costs (including, without limitation,
reasonable attorneys’ fees and other litigation expenses) on account of such
claim if it shall be based upon any statement, representation or agreement
claimed to have been made by Landlord, and Tenant shall indemnify, hold
harmless and defend Landlord from and against any and all liability, claims,
demands, damages and costs (including, without limitation, reasonable
attorney’s fees and other litigation expenses) on account of such claim if it
shall be based upon any statement, representation or agreement claimed to have
been made by Tenant.

 

 

IN WITNESS WHEREOF, the Parties hereto have executed this Lease on the
date first above written.

 

	
   

  	
  Landlord:

  
	
   

  	
   

  
	
   

  	
  ABBOTT LABORATORIES

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Tenant:

  
	
   

  	
   

  
	
   

  	
  HOSPIRA, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:Exhibit 10.5

 

INFORMATION TECHNOLOGY AGREEMENT

 

THIS INFORMATION TECHNOLOGY AGREEMENT, dated as of April 29, 2004
and effective as of May 1, 2004 (the “Effective Date”), is by and between
ABBOTT LABORATORIES, an Illinois corporation (“Abbott”), and HOSPIRA, INC., a
Delaware corporation (“Hospira”).

 

R E C I T A L S:

 

WHEREAS, the board
of directors of Abbott has determined that it is appropriate and advisable to
separate Abbott’s core hospital products business from its other businesses;

 

WHEREAS, in order to
effectuate the foregoing, Abbott and Hospira have entered into a Separation and
Distribution Agreement dated as of April 12, 2004 (the “Separation and
Distribution Agreement”), which provides, among other things, subject to the
terms and conditions set forth therein, for the contribution to Hospira of
certain assets, the assumption by Hospira of certain liabilities and the
distribution of Hospira common stock to Abbott shareholders, and for the
execution and delivery of certain other agreements in order to facilitate and
provide for the foregoing;

 

WHEREAS, in order to
ensure an orderly transition under the Separation and Distribution Agreement it
will be necessary for each of the Parties (as defined herein) to cooperate to
provide for the separation of various information technology systems and
services that are currently shared between the Parties, are provided by Abbott
to Hospira or are planned to be implemented by both Parties; and

 

WHEREAS, the Parties
intend that all separation activities to be completed under this Agreement
shall be completed by the end of the two-year term of this Agreement.

 

NOW, THEREFORE, in
consideration of the mutual agreements, provisions and covenants contained in
this Agreement, and subject to and on the terms and conditions herein set
forth, the Parties hereby agree as follows:

 

Section 1.                                            DEFINITIONS.

 

For purposes of this Agreement, the following terms shall have the
following meanings:

 

“Abbott” has the meaning set forth in the Preamble.

 

“Abbott Assets” has the meaning set forth in the Separation and
Distribution Agreement.

 

“Abbott Business” means all businesses and operations (whether or not
such businesses or operations are or have been terminated, divested or
discontinued) conducted prior to the Effective Date by Abbott, the Abbott
Subsidiaries, Hospira and the Hospira Subsidiaries, in each case that are not
included in the Hospira Business.

 

 

“Abbott Indemnitee” has the meaning set forth in Section 7(c)(ii).

 

“Abbott Liabilities” has the meaning set forth in the Separation and
Distribution Agreement.

 

“Abbott Owned Materials” has the meaning set forth in Section 3(a)(i).

 

“ADR” has the meaning set forth in Section 7(k).

 

“Agreement” means this Information Technology Agreement and each of the
Schedules hereto.

 

“Ancillary Agreements” has the meaning set forth in the Separation and
Distribution Agreement.

 

“Business Entity” means any corporation, general or limited
partnership, trust, joint venture, unincorporated organization, limited
liability entity or other entity.

 

“Change of Control Event” has the meaning set forth in Section 7(o).

 

“Charges” has the meaning set forth in Section 2(d)(i).

 

“Consents” means any consents, waivers or approvals from, or
notification requirements to, any Third Parties.

 

“Derivative Work” means a work based on one or more preexisting works,
including a condensation, transformation, translation, modification, expansion
or adaptation that, if prepared without authorization of the owner of the
copyright of such preexisting work, would constitute a copyright infringement
under applicable law, but excluding the preexisting work.

 

“Developed Materials”  means
any Materials (including software), or any modifications, enhancements or
Derivative Works thereof, which (i) are jointly developed by or on behalf of
the Parties or any of their Subsidiaries in connection with or as part of the
Services and (ii) are not otherwise Abbott Owned Materials or Hospira Owned
Materials.

 

 “Effective Date” has the
meaning set forth in the Preamble.

 

“Expiration Date” has the meaning set forth in the Section 5(a).

 

“Governmental Authority” means any supranational, international,
national, federal, state, or local court, government, department, commission,
board, bureau, agency, official or other regulatory, administrative or
governmental authority, including the NYSE and any similar self-regulatory body
under applicable securities laws or regulations.

 

“Hospira” has the meaning set forth in the Preamble.

 

“Hospira Business” means the business and operations which are separated
from the Abbott Business pursuant to the Separation and Distribution Agreement.

 

2

 

“Hospira Indemnitee” has the meaning set forth in Section 7(c)(i).

 

“Hospira IT Agreement” means any IT Agreement which is held in the name
of Abbott or any Abbott Subsidiary, and which is used exclusively in connection
with, or relates solely to, the Hospira Business.

 

“Hospira Owned Materials” has the meaning set forth in Section 3(a)(ii).

 

“Indemnitee” means a Hospira Indemnitee or an Abbott Indemnitee.

 

“Information” means information, whether or not patentable or
copyrightable, in written, oral, electronic or other tangible or intangible
forms, including studies, reports, records, books, contracts, instruments,
surveys, discoveries, ideas, concepts, know-how, techniques, designs,
specifications, drawings, blueprints, diagrams, models, prototypes, samples,
flow charts, data, computer data, disks, diskettes, tapes, computer programs or
other software, marketing plans, customer names, communications by or to
attorneys (including attorney-client privileged communications), memos and
other materials prepared by attorneys or under their direction (including
attorney work product), and other technical, financial, employee or business
information or data.

 

“Intellectual Property License Agreements” means the Intellectual
Property License Agreements entered into prior to the Effective Date by and
between the Parties pursuant to the Separation and Distribution Agreement.

 

“IT Agreement” means any software license or Third Party service
agreement that is: (a) used by either Party or its Subsidiaries (i) to provide
Services or Materials under this Agreement; or (ii) used to provide any
information technology services under the TSA; or (b) required in connection
with the operation of the information technology systems and services of the
Hospira Business.

 

“Materials” shall mean all computing, networking, telecommunications
and other equipment (firmware and hardware); all software programs and
programming (and all modifications, replacements, upgrades, enhancements,
documentation, materials and media related thereto), including all machine
readable and object code, and all source code, utilities, tools and validation
packages; and all other literary works, other works of authorship,
specifications, design documents and analyses, processes, methodologies,
programs, program listings, programming tools, user manuals, documentation,
reports, drawings, databases, machine readable text and files, data and similar
items.

 

“Month End Rate” means for any currency other than United States
dollars, the official average monthly rates used by Abbott for conversion of
its monthly financial statements, known as the average B.2.0 rate.  The month end B.2.0 rate is determined by
taking the numbers from the 9:00 a.m. (Central Time) Reuters screen at the
second to last Abbott Park, Illinois business day of each calendar month (with
the exception of November, when the rate is taken on the last such business
day).  For the Euro, British Pound,
Australian Dollar and New Zealand Dollar, the bid rate is used.  For all other currencies, the ask price is
used.  An average monthly rate is
determined by taking the simple average of the prior month book rate and the
current month book rate.  If the
exchange rates available locally are not reflected on the Reuters screen,
Abbott may

 

3

 

choose to approve a deviation allowing the country to report rates
directly; provided such deviations are signed and in place in accordance with
the B.2.0 policy.

 

“NYSE” means The New York Stock Exchange, Inc.

 

“Other IT Agreement” means any IT Agreement that is not a Hospira IT
Agreement or a Shared IT Agreement.

 

“Parties” means the parties to this Agreement.  “Party” means each Party to this Agreement.

 

“Person” means any (i) individual; (ii) Business Entity; or (iii)
Governmental Authority.

 

“Prime Rate” means the rate which Citibank N.A. (or its successor or
another major money center commercial bank agreed to by the Parties) announces
as its prime lending rate, as in effect from time to time.

 

“Project Executive” has the meaning set forth in Section 7(e).

 

“Separation and Distribution Agreement” has the meaning set forth in
the Recitals.

 

“Separation Project” means each individual project that is described in
the Separation Projects Plan, and that is or will be described in greater
detail in one or more Work Schedules.

 

“Separation Projects Plan” means the high level description of
information technology separation projects and the associated timeline for
completing those projects that the Parties will undertake pursuant to this
Agreement to accomplish the separation of the information technology systems
and services, as such initial list is set forth in Schedule A, and
as the same may be amended from time to time.

 

“Services” has the meaning set forth in Section 2(a).

 

“Shared IT Agreement” means any IT Agreement that is held in the name
of Abbott or any Abbott Subsidiary, which is used in connection with the Abbott
Business and the Hospira Business.  A
list of Shared IT Agreements identified by the Parties to date is set forth in Schedule C.

 

“Subsidiary” of any Party means another Business Entity that is
directly or indirectly controlled by such Party.  As used herein, “control” means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and
policies of such Business Entity, whether through ownership of voting
securities or other interests, by contract or otherwise.  For the avoidance of doubt, TAP
Pharmaceutical Products Inc., TAP Finance Inc. and TAP Pharmaceuticals Inc. are
not Subsidiaries of Abbott as that term is used in this Agreement.

 

“Taxes” means all forms of taxation or duties imposed, or required to
be collected or withheld, together with any related interest, penalties or
other additional amounts.

 

4

 

“Third Party” means any Person other than Abbott, any Abbott Subsidiary,
Hospira and any Hospira Subsidiary.

 

“Third Party Claim” has the meaning set forth in Section 7(c)(vii).

 

“TSA” has the meaning set forth in Section 2(b).

 

“U.S.” or “United States” means the United States of America, including
each of the 50 states thereof and the District of Columbia, but excluding
Puerto Rico and all other territories and possessions.

 

“Work Schedule” means each document in the form set forth in Schedule B
that is executed by the Parties pursuant to this Agreement, including each
applicable “RFSS”, “Contract” or similar document referenced on such Work
Schedule, that details the work effort and further describes the Services to be
performed by Abbott and/or Hospira in connection with a particular Separation
Project(s).

 

Section 2.                                            SERVICES.

 

(a)                                  SERVICES.  Each of the Parties agrees to provide, or
cause its respective Subsidiaries to provide, the applicable services
(“Services”) set forth in any Work Schedule to Abbott or Hospira,
respectively, and/or any of their Subsidiaries as designated in the Work
Schedule.  Each of the Parties further
agrees to use good faith in negotiating any Work Schedules which are not
completed as of the Effective Date. 
This Agreement is a master agreement. 
Each of the Parties, respectively, shall be responsible and liable for
all the obligations under this Agreement of each of their respective
Subsidiaries that performs Services hereunder.

 

(b)                                 TRANSITION
SERVICES AGREEMENTS AND CONFLICTS.  The
Parties have entered into that certain U.S. Transition Services Agreement and
that certain Ex-U.S. Transition Services Agreement (collectively, the “TSA”)
dated as of the same date as this Agreement. 
The TSA is intended to cover all services described therein that the
Parties will require to continue to operate their respective businesses after
the Effective Date, including, without limitation, information technology
services.  This Agreement is intended to
cover all additional work effort that must be performed, and Materials that
must be developed or procured, to separate the information technology systems
and services that (i) are currently shared between the Parties and/or their
respective Subsidiaries, (ii) are currently provided by one of the Parties or
its Subsidiary to the other Party or one or more of its Subsidiaries under the
TSA, or (iii) are to be implemented by mutual agreement of the Parties.  If there is a conflict regarding Services
provided under this Agreement, and similar services described in the TSA, this
Agreement shall govern and control over such Services.  If there is a conflict between the
provisions of this Agreement and those of the Separation and Distribution
Agreement, this Agreement shall govern and control with respect to the subject
matter addressed in this Agreement.  In
addition, if there is a conflict between this Agreement and any Intellectual
Property License Agreement, the Intellectual Property License Agreement shall
govern and control solely with respect to the subject matter of such
Intellectual Property License Agreement.

 

5

 

(c)                                  PERFORMANCE
OF SERVICES.

 

(i)                                     Each
of the Parties shall, and shall cause its Subsidiaries to, perform its duties
and responsibilities hereunder in good faith and in a timely manner.  Neither Abbott nor Hospira, nor any of their
respective Subsidiaries, shall be liable or held accountable, in damages or
otherwise, for any error of judgment or any mistake of fact or law or for
anything that Abbott or Hospira, or any of their respective Subsidiaries, does
or refrains from doing in good faith, except in the case of their gross
negligence or willful misconduct.

 

(ii)                                  Nothing
in this Agreement shall require either Party or its Subsidiaries to perform or
cause to be performed any Service in a manner that would constitute a violation
of applicable law.

 

(iii)                               (A)
Neither Party nor any of its Subsidiaries will be required to perform or to
cause to be performed any of the Services for the benefit of any Third Party or
any other Person other than the other Party under this Agreement, and its
Subsidiaries, and (B) EXCEPT AS EXPRESSLY PROVIDED IN AN APPLICABLE WORK
SCHEDULE, EACH PARTY ACKNOWLEDGES AND AGREES THAT ALL SERVICES ARE PROVIDED ON
AN “AS-IS” BASIS, AND THAT EACH PARTY MAKES NO WARRANTIES, EXPRESS OR IMPLIED,
WITH RESPECT TO THE SERVICES, AND HEREBY DISCLAIMS ANY REPRESENTATION OR
WARRANTY OF MERCHANTABILITY, FITNESS FOR ANY PARTICULAR PURPOSE,
NON-INFRINGEMENT OR ANY OTHER WARRANTY WHATSOEVER.

 

(d)                                 CHARGES
FOR SERVICES AND PERFORMANCE OF SEPARATION PROJECTS.

 

(i)                                     Estimated
Charges.  Each Work Schedule shall
specify the Party that shall bear the costs and expenses of the Services,
including the acquisition, procurement, leasing or licensing of Materials, and
all other costs and expenses associated with a Party completing a particular
Separation Project (all such costs and expenses are collectively referred to as
the “Charges”).  The Charges for
completing Separation Projects shall be borne by the Parties according to the
terms set forth in Schedule D; provided, that the Charges shall
exclude any and all amounts for services performed by a Third Party that is not
an agent, supplier, subcontractor or independent contractor of the Party
providing the Services under such Work Schedule.  The Charges set forth in a Work Schedule shall be a good
faith estimate of the charges for the Services covered by that Work Schedule,
and shall neither be binding on the Party providing such estimate nor convert
the Work Schedule into a fixed-price contract.  Any such estimate is for informational purposes only, and the
actual fees payable for any Services may be higher or lower than that estimate,
with such higher amounts, if applicable, to be paid by the Party responsible
for such Charges under the applicable Work Schedule.   The Charges shall be calculated in the local currency of the
Party providing the Services and shall be translated into U.S. Dollars using
the Month End Rate for such currency for the applicable month.   In the event that a Local Closing (as
defined under the applicable Transition Marketing and Distribution Services
Agreement) occurs for any country, but Services are still being provided for
that country under this Agreement, the Parties will negotiate in good faith
appropriate modifications to the Charges for such Services.

 

6

 

(ii)                                  Reporting
Obligations.  The Project Executive
or their designee shall be responsible for overseeing the Separation Projects
and the progress of the Services in light of the estimated Charges.  As described in more detail in each
applicable Work Schedule, each Party shall report to the other Party regarding
the status of each Separation Project in the manner and with the frequency
described in the applicable Work Schedule (including the identification of
any known overages in the estimated Charges and an updated estimate to complete
such Separation Project), and, in any event, no less frequently than monthly
during the term of this Agreement. 
Unless otherwise agreed in writing, the Parties shall provide such
reporting using the form of status report attached hereto as Schedule G.

 

(e)                                  CHANGE
CONTROL PROCEDURES.  During the term of
this Agreement, Abbott and/or Hospira may desire a change in the scope of the
effort, including modifying, updating and/or refining any Work Schedule or
the Separation Projects Plan.  Requests
for all changes shall be made in writing and delivered to the appropriate
Project Executive.  The Project
Executives from both Parties shall review the proposed change and: (i) approve
it; (ii) return it with a request for more detail or information; or (iii)
reject it.  The Project Executives shall
agree on any Charges for such change, including the charges for investigating
such change if applicable.  If the
change is authorized, the Parties’ Project Executives shall so indicate in
writing, which writing shall constitute approval for the change and the
applicable Charges.  The writing shall
also indicate the effect that the change will have on the other terms and
conditions of the applicable Work Schedule(s). 
Except as may otherwise be agreed in writing, the Party requesting a
change shall compensate the other party for investigating and preparing any
proposed addendum or change to a Work Schedule.

 

(f)                                    TRANSITIONAL
NATURE OF SERVICES.  The Parties
acknowledge the transitional nature of the Services and agree to cooperate in
good faith and to use commercially reasonable efforts to effectuate a smooth
transition and completion of the Separation Projects.

 

(g)                                 COOPERATION.  In the event that (i) there is
nonperformance of any Service as a result of an event described in Section 7(d),
or (ii) the provision of a Service would violate applicable law, the Parties
agree to work together in good faith to arrange for an alternative means by which
the Separation Project may be accomplished.

 

(h)                                 USE
OF THIRD PARTIES.

 

(i)                                     THIRD
PARTIES USED TO PROVIDE THE SERVICES. 
Either Party may perform its obligations herein through its Subsidiaries
or through agents, suppliers, subcontractors or independent contractors of such
Party, or of its Subsidiaries; provided, that each such agent, supplier,
subcontractor or independent contractor (and the individual employees of such
Persons) used by a Party shall be subject to the reasonable prior approval of
the other Party.  The Parties hereby
approve the use of any of the suppliers listed in Schedule E;
provided, however, that each Party reserves the right to reasonably approve or
reject individual employees of such suppliers. 
In addition, if in connection with the provision of Services or
Materials a Party uses any agent, supplier, subcontractor or independent
contractor who has been fired, dismissed or relieved of its obligations by the
other Party or its Subsidiary due to poor performance or other cause, the other
Party shall be entitled to cause the hiring Party to promptly remove and
replace such agent, supplier subcontractor or independent contractor.

 

7

 

(ii)                                  THIRD
PARTIES USED FOR MATTERS OUTSIDE THE SCOPE OF THE SERVICES.  Each Party shall also have the right to
engage agents, suppliers, subcontractors or independent contractors to provide
services that are outside the scope of the Services, provided that such Third Parties
will not, either individually or in connection with one or more other agents,
suppliers, subcontractors or independent contractors (including the Third
Parties described in Section 2(h)(i)) materially adversely affect
the Services without the other Party’s reasonable consent; and further,
provided that the engaging Party shall be solely responsible for all such
agents, suppliers, subcontractors or independent contractors.

 

(iii)                               TERMS
APPLICABLE TO ALL THIRD PARTIES USED BY A PARTY.  Each Party shall cooperate with and work in good faith with the
agents, suppliers, subcontractors and independent contractors engaged by the
other Party in connection herewith or in connection with related services that
require the cooperation of such Party. 
Such cooperation may include providing reasonable access to the
facilities, systems, equipment and/or software required by the other Party to
provide the Services or such related services, solely to the extent necessary
for such agents, suppliers, subcontractors and independent contractors to
perform the work assigned to them.  The
engaging Party shall cause all such agents, suppliers, subcontractors and
independent contractors to comply with the other Party’s security and
confidentiality requirements. 
Notwithstanding anything in this Agreement to the contrary, a Party
shall not be relieved of its obligations under this Agreement by use of any
Subsidiaries, agents, suppliers, subcontractors or independent contractors.

 

(i)                                     SECURITY
PROCEDURES.  Each Party’s respective
security administration groups shall, subject to the reasonable approval of the
other Party, establish and maintain environmental, safety and facility
procedures, data security procedures and other safeguards against the
destruction, loss, unauthorized access or alteration of systems or Materials of
the other Party which are (i) no less rigorous than those maintained by a Party
for its own information of a similar nature, and (ii) adequate to meet the
requirements of the other Party’s 
security policies and applicable law. 
In the event a Party discovers or is notified of a breach or potential
breach of security relating to systems or Materials of the other Party, such
Party will expeditiously under the circumstances notify the other Party, and
will cooperate in the investigation and remediation of the effects of such
breach or potential breach of security.

 

(j)                                     CONSENTS.

 

(i)                                     Hospira
IT Agreements.  Subject to the
Parties obtaining any required Consents, Abbott or the applicable Abbott
Subsidiary shall assign to Hospira or the applicable Hospira Subsidiary any
Hospira IT Agreement.  The assignment
shall be subject to the terms of the Separation and Distribution Agreement, and
the rights and obligations under such IT Agreement shall be Hospira Assets and
Hospira Liabilities and, if applicable, Delayed Transfer Assets and Delayed
Transfer Liabilities, as such terms are defined in the Separation and
Distribution Agreement.  The costs of
obtaining any required Consent in connection with the assignment of any Hospira
IT Agreement shall be borne solely by Hospira. 
If, despite using their commercially reasonable efforts, the Parties are
unable to obtain a Consent in connection with a Hospira IT Agreement, then,
unless and until such Consent is obtained, the Parties shall use their
commercially reasonable efforts to use mutually acceptable alternative
approaches to provide the Services or to deliver substantially similar benefits
at the sole cost and expense of Hospira.

 

8

 

(ii)                                  Shared
IT Agreements.  Subject to the
Parties obtaining any required Consents, Abbott or the applicable Abbott
Subsidiary shall assign to Hospira or the applicable Hospira Subsidiary that
portion of any Shared IT Agreement that relates to the Hospira Business.  The partial assignment shall be subject to
the terms of the Separation and Distribution Agreement, and the rights and
obligations under the assigned portion of such IT Agreement shall be Hospira
Assets and Hospira Liabilities and, if applicable, Delayed Transfer Assets and
Delayed Transfer Liabilities, as such terms are defined in the Separation and
Distribution Agreement.  If, despite
using their commercially reasonable efforts, the Parties are unable to obtain a
Consent in connection with a Shared IT Agreement, then, unless and until such
Consent is obtained, the Parties shall use their commercially reasonable
efforts to use mutually acceptable alternative approaches to provide the
Services or to deliver substantially similar benefits at the sole cost and
expense of Hospira.  The Parties shall
cooperate in obtaining Consents in connection with Shared IT Agreements in a
manner which is substantially similar to such Parties’ efforts during the two
month period prior to the Effective Date (“Assignment Efforts”).  Notwithstanding the foregoing in this Section 2(j)(ii),
if the partial assignment of a Shared IT Agreement to Hospira or a Hospira
Subsidiary will require a transfer fee to a Third Party (a “Third Party
Payment”), then the Parties will use Assignment Efforts to effect the partial
assignment and make the Third Party Payment; provided that Abbott shall be
responsible for such Third Party Payment only if such partial assignment is
effected prior to July 1, 2004 and Hospira shall be responsible for such
Third Party Payment if such partial assignment is effected after June 30,
2004.  The use of the term “Assignment
Efforts” in the previous sentence shall not be deemed to limit Abbott’s
responsibility for making Third Party Payments from the Effective Time through
June 30, 2004.

 

(iii)                               The
Parties recognize that the ultimate resolution of assignments of Shared IT
Agreements will require the agreement of three (3) parties (i.e., the Third
Party, Abbott and Hospira) regarding the number of licenses to be assigned, and
that, as of the Effective Date, the number of licenses which Abbott has and
which Hospira requires is unknown. 
Accordingly, the Parties agree that the ultimate division of licenses
between them shall be fair and equitable based upon their usage of the
Effective Date.  The Parties agree to
use Assignment Efforts and work in good faith to assign the licenses in a
timely manner as the number of licenses becomes known, or as the license
assignments  become critical path
projects for Hospira.

 

Section 3.                                            OWNERSHIP AND LICENSE RIGHTS IN MATERIALS.

 

(a)                                  OWNED
MATERIALS.

 

(i)                                     Abbott
shall be the sole and exclusive owner of Materials which are used in connection
with the Services and are owned by Abbott, or licensed from Third Parties by
Abbott, or any of its Subsidiaries, including all enhancements and Derivative
Works of such Materials, including United States and foreign intellectual
property rights in such Materials and shall retain all of Abbott’s, its
Subsidiaries’ and Third Party licensors’ rights in such Materials (all such owned,
licensed, developed and provided Materials, “Abbott Owned Materials”). Subject
to the terms of any Consents, Abbott grants to Hospira, its Subsidiaries and
their contractors and agents a non-exclusive, non-transferable, worldwide,
limited right and license to use, execute, reproduce, display, perform, modify
and distribute the Abbott Owned Materials for the sole purpose of providing
and/or receiving the Services during the term of this Agreement;

 

9

 

provided, that this license does not give
Hospira and its Subsidiaries, or their contractors or agents, the right, and
Hospira and its Subsidiaries, and their contractors and agents, are not
authorized, to sublicense such Materials or use them for the benefit of other
customers or for any other purpose without Abbott’s prior written consent.  Abbott may, in its sole discretion and upon
such terms and at such prices as the Parties may agree, grant Hospira a license
to use the Abbott Owned Materials for other purposes and to sublicense such
Materials.

 

(ii)                                  Hospira
shall be the sole and exclusive owner of Materials which are used in connection
with the Services and are owned by Hospira, or licensed from Third Parties by
Hospira, or any of its Subsidiaries, including all enhancements and Derivative
Works of such Materials, including United States and foreign intellectual
property rights in such Materials and shall retain all of Hospira’s, its
Subsidiaries’ and Third Party licensors’ rights in such Materials (all such
owned, licensed, developed and provided Materials, “Hospira Owned
Materials”).  Subject to the terms of
any Consents, Hospira grants to Abbott, its Subsidiaries and their contractors
and agents a non-exclusive, non-transferable, worldwide, limited right and
license to use, execute, reproduce, display, perform, modify and distribute the
Hospira Owned Materials for the sole purpose of providing and/or receiving the
Services during the term of  this
Agreement; provided, that this license does not give Abbott and its
Subsidiaries or their contractors or agents, the right, and Abbott and its
Subsidiaries, and their contractors and agents, are not authorized, to
sublicense such Materials or use them for the benefit of other customers or for
any other purpose without Hospira’s prior written consent.  Hospira may, in its sole discretion and upon
such terms and at such prices as the Parties may agree, grant Abbott a license
to use the Hospira Owned Materials for other purposes and to sublicense such
Materials.

 

(b)                                 DEVELOPED
MATERIALS.

 

(i)                                     Ownership.  The Parties shall jointly own all
intellectual property rights in all Developed Materials.  The Parties will, without limitation, retain
the right to make, have made, use, lease, import, offer for sale, or sell and
practice methods used in the creation or provision of products or services that
incorporate the Developed Materials to the extent that such actions do not
infringe upon the intellectual property rights of  the other Party.  Each
Party shall retain the right to grant non-exclusive licenses to any
intellectual property right in the Developed Materials without any payment or
accounting to the other Party.

 

(ii)                                  Cost
Sharing of Developed Materials. 
Each Party agrees to pay one-half (1/2) the costs associated with
obtaining and perfecting any intellectual property rights in the Developed
Materials.  If, within ninety (90) days
of receiving notice from the other Party of payments made by the other Party
associated with obtaining and perfecting intellectual property rights in the
subject Developed Materials in a particular jurisdiction, a Party subsequently
fails to provide its share of the costs, it will promptly assign, transfer and
convey to the other Party any and all intellectual property rights in the
subject Developed Materials, and such assignment of rights shall be the paying
Party’s sole and exclusive remedy for the assigning Party’s exercise of its
option not to pay one-half (1⁄2) of the costs of obtaining or perfecting any such
rights in the Developed Materials.  The
assigning Party shall deliver to the other Party, upon request therefor, such
documentation and assignments of interest as may be necessary to evidence its
ownership and enforce its interests in the assigned rights.  In any event, both Parties agree, at their
own

 

10

 

expense, to cooperate fully with the other Party in obtaining and
perfecting intellectual property rights in the Developed Materials, or in
assisting in such efforts.

 

(iii)                               Embedded
Materials.  To the extent that
Abbott Owned Materials or Hospira Owned Materials are embedded in any Developed
Materials by the owner of such Materials, the owner of such Materials shall not
be deemed to have assigned its intellectual property rights in such owned
Materials to the other Party, but subject to the terms and restrictions of any
Consent, the owner of such embedded Materials hereby grants to the other Party
and its Subsidiaries a worldwide, perpetual, irrevocable, non-exclusive, fully
paid-up license, with the right to grant sublicenses, to use, execute,
reproduce, display, perform, modify, enhance, distribute and create Derivative
Works of such embedded Materials for the benefit and use of the other Party and
its Subsidiaries for so long as such Materials remain embedded in such
Developed Materials.  Notwithstanding
the foregoing, neither Party shall embed any Abbott Owned Materials or Hospira
Owned Materials into Developed Materials without the express written agreement
of both Parties to do so, as set forth in the applicable Work Schedule.  In addition, should either Party incorporate
into Developed Materials any intellectual property subject to Third Party
patent, copyright or license rights, any ownership or license rights granted
herein with respect to such Materials shall be limited by and subject to any
such patents, copyrights or license rights; provided that, prior to
incorporating any such intellectual property in any Materials, the Party
incorporating such intellectual property in the Materials has disclosed this
fact and obtained the prior written approval of the other Party and has
obtained any Consents.

 

(iv)                              Source
Code and Documentation.  If either
Party requests that the source code for particular Materials be placed in
escrow for the benefit of the requesting Party, then the Parties shall
cooperate in good faith to establish such source code escrow arrangements on
terms and conditions that shall be reasonably acceptable to both Parties.

 

(c)                                  GENERAL
RIGHTS AND OBLIGATIONS REGARDING MATERIALS.

 

(i)                                     Copyright
Legends. 
Each Party agrees to reproduce copyright legends which appear
on any portion of the Materials which may be owned by the other Party or Third
Parties.

 

(ii)                                  No
Implied Licenses.  Except as
expressly specified in this Agreement, nothing in this Agreement shall be
deemed to grant to one Party, by implication, estoppel or otherwise, license
rights, ownership rights or any other intellectual property rights in any
Materials owned by the other Party or any Subsidiary of the other Party.

 

(iii)                               Residuals.  Nothing in this Agreement shall restrict any
employee or representative of a Party from using general ideas, concepts or
know-how relating to the Services or Materials that are retained solely in the
unaided memory of such employee or representative after performing the
obligations of a Party under this Agreement, except to the extent that such use
infringes upon any patent, copyright or other intellectual property right of a
Party or its Subsidiaries; provided, however, that this Section shall not
be deemed to limit either Party’s obligations under this Agreement with respect
to the disclosure or use of confidential Information or Materials of the other
Party.  An individual’s memory is
unaided if the individual

 

11

 

has not intentionally memorized the confidential Information or subject
Materials for the purpose of retaining and subsequently using or disclosing it.

 

(iv)                              Required
Consents.  Subject to Section 2(j) above, each Party shall, at its own expense, use
commercially reasonable efforts to obtain all Consents necessary in connection
with (i) in the case of Abbott, all Abbott Owned Materials, and (ii) in the
case of Hospira, all Hospira Owned Materials. 
Each of the Parties will reasonably cooperate with the other in
obtaining such Consents.

 

Section 4.                                            BILLING; TAXES.

 

(a)                                  PROCEDURE.  Each Work Schedule shall set forth the
types of, and where possible, the amount of, Charges that each Party shall be
financially responsible for in connection with the Services and the Materials
to be developed, procured or provided pursuant to a Work Schedule.  Where Charges are to be paid to a Third
Party for Services or Materials under a Work Schedule, the Party listed as the
responsible Party under the Work Schedule shall pay such Charges directly
to the Third Party.  Where Charges are
to be paid to the other Party, the Party who is entitled to reimbursement for
Services or other Charges pursuant to a Work Schedule shall issue an
invoice detailing such charges to the other Party.  Amounts payable pursuant to the terms of this Agreement shall be
paid to the invoicing Party on a monthly basis, which amounts shall be due
within thirty (30) days after the date of invoice.  All amounts due and payable hereunder shall be invoiced and paid
in U.S. dollars.

 

(b)                                 LATE
PAYMENTS.  Charges not paid when due
shall bear interest at a rate per annum equal to the Prime Rate plus two
percent (2%).

 

(c)                                  TAXES.  The Party who is primarily responsible for
payment for Charges under a particular Work Schedule shall pay any and all
Taxes incurred in connection with the Services under that Work Schedule,
including all sales, use, value-added and similar Taxes, but excluding Taxes
based on the other Party’s net income. 
Each Party shall be responsible for all sales, service, value-added,
lease, use, personal property, excise, consumption, and other taxes and duties,
including VAT, payable by such Party on any goods or services used or consumed
by such Party in providing Services where the tax is imposed on such Party’s
acquisition or use of such goods or services.

 

(d)                                 NO
SET-OFF.  The obligation to pay Charges
or to make any other required payments under this Agreement shall not be
subject to any right of offset, set-off, deduction or counterclaim, however
arising.

 

Section 5.                                            TERM; TERMINATION OF WORK SCHEDULES; TRANSFER
ASSISTANCE.

 

(a)                                  TERM.  This Agreement will expire two (2) years
after the Effective Date (the “Expiration Date”).  In the event that, despite commercially reasonable efforts by
both Parties, there are uncompleted Work Orders related to quality control
systems and other systems subject to regulatory review at the Expiration Date,
the Party receiving the Services may elect to extend the term of this Agreement
with respect to those Work Orders to the extent necessary to complete those
Work Orders as long as that Party continues to use commercially reasonable

 

12

 

efforts to complete those Work Orders. 
In no event, however, shall any such extension exceed an additional two
(2) years.  No later than three (3)
months prior to the Expiration Date, the Parties shall meet and confer to
discuss the status of all uncompleted Work Schedules and, where feasible,
develop a plan to complete such Work Schedule on or before the Expiration
Date.

 

(b)                                 TERMINATION
OF WORK SCHEDULES.

 

(i)                                     Termination
for Convenience.  Upon receipt by
the other Party of at least thirty (30) days prior written notice, either Party
may terminate a Work Schedule without the consent of the other Party
solely for the purpose of transferring the control and responsibility for the
Services under such Work Schedule to the terminating Party; provided, that
(A) the terminating Party shall be solely responsible for completing such Work
Schedule during the term of this Agreement, and (B) upon receipt of such
notice, the terminated Party shall be released from all responsibility in
connection with the terminated Work Schedule, except as provided in Section 5(b)(ii).

 

(ii)                                  Transfer
Assistance.  Upon receipt of a
notice to terminate a Work Schedule pursuant to Section 5(b)(i),
each Party shall provide to the other Party such assistance as is reasonably
necessary to permit the orderly transfer of the Services to be performed under
such Work Schedule to the terminating Party, including providing
reasonable access to any facilities, systems, equipment and/or software being
used by the other Party to provide the Services under the terminated Work
Schedule; provided, that the terminating Party shall comply with the other
Party’s security and confidentiality requirements in connection with such
access.

 

Section 6.                                            CONFIDENTIALITY; PROTECTIVE ARRANGEMENTS.

 

(a)                                  CONFIDENTIALITY
OBLIGATIONS.  Subject to Section 6(c),
Abbott, on behalf of itself and each Abbott Subsidiary, and Hospira, on behalf
of itself and each Hospira Subsidiary, agrees to hold, and to cause its
respective directors, officers, employees, agents, accountants, counsel and
other advisors and representatives to hold, in strict confidence, with at least
the same degree of care that applies to Abbott’s confidential and proprietary
information pursuant to policies in effect as of the Effective Date, all
Information and Materials concerning the other (or its business) and the
other’s Subsidiaries (or their respective businesses) that is either in its
possession (including Information and Materials in its possession prior to the
Effective Date) or furnished by the other or the other’s Subsidiaries or their
respective directors, officers, employees, agents, accountants, counsel and
other advisors and representatives at any time pursuant to this Agreement, and
shall not use any such Information or Materials other than for such purposes as
may be expressly permitted hereunder, except, in each case, to the extent that
such Information or Materials has been (i) in the public domain through no
fault of such Party or its Subsidiaries or any of their respective directors,
officers, employees, agents, accountants, counsel and other advisors and
representatives; (ii) later lawfully acquired from other sources by such Party
(or any of its Subsidiaries) which sources are not themselves bound by a
confidentiality obligation; or (iii) independently generated without reference
to any proprietary or confidential Information or Materials of the other Party.

 

(b)                                 NO
RELEASE, RETURN OR DESTRUCTION.  Each
Party agrees not to release or disclose, or permit to be released or disclosed,
any such Information or Materials to any other

 

13

 

Person, except its directors, officers, employees, agents, accountants,
counsel, lenders, investors and other advisors and representatives who need to
know such Information or Materials, and except in compliance with Section 6(c).  Without limiting the foregoing, when any
Information or Materials furnished by the other Party after the Effective Date
pursuant to this Agreement is no longer needed for the purposes contemplated by
this Agreement, each Party shall, at such Party’s option, promptly after
receiving a written request from the other Party either return to the other
Party all such Information and Materials in a tangible form (including all
copies thereof and all notes, extracts or summaries based thereon) or certify
to the other Party that it has destroyed such Information and Materials (and
such copies thereof and such notes, extracts or summaries based thereon).

 

(c)                                  PROTECTIVE
ARRANGEMENTS.  In the event that either
Party or any of its Subsidiaries either determines on the advice of its counsel
that it is required to disclose any Information or Materials pursuant to
applicable law or the rules or regulations of any Governmental Authority or
receives any demand under lawful process or from any Governmental Authority to
disclose or provide Information or Materials of any other Party that is subject
to the confidentiality provisions hereof, such Party shall notify the other
Party prior to disclosing or providing such Information and Materials and shall
cooperate at the expense of the requesting Party in seeking any reasonable
protective arrangements requested by such other Party.  Subject to the foregoing, the Party that
received such request, or its Subsidiaries, may thereafter disclose or provide
Information and Materials to the extent required by such law (as so advised by
counsel) or by lawful process or such Governmental Authority.

 

Section 7.                                            MISCELLANEOUS.

 

(a)                                  MUTUAL
COOPERATION.  The Parties and their
respective Subsidiaries shall cooperate with each other in connection with the
performance of the Services hereunder and the completion of the Separation
Projects, including producing on a timely basis all Information and Materials
that is reasonably requested with respect to the performance of Services and the
completion of the Separation Projects, by the end of the term of this
Agreement; provided, however, that such cooperation shall not unreasonably
disrupt the normal operations of the Parties and their respective Subsidiaries.

 

(b)                                 LIMITATIONS
ON LIABILITY.

 

(i)                                     FOR
EACH TWELVE (12) MONTH PERIOD DURING WHICH THIS AGREEMENT IS IN EFFECT, THE
FIRST SUCH PERIOD COMMENCING ON THE EFFECTIVE DATE AND THE SECOND (AND ANY
SUBSEQUENT PERIODS) COMMENCING ON EACH ANNUAL ANNIVERSARY THEREOF, THE MAXIMUM
LIABILITY OF EACH PARTY AND ITS SUBSIDIARIES TO, AND THE SOLE REMEDY OF, EACH
PARTY AND ANY OF ITS SUBSIDIARIES WITH RESPECT TO ANY AND ALL CLAIMS ARISING
UNDER OR IN CONNECTION WITH THIS AGREEMENT, REGARDLESS OF THE THEORY UPON WHICH
THE LIABILITY IS PREMISED, SHALL NOT EXCEED THE PROFITS OF THE PARTY PROVIDING
THE SERVICES HEREUNDER, WHICH SHALL BE DEEMED TO BE EQUAL TO THE AMOUNT OF THE
MARK-UP RECEIVED BY THE PARTY PROVIDING THE SERVICES DURING SUCH

 

14

 

TWELVE (12) MONTH PERIOD, AS SUCH AMOUNT IS SPECIFIED IN SCHEDULE D
AND AS MAY BE ADJUSTED PURSUANT TO THE TERMS OF SCHEDULE D.

 

(ii)                                  IN
NO EVENT SHALL EITHER PARTY, ITS SUBSIDIARIES OR ITS DIRECTORS, OFFICERS,
EMPLOYEES OR AGENTS BE LIABLE TO THE OTHER PARTY FOR INDIRECT, EXEMPLARY,
CONSEQUENTIAL, INCIDENTAL OR PUNITIVE DAMAGES IN CONNECTION WITH THE
PERFORMANCE OF THIS AGREEMENT, EVEN IF THE PARTY HAS BEEN ADVISED OF THE
POSSIBILITY OF SUCH DAMAGES, AND EACH PARTY HEREBY WAIVES ON BEHALF OF ITSELF
AND ITS SUBSIDIARIES ANY CLAIM FOR SUCH DAMAGES, INCLUDING ANY CLAIM FOR
PROPERTY DAMAGE OR LOST PROFITS, WHETHER ARISING IN CONTRACT, TORT OR
OTHERWISE.

 

(iii)                               The
foregoing limitations on liability in this Section 7(b) shall not
apply to:  (i) either Party’s liability
for breaches of confidentiality under Section 6 (Confidentiality),
and (ii) either Party’s obligations under Section 7(c) (Third Party
Claims).

 

(c)                                  THIRD
PARTY CLAIMS AND INFRINGEMENT.

 

(i)                                     Except
for Third Party Claims addressed in Section 7(c)(iv) below, Abbott
shall indemnify, defend and hold harmless Hospira and its Subsidiaries, and
each of their respective directors, officers and employees, and each of the
successors and assigns of any of the foregoing (collectively, the “Hospira
Indemnitees”), from and against any and all Third Party claims relating to,
arising out of or resulting from Hospira, its Subsidiaries and/or any of their
respective officers, directors, employees, agents or contractors, furnishing or
failing to furnish the Services or Hospira Owned Materials required to be
provided by Hospira under this Agreement, other than Third Party claims arising
out of gross negligence or willful misconduct of Hospira, its Subsidiaries
and/or any of their respective directors, officers, employees, agents or contractors.

 

(ii)                                  Except
for Third Party Claims addressed in Section 7(c)(iii) below,
Hospira shall indemnify, defend and hold harmless Abbott and its Subsidiaries,
and each of their respective directors, officers and employees, and each of the
successors and assigns, of any of the foregoing (collectively, the “Abbott
Indemnitees”), from and against any and all Third Party claims relating to,
arising out of or resulting from Abbott, its Subsidiaries and/or any of their
respective officers, directors, employees, agents or contractors, furnishing or
failing to furnish the Services or Abbott Owned Materials required to be
provided by Abbott under this Agreement, other than Third Party claims arising
out of gross negligence or willful misconduct of Abbott, its Subsidiaries
and/or any of their respective directors, officers, employees, agents or
contractors.

 

(iii)                               For
any Abbott Owned Materials used or provided by Abbott or any Abbott Subsidiary
in connection with Abbott’s or any Abbott Subsidiary’s provision of Services
hereunder, but excluding any Materials provided or licensed under any Hospira
IT Agreement or any Shared IT Agreement, Abbott shall indemnify, defend and
hold harmless the Hospira Indemnitees from and against any and all Third Party
claims alleging that such Materials infringe upon the intellectual property
rights of any such Third Party.

 

15

 

(iv)                              For
any Hospira Owned Materials used or provided by Hospira or any Hospira
Subsidiary in connection with Hospira’s or any Hospira Subsidiary’s provision
of Services hereunder, but excluding any Materials provided or licensed under
any Shared IT Agreement, Hospira shall indemnify, defend and hold harmless the
Abbott Indemnitees from and against any and all Third Party claims alleging
that such Materials infringe upon the intellectual property rights of any such
Third Party.

 

(v)                                 In
connection with any Third Party Claim alleging infringement regarding any
Materials, the indemnifying Party shall have the right in connection with such
affected Materials to (i) modify or replace the affected Materials so that they
are not infringing; (ii) procure a license for the indemnified Party in the
affected Materials such that use of the affected Materials may continue in the
required manner; or (iii) at the indemnifying Party’s sole option, the
indemnifying Party may cease use of the affected Materials, and, subject to any
rights and obligations set forth in Section 2(j), thereafter the
Parties shall cooperate in good faith and use commercially reasonable efforts
to arrive at an alternative solution or workaround that eliminates the need for
the affected Materials.

 

(vi)                              The
indemnification rights and obligations set forth in Sections 7(c)(iii), 7(c)(iv)
and 7(c)(v) shall be the sole and exclusive remedy for the indemnified
Party with respect to claims of infringement of intellectual property rights.

 

(vii)                           Notice
of Third Party Claims.  If at or
following the date of this Agreement an Indemnitee receives notice or otherwise
learns of the assertion or commencement by a Person (including any Governmental
Authority) other than Abbott or Hospira and their respective Subsidiaries of
any proceeding with respect to which an indemnifying Party may be obligated to
provide indemnification to such Indemnitee pursuant to Section 7(c)
(collectively, a “Third Party Claim”), such Indemnitee shall give such
indemnifying Party written notice thereof within twenty (20) days after
becoming aware of such Third Party Claim. 
Any such notice must describe the Third Party Claim in reasonable
detail.  Notwithstanding the foregoing,
the failure of any Indemnitee or other Person to give notice as provided in
this Section 7(c)(vii) shall not relieve the related indemnifying
Party of its obligations under Section 7(c), except to the extent
that such indemnifying Party is actually prejudiced by such failure to give
notice.

 

(d)                                 FORCE
MAJEURE.  Neither Party shall be deemed
in default of this Agreement to the extent that any delay or failure in the
performance of its obligations under this Agreement results from any cause
beyond its reasonable control and without its fault or negligence, such as acts
of God, acts of Governmental Authority, embargoes, epidemics, war, riots,
insurrections, acts of terrorism, fires, explosions, earthquakes, floods,
unusually severe weather conditions, labor problems or unavailability of parts,
or, in the case of computer systems, any failure in electrical or air
conditioning equipment, viruses or similar disabling devices, or breaches of
network or system security.  The Party
claiming an event of force majeure shall promptly notify the other Party in
writing, and provide full particulars of the cause or event and the date of
first occurrence thereof, as soon as possible after the event and also keep the
other Party informed of any further developments.  The Party so affected shall use its commercially reasonable
efforts to remove the cause of non-performance, and both the Parties shall
resume performance hereunder with the utmost dispatch when such cause is
removed unless this Agreement has previously been terminated under Section 5
hereof.

 

16

 

(e)                                  RELATIONSHIP
GOVERNANCE.  Each of the Parties shall
appoint a separation services project executive or their designee from time to
time (each a “Project Executive”) who has responsibility for overseeing the
completion of the Services, respectively, and who shall have the authority to
act on behalf of the Parties, respectively, for all day-to-day matters
pertaining to this Agreement.  These
Project Executives shall meet no less frequently than monthly to review status,
consider changes to the Separation Project Plan, review and sign Work
Schedules, discuss, and if possible, resolve disputes, and provide direction to
the team members performing the Services. 
Additionally, each Party will have the option, but will not be
obligated, to designate additional representatives who will be authorized to
make certain decisions (e.g., regarding emergencies) if the Project Executive
is not available.  Each Party shall
cooperate with the other by, among other things, making available, as
reasonably requested by the other Party, management decisions, Information,
Materials, approvals and acceptances so that each Party may accomplish its
obligations and responsibilities hereunder. 
All transfers of Developed Materials and communications regarding the
scope of work shall be accomplished through the Project Executives.  In addition, the Project Executives shall arrange
and chair any progress review meetings, be responsible for ensuring that each
Party’s responsibilities have been met on a timely basis and shall control all
changes to the applicable Work Schedule(s). Either Party may change the person
designated to be its Project Executives for any Work Schedule at any time
upon written notice to the other Party’s Project Executive.  As of the Effective Date, except as
otherwise designated on an applicable Work Schedule, the Parties have
designated the following positions as the Project Executives for purposes of
this Agreement:

 

Abbott: Vice President, Information Technology

 

Hospira: Vice President, Information Technology

 

(f)                                    ACCEPTANCE.  Acceptance shall occur when the Services and
Materials described in the Work Schedule meet the agreed upon acceptance
criteria as described in the Work Schedule. 
If the Services and Materials do not meet the acceptance criteria as set
forth in the Work Schedule when they are ready for acceptance evaluation,
a Party may give the other Party detailed written notification of the
deficiency or non-conformance within thirty (30) business days of delivery of
the Services or Materials.  The
providing Party then shall either correct the deficiency or non-conformance or
provide a plan acceptable for correcting the deficiency or
non-conformance.  If the deficiency or
non-conformance is not corrected or if an acceptable plan for correcting such
deficiency or non-conformance is not established during such period, then the
aggrieved Party may initiate an ADR proceeding pursuant to Section 7(k).

 

(g)                                 AUDIT
ASSISTANCE.

 

(i)                                     Generally.  Each of the Parties and their respective
Subsidiaries are or may be subject to regulation and audit by governmental
bodies, standards organizations, other regulatory authorities, customers or
other parties to contracts with such parties under applicable law and contract
provisions.  If a governmental body,
standards organization, other regulatory authority or customer or other Party
to a contract with a Party or a Subsidiary exercises its right to examine or
audit such Party’s or its Subsidiary’s books, records, documents or accounting
practices and procedures pursuant to such applicable law, rules, regulations,
standards or contract provisions, the other Party shall provide all assistance
requested by the Party that is subject to the

 

17

 

audit in responding to such audits or requests for information, to the
extent that such assistance or information is within the reasonable control of
the cooperating Party.  The Parties may
execute a Work Schedule if mutually desired to document the work effort
and Charges that may be required in connection with an audit.

 

(ii)                                  Controls.  After the Effective Date and continuing no
longer than required in accordance with the maintaining Party’s applicable
document retention policies, subject to the provisions of the TSA, each of the
Parties will maintain in effect, at its own cost and expense, adequate controls
to the extent reasonably necessary to enable the other Party to satisfy its
reporting, accounting, audit and other obligations.

 

(h)                                 INDEPENDENT
CONTRACTORS.  The Parties each
acknowledge that they are separate entities, each of which has entered into
this Agreement for independent business reasons.  The relationships of the Parties hereunder are those of
independent contractors and nothing contained herein shall be deemed to create
a joint venture, partnership or any other relationship.

 

(i)                                     NO
THIRD PARTY BENEFICIARIES.  Except as
expressly provided in Section 7(c), the provisions of this
Agreement are solely for the benefit of the Parties and their Subsidiaries and
are not intended to confer upon any Person except the Parties any rights or
remedies hereunder.  Except for the
Hospira Indemnitees and the Abbott Indemnitees, there are no Third Party
beneficiaries of this Agreement and this Agreement shall not provide any Third
Party with any remedy, claim, liability, reimbursement, claim of action or
other right in excess of those existing without reference to this Agreement.

 

(j)                                     GOVERNING
LAW.  This Agreement shall be governed
by and construed and interpreted in accordance with the laws of the State of
Illinois irrespective of the choice of laws principles of the State of
Illinois, as to all matters, including matters of validity, construction,
effect, enforceability, performance and remedies.

 

(k)                                  ADR
PROCEDURES; EQUITABLE RELIEF.  The
Parties acknowledge that from time to time during the term of this Agreement a
dispute may arise relating to either Party’s rights or obligations under this
Agreement.  The Parties agree that any
such controversy, dispute or claim (whether arising in contract, tort or
otherwise) arising out of or relating in any way to this Agreement (including
the interpretation or validity of this Agreement), shall be resolved by the
Alternative Dispute Resolution (“ADR”) provisions set forth in this Section 7(k)
and Schedule F, the result of which shall be binding upon the
Parties.

 

(i)                                     Notice.  To initiate the ADR process, a Party first
must send written notice to the other Party in accordance with the provisions
of Section 7(q) describing the dispute and requesting attempted
resolution by good faith negotiations. 
Good faith negotiations shall be conducted in two stages, with the
second stage being triggered only if first stage negotiations do not result in
a resolution of the dispute.

 

(ii)                                  First
Stage Negotiations.  Following
receipt of the written notice described in the preceding paragraph, the
respective CEOs or Presidents of the Parties shall designate a group of no more
than three individuals, exclusive of counsel, to participate in good faith

 

18

 

negotiations aimed at resolving the dispute.  Within 21 days from receipt of the written notice, the respective
groups shall meet in-person to conduct good faith negotiations.  By mutual written consent, the Parties may
extend the 21-day period for conducting first stage negotiations.  If the Parties fail to meet within the
21-day period or the Parties fail to resolve the dispute during such period,
and the period is not extended by mutual written agreement, the Parties shall
engage in second stage negotiations as described in the next paragraph.

 

(iii)                               Second
Stage Negotiations.  Following the
expiration of the 21-day period described in the preceding paragraph, or any
extension thereof mutually agreed to in writing, if the Parties are unable to
resolve the dispute, they shall engage in second stage negotiations.  Second stage negotiations shall be conducted
between the respective CEOs or Presidents (or their designees) of the Parties
within 14 days following the conclusion of first stage negotiations.  If the dispute has not been resolved within
the 14 days provided for second stage negotiations, either Party may initiate
an ADR proceeding as provided in Schedule F.  The Parties shall have the right to be
represented by counsel in such a proceeding.

 

Notwithstanding the foregoing, the Parties acknowledge that the breach
of Section 3 (Ownership and License Rights in Materials), Section 6
(Confidentiality), and/or Section 2(i) (Security Procedures) by one
Party may give rise to irreparable injury to the other Party which is not
adequately compensable in damages or at law. 
Accordingly, the Parties agree that in such event, the non-breaching
party may seek equitable relief to enforce or prevent violation of such Party’s
respective rights and/or obligations under those Sections.  Unless otherwise agreed in writing, the
Parties shall continue to provide Services and honor all other commitments
under this Agreement during the course of dispute resolution pursuant to the
provisions of this Section 7(k) and Schedule F with
respect to all matters subject to such dispute, controversy or claim; provided,
however, that this obligation shall only exist during the term of this
Agreement.

 

(l)                                     INTERPRETATION.  Words in the singular shall be deemed to
include the plural and vice versa and words of one gender shall be deemed to
include the other genders as the context requires.  The terms “hereof,” “herein,” and “herewith” and words of similar
import shall, unless otherwise stated, be construed to refer to this Agreement
as a whole (including all of the Schedules hereto) and not to any particular
provision of this Agreement.  “Section”
and “Schedule” references are to the Sections and Schedules to this Agreement
unless otherwise specified.  Unless
otherwise stated, all references to any agreement shall be deemed to include
the exhibits, schedules and annexes to such agreement.  The word “including” and words of similar
import when used in this Agreement shall mean “including, without limitation,”
unless the context otherwise requires or unless otherwise specified.  The word “or” shall not be exclusive.  Unless otherwise specified in a particular
case, the word “days” refers to calendar days. 
References herein to this Agreement or any other agreements contemplated
herein shall be deemed to refer to this Agreement or such other agreement as of
11:59 pm Eastern Daylight Time on the Effective Date and as such time may be
amended thereafter, unless otherwise specified.

 

(m)                               SURVIVAL.  Section 1 (Definitions), Section 3
(Billing; Taxes), Section 5 (Confidentiality), Sections 2(b),
2(c)(iii), 2(d), 2(e) (with respect to those portions of Schedule F
that survive termination), 7(b) (Liability), 7(c) (Third Party
Claims), 7(g) (Audit Assistance), and

 

19

 

7(i) (No Third Party Beneficiaries) through  7(t) (Severability) shall
survive any expiration or termination of this Agreement.

 

(n)                                 ASSIGNMENT.  This Agreement shall be binding upon and
inure to the benefit of the Parties hereto and their respective successors and
permitted assigns; PROVIDED, HOWEVER, that neither Party may assign its rights
or delegate its obligations under this Agreement without the express prior
written consent of the other Party hereto. 
Notwithstanding the foregoing, this Agreement shall be assignable by
either Party in whole with the prior written consent of the other Party (which
consent shall not be unreasonably withheld, delayed or conditioned) in
connection with: (i) a merger or consolidation of such Party if (a) such Party
is not the surviving entity, or (b) such Party’s shareholders constitute less
than 70% of the surviving shareholders; (ii) the sale of all or substantially
all of the assets of such Party; or (iii) the acquisition by a Third Party of
at least 30% of the combined voting power of the then-outstanding securities of
such Party entitled to vote generally in the election of directors (each such
occurrence, a “Change of Control Event”), in each case so long as the
resulting, surviving or transferee Person assumes all the obligations of the
assignor hereunder by operation of law or pursuant to an agreement in form and
substance reasonably satisfactory to the other Party.  It shall not be deemed to be unreasonable for a Party to withhold
consent to assignment in connection with a Change of Control Event on the basis
that the proposed assignee is a competitor of such Party.  In the event a Party effects a Change of
Control Event without the other Party’s prior written consent to assign this
Agreement as set forth above, the latter Party may terminate this Agreement, in
its sole discretion, with effect immediately upon the occurrence of such Change
of Control Event.

 

(o)                                 AMENDMENT.  No amendment to this Agreement shall be
effective unless it is in writing and signed by a duly authorized
representative of each Party or, in the case of an amendment (including an
early termination) of a Work Schedule, signed by the contact listed on the
applicable Work Schedule, or by such contact’s senior management.

 

(p)                                 NO
WAIVERS.  No failure or delay of any
Party in exercising any power or right hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of any such right or power,
or any abandonment or discontinuance of steps to enforce such a right or power,
preclude any other or further exercise thereof or the exercise of any other
right or power.  The rights and remedies
of the Parties and their Subsidiaries hereunder are cumulative and are not
exclusive of any rights or remedies which they would otherwise have hereunder.  No provision of this Agreement shall be
deemed waived unless such waiver is in writing and signed by the authorized
representative of the Party against whom it is sought to be enforced.

 

(q)                                 NOTICES.  All notices or other communications under
this Agreement must be in writing and shall be deemed to be duly given (i) when
delivered in person, (ii) upon transmission via confirmed facsimile
transmission, provided that such transmission is followed by delivery of a
physical copy thereof in person, via U.S. first class mail, or via a private
express mail courier, or (iii) two days after deposit with a private express
mail courier, in any such case addressed as follows:

 

20

 

	
  To Abbott:

  	
   

  	
  Abbott Laboratories

  200 Abbott Park Road

  Building J46, Department 334

  Abbott Park, Illinois 60064-6020

  Attn: Vice President, Information Technology

  Facsimile Number: (847) 935-3253

  
	
   

  	
   

  	
   

  
	
  with a copy to:

  	
   

  	
  Abbott Laboratories

  100 Abbott Park Road

  Building AP6D, Department 364

  Abbott Park, Illinois 60064-6020

  Attn: General Counsel

  Facsimile Number: (847) 938-1561

  
	
   

  	
   

  	
   

  
	
  To Hospira:

  	
   

  	
  Hospira, Inc.

  Dept. 98F

  275 North Field Drive

  Lake Forest, Illinois 60045-5045

  Attn:  Vice President, Information
  Technology

  Facsimile Number: (847) 937-2927

  
	
   

  	
   

  	
   

  
	
  with a copy to:

  	
   

  	
  Hospira, Inc.

  Legal Department

  Dept. NLEG

  275 North Field Drive

  Lake Forest, Illinois 60045-5045

  Attn: General Counsel

  Facsimile Number: (224) 212-3312

  

 

Any Party may, by notice to the other Party, change the address to
which such notices are to be given.

 

(r)                                    COUNTERPARTS.  This Agreement may be executed in one or
more counterparts (including by means of faxed signature pages), all of which
shall be considered one and the same agreement, and shall become effective when
one or more such counterparts have been signed by each of the Parties and
delivered to the other Party.

 

(s)                                  ENTIRE
AGREEMENT.  This Agreement and the
Schedules hereto contain the entire agreement and understanding between the
Parties with respect to the subject matter hereof and supersede all prior
agreements and understandings, whether written or oral, relating to such
subject matter; provided, that except as otherwise expressly agreed by the
Parties.

 

(t)                                    SEVERABILITY.  If any provision of this Agreement or the
application thereof to any Person or circumstance is determined by a court of
competent jurisdiction to be invalid, void or unenforceable, the remaining
provisions hereof or thereof, or the application of such provision to Persons
or circumstances or in jurisdictions other than those as to which it has been held
invalid or unenforceable, shall remain in full force and effect and shall in no
way be affected, impaired or invalidated thereby, so long as the economic or
legal substance of the transactions contemplated hereby or thereby, as the case
may be, is not affected in any manner adverse to any Party.  Upon such determination, the Parties shall
negotiate in good faith in an effort to agree upon a suitable and equitable
provision to effect the original intent of the Parties.

 

21

 

IN WITNESS WHEREOF,
the Parties have executed this Agreement as of the date first written above.

 

	
  ABBOTT LABORATORIES

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:  Thomas C. Freyman

  	
   

  
	
   

  	
  Title: 
  Executive Vice President, Finance

  and Chief Financial Officer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  HOSPIRA, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:  John Arnott

  	
   

  
	
   

  	
  Title: Senior Vice President, Global Commercial Operations

  	
   

  
					

 

22

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