Document:

Exhibit
10.48

TRANSACTION
AGREEMENT

dated as of January 18, 2007

by and between

ABBOTT
LABORATORIES

and

GENERAL
ELECTRIC COMPANY

TABLE OF
CONTENTS

	
  

  	
   

  	
   

  	
  Page

  
	
  ARTICLE 1
  DEFINITIONS

  	
  1

  
	
   

  	
   

  	
   

  
	
    1.1

  	
  Definitions

  	
  1

  
	
    1.2

  	
  Glossary of Defined Terms

  	
  9

  
	
   

  	
   

  
	
  ARTICLE 2
  PURCHASE AND SALE

  	
  12

  
	
   

  	
   

  	
   

  
	
    2.1

  	
  Purchase and Sale of the Purchased Assets

  	
  12

  
	
    2.2

  	
  Excluded Assets

  	
  14

  
	
    2.3

  	
  Assumed Liabilities

  	
  15

  
	
    2.4

  	
  Excluded Liabilities

  	
  16

  
	
   

  	
   

  
	
  ARTICLE 3
  PURCHASE PRICE

  	
  17

  
	
   

  	
   

  	
   

  
	
    3.1

  	
  Purchase Price

  	
  17

  
	
    3.2

  	
  Determination of Closing Date Balance Sheet
  Adjustment

  	
  17

  
	
    3.3

  	
  Closing Date Balance Sheet Adjustment Amount Payment

  	
  18

  
	
    3.4

  	
  Purchase Price Allocation; Withholding

  	
  18

  
	
   

  	
   

  
	
  ARTICLE 4
  CLOSING

  	
  20

  
	
   

  	
   

  	
   

  
	
    4.1

  	
  Closing Date

  	
  20

  
	
    4.2

  	
  Closing Deliveries by Abbott

  	
  21

  
	
    4.3

  	
  Closing Deliveries by GE

  	
  22

  
	
   

  	
   

  
	
  ARTICLE 5
  REPRESENTATIONS AND WARRANTIES OF ABBOTT

  	
  23

  
	
   

  	
   

  
	
    5.1

  	
  Performance Financial Statements

  	
  23

  
	
    5.2

  	
  Sufficiency of Assets

  	
  23

  
	
    5.3

  	
  Title

  	
  24

  
	
    5.4

  	
  Environmental Matters

  	
  24

  
	
    5.5

  	
  Organization, Authority and Qualification

  	
  24

  
	
    5.6

  	
  No Conflict

  	
  24

  
	
    5.7

  	
  Governmental Consents and Approvals

  	
  25

  
	
    5.8

  	
  No Undisclosed Liabilities

  	
  25

  
	
    5.9

  	
  Litigation

  	
  25

  
	
  5.10

  	
  Intellectual Property

  	
  25

  
	
  5.11

  	
  Fraud and Abuse Statutes

  	
  26

  
	
  5.12

  	
  Compliance with Laws

  	
  26

  
	
  5.13

  	
  FDA Regulatory Compliance

  	
  26

  
	
  5.14

  	
  Contracts

  	
  27

  
	
  5.15

  	
  Employment and Employee Benefits Matters

  	
  27

  
	
  5.16

  	
  Labor Matters

  	
  28

  
					

 

 i
 

 

	
  5.17

  	
  Taxes

  	
  29

  
	
  5.18

  	
  Brokers

  	
  30

  
	
  5.19

  	
  Disclaimer

  	
  30

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6 REPRESENTATIONS AND WARRANTIES OF GE

  	
  30

  
	
   

  	
   

  	
   

  
	
    6.1

  	
  Organization and Authority of GE

  	
  30

  
	
    6.2

  	
  No Conflict

  	
  30

  
	
    6.3

  	
  Governmental Consents and Approvals

  	
  31

  
	
    6.4

  	
  Litigation

  	
  31

  
	
    6.5

  	
  Brokers

  	
  31

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 7
  ADDITIONAL COVENANTS AND AGREEMENTS

  	
  31

  
	
   

  	
   

  	
   

  	
   

  
	
    7.1

  	
  Conduct of the Business

  	
  31

  
	
    7.2

  	
  Access to Information; Confidentiality

  	
  33

  
	
    7.3

  	
  Regulatory and Other Authorizations; Notices and
  Consents

  	
  34

  
	
    7.4

  	
  Notifications

  	
  35

  
	
    7.5

  	
  Release of Indemnity Obligations

  	
  36

  
	
    7.6

  	
  Intellectual Property Matters

  	
  36

  
	
    7.7

  	
  Transition Services

  	
  39

  
	
    7.8

  	
  Further Action

  	
  39

  
	
    7.9

  	
  Mixed Contracts; Mixed Accounts

  	
  41

  
	
  7.10

  	
  Third Person Claims Against Both the Business and
  the Excluded Assets

  	
  42

  
	
  7.11

  	
  Intercompany Arrangements

  	
  43

  
	
  7.12

  	
  Books, Records and Files

  	
  43

  
	
  7.13

  	
  Non-Compete

  	
  43

  
	
  7.14

  	
  Environmental Matters

  	
  44

  
	
  7.15

  	
  Puerto Rico

  	
  46

  
	
  7.16

  	
  Certain Leased and Real Property Sites

  	
  49

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 8
  EMPLOYEE MATTERS

  	
   

  	
   

  	
  49

  
	
   

  	
   

  	
   

  	
   

  
	
    8.1

  	
  Transferred Employees

  	
  49

  
	
    8.2

  	
  Compensation and Employee Benefits

  	
  51

  
	
    8.3

  	
  U.S. Defined Benefit Pension Plans

  	
  53

  
	
    8.4

  	
  Non-U.S. Defined Benefit Pension Plans

  	
  53

  
	
    8.5

  	
  U.S. Defined Contribution Plans

  	
  56

  
	
    8.6

  	
  Non-U.S. Defined Contribution Plans

  	
  56

  
	
    8.7

  	
  U.S. Retiree Medical and Life

  	
  57

  
	
    8.8

  	
  Deferred Compensation

  	
  58

  
	
    8.9

  	
  Equity Compensation

  	
  58

  
	
  8.10

  	
  U.S. Career Transition Incentive

  	
  59

  
					

 

 ii
 

 

	
  8.11

  	
  Mutual Non-Hire

  	
  59

  
	
  8.12

  	
  Deferred Closing Jurisdictions

  	
  60

  
	
  8.13

  	
  Puerto Rico

  	
  60

  
	
   

  	
   

  
	
  ARTICLE 9 TAXES

  	
  60

  
	
   

  	
   

  
	
    9.1

  	
  Abbott and GE Indemnities

  	
  60

  
	
    9.2

  	
  Apportionment of Taxes

  	
  61

  
	
    9.3

  	
  Tax Return Filing and Amendment

  	
  61

  
	
    9.4

  	
  Refunds

  	
  62

  
	
    9.5

  	
  Resolution of Tax Controversies

  	
  62

  
	
    9.6

  	
  Tax Cooperation

  	
  63

  
	
    9.7

  	
  Conveyance Taxes

  	
  63

  
	
    9.8

  	
  Survival of Obligations

  	
  64

  
	
   

  	
   

  
	
  ARTICLE 10
  CONDITIONS

  	
  64

  
	
   

  	
   

  
	
  10.1

  	
  Conditions to Obligations of Abbott

  	
  64

  
	
  10.2

  	
  Conditions to Obligations of GE

  	
  65

  
	
   

  	
   

  
	
  ARTICLE 11
  TERMINATION

  	
  66

  
	
   

  	
   

  	
   

  
	
  11.1

  	
  Termination

  	
  66

  
	
  11.2

  	
  Effect of Termination

  	
  66

  
	
   

  	
   

  
	
  ARTICLE 12
  INDEMNIFICATION AND SURVIVAL

  	
  66

  
	
   

  	
   

  
	
  12.1

  	
  Survival of Representations and Warranties

  	
  66

  
	
  12.2

  	
  Indemnification by Abbott

  	
  66

  
	
  12.3

  	
  Indemnification by GE

  	
  69

  
	
  12.4

  	
  Exclusive Remedy

  	
  70

  
	
  12.5

  	
  Calculation of Damages

  	
  70

  
	
  12.6

  	
  Tax Treatment of Indemnity Payments

  	
  70

  
	
   

  	
   

  
	
  ARTICLE 13
  MISCELLANEOUS

  	
  71

  
	
   

  	
   

  
	
  13.1

  	
  Assignment

  	
  71

  
	
  13.2

  	
  Public Announcements

  	
  71

  
	
  13.3

  	
  Expenses

  	
  71

  
	
  13.4

  	
  Severability

  	
  71

  
	
  13.5

  	
  No Third Party Beneficiaries

  	
  71

  
	
  13.6

  	
  Waiver

  	
  71

  
	
  13.7

  	
  Governing Law

  	
  71

  
	
  13.8

  	
  Alternative Dispute Resolution

  	
  71

  
	
  13.9

  	
  Jurisdiction

  	
  72

  
				

 iii
 

 

	
  13.10

  	
  Waiver of Jury Trial

  	
  72

  
	
  13.11

  	
  Specific Performance

  	
  72

  
	
  13.12

  	
  Headings

  	
  73

  
	
  13.13

  	
  Counterparts

  	
  73

  
	
  13.14

  	
  Further Documents

  	
  73

  
	
  13.15

  	
  Notices

  	
  73

  
	
  13.16

  	
  Exchange Rates

  	
  74

  
	
  13.17

  	
  Construction

  	
  75

  
	
  13.18

  	
  Performance of Obligations by Affiliates

  	
  75

  
	
  13.19

  	
  Entire Agreement

  	
  75

  

 

 iv

SCHEDULES

	
  Schedule 1.1(a)

  	
  —

  	
  Abbott Diabetes Care Products

  	
   

  	
   

  
	
  Schedule 1.1(b)

  	
  —

  	
  Abbott Diagnostics Division Products

  	
   

  	
   

  
	
  Schedule 1.1(c)

  	
  —

  	
  Abbott Molecular Diagnostics Products

  	
   

  	
   

  
	
  Schedule 1.1(d)

  	
  —

  	
  Abbott Point of Care Products

  	
   

  	
   

  
	
  Schedule 1.1(e)

  	
  —

  	
  Business Intellectual Property

  	
   

  	
   

  
	
  Schedule 1.1(f)

  	
  —

  	
  Excluded Leased Business Real Property

  	
   

  	
   

  
	
  Schedule 1.1(g)

  	
  —

  	
  Excluded Owned Business Real Property

  	
   

  	
   

  
	
  Schedule 1.1(h) — 1

  	
  —

  	
  Abbott Knowledge Persons

  	
   

  	
   

  
	
  Schedule 1.1(h) — 2

  	
  —

  	
  GE Knowledge Persons

  	
   

  	
   

  
	
  Schedule 1.1(i)

  	
  —

  	
  Leased Business Real Property

  	
   

  	
   

  
	
  Schedule 1.1(j)

  	
  —

  	
  Least Developed Countries

  	
   

  	
   

  
	
  Schedule 1.1(k)

  	
  —

  	
  Calculation Method

  	
   

  	
   

  
	
  Schedule 1.1(l)

  	
  —

  	
  Owned Business Real Property

  	
   

  	
   

  
	
  Schedule 1.1(m)

  	
  —

  	
  Senior Management and Certain Abbott Knowledge
  Persons

  	
   

  	
   

  
	
  Schedule 2.1(f)

  	
  —

  	
  Computer Property

  	
   

  	
   

  
	
  Schedule 2.1(s)

  	
  —

  	
  Tax Returns and Other Materials

  	
   

  	
   

  
	
  Schedule 2.2(k)

  	
  —

  	
  Excluded Assets

  	
   

  	
   

  
	
  Schedule 2.2(l)

  	
  —

  	
  Abbott Humanitarian Program Assets

  	
   

  	
   

  
	
  Schedule 2.4(e)

  	
  —

  	
  Excluded Liabilities

  	
   

  	
   

  
	
  Schedule 3.4(f)

  	
  —

  	
  Withholding Jurisdictions

  	
   

  	
   

  
	
  Schedule 5.1(a)

  	
  —

  	
  Performance Financial Statements

  	
   

  	
   

  
	
  Schedule 5.1(b)

  	
  —

  	
  Service Equipment Additions and Refurbishment Costs

  	
   

  	
   

  
	
  Schedule 5.3

  	
  —

  	
  Title

  	
   

  	
   

  
	
  Schedule 5.4

  	
  —

  	
  Environmental Matters

  	
   

  	
   

  
	
  Schedule 5.5

  	
  —

  	
  Organization, Authority and Qualification

  	
   

  	
   

  
	
  Schedule 5.6

  	
  —

  	
  Conflicts

  	
   

  	
   

  
	
  Schedule 5.8

  	
  —

  	
  No Undisclosed Liabilities

  	
   

  	
   

  
	
  Schedule 5.9

  	
  —

  	
  Litigation

  	
   

  	
   

  
	
  Schedule 5.10

  	
  —

  	
  Intellectual Property

  	
   

  	
   

  
	
  Schedule 5.11

  	
  —

  	
  Fraud and Abuse Statutes

  	
   

  	
   

  
	
  Schedule 5.13(b)

  	
  —

  	
  FDA Compliance

  	
   

  	
   

  
	
  Schedule 5.13(c)

  	
  —

  	
  Administrative Actions

  	
   

  	
   

  
	
  Schedule 5.14

  	
  —

  	
  Contracts

  	
   

  	
   

  
	
  Schedule 5.15(a)

  	
  —

  	
  Employee Plans

  	
   

  	
   

  
	
  Schedule 5.15(f)

  	
  —

  	
  Labor Contracts

  	
   

  	
   

  
	
  Schedule 5.16

  	
  —

  	
  Labor Disputes

  	
   

  	
   

  
	
  Schedule 7.6(a)

  	
  —

  	
  Certain Abbott Trademarks

  	
   

  	
   

  
	
  Schedule 7.6(b)

  	
  —

  	
  Abbott Mixed-Use Intellectual Property

  	
   

  	
   

  
	
  Schedule 7.6(c)

  	
  —

  	
  GE Mixed-Use Intellectual Property

  	
   

  	
   

  
	
  Schedule 7.7

  	
  —

  	
  Terms of Transition Services

  	
   

  	
   

  
	
  Schedule 7.8(b)

  	
  —

  	
  Further Actions

  	
   

  	
   

  
	
  Schedule 7.14(a)(ii)

  	
  —

  	
  Terms and Provisions of Environmental Condition
  Lease Alternatives

  	
   

  	
   

  

 

 v
 

 

 

	
  Schedule 7.15(a)

  	
  —

  	
  Permitted Reductions in PR Employment Commitment

  
	
  Schedule 7.15(b)

  	
  —

  	
  Terms of Amendment to Abbott’s Existing PR Tax Grant

  
	
  Schedule 7.16

  	
  —

  	
  Certain Leased and Owned Real Property

  
	
  Schedule 8.1(a)(i) — 1

  	
  —

  	
  Certain Excluded U.S. Business Employees

  
	
  Schedule 8.1(a)(i) — 2

  	
  —

  	
  Procedures for Determining U.S. Business Employees

  
	
  Schedule 8.1(a)(iii)

  	
  —

  	
  Procedures for Determining Non-U.S. Business
  Employees

  
	
  Schedule 8.2(a)

  	
  —

  	
  Severance Plans and Agreements

  
	
  Schedule 10.1(b)

  	
  —

  	
  Governmental Approvals

  
	
  Schedule 13.8

  	
  —

  	
  Alternative Dispute Resolution

  

 

 vi

TRANSACTION AGREEMENT

THIS AGREEMENT, dated as of January 18,
2007, is entered into by and between ABBOTT LABORATORIES, an Illinois
corporation (“Abbott”), and GENERAL ELECTRIC COMPANY, a New York
corporation (“GE”).

WHEREAS, Abbott, directly and through its various Affiliates (as
defined below), is engaged in, among other things, the Abbott Diagnostics
Division Business (as defined below) and the Abbott Point of Care Business (as
defined below) (collectively, the “Business”);

WHEREAS, Abbott wishes to sell, or cause its Affiliates to sell, to GE
or one or more of its Affiliates, and GE wishes to purchase, or cause its
Affiliates to purchase, from Abbott and its Affiliates all right, title and
interest in and to the Purchased Assets (as defined below), and in connection
therewith GE is willing to assume, or cause its Affiliates to assume, the
Assumed Liabilities (as defined below), all upon the terms and subject to the
conditions set forth herein; and

WHEREAS, in connection
with the purchase of the Purchased Assets, GE is willing to employ, or cause
its Affiliates to employ, the Business Employees (as defined below).

NOW, THEREFORE, in consideration of the premises and mutual covenants,
agreements and provisions herein contained, and intending to be legally bound,
the parties hereto agree as follows:

ARTICLE 1

DEFINITIONS

                                1.1           Definitions.  The
following terms have the following meanings when used herein:

“$” means United States Dollars.

“Abbott Brands” means (a) the Trademarks
“Abbott®,” the stylized symbol “A®,” “A Promise for LifeTM” and any variants of
any of the foregoing or (b) any compound Trademarks using any of the foregoing
(e.g., “Abbott Matrix®”), in each case used prior to the Closing in connection
with the Business.

“Abbott Diabetes Care Business” means the
business of researching, developing, manufacturing, selling, marketing or
distributing products and related services, including the

Abbott Diabetes Care
Products and other products under research and development in the Abbott
Diabetes Care Business related primarily to diabetes or conditions related to
diabetes.

“Abbott Diabetes Care Products” means,
collectively, the on-market products identified on Schedule 1.1(a).

“Abbott Diagnostics Division Business” means
the business of researching, developing, manufacturing, selling, marketing or
distributing in vitro immunoassay, clinical
chemistry, integrated immunoassay/clinical chemistry and hematology human
diagnostic products and related services, including the Abbott Diagnostics
Division Products, as such business is conducted by the Abbott Diagnostics
Division immediately prior to the date of this Agreement (subject to any
changes on or prior to Closing permitted in accordance with Section 7.1),
but specifically excluding the Abbott Diabetes Care Business and the Abbott
Molecular Diagnostics Business.

“Abbott Diagnostics Division Products” means,
collectively, the on-market products and products under research and
development identified on Schedule 1.1(b).

“Abbott Humanitarian Program” means (a) the sale
or donation of Determine® HIV 1-2 rapid single use disposable test strips or
similar test products that operate in a rapid manner for the detection of HIV,
hepatitis, syphilis, fecal occult blood, malaria and other diseases, in each
case, for humanitarian, non-commercial purposes in any of the Least Developed
Countries or (b) the supply of products and related services, including human
diagnostic or point of care products and related services, through the Abbott
Fund or through non-governmental or not-for-profit organizations, in each case,
for humanitarian, non-commercial purposes as part of Abbott’s Global Care
Initiatives, HIV Surveillance programs, Tanzania Care or any other current or
future initiatives of Abbott’s Global Citizenship Program.

“Abbott Molecular Diagnostics Business” means
the business of researching, developing, manufacturing, selling, marketing or
distributing products and related services, including the Abbott Molecular
Diagnostics Products and other products under research and development in the
Abbott Molecular Diagnostics Business, for amplification, sample preparation,
detection, quantification, extraction or sequencing of a nucleic acid, in any
form or from any source.

“Abbott Molecular Diagnostics Products” means,
collectively, the on-market products identified on Schedule 1.1(c).

“Abbott Other Businesses”
means all businesses conducted prior to the Closing by Abbott and its
Affiliates (including the Abbott Molecular Diagnostics Business and the Abbott
Diabetes Care Business), in each case that are not included in the
Business.  Abbott Other Businesses also
include the businesses conducted prior to the Closing by TAP Pharmaceutical
Products, Inc., TAP Finance Inc. and TAP Pharmaceuticals Inc. and the
activities of Abbott’s corporate departments, administrative departments and
other support functions.

“Abbott Point of Care Business” means the
business of researching, developing, manufacturing, selling, marketing or
distributing patient-side testing of critical blood parameters, utilizing the
i-STAT point-of-care systems, including the Abbott Point of Care Products, as
such

 2
 

business is conducted by
the Abbott Point of Care Division immediately prior to the date of this
Agreement (subject to any changes on or prior to Closing permitted in
accordance with Section 7.1), but specifically excluding the Abbott
Molecular Diagnostics Business and the Abbott Diabetes Care Business.

“Abbott Point of Care Products” means,
collectively, the on-market products and products under research and development
identified on Schedule 1.1(d).

“Abbott Products”
means Abbott Diagnostics Division Products or Abbott Point of Care Products and
other products under research and development in the Abbott Diagnostics
Division Business and the Abbott Point of Care Business, but excludes Abbott
Diabetes Care Products and Abbott Molecular Diagnostics Products and other
products under research and development in the Abbott Diabetes Care Business or
the Abbott Molecular Diagnostics Business.

“Action” means any
claim, action, suit, arbitration, inquiry, proceeding or investigation by or
before any Governmental Authority or arbitral or similar forum.

“Affiliate” means, with respect to any Person,
any other Person directly or indirectly controlling or controlled by, or under
direct or indirect common control with, such Person.  For purposes of this definition, a Person
shall be deemed to “control” another Person if it owns or controls more than
fifty percent (50%) of the voting equity of the other Person (or other
comparable ownership if the Person is not a corporation).  As used in this Agreement, the term
“Affiliate” shall: (a) with respect to Abbott, specifically exclude TAP
Pharmaceutical Products, Inc., TAP Finance Inc. and TAP Pharmaceuticals Inc.;
and (b) with respect to GE for all periods following consummation of the
transactions contemplated by this Agreement, include any Person it creates to
consummate the transactions contemplated by this Agreement.

“Agreed Rate”
means the one (1) month LIBOR rate, as reported on Bloomberg at 9:00 a.m.
Eastern Time, as that rate may vary from time to time, or if that rate is no
longer published, a comparable rate. 
Interest pursuant hereto shall be calculated on the basis of a 365 (or
366 as the case may be) day year for the actual days elapsed, including the
first day but excluding the last day, occurring in the period for which such
interest is calculated.

“Agreement” means
this Transaction Agreement, including all Schedules
hereto, as it may be amended from time to time in accordance with its terms.

“Ancillary Agreements” means all written
agreements, instruments, assignments or other arrangements (other than this
Agreement) entered into by the parties hereto or any of their respective
Affiliates in connection with the transactions contemplated by this Agreement,
including the following: (a) the Conveyance and Assumption Instruments; (b) the
Transition Services Agreement; and (c) any other agreements which the parties
hereto determine are reasonably necessary or advisable in connection with the
transactions contemplated by this Agreement and the Ancillary Agreements.

“Books, Records and Files” means any studies,
reports, records (including shipping and personnel records), books of account,
invoices, Contracts, instruments, surveys,

 3
 

data (including
financial, sales, purchasing and operating data), computer data, disks, tapes,
marketing plans, customer lists, supplier lists, correspondence and other
documents.

“Business Day” means any day that is not a
Saturday, a Sunday or other day on which banks are required or authorized by
Law to be closed in the City of New York.

“Business Intellectual
Property” means all Intellectual Property (other than the Abbott
Brands) to the extent existing as of the Closing Date that is used exclusively
in connection with, or related exclusively to, the Business and owned by Abbott
or any of its Affiliates, including the Intellectual Property set forth on Schedule
1.1(e).

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

“Competition/Investment Law” means any Law that
is designed or intended to prohibit, restrict or regulate (a) foreign
investment or (b) antitrust, monopolization, restraint of trade or competition.

“Consent” means any consent, approval,
authorization, waiver, permit, grant, agreement, certificate, exemption, order,
registration, declaration, filing, notice of, with or to any Person or under
any Law, or the expiration or termination of a waiting period under any
Competition/Investment Law, in each case required to permit the consummation of
any of the transactions contemplated by this Agreement.

“Consent Decree” means the Amended Consent
Decree of Permanent Injunction dated September 30, 2003 (civil action No.  99 C 7135), ordered, adjudged and decreed by
the United States District Court for the Northern District of Illinois and
consented to by Abbott.

“Contract” means any loan or credit agreement,
bond, debenture, note, mortgage, indenture, lease, sublease, supply agreement,
license agreement, development agreement or other contract, agreement,
obligation, commitment or instrument, including all amendments thereto.

“Conveyance and Assumption Instruments” means,
collectively, such deeds, bills of sale, business transfer agreements, asset
transfer agreements, Intellectual Property transfer agreements, endorsements,
assignments, assumptions (including liability assumption agreements), leases,
subleases, affidavits and other instruments of sale, conveyance, lease,
transfer and assignment between Abbott or, where applicable, any designated Abbott
Affiliate, on the one hand, and GE or, where applicable, any designated GE
Affiliate, on the other hand, in form and substance reasonably satisfactory to
Abbott and GE, as may be reasonably necessary or advisable under the Laws of
the relevant jurisdictions to effect the transactions contemplated by this
Agreement.

“Encumbrance”
means any lien, pledge, mortgage, security interest, easement, right of
occupation or any other encumbrance capable of registration against title or
any agreement or other commitment, whether written or oral, to create any of
the foregoing.

“Environmental Law”
means any Law in effect as of the date of this Agreement relating to pollution
or protection of human health, safety or the environment, including any

 4
 

exposure to or the use,
handling, transportation, storage or any spill or release of any Hazardous
Material.

“ERISA” means the Employee Retirement Income
Security Act of 1974, as amended.

“Excluded Leased Business Real Property” means
the Leased Business Real Property listed on Schedule 1.1(f).

“Excluded Owned Business Real Property” means
the Owned Business Real Property listed on Schedule 1.1(g).

“FDA” means the
United States Food and Drug Administration.

“Financial Indebtedness” of any Person means,
without duplication, (a) all indebtedness of such Person for borrowed money,
(b) all obligations of such Person in connection with accounts receivable
factoring arrangements, (c) all obligations of such Person evidenced by notes,
bonds, debentures or similar instruments, including obligations so evidenced
incurred in connection with the acquisition of property, assets or businesses
(excluding capital lease obligations), (d) all obligations of such Person in
connection with hedging or similar arrangements, (e) all indebtedness of others
referred to in clauses (a) through (d) above secured by (or for which the
holder of such indebtedness has an existing right, contingent or otherwise, to
be secured by) any Encumbrance, other than Permitted Encumbrances, upon or in
property (including accounts and Contract rights) owned by such Person, even
though such Person has not assumed or become liable for the payment of such
indebtedness and (f) agreements, undertakings or arrangements by which such
Person guarantees, endorses or otherwise becomes or is contingently liable for
the indebtedness referred to in clauses (a) through (d) above of any other
Person.

“GAAP” means United States generally accepted
accounting principles consistently applied from period to period and throughout
any period in accordance with the past practices of Abbott.

“Governmental
Authority” means any United States federal, state or local or any non-U.S.
governmental, regulatory or administrative authority, agency or commission or
any court, tribunal or judicial body.

“Governmental Order” means any order, writ,
judgment, injunction, decree, stipulation, determination or award entered or
issued by or with any Governmental Authority.

“Hazardous Materials” means all substances
defined as Hazardous Substances, Oils, Pollutants or Contaminants in the
National Oil and Hazardous Substances Pollution Contingency Plan, 40 C.F.R.
§ 300.5, or any hazardous or toxic substances or wastes, or
constituents of such substances or wastes that are regulated by or for which
liability is imposed under any Environmental Law.

“HSR Act” means the Hart-Scott-Rodino Antitrust
Improvements Act of 1976, as amended.

 5
 

“Income Tax” means income, franchise, business
or similar Taxes imposed on or measured by income (excluding payroll,
unemployment, social security or similar Taxes).

“Independent Accounting Firm” means KPMG LLP.

“Intellectual Property” means all intellectual
property rights of any kind, including rights in, to and concerning (a)
patents, patent applications and statutory invention registrations, including
any other counterparts thereof worldwide, and including divisionals,
continuations, continuations-in-part, re-issues and re-examinations thereof,
(b) Trademarks, (c) published and unpublished works of authorship and
copyrights therein, and copyright registrations and applications for
registration thereof and all renewals, extensions, restorations and reversions
thereof, (d) software, data, databases and compilations of information, and (e)
confidential and proprietary information, inventions, formulas, processes,
developments, technology, research, trade secrets and know-how.

“Knowledge” means, when used in connection with
Abbott with respect to any matter in question, the actual knowledge of those
Persons listed on Schedule 1.1(h) — 1 (“Abbott Knowledge Persons”)
and, when used in connection with GE with respect to any matter in question,
the actual knowledge of those Persons listed on Schedule 1.1(h) — 2 (“GE
Knowledge Persons”).

“Law” means any
United States federal, state, local or non-U.S. statute, law, ordinance,
regulation, rule, code, order, other requirement or rule of law, including
common law, in effect as of the date of this Agreement.

“Leased Real Property”
means all the Real Property that is leased or subleased by Abbott or any Affiliate
of Abbott, as tenant.

“Leased Business Real
Property” means all the Leased Real Property that is exclusively
used in the Business or set forth on Schedule 1.1(i).

“Least Developed Countries”
means the countries listed on Schedule 1.1(j).

“Liabilities” means any and all debts,
liabilities and obligations, whether accrued or fixed, absolute or contingent,
known or unknown, matured or unmatured or determined or determinable, including
those arising under any Law, Action or Governmental Order and those arising
under any Contract, arrangement or undertaking.

“Licensed Marks” means (a) all Trademarks
(other than the Abbott Brands) that are used in the Business but not used
exclusively in the Business immediately prior to the Closing and (b) the Abbott
Brands that are used in the Business immediately prior to the Closing; and
that, in each of the foregoing (a) and (b), are owned by Abbott or any of its
Affiliates.

“Major Jurisdiction” means any of the following
countries: Germany, Ireland, Japan,the United Kingdom
or the United States.

“Material Adverse Effect”
means any change, effect, event, occurrence, state of facts or development that
individually or in the aggregate is materially adverse to the business,

 6
 

financial condition or
results of operations of the Business, taken as a whole; provided, however,
that none of the following shall (either alone or in combination) constitute or
be taken into account in determining whether there has been, a Material Adverse
Effect: (a) any adverse change attributable to the execution of this Agreement,
the disclosure or consummation of the transactions contemplated by this
Agreement or the identity of GE or its Affiliates as the purchaser of the
Business (provided that, this clause (a) shall not apply to the
representations and warranties set forth in Section 5.6); (b) any
change, effect, event, occurrence, state of facts or development (i) in the
financial or securities markets, or economic, regulatory or political
conditions in general or (ii) in the industries in which the Business operates
in general, in each case, to the extent that such change, effect, event,
occurrence, state of facts or development does not disproportionately impact
the Business; (c) any failure by the Business to meet any internal or published
projections, forecasts or revenue or earnings predictions (it being understood
that the facts or occurrences giving rise or contributing to such failure may
be deemed to constitute, or be taken into account in determining whether there
has been, a Material Adverse Effect); (d) any adverse change attributable to
any action expressly required to be taken pursuant to this Agreement (including
pursuant to Section 7.3(b), Section 7.8 and Schedule 7.8(b)
hereof) or any Ancillary Agreement; or (e) any action by GE, or approved or
consented to in writing by GE, after the date hereof.

“Minimum Net Worth Amount” means
$1,978,228,000. Schedule 1.1(k) illustrates the calculation method used
by the parties to determine the Minimum Net Worth Amount.  Schedule 1.1(k) is based on the
Performance Balance Sheets, adjusted (i) to reflect good faith estimates of
changes necessary to reconcile to GAAP, (ii) to exclude goodwill and
intangibles and (iii) to take into account the transactions contemplated by
this Agreement.

“Mixed-Use Intellectual Property” means all
Intellectual Property (other than Business Intellectual Property, Trademarks,
and any assets described in Section 2.2(g)(iii) and (iv)), to the
extent existing as of the Closing Date, that is owned by Abbott or any of its Affiliates
immediately prior to the Closing, and that is used in connection with, or
related to, both the Business and any Abbott Other Businesses, in each case as
is set forth on Schedule 7.6(b) and Schedule 7.6(c).

“Net Worth” means
the excess of the total Purchased Assets (other than goodwill and intangibles)
over the total Assumed Liabilities as of the Closing Date as reflected on the
Closing Date Balance Sheet.

“Owned Business Real Property” means all the
Owned Real Property that is exclusively used in the Business or set forth on Schedule
1.1(l).

 “Owned Real
Property” means all the Real Property in which Abbott or any Affiliate of
Abbott has a fee title (or equivalent) interest.

“Performance Balance Sheet
Date” means September 30, 2006.

“Performance Balance
Sheets” means (a) the unaudited performance balance sheet of the
Abbott Diagnostics Division Business and (b) the unaudited performance balance

 7
 

sheet of the Abbott Point
of Care Business, each as of the Performance Balance Sheet Date and as included
in the Performance Financial Statements.

“Permitted Encumbrances” means (i) liens for
Taxes and other governmental charges and assessments that are not yet due and
payable or are being contested in good faith by appropriate proceedings during
which collection or enforcement against the Purchased Assets is stayed; (ii)
liens of landlords and liens of carriers, warehousemen, mechanics and
materialmen and other similar liens imposed by Law arising in the ordinary
course of business for sums not yet due and payable or by operation of Law if
the underlying obligations are not delinquent or which are being contested in
good faith through appropriate proceedings; (iii) zoning, subdivision, building
code, entitlement and other land use and construction regulations by
Governmental Authorities; (iv) in respect of Real Property, matters that would
be shown or otherwise reflected by an accurate survey; (v) in respect of Real
Property, easements, rights-of-way, licenses, utility agreements, restrictions,
and other similar encumbrances of record; (vi) other liens or imperfections on
property that do not materially adversely impair the existing use of the
property affected by such lien or imperfection; (vii) any obligations under any
Business Contracts; (viii) any Assumed Liability reflected in the Closing Date
Balance Sheet; and (ix) any title exceptions listed on Schedule 5.3.

“Person” means any individual, corporation,
partnership, limited partnership, joint venture, limited liability company,
trust or unincorporated organization or Governmental Authority or any other
entity.

“Post-Closing Tax Period” means any taxable
period (or portion thereof) commencing after the Closing Date, including such
portion of any Straddle Period commencing after the Closing Date.

“Pre-Closing Tax Period” means any taxable
period (or portion thereof) ending on or before the Closing Date, including
such portion of any Straddle Period up to and including the Closing Date.

“Puerto Rico Grant” means the grant of tax
exemptions granted by the Commonwealth of Puerto Rico, Department of State,
Office of Industrial Tax Exemption to certain of Abbott’s Affiliates pursuant
to the provisions of Puerto Rican Tax Law.

“Real Property” means all land, buildings and
other structures, facilities or improvements located thereon and all easements,
licenses, rights and appurtenances relating to the foregoing.

“Registrations”
means authorizations, approvals, licenses, permits, certificates, or exemptions
issued by any Governmental Authority (including pre-market approval
applications, pre-market notifications, investigational device exemptions,
product recertifications, manufacturing approvals and authorizations, CE Marks,
pricing and reimbursement approvals, labeling approvals or their foreign
equivalent) held by Abbott or its Affiliates immediately prior to the Closing,
that are required for the research, development, manufacture, distribution,
marketing, storage, transportation, use and sale of the Abbott Products.

 8

  
  “Remediation Standard” means a numerical
standard that defines the concentrations of Hazardous Materials that may be
permitted to remain in any environmental media after an investigation,
remediation or containment of a release of Hazardous Materials or, in the
absence of an available numeric standard, a risk-based standard acceptable to
the relevant Governmental Authority.
  “Schedule” means the schedules attached hereto.
  “Senior Management” means those persons listed
on Schedule 1.1(m).
  “Straddle Period” means any taxable period
beginning on or before the Closing Date and ending after the Closing Date.
  “Tax” or “Taxes” means any United States
federal, state, local or non-U.S. taxes, charges, fees, duties, tariffs, levies
or other assessments, including income, gross receipts, net proceeds, ad
valorem, turnover, Real Property, personal property, sales, use, franchise,
excise, value added, goods and services, license, payroll, unemployment,
environmental, customs duties, capital stock, disability, stamp, user, transfer,
fuel, excess profits, occupational and interest equalization, windfall profits,
alternative or add-on minimum, estimated, registration, withholding, social
security (or similar), or other tax of any kind whatsoever, whether computed on
a separate or consolidated, unitary or combined basis or in any other manner,
including any interest, penalty, or addition thereto, whether disputed or not.
  “Tax Return” means any return, report,
declaration, election, estimate, information statement, claim for refund and
return, or other document (including any related or supporting information and
any amendment to any of the foregoing) filed or required to be filed with any
taxing authority with respect to Taxes.
  “Third-Party Claim” means any Action by any
Person other than the parties hereto and their respective Affiliates.
  “Trademarks” means trademarks, service marks,
trade dress, logos, trade names, corporate names, domain names and other source
identifiers, all goodwill associated with any of the foregoing and registrations
and applications for registration thereof, including all extensions,
modifications and renewals of same.
  “United States” means the United States of
America and its territories and possessions (other than Puerto Rico).
                                  1.2           Glossary of Defined Terms.  The
following terms have the meanings set forth in the Sections set forth below:
  	  Definition
  	   
  	  Section
  
	   
  	   
  	   
  
	  “Abbott”
  	   
  	  Preamble
  
	  “Abbott
  Consent Decree Defendants”
  	   
  	  7.3(b)
  
	  “Abbott Diagnostics Division Performance Financial Statements”
  	   
  	  5.1(a)
  

   

 9
 

     
  	  “Abbott
  ESPPs”
  	   
  	  8.9(b)
  
	  “Abbott FSA
  Plan”
  	   
  	  8.2(g)
  
	  “Abbott Indemnified Parties”
  	   
  	  12.3(a)
  
	  “Abbott
  Mixed-Use Intellectual Property”
  	   
  	  7.6(b)
  
	  “Abbott NQ
  Plans”
  	   
  	  8.10
  
	  “Abbott
  Option”
  	   
  	  8.9(a)
  
	  “Abbott
  Pension Plans”
  	   
  	  8.4(a)
  
	  “Abbott Point
  of Care Performance Financial Statements”
  	   
  	  5.1(a)
  
	  “Abbott
  Restricted Stock”
  	   
  	  8.9(a)
  
	  “Abbott
  Retiree Welfare Plans”
  	   
  	  8.7(a)
  
	  “Abbott RSU”
  	   
  	  8.9(a)
  
	  “Abbott Stock
  Plans”
  	   
  	  8.9(a)
  
	  “ADR”
  	   
  	  3.2(c)
  
	  “Allocation
  Firm”
  	   
  	  3.4(a)
  
	  “Assumed Liabilities”
  	   
  	  2.3
  
	  “Bonus Amount”
  	   
  	  8.10
  
	  “Business”
  	   
  	  Recitals
  
	  “Business
  Contract”
  	   
  	  2.1(h)
  
	  “Business Employees”
  	   
  	  8.1(a)(v)
  
	  “Closing”
  	   
  	  4.1(a)
  
	  “Closing Date”
  	   
  	  4.1(a)
  
	  “Closing Date Balance Sheet”
  	   
  	  3.2(a)
  
	  “Closing Date Balance Sheet Adjustment Amount”
  	   
  	  3.3
  
	  “Closing Date
  Balance Sheet Audit Report”
  	   
  	  3.2(a)(ii)
  
	  “Closing Date
  Payment”
  	   
  	  3.1(a)
  
	  “Company
  Disclosure Schedule”
  	   
  	  5
  
	  “Company
  Rights”
  	   
  	  5.10(a)
  
	  “Confidentiality Agreement”
  	   
  	  7.2(b)
  
	  “Conveyance Taxes”
  	   
  	  9.7(a)
  
	  “CTI Employee”
  	   
  	  8.10
  
	  “DC Employees”
  	   
  	  8.6(a)
  
	  “DC Transfer
  Amount”
  	   
  	  8.6(b)
  
	  “Deferred Closing Jurisdiction”
  	   
  	  4.1(a)
  
	  “Deferred Local Closing”
  	   
  	  4.1(a)
  
	  “Delayed PR Closing”
  	   
  	  7.15(c)
  
	  “Delayed PR Closing Date”
  	   
  	  7.15(c)
  
	  “EC Merger Regulation”
  	   
  	  5.7
  
	  “Employee
  Plans”
  	   
  	  5.15(a)
  
	  “Environmental
  Conditions”
  	   
  	  7.14(a)(i)
  
	  “Environmental
  Review Commencement Date”
  	   
  	  7.14(a)(i)
  
	  “Environmental
  Summaries”
  	   
  	  7.14(a)(i)
  
	  “Estimated
  Country Allocation”
  	   
  	  3.4(a)
  
	  “Estimated
  In-Country Allocation”
  	   
  	  3.4(a)
  
	  “Excluded Assets”
  	   
  	  2.2
  
	  “Excluded
  Businesses”
  	   
  	  2.2(a)
  
	  “Excluded Liabilities”
  	   
  	  2.4
  

   

 10
 

     
  	  “Excluded Taxes”
  	   
  	  9.1(a)
  
	  “Final Country Allocation”
  	   
  	  3.4(b)
  
	  “Final In-Country Allocation”
  	   
  	  3.4(b)
  
	  “FIRPTA”
  	   
  	  5.17(i)
  
	  “Fraud and
  Abuse Statutes”
  	   
  	  5.11
  
	  “GE”
  	   
  	  Preamble
  
	  “GE Claim”
  	   
  	  12.2(a)
  
	  “GE Consent
  Decree Defendants”
  	   
  	  7.3(b)
  
	  “GE FSA Plan”
  	   
  	  8.2(g)
  
	  “GE Indemnified Parties”
  	   
  	  12.2(a)
  
	  “GE Mixed-Use
  Intellectual Property”
  	   
  	  7.6(c)
  
	  “Losses”
  	   
  	  12.2(a)
  
	  “Mixed Account”
  	   
  	  7.9(b)
  
	  “Mixed Action”
  	   
  	  7.10(a)
  
	  “Mixed
  Contract”
  	   
  	  7.9(a)
  
	  “Non-U.S.
  Abbott DC Plans”
  	   
  	  8.6(a)
  
	  “Non-U.S.
  Business Employee”
  	   
  	  8.1(a)(iii)
  
	  “Non-U.S. GE
  DC Plans”
  	   
  	  8.6(a)
  
	  “Non-U.S. GE
  Pension Plans”
  	   
  	  8.4(a)
  
	  “Non-U.S.
  Transferred Employee”
  	   
  	  8.1(a)(iv)
  
	  “Notification”
  	   
  	  8.10
  
	  “Outside Date”
  	   
  	  11.1(b)
  
	  “Pension Plan
  Employees”
  	   
  	  8.4(a)
  
	  “Pension Transfer
  Amounts”
  	   
  	  8.4(b)
  
	  “Performance
  Financial Statements”
  	   
  	  5.1(a)
  
	  “PR Amendment”
  	   
  	  7.15(b)
  
	  “PR Deferred
  Closing Agreements”
  	   
  	  7.15(c)
  
	  “PR Employees”
  	   
  	  7.15(a)
  
	  “PR
  Employment Commitment”
  	   
  	  7.15(a)
  
	  “PR
  Employment Commitment Period”
  	   
  	  7.15(a)
  
	  “Preliminary Closing Date Balance Sheet”
  	   
  	  3.2(a)
  
	  “Puerto Rico Business”
  	   
  	  7.15(a)
  
	  “Purchase Price”
  	   
  	  3.1
  
	  “Purchased Assets”
  	   
  	  2.1
  
	  “Replacement
  Employee”
  	   
  	  7.15(a)
  
	  “Response
  Costs”
  	   
  	  7.14(a)(ii)
  
	  “SEC”
  	   
  	  5.17(b)
  
	  “Transferred Employees”
  	   
  	  8.1(a)(vi)
  
	  “Transition Services Agreement”
  	   
  	  7.7
  
	  “Transitional Retiree”
  	   
  	  8.7(a)
  
	  “U.S. Abbott
  Pension Plans”
  	   
  	  8.10
  
	  “U.S.
  Business Employee”
  	   
  	  8.1(a)(i)
  
	  “U.S. GE DC
  Plans”
  	   
  	  8.5(a)
  
	  “U.S. GE
  Pension Plans”
  	   
  	  8.3
  
	  “U.S. Transferred Employee”
  	   
  	  8.1(a)(ii)
  

   

 11
 

    ARTICLE 2
  PURCHASE
AND SALE
                  2.1           Purchase and Sale of the Purchased
Assets.  Upon the terms and subject to the conditions of this
Agreement, at the Closing, Abbott shall sell, convey, assign, transfer and
deliver, or cause its Affiliates  to
sell, convey, assign, transfer and deliver, to GE or one or more of its
Affiliates (A) the Business Intellectual Property and the GE Mixed-Use
Intellectual Property and (B) free and clear of Encumbrances (other than
Permitted Encumbrances) (i) all the assets, rights and properties of Abbott and
its Affiliates, of every kind and description (other than Intellectual
Property, which is addressed in clause (A) above, and those assets, rights and
properties that are addressed in clauses (B)(ii) and (B)(iii) below) and
wherever located, whether tangible or intangible, real, personal or mixed, that
(except as otherwise expressly set forth in this Agreement or the Ancillary
Agreements) are used primarily in connection with, or primarily related to, the
Business, (ii) the Owned Business Real Property and Leased Business Real
Property and (iii) all the animals, aliquots of cell-lines and antisera that
are used exclusively in connection with, or related exclusively to, the
Business (collectively, the “Purchased Assets”),
and GE or one or more of its Affiliates shall purchase the Purchased Assets,
including the following:
  (a)        all of the
assets reflected on the Closing Date Balance Sheet;
  (b)        all rights of
Abbott and its Affiliates in the Abbott Products;
  (c)        the
furniture, fixtures, office equipment and laboratory equipment located at the
Owned Business Real Property;
  (d)        the
furniture, fixtures, office equipment and laboratory equipment located at the
Leased Business Real Property;
  (e)        all rights of
Abbott and its Affiliates in the installed instrument bases of the Abbott
Products;
  (f)         all computer
software, data and information, and all related hardware, in each case as set
forth on Schedule 2.1(f);
  (g)        all other
tangible personal property, including machinery, equipment, training materials
and equipment, mechanical and spare parts, supplies, owned and leased motor
vehicles, mobile phones and personal digital assistants used by the Transferred
Employees, fixtures, trade fixtures, tools, tooling, dyes, production supplies
and other tangible property of any kind, in each case used primarily in
connection with, or related primarily to, the Business;
  (h)        subject to Section
7.8 and Section 7.9(a) and except as set forth in Section 2.2,
any Contract to the extent used in the Business (a “Business Contract”);

 12
 

    (i)         the
Registrations to the extent used in, or related to, the Business supported by
and including: (i) the original documents and all related data, records, and
correspondence under the possession of Abbott or its Affiliates (or that are
accessible to Abbott or its Affiliates using commercially reasonable efforts)
evidencing the Registrations issued to Abbott or its Affiliates by a
Governmental Authority, in each case to the extent assignable with or without
the Consent of the issuing Governmental Authority; and (ii) all related
Registration applications, clinical research and trial agreements, data results
and records of clinical trials and marketing research, design history files
(including the redbooks), technical files, drawings, manufacturing, packaging
and labeling specifications, validation documentation, packaging
specifications, quality control standards and other documentation, research
tools, laboratory notebooks, files and correspondence with regulatory agencies
and quality reports, and all relevant pricing information and correspondence
with Governmental Authorities with respect to such pricing matters;
  (j)         subject to Section
7.6(a), all product labeling, advertising, marketing and promotional
materials and all other printed or written materials used primarily in connection
with, or related primarily to, the Business;
  (k)        subject to Section
7.9(b) and except for intercompany receivables between Abbott and any of
its Affiliates, or between any Affiliate of Abbott and any other Affiliate of
Abbott (including those (i) between Abbott and its Affiliates, on the one hand,
and the Abbott Diagnostics Division Business or the Abbott Point of Care
Business, on the other hand, or (ii) between the Abbott Diagnostics Division
Business and the Abbott Point of Care Business), all accounts, notes and other
receivables resulting from sales by Abbott or its Affiliates of products or
services to the extent generated by, or related to, the Business, whether
current or noncurrent, including any value added Taxes or similar Taxes levied on
such accounts receivable, any unpaid interest accrued on such accounts
receivable and all file documentation related to such accounts, notes and other
receivables, including invoices, shipping documents, communications and
correspondence submitted to or received from customers related to such sales;
  (l)         all claims,
causes of action, choses in action, rights of recovery and rights of set-off of
any kind (including the right to sue and recover for past infringements or
misappropriations of Business Intellectual Property or, to the extent related
to the Business, GE Mixed-Use Intellectual Property), in each case to the
extent arising from, or related to, the Business, except to the extent any of
the foregoing relate to (i) Excluded Assets or Excluded Liabilities or (ii)
intercompany receivables between Abbott and any of its Affiliates, or between
any Affiliate of Abbott and any other Affiliates of Abbott (including those (i)
between Abbott and its Affiliates, on the one hand, and the Abbott Diagnostics
Division Business or the Abbott Point of Care Business, on the other hand, or
(ii) between the Abbott Diagnostics Division Business and the Abbott Point of
Care Business);
  (m)       all
inventories, including raw materials, works in process, semi-finished and
finished Abbott Products, stores, replacement and spare parts, packaging
materials (subject to Section 7.6), operating supplies and inventory on
consignment, in transit or deposited in a warehouse, in each case to the extent
used primarily in connection with, or related primarily to, the Abbott
Products;

 13
 

    (n)        all
prepayments, security deposits, refunds (other than any refunds with respect to
Taxes to which Abbott is entitled pursuant to Section 9.4) and prepaid
expenses, in each case to the extent used in, or related to, the Business;
  (o)        all income,
royalties and payments receivable with respect to any Business Intellectual
Property or any GE Mixed-Use Intellectual Property to the extent related to the
Business;
  (p)        copies of all
Books, Records and Files (other than income and similar Tax Returns and related
Books, Records and Files), to the extent used in, or related to, the Business; provided,
however, that Abbott and its Affiliates may redact any information to
the extent used in, or related to, the Excluded Assets or Abbott Other
Businesses from Books, Records and Files and similar materials conveyed
pursuant to this Section 2.1(p); provided, further, that
such redaction shall not impair any information related to the Business
contained in such Books, Records and Files and similar materials;
  (q)        other than to
the extent related to the Excluded Assets or Abbott Other Businesses, all
permits, licenses, certifications and approvals from all permitting, licensing,
accrediting and certifying agencies, and the rights to all data and records
held by such permitting, licensing, accrediting and certifying agencies, in
each case to the extent transferable and used in, or related to, the Business;
  (r)         all claims
or benefits in, to or under any express or implied warranties from suppliers of
goods or services relating to inventory sold or delivered to Abbott or any
Affiliate of Abbott prior to the Closing, in each case to the extent used in,
or related to, the Business;
  (s)        copies of Tax
Returns and other materials set forth on Schedule 2.1(s); provided,
however, that Abbott and its Affiliates may redact any information to
the extent used in, or related to, the Excluded Assets or Abbott Other
Businesses from Tax Returns and similar materials conveyed pursuant to this Section
2.1(s); provided, further, that such redaction shall not
impair any information related to the Business contained in such Tax Returns
and similar materials;
  (t)         all goodwill
of the Business as a going concern; and
  (u)        all rights of
GE and its Affiliates arising under this Agreement, the Ancillary Agreements or
from the consummation of the transactions contemplated hereby or thereby.
                  2.2           Excluded Assets.  Notwithstanding
anything to the contrary in this Agreement, GE shall not purchase or otherwise
acquire, and the Purchased Assets shall not include, any right, title and
interest in or to any of the following assets (such assets being collectively
referred to hereinafter as the “Excluded Assets”):
  (a)        all the
assets, rights and properties of every kind and description and wherever
located, whether tangible or intangible, real, personal or mixed of the Abbott
Other

 14
 

    Businesses
to the extent such assets are not described in Section 2.1
(collectively, the “Excluded Businesses”);
  (b)        all rights of
Abbott and its Affiliates arising under this Agreement, the Ancillary
Agreements or from the consummation of the transactions contemplated hereby or
thereby;
  (c)        except as
contemplated by Section 2.1(n), all cash and cash equivalents,
securities and negotiable instruments on hand, in lock boxes, in financial
institutions or elsewhere, including any cash residing in any collateral cash
account securing any obligation or contingent obligation;
  (d)        all intercompany accounts between Abbott
and any of its Affiliates, or between any Affiliate of Abbott and any other
Affiliate of Abbott (including those between the Abbott Diagnostics
Division Business and the Abbott Point of Care Business);
  (e)        the
Excluded Owned Business Real Property;
  (f)         the
Excluded Leased Business Real Property;
  (g)        all
Intellectual Property rights, except (i) the Business Intellectual Property,
(ii) the GE Mixed-Use Intellectual Property, (iii) subject to Section 7.9(a),
the rights to Intellectual Property included in the Business Contracts
described in Section 2.1(h), (iv) the rights granted to GE to the
Licensed Marks pursuant to Section 7.6(a) and (v) the rights granted to
GE to the Abbott Mixed-Use Intellectual Property pursuant to Section 7.6(b);
  (h)        all insurance
policies relating to the Business and all claims, credits, causes of action or
rights thereunder and proceeds thereof;
  (i)         all assets
of any employee or independent contractor compensation or benefit plan, program
or arrangement that is maintained or contributed to by Abbott or any of its
Affiliates, except for those assets that are transferred to GE pursuant to Article
8;
  (j)         any right to
any refund or credit with respect to Taxes in accordance with the provisions of
Article 9;
  (k)        those assets
listed on Schedule 2.2(k); and
  (l)         those assets
related to the Abbott Humanitarian Program which are listed on Schedule
2.2(l).
                  2.3           Assumed Liabilities.  At
the Closing, GE shall assume, or shall cause GE’s Affiliates to assume and
agree to, pay, perform and discharge when due, any and all Liabilities of Abbott
and Abbott’s Affiliates to the extent relating to or arising out of the
Business or the Purchased Assets, other than the Excluded Liabilities set forth
in Section 2.4 below (collectively, the “Assumed Liabilities”),
including the following:

 15
 

    (a)        all Liabilities
of Abbott and Abbott’s Affiliates reflected on the Closing Date Balance Sheet;
  (b)        subject to Section
7.8 and Section 7.9(a) and except as set forth in Section 2.4,
all non-monetary Liabilities of Abbott and Abbott’s Affiliates under (i) the
Business Contracts and (ii) the Contracts entered into by Abbott and Abbott’s
Affiliates to the extent used in connection with, or related to, the Business
after the date hereof consistent with the terms of this Agreement, and all
monetary Liabilities under the Business Contracts and the Contracts referred to
in clause (ii) above to the extent they relate to the delivery of property or
service to the Business, in each case except to the extent such Liabilities,
but for a breach or default by Abbott or any of its Affiliates, would have been
paid, performed or otherwise discharged on or prior to the Closing Date or to
the extent the same arise out of any such breach or default;
  (c)        the
Liabilities assumed pursuant to Articles 8 or 9, any other
provision of this Agreement, the Ancillary Agreements and the Schedules hereto
and thereto; and
  (d)        all
Liabilities under the Consent Decree.
                  2.4           Excluded Liabilities.  Notwithstanding
anything to the contrary in Section 2.3, GE shall not assume or be
obligated to pay, perform or otherwise discharge any of the following
Liabilities of Abbott or its Affiliates (all such liabilities and obligations
not being assumed being herein called the “Excluded Liabilities”):
  (a)        all
Liabilities to the extent relating to or arising out of assets or businesses of
Abbott or any of its Affiliates that are not included in the Purchased Assets
or related to the Business prior to Closing;
  (b)        all
Liabilities retained by Abbott and its Affiliates pursuant to Articles 8
or 9, any other provision of this Agreement, the Ancillary Agreements
and the Schedules hereto and thereto;
  (c)        all Financial
Indebtedness of Abbott or any of its Affiliates;
  (d)        all
intercompany payables and loans between Abbott and any of its Affiliates, or
between any Affiliate of Abbott and any other Affiliate of Abbott (including
those (i) between Abbott and its Affiliates, on the one hand, and the Abbott
Diagnostics Division Business or the Abbott Point of Care Business, on the
other hand, or (ii) between the Abbott Diagnostics Division Business and the
Abbott Point of Care Business); and
  (e)        any items
listed on Schedule 2.4(e).

 16
 

    ARTICLE
3
  PURCHASE
PRICE
                  3.1           Purchase Price.  The
purchase price for the Purchased Assets and the covenant not to compete
described in Section 7.13 (the “Purchase Price”)
shall be determined in accordance with this Article 3 and shall equal:
  (a)        $8,130,000,000
(the “Closing Date Payment”) minus
  (b)        the Closing
Date Balance Sheet Adjustment Amount plus
  (c)        the Assumed
Liabilities.
                  3.2           Determination of Closing Date
Balance Sheet Adjustment.
  (a)        As promptly
as practicable following the Closing Date (but not later than ninety (90) days
after the Closing Date), Abbott and its Affiliates shall prepare, in accordance
with GAAP and, where in accordance with GAAP, on a basis consistent with the preparation of the
balance sheets used to determine the Minimum Net Worth,
a balance sheet as of the Closing Date of the Business (the “Preliminary
Closing Date Balance Sheet”) and deliver the Preliminary Closing Date Balance
Sheet to the Independent Accounting Firm. 
Concurrently with the delivery of the Preliminary Closing Date Balance
Sheet, Abbott shall deliver to GE (i) a schedule showing all adjustments
reflected on the Preliminary Closing Date Balance Sheet resulting from items
not in the ordinary course of the Business in respect of the period from the
Performance Balance Sheet Date to the Closing Date and (ii) a schedule showing
all adjustments resulting from material changes to GAAP that are effective
between the Performance Balance Sheet Date and prior to the Closing Date. For
purposes of determining the Preliminary Closing Balance Sheet, Abbott shall
continue to depreciate and amortize long-term assets consistent with its
policies for depreciating and amortizing long-term assets used in determining
the Minimum Net Worth.  Abbott and its
Affiliates shall cause the Independent Accounting Firm to conduct an audit of
the Preliminary Closing Date Balance Sheet as promptly as reasonably possible
(but not later than ninety (90) days after receipt thereof) and, upon
completion of such audit (but not later than ninety (90) days after such
receipt), to deliver a written notice with respect to the Preliminary Closing
Date Balance Sheet to each of GE and Abbott setting forth:
  (i)    a summary of all
adjustments, if any, to the Preliminary Closing Date Balance Sheet necessary to
permit the Independent Accounting Firm to deliver the audit report described
below; and
  (ii)   an opinion
stating that the Preliminary Closing Date Balance Sheet (after giving effect to
such adjustments) as audited by such firm has been prepared in accordance with
GAAP and, where in accordance with GAAP, on a basis consistent with the
preparation of the balance sheets used to determine the Minimum Net Worth (such
written notice and related summary and audit report being herein called the “Closing
Date Balance Sheet Audit Report”).

 17
 

    The Preliminary Closing Date Balance
Sheet, as so determined but after giving effect to the adjustments referred to
in clause (i), is herein called the “Closing Date Balance Sheet.”
  (b)        The parties
hereto shall make available to each other and the Independent Accounting Firm
such books, records and other information (including work papers) as any of the
foregoing may reasonably request to prepare or review, as applicable, the
Preliminary Closing Date Balance Sheet. 
The fees and expenses of the Independent Accounting Firm shall be paid
by GE.
  (c)        If the
Independent Accounting Firm concludes that it is unable to determine one or
more issues or amounts necessary to complete an audit of the Preliminary
Closing Date Balance Sheet hereunder and prepare and deliver the Closing Date
Balance Sheet Audit Report, it shall promptly so notify GE and Abbott who shall
endeavor to jointly agree on such issue or amount.  If GE and Abbott are unable to reach a
written agreement concerning such issue or amount within fifteen (15) days
after receipt of such notice, the issue or amount in question shall be
determined in accordance with the Alternative Dispute Resolution (“ADR”)
provisions set forth on Schedule 13.8, the result of which shall be
binding upon the parties.  The decision
of the neutral as to the issue or amount in question shall be conclusive and
binding for purposes of use hereunder by the Independent Accounting Firm.  Following the determination of any such issue
or amount by written agreement of GE and Abbott or by ADR, the Independent
Accounting Firm shall proceed to complete its audit and the preparation and
delivery of the Closing Date Balance Sheet Audit Report as contemplated in Section
3.2(a).  ADR costs under this Section
3.2(c) shall be borne fifty percent (50%) by GE and fifty percent (50%) by
Abbott, except that each party shall be responsible for its own expenses
(including legal expenses) and the costs of any witnesses selected by such
party.  The place for such ADR shall be
Chicago, Illinois or at such other place as may be agreed upon by GE and
Abbott.
                  3.3           Closing Date Balance Sheet
Adjustment Amount Payment.  Promptly (but not later than five (5)
days) after the completion of the Closing Date Balance Sheet Audit Report
pursuant to Section 3.2(a), the parties shall determine whether the
Minimum Net Worth Amount exceeds the Net Worth reflected on the Closing Date
Balance Sheet (without, when making such determination, taking into account any
changes or adjustments resulting from the Bonus Amount, from the ordinary
course of the Business since the Performance Balance Sheet Date or from
material changes in GAAP that are effective after the Performance Balance Sheet
Date and prior to the Closing Date (i.e., ordinary course changes to the
Business and material changes in GAAP shall not result in a Closing Date
Balance Sheet Adjustment Amount)). Abbott shall pay to GE, by wire transfer of immediately
available funds to such bank account of GE as GE shall designate in writing to
Abbott, an amount equal to any such excess, plus interest on such excess from
the Closing Date to the date of payment thereof at the Agreed Rate (the “Closing
Date Balance Sheet Adjustment Amount”).
                  3.4           Purchase Price Allocation;
Withholding.
  (a)        No later than
fifteen (15) days after the date of this Agreement, Abbott shall provide GE
with (i) an allocation by country of the Closing Date Payment based on an
estimate of the fair market values of the Purchased Assets (less the Assumed
Liabilities) and
   

 18

the
covenant not to compete described in Section 7.13 (the “Estimated
Country Allocation”) and (ii) if required by applicable Law (and only to
the extent required), an allocation by asset category of the Estimated Country
Allocation within a particular country (the “Estimated In-Country Allocation”).  Within forty-five (45) days after Abbott
provides such allocations, but in no event later than thirty (30) days prior to
the Closing Date, Abbott and GE shall negotiate in good faith and attempt to
agree upon the Estimated Country Allocation and Estimated In-Country
Allocation.  If, within that period,
Abbott and GE are unable to agree on the Estimated Country Allocation or
Estimated In-Country Allocation, the unresolved allocations in those countries
where applicable Law requires Abbott and GE to agree on an allocation either
prior to the Closing Date or at any date prior to the date of the Final Country
Allocation or Final In-Country Allocation shall be determined by Ernst &
Young LLP or another internationally-recognized independent accounting firm or
appraisal firm mutually selected by Abbott and GE (the “Allocation Firm”)
using customary valuation methodologies; provided, however, that
the Allocation Firm shall make its determination no later than five (5) days
prior to the Closing Date.

(b)        As soon as
practicable after the Closing Date Balance Sheet Adjustment Amount (if
applicable) and the Assumed Liabilities are determined, but in no event later
than forty-five (45) days thereafter, Abbott and GE shall, with respect to each
country for which an Estimated Country Allocation or Estimated In-Country
Allocation was agreed to by Abbott and GE or determined by the Allocation
Firm,  negotiate in good faith and
attempt to agree upon an allocation of the final Purchase Price (including the
Assumed Liabilities) to the Purchased Assets 
and covenant not to compete described in Section 7.13 by country
and by asset category within that country. 
Such allocations shall be based upon the Estimated Country Allocation
and Estimated In-Country Allocation agreed to by Abbott and GE or determined by
the Allocation Firm, as the case may be, as appropriately adjusted to reflect
the Closing Date Balance Sheet Adjustment Amount (if applicable), the Assumed
Liabilities and any other information that has become available since the
determination of the Estimated Country Allocation and Estimated In-Country
Allocation.   If Abbott and GE are unable
to agree on such allocations, the unresolved allocations in those countries
where applicable Law requires Abbott and GE to agree on an allocation shall be
determined by the Allocation Firm using customary valuation methodologies
within thirty (30) days following the submission of the dispute to it.  Any allocation agreed to by Abbott and GE
under this Section 3.4(b) or determined by the Allocation Firm is
hereafter referred to as the “Final Country Allocation” (in the case of
an allocation by country) and “Final In-Country Allocation” (in the case
of an allocation by asset category).

(c)        Any determination
made by the Allocation Firm shall be, absent manifest error, final and binding
on GE, on behalf of itself and its Affiliates, and Abbott, on behalf of itself
and its Affiliates.  The fees and
expenses of the Allocation Firm shall be shared equally between Abbott and GE.

(d)        Each of
Abbott, GE and each of their respective Affiliates shall (i) be bound by the
Final Country Allocation and the Final In-Country Allocation for purposes of
determining Taxes and (ii) prepare and file, and cause its Affiliates to
prepare and file, its Tax Returns on a basis consistent with the Final Country
Allocation and the Final In-Country Allocation. 
None of Abbott, GE or their respective Affiliates shall take any
position inconsistent with the Final Country Allocation or the Final In-Country
Allocation in any Tax Return, in any

 19
 

refund
claim, in any litigation, or otherwise unless required by a final determination
by an applicable taxing authority.  A
Final Country Allocation and Final In-Country Allocation shall only be required
where applicable Law requires Abbott and GE to agree upon such an allocation
(and only to the extent so required).  In
all other cases, if Abbott and GE are unable to agree upon an allocation in
good faith, each party shall be entitled to follow its own allocation (without
regard to the other party’s allocation). 
Notwithstanding the preceding two sentences, if (i) a payment may be
required to be made from Abbott to GE or from GE to Abbott under this
Agreement, (ii) the amount of such payment is dependant upon an allocation of
the Purchase Price and (iii) the parties cannot agree upon such allocation,
then solely for purposes of determining the amount of such payment, dispute
resolution mechanisms similar to those described in this Section 3.4 shall
be used to determine the allocation necessary to determine the amount of such
payment.

(e)        Within ten
(10) days following the date of this Agreement, Abbott shall deliver to GE a
list setting forth, for each jurisdiction in which Abbott or its Affiliates
have Purchased Assets, the complete company name and other necessary
information of Abbott or its designated Affiliates that shall sell the
Purchased Assets. Within twenty-five (25) days of its receipt of Abbott’s list
pursuant to the preceding sentence, GE shall deliver to Abbott a list setting
forth for each jurisdiction where Abbott or its designated Affiliates have
Purchased Assets, the complete company name and other necessary information of
GE or its designated Affiliates that shall acquire the Purchased Assets in each
relevant jurisdiction.  Such list shall
be amended as necessary to reflect changes occurring prior to the Closing Date.

(f)         GE shall
make any required withholding of Taxes from the Purchase Price and shall pay
Abbott the Purchase Price net of any such withholding.  Except as otherwise provided in this
Agreement, GE shall have no obligation to gross-up, indemnify or otherwise
compensate Abbott for any withholding Tax due or imposed with respect to the
Purchase Price to the extent required by applicable Law.  No later than five (5) days prior to the
Closing, GE shall provide Schedule 3.4(f) to Abbott which shall set
forth the jurisdictions in which any of GE or any of its Affiliates is
obligated to withhold Taxes on payment of the Purchase Price.  Abbott shall reasonably cooperate with GE to
enable GE to determine its withholding obligation.  GE shall reasonably cooperate with Abbott in
obtaining any exemption or reduction in withholding Tax to which Abbott or any
of its Affiliates is entitled under applicable Law.

ARTICLE
4

CLOSING

                4.1           Closing Date.

(a)        Subject to
the terms and conditions of this Agreement, the sale and purchase of the
Purchased Assets and the assumption of the Assumed Liabilities contemplated by
this Agreement shall take place at a closing (the “Closing”)
to be held at the offices of Skadden, Arps, Slate, Meagher & Flom LLP, 333
West Wacker Drive, Chicago, Illinois 60606, at 10:00 a.m. Chicago time, on the
later of (i) April 2, 2007, or (ii) the third (3rd)

 20
 

Business
Day following the satisfaction or waiver of each of the conditions set forth in
Article 10 or at such other place, time or
date as Abbott and GE may mutually agree in writing (the “Closing Date”), provided,
that, in the event (a) any Consent of a
Governmental Authority required in any jurisdiction (other than a Consent of a
Governmental Authority required for the consummation of the transactions
contemplated by this Agreement under the Competition/Investment Laws of the
jurisdictions listed in Section 10.1(b) or on Schedule 10.1(b))
has not been obtained at the time of the Closing, (b) any Governmental
Authority in any jurisdiction (other than a Major Jurisdiction or the European
Union) shall have enacted, issued, promulgated, enforced or entered any
Governmental Order (whether temporary, preliminary or permanent) that has the
effect of making the transactions contemplated by this Agreement illegal or
otherwise prohibiting the consummation of such transactions in such
jurisdiction that is continuing as of the Closing Date or (c) any notification,
or where appropriate, consultation, consent or negotiation with a works
council, union, labor board or similar Government Authority concerning the
transactions contemplated by this Agreement which is required in any jurisdiction
(other than a Major Jurisdiction) has not been completed at the time of the
Closing (each, a “Deferred Closing Jurisdiction”),
then the parties shall defer (to the extent allowed by applicable Laws) the
Closing solely with respect to the Purchased Assets related to such Deferred
Closing Jurisdiction (each, a “Deferred Local Closing”).  In such event, (a) the legal interest in and
to the relevant Purchased Assets shall not be assigned, transferred or conveyed
to GE or the applicable Affiliate of GE unless and until the Deferred Local
Closing occurs, (b) the parties shall use their commercially reasonable efforts
to obtain such Consents, resolve such Governmental Orders and cause the
expiration of all mandatory waiting periods as soon as practicable, (c) to the
extent permitted under applicable Law, GE or the applicable Affiliate of GE,
shall acquire beneficial interest in and to the relevant Purchased Assets at
the Closing (including all cash and cash equivalents generated with respect
thereto), (d) to the extent permitted under applicable Law, until the Deferred
Local Closing occurs, Abbott and its Affiliates shall conduct the Business in
each Deferred Closing Jurisdiction in accordance with GE’s instructions for the
benefit and at the expense of GE or its applicable Affiliate and (e) neither
Abbott nor any of its Affiliates shall have any Liability to GE or any of its
Affiliates arising out of the management or operation of the Business in any
Deferred Closing Jurisdictions other than for gross negligence or willful
misconduct.  Each Deferred Local Closing
shall occur no later than three (3) Business Days following receipt of the
necessary Consent, the expiration of all mandatory waiting periods and
resolution of all applicable Governmental Orders, or at such time as the
parties may mutually agree upon in writing.

(b)        The parties
hereby agree and acknowledge that the Closing shall be effective in each
jurisdiction where Abbott and its Affiliates conduct the Business (i) as of
12:01 a.m. local time on April 1, 2007 if the date of the Closing is April 2,
2007, (ii) as of 12:01 a.m. local time on the date of the Closing if the date
of the Closing is a day other than April 2, 2007 or (iii) if required by
mandatory applicable Laws, as of 12:01 a.m. local time on the date of the
Deferred Local Closing.

                4.2           Closing Deliveries by Abbott.  At
the Closing, Abbott shall deliver, or cause to be delivered, to GE or the
applicable Affiliate of GE:

(a)        copies of the
resolutions (or local equivalent) of the board of directors (or local
equivalent) and, where required, the stockholders, of each Affiliate of Abbott,

 21
 

authorizing
and approving the transactions contemplated by this Agreement and the
applicable Ancillary Agreements, to the extent applicable to such Affiliate, certified
by the respective corporate secretary (or local equivalent) or a director to be
true and complete and in full force and effect and unmodified as of the
Closing;

(b)        executed
counterparts of each Conveyance and Assumption Instrument to which Abbott or
the applicable Affiliate of Abbott is a party (other than Conveyance and
Assumption Instruments relating to any Deferred Local Closings which shall be
delivered at the date of the relevant Deferred Local Closing);

(c)        executed
counterparts of the Transition Services Agreement;

(d)        a receipt for
the Closing Date Payment less any amounts withheld pursuant to Section
3.4(f) or that must be paid locally to the applicable Affiliate of Abbott
pursuant to applicable Law, in which case Abbott or the applicable Affiliate of
Abbott shall deliver to the applicable Affiliate of GE a receipt for the
portion of the Closing Date Payment allocated to the relevant jurisdiction
pursuant to Section 3.4; and

(e)        the
certificate required by Section 10.2(a).

                4.3           Closing Deliveries by GE.  At
the Closing, GE shall deliver, or cause to be delivered, to Abbott or the
applicable Affiliate of Abbott:

(a)        the Closing
Date Payment less any amounts withheld pursuant to Section 3.4(f), by
wire transfer in immediately available funds to an account or accounts
designated in writing by Abbott not fewer than three (3) Business Days prior to
the Closing (except as otherwise may be required by applicable Law, in which
case the portion of the Closing Date Payment that must be paid locally to the
applicable Affiliate of Abbott shall be paid by wire transfer in immediately
available funds (in the local currency, if required by applicable Law) to a
local bank account of such Affiliate of Abbott designated in writing by Abbott
no fewer than three (3) Business Days prior to the Closing);

(b)        copies of the
resolutions (or local equivalent) of the board of directors (or local
equivalent) and, where required, the stockholders, of each Affiliate of GE,
authorizing and approving the transactions contemplated by this Agreement and
the Ancillary Agreements, to the extent applicable to such Affiliate, certified
by the respective corporate secretary (or local equivalent) or a director to be
true and complete and in full force and effect and unmodified as of the
Closing;

(c)        executed
counterparts of each Conveyance and Assumption Instrument to which GE or the
applicable Affiliate of GE is a party (other than Conveyance and Assumption
Instruments relating to any Deferred Local Closings which shall be delivered at
the date of the relevant Deferred Local Closing);

(d)        executed
counterparts of the Transition Services Agreement; and

(e)        the
certificate required by Section 10.1(a).

 22
 

ARTICLE
5

REPRESENTATIONS
AND WARRANTIES OF ABBOTT

Except
as otherwise set forth in a schedule to any particular representation and
warranty (collectively, the “Company Disclosure Schedule”) (with
specific reference to the particular Section of this Agreement to which the
information set forth in such disclosure schedule relates; provided, however,
that any information set forth in one Section of the Company Disclosure
Schedule shall be deemed to apply to each other Section thereof to which its
relevance is readily apparent on its face), Abbott represents and
warrants to GE as follows:

                5.1           Performance Financial Statements.

(a)        Set
forth on Schedule 5.1(a) are the (i) unaudited performance balance
sheets and unaudited performance profit and loss statements of the Abbott
Diagnostics Division Business as of and for the years ended December 31, 2005
and December 31, 2004 and as of and for the nine (9) months ended on the
Performance Balance Sheet Date (collectively, the “Abbott Diagnostics
Division Performance Financial Statements”) and (ii) unaudited performance
balance sheets, and unaudited performance profit and loss statements of the
Abbott Point of Care Business as of and for the years ended December 31, 2005
and December 31, 2004 and as of and for the nine (9) months ended on the
Performance Balance Sheet Date (collectively, the “Abbott Point of Care
Performance Financial Statements” and together with the Abbott Diagnostics
Division Performance Financial Statements, the “Performance Financial
Statements”).  Except as set forth on
Schedule 5.1(a), the Performance Financial Statements have been prepared
in accordance with GAAP and fairly present in all material respects the
financial condition and results of operations of the Business as of the
respective dates thereof and for the periods referred to therein.

(b)        Set
forth on Schedule 5.1(b) is a schedule that accurately reflects
in all material respects the additions to service equipment, net of
reserves/retirements for refurbishments, for the years ended December 31, 2005
and December 31, 2004 and for the nine (9) months ended on the Performance
Balance Sheet Date, without capitalized interest thereon, and for instrument
refurbishment additions, in accordance with Abbott’s accounting policies for
additions to service equipment and instrument refurbishment costs, which
policies were provided by Abbott to GE prior to the date of this Agreement.

                5.2           Sufficiency of Assets.  Assuming
all required consents of third Persons (including as contemplated by Section
7.8) are obtained and alternative arrangements contemplated by Section
7.8(b) or Schedule 7.8(b) are performed, the Purchased Assets
delivered at Closing (taking into account the effect of any Deferred Local
Closing, the Delayed PR Closing and the implementation of the alternative
arrangements contemplated by Section 7.8(b) or Schedule 7.8(b)), together
with the Intellectual Property to be provided under Section 7.6(a) and Section
7.6(b), the services to be provided under the Transition Services Agreement
and the services and assets to be provided by Abbott or its Affiliates under
any other Ancillary Agreements constitute all of the assets necessary to
operate and conduct the Business in all material respects in the manner as is
now being conducted by Abbott and its Affiliates.

 23
 

                5.3           Title.  Each
of Abbott and its Affiliates has valid title to, or valid leasehold or sublease
interests or other comparable Contract rights in or relating to, all of its
Owned Business Real Property or Leased Business Real Property, as applicable,
and other tangible Purchased Assets, except as have been disposed of in the
ordinary course of business and except for Permitted Encumbrances.  Each of Abbott and its Affiliates has
complied in all material respects with the terms of all material leases or
material subleases relating to Leased Business Real Property to which it is a
party and under which it is in occupancy, and all leases relating to Leased
Business Real Property to which Abbott or its Affiliates is a party and under
which it is in occupancy are in full force and effect.  None of Abbott or its Affiliates has received
any written notice of any event or occurrence that has resulted or could result
(with or without the giving of notice, the lapse of time or both) in a material
default with respect to any material lease or material sublease regarding the
Leased Business Real Property to which it is a party.

                5.4           Environmental Matters.  Except
for those matters that individually or in the aggregate have not had and would
not reasonably be expected to have a Material Adverse Effect: (i) during the
period of ownership or operation by Abbott and its Affiliates of any of their
current Owned Business Real Property or Leased Business Real Property, there
have been no releases of Hazardous Materials in, on, under or affecting any
properties that would subject the Business to any Liability under Environmental
Laws or require expenditures by the Business for remediation to meet applicable
standards thereunder; (ii) prior to the period of ownership or operation by
Abbott and its Affiliates of any of their current Owned Business Real Property
or Leased Business Real Property, to the Knowledge of Abbott, there were no
releases of Hazardous Materials in, on, under or affecting any properties that
would subject the Business to any Liability under any Environmental Law or
require any expenditure by the Business for remediation to meet applicable
standards thereunder; (iii) none of Abbott or any of its Affiliates with
respect to the Business is subject to any indemnity obligation or Contract with
any Person relating to Liabilities under Environmental Laws; and (iv) to the
Knowledge of Abbott, there are no facts, circumstances or conditions that would
reasonably be expected to form the basis for any Action, or Liability against
or affecting the Business relating to or arising under Environmental Laws.

                5.5           Organization, Authority and
Qualification.  Abbott is a corporation duly incorporated,
validly existing and in good standing under the Laws of the State of Illinois
and has all necessary corporate power and authority to enter into, execute and
deliver this Agreement, to carry out its obligations hereunder and to
consummate the transactions contemplated hereby.  The execution and delivery of this Agreement
by Abbott, the performance by Abbott of its obligations hereunder and the
consummation by Abbott of the transactions contemplated hereby have been duly
authorized by all requisite corporate action on the part of Abbott.  This Agreement has been duly executed and
delivered by Abbott, and, assuming due authorization, execution and delivery by
GE, this Agreement is a legal, valid and binding obligation of Abbott,
enforceable against it in accordance with its terms.

                5.6           No Conflict.  Assuming
that all Consents and other actions described in Section 5.7 have been
obtained, the execution, delivery and performance of this Agreement by Abbott
do not and shall not (a) violate, conflict with or result in the breach of the
certificate of incorporation or bylaws of Abbott, (b) conflict with or violate
any Law or Governmental Order applicable to Abbott or its properties or the
Purchased Assets or (c) conflict with, result in any

 24
 

breach of, constitute a default (or event which with
the giving of notice or lapse of time, or both, would become a default) under,
require any consent under, or give to others any rights of termination,
amendment, acceleration, suspension, revocation or cancellation of, any
Contract, license, permit, franchise or other instrument or arrangement to
which Abbott or any of its Affiliates is a party, except, in the case of clauses
(b) and (c), as individually or in the aggregate has not had and
would not have a Material Adverse Effect and would not prevent the timely
consummation of the transactions contemplated hereby or prevent Abbott from
performing its obligations under this Agreement.

                5.7           Governmental Consents and
Approvals.  The execution, delivery and performance of this
Agreement by Abbott do not and shall not require any Consent of, action by,
filing with or notification to, any Governmental Authority, except (a) the
requirements of Council Regulation 139/2004 of the European Community, as
amended (the “EC Merger Regulation”), and, to the extent applicable, the
requirements of the HSR Act and the Competition/Investment Laws of any other
relevant jurisdiction, (b) the FDA as required by paragraph 23 of the Consent
Decree, (c) any notification, or where appropriate, consultation, Consent or
negotiation with a works council, union, labor board or relevant Governmental
Authority concerning the transactions contemplated by this Agreement, (d)
as may be necessary as a result of any facts or circumstances relating solely
to GE or any of its Affiliates, or (e) to the extent that the failure to obtain
any such Consent or to take such action, make such filing or make such
notification individually or in the aggregate has not had and would not have a
Material Adverse Effect and would not
prevent the timely consummation of the transactions contemplated hereby or
prevent Abbott from performing its obligations under this Agreement.

                5.8           No Undisclosed Liabilities.  To
the Knowledge of Abbott, as of the date hereof, neither Abbott nor its
Affiliates are subject to any Liability with respect to the Business that is
not shown on the Performance Balance Sheets other than Liabilities (i) that
were incurred or accrued by Abbott or its Affiliates from the Performance
Balance Sheet Date to the date hereof that are of the same nature or type as
those set forth in the Performance Balance Sheets and the notes thereto that
would have resulted in such Liabilities being included as Liabilities on the
Performance Balance Sheets and the notes thereto were such Performance Balance
Sheets and the notes being prepared as of the date hereof, (ii) that would (if
Closing were to occur as of the date hereof) constitute Excluded Liabilities or
(iii) that are not reasonably expected to, individually or in the aggregate,
have a Material Adverse Effect.

                5.9           Litigation.  As of the date hereof, no Action by or against
Abbott is pending or, to the Knowledge of Abbott, threatened, challenging the
legality, validity or enforceability of this Agreement or the consummation of
the transactions contemplated hereby. 
Except as has not had or would not reasonably be expected to have a
Material Adverse Effect, there are no lawsuits, suits or proceedings pending in
which Abbott or its Affiliates is the plaintiff or claimant and which relate to
the Business or the Purchased Assets.

                5.10         Intellectual Property.

(a)        To
the Knowledge of Abbott, Abbott has good and valid title to, and owns free and
clear of all liens, pledges and security interests (and other similar
encumbrances capable of registration against title) or has the right to use and
bring actions for

 25
 

infringement of the Business Intellectual Property, GE
Mixed-Use Intellectual Property and other Intellectual Property necessary or
required for the conduct of the Business (collectively, the “Company Rights”),
except where the failure to have such rights individually or in the aggregate
has not had or would not have a Material Adverse Effect.

(b)        To
the Knowledge of Abbott, neither the manufacture, marketing, license (or
sublicense), sale, importation or use of any material Abbott Product or service
of the Business as currently manufactured, marketed, licensed (or sublicensed),
sold, imported or used by Abbott infringes upon the valid Intellectual Property
of any third Person to which Abbott does not have a license or sublicense; nor,
to the Knowledge of Abbott, is any third Person materially infringing upon any
Business Intellectual Property or Mixed-Use Intellectual Property; and, to the
Knowledge of Abbott, as of the date hereof, there is no pending or threatened
litigation contesting the validity, enforceability or ownership by Abbott or
its Affiliates of any material Business Intellectual Property or Mixed-Use
Intellectual Property, or right of Abbott or its Affiliates to use,
manufacture, sell, license (or sublicense), import or dispose of any material
Abbott Products or service of the Business.

                5.11         Fraud and Abuse Statutes.  Except
as has not had or would not reasonably be expected to have a Material Adverse
Effect, with respect to the Business or the Purchased Assets, there are no
lawsuits, claims, proceedings or investigations relating to the Federal
Anti-Kickback Statute, Section 1128B(b) of the Social Security Act of 1935, as
amended (42 U.S.C. 1320a7b(b)), or the civil False Claims Act of 1863, as
amended (31 U.S.C. 3729 et seq.), only to the extent that an alleged violation
of the False Claims Act is based upon a claim of violation of the Federal
Anti-Kickback Statute (collectively the “Fraud and Abuse Statutes”),
pending (with respect to which Abbott or its Affiliates have been served or
notified) or, to the Knowledge of Abbott, threatened against the Business or
the Purchased Assets, nor has any matter come to the attention of Senior
Management or certain Abbott Knowledge Persons listed on Schedule 1.1(m)
that a reasonable person would consider a probable violation of the Fraud and
Abuse Statutes.

                5.12         Compliance with Laws.

(a)        Except
as has not had or would not reasonably be expected to have a Material Adverse
Effect, Abbott, with respect to the Business and the Purchased Assets,
is in substantial compliance with all applicable Laws.  This provision excludes Fraud and Abuse
Statutes, which are addressed separately in Section 5.11 above, FDA
Regulatory Compliance, which is addressed separately in Section 5.13
below and environmental matters, which are addressed separately in Section
5.4 above.

(b)        Except
as has not had or would not reasonably be expected to have a Material Adverse
Effect, there are no outstanding consent orders, unsatisfied final judgments or
decrees (other than the Consent Decree) in respect of the Business or the
Purchased Assets.

                5.13         FDA Regulatory Compliance.

(a)        Abbott
has all material Registrations from the FDA or other Governmental Authority
required to conduct the Business as currently conducted.  To the

 26
 

Knowledge of Abbott, each of such Registrations is valid
and subsisting in full force and effect, and, subject to applicable Law, may be
assigned and transferred to GE in accordance with the provisions of this
Agreement.  The FDA has not informed
Abbott in writing that it intends to limit, suspend or revoke such
Registrations or change the marketing classification or labeling of any Abbott
Products.

(b)        The
Abbott Products that are subject to the jurisdiction of the FDA have been and
are being developed, tested, manufactured, distributed and marketed in
substantial compliance with all applicable FDA Laws.

(c)        Abbott,
with respect to the Business, is not subject to, and does not have Knowledge of
facts or circumstance reasonably likely to cause, any material obligation
arising under an administrative or regulatory action status, FDA warning
letter, FDA notice of violation letter, or other notice from the FDA or any
comparable Governmental Authority except for the Consent Decree.

                5.14         Contracts.  None
of Abbott or its Affiliates, nor, to the Knowledge of Abbott, any other party
thereto is in material violation of or in material default under (nor does
there exist any condition which, upon the passage of time or the giving of
notice or both, would cause such a violation or default by any of Abbott or its
Affiliates, or, to the Knowledge of Abbott, any other party thereto) any (i)
Business Contract listed on Schedule 5.14, (ii) material license
agreements granting any rights under any Business Intellectual Property or
Mixed-Use Intellectual Property where Abbott is the licensee or (iii)
other Contract if such violation or default would be reasonably likely to have
a Material Adverse Effect.

                5.15         Employment and Employee Benefits
Matters.

(a)        As
soon as reasonably practicable, and in no event later than thirty (30) days
after the signing of this Agreement, Abbott shall provide GE with Schedule
5.15(a) which shall set forth a preliminary list of all material employee
benefit plans (within the meaning of Section 3(3) of ERISA, whether or not
subject to ERISA) and all material bonus, stock option, stock purchase, restricted
stock, incentive, deferred compensation, retiree health or life insurance,
supplemental retirement, severance or other benefit plans, programs or
arrangements, that are maintained, contributed to or required to be maintained
or contributed to by Abbott or any of its Affiliates (but excluding any such
plan, program or arrangement mandated by and maintained solely pursuant to
applicable Law), in each case providing benefits to any Business Employee (such
plans, programs, and arrangements are hereinafter referred to as the “Employee
Plans”).  As soon as reasonably
practicable, and in no event later than sixty (60) days after the signing of
this Agreement, Abbott shall cause to be made available to GE a true and
complete copy of each Employee Plan and all amendments thereto (or in the case
of any Employee Plan that is not in writing, a written description thereof).

(b)        None
of the Employee Plans is a multiemployer plan (within the meaning of Section
3(37) or 4001(a)(3) of ERISA).

(c)        Each
Employee Plan that is intended to be qualified under Section 401(a) of the Code
has received a favorable determination letter from the IRS that it is so

 27
 

qualified,
and each related trust that is intended to be exempt from federal income Tax
pursuant to Section 501(a) of the Code has received a determination letter from
the IRS that it is so exempt, and no fact or event has occurred since the date
of such determination letter that would adversely affect such qualification or
exemption, as the case may be.

(d)        With
respect to each Employee Plan (and with respect to each similar material
employee benefit arrangement maintained, contributed to or sponsored by Abbott
or any of its Affiliates in which controlled group Liability is imposed under
the Code), neither Abbott nor any of its Affiliates is currently liable for any
material Tax arising under Section 4971, 4972, 4975, 4976, 4979, 4980 or 4980B
of the Code, and no fact or event exists that would give rise to any such
material Tax Liability.  Neither Abbott
nor any of its Affiliates has incurred any material Liability under or arising
out of Title IV of ERISA that has not been satisfied in full (other than any
material Liability for premiums to the Pension Benefit Guaranty Corporation
arising in the ordinary course all of which have been timely paid), and no fact
or event exists that would result in such a material Liability.  None of the Purchased Assets is the subject
of any material lien arising under Section 302(f) or 4068 of ERISA or Section
412(n) of the Code and neither Abbott nor any of its Affiliates has been
required to post any material security under Section 307 of ERISA or Section
401(a)(29) of the Code with respect to any Employee Plan, and no fact or event
exists that would give rise to any such material lien or requirement to post
any such material security.

(e)        To
the Knowledge of Abbott, each Employee Plan which GE or one of its Affiliates
has agreed to assume in Article 8, is now and has been operated in all
material respects in accordance with the requirements of all applicable Laws,
including, in the case of United States plans, ERISA and the Code, and in
accordance with their terms.

(f)         Except
as set forth on Schedule 5.15(f) (with respect to which Abbott shall
provide GE a preliminary schedule as soon as reasonably practicable, and in no
event later than thirty (30) days after the signing of this Agreement), neither
Abbott nor any of its Affiliates is a party to any collective bargaining
agreement, works council agreement or other similar agreements applicable to
the Business Employees.

                5.16         Labor Matters.  Except
as set forth on Schedule 5.16 (which Abbott shall provide GE as soon as
reasonably practicable, and in no event later than sixty (60) days after the
signing of this Agreement), within the last three (3) years neither Abbott any
of its Affiliates has experienced any labor disputes, union organization
attempts or any work stoppage due to labor disagreements in connection with the
Business Employees.  Except to the extent
set forth on Schedule 5.16 (which Abbott shall provide GE as soon as
reasonably practicable, and in no event later than sixty (60) days after the
signing of this Agreement), to the Knowledge of Abbott, as of the date of this
Agreement, (a) there is no material unfair labor practice charge or complaint
against Abbott or any of its Affiliates pending or threatened in connection
with the Business Employees; (b) there is no material labor strike, dispute,
request for representation, slowdown or stoppage or labor-related boycott of
the Business’s products actually pending or threatened against or affecting
Abbott or any of its Affiliates in connection with the Business Employees; (c)
no material question concerning union representation has been raised or
threatened in connection with the U.S. Business Employees; (d) there are no
material pending arbitration proceedings in connection with any group of
Business Employees; and (e) there are no material administrative

 

 28

charges or court complaints or
investigations against Abbott or any of its Affiliates concerning alleged
employment discrimination, wage and hour issues, workplace safety, or other
employment or benefit related matters pending or threatened before the U.S.
Equal Employment Opportunity Commission or any Governmental Authority in
connection with the Business Employees.

                                5.17         Taxes.

(a)        All material
Tax Returns required by applicable Laws to have been filed with any
Governmental Authority by, or with respect to, Abbott and its Affiliates (with
respect to the Purchased Assets and the Business) have been filed in a timely
manner (taking into account any valid extension) in accordance with all
applicable Laws, and all such Tax Returns are true and complete in all material
respects;

(b)        Abbott and
its Affiliates (with respect to the Purchased Assets and the Business) have
paid (or have had paid on its behalf) all material Taxes due and owing, and the
most recent financial statements of Abbott filed with the Securities and
Exchange Commission (“SEC”) for which Abbott and its Affiliates are
included reflect an adequate reserve for all Taxes payable by Abbott and its
Affiliates (with respect to the Purchased Assets and the Business) for all
taxable periods and portions thereof accrued through the date of such financial
statements;

(c)        there are no
Encumbrances for Taxes on any of the Purchased Assets (other than for Taxes not
yet due and payable);

(d)        Abbott and
its Affiliates (with respect to the Purchased Assets and the Business) have
complied with all applicable Laws relating to the payment and withholding of
Taxes;

(e)        no written
notification has been received by Abbott or its Affiliates (with respect to the
Purchased Assets and the Business) that any federal, state, local or non-U.S.
audit, examination or similar proceeding is pending, proposed or asserted with
regard to any Taxes or Tax Returns of Abbott or its Affiliates (with respect to
the Purchased Assets and the Business);

(f)         there is no
currently effective agreement with any Governmental Authority extending, or
having the effect of extending, the period of assessment or collection of any
Taxes by Abbott or its Affiliates (with respect to the Purchased Assets and the
Business) nor has any request been made for any such extension;

(g)        no written
notice of a claim or pending investigation has been received from any state,
local or other jurisdiction with which Abbott and its Affiliates currently does
not file Tax Returns, alleging that Abbott or its Affiliates (with respect to
the Purchased Assets and the Business) has a duty to file Tax Returns and pay
Taxes or is otherwise subject to the taxing authority of such jurisdiction;

 29
 

(h)        none of
Abbott or its Affiliates (with respect to the Purchased Assets and the Business)
is bound by any Tax sharing arrangement or Tax indemnity arrangement; and

(i)         no
transaction contemplated by this Agreement is subject to withholding under
Section 1445 of the Code (relating to “FIRPTA”) or any comparable
provision of non-U.S. Law.

                                5.18         Brokers.  Abbott shall be solely
responsible for the fees and expenses of any broker, finder or investment
banker entitled to any brokerage, finder’s or other fee or commission in
connection with the transactions contemplated by this Agreement based upon
arrangements made by or on behalf of Abbott.

                                5.19         Disclaimer.  EXCEPT AS
SET FORTH IN THIS ARTICLE 5, NONE OF ABBOTT, ITS AFFILIATES OR ANY OF
THEIR RESPECTIVE OFFICERS,
DIRECTORS, EMPLOYEES OR REPRESENTATIVES MAKE OR HAVE MADE ANY OTHER REPRESENTATION
OR WARRANTY, EXPRESS OR IMPLIED, AT LAW OR IN EQUITY, IN RESPECT OF ABBOTT, ITS
AFFILIATES OR THE BUSINESS.  ANY SUCH
OTHER REPRESENTATION OR WARRANTY IS HEREBY EXPRESSLY DISCLAIMED.

ARTICLE
6

REPRESENTATIONS
AND WARRANTIES OF GE

                                GE
represents and warrants to Abbott as follows:

                                6.1           Organization and Authority of GE.  GE
is a corporation duly incorporated, validly existing and in good standing under
the Laws of the State of New York and has all necessary corporate power and
authority to enter into, execute and deliver this Agreement, to carry out its
obligations hereunder and to consummate the transactions contemplated
hereby.  The execution and delivery of
this Agreement by GE, the performance by GE of its obligations hereunder and
the consummation by GE of the transactions contemplated hereby have been duly
authorized by all requisite corporate action on the part of GE.  This Agreement has been duly executed and
delivered by GE, and, assuming due authorization, execution and delivery by
Abbott, this Agreement is a legal, valid and binding obligation of GE
enforceable against it in accordance with its terms.

                                6.2           No Conflict.  Assuming
that all Consents and other actions described in Section 6.3 have
been obtained, and except as may result from any facts or circumstances
relating solely to Abbott, the execution, delivery and performance by GE of
this Agreement do not and shall not (a) violate, conflict with or result
in the breach of any provision of the certificate of incorporation or bylaws
(or similar organizational documents) of GE, (b) conflict with or violate
any Law or Governmental Order applicable to GE or its respective assets,
properties or businesses or (c) conflict with, result in any breach of,
constitute a default (or event which with the giving of notice or lapse of
time, or both, would become a default) under, require any consent under, or
give to others any rights of termination, amendment, acceleration,

 30
 

suspension, revocation or cancellation of, any note,
bond, mortgage or indenture, Contract, agreement, lease, sublease, license,
permit, franchise or other instrument or arrangement to which GE is a party,
except, in the case of clauses (b) and (c), as would not materially and
adversely affect the ability of GE to carry out its obligations under, and to
consummate the transactions contemplated by, this Agreement.

                                6.3           Governmental Consents and
Approvals.  The execution, delivery and performance by GE of this
Agreement do not and shall not require any Consent of, action by, filing with,
or notification to, any Governmental Authority, except (a) the
requirements of the EC Merger Regulation and, to the extent applicable, the
requirements of the HSR Act and the Competition/Investment Laws of any other
relevant jurisdiction, (b) any notification, or where appropriate,
consultation, consent or negotiation with a works council, union, labor board
or relevant Governmental Authority concerning the transactions contemplated by
this Agreement or (c) where failure to obtain such Consent or to take such
action, make such filing or make such notification, would not prevent or
materially delay the consummation by GE of the transactions contemplated by
this Agreement.

                                6.4           Litigation.  As of
the date hereof, no Action by or against GE is pending or, to the Knowledge of
GE, threatened, challenging the legality, validity or enforceability of this
Agreement or the consummation of the transactions contemplated hereby.

                                6.5           Brokers.  GE shall
be solely responsible for the fees and expenses of any broker, finder or
investment banker entitled to any brokerage, finder’s or other fee or
commission in connection with the transactions contemplated by this Agreement
based upon arrangements made by or on behalf of GE.

ARTICLE
7

ADDITIONAL
COVENANTS AND AGREEMENTS

                                7.1           Conduct of the Business.  From
the date of this Agreement until the Closing (or until the earlier termination
of this Agreement in accordance with Section 11.1), except as expressly
required by applicable Law, as contemplated by or required to implement this
Agreement or any Ancillary Agreement or as otherwise waived or consented to in
writing by GE, Abbott shall, and shall cause its Affiliates to:

(a)        carry on the
Business in the ordinary course of business consistent with past practice, and
in any event in material compliance with all applicable Laws;

(b)        not in any
respect, (A) grant any increase, or announce any increase, in the wages,
salaries, compensation, bonuses, incentives, pension or other benefits payable
to any Transferred Employee, including any increase or change pursuant to any
Employee Plan or (B) establish or increase or promise to increase any benefits
under any Employee Plan, in either case except (i) as required by Law or to
effect the terms of this Agreement, (ii) as may be required under any Employee
Plan or other agreement in effect on the date hereof, (iii) as effected in the
ordinary course consistent with the past practice, or (iv) as

 31
 

would
also relate to a substantial number of similarly situated employees of Abbott
and its Affiliates employed by the Abbott Other Businesses;

(c)        not transfer
any Business Employee to another business unit of Abbott or its Affiliates,
other than individuals listed on Schedule 8.1(a)(i) — 1;

(d)        continue to
maintain, service and protect the Purchased Assets on a basis consistent with
past practice;

(e)        use
commercially reasonable efforts to preserve intact the goodwill of the Business
and the relationships of Abbott and its Affiliates with their customers,
vendors, suppliers, creditors, agents, landlords, equipment lessors, service
providers, employees and others having business relations with the Business;

(f)         pay all
accounts payable and other current obligations of Abbott and its Affiliates to
the extent related to the Business when they become due and payable in the
ordinary course of business consistent with past practice, except for accounts
payable or other obligations that are the subject of a good faith dispute;

(g)        not delay or
accelerate payment of any account payable or other Liability of the Business
beyond or in advance of its due date or the date when such Liability would have
been paid in the ordinary course of business consistent with past practice,
other than any such delays due to good faith disputes;

(h)        continue to
maintain the books and records of Abbott and its Affiliates related to the
Business on a basis consistent with past practice;

(i)         continue to
make all necessary and material filings and payments with Governmental
Authorities in connection with the Business in a timely manner, and use
commercially reasonable efforts to maintain in effect all existing
Registrations or other authorizations of Governmental Authorities required for
the ongoing operation of the Business as currently conducted;

(j)         not (i)
sell, assign, convey, transfer or lease (as lessor) any Purchased Asset, other
than the sale of inventories in the ordinary course of business consistent with
past practice, (ii) dispose of any equipment of Abbott or any of its Affiliates
primarily related to the Business, other than in the ordinary course of
business consistent with past practice, (iii) write off, forgive, waive or
otherwise cancel, in whole or in part, any material account receivable of
Abbott or any of its Affiliates to the extent included in the Purchased Assets,
except as required by GAAP or applicable Law, (iv) write off, forgive, waive or
otherwise cancel, in whole or in part, any other material obligation owed to
Abbott or any of its Affiliates to the extent related to the Business, except
as required by GAAP or applicable Law, (v) acquire any material asset or
material property primarily related to the Business other than in the ordinary
course of business, (vi) take any action or knowingly omit to take any action,
the taking or omission of which has a Material Adverse Effect, or (vii) enter
into any Contract, arrangement or commitment to do any of the foregoing; or

 32
 

(k)        except as
would not be material to the Business, not (i) change any financial or Tax
accounting methods, policies or practices of Abbott or any of its Affiliates
(to the extent related to the Business), except as required by a change in GAAP
or applicable Law or (ii) make, revoke or amend any Tax election of Abbott or
any of its Affiliates (to the extent related to the Business); or

(l)         except as
required by applicable Law, not prepare or file any Tax Return inconsistent
with past practice or, on any such Tax Return, take any position, make any
election, or adopt any method that is inconsistent with positions taken,
elections made or methods used in preparing or filing similar Tax Returns in
prior periods (including positions, elections or methods that would have the
effect of deferring income to Post-Closing Tax Periods or accelerating
deductions to Pre-Closing Tax Periods), but only to the extent that such act
would result in an increase in Taxes in any Post-Closing Tax Period.

                                7.2           Access to Information;
Confidentiality.

(a)        From the date hereof until the Closing,
upon reasonable notice, Abbott shall: (i) afford GE and its authorized
representatives reasonable access to the properties and books and records of
the Business, and (ii) furnish to the officers, directors, employees, and
authorized representatives of GE such additional financial and operating data
and other information regarding the Business (or copies thereof) as GE may from
time to time reasonably request; provided, however, that
any such access or furnishing of information shall be scheduled and coordinated
through Abbott’s Vice President, Global Licensing/New Business Development (or
his successor or successors) and shall be conducted at GE’s expense, during
normal business hours, under the supervision of Abbott’s or its Affiliates’
personnel and in such a manner as not to interfere unreasonably with the normal
operations of the Business or any of the Abbott Other Businesses.  Notwithstanding anything to the contrary in
this Agreement, Abbott shall not be required to disclose any information to GE
if such disclosure would be reasonably likely to (x) cause significant
competitive harm to the Business if the transactions contemplated hereby are
not consummated, (y) jeopardize any attorney-client or other legal privilege or
(z) contravene any applicable Laws, fiduciary duty or binding agreement entered
into prior to the date hereof.

(b)        The terms of
the Confidentiality Agreement, dated as of June 29, 2006, between GE Healthcare
and Abbott, which Confidentiality Agreement was joined by GE on December 12,
2006 (the “Confidentiality Agreement”),
shall continue in full force and effect until the Closing, at which time such
Confidentiality Agreement and the obligations of GE under this Section 7.2(b) shall terminate; provided, however, that,
from and after the Closing, except as would have been permitted under the terms
of the Confidentiality Agreement, (i) GE shall, and shall cause its officers,
directors, employees, authorized representatives and Affiliates to, treat and
hold as confidential, and not disclose to any Person, information related to
the discussions and negotiations between the parties regarding this Agreement
and the transactions contemplated hereby and all confidential information
relating to Abbott, the Abbott Other Businesses or the Excluded Assets, and
(ii) Abbott shall, and shall cause its officers, directors, employees, authorized
representatives and Affiliates to, treat and hold as confidential, and not
disclose to any Person, information related to the discussions and negotiations
between the parties regarding this Agreement and the transactions contemplated
hereby and all confidential information relating to

 33
 

the
Business or GE.  If this Agreement is,
for any reason, terminated prior to the Closing, the Confidentiality Agreement
shall continue in full force and effect.

(c)        Nothing
provided to GE pursuant to Section 7.2(a) shall in any way amend or
diminish GE’s obligations under the Confidentiality Agreement.  GE acknowledges and agrees that any
Evaluation Material (as defined in the Confidentiality Agreement) provided to
GE pursuant to Section 7.2(a) or otherwise by or on behalf of Abbott or
any officer, director, employee or authorized representative shall be subject
to the terms and conditions of the Confidentiality Agreement.

(d)        Abbott and GE
shall cooperate in the preparation of carve-out financial statements of the Business,
and make available to each other such Books, Records and Files and other
information and employees as either may reasonably request in connection with
the preparation thereof. Abbott shall bear out-of-pocket costs relating to the
preparation of such carve-out financial statements for the Business.

                                7.3           Regulatory and Other
Authorizations; Notices and Consents.

(a)        Each of
Abbott and GE shall use its commercially reasonable efforts to obtain promptly
all Consents of all Governmental Authorities that may be or become necessary
for the performance of its and the other party’s obligations pursuant to, and
the consummation of the transactions contemplated by, this Agreement.  Abbott and GE shall cooperate with one
another in promptly seeking to obtain all such Consents; provided, however,
that Abbott and
GE shall not be required to pay any fees or other payments to any such
Governmental Authorities in order to obtain any such Consent (other than normal
filing fees that are imposed by Law on Abbott or GE, as applicable, or
Conveyance Taxes).  Neither Abbott, with
respect to the Business, nor GE, with respect to the business conducted by GE
Healthcare, shall knowingly enter into any acquisition or other agreement, make
any announcement with respect to any transaction or take any other action that
could reasonably be expected to have the effect of materially delaying,
impairing or impeding the receipt of any Consent of a Governmental Authority
under any Competition/Investment Law. 
Abbott and GE each agree to make, or to cause to be made, if required,
an appropriate filing of a notification and report form pursuant to the HSR
Act, the EC Merger Regulation and any other applicable Competition/Investment
Law, in each case, with respect to the transactions contemplated by this
Agreement as promptly as reasonably practicable after the date of this
Agreement, and to supply promptly any additional information and documentary
material that may be requested pursuant to the HSR Act and the EC Merger
Regulation or any other Competition/Investment Laws.  If any
objections are asserted with respect to the transactions contemplated hereby
under any Competition/Investment Law or if any suit or proceeding is instituted
or threatened by any Governmental Authority or any private party challenging
any of the transactions contemplated hereby as violative of any
Competition/Investment Law, each of GE and Abbott shall use its reasonable best
efforts to promptly resolve such objections. 
Notwithstanding anything to the contrary contained in this
Agreement, in connection with obtaining any Consent of a Governmental Authority
under any Competition/Investment Law (i) Abbott shall not, without GE’s prior
written consent, commit to any divestiture transaction involving the Purchased
Assets, or commit to alter the business or commercial practices relating to the
Business in any way, and (ii) neither GE nor any of its Affiliates shall be
required to (A) divest or hold separate or

 34
 

otherwise
take or commit to take any action that limits its freedom of action with
respect to, or its ability to retain, the Business, any Purchased Assets, any
Abbott Product or any other assets or businesses of GE or any of its Affiliates
or (B) alter or restrict in any way the business or commercial practices of GE,
any of its Affiliates, or the Business.

(b)        Abbott shall
notify the FDA of the transactions contemplated by this Agreement as required
by paragraph 23 of the Consent Decree, a copy of which has been provided to GE,
and may provide the FDA with a copy of this Agreement.  GE shall (i) cooperate with Abbott and
promptly comply with any further inquiry or request for information from the
FDA in connection with such notice; (ii) at the Closing, assume and agree to
fully satisfy all Liabilities of Abbott, Miles D. White, Chairman of the Board
and Chief Executive Officer, Abbott, and Thomas D. Brown, (former) President,
Abbott Diagnostics Division (collectively, the “Abbott Consent Decree
Defendants”), under the Consent Decree; (iii) cooperate with Abbott, using
its reasonable best efforts, to obtain an amendment to the Consent Decree to
(x) replace the defendants thereunder with GE or other GE Persons required by
any Governmental Authority (the “GE Consent Decree Defendants”), (y)
reflect the assignment and assumption of all Liabilities of the Abbott Consent
Decree Defendants thereunder to and by the GE Consent Decree Defendants and (z)
remove and unconditionally release the Abbott Consent Decree Defendants as
defendants thereunder; and (iv) use its reasonable best efforts to promptly
resolve any objections or conditions asserted with respect to the transactions
contemplated hereby under the Consent Decree by any Governmental Authority.

(c)        Each party to
this Agreement shall promptly notify the other party of any communication it or
any of its Affiliates receives from any Governmental Authority relating to the
matters that are the subject of this Agreement and permit the other party to
review in advance any proposed communication by such party to any Governmental
Authority relating to the matters that are the subject of this Agreement.  Neither party to this Agreement shall agree
to participate in any meeting with any Governmental Authority in respect of any
filings, investigation or other inquiry related to the transactions
contemplated by this Agreement unless it consults with the other party in
advance and, to the extent permitted by such Governmental Authority, gives the
other party the opportunity to attend and participate at such meeting.  Subject to the Confidentiality Agreement, the
parties to this Agreement shall coordinate and cooperate fully with each other
in exchanging such information and providing such assistance as the other party
may reasonably request in connection with the foregoing and in seeking early
termination of any applicable waiting periods including under the HSR Act, the
EC Merger Regulation and any other applicable Competition/Investment Laws.  Subject to the Confidentiality Agreement the
parties to this Agreement shall provide each other with copies of all
correspondence, filings or communications between them or any of their
representatives, on the one hand, and any Governmental Authority or members of
its staff, on the other hand, with respect to this Agreement and the
transactions contemplated by this Agreement.

                                7.4           Notifications.  Each
party hereto shall promptly notify the other party in writing of any fact,
change, condition, circumstance or occurrence or nonoccurrence of any event of
which it is aware that shall result in (a) any representation or warranty made
by such party to be untrue or inaccurate in a manner which would result in the
failure of the condition set forth in Section 10.1(a) or Section
10.2(a) and (b) any material failure on such party’s part to comply with or
satisfy any covenant, condition or agreement to be complied with or satisfied
by it

 35
 

hereunder; provided, however, that the
delivery of any notice pursuant to this Section 7.4 shall not limit or
otherwise affect the remedies available hereunder to the party receiving such
notice.

                                7.5           Release of Indemnity Obligations.

(a)        Abbott and GE shall cooperate with each other with a
view to entering into arrangements effective as of the Closing whereby GE would
be substituted for Abbott and its Affiliates in any guarantees, letters of
comfort, indemnities or similar arrangements entered into by Abbott or its
Affiliates in respect of the Business (but only to the extent such guarantees,
letters of comfort, indemnities or arrangements constitute Assumed
Liabilities).  If GE cannot enter into
the arrangements referred to above, Abbott shall not terminate such guaranty
arrangements without GE’s consent; provided, however, that GE
shall enter into a separate guaranty with Abbott or one of its Affiliates to
guarantee the performance of the obligations of the relevant Person pursuant to
the Contract underlying such guaranty arrangements.

(b)        After the
Closing, each of Abbott and GE, at the request of the other party, shall use,
and shall cause their respective Affiliates to use, commercially reasonable
efforts to obtain any Consent, substitution or amendment required to novate or
assign all Assumed Liabilities to GE or its Affiliates and any Excluded
Liabilities to Abbott or its Affiliates, and obtain in writing the
unconditional release of Abbott and its Affiliates with respect to the Assumed
Liabilities and the unconditional release of GE and its Affiliates with respect
to the Excluded Liabilities.

                                7.6           Intellectual Property Matters.

(a)        At the
Closing, Abbott shall grant (to the extent Abbott has a right to) to GE and its
Affiliates, (x) for a period from the Closing until the earlier of (A) the
first anniversary of the Closing or (B) the exhaustion of any inventory of
Abbott Products in existence at the Closing bearing the Licensed Marks, a
non-exclusive, irrevocable (except in the event of breach by GE or its
Affiliates of this Section 7.6(a), which breach is not cured within
thirty (30) days of written notice from Abbott), non-assignable, worldwide and
royalty-free right and license to use the Licensed Marks to manufacture, label,
market, distribute, lease, sell and support inventory of Abbott Products in
existence at the Closing or existing as of the date which is six (6) months
following the Closing, as such Licensed Marks are used in the Business at the
Closing, for the sole purpose of operating the Business by GE and its
Affiliates and (y) a perpetual, non-exclusive, irrevocable (except in the event
of breach by GE or its Affiliates of this Section 7.6(a), which breach
is not cured within thirty (30) days of written notice from Abbott),
non-assignable, worldwide and royalty-free right and license to use the
Licensed Marks on any installed instrument bases of the Business existing as of
the date which is six (6) months following the Closing, and only as such
Licensed Marks appear on such instruments as of the Closing; provided
that GE, its Affiliates or its designees (i) shall as part of any resale,
refurbishing or receipt of any such installed instrument, and (ii) shall use
commercially reasonable efforts to, as part of any service to or service call
on any such installed instrument, cover over all Licensed Marks so that such
Licensed Marks are no longer observable on any exterior surface of such
instrument (but (A) shall have no obligation to alter the operating software of
such instrument to remove the display of any Licensed Mark except as reasonably

 36
 

practicable
when otherwise modifying such software and (B) shall have no obligation to
cover any Licensed Marks to the extent such actions are objected to by a
representative of the applicable customer or end user of such instrument).  The foregoing license grants shall be
effective immediately upon the Closing. 
As soon as reasonably practicable after the Closing, but in no event later
than six (6) months after the Closing, GE shall, and shall cause its Affiliates
to, (i) subject to clause (y) of the first sentence of this Section 7.6(a),
cease to use and remove or cover the name “Abbott” as a trade name, corporate
name or domain name from all materials, and (ii) otherwise cease use of any
Abbott Brand for which GE has not been granted a license pursuant to this Section
7.6(a), including removing such Abbott Brand from signs, billboards,
telephone listings, stationery, office forms or other similar materials of the
Business.  Any use by GE and its
Affiliates of any Licensed Mark as permitted in this Section 7.6(a) is
subject to their compliance with the level of quality in effect in connection
with the Licensed Marks immediately prior to the Closing Date.  GE and its Affiliates shall not use the
Licensed Marks in any manner that reflects negatively on such Trademarks or on
Abbott or its Affiliates, or harms the value or goodwill of the Licensed Marks;
provided, however, that nothing in this sentence shall limit GE’s
right to take any action with respect to the Abbott Products to the extent that
such action is required by applicable Law. Except as expressly provided in this
Section 7.6(a), GE and its Affiliates shall have no right to use in any
way the Licensed Marks.  The parties
acknowledge and agree that the Trademarks set forth on Schedule 7.6(a)
are used in connection with the Abbott Other Businesses and are being retained
by Abbott and its Affiliates, and Abbott and its Affiliates shall have the
royalty-free right to use such Trademarks and variants thereof with respect to
the products and services of the Abbott Other Businesses and, subject to any
preexisting rights of GE and its Affiliates, other products and services.

(b)        Abbott and
its Affiliates shall retain the ownership of and other rights to the Mixed-Use
Intellectual Property used primarily in connection with or related primarily to
one or more of the Abbott Other Businesses, which Intellectual Property is set
forth on Schedule 7.6(b) (the “Abbott Mixed-Use Intellectual Property”).  At the Closing, Abbott, on behalf of itself
and its Affiliates, shall grant (to the extent Abbott has rights to) to GE and
its Affiliates, a perpetual, irrevocable, worldwide, non-exclusive and royalty-free
right and license (with a right to grant sublicenses or covenants not to sue
for purposes of conducting GE’s and its Affiliates’ business)   under the Abbott Mixed-Use Intellectual
Property to (i) research, develop, make, have made, use, sell, offer to sell,
distribute, import, support and otherwise dispose of products, methods and
services covered by, and to use, modify, reproduce, display, perform or prepare
derivative works based on, the Abbott Mixed-Use Intellectual Property in any
field of use.  The foregoing license
grants shall be (i) effective immediately upon the Closing, and (ii)
non-assignable, except in connection with a transfer of the Business or any
other business in which such Abbott Mixed-Use Intellectual Property is used (or
a transfer of substantially all of the assets of the Business or such other
business).  Abbott covenants not to sue
GE or its Affiliates for patent infringement to the extent such infringement is
due to making, using, marketing, offer for sale, sale, importation, or export
of products of the Business already marketed as of the Closing.

(c)        GE and its
Affiliates shall own all right, title and interest in and to the Mixed-Use
Intellectual Property used primarily in connection with or related primarily to
the Business, which Intellectual Property is set forth on Schedule 7.6(c)
(the “GE Mixed-Use Intellectual Property”).  At the Closing, GE, on behalf of itself and its
Affiliates, shall grant (to

 37
 

the
extent GE has rights to) to Abbott and its Affiliates, a perpetual,
irrevocable,  worldwide, non-exclusive
and royalty-free right and license (with a right to grant sublicenses or
covenants not to sue for purposes of conducting Abbott’s and its Affiliates’
business) under the GE Mixed-Use Intellectual Property to (i) research,
develop, make, have made, use, sell, offer to sell, distribute, import, support
and otherwise dispose of products, methods and services covered by, and to use,
modify, reproduce, display, perform or prepare derivative works based on, the
GE Mixed-Use Intellectual Property in any field of use.  The foregoing license grants shall be (i)
effective immediately upon the Closing, and (ii) non-assignable, except in
connection with a transfer of any business in which such GE Mixed-Use
Intellectual Property is used (or a transfer of substantially all of the assets
of such business).  GE covenants not to
sue Abbott or its Affiliates for infringement of Business Intellectual Property
to the extent such infringement is due to making, using, marketing, offer for sale,
sale, importation, or export of products already marketed as of the Closing.

(d)        GE shall have
the first right, but not the obligation, to commence and prosecute any Action
involving the GE Mixed-Use Intellectual Property.  In such case, Abbott agrees to reasonably
cooperate with GE (and to the extent necessary to maintain standing, Abbott
agrees to be named as a party in such suit), at GE’s expense, to the extent GE
requires information in Abbott’s possession or control or requires other
reasonable assistance.  In addition, Abbott shall be
entitled to join in any such Action at its own expense.  Abbott shall have the first right, but not
the obligation, to commence and prosecute any Action involving the Abbott
Mixed-Use Intellectual Property.  In such
case, GE agrees to reasonably cooperate with Abbott (and to the extent
necessary to maintain standing, GE agrees to be named as a party in such suit),
at Abbott’s expense, to the extent Abbott requires information in GE’s
possession or control or requires other reasonable assistance.  In addition, GE shall be entitled to join in
any such Action at its own expense.  If
the party having the first right to commence any Action fails to commence such
Action within one hundred eighty (180) days after being notified thereof by the
other party, then the notifying party shall have the right, but not the
obligation, to commence and prosecute any such Action, at the expense of the
notifying party.  Any Action that a party
undertakes involving the Mixed-Use Intellectual Property shall not be settled
without the prior written consent of the other party, which consent shall not
be unreasonably withheld, conditioned or delayed.  Each party shall be entitled to retain any
and all amounts awarded to it in any such Action.  GE and Abbott shall use reasonable efforts to
keep each other reasonably informed of all settlement negotiations with third
Persons and of the progress of any litigation with third Persons regarding such
Actions.

(e)        Abbott and GE
shall each, at its sole discretion and option and at its sole expense, pay all
maintenance fees, maintain the existence and present status of any existing
registrations for, prosecute all pending applications for, the Abbott Mixed-Use
Intellectual Property and the GE Mixed-Use Intellectual Property, respectively,
and shall maintain the existence and status, as issued, of any patents issued
pursuant to any pending applications included within its Mixed-Use Intellectual
Property; provided, however, that the foregoing shall not require
either party to engage in any of the foregoing or to engage in litigation.  If either party: (i) elects not to pay any
applicable maintenance fees, (ii) elects not to prosecute any applications
for registration, or (iii) otherwise fails to maintain any registration or
application for any of its Mixed-Use Intellectual Property, then it shall
provide notice thereof to the other and the other shall then have, as its sole
remedy and at its own expense, the option to

 38
 

pay
the fee, or prosecute or maintain the Mixed-Use Intellectual Property that is
the subject of the notice.  If either
party exercises its option to prosecute and maintain any Mixed-Use Intellectual
Property of the other pursuant to the preceding sentence, it shall notify the
other thereof.

(f)         If the
parties identify any patent owned by Abbott that was used primarily in
connection with, or related primarily to, the Business at the time of Closing,
but was not included as Mixed-Use Intellectual Property, the parties shall
amend Schedule 7.6(c) to add such patent.  If the parties identify any patent assigned
to GE hereunder that was used primarily in connection with, or related
primarily to, one or more Abbott Other Business(es) at the time of Closing, the
parties shall amend Schedule 7.6(b) to add such patent.

                                7.7           Transition Services.  Following the Closing, (i) Abbott or
one or more of its Affiliates shall provide or make available to the Business
certain services, rights, properties and assets (to the extent Abbott or one of
its Affiliates has the right to) and (ii) GE or one or more of its Affiliates
shall provide or make available to the Abbott Other Businesses certain
services, rights, properties and assets (to the extent GE or one of its
Affiliates has the right to), in each case on the terms set forth in a
transition services agreement to be entered into at the Closing among Abbott
and, to the extent applicable, its Affiliates, and GE and, to the extent
applicable, its Affiliates (the “Transition Services
Agreement”), with respect to such matters and containing the terms
and provisions set forth on Schedule 7.7 and such other terms and
provisions with respect to Annexes A, B and C to Schedule
7.7 as the parties shall mutually agree in writing.

                                7.8           Further Action.

(a)        Each of
Abbott and GE shall use its commercially reasonable efforts to take, or cause
to be taken all appropriate action, to do or cause to be done all things
necessary, proper or advisable under applicable Law, the Contracts included in
the Purchased Assets or otherwise, and to execute and deliver such documents
and other papers and any other agreements, as may be necessary to carry out the
provisions of this Agreement and consummate and make effective the transactions
contemplated by this Agreement and to effect the separation of the Business and
the Purchased Assets from other Abbott assets, including obtaining all required
Consents from third Persons.  GE shall be
responsible for the payment of any amounts necessary to obtain any required Consents
from third parties.  Without limiting the
generality of the foregoing, Abbott and GE shall work diligently and in good
faith toward the execution of the Ancillary Agreements with such terms and
conditions required pursuant hereto and such other terms and conditions as are
mutually agreeable to the parties.  If
any Ancillary Agreement (other than the Transition Services Agreement, which
shall be executed at the Closing) is not finalized prior to the Closing, Abbott
and GE shall continue to work diligently and in good faith after the Closing
toward the execution of such Ancillary Agreement as promptly as practicable
following the Closing with such terms and conditions required pursuant hereto
and such other terms and conditions as are mutually agreeable to the parties.  Abbott shall, at Abbott’s cost, use
commercially reasonable efforts to cause the Business Intellectual Property and
the GE Mixed-Use Intellectual Property to be free and clear of liens, pledges,
security interests or other similar encumbrances capable of registration
against title at the Closing or as promptly as reasonably practical thereafter.

 39
 

(b)        Notwithstanding
anything in this Agreement to the contrary, this Agreement shall not constitute
an agreement to assign, license, sublicense or otherwise provide rights with
respect to any Purchased Asset or any right thereunder if an attempted
assignment, license or other provision, without the Consent of, or other action
by, any third Person, would constitute a breach or other contravention of a
Contract with such third Person or would in any way adversely affect the rights
of GE or Abbott or any of their respective Affiliates relating to such
Purchased Assets.  To the extent that any
of the transfers, distributions, licenses, deliveries and the assumptions
required to be made in connection with the transactions contemplated by this
Agreement shall not have been so consummated at Closing, the parties shall
cooperate and use their commercially reasonable efforts, subject to GE’s
payment of amounts necessary to obtain Consents, to effect such consummation as
promptly thereafter as reasonably practicable, executing and delivering such
further instruments of transfer and taking such other actions as the parties
may reasonably request in order to effectuate the purposes of this Agreement or
to more effectively transfer to GE or confirm GE’s right, title to or interest
in, all of the Purchased Assets, to put GE in actual possession and operating
control thereof and to permit GE to exercise all rights with respect thereto
(including rights under Contracts and other arrangements as to which the
Consent of any third Person to the transfer thereof shall not have previously
been obtained).  Except with respect to
the Retained Licenses and Excluded Agreements as set forth on Schedule
7.8(b), in the event and to the extent that Abbott and GE are unable to
obtain any required Consents, Abbott shall (i) continue to be bound
thereby pending assignment to GE, (ii) at the direction and expense of GE,
pay, perform and discharge fully all of its obligations thereunder from and
after the Closing and prior to assignment to GE and (iii) without further
consideration therefor, pay, assign and remit to GE promptly all monies, rights
and other consideration received in respect of such agreements.  Also, except for the Retained Licenses and
Excluded Agreements as set forth on Schedule 7.8(b), Abbott shall
exercise or exploit its rights and options under all such agreements, leases,
licenses and other rights and commitments when and only as reasonably directed
by GE.  If and when any such Consent
shall be obtained or such agreement, lease, license or other right shall
otherwise become assignable or sublicenseable, Abbott shall promptly assign or
sublicense its agreed-to rights and obligations thereunder to GE without payment
of further consideration and GE shall, without the payment of any further
consideration therefor, assume such rights and obligations.

(c)        In the event
that the parties determine that certain assets, rights or properties which
properly constitute Purchased Assets were not transferred to GE or one of its
Affiliates at Closing, Abbott shall promptly use its commercially reasonable
efforts to transfer and deliver any and all of such assets to GE or one of its
Affiliates without the payment by GE of any further consideration
therefor.  In the event that the parties
determine that certain Excluded Assets were transferred to GE or one of its
Affiliates at Closing, then GE shall promptly use its commercially reasonable
efforts to transfer and deliver any and all of such Excluded Assets to Abbott
or one of its Affiliates without the payment by Abbott of any further
consideration therefor.  The costs of
obtaining any Consents in connection with such transfer and delivery shall be
borne by the recipient of such assets.

(d)        In the event
that the parties determine that a Trademark (other than the Abbott Brands) is
used in the Business and was not transferred to GE pursuant to Section
2.1(A) or licensed to GE pursuant to Section 7.6(a) or Section
7.6(c), Abbott shall, if such Trademark is used primarily in connection
with or primarily related to the Business, assign

 40
 

all
right, title and interest in and to such Trademark to GE, and GE, on behalf of
itself and its Affiliates, shall grant to Abbott a license to use such
Trademark and variants thereof, which license shall have terms consistent with
the terms of the license granted in Section 7.6(c).

(e)        In the event
that the parties determine that a Trademark (other than the Abbott Brands) is
used in any Abbott Humanitarian Program and was transferred to GE pursuant to Section
2.1(A), such Trademark shall be licensed to Abbott and its Affiliates for
use in any Abbott Humanitarian Program; provided that GE would retain
all rights to such Trademark for the Business.

                                7.9           Mixed Contracts; Mixed Accounts.

(a)        Except as may
otherwise be agreed by the parties in writing, any Business Contract (other
than any Business Contracts that (A) are used exclusively in connection with,
or relate exclusively to, the Business, (B) expressly constitute Excluded
Assets or (C) to the extent not otherwise covered by clause (A) and (B), the
Retained Licenses and Excluded Agreements) to which Abbott or any of its
Affiliates is a party prior to the Closing, in each case, that inures to the
benefit or burden of each of the Business and the Abbott Other Businesses (a “Mixed
Contract”), shall, to the extent commercially reasonable, be separated (or,
with respect to Intellectual Property, to the extent not separable and to the
extent permitted, sublicensed) on or after the Closing, so that each of Abbott
and GE shall be entitled to the rights and benefits and shall assume the
related portion of any Liabilities inuring to their respective businesses.  If any Mixed Contract cannot be so separated
(or, with respect to Intellectual Property, to the extent not separable and to
the extent permitted, sublicensed), Abbott and GE shall, and shall cause each
of their respective Affiliates to, take such other commercially reasonable
efforts to cause (i) the rights and benefits associated with that portion of
each Mixed Contract that relates to the Business to be enjoyed by GE; (ii) the
Liabilities associated with that portion of each Mixed Contract that relates to
the Business to be borne by GE; (iii) the rights and benefits associated with
that portion of each Mixed Contract that relates to the Abbott Other Businesses
to be enjoyed by Abbott and (iv) the Liabilities associated with that portion
of each Mixed Contract that relates to the Abbott Other Businesses to be borne
by Abbott.  Abbott shall provide GE with
a copy of each Mixed Contract (it being understood that the parties shall use
commercially reasonable efforts to comply, where practicable, with any
applicable confidentiality provisions contained in such Mixed Contracts), and
the parties shall cooperate with each other to effect such separation.  The costs of such separation shall be borne
by the parties in proportion to the rights and benefits inuring to each of them
under the Mixed Contract.  To the extent
GE or its Affiliates’, or Abbott or its Affiliates’, exploitation of
Intellectual Property sublicensed to such party under this Section 7.9(a)
results in or otherwise contributes to an obligation by the other party or its
Affiliates (as sublicensor under this Section 7.9(a)), to make any
payments to a third Person, such sublicensee under this Section 7.9(a)
shall be responsible for all such payment obligations.  Notwithstanding the foregoing, with respect
to any Mixed Contract, Abbott may, in its sole discretion, elect in lieu of the
foregoing arrangements to assign its entire interest in any Mixed Contract to
GE subject to the provisions of Section 7.8 and the other terms hereof; provided,
however, that Abbott shall remain primarily liable for, and shall indemnify
the GE Indemnified Parties in respect of, any Liabilities thereunder to the
extent such Liabilities relate to the Excluded Businesses.

 

 41

(b)        Except as may
otherwise be agreed by the parties in writing, the parties shall not assign any
accounts receivable or accounts payable relating to both the Business and the
Excluded Assets (“Mixed Account”). 
Abbott and GE shall, and shall cause each of their respective Affiliates
to, take such reasonable and permissible actions to cause (i) the rights
and properties associated with that portion of each Mixed Account that relates
to the Business to be enjoyed by GE; (ii) the Liabilities associated with
that portion of each Mixed Account that relates to the Business to be borne by
GE; (iii) the rights and properties associated with that portion of each
Mixed Account that relates to the Excluded Assets to be enjoyed by Abbott; and
(iv) the Liabilities associated with that portion of each Mixed Account
that relates to the Excluded Assets to be borne by Abbott.

                                7.10         Third Person Claims Against Both the
Business and the Excluded Assets.

(a)        From and
after the Closing: (i) if Abbott or any of its Affiliates receives notice of
any Mixed Action or any Action from or involving any third Person that Abbott
believes is reasonably likely to involve the Business but as to which neither
GE nor any Affiliate of GE is a named party, then Abbott shall as promptly as
practicable provide GE with notice of such Action; and (ii) if GE or any of its
Affiliates receives notice of any Mixed Action or any Action from or involving
any third Person that GE believes is reasonably likely to involve Excluded
Assets or Excluded Liabilities but as to which neither Abbott nor any Affiliate
of Abbott is a named party, then GE shall as promptly as practicable provide
Abbott with notice of such Action.  For
purposes of this Agreement, “Mixed Action”
means any Action that a party believes is reasonably likely to: (i) include
both claims that give rise to a right of indemnification under Article 12 and claims as to which no right of
indemnification under Article 12 exists; or
(ii) include both claims that give rise to a right of indemnification under Article 12 of the GE Indemnified Parties and
claims that give rise to a right of indemnification under Article 12 of the Abbott Indemnified Parties.

(b)        Subject to Article 12, for any Mixed Action, whether arising
before or after the Closing, GE or its Affiliates shall have the right to
control the defense of such Mixed Action to the extent such Mixed Action
relates to the Business, the Purchased Assets or the Assumed Liabilities, and
Abbott or its Affiliates shall have the right to control the defense of such
Mixed Action to the extent such Mixed Action relates to Excluded Assets or
Excluded Liabilities.

(c)        Neither GE
nor its Affiliates shall settle any portion of a Mixed Action that relates to
Excluded Assets or Excluded Liabilities without the written consent of Abbott,
which may be withheld in its sole discretion. 
Neither Abbott nor its Affiliates shall settle any portion of a Mixed
Action that relates to the Business without the written consent of GE, which
may be withheld in its sole discretion. 
Subject to the provisions of Article 12:
(i) GE and its Affiliates may settle a Mixed Action to the extent it relates to
the Business without the consent of Abbott so long as such judgment or
settlement does not adversely impact the Excluded Assets; if it does adversely
impact the Excluded Assets, then the prior written consent of Abbott shall be
required, which consent may not be unreasonably withheld or delayed; and (ii)
Abbott and its Affiliates may settle a Mixed Action to the extent it relates to
Excluded Assets or Excluded Liabilities without the consent of GE so long as
such judgment or settlement does not

 42
 

adversely
impact the Business; if it does adversely impact the Business, then the prior
written consent of GE shall be required, which consent may not be unreasonably
withheld or delayed.

(d)        To the extent
the provisions of this Section 7.10 conflict with any provisions of the
Ancillary Agreements, the provisions of the Ancillary Agreements shall govern.

                                7.11         Intercompany Arrangements.  Immediately
prior to the Closing, Abbott shall, and shall cause its Affiliates to,
terminate all agreements or arrangements, written or unwritten, of any kind
(other than any Ancillary Agreements), between Abbott or any of its Affiliates,
on the one hand, and the Abbott Diagnostics Division Business or the Abbott
Point of Care Business, on the other hand.

                                7.12         Books, Records and Files.  GE
and Abbott agree that Abbott may maintain, subject to Section 7.2(b),
copies of any Books, Records and Files that are included in the Purchased
Assets and that are delivered to GE hereunder and Abbott may prepare a
comprehensive index and file plan of such Books, Records and Files.  GE agrees to retain and maintain such Books,
Records and Files for a period of at least seven (7) years after Closing (plus
any additional time during which GE has been advised by Abbott that (i) there
is an ongoing Tax audit with respect to periods prior to the Closing or (ii)
any such period is otherwise open to assessment; provided that only such
Books, Records and Files reasonably related to the appropriate Tax audit or
period as advised by Abbott shall be subject to such time extension).  During such period, GE agrees to give Abbott
and its representatives reasonable cooperation, access (including copies) and
staff assistance, as needed, during normal business hours and upon reasonable
notice, with respect to the Books, Records and Files delivered to GE hereunder,
and Abbott agrees to give GE and its representatives reasonable cooperation,
access and staff assistance, as needed, during normal business hours and upon
reasonable notice, with respect to the Books, Records and Files relating to the
Business and retained by Abbott, in each case as may be necessary for general
business purposes, including the defense of litigation, the preparation of Tax
returns and financial statements (including the Preliminary Closing Date
Balance Sheet and Closing Date Balance Sheet) and the management and handling
of Tax audits; provided that such cooperation, access and assistance
does not unreasonably disrupt the normal operations of GE or Abbott or their
respective Affiliates.

                                7.13         Non-Compete.  Other than with respect to (i) the Abbott
Diabetes Care Business and the Abbott Molecular Diagnostics Business, or (ii) Abbott’s
or its Affiliates’ support of the Business pursuant to the terms of the
Transition Services Agreement or their conduct of portions of the Business
pursuant to any Deferred Local Closing, the Delayed PR Closing or the
arrangements described on Schedule 7.8(b), for a period of five (5) years from
the Closing, Abbott shall not, and shall cause its Affiliates not to, directly
or indirectly, engage in any business anywhere in the world that competes with
all or any portion of the Business as of the Closing Date; provided
that, Abbott and its Affiliates shall not be deemed to be competing in
violation of this Section 7.13 by virtue of (i) its or their ownership
of less than five percent (5%) of the outstanding stock of any Person, (ii) the
acquisition of a business or entity that competes as contemplated by the
foregoing provisions of this Section 7.13; provided, that (i)
such acquired business or entity shall not be permitted to use any GE Mixed-Use
Intellectual Property and (ii) (A) the annual net sales of the portion of the
business or entity that so competes do not exceed

 43
 

twenty percent (20%) of the annual net sales of the
entire acquired business or entity as reported in the most recent full year
financial statements of such business or entity or (B) the annual net sales of
the portion of the business or entity that so competes do not exceed
$25,000,000 for the most recently completed fiscal year of such business or
entity prior to the acquisition or (iii) participating in any Abbott
Humanitarian Program.  In consideration
of the exception to the non-competition provisions contained in clause (iii)
of this Section 7.13, the parties agree that Abbott shall provide GE for
the term of the non-compete contained in this Section 7.13 with a good
faith right of first negotiation to be the provider of any human diagnostic or
point of care products that are manufactured or sold by the Business at such
time (other than any products that are manufactured or sold by the Abbott Other
Businesses or any products that are manufactured or sold by any business or
entity permitted to be acquired pursuant to the proviso of this Section 7.13)
supplied by Abbott through any Abbott Humanitarian Program.

                                7.14         Environmental Matters.

(a)        Environmental
Assessment.

(i)    GE
(at its sole cost) may retain an environmental consulting firm acceptable to
Abbott (whose acceptance shall not unreasonably be withheld) to undertake an
environmental review of the Owned Business Real Property or any of the Leased
Business Real Property.  At GE’s
discretion, such review shall generally be consistent with the scope of a Phase
I Environmental Assessment in accordance with ASTM E1527-05.  As soon as practicable after the date hereof,
GE shall have access to any of the Owned Business Real Property or Leased
Business Real Property and related personnel and records to undertake such
environmental review (the earlier of (i) the date that such on-site access is
first secured by GE or (ii) the fifth day following the date hereof shall be
the “Environmental Review Commencement Date”).  Such environmental consulting firm shall
prepare an executive summary chart or other written summary for each property
assessed which identifies any environmental condition that constitutes a
recognized environmental condition according to the ASTM E1527-05 standard, or
otherwise represents a Liability under Environmental Laws (collectively, “Environmental
Conditions”), and GE shall provide Abbott with copies of each such written
summary (“Environmental Summaries”).

(ii)   If
one or more Environmental Conditions for which cleanup or correction is
required under any Environmental Law are identified in any Environmental
Summary prepared in accordance with clause (a)(i) above and provided to Abbott
within thirty (30) days of the Environmental Review Commencement Date, and such
Environmental Condition, if confirmed (including pursuant to Phase II work
pursuant to Section 7.14(a)(iii) below), would result in any of the
representations and warranties in Section 5.4 to be inaccurate or breached
(considered for purposes of this Section 7.14 disregarding any
qualification or exception contained in any such representation or warranty
relating to Knowledge, materiality or Material Adverse Effect), GE may, at its
election, subject to any necessary confirmation pursuant to ­Section
7.14(a)(iii) below: (1) require Abbott to perform a cleanup or correction,
subject to the conditions and limitations set forth in clause (b) below, (2)
not take ownership of the property, if such property is Owned Business Real
Property, or lease of the property if such property is Leased Business Real
Property, in which case such property shall be leased, in the case of Owned
Business Real Property, or to the extent permitted, sub-leased, in the case of
Leased

 44
 

Business Real Property, from Abbott pursuant to a lease or
sub-lease containing the terms and provisions set forth on Schedule
7.14(a)(ii) and such other terms and provisions as the parties shall
mutually agree in writing, or (3) submit a GE claim for such inaccuracies or
breaches as provided in Section 12.2(a)(iv).  If no Environmental Conditions requiring
cleanup or correction under Environmental Laws are identified within thirty
(30) days of the Environmental Review Commencement Date, then Abbott shall have
no liability or obligation to GE pursuant to this Section 7.14 or Section
12.2(a)(iv) and all Owned Business Real Property and Leased Business Real
Property shall be transferred to GE. GE shall reimburse Abbott for its
necessary out-of-pocket costs of response (“Response Costs”) that Abbott
incurs arising out of any cleanup or correction of an Environmental Condition
undertaken by Abbott pursuant to Section 7.14(a)(ii)(1) or any Response
Costs that Abbott incurs for cleanup or correction of an Environmental Condition
required by GE, any Governmental Authority or applicable Environmental Law with
respect to property retained by Abbott pursuant to Section 7.14(a)(ii)(2)
and leased pursuant to Alternative “A” described in Schedule 7.14(a)(ii)
up to the first $100,000,000 of Response Costs less the amount of all other GE
Claims for indemnification prior thereto pursuant to Sections 12.2(a)(v)
and (vi) without regard to the limitation on recovery for the first
$100,000,000 of such claims contained therein and then for Response Costs to
the extent such Response Costs, plus the amount of all other GE Claims for
indemnification paid pursuant to Sections 12.2(a)(v) and (vi),
exceed $700,000,000.

(iii)  As
soon as practicable after receipt by Abbott of the Environmental Summaries
referred to above and prior to the Closing Date, GE (at its sole cost) may
retain an environmental consulting firm acceptable to Abbott (whose acceptance
shall not unreasonably be withheld) to conduct a Phase II Environmental
Assessment, the scope of which (1) shall be reasonably limited to investigation
and confirmation of the specific Environmental Conditions identified in the
Environmental Summaries, and (2) propose sampling locations and times
reasonably acceptable to Abbott (which approval shall not unreasonably be
withheld if reasonably warranted as a result of GE’s preliminary environmental
review).  In no event shall Abbott’s
review and approval unreasonably delay or constrain GE’s ability to perform any
confirmation reasonably required to secure the benefits of Section
7.14(a)(ii) above.

(iv)  Nothing
in this Section 7.14 shall be in limitation of GE’s right of access
pursuant to Section 7.2(a) to evaluate environmental matters relating to
the Business and the Purchased Assets even after the thirty (30) day period
provided for in Section 7.14(a)(ii) has expired; provided that,
except as provided in this Section 7.14 but without limiting any
provision of Section 10.2, Abbott shall have no further obligations with
respect to any actual or contingent Environmental Conditions identified in any
Phase I or Phase II Environmental Assessment prepared pursuant to Section
7.14(a)(i) or (iii) above.

(b)        Environmental
Procedures.

(i)    Subject
to the limitations set forth in clause (b)(ii) below and subject to any
reimbursement obligations of GE pursuant to clause (a)(ii) above, Abbott shall
assume sole responsibility for performing and for the necessary Response Costs
of performing any cleanup or correction that is required by Environmental Law
to address the Environmental Conditions identified in any Phase I or Phase II
Environmental Assessment prepared pursuant to clause (a)(i) or (iii) above to
the extent GE has so elected pursuant to Section 7.14(a)(ii)(1) above.

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GE shall grant Abbott, its representatives and contractors
reasonable access to the applicable Owned Business Real Property or Leased
Business Real Property (to the extent permitted by the applicable lease) to
perform any such cleanup or correction and Abbott shall use commercially
reasonable efforts to restore any adversely affected portion of the
property.  Abbott shall keep GE
reasonably apprised of the status of such environmental cleanup or correction,
shall provide GE with copies of any material correspondence and reports
relating thereto and shall not engage in exchanges of material information or
negotiations with any Governmental Authority without exercising reasonable best
efforts to first consult with GE.

(ii)   With
respect to Abbott’s cleanup obligations under clause (b)(i) above, Abbott shall
only be required to: (x) clean up the release of Hazardous Materials, to the
extent cleanup is required by an applicable Environmental Law that is in effect
and is enforceable as of the Closing Date; (y) achieve the least stringent
Remediation Standards that are applicable and acceptable to the relevant
Governmental Authority given the use of the Owned Business Real Property or
Leased Business Real Property as of the Closing Date; and (z) conduct a cleanup
using the most cost effective methods for investigation, removal, remediation
and/or containment consistent with applicable Environmental Law that do not
unduly interfere with GE’s ability to continue to use the affected property in
a manner consistent with Abbott’s prior use.

                                7.15         Puerto Rico.

(a)        From the
Closing or the Delayed PR Closing Date (as defined below), if applicable, until
March 1, 2009 (the “PR Employment Commitment Period”), GE and its
Affiliates shall employ in Puerto Rico, with respect to the portion of the
Business conducted in Puerto Rico that is being acquired by GE and its
Affiliates pursuant to this Agreement (the “Puerto Rico Business”), at
least the number of Non-U.S. Transferred Employees dedicated to the Puerto Rico
Business (“PR Employees”), subject to reduction as set forth in Schedule
7.15(a) (the “PR Employment Commitment”).  GE shall notify Abbott in the event that any
PR Employee voluntarily terminates employment or is terminated for cause, if
possible, seven (7) days prior to the employee’s termination date and in all events,
promptly after the date of termination. GE and its Affiliates shall be deemed
to satisfy the PR Employment Commitment with respect to any employee of the
Puerto Rico Business who voluntarily terminates employment or is terminated for
cause; provided  however, GE or any of its Affiliates shall use
commercially reasonable efforts to hire a replacement employee in Puerto Rico (“Replacement
Employee”) as soon as is commercially practical after the date of
termination of the PR Employee. GE shall notify Abbott when any Replacement
Employee is hired. Notwithstanding the foregoing, if the Puerto Rico Business
suffers any change, effect, occurrence, state of facts or development  that individually or in the aggregate is materially
adverse to the business, financial condition or results of operations of the
Puerto Rico Business, taken as a whole, and, in response to such change,
effect, occurrence, state of facts or development, GE or any of its Affiliates
intends to reduce the number of employees that are employed in the Puerto Rico
Business below the then-current PR Employment Commitment, GE shall be entitled
to reduce the number of employees accordingly so long as GE notifies Abbott at
least thirty (30) days prior to terminating any such PR Employees (in which case
Abbott shall have the option of hiring any such employees).  Notwithstanding anything in this Agreement or
the PR Deferred Closing Amendment (as defined below) to the contrary, the sole
remedy of Abbott and its Affiliates for

 46
 

breach
by GE or its Affiliates of this Section 7.15(a) shall be the Losses
incurred by Abbott or any of its Affiliates to employ sufficient persons in
Puerto Rico to satisfy any shortfall in the PR Employment Commitment, and in no
event shall GE or any of its Affiliates be liable for any increased Taxes of
Abbott or its Affiliates attributable to failure to satisfy the terms of the
Puerto Rico Grant.

(b)        GE shall use
its commercially reasonable efforts to cooperate with Abbott, at Abbott’s
expense, in Abbott’s efforts to obtain an amendment to the Puerto Rico Grant in
a form reasonably acceptable to Abbott (the “PR Amendment”) reflecting
the terms set forth in Schedule 7.15(b); provided, however,
that  GE shall
not be required to (i) pay any fees or other payments to any Governmental
Authorities in connection with such cooperation; (ii) except as provided in Section
7.16(a), alter or restrict in any way the business or commercial practices
of GE, any of its Affiliates or the Business, including the Puerto Rico
Business; or (iii) take any action that would preclude GE from taking into
account any PR Employees in its own grant with Puerto Rico.

(c)        Promptly
after the date hereof, Abbott and GE shall negotiate in good faith to enter
into agreements (the “PR Deferred Closing Agreements”), which agreements
shall effect the delay of the closing of the transactions contemplated hereby
in respect of the Puerto Rico Business (the “Delayed PR Closing”) until
the earlier of (i) three (3) Business Days after the PR Amendment is obtained
or (ii) December 31, 2007 (any such date referred to as the “Delayed PR
Closing Date”). The parties hereto shall make available to each other and,
if necessary to comply with the provisions of Section 7.15(c)(i), Ernst
& Young LLP such books, records and other information as any of the
foregoing may reasonably request to prepared the PR Deferred Closing
Agreements, in the case of Abbott and GE, and to determine the terms necessary
to effect the provisions of Section 7.15(c)(i), in the case of Ernst
& Young LLP.  The PR Deferred Closing
Agreements shall include provisions providing for:

(i)    any
Delayed PR Closing to be economically neutral to GE and its Affiliates as if
the Puerto Rico Business had been transferred to GE and its Affiliates at
Closing, including in respect of the operating margin and net income of GE and
its Affiliates in respect of the Puerto Rico Business for the period from the
Closing to the Delayed PR Closing;

(ii)   Abbott
or one of its Affiliates to retain ownership of the Purchased Assets and Assumed
Liabilities related to the PR Business;

(iii)  a
form of contract manufacturing agreement to be entered into between Abbott or
any of its Affiliates and GE or any of its Affiliates whereby Abbott or one of
its Affiliates shall perform manufacturing services specified by GE until the
earlier of the Delayed PR Closing Date or termination of such contract
manufacturing agreement, which agreement shall include the pricing and other
terms upon which Abbott or one of its Affiliates shall provide such services as
agreed to by Abbott and GE;

(iv)  covenants
governing the operation by Abbott and its Affiliates of the Puerto Rico
Business between the Closing and any Delayed PR Closing;

 47
 

(v)   the
conditions to the obligations of each of Abbott and GE to effect the Delayed PR
Closing;

(vi)  indemnification
by Abbott of the GE Indemnified Parties in respect of any and all Losses which
GE and its Affiliates may actually suffer or incur as a result of the Delayed
PR Closing (other than those Losses which GE and its Affiliates may have
already recovered by means of arrangements provided in the PR Deferred Closing
Agreements), including any Losses in respect of any failure of Abbott and its
Affiliates to deliver the Puerto Rico Business and the Purchased Assets related
thereto to GE or any of its Affiliates at the Delayed PR Closing, which
indemnification shall be treated as an indemnification pursuant to Section
12.2(a)(iii) and as to which Section 12.5(a) shall not apply; provided,
that GE shall permit Abbott or an independent accounting firm selected by
Abbott, subject to GE’s reasonable objection, to audit the books and records of
account of GE upon reasonable notice during reasonable business hours to
confirm any Losses claimed by GE pursuant to this Section 7.15(c)(vi);

(vii)   indemnification
by Abbott of the GE Indemnified Parties in respect of the Tax benefits GE and
its Affiliates would have realized had the transactions contemplated hereby in
respect of the Puerto Rico Business been effected in connection with the Closing,
which Losses Abbott and GE agree shall be $833,333 for each month between the
Closing and the Delayed PR Closing Date or, in the case of a partial month, the
pro-rated amount of such monthly agreed upon Loss;

(viii)   Abbott to
insure for the benefit of GE and its Affiliates the Puerto Rico Business and
the Purchased Assets related thereto consistent with Abbott’s practices; and

(ix)   such
other provisions as the parties shall mutually agree.

Unless Abbott shall have notified GE that it does not wish to effect a
Delayed PR Closing by March 12, 2007, if the parties shall have not agreed upon
the terms of the PR Deferred Closing Agreements described in Section
7.15(c)(i) by such date, terms necessary to effect the provisions of Section
7.15(c)(i) shall be determined by Ernst & Young LLP.  At the request of either party, Ernst &
Young LLP shall make its determination by March 26, 2007 and issue a written
report thereof, which report shall be attached to the PR Deferred Closing
Agreements and incorporated by reference therein as a binding agreement of
Abbott and GE.  Each of Abbott and GE
shall be afforded the opportunity to provide one (1) written and one (1) oral
submission to Ernst & Young LLP.

(d)        Unless Abbott
notifies GE on or prior to March 28, 2007 that it does not wish to effect a
Delayed PR Closing, the provisions of the PR Deferred Closing Agreements shall
become effective upon the Closing and the closing of the transactions
contemplated hereby in respect of the Puerto Rico Business shall be delayed until
the Delayed PR Closing Date.

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(e)        Notwithstanding
the foregoing, any conflict between the provisions of this Section 7.15
and Article 8 shall be resolved in favor of Article 8.  Failure of Abbott and GE to agree to terms of
the PR Deferred Closing Agreements or failure of Ernst & Young LLP to issue
the report contemplated by Section 7.15(c) by Closing shall not, in the
absence of bad faith, constitute a basis for either party not to effect the
Closing of the transactions contemplated by this Agreement, including in
respect of the Puerto Rico Business.

                                7.16         Certain Leased and Real Property
Sites.  Between signing and Closing
the parties shall work in good faith to determine whether the leased and real
property sites listed on Schedule 7.16 shall be deemed to be Leased
Business Real Property, Owned Business Real Property or retained by Abbott; provided,
that if the parties cannot agree whether such leased and real property sites
should be deemed to be Leased Business Real Property, Owned Business Real Property
or should be retained by Abbott, any property sites listed on Schedule 7.16
that are used primarily in connection with, or primarily related to, the
Business shall be deemed to be Leased Business Real Property or Owned Business
Real Property, as applicable, and any other property sites listed on Schedule
7.16 shall be retained by Abbott. 
Any site so designated as Leased Business Real Property or Owned
Business Real Property shall be added to Schedule 1.1(i) or Schedule
1.1(l), as applicable.  For purposes
of this Agreement, the Environmental Review Commencement Date with respect to
any property site listed on Schedule 7.16 and determined by Abbott and
GE to be Leased Business Real Property or Owned Business Real Property shall be
the fifth day following the date of such determination.

ARTICLE
8

EMPLOYEE
MATTERS

                                8.1           Transferred Employees.

(a)        Definitions.

(i)    “U.S.
Business Employee” means (A) any employee of the Business employed by an
employer domiciled in the United States (or an employee who is classified as an
expatriate employee) who (except as otherwise agreed to in writing by GE and
Abbott) primarily performs his or her services for or with respect to the
Business in the United States as of the Closing, and (B) any individual who is
a shared service employee primarily dedicated to the Business in the United
States as of the Closing, including in all cases any such employee who is
inactive because of leave of absence, vacation, holiday or short- or long-term
disability, but excluding employees set forth on Schedule 8.1(a)(i) — 1.  Schedule 8.1(a)(i) — 2 sets forth the
procedures for identifying all U.S. Business Employees prior to Closing.  Schedule 8.1(a)(i) — 1 and Schedule
8.1(a)(i) — 2 are attached.  A
preliminary list of all U.S. Business Employees shall be provided by Abbott to
GE as soon as reasonably practicable, and in no event later than thirty (30)
days after the signing of this Agreement, which such list shall be updated and
finalized at Closing.

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(ii)   “U.S.
Transferred Employee” means each U.S. Business Employee who shall commence
employment with GE or one of its Affiliates immediately following the Closing,
but excluding any U.S. Business Employee who is absent from active employment
as of the Closing due to long-term disability entitling the U.S. Business
Employee to long-term disability benefits under an applicable long-term
disability plan maintained by Abbott or any of its Affiliates.

(iii)  “Non-U.S.
Business Employee” means (A) any employee of the Business employed by an
employer domiciled outside the United States as of the Closing who (except as
otherwise agreed to in writing by GE and Abbott) primarily performs his or her
services for or with respect to the Business outside the United States as of
the Closing, and (B) any individual who is a shared service employee primarily
dedicated to the Business outside of the United States as of the Closing,
including in all cases any such employee who is inactive because of leave of
absence, vacation, holiday or short- or long-term disability.  Schedule 8.1(a)(iii) sets forth the
procedures for identifying all Non-U.S. Business Employees prior to
Closing.  Schedule 8.1(a)(iii) is
attached.  A preliminary list of all
Non-U.S. Business Employees shall be provided by Abbott to GE as soon as reasonably
practicable, and in no event later than thirty (30) days after the signing of
this Agreement, which such list shall be updated and finalized at Closing.

(iv)  “Non-U.S.
Transferred Employee” means (A) each Non-U.S. Business Employee whose
employment transfers to GE or one of its Affiliates by operation of Law, but
expressly excluding any person who refuses to transfer to GE or one of its
Affiliates on or before the Closing and who, by that refusal, prevents such
transfer from occurring by operation of Law, and (B) each other Non-U.S.
Business Employee who shall accept GE’s offer of employment by continuing
employment with GE or one of its Affiliates immediately following the Closing,
but excluding for this clause (B) any Non-U.S. Business Employee who is absent
from active employment as of the Closing due to long-term disability entitling
the Non-U.S. Business Employee to long-term disability benefits under an
applicable long-term disability plan maintained by Abbott or any of its
Affiliates.

(v)   “Business
Employees” means U.S. Business Employees and Non-U.S. Business Employees,
collectively.

(vi)  “Transferred
Employees” means U.S. Transferred Employees and Non-U.S. Transferred
Employees, collectively.

(b)        Transfer
of Employment.  As of the Closing, GE
shall commence to employ, or cause the applicable Affiliate to commence to
employ, any U.S. Business Employees.  As
of the Closing, in respect of any Non-U.S. Business Employee whose employment
shall not transfer automatically by operation of Law, GE shall, or shall cause
the applicable Affiliate to, commence to employ such Non-U.S. Business
Employee. The foregoing provisions of this Section 8.1(b) shall not be
applicable with respect to any Business Employee who is absent from active
employment as of the Closing due to long-term disability entitling the

 50
 

Business
Employee to long-term disability benefits under an applicable long-term
disability plan maintained by Abbott or any of its Affiliates.

                                8.2           Compensation and Employee
Benefits.

(a)        Compensation
and Benefits Comparability.  For a
period of two (2) years following the Closing, Transferred Employees who remain
in the employment of GE or any of its Affiliates shall receive (i) base salary
or wage rates and incentive compensation opportunity that, in the aggregate,
are not less than those in effect for each such Transferred Employee
immediately prior to Closing, (ii) employee benefits that, in the aggregate,
are reasonably comparable to those in effect for similarly situated recently
acquired employees of GE and (iii) severance benefits which are no less
favorable on an individual basis than the severance benefits that would have
been applicable to each such Transferred Employee under the Abbott or Abbott
Affiliate severance plans or individual agreements to the extent set forth on Schedule
8.2(a) (which Abbott shall provide GE as soon as reasonably practicable,
and in no event later than sixty (60) days after the signing of this Agreement
and Schedule 8.2(a) shall exclude any plan or agreement mandated by and
maintained solely pursuant to applicable Law), immediately prior to the
Closing, as the case may be, taking into account such Transferred Employee’s
additional period of service and rate of base pay or wages and bonus target
with GE or its Affiliates following the Closing.  Except as required by Law, nothing contained
in this Agreement shall be construed as requiring GE or one of its Affiliates
to continue the employment of any specific person.

(b)        Severance
Liabilities.  GE and its Affiliates
shall be solely responsible for any severance, redundancy or similar
termination payments or benefits that may become payable to any Transferred
Employee on or after the Closing, and GE shall indemnify Abbott and its
Affiliates from any and all Liabilities for such payments and benefits and
shall reimburse Abbott as set forth below. 
To the extent that Abbott or any of its Affiliates become liable for, or
are legally required to make, severance, redundancy or similar termination
payments or benefits to any Transferred Employee on or after the Closing, GE
shall, or shall cause its Affiliates to, reimburse Abbott, as soon as
practicable but in any event within thirty (30) days of receipt from Abbott of
appropriate verification, for all payments, costs and expenses actually paid by
Abbott or its Affiliates as required by applicable Law or any Contract.  Abbott and its Affiliates shall be solely
responsible for any severance, change in control, redundancy or similar
termination payments or benefits that may become payable to any Business
Employee who does not become a Transferred Employee, and Abbott shall indemnify
GE and its Affiliates from any and all Liabilities for such payments and
benefits and shall reimburse GE as set forth below.  To the extent that GE or any of its
Affiliates become liable for, or are legally required to make, severance,
change in control, redundancy or similar termination payments or benefits to
any Business Employee who does not become a Transferred Employee, Abbott shall,
or shall cause its Affiliates to, reimburse GE, as soon as practicable but in
any event within thirty (30) days of receipt from GE of appropriate
verification, for all payments, costs and expenses actually paid by GE or its
Affiliates as required by applicable Law or any Contract.

(c)        Service
Credit.  GE shall, and shall cause
its Affiliates to, recognize the prior service and seniority of each
Transferred Employee as if such service had been performed with, and such
seniority has been earned with, GE for purposes of eligibility,

 51
 

vesting
and service related level of benefits (excluding pension benefit accrual,
except as required by Law or pursuant to Section 8.4(a)) under the
employee benefit plans and policies provided by GE to the Transferred Employees
following the Closing, to the same extent such service and seniority is
recognized by Abbott or its Affiliates immediately prior to the Closing.

(d)        Welfare
Plans.  Except as otherwise required
by applicable law, (i) Abbott or one of its Affiliates shall retain
responsibility under the Abbott “employee welfare benefit plans” (as defined in
Section 3(1) of ERISA, whether or not such plan is subject to ERISA) in which
the Transferred Employees participate with respect to all welfare benefit
claims incurred by the Transferred Employees and their eligible dependents
prior to the Closing and (ii) GE or one of its Affiliates shall be responsible
for all welfare benefit claims incurred by Transferred Employees and their
eligible dependents on or after the Closing.   With respect to any “employee welfare benefit
plan” maintained by GE or any of its Affiliates in which Transferred Employees
are eligible to participate after the Closing, GE shall, and shall cause its
Affiliates to, (A) waive all limitations as to preexisting conditions and exclusions
with respect to participation and coverage requirements applicable to such
Transferred Employees to the extent such conditions and exclusions were
satisfied or did not apply to such Transferred Employees under the welfare
benefit plans maintained by Abbott or any of its Affiliates immediately prior
to the Closing and (B) provide each Transferred Employee with credit for any
co-payments and deductibles paid by such Transferred Employee in the plan year
in which the Closing occurs prior to the Closing in satisfying any analogous
deductible or out-of-pocket requirements to the extent applicable under any
such plan.  Effective as of the Closing,
GE and its Affiliates shall assume all obligations for providing coverage under
the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, to
Transferred Employees (and their eligible dependents), regardless of whether
the qualifying event giving rise to that coverage occurred prior to, on or
after the Closing.

(e)        Labor and
Employment Law Matters.  GE and
Abbott shall, and shall cause their Affiliates to, cooperate to take all steps,
on a timely basis, as are required under applicable Law to notify, consult
with, or negotiate the effect, impact, terms or timing of the transactions
contemplated by this Agreement with each works council, union, labor board,
employee group, or Governmental Authority where so required under applicable
Law.  GE and Abbott shall, and shall
cause their applicable Affiliates to, comply with all applicable Laws,
directives and regulations relating to the Transferred Employees, including
providing any required notice under the Worker Adjustment and Retraining
Notification Act, as amended, and any similar foreign, state or local law.

(f)         Incentive
Compensation.  GE shall, and shall
cause its Affiliates to, continue each performance period in effect at the
Closing under each incentive compensation bonus plan in which any Transferred
Employee participates, with appropriate adjustment (as determined by Abbott and
GE in good faith) to the applicable performance targets to take into account
the transactions contemplated by this Agreement.  GE shall, and shall cause its Affiliates to,
make such bonus payments at the time prescribed by the applicable plan as in
effect immediately prior to the Closing and in accordance with the historical
past practices under such plan as in effect immediately prior to the
Closing.  In no event shall the aggregate
amount of bonus paid with respect to such performance periods be less than the
amount accrued for and reflected in the Closing Date Balance Sheets.

 

 52

(g)        Flexible
Spending Account.  Effective as of
the Closing, GE and its Affiliates shall have in effect flexible spending
reimbursement accounts under a cafeteria plan qualifying under Section 125 of
the Code (the “GE FSA Plan”) and each U.S. Transferred Employee shall be
eligible as of the Closing to participate in a GE FSA Plan pursuant to the
terms of such plan.  Effective as of the
Closing, GE and its Affiliates shall cause the GE FSA Plan to accept a spin-off
of the health care flexible spending reimbursement accounts of each U.S.
Transferred Employee who participates in the Abbott or Abbott Affiliate
cafeteria plan (the “Abbott FSA Plan”) immediately prior to the Closing
and to honor and continue through December 31 of the year in which the Closing
occurs the elections made by each U.S. Transferred Employee under the Abbott
FSA Plan in respect of such health care flexible spending reimbursement
accounts that are in effect immediately prior to the Closing.  As soon as practicable following the date of
Closing, Abbott shall cause to be transferred from the Abbott FSA Plan to the
GE FSA Plan the excess, if any, of the aggregate accumulated contributions to
the health care flexible spending reimbursement accounts made by U.S.
Transferred Employees prior to the Closing during the year in which the Closing
occurs over the aggregate reimbursement payouts paid to the Transferred
Employees for such year from such accounts. 
From and after the Closing, GE shall assume and be solely responsible
for all claims by U.S. Transferred Employees under the Abbott FSA Plan’s health
care flexible spending reimbursement accounts incurred at any time during the
calendar year in which the date of Closing occurs, whether incurred prior to,
on or after the date of Closing, that have not been paid in full as of the date
of Closing.  Abbott shall maintain and
continue to process claims related to the 2006 plan year for such Abbott FSA
Plan in accordance with the plan terms. For Transferred Employees located in
Puerto Rico who are receiving comparable flexible spending reimbursement
account benefits, Abbott and GE shall use commercially reasonable efforts to
effect a similar transfer of assets for such benefits.

                                8.3           U.S. Defined Benefit Pension Plans.
Effective as of the Closing, GE shall establish or designate defined benefit
pension plans that are intended to be qualified under Code Section 401(a)
(collectively, the “U.S. GE Pension Plans”) for the benefit of the U.S.
Transferred Employees.  Each U.S.
Transferred Employee as of the Closing shall be a participant in a U.S. GE
Pension Plan pursuant to the terms of such plan; provided, that such
participant makes contributions required in order to participate in the U.S. GE
Pension Plan.

                                8.4           Non-U.S. Defined Benefit Pension
Plans.

(a)        Effective as
of the Closing, GE shall establish or designate defined benefit pension plans
(collectively, the “Non-U.S. GE Pension Plans”) for the benefit of the
Non-U.S. Transferred Employees who participated in one or more of the defined
benefit pension plans maintained by Abbott or its Affiliates immediately prior
to the Closing (collectively, the “Abbott Pension Plans”).  Such Non-U.S. Transferred Employees are
referred to hereinafter as the “Pension Plan Employees.”  Each Non-U.S. GE Pension Plan shall provide
benefit formulas and provisions that are equivalent in value to the benefit
plan formulas and provisions in the corresponding Abbott Pension Plan as of the
Closing and GE shall either continue such Non-U.S. GE Pension Plan on the same
basis, or offer comparable retirement benefits (with no reduction, in either
case, in employer-paid value, based on comparability standards used by
nationally recognized benefits consulting firms) to the Pension Plan Employees,
for a period of at least two years immediately following the Closing.  The Pension

 53
 

Plan Employees shall be given credit under the
respective Non-U.S. GE Pension Plan for all service with and compensation from
Abbott or its Affiliates as if it were service with and compensation from GE
for purposes of determining eligibility, vesting and the amount of any benefits
or benefit accruals under each respective Non-U.S. GE Pension Plan.  Each Non-U.S. GE Pension Plan shall provide,
upon the transfer of assets referred to below (or, if there is no transfer of
assets with respect to a particular plan because the plan is not required to be
funded under applicable Law, as of the Closing), that the accrued benefits for
the Pension Plan Employees under such Non-U.S. GE Pension Plan shall in no
event be less than their accrued benefits under the corresponding Abbott
Pension Plan as of the Closing.

(b)        With respect
to any Abbott Pension Plan maintained outside of the United States (other than
any Abbott Pension Plan maintained in the United Kingdom), Abbott shall use
commercially reasonable efforts to cause to be transferred from the trusts
under such Abbott Pension Plan to the trusts under the corresponding Non-U.S.
GE Pension Plan assets in the form of cash, cash equivalents and marketable
securities, the value of which shall be equal to: (i) the actuarial present
value of accrued (and not projected) benefits (that is, the “accumulated
benefit obligation” as defined in Statement of Financial Accounting Standards
No. 87, “ABO”) under such Abbott Pension Plan as of the date of Closing that
are attributable to Pension Plan Employees divided by the ABO of all
participants in such Abbott Pension Plan as of the date of Closing, multiplied
by the market value of the assets of such Abbott Pension Plan at the date of Closing,
provided that such transferred amount shall not, in any event, exceed
the ABO under such Abbott Pension Plan of all Pension Plan Employees as of the
date of Closing, or (ii) such greater amount as is required by the applicable
regulatory authority having jurisdiction over the Abbott Pension Plan in order
to obtain approval for the transfer. 
With respect to any Abbott Pension Plan maintained in the United
Kingdom, Abbott shall use commercially reasonable efforts to cause to be
transferred from the trusts under such Abbott Pension Plan to the trusts under
the corresponding Non-U.S. GE Pension Plan assets in the form of cash, cash
equivalents and marketable securities, the value of which shall be equal to the
actuarial present value of projected benefits (that is, the “projected benefit
obligation” as defined in Statement of Financial Accounting Standards No. 87, “PBO”)
under such Abbott Pension Plan as of the date of Closing that are attributable
to Pension Plan Employees divided by the PBO of all participants in such Abbott
Pension Plan as of the date of Closing, multiplied by the market value of the
assets of such Abbott Pension Plan at the date of Closing, provided that
such transferred amount shall not, in any event, exceed the PBO under such
Abbott Pension Plan of all Pension Plan Employees as of the date of
Closing.  The amounts determined in
accordance with the preceding sentences of this Section 8.4(b) are
collectively referred to as the “Pension Transfer Amounts”.  The transfer of the Pension Transfer Amounts,
and the assumption by GE of Liabilities with respect to or relating to the
Non-U.S. Transferred Employees under the applicable Abbott Pension Plans, shall
be subject to such consents, approvals and other legal requirements as may
apply under applicable Law, including the consent of the Non-U.S. Transferred
Employee to the extent required by applicable Law.  GE shall use its best efforts to cause the
corresponding Non-U.S. GE Pension Plans to accept the Pension Transfer
Amounts.  To the extent the trustees or
managers of an Abbott Pension Plan do not transfer the Pension Transfer Amount
calculated with respect to that plan (as adjusted in accordance with Section
8.4(d) below), Abbott shall or shall cause the difference between the
Pension Transfer Amount (as adjusted in accordance with Section 8.4(d)
below) and the amount actually transferred to be paid to GE, or to such other
Person or plan as GE shall direct, no later than thirty (30) days after Abbott’s
receipt of

 54
 

notification
from the trustees or managers of the amount that they have transferred.  To the extent an Abbott Pension Plan is not
required to be funded by applicable Law, there shall be no transfer of assets
by the Abbott Pension Plan or Abbott. 
Actuarial determinations shall be made in accordance with Section
8.4(g) below.

(c)        As of the
date of Closing, Abbott shall cause the Non-U.S. Transferred Employees to cease
further accrual of benefits under the Abbott Pension Plans.

(d)        The
Pension Transfer Amount, if any, from each Abbott Pension Plan shall be
equitably adjusted to take into account benefit payments made from the Abbott
Pension Plans to the Pension Plan Employees after the Closing but prior to the
date of transfer and for any earnings and losses on such amount during such period.  The Pension Transfer Amount, if any, shall be
determined by the actuaries for the applicable Abbott Pension Plans in
accordance with Section 8.4(g) below.

(e)        Subject to
such consents, approvals and other legal requirements as may apply under
applicable Law, Abbott shall use commercially reasonable efforts to cause the
transfer of the Pension Transfer Amounts to take place within one hundred and
eighty (180) days after the date of Closing.

(f)         At the times
of the transfers of the Pension Transfer Amounts (or if there is no transfer of
assets with respect to a particular plan because the plan is not required to be
funded under applicable Law, at the Closing), GE and the Non-U.S. GE Pension
Plans shall assume all Liabilities for all accrued benefits, including all
disability, part-time and other ancillary benefits, under the corresponding
Abbott Pension Plans in respect of the Non-U.S. Transferred Employees whose
benefits are transferred, and Abbott and its Affiliates and the corresponding
Abbott Pension Plans shall be relieved of all Liabilities to provide benefits
under the Abbott Pension Plans to the Non-U.S. Transferred Employees whose
benefits are transferred.  From and after
the date of such applicable transfer of the Pension Transfer Amounts (or if there
is no transfer of assets with respect to a particular plan because the plan is
not required to be funded under applicable Law, from and after the Closing), GE
agrees to indemnify and hold harmless Abbott and its Affiliates and its and
their officers, directors, employees, and agents from and against any and all
costs, damages, losses, expenses, or other Liabilities arising out of or
related to the Non-U.S. Transferred Employees whose benefits under the Abbott
Pension Plans are transferred to the Non-U.S. GE Pension Plans.

(g)        For purposes
of this Section 8.4, actuarial determinations shall be based upon the
actuarial assumptions and methodologies used in preparing the most recent
audited financial statements of Abbott as of the date of the determination.  The applicable plan sponsor of the plans
shall cause the plan actuary or administrator to provide a report of its
determination of such amount within 90 days of the Closing and any back-up
information reasonably required by GE to confirm the accuracy of such
determination.  If GE disputes the
accuracy of the calculation, GE and Abbott shall cooperate to identify the
basis for such disagreement and act in good faith to resolve such dispute.  To the extent that a dispute is unresolved
after a 45 day period following identification of such dispute, the
calculations shall be verified by an independent third party benefits consulting
firm selected by the mutual

 55
 

agreement
of the parties.  The decision of such
consulting firm shall be final, binding and conclusive on all parties to this
Agreement.  GE and Abbott shall share
equally the costs of such consulting firm.

                                8.5           U.S. Defined Contribution Plans.

(a)        Effective as
of the Closing, GE shall establish or designate defined contribution plans that
are intended to be qualified under Code Section 401(a) (collectively, the “U.S.
GE DC Plans”) for the benefit of the U.S. Transferred Employees.  Each U.S. Transferred Employee as of the
Closing shall be eligible to participate in a U.S. GE DC Plan pursuant to the
terms of such plan.

(b)        Each U.S. GE
DC Plan shall provide for the receipt in cash from U.S. Transferred Employees
of “eligible rollover distributions” (as such term is defined under Section 402
of the Code).  As soon as practicable
following the Closing Date, GE shall provide Abbott with such documents and
other information as Abbott shall reasonably request to assure itself that the
U.S. GE DC Plans are tax-qualified and provide for the receipt of eligible
rollover distributions.  Each U.S.
Transferred Employee shall be given the opportunity to receive a distribution
of his or her account balance under any Abbott defined contribution plan that
is intended to be qualified under Code Section 401(a) shall be given the
opportunity to elect to “roll over” such account balance to a U.S. GE DC Plan,
subject to and in accordance with the provisions of such plan(s) and applicable
Law.  GE and Abbott shall work together
in order to facilitate any such distribution or rollover and to effect an
eligible rollover distribution for those U.S. Transferred Employees who elect
to rollover their account balances directly into a U.S. GE DC Plan.

                                8.6           Non-U.S. Defined Contribution
Plans.

(a)        Effective as
of the Closing, GE shall establish or designate defined contribution plans (collectively,
the “Non-U.S. GE DC Plans”) for the benefit of the Non-U.S. Transferred
Employees who participated in one or more of the defined contribution plans
(other than a Transferred Abbott DC Plan) maintained by Abbott or its
Affiliates immediately prior to the Closing outside the United States
(collectively, the “Non-U.S. Abbott DC Plans”).  Such Non-U.S. Transferred Employees are
referred to hereinafter as the “DC Employees”.  Each Non-U.S. GE DC Plan shall provide
employer matching contribution formulas and provisions that are equivalent in
value to the employer matching contribution formulas and provisions in each
corresponding Non-U.S. Abbott DC Plan as of the Closing and GE shall either
continue such formulas or offer comparable retirement benefits to DC Employees
for a period of at least two years immediately following the Closing.  The DC Employees shall be given credit under
the respective Non-U.S. GE DC Plan for all service with and compensation from
Abbott or its Affiliates as if it were service with and compensation from GE
for purposes of determining eligibility, vesting and the amount of any benefits
or benefit accruals under each respective Non-U.S. GE DC Plan.

(b)        With respect
to a Non-U.S. Abbott DC Plan, Abbott shall cause the transfer under each such
Non-U.S. Abbott DC Plan to the corresponding Non-U.S. GE DC Plan of cash or
cash equivalents equal to the actual account balances of the DC Employees under

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each
such Non-U.S. Abbott DC Plan as of the Closing or such greater amount as is required
by the applicable regulatory authority having jurisdiction over the Non-U.S.
Abbott DC Plan in order to obtain approval of such transfer (the “DC
Transfer Amount”).  The transfer of
the DC Transfer Amounts shall be subject to such consents, approvals and other
legal requirements as may apply under applicable Law.  GE shall use commercially reasonable efforts
to cause the DC Transfer Amounts to be accepted by such plans.  To the extent a Non-U.S. Abbott DC Plan is
not required to be funded by applicable Law, there shall be no transfer of
assets.

(c)        The DC
Transfer Amounts to be transferred, if any, from the respective Non-U.S. Abbott
DC Plans shall be equitably adjusted to take into account benefit payments made
from the respective Non-U.S. Abbott DC Plans to the DC Employees after the
Closing but prior to the date of transfer and for any earnings and losses on
such amount during such period.  The
transfer of the DC Transfer Amount, if any, shall take place within one hundred
and eighty (180) days after the date of Closing.

(d)        At the times
of the transfers of the DC Transfer Amounts (or if there is no transfer of
assets with respect to a particular plan because the plan is not required to be
funded under applicable Law, at the Closing), GE and the Non-U.S. GE DC Plans
shall assume all Liabilities with respect to or relating to Non-U.S.
Transferred Employees under the applicable Non-U.S. Abbott DC Plan and Abbott
and its Affiliates and the Non-U.S. Abbott DC Plans shall be relieved of all
such Liabilities under such Non-U.S. Abbott DC Plan with respect to the
Non-U.S. Transferred Employees.  From and
after the date of the transfer of the DC Transfer Amount (or if there is no
transfer of assets with respect to a particular plan because the plan is not
required to be funded under applicable Law, as of the Closing), GE agrees to
indemnify and hold harmless Abbott and its Affiliates and its and their
officers, directors, employees, and agents from and against any and all costs,
damages, losses, expenses, or other Liabilities arising out of or related to
the Non-U.S. Transferred Employees under the applicable Non-U.S. Abbott DC
Plans.

                                8.7           U.S. Retiree Medical and Life.

(a)        Abbott shall
extend retiree health and life insurance coverage under the retiree health and
life insurance plans provided by Abbott and its Affiliates (the “Abbott
Retiree Welfare Plans”) to each U.S. Transferred Employee (including any of
his or her eligible dependents) who, as of the Closing, is eligible for such
coverage under the Abbott Retiree Welfare Plans.  Each U.S. Transferred Employee not described
in the foregoing sentence shall, for eligibility purposes only (but not level
of benefits or employee contributions), be credited with up to an additional
three years of age and service under the Abbott Retiree Welfare Plans, but only
to the extent such additional years are required for such U.S. Transferred
Employee to become eligible for coverage under the Abbott Retiree Welfare Plans
(each U.S. Transferred Employee who, by reason of the additional crediting of
age or service hereunder, becomes eligible to participate in the Abbott Retiree
Welfare Plans, a “Transitional Retiree”).  Notwithstanding the foregoing, only actual
years of service with Abbott and its Affiliates prior to the Closing shall be
taken into account for purposes of determining employee contribution levels
under the Abbott Retiree Welfare Plans; provided, however, that
Transitional Retirees who have less than ten years of service with Abbott and
its Affiliates as of the Closing shall be eligible for benefits under the
Abbott Retiree Welfare Plans at the employee contribution level for

 57
 

employees
with ten years of service (as in effect from time to time) under such
plans.  Each Transitional Retiree shall
be eligible to elect commencement of coverage under the Abbott Retiree Welfare
Plans after the later of (i) attainment of age 50 and (ii) the tenth
anniversary of the date of commencement of the Transitional Retiree’s service
(for purposes of the Abbott Retiree Welfare Plans) with Abbott or its
Affiliates.  Any post-retirement
healthcare and life insurance coverage provided to Transitional Retirees (and
his or her eligible dependents) shall be subject in all respects to the terms
and conditions of the Abbott Retiree Welfare Plans as in effect from time to
time.  Abbott shall be solely liable for
any such post-retirement healthcare and life insurance coverage.

(b)        Abbott
expressly reserves the right to amend, alter, modify or terminate the terms of
the Abbott Retiree Welfare Plans, as the case may be, at any time and to
interpret the provisions of those plans with respect to its employees, the
Transitional Retirees and all of its other former employees and their
respective dependents; provided, however, that Abbott agrees that
any amendments, alterations, modifications, or terminations with respect to
those plans shall be applied in a consistent manner to Abbott retirees and
Transitional Retirees who are eligible for coverage under those plans.  Abbott shall not be responsible or otherwise
liable for the provision of post-retirement healthcare and life insurance
coverage to any U.S. Transferred Employees other than as expressly provided in
this Section 8.7.

                                8.8           Deferred Compensation. Abbott
shall retain responsibility under all deferred compensation and supplemental
retirement arrangements that are not intended to be qualified under Section
401(a) of the Code with respect to the benefits of the U.S. Business Employees,
including the U.S. Transferred Employees. 
Abbott shall have no responsibility with respect to deferred
compensation and supplemental retirement arrangements created after the Closing
for the benefit of the U.S. Transferred Employees.

                                8.9           Equity Compensation.

(a)        Effective as
of the Closing, the Abbott Compensation Committee shall take the necessary
actions on or prior to the Closing solely with respect to Transferred Employees
under the equity plans and programs established by Abbott (the “Abbott Stock
Plans”) to provide that (i) each outstanding stock option to purchase one
or more common shares of Abbott (each, an “Abbott Option”) which is not
exercisable as of the Closing shall become exercisable as of the Closing and
(ii) the restrictions on each share of Abbott restricted stock (each, a share
of “Abbott Restricted Stock”) and each restricted stock unit (each, an “Abbott
RSU”) shall lapse as of the Closing. 
Each Abbott Option, each share of Abbott Restricted Stock and each RSU
held by a Transferred Employee who has not, as of the Closing, attained the age
of 50 or has less than ten years of service with Abbott or any of its
Affiliates, shall be treated in accordance with the applicable terms of the
applicable Abbott Stock Plans.  Each
Transferred Employee who has, as of the Closing, attained the age of 50 and has
ten or more years of service with Abbott or any of its Affiliates, shall be
treated as a “retiree” under and in accordance with the applicable terms of the
applicable Abbott Stock Plans.

(b)        ESPP.  Effective as of the Closing, each Transferred
Employee who participates in an employee stock purchase plan maintained by
Abbott or its Affiliates immediately prior to the Closing (the “Abbott ESPPs”)
shall cease participation in the applicable

 58
 

Abbott
ESPPs and shall have his or her payroll deductions refunded by Abbott as soon
as administratively practicable in accordance with the terms of the Abbott
ESPPs.  As of the Closing, Transferred
Employees shall be eligible to participate in the employee stock purchase plans
sponsored by GE in accordance with the terms of such plans.

                                8.10         U.S. Career Transition Incentive.  As soon as reasonably practicable, and in no
event later than sixty (60) days after Closing, Abbott and its actuaries shall
calculate the aggregate bonus amount (the “Bonus Amount”) for all U.S.
Transferred Employees who have attained at least age 40 as of the Closing
(each, a “CTI Employee”) and shall notify GE of such calculations (the “Notification”),
providing GE relevant back-up information reasonably required to confirm the
accuracy of such calculation.  The Bonus
Amount shall be equal to or greater than the aggregate incremental increase in
the “accumulated benefit obligations” (as defined in Statement of Financial
Accounting Standards No. 87) as of the Closing under the Abbott Pension Plans
maintained in the United States (the “U.S. Abbott Pension Plans”) and
under the supplemental pension arrangements that are not intended to be
qualified under Section 401(a) of the Code maintained by Abbott or its
Affiliates (the “Abbott NQ Plans”), assuming an increase in the present
value of the accrued benefits (but excluding any increase attributable to
interest) under the U.S. Abbott Pension Plans and Abbott NQ Plans over a three
year period for all CTI Employees, calculated using the actuarial assumptions
and methodologies that were used in preparing the most recent audited financial
statements of Abbott.  The Bonus Amount
shall not, in any event, exceed $75,000,000.  If GE disputes the accuracy of the
calculation, it shall notify Abbott of such dispute within two (2) weeks after
the date of the Notification and GE and Abbott shall cooperate to identify the
basis for such disagreement and act in good faith to resolve such dispute.  To the extent that a dispute is unresolved,
the accuracy of the calculations shall be verified no later than three (3)
weeks after the date of the Notification by an independent third party benefits
consulting firm selected by the mutual agreement of the parties.  The decision of such consulting firm shall be
final, binding and conclusive on all parties to this Agreement.  GE and Abbott shall share equally the costs
of such consulting firm.  Within thirty
(30) days of GE’s receipt of the Notification, GE shall pay each CTI Employee a
cash payment representing an appropriate share of the Bonus Amount based on the
foregoing calculations under this Section 8.10.

                                8.11         Mutual Non-Hire.  Without the
prior written consent of GE, neither Abbott nor any of its Affiliates shall,
for a period of two (2) years following the Closing, hire, whether as an
employee or independent contractor, any person who is a Transferred Employee.  Without the prior written consent of Abbott,
neither GE nor any of its Affiliates shall, on behalf of GE Healthcare, for a
period of two (2) years following the Closing, hire, whether as an employee or independent contractor, (i) any person
who was employed by Abbott or any of its Affiliates in the Business but who is
not a Transferred Employee and who is employed by Abbott, (ii) any person who
was employed by Abbott or any of its Affiliates in the Business but who is not
a Transferred Employee and who resigned or retired from Abbott six (6) months
prior to the Closing or (iii) any person who is employed by Abbott in the
Abbott Diabetes Care Business or the Abbott Molecular Diagnostics
Business.  Without the prior written
consent of Abbott, neither GE nor any of its Affiliates shall hire any employee
of Abbott or any Affiliate of Abbott with whom GE came into contact in
connection with the negotiation of this Agreement or the related integration
and transition matters associated with the transactions contemplated by this
Agreement. Any exceptions to the foregoing sentences shall be jointly approved
by Abbott’s

 59
 

Senior Vice President, Human Resources and GE
Healthcare’s Senior Vice President, Human Resources, or their delegates.

                                8.12         Deferred Closing Jurisdictions.  For purposes of this Article 8, in
respect of any Deferred Closing Jurisdiction, (a) subject to clause (d) below,
GE and Abbott shall mutually agree in good faith on appropriate arrangements to
continue the Abbott compensation and employee benefits (including statutory
arrangements) for the Business Employees as of the Closing (unless otherwise
agreed by GE or required by applicable Law), at the expense of GE, until the
date of the Deferred Local Closing or such other date as may be agreed upon by
GE and Abbott, (b)  except to the extent
otherwise required by applicable Law, Business Employees in any Deferred
Closing Jurisdiction shall not become Transferred Employees until the Deferred
Local Closing, (c) any Pension Transfer Amount and any DC Transfer Amount shall
be determined as of the applicable Deferred Local Closing, in the same manner
as provided in Sections 8.4(b) and 8.6(b), respectively, and,
subject to such consents, approvals and other legal requirements as may apply
under applicable Law, Abbott shall use commercially reasonable efforts to cause
the transfer of any Pension Transfer Amount and any DC Transfer Amount to take
place within 180 days of the applicable Deferred Local Closing, in each case
after taking into account adjustments for earnings, gains/losses and benefit
payments after the applicable Deferred Local Closing but prior to the date of
transfer, in the same manner as provided in Sections 8.4(d) and 8.6(c),
respectively, and (d) any required adjustments to implement this Article 8
with respect to such jurisdiction, including in respect of the timing and
manner of payments between Abbott, GE or any of their respective Affiliates,
shall be set forth in the business transfer agreement applicable to the
Deferred Closing Jurisdiction.

                                8.13         Puerto Rico.  In the event of a Delayed PR Closing pursuant
to Section 7.15 of this Agreement, for purposes of applying this Article
8 to Business Employees in Puerto Rico, the terms “Closing” and “Closing
Date” shall mean the “Delayed PR Closing” and the “Delayed PR Closing Date”,
respectively.

ARTICLE
9

TAXES

                                9.1           Abbott and GE Indemnities.

(a)        Abbott and
its Affiliates shall be liable for and pay, and pursuant to Article 12,
shall indemnify and hold harmless the GE Indemnified Parties against any and
all Losses (as such terms are defined in Section 12.2(a)) incurred by
such GE Indemnified Party in connection with or arising from (i) all Taxes
applicable to the Business, the Purchased Assets and the Assumed Liabilities
that are attributable to the Pre-Closing Tax Period; and (ii) all Taxes arising
from any action required or contemplated by Section 7.11 hereof relating
to Intercompany Arrangements; provided, however, that Abbott
shall not be liable for and not be required to indemnify against (x) any Taxes
(other than Income Taxes) set forth on the Closing Date Balance Sheet, unless
such Taxes in the aggregate exceed the aggregate amount of such Taxes set forth
on the Closing Date Balance Sheet (the aggregate of the Taxes (other than
Income Taxes) set forth on the Closing Date Balance Sheet, “Excluded Taxes”)
or (y) any and all

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Losses
related to Taxes described in (i) or (ii) above (other than such Taxes themselves)
for which GE or its Affiliates are responsible for filing the applicable Tax
Return except to the extent that such Losses arise out of the action or
inaction of Abbott or any of its Affiliates.

(b)        GE and its
Affiliates shall be liable for and pay, and pursuant to Article 12 shall
indemnify the Abbott Indemnified Parties with respect to, any Excluded Taxes
and any and all Losses related thereto (other than such Excluded Taxes
themselves) arising out of the action or inaction of GE or any of its Affiliates.

                                9.2           Apportionment of Taxes.

(a)        With respect
to any Tax Return for any Straddle Period related to the Business or the
Purchased Assets, the party responsible for preparing such Tax Return shall, to
the extent permitted by Law, elect to treat the Closing Date as the last day of
the taxable year or period and shall apportion any Taxes arising out of or
relating to a Straddle Period to the Pre-Closing Tax Period and the
Post-Closing Tax Period under a “closing-of-the-books” method as described in
Treasury Regulation Section 1.1502-76(b)(2) (or any similar provision of state,
local or foreign Law).  In any case where
applicable Law does not permit the relevant party to treat the Closing Date as
the last day of the taxable year or period, any Taxes arising out of or
relating to a Straddle Period shall be apportioned to the Pre-Closing Tax
Period and the Post-Closing Tax Period based on such a closing-of-the-books
method; provided, however, that (i) exemptions, allowances or
deductions that are calculated on an annualized basis (including depreciation,
amortization and depletion deductions) shall be apportioned on a daily pro rata
basis, (ii) solely for purposes of determining the marginal tax rate applicable
to income during such period in a jurisdiction in which such tax rate depends
upon the level of income, annualized income shall be taken into account, and
(iii) Real Property Taxes and personal property Taxes shall be allocated in
accordance with the principles set forth in Section 9.2(b).

(b)        All personal
property Taxes, Real Property Taxes and similar ad valorem obligations levied
with respect to the Purchased Assets or the Business for a Straddle Period
shall be apportioned between the Pre-Closing Tax Period and Post-Closing Tax
Period based on the number of days included in each such period.

                                9.3           Tax Return Filing and Amendment.

(a)        With respect
to any Tax Return for a Pre-Closing Tax Period and for a Straddle Period
relating to the Business or the Purchased Assets that has not been filed on or
before the Closing Date, the party that is obligated to file such Tax Return
under applicable Law shall prepare and file, or cause to be prepared and filed,
such Tax Return and pay, or cause to be paid, all Taxes shown as due thereon.

(b)        The party
preparing and filing a Tax Return described in Section 9.3(a) that
includes a Pre-Closing Tax Period for which indemnification may be required
under Article 12 or the party filing an amendment to such Tax Return,
shall deliver, not less than thirty (30) days prior to the due date on which
the Tax Return shall be filed, to the other party (against whom a claim for
indemnification may be made under Article 12 as a result of the filing
of such Tax Return or amended Tax Return) a statement setting forth the amount
of Taxes for

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which
such other party may be liable under Article 12 (as determined below),
and copies of such Tax Returns.  Such
other party shall have the right to review and comment on the form and
substance of such statement and Tax Returns. 
Abbott and GE agree to consult and resolve in good faith any issue
arising as a result of the review of such statement and Tax Returns.
Notwithstanding the indemnification claim procedure set forth in Sections
12.2 and 12.3, no later than five (5) days prior to the due date for
the filing of each such Tax Return, the non-filing party shall pay to the party
filing such Tax Return an amount equal to the amount such party is liable for
under Article 12 if the amount of Taxes reflected on such Tax Return
were the final amount of Taxes owing with respect to such Tax Return under
applicable Law. Any Tax Return to be prepared and filed under this Section 9.3
shall, to the extent permitted by applicable Law, be prepared on a basis
consistent with the last previous Tax Return relating to the Business or the
Purchased Asset.  Any Tax Return prepared
pursuant to this Section 9.3 shall not be dispositive of the amount of
Taxes allocable to the Pre-Closing Tax Period for each such Tax Return for
purposes of determining the amount of 
liability under Section 12.2(a)(ii) or Section 12.3(a)(iv),
if Abbott and GE are unable to resolve their differences regarding such Tax
Return prior to filing.

(c)        If there
shall be any conflicts between the provisions of this Section 9.3 and Section
9.7 (relating to Conveyance Taxes), the provisions of Section 9.7
shall control with respect to Conveyance Taxes.

                                9.4           Refunds.  Abbott shall be entitled to retain or, to the
extent actually received by, or credited to, GE or its Affiliates, receive
immediate payment from GE or any of its Affiliates  of, any refund or credit with respect to
Taxes (including refunds arising by reason of amended Tax Returns filed after
the Closing or otherwise) with respect to any Pre-Closing Tax Period relating
to the Purchased Assets or the Business except to the extent such Taxes (or
refunds or credits with respect to such Taxes) are reflected on the Closing
Date Balance Sheet.  GE shall be entitled
to retain or, to the extent actually received by, or credited to, Abbott or its
Affiliates, receive immediate payment from Abbott or any of its Affiliates of,
any refund or credit with respect to Taxes (including refunds arising by reason
of amended Tax Returns filed after the Closing or otherwise) with respect to
any Post-Closing Tax Period relating to the Purchased Assets or the Business or
with respect to Taxes, refunds or credits that are reflected on the Closing
Date Balance Sheet.  Abbott shall
cooperate with GE to enable GE to obtain any refund or credit with respect to
Taxes to the extent such refund or credit is reflected on the Closing Date
Balance Sheet and GE shall cooperate with Abbott in securing any refund or
credit of Taxes to which Abbott would be entitled under this Section 9.4.  Any refund or credit of Taxes with respect to
a Straddle Period shall be apportioned to the Pre-Closing and Post-Closing Tax
Periods in accordance with the principles set forth in Section 9.2.  Except to the extent applicable Law requires
otherwise, the party receiving the refund shall treat the receipt of such
payment as not constituting income subject to Tax.  Any payment made pursuant to this Section
9.4 shall be net of any Taxes imposed on the payor as a result of its
receipt of such refund increased by any Tax benefit to which the payor becomes
entitled as a result of the payment made pursuant to this Section 9.4.

                                9.5           Resolution of Tax Controversies.  If a claim shall be made by any Governmental
Authority or taxing authority that might result in an indemnity payment under Section
12.2(a)(ii) or Section 12.3(a)(iv), the party that would be required
to pay such amount shall promptly be notified by the party entitled to such
indemnity to the extent that the

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Governmental Authority or taxing authority did not
notify the indemnifying party of such claim, provided that, failure to
comply with this provision shall not affect the right to indemnification
hereunder except to the extent such failure materially impairs the indemnifying
party’s ability to contest any such Tax liabilities.  In the event that a Governmental Authority or
a taxing authority determines a deficiency in any Tax, the party ultimately
responsible for such Tax under this Agreement, whether by indemnity or
otherwise, shall have authority to determine whether to dispute such deficiency
determination and to control the prosecution or settlement of such dispute; provided
that with respect to Straddle Periods, Abbott and GE shall jointly control the
dispute.  The party that is not
ultimately responsible for such Tax under this Agreement shall have the right
to participate at its own expense in the conduct of any such proceeding
involving a Tax claim that would, if the relevant taxing authority were
successful in asserting its claim, adversely affect such party.

                                9.6           Tax Cooperation.  Abbott and GE agree to furnish or cause to be
furnished to the other party, upon request, as promptly as practical, such
information and records and assistance (including making such of their
respective officers, directors, employees and agents available as may
reasonably be requested by such other party) in connection with the preparation
of any Tax Return, audit or other proceeding that relates to the Purchased
Assets or the Business.  Any expense
incurred in providing such information or assistance shall be borne by the
party requesting it.

                                9.7           Conveyance Taxes.

(a)        Notwithstanding
any other provision of this Agreement to the contrary, all transfer,
documentary, recording, sales, use, registration, stamp and other similar Taxes
(including all applicable real estate transfer Taxes, but excluding any Taxes
based on or attributable to income or capital gains) together with any
conveyance fees, notarial and registry fees and recording costs (including any
penalties and interest thereon) imposed by any taxing authority or other
Governmental Authority with respect to the transfer of the Purchased Assets and
the Business to GE or its Affiliates pursuant to this Agreement (the “Conveyance
Taxes”) shall be borne by GE and its Affiliates, regardless of which party
is obligated to pay (or has paid) such Taxes under applicable Law, provided
that the excess of such Conveyance Taxes over $100,000,000 shall be borne
equally by GE and its Affiliates, on the one hand, and Abbott and its
Affiliates on the other hand, regardless of which party is obligated to pay (or
has paid) such Taxes under applicable Law.

(b)        Each of
Abbott and GE shall prepare and file, or cause to be prepared and filed, all
Tax Returns relating to Conveyance Taxes that such party (or its Affiliates) is
obligated to prepare and file under applicable Law and shall pay, or cause to
be paid, all Taxes shown as due thereon. 
The filing party shall use commercially reasonable efforts to provide
the Tax Returns with respect to Conveyance Taxes it (or any of its Affiliates)
is obligated to file to the non-filing party at least ten (10) days prior to
the due date for the filing of such Tax Returns (taking into account any valid
extension).  Abbott and GE shall
cooperate to timely file all necessary Tax Returns and other documentation with
respect to all such Conveyance Taxes, and, if required by applicable Law, the
parties shall, and shall cause their Affiliates to join in the execution of any
such Tax Returns and other documentation. 
GE and Abbott agree to cooperate

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to use
any available methods permitted under applicable Law to minimize the liability
for Conveyance Taxes.

(c)        Within sixty
(60) days following the Closing Date, GE and Abbott shall exchange information
regarding the total amount of Conveyance Taxes paid by it and its Affiliates
and the date upon which such Conveyance Taxes were paid.  If the parties’ total combined liabilities
for Conveyance Taxes amount to a sum of less than $100,000,000, GE shall
reimburse Abbott for all Conveyance Taxes paid by Abbott and its Affiliates
pursuant to this Section 9.7.  If,
on the other hand, such total exceeds $100,000,000, GE and Abbott shall
reimburse one another as appropriate so that, in the aggregate, GE bears at
least but no more than (x) $100,000,000 of Conveyance Taxes plus (y) 50% of the
total Conveyance Taxes in excess of $100,000,000 and so that Abbott bears all
remaining Conveyance Taxes.  Appropriate
adjustments shall be made to such reimbursements to reflect any changes in
Conveyance Taxes after such sixty (60) day period.  Any payment required to be made under this Section
9.7(c) from Abbott to GE or from GE to Abbott shall bear interest at the
Agreed Rate from the date the applicable Conveyance Tax was paid until the date
of payment under this Section 9.7(c). 
For purposes of such interest calculation, it shall be assumed that GE
was responsible for the first $100,000,000 in Conveyance Taxes paid, based on
the date of payment, and that GE and Abbott were each responsible for 50% of
any remaining Conveyance Taxes paid on or after the date total Conveyance Taxes
exceeded $100,000,000.

                                9.8           Survival of Obligations.  Notwithstanding anything to the contrary in
this Agreement, and notwithstanding Article 12, the obligations of the
parties set forth in this Article 9 shall be unconditional and absolute
and shall remain in effect without limitation as to time.

ARTICLE
10

CONDITIONS

                                10.1         Conditions to Obligations of Abbott.  The obligations of Abbott to consummate the
transactions contemplated by this Agreement shall be subject to fulfillment at
or prior to the Closing of the following conditions (any one or more of which
may be waived in whole or in part by Abbott):

(a)        Representations,
Warranties and Covenants.  Each of
the representations and warranties of GE contained in this Agreement shall be
true and correct in all material respects as of the Closing, with the same
force and effect as if made as of the Closing (other than such representations
and warranties as are made as of another date, which shall be true and correct
in all material respects as of such date), except in either case where any
failure of such representations and warranties to be so true and correct would
not materially delay or prevent the consummation of the transactions
contemplated hereby in accordance with the terms hereof, and the covenants and
agreements contained in this Agreement to be complied with by GE on or before
the Closing shall have been complied with in all material respects, and Abbott
shall have received a certificate signed on behalf of GE by an officer of GE to
such effect.

 

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(b)        Governmental
Approvals.  Any waiting periods (and
any extension thereof) under the HSR Act and the EC Merger Regulation
applicable to the purchase of the Business contemplated by this Agreement shall
have expired or shall have been terminated and the approval of the transactions
contemplated by this Agreement under the Competition/ Investment Laws of the
jurisdictions listed on Schedule 10.1(b) shall have been obtained.

(c)        No Order.
No Governmental Authority in any Major Jurisdiction or the European Union shall
have enacted, issued, promulgated, enforced or entered any Governmental Order
(whether temporary, preliminary or permanent) that has the effect of making the
transactions contemplated by this Agreement illegal or otherwise prohibiting
the consummation of such transactions in such Major Jurisdiction or the
European Union, as applicable, that is continuing as of the Closing Date.

                                10.2         Conditions to Obligations of GE.  The obligations of GE to consummate the
transactions contemplated by this Agreement shall be subject to fulfillment at
or prior to the Closing of the following conditions (any one or more of which
may be waived in whole or in part by GE):

(a)        Representations,
Warranties and Covenants.  Each of
the representations and warranties of Abbott contained in this Agreement,
disregarding all qualifications and exceptions contained therein relating to “materiality”
or “Material Adverse Effect”, shall be true and correct as of the Closing, with
the same force and effect as if made as of the Closing (other than such
representations and warranties as are made as of another date, which shall be
true and correct as of such date), except where any failure of such
representations and warranties to be so true and correct would not result in a
Material Adverse Effect, and the covenants and agreements contained in this
Agreement to be complied with by Abbott on or before the Closing shall have
been complied with in all material respects, and GE shall have received a
certificate signed on behalf of Abbott by an officer of Abbott to such effect.

(b)        Governmental
Approvals.  Any waiting periods (and
any extension thereof) under the HSR Act and the EC Merger Regulation
applicable to the purchase of the Business contemplated by this Agreement shall
have expired or shall have been terminated and the approval of the transactions
contemplated by this Agreement under the Competition/ Investment Laws of the
jurisdictions listed on Schedule 10.1(b) shall have been obtained.

(c)        No Order.  No Governmental Authority in any Major
Jurisdiction or the European Union shall have enacted, issued, promulgated,
enforced or entered any Governmental Order (whether temporary, preliminary or
permanent) that has the effect of making the transactions contemplated by this
Agreement illegal or otherwise prohibiting the consummation of such
transactions in such Major Jurisdiction or the European Union, as applicable,
that is continuing as of the Closing Date.

(d)        Material
Adverse Effect.  Since the
Performance Balance Sheet Date, a Material Adverse Effect (other than any
change, effect, event, occurrence, state of facts or development that is
identified on Schedule 5.3,  5.4,
5.8,  5.9, 5.10, 5.11,
5.13(b) or 5.13(c) of the Company Disclosure Schedule) shall not
have occurred and be continuing.

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ARTICLE
11

TERMINATION

                                11.1         Termination.  This Agreement may be terminated at any time
prior to the Closing in the following circumstances:

(a)        by the mutual
written consent of Abbott and GE;

(b)        by either
Abbott or GE by written notice to the other, if the Closing shall not have
occurred by July 18, 2007 (the “Outside Date”);
provided, however, that either
Abbott or GE may, in its sole discretion, by written notice to the other elect
to extend the Outside Date for one (1) ninety (90) day extension period if the
Closing has not occurred due to the failure of the condition set forth in Section
10.1(b), in the case of Abbott, or the condition set forth in Section
10.2(b), in the case of GE; provided  further  that, the right to terminate this
Agreement under this Section 11.1(b) shall
not be available to any party whose failure to fulfill any obligation under
this Agreement shall have been the cause of, or shall have resulted in, the
failure of the Closing to occur on or prior to such date; and

(c)        by either
Abbott or GE by written notice to the other in the event that any Governmental
Order of any Governmental Authority in a Major Jurisdiction or the European
Union restraining, enjoining or otherwise prohibiting the transactions
contemplated by this Agreement in such jurisdiction shall have become final and
non-appealable.

                                11.2         Effect of Termination.  In the event of termination of this Agreement
as provided in Section 11.1, this Agreement shall forthwith become void
and there shall be no liability on the part of either party hereto except (a)
as set forth in Section 7.2 and Article 13 and (b) that nothing
herein shall relieve either party from liability for any willful breach of this
Agreement occurring prior to such termination.

ARTICLE
12

INDEMNIFICATION
AND SURVIVAL

                                12.1         Survival of Representations and
Warranties.  The representations and
warranties contained in Section 5.1 (Performance Financial Statements), Section
5.2 (Sufficiency of Assets), Section 5.3 (Title), Section 5.4
(Environmental Matters) and Section 5.11 (Fraud and Abuse Statutes) and
the covenants and obligations of the parties hereto contained in this Agreement
shall survive the consummation of the transactions contemplated by this
Agreement as provided in this Article 12.  Except as provided in the immediately
preceding sentence, the representations and warranties of the parties hereto
contained in this Agreement shall terminate at the Closing.

                                12.2         Indemnification by Abbott.

(a)        Abbott’s
Indemnity.  From and after the
Closing, Abbott shall indemnify and hold harmless GE and its Affiliates,
officers, directors, agents, successors and 

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assigns
(the “GE Indemnified Parties”) from and against all losses, Liabilities,
costs and expenses (including reasonable attorneys’ fees) (collectively, “Losses”)
which GE or its Affiliates may actually suffer or incur to the extent arising
out of or related to:

(i)    the Excluded
Liabilities;

(ii)   Taxes,
Conveyance Taxes and any other amounts for which Abbott is liable pursuant to Article
9; provided, however, that Abbott shall not be liable for any
Losses related to Taxes described in Section 9.1(a)(i) or (ii)
(other than such Taxes themselves) for which GE or its Affiliates are
responsible for filing the applicable Tax Return, except to the extent such Losses
arise out of the action or inaction of Abbott or any of its Affiliates;

(iii)  failure
by Abbott or any of its Affiliates to perform any of their covenants or
agreements contained in this Agreement;

(iv)  any
inaccuracies in or breaches by Abbott, specifically identified by GE as
Environmental Conditions pursuant to Section 7.14(a)(ii) within thirty
(30) days after the Environmental Review Commencement Date, of the
representations and warranties contained in Section 5.4 (considered for
these purposes, disregarding any qualification or exception contained in any
such representation or warranty relating to materiality or Material Adverse
Effect) (unless GE shall have exercised its option under clause (1) or (2) of Section
7.14(a)(ii));

(v)   any
inaccuracies in or breaches by Abbott of the representations and warranties
contained in Section 5.11 (considered for these purposes, disregarding
any qualification or exception contained in any such representation or warranty
relating to materiality or Material Adverse Effect) (A) that are specifically
identified by GE in writing within thirty (30) days after the date of this
Agreement in a notice that identifies the specific practices or condition that
give rise to such inaccuracy or breach and provides an undertaking by GE that
it shall not continue such practice or condition after Closing, (B) that are
first discovered by, or made to known to, GE after the date of this Agreement,
(C) that Abbott is unable to remedy prior to the Closing and (D) with respect
to which the practices or conditions giving rise to such inaccuracy or breach
are not reasonably expected to be continued by GE after Closing (if after the
Closing, GE does continue such practices or conditions giving rise to such
inaccuracy or breach, Abbott shall not be required to indemnify GE for such
inaccuracy or breach or, if Abbott has previously indemnified GE with respect
thereto, GE shall be required to reimburse Abbott for the amount of such
indemnification payment); or

(vi)  any
inaccuracies in or breaches by Abbott of the representations and warranties
contained in Sections 5.1, 5.2 or 5.3 (considered for
these purposes (other than with respect to Section 5.1), disregarding
any qualification or exception contained in any such representation or warranty
relating to materiality or Material Adverse Effect);

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and, in each such case,
for which GE gives Abbott written notice of a claim for reimbursement following
Closing in accordance with Section 12.2(b) (a “GE Claim”);  provided that with respect to indemnification by
Abbott for any GE Claim (X) pursuant to Sections 12.2(a)(iv), (v) and (vi),
Abbott shall not be liable unless the aggregate amount of Losses for all GE
Claims under Sections 12.2(a)(iv), (v) or (vi) exceeds
$100,000,000 less the amount of any reimbursement by GE for Response Costs
pursuant to Section 7.14(a)(ii) and then only to the extent of such
excess and (Y) Abbott’s maximum liability for GE Claims under Sections
12.2(a)(iv), (v) and (vi) shall not exceed $600,000,000 in
the aggregate, less the amount of any Response Costs incurred by Abbott
pursuant to Section 7.14(a)(ii) (it being understood that, with respect
to a breach of the warranty or inaccuracy of the representations contained in Section
5.1, the term “in all material respects” shall be disregarded in
determining the amount of Losses incurred by any GE Indemnified Party in
connection therewith or arising therefrom).

(b)        Notice of
Claims.  Any GE Indemnified Party
seeking indemnification under Section 12.2(a) shall provide a notice to
Abbott in writing describing in reasonable detail the facts giving rise to any
claim for indemnification and the amount sought to be reimbursed; provided
that, such notice shall be given promptly following the assertion of any
Third-Party Claim, or the commencement of any Action, in respect of which
indemnity may be sought under Section 12.2(a) and such GE Indemnified
Party shall provide Abbott such information (if then known) with respect
thereto that Abbott may reasonably request; provided that Abbott shall have
no Liability with respect to any claim for indemnification pursuant to Section
12.2(a) for which Abbott did not promptly receive written notice from such
GE Indemnified Party, to the extent Abbott shall have been prejudiced thereby;
and provided  further, that Abbott shall have no Liability with
respect to any claim for indemnification pursuant to (x) clause (iv) of Section
12.2(a) for which Abbott did not receive such specific written notice from
GE within thirty (30) days after the applicable Environmental Review
Commencement Date, (y) clause (v) of Section 12.2(a) for which Abbott
did not receive such specific written notice from GE within thirty (30) days
after the date of this Agreement or for which the Loss shall not have
occurred within eighteen (18) months after the Closing Date or (z) clause (vi)
of Section 12.2(a) for which Abbott did not receive such specific
written notice from GE within twelve (12) months after the Closing Date.  No GE Indemnified Party shall admit any
Liability with respect to, or settle, compromise or discharge, any such matter
covered by this Section 12.2 without Abbott’s prior written consent
(which shall not be unreasonably withheld or delayed).  Subject to the immediately preceding
sentence, the GE Indemnified Party shall have the right, with the consent of
Abbott (which shall not be unreasonably withheld or delayed), to settle all
indemnifiable matters related to Third-Party Claims which are susceptible to
being settled, and to defend (without the consent of Abbott) through counsel of
its own choosing any Action which may be brought by a third Person in
connection therewith; provided, however, that Abbott shall have
the right to have its counsel participate fully in such defense at its own
expense.  GE and Abbott shall keep each
other reasonably informed of all settlement negotiations with third Persons
regarding the provisions hereof and of the progress of any litigation with
third Persons regarding the provisions hereof. 
GE and Abbott shall permit each other reasonable access to books and
records and otherwise cooperate with all reasonable requests of each other in
connection with any indemnifiable matter resulting from a claim by a third
Person.

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                                12.3         Indemnification by GE.

(a)        GE’s
Indemnity.  From and after the Closing,
GE shall indemnify and hold harmless Abbott and its Affiliates, officers,
directors, agents, successors and assigns and, solely with respect to Losses
arising out of or related to the Consent Decree, any Abbott Consent Decree
Defendants that are not otherwise identified in this clause (a) above (all such
parties are collectively referred to as the “Abbott Indemnified Parties”)
from and against and in respect of all Losses which Abbott and its Affiliates
may actually suffer or incur to the extent arising out of or related to:

(i)    the
Assumed Liabilities (except to the extent GE is entitled to indemnification
with respect thereto pursuant to Section 12.2(a)(iv), (v) or (vi));

(ii)   failure
by GE or any of its Affiliates to perform any of their covenants or agreements
contained in this Agreement;

(iii)  any
Liabilities arising from the operation of the Business on or after the Closing
(other than the Excluded Liabilities), and, in each such case, for which Abbott
gives GE written notice of a claim for reimbursement following Closing in
accordance with Section 12.3(b); or

(iv)  Taxes,
Conveyance Taxes and any other amounts for which GE is liable pursuant to Article
9; provided, however, that GE shall not be liable for any
Losses related to Taxes described in Section 9.1(b) (other than such
Excluded Taxes themselves) except to the extent such Losses arise out of the
action or inaction of GE or any of its Affiliates.

(b)        Notice of
Claims.  Any Abbott Indemnified Party
seeking indemnification under Section 12.3(a) shall promptly upon
becoming aware of any such matters provide a notice to GE in writing describing
in reasonable detail the facts giving rise to any claim for indemnification; provided
that GE shall have no Liability with respect to any claim for indemnification
pursuant to Section 12.3(a) for which GE did not promptly receive
written notice from such Abbott Indemnified Party to the extent GE shall have
been prejudiced thereby.  No Abbott
Indemnified Party shall admit any Liability with respect to, or settle,
compromise or discharge any such matter covered by this Section 12.3
without GE’s prior written consent (which shall not be unreasonably withheld or
delayed).  Subject to the immediately
preceding sentence, the Abbott Indemnified Party shall have the right, with the
consent of GE (which shall not be unreasonably withheld or delayed), to settle
all indemnifiable matters related to Third-Party Claims which are susceptible
to being settled, and to defend (without the consent of GE) through counsel of
its own choosing, any Action which may be brought by a third Person in
connection therewith; provided, however, that GE shall have the
right to have its counsel participate fully in such defense at its own
expense.  GE and Abbott shall keep each
other reasonably informed of all settlement negotiations with third Persons
regarding the provisions hereof and of the progress of any litigation with
third Persons regarding the provisions hereof. 
GE and Abbott shall permit each other reasonable access to books and
records and otherwise cooperate with all reasonable requests of each other in
connection with any indemnifiable matter resulting from a claim by a third
Person.

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                                12.4         Exclusive Remedy.  Except as otherwise set forth in Section
13.11 or as otherwise set forth in any Ancillary Agreement, from and after
the Closing, the rights and remedies set forth in this Article 12 shall
constitute the sole and exclusive rights and remedies of GE and Abbott with
respect to this Agreement, the events giving rise to this Agreement and the
transactions contemplated hereby. 
Without limiting the generality of the foregoing, neither party shall
have any rights to set-off indemnifiable Losses pursuant to this Article 12
against other obligations owed to the other party.

                                12.5         Calculation of Damages.

(a)        Notwithstanding
anything to the contrary contained in this Agreement, neither party shall have
Liability under or in connection with any claim for indemnification pursuant to
this Article 12 for any claim (i) for punitive, incidental,
consequential, lost profits, special or indirect damages or (ii) with respect
to claims made by a GE Indemnified Party, to the extent such claim is reserved
as a dollar amount on the Closing Date Balance Sheet.

(b)        Notwithstanding
anything contained herein to the contrary, the amount of any Losses incurred or
suffered by a GE Indemnified Party or an Abbott Indemnified Party entitled to
indemnification hereunder pursuant to Section 12.2(a) or Section
12.3(a), as applicable, shall be calculated after giving effect to: (i) any
insurance proceeds received by such Person (or any of its Affiliates) with
respect to such Losses; (ii) any Tax benefit or detriment actually realized by
such Person (or any of its Affiliates) arising from the facts or circumstances
giving rise to such Losses or from receipt of the indemnity payment; and (iii)
any recoveries obtained by such Person (or any of its Affiliates) from any
other third Person.  Each such Person
shall exercise its commercially reasonable efforts to obtain such proceeds,
benefits and recoveries.  If any such
proceeds, benefits or recoveries are received by such Person (or any of its
Affiliates) with respect to any Losses after such Person (or any Affiliate) has
received the benefit of any indemnification hereunder with respect thereto,
such Person (or such Affiliate) shall pay to the party providing such
indemnification the amount of such proceeds, benefits or recoveries, less such
Person’s expenses (up to the amount of the indemnification payment).

(c)        Abbott shall
not be liable under Section 12.2 for any Losses (nor shall any such
Losses reduce the $100,000,000 deductible provided in clause (x) of the last
paragraph of Section 12.2(a)) relating to any matter to the extent that
any GE Indemnified Party was reimbursed for such Losses pursuant to the
purchase price adjustment set forth in Section 3.3 or would have been
reimbursed for such Losses pursuant to such adjustment if the Minimum Net Worth
Amount used in calculating such adjustment was $2,078,228,000.

                                12.6         Tax Treatment of Indemnity Payments.  For all Tax purposes, the parties agree to
treat all payments made under any indemnity provisions contained in this
Agreement as adjustments to the Purchase Price, except to the extent applicable
Law requires otherwise.

 70
 

ARTICLE
13

MISCELLANEOUS

                                13.1         Assignment.  This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
assigns; provided, however, that no assignment shall be made by
either party without the prior written consent of the other party.  Notwithstanding the foregoing, either party
may assign its rights and obligations under this Agreement without such consent
to an Affiliate or in connection with a sale, merger or other transaction
involving a transfer of substantially all of its assets; provided  that,
such assigning party shall remain primarily liable for its obligations
hereunder.

                                13.2         Public Announcements.  Neither party shall issue nor make any public
announcement, press release or other public disclosure regarding this Agreement
or its subject matter without the other party’s prior written consent, except
for any such disclosure that is, in the opinion of the disclosing party’s
counsel, required by applicable Law or the rules of a stock exchange on which
the securities of the disclosing party are listed.  In the event a party is, in the opinion of
its counsel, required to make a public disclosure by applicable Law or the
rules of a stock exchange on which its securities are listed, such party shall,
to the extent practicable, submit the proposed disclosure in writing to the
other party prior to the date of disclosure and provide the other party a
reasonable opportunity to comment thereon.

                                13.3         Expenses.  Whether or not the transactions contemplated
hereby are consummated, and except as otherwise specified herein, each party
shall bear its own expenses with respect to the transactions contemplated by
this Agreement.

                                13.4         Severability.  Each of the provisions contained in this
Agreement shall be severable, and the unenforceability of one shall not affect
the enforceability of any others or of the remainder of this Agreement.

                                13.5         No Third Party Beneficiaries.  Except in respect of a GE Indemnified Party
or Abbott Indemnified Party who is not a party hereto, this Agreement is for
the sole benefit of the parties hereto and their permitted assigns and nothing
herein, express or implied, shall give or be construed to give to any Person,
other than the parties hereto and such permitted assigns, any legal or
equitable rights hereunder.

                                13.6         Waiver.  The failure of any party to enforce any
condition or part of this Agreement at any time shall not be construed as a
waiver of that condition or part, nor shall it forfeit any rights to future
enforcement thereof.  Any waiver
hereunder shall be effective only if delivered to the other party hereto in
writing by the party making such waiver.

                                13.7         Governing Law.  This Agreement shall be construed and
enforced in accordance with and governed by the Laws of the State of Delaware
without regard to the conflicts of Laws provisions thereof.

                                13.8         Alternative Dispute Resolution.  The parties recognize that from time to time
a dispute may arise (a) relating to negotiation and finalization of the
Ancillary Agreements (b) with respect to determinations of (i) whether a
particular asset is a Purchased Asset or an

 71
 

Excluded Asset, a particular Liability is an Assumed
Liability or an Excluded Liability or any Mixed-Use Intellectual Property
constitutes GE Mixed-Use Intellectual Property or Abbott Mixed-Use Intellectual
Property, (ii) indemnification payments pursuant to this Agreement or (c) with
respect to interpretations of provisions of this Agreement or the Ancillary
Agreements.  The parties agree that any
such dispute shall be exclusively resolved by the ADR provisions set forth on Schedule
13.8, the result of which shall be binding upon the parties.  The place for such ADR shall be Chicago,
Illinois or at such other place as may be agreed upon by GE and Abbott.

                                13.9         Jurisdiction.  The parties hereto agree that any Action
seeking to enforce any provision of, or based on any matter arising out of or
in connection with, this Agreement or the transactions contemplated hereby
(other than those matters to be exclusively resolved pursuant to the ADR
provisions referred to in Section 13.8)
shall be brought in the United States District Court located in Wilmington,
Delaware so long as such court shall have subject matter jurisdiction over such
Action, or alternatively in the Delaware State Court located in Wilmington,
Delaware if the aforesaid United States District Court does not have subject
matter jurisdiction, and that any cause of action arising out of this Agreement
shall be deemed to have arisen from a transaction of business in the State of
Delaware, and each of the parties hereby irrevocably consents to the
jurisdiction of such court (and of the appropriate appellate courts therefrom)
in any such Action and irrevocably waives, to the fullest extent permitted by
Law, any objection that it may now or hereafter have to the laying of the venue
of any such Action in any such court or that any such Action which is brought
in such court has been brought in an inconvenient forum.  Process in any such Action may be served on any
party anywhere in the world, whether within or without the jurisdiction of such
court.  Without limiting the foregoing,
each party agrees that service of process on such party as provided in Section 13.15 shall be deemed effective service
of process on such party.

                                13.10       Waiver of Jury Trial.  EACH OF THE PARTIES HERETO WAIVES TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY RIGHT IT MAY HAVE TO A TRIAL BY
JURY WITH RESPECT TO ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF,
UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY
THIS AGREEMENT.  EACH OF THE PARTIES
HERETO HEREBY (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE
OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY
WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER,
AND (B) ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND
THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, AS APPLICABLE, BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 13.10.

                                13.11       Specific Performance.  The parties acknowledge that, in view of the
uniqueness of the Business, the Purchased Assets and the transactions
contemplated by this Agreement, each party would not have an adequate remedy at
Law for money damages in the event that this Agreement has not been performed
in accordance with its terms, and therefore agrees that the other party shall
be entitled to specific enforcement of the terms hereof in addition to any
other remedy to which it may be entitled (in accordance with Section 13.9),
at Law or in equity and Section 13.8 shall not apply to any such
specific enforcement.

 72
 

                                13.12       Headings.  The headings of the sections and subsections
of this Agreement are inserted for convenience only and shall not be deemed to
constitute a part hereof.

                                13.13       Counterparts.  The parties may execute this Agreement in one
or more counterparts, and each fully executed counterpart shall be deemed an
original.

                                13.14       Further Documents.  Each of GE and Abbott shall, and shall cause
its respective Affiliates to, at the request of the other party, execute and
deliver to such other party all such further instruments, assignments,
assurances and other documents as such other party may reasonably request in
connection with the carrying out of this Agreement and the transactions
contemplated hereby.

                                13.15       Notices.  All communications, notices and Consents
provided for herein shall be in writing and be given in person or by means of
telex, facsimile or other means of wire transmission (with request for
assurance of receipt in a manner typical with respect to communications of that
type), by overnight courier or by mail, and shall become effective: (a) on
delivery if given in person; (b) on the date of transmission if sent by telex,
facsimile or other means of wire transmission; (c) one (1) Business Day after
delivery to the overnight service; or (d) four (4) Business Days after being
mailed, with proper postage and documentation, for first-class registered or
certified mail, prepaid.

Notices shall be addressed as follows:

If to GE, to:

General Electric Company 

Mail Drop W436 

3000 North Grandview
Boulevard 

Waukesha, WI 53188 

Attn: Healthcare Business
Development General Counsel 

Facsimile Number: (262)
544-3930

and

General Electric Company 

Pollards Wood
Nightingales Lane 

UK 360 

Chalfont St. Giles 

HP 8 4SP 

United Kingdom 

Attn:  GE Healthcare
General Counsel 

Facsimile
Number: +44 (0) 1494 498465

with copies to:

 73
 

Sidley Austin LLP

One South Dearborn

Chicago, Illinois 60603

Attn: David J. Zampa,
Esq.

Facsimile Number: (312)
853-7036

If to Abbott, to:

Abbott Laboratories 

Dept. 0392, Bldg. AP6D 

100 Abbott Park Road 

Abbott Park, Illinois
60064-3500 

Attention: Chief
Operating Officer

Facsimile Number: (847)
035-8207

and

Abbott Laboratories 

Dept. 0364, Bldg. AP6D 

100 Abbott Park Road 

Abbott Park, Illinois
 60064-6020 

Attention: General
Counsel

Facsimile Number:
(847)  938-6277

with copies to:

Skadden, Arps, Slate,
Meagher & Flom LLP

333 West Wacker Drive 

Chicago, Illinois 60606

Attn: Charles W. Mulaney,
Jr.

Brian W. Duwe

Facsimile Number: (312)
407-0411

provided, however, that if
any party shall have designated a different address by notice to the others,
then to the last address so designated.

                                13.16       Exchange Rates.  If applicable Law requires that any payment
pursuant to this Agreement be made in local currency, the parties shall use the
applicable exchange rate published in The Wall Street Journal three (3)
Business Days prior to the Closing or such date as mutually agreed in writing
by the parties, except in the case of a Deferred Local Closing in which case
the parties shall use the applicable exchange rate published in the Wall Street
Journal three (3) Business Days prior to the date of the Deferred Local Closing
or such other date as mutually agreed in writing by the parties.  In addition, if applicable Law requires that
the Conveyance and Assumption Instruments for a particular jurisdiction must
state the portion of Purchase Price allocated to such jurisdiction in local
currency, then the parties shall use for such purposes the exchange rate
between $ and the applicable local currency as reported on the Bloomberg screen
at 7:00 a.m. EDT on the Closing Date.

 74
 

                                13.17       Construction.  The language in all parts of this Agreement
shall be construed, in all cases, according to its fair meaning.  The parties acknowledge that each party and
its counsel have reviewed and revised this Agreement and that any rule of construction
to the effect that any ambiguities are to be resolved against the drafting
party shall not be employed in the interpretation of this Agreement.  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 gender 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 and Exhibits
hereto) and not to any particular provision of this Agreement.  Article, Section, Exhibit and Schedule
references are to the Articles, Sections, Exhibits 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 Ancillary Agreement shall be
deemed to refer to this Agreement or such Ancillary Agreement as of the date of
such agreement and as it may be amended thereafter, unless otherwise specified.

                                13.18       Performance of Obligations by
Affiliates.  Any obligation of Abbott
under or pursuant to this Agreement may be satisfied, met or fulfilled, in
whole or in part, at Abbott’s sole and exclusive option, either by Abbott
directly or by any Affiliate of Abbott that Abbott causes to satisfy, meet or
fulfill such obligation in whole or in part. 
Any obligation of GE under or pursuant to this Agreement may be
satisfied, met or fulfilled, in whole or in part, at GE’s sole and exclusive
option, either by GE directly or by any Affiliate that GE causes to satisfy,
meet or fulfill such obligation, in whole or in part.  With respect to any particular action, the
use of the words “Abbott shall” also means “Abbott shall cause” the particular
action to be performed, and the use of the words “GE shall” also means “GE
shall cause” the particular action to be performed.  Each of Abbott and GE guarantees the
performance of all actions, agreements and obligations to be performed by any
of their respective Affiliates under the terms and conditions of this
Agreement.

                                13.19       Entire Agreement.  This Agreement may not be amended,
supplemented or otherwise modified except by an instrument in writing signed by
each of the parties hereto.  This
Agreement and the Confidentiality Agreement contain the entire agreement of the
parties hereto with respect to the transactions covered hereby, superseding all
negotiations, prior discussions and preliminary agreements made prior to the
date hereof.

* * * * * * * * * * *

 75
 

IN WITNESS
WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective duly authorized officers as of the date first above written.

 

	
  ABBOTT LABORATORIES

  	
   

  	
  GENERAL ELECTRIC COMPANY

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ Miles D. White

  	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Joseph M. Hogan

  
	
  Name:

  	
   

  	
  Miles D. White

  	
   

  	
  Name:

  	
   

  	
  Joseph M. Hogan

  
	
  Title:

  	
   

  	
  Chairman of the Board and

  Chief Executive Officer

  	
   

  	
  Title:

  	
   

  	
  President and Chief Executive Officer, GE Healthcare

  
								

 

 

 76Exhibit 10.49

Abbott
Laboratories

Performance Restricted Stock Agreement

This
Agreement made «DateAwded» (the “Grant Date”), between Abbott Laboratories, an
Illinois corporation (the “Company”), and «Name» (the “Employee”), for the
grant by the Company to the Employee of a Restricted Stock Award under Section 10
of the Company’s 1996 Incentive Stock Program (the “Program”).  This Agreement incorporates and is subject to
the provisions of the Program. Terms used herein shall have the same meaning as
in the Program, and in the event of any inconsistency between the provisions herein
and the provisions of the Program, the Program shall control.

1.             Grant of Shares.  Pursuant to action of the Compensation
Committee of the Board of Directors of the Company, and in consideration of
valuable services heretofore rendered and to be rendered by the Employee to the
Company and of the agreements hereinafter set forth, the Company has granted to
the Employee «NoShares12345» common shares of the Company (the “Shares”).  The Shares shall be issued from the Company’s
available treasury shares.  The Employee
shall have all the rights of a shareholder with respect to the Shares,
including the right to vote and to receive all dividends or other distributions
paid or made with respect to the Shares. 
However, the Shares (and any securities of the Company which may be
issued with the respect to the Shares by virtue of any stock split,
combination, stock dividend or recapitalization, which securities shall be
deemed to be “Shares” hereunder) shall be subject to all the restrictions
hereinafter set forth.

2.             Restriction.  Until the restriction imposed by this Section 2
(the “Restriction”) has lapsed pursuant to Section 3 or 4 below, the
Shares shall not be sold, exchanged, assigned, transferred, pledged or
otherwise disposed of, and shall be subject to forfeiture as set forth in Section 5
below.

3.             Lapse of Restriction Based on
Performance.  The restrictions on
one-third of the total number of Shares (rounded up) will lapse and have no
further force on the last business day of February, 2008, provided that Abbott’s
prior year Return on Equity is a minimum of 18 percent; the restrictions on an
additional one-third of the total number of Shares (rounded up) will lapse and
have no further force on the last business day of February, 2009, provided that
Abbott’s prior year Return on Equity is a minimum of 18 percent; the
restrictions on the remaining one-third of the total number of Shares will
lapse and have no further force on the last business day of February, 2010,
provided that Abbott’s prior year Return on Equity is a minimum of 18 percent.  Notwithstanding the foregoing, any remaining
Shares that have not previously vested in 2008, 2009 or 2010 shall remain
outstanding and shall vest on the last business day of February, 2011 and/or
2012, provided that Abbott’s prior year Return on Equity is a minimum of 18
percent, and provided further that no more than one-third of the Shares will
vest in any one year.

4.             Retirement.  The Restriction shall continue to apply (and
may lapse in accordance with the provisions of Section 3 above) in the
event that the Employee’s employment with the Company and its subsidiaries is
terminated by the Employee due to retirement.

 1
 

5.             Lapse of Restriction by Death or
Disability.  The Restriction shall
lapse and have no further force or effect upon the Employee’s death or
disability.

6.             Forfeiture of Shares.  In the event of termination of the Employee’s employment with the
Company, other than under the circumstances described in Section 4 or Section 5
above, (including due to the Employee’s voluntary resignation (other than due
to retirement) or involuntary discharge for cause), all of the Shares with respect to which the Restriction has not lapsed
shall be forfeited, and transferred to the Company by the Employee, without
consideration to the Employee or his executor, administrator, personal
representative or heirs (“Representative”). 
In any such event, the Employee or his Representative shall promptly
deliver any documents requested by the Company necessary to effectuate such
transfer.  Notwithstanding the foregoing,
in the event that the Employee is discharged by the Company other than for
cause, the Committee shall have the authority (but not the obligation) to act,
in its sole discretion, to accelerate the lapse of the Restriction.  The term discharge “for cause” shall have the
meaning given that term by Section 10.

7.             Withholding Taxes.  The lapse of the Restriction on the Shares
pursuant to the terms hereof shall be conditioned on the Employee or the
Representative having made appropriate arrangements with the Company to provide
for the withholding of any taxes required to be withheld by federal, state or
local law with respect to such lapse.

8.             Rights Not Enlarged.  Nothing herein confers on the Employee any
right to continue in the employ of the Company or of any of its subsidiaries.

9.             Succession.  This Agreement shall be binding upon and
operate for the benefit of the Company and its successors and assigns, and the
Employee and his Representative.

10.           Discharge for Cause.  The term discharge “for cause” shall mean
termination by the Company of the Employee’s employment for (A) the
Employee’s failure to substantially perform the duties of his employment (other
than any such failure resulting from the Employee’s disability); (B) material
breach by the Employee of the terms and conditions of his employment; (C) material
breach by the Employee of business ethics; (D) an act of fraud,
embezzlement or theft committed by the Employee in connection with his duties
or in the course of his employment; or (E) wrongful disclosure by the
Employee of secret processes or confidential information of the Company or its
subsidiaries.

11.           Section
409A.  If the Company determines that
this Agreement is subject to 409A of the Internal Revenue Code and fails to
comply with that section’s requirements, the Company may, at the Company’s sole
discretion, amend the Agreement to cause it to comply with Section 409A or be
exempt from Section 409A.

IN
WITNESS WHEREOF, the Company has caused this Award to be executed by its duly
authorized officer as of the grant date set forth above.

 

	
   

  	
   

  	
  ABBOTT LABORATORIES

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  «Name»

  

 

 2

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