Document:

Exhibit 10.2

 

EXECUTION COPY

 

AMENDMENT NO. 4 

TO

TRANSACTION AGREEMENT

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

World
(each, a “Territory”). ”

 

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

 

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

 

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

 

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

 

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

 

(C) June 30, 2012.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

	
   

  	
  BOSTON SCIENTIFIC
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ 

  	
  Lawrence J. Knopf

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Lawrence J. Knopf

  
	
   

  	
   

  	
  Title:

  	
  Vice President and Assistant

  
	
   

  	
   

  	
   

  	
  General Counsel

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ABBOTT LABORATORIES

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Richard A. Gonzalez

  
	
   

  	
   

  	
  Title:

  	
  President and Chief Operating

  
	
   

  	
   

  	
   

  	
  Officer

  

 

 

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

 

 

	
   

  	
  BOSTON SCIENTIFIC
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ABBOTT LABORATORIES

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Richard A. Gonzalez

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Richard A. Gonzalez

  
	
   

  	
   

  	
  Title:

  	
  President and Chief
  Operating

  
	
   

  	
   

  	
   

  	
  Officer

  

 

 

EVEROLIMUS SCHEDULEExhibit
10.3

 

Abbott Laboratories

 

Description of Base Salary of President and
Chief Operating Officer

 

Effective March 27, 2006, Richard A. Gonzalez was elected President and
Chief Operating Officer of Abbott Laboratories. In recognition of Mr. Gonzalez’s
promotion, his base salary was increased to $990,000, effective March 27, 2006.

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