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WWW.EXFILE.COM -- BOSTON SCIENTIFIC -- FORM 8-K -- 15366 -- EXHIBIT 10.1

    EXHIBIT
      10.1

    

     

     

     

     

     

     

     

    ——————————

     

    FORM
      OF

    AMENDMENT
      AGREEMENT

     

    ——————————

     

    among

     

    BOSTON
      SCIENTIFIC CORPORATION,

     

    BOSTON
      SCIENTIFIC SCIMED, INC.,

     

    ADVANCED
      BIONICS CORPORATION,

     

    THE
      BIONICS TRUST

     

    and

     

    JEFFREY
      D. GOLDBERG AND CARLA WOODS (COLLECTIVELY IN THEIR CAPACITY AS THE STOCKHOLDERS'
      REPRESENTATIVE)

     

    Dated
      as
      of August 9, 2007

     

     

     

     

     

     

     

    
 

    
 

     

     

     

     

     

     

    
 

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

    TABLE
      OF CONTENTS

     

     

    
      
        	 	 	Page
	 	 	 
	
                ARTICLE
                  I.     
                  DEFINITIONS

              	
                2

              
	 	 	 
	
                SECTION
                  1.01

              	
                Certain
                  Defined Terms

              	
                2

              
	 	 	 
	
                SECTION
                  1.02

              	
                Definitions

              	
                4

              
	 	 	 
	
                SECTION
                  1.03

              	
                Other
                  Interpretive Provisions

              	
                4

              
	 	 	 
	 	 	 
	
                ARTICLE
                  II.     TRANSACTION

              	
                5

              
	 	 	 
	
                SECTION
                  2.01

              	
                Amendments
                  to Merger Agreement

              	
                5

              
	 	 	 
	
                SECTION
                  2.02

              	
                Closing

              	
                6

              
	 	 	 
	
                SECTION
                  2.03

              	
                Deliveries
                  by the Parties

              	
                6

              
	 	 	 
	
                SECTION
                  2.04

              	
                Withholding
                  Rights

              	
                7

              
	 	 	 
	
                SECTION
                  2.05

              	
                Amendment
                  and Restatement of the Trust Agreement; Distributions by the
                  Trust

              	
                8

              
	 	 	 
	 	 	 
	
                ARTICLE
                  III.    REPRESENTATIONS
                  AND WARRANTIES OF THE BSC PARTIES

              	
                8

              
	 	 	 
	
                SECTION
                  3.01

              	
                Organization
                  and Authority

              	
                8

              
	
                 

              	 	 
	
                SECTION
                  3.02

              	
                No
                  Conflict

              	
                9

              
	 	 	 
	
                SECTION
                  3.03

              	
                Financing

              	
                9

              
	 	 	 
	 	 	 
	
                ARTICLE
                  IV.    REPRESENTATIONS
                  AND WARRANTIES OF THE TRUST

              	
                10

              
	 	 	 
	
                SECTION
                  4.01

              	
                Organization
                  and Authority

              	
                10

              
	 	 	 
	
                SECTION
                  4.02

              	
                No
                  Conflict

              	
                11

              
	 	 	 
	 	 	 
	
                ARTICLE
                  V.    REPRESENTATIONS
                  AND WARRANTIES OF THE STOCKHOLDERS' REPRESENTATIVE

              	
                11

              
	 	 	 
	
                SECTION
                  5.01

              	
                Authority
                  of the Stockholders' Representative

              	
                11

              
	 	 	 
	
                SECTION
                  5.02

              	
                No
                  Conflict

              	
                11

              
	 	 	 
	
                SECTION
                  5.03

              	
                Proxy
                  of Mann and Certain Mann-Controlled Earn Out Recipients

              	
                12

              
	 	 	 
	 	 	 
	
                ARTICLE
                  VI.    JOINT
                  REPRESENTATIONS AND WARRANTIES OF PARENT AND STOCKHOLDERS
                  REPRESENTATIVE

              	
                12

              
	 	 	 
	
                SECTION
                  6.01

              	
                Authority
                  of Parent and the Stockholders' Representative

              	
                12

              
	 	 	 
	
                SECTION
                  6.02

              	
                No
                  Conflict

              	
                13

              

      

       

       

      
        
          
          

        

        
          ii

          
            

          

        

        
          
          

        

      

      
        TABLE
          OF CONTENTS (continued)

      

       

       

       

      
        	 	Page
	 	 
	
                ARTICLE
                  VII.  
                   ADDITIONAL
                  AGREEMENTS

              	
                13

              
	 	 	 
	
                SECTION
                  7.01

              	
                Public
                  Announcements

              	
                13

              
	 	 	 
	
                SECTION
                  7.02

              	
                Further
                  Action

              	
                14

              
	 	 	 
	
                SECTION
                  7.03

              	
                Approval
                  by Earn Out Recipients

              	
                15

              
	 	 	 
	
                SECTION
                  7.04

              	
                Earn
                  Out Recipient and Trustee Liability

              	
                16

              
	 	 	 
	
                SECTION
                  7.05

              	
                Notification
                  of Certain Matters

              	
                16

              
	 	 	 
	
                SECTION
                  7.06

              	
                Waiver
                  of Time Period

              	
                16

              
	 	 	 
	 	 	 
	
                ARTICLE
                  VIII.    CONDITIONS
                  TO CLOSING

              	
                17

              
	 	 	 
	
                SECTION
                  8.01

              	
                Conditions
                  to Obligations of the Parties

              	
                17

              
	 	 	 
	
                SECTION
                  8.02

              	
                Conditions
                  to Obligations of the BSC Parties

              	
                17

              
	 	 	 
	
                SECTION
                  8.03

              	
                Conditions
                  to Obligations of the Trust and the Stockholders'
                  Representative

              	
                17

              
	 	 	 
	 	 	 
	
                ARTICLE
                  IX.     
                  TERMINATION

              	
                18

              
	 	 	 
	
                SECTION
                  9.01

              	
                Termination

              	
                18

              
	 	 	 
	
                SECTION
                  9.02

              	
                Effect
                  of Termination

              	
                18

              
	 	 	 
	 	 	 
	
                ARTICLE
                  X.      
                  GENERAL
                  PROVISIONS

              	
                19

              
	 	 	 
	
                SECTION
                  10.01

              	
                Fees
                  and Expenses

              	
                19

              
	 	 	 
	
                SECTION
                  10.02

              	
                Amendment

              	
                19

              
	 	 	 
	
                SECTION
                  10.03

              	
                Waiver

              	
                19

              
	 	 	 
	
                SECTION
                  10.04

              	
                Notices

              	
                20

              
	 	 	 
	
                SECTION
                  10.05

              	
                Severability

              	
                20

              
	 	 	 
	
                SECTION
                  10.06

              	
                Entire
                  Agreement; Assignment

              	
                21

              
	 	 	 
	
                SECTION
                  10.07

              	
                Parties
                  in Interest

              	
                21

              
	 	 	 
	
                SECTION
                  10.08

              	
                Specific
                  Performance

              	
                21

              
	
                 

              	 	 
	
                SECTION
                  10.09

              	
                Governing
                  Law

              	
                21

              
	 	 	 
	
                SECTION
                  10.10

              	
                Waiver
                  of Jury Trial

              	
                22

              
	 	 	 
	
                SECTION
                  10.11

              	
                Counterparts

              	
                22

              

      

     

     

    
      
        
        

      

      
        iii

        
          

        

      

      
        
        

      

    

     

     

    EXHIBITS

     

    
      
        	
                1.01(a)

              	
                Earn
                  Out Obligation

              
	
                1.01(b)

              	
                Guaranty

              
	
                1.01(c)

              	
                Reaffirmation

              
	
                1.01(d)

              	
                Settlement
                  and Release Agreement

              
	
                2.01(a)

              	
                Amendment
                  1

              
	
                2.01(b)

              	
                Amendment
                  2

              
	
                4.01

              	
                Trustee
                  Certificate

              
	
                5.03(a)(i)

              	
                Mann-Controlled
                  Earn Out Recipients

              
	
                5.03(a)(ii)

              	
                Mann
                  Proxy

              
	
                7.01(a)(i)

              	
                Initial
                  Press Release

              
	
                7.01(a)(ii)

              	
                Frequently
                  Asked Questions

              
	
                7.03(a)(ii)

              	
                Form
                  of Earn Out Recipient Release

              
	
                8.02(b)

              	
                Form
                  of Limited Mutual Release

              

      

    

     

     

     

     

    SCHEDULES

     

    
      
        
          	
                  2.05

                	
                  Earn
                    Out Withholding

                

        

      

       

                                    

     

     

     

     

     

     

     

     

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    This
      AMENDMENT AGREEMENT (this "Agreement"), dated as of
      August 9, 2007, is entered into by and among BOSTON SCIENTIFIC CORPORATION,
      a Delaware corporation ("Parent"), BOSTON SCIENTIFIC SCIMED,
      INC., (formerly known as Scimed Life Systems, Inc.) a Minnesota corporation
      and
      a wholly owned subsidiary of Parent ("Scimed"), ADVANCED
      BIONICS CORPORATION, a Delaware corporation and a wholly owned subsidiary of
      Scimed (the "Company"), the BIONICS TRUST (the
      "Trust") and CARLA WOODS and JEFFREY D. GOLDBERG (such persons
      acting together by majority vote, and any successor persons acting together
      by
      majority vote, solely in their capacity as Stockholders' Representative under
      the Merger Agreement, being the "Stockholders'
      Representative").

     

    WHEREAS,
      Scimed owns all the issued and outstanding shares of common stock (the
      "Common Stock"), par value $0.01 per share, of the Company as a
      result of the consummation of the transactions contemplated by the Agreement
      and
      Plan of Merger, dated as of May 28, 2004 (the "Merger
      Agreement"; capitalized terms used herein but not defined herein have
      the meaning ascribed to such terms in the Merger Agreement), among Parent,
      Scimed, Claude Acquisition Corp., a Delaware corporation and a wholly owned
      subsidiary of Scimed, the Company, the Trust and the Stockholders'
      Representative;

     

    WHEREAS,
      the parties to the Merger Agreement (other than Claude Acquisition Corp., the
      existence of which ceased after it merged into the Company) wish to amend the
      Merger Agreement to (a) modify the corporate governance provisions of Section
      5.04 of the Merger Agreement in anticipation of the Closing, (b) require Scimed
      to pay to the Trust the First Earn Out Payment (as defined herein) on the
      Closing Date and the amount of the Earn Out Obligation (as defined herein)
      on
      March 6, 2009 and (c) provide that, at the Closing, the executory obligations
      of
      the Parties under the Merger Agreement will be terminated and cease to have
      any
      further force or effect to the extent but only the extent set forth in this
      Agreement and the Amendments (as defined herein);

     

    WHEREAS,
      concurrently with the execution hereof, Parent is executing and delivering
      a
      Guaranty in the form attached hereto as Exhibit 1.01(b) pursuant to
      which Parent guarantees the obligations of Scimed hereunder, including the
      payment of the amounts due under the Earn Out Obligation (the
      "Guaranty");

     

    WHEREAS,
      the Parties agree that no approval of the Executive Board is required to effect
      the transactions contemplated hereby because, among other things, the Parties
      who have the power to appoint the Members have agreed to enter into this
      Agreement; and

     

    WHEREAS,
      if this Agreement terminates and the Closing does not occur, Amendment 1,
      if it has been effected, will terminate and be of no further force or effect
      as
      of the date this Agreement terminates, any amendment to the Merger Agreement
      effected by Amendment 1 will be null and void other than in respect of the
      period during which Amendment 1 was effective, if any, the Merger Agreement
      will
      not be deemed amended by Amendment 1 in any respect whatsoever, and Amendment
      2
      will not become effective.

     

     

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    NOW,
      THEREFORE, in consideration of the premises and the mutual agreements
      and covenants hereinafter set forth, and intending to be legally bound, the
      parties hereto hereby agree as follows:

     

     

    ARTICLE
      I.

    DEFINITIONS

     

    SECTION
      1.01  Certain
      Defined Terms.  For
      purposes of this Agreement:

     

    "Action"
      means any claim, action, suit, arbitration, inquiry, proceeding or investigation
      by or before any Governmental Authority.

     

    "Affiliate"
      means, with respect to any specified Person, any other Person that, directly
      or
      indirectly through one or more intermediaries, controls, is controlled by,
      or is
      under common control with, such specified Person. Any reference to the
      Affiliates of any of the BSC Parties will not include the Companies after the
      Closing Date.

     

    "BSC
      Parties" means Parent and Scimed.

     

    "Business
      Day" means any weekday (i.e., Monday, Tuesday, Wednesday, Thursday or
      Friday) on which banks in The City of New York, Boston or Los Angeles are not
      required or authorized by Law to be closed.

     

    "Claims"
      means claims, demands, causes of action, Actions, rights of recovery, and rights
      of set-off, in each case, whether in law or equity based on any Law, private
      right of action  or otherwise, foreseen or unforeseen, matured or
      unmatured, known or unknown, accrued or not accrued.

     

    "Companies"
      mean the Delaware limited liability companies to be newly formed by the Company
      pursuant to the Purchase Agreements.

     

    "control"
      (including the terms "controlled by" and "under common
      control with"), with respect to the relationship between or among two
      or more Persons, means the possession, directly or indirectly, of the power
      to
      direct or cause the direction of the affairs or management of a Person, whether
      through the ownership of voting securities, as trustee, personal representative
      or executor, by contract, credit arrangement or otherwise; provided,
however, that any reference to a Person controlled by any of the BSC
      Parties will not include the Companies after the Closing Date.

     

    "Earn
      Out Obligation" means an obligation, substantially in the form of
Exhibit 1.01(a), due and payable in full on March 6, 2009 issued by
      Scimed to the Trust in the principal amount of $500,000,000.00.

     

    "Governmental
      Authority" means (a) any federal, national, supranational (for example,
      the European Community), state, provincial, local or other governmental,
      regulatory or administrative authority or (b) any court, tribunal, judicial
      body
      or arbitral body whose decisions have the similar force as decisions of any
      of
      the foregoing.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    "Governmental
      Order" means any order, writ, judgment, injunction, decree,
      stipulation, determination or award (whether temporary, preliminary or
      permanent) entered by any Governmental Authority.

     

    "Law"
      means any statute, law, ordinance, regulation, rule, code, order or requirement
      (including judicial requirements of any Governmental Authority).

     

    "Mann"
      means Alfred E. Mann.

     

    "Mann-Controlled
      Earn Out Recipients" means each Earn Out Recipient that is either (a) a
      sibling of Mann, any child of Mann, or any spouse or child of any of the
      foregoing,(b) Mann's spouse, (c) a Person that is controlled by Mann or (d)
      a
      Person controlled by anyone described in clause (a) or (b).

     

    "Minority
      Earn Out Recipients" means the Earn Out Recipients other than Mann, the
      Mann-Controlled Earn Out Recipients and Jeffrey H. Greiner.

     

    "Party"
      or "Parties" means the parties to this Agreement, which are
      Parent, Scimed, the Company, the Trust and the Stockholders'
      Representative.

     

    "Person"
      means any individual, partnership, firm, corporation, limited liability company,
      association, trust, unincorporated organization or other entity, as well as
      any
      syndicate or group that would be deemed to be a person under
      Section 13(d)(3) of the Securities Exchange Act of 1934.

     

    "Reaffirmation"
      means a reaffirmation of the Guaranty in respect of the Earn Out Obligation
      in
      the form attached hereto as Exhibit 1.01(c).

     

    "Representatives"
      means, when used with respect to any Person, its Subsidiaries, and its and
      their
      respective directors, officers, employees, advisors, auditors, consultants,
      accountants, legal counsel, investment bankers and agents.

     

    "Requisite
      Earn Out Recipient Approval" means the written approval of this
      Agreement, the Purchase Agreements and the consummation of the transactions
      contemplated hereby and thereby, including the Amendments, by (a) Minority
      Earn
      Out Recipients holding more than 50% of the Earn Out Rights held by all the
      Minority Earn Out Recipients and (b) Earn Out Recipients holding more than
      50%
      of all Earn Out Rights.

     

    "Settlement
      and Release Agreement" means the Settlement and Limited Mutual Release
      Agreement among Parent, Scimed, the Trust, the Trustees and Stockholders'
      Representative substantially in the form attached hereto as
Exhibit 1.01(d).

     

    "Subsidiaries"
      means, with respect to a Person, all corporations, partnerships, limited
      liability companies, joint ventures, associations and other entities controlled
      by such Person directly or indirectly through one or more
      intermediaries.

     

    "Trust
      Agreement" means the Trust Agreement of the Trust, dated May 28, 2004,
      among Scimed, Mann, Jeffrey H. Greiner and David MacCallum, as Stockholders'
      

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    Representative
      as of the date thereof and Mann, Jeffrey H. Greiner and David MacCallum, as
      Trustees as of the date thereof.

     

    "Trustees"
      means Carla Woods and Jeffrey D. Goldberg, as trustees of the
      Trust.

     

    SECTION
      1.02  Definitions.  The
      following terms have the meanings set forth in the Sections set forth
      below:

     

    
      	
              Definition

            	 	
              Location

            	 
	 	 	 	 
	
              "Company"

            	 	
              Preamble

            	 
	
              "Agreement"

            	 	
              Preamble

            	 
	
              "Amended
                and Restated Trust Agreement"

            	 	
              2.05

            	 
	
              "Amendment
                1"

            	 	
              2.01(a)

            	 
	
              "Amendment
                2"

            	 	
              2.01(b)

            	 
	
              "Amendments"

            	 	
              2.01(b)

            	 
	
              "Closing"

            	 	
              2.02

            	 
	
              "Closing
                Date"

            	 	
              2.02

            	 
	
              "Common
                Stock"

            	 	
              Recitals

            	 
	
              "Draft Information
                Statement"

            	 	
              7.03(a)

            	 
	
              "FAQs"

            	 	
              7.01(a)

            	 
	
              "First
                Earn Out Payment"

            	 	
              2.03(a)(i)

            	 
	
              "Guaranty"

            	 	
              Recitals

            	 
	
              "Information
                Statement"

            	 	
              7.03(a)

            	 
	
              "Mann
                Proxy"

            	 	
              5.03

            	 
	
              "Merger
                Agreement"

            	 	
              Recitals

            	 
	
              "Parent"

            	 	
              Preamble

            	 
	
              "Press
                Release"

            	 	
              7.01(a)

            	 
	
              "Purchase
                Agreements"

            	 	
              9.01(b)

            	 
	
              "Scimed"

            	 	
              Preamble

            	 
	
              "Stockholders'
                Representative"

            	 	
              Preamble

            	 
	
              "Trust"

            	 	
              Preamble

            	 

    

    

     

    SECTION
      1.03  Other
      Interpretive Provisions.  

     

    Unless
      the express context otherwise requires:

     

    (a)  the
      words
      "hereof," "herein," and "hereunder" and words of similar import, when used
      in
      this Agreement, will refer to this Agreement as a whole and not to any
      particular provision of this Agreement;

     

    (b)  the
      terms
      defined in the singular have a comparable meaning when used in the plural,
      and
      vice versa;

     

    (c)  the
      terms
      "Dollars" and "$" mean United States Dollars;

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    (d)  references
      herein to a specific Article, Section, Recital, Schedule or Exhibit will refer,
      respectively, to Articles, Sections, Recitals, Schedules or Exhibits of this
      Agreement;

     

    (e)  whenever
      the word "include," "includes," or "including" is used in this Agreement, it
      will be deemed to be followed by the words "without limitation";

     

    (f)  references
      herein to any gender include each other gender;

     

    (g)  references
      herein to a Person in a particular capacity or capacities exclude such Person
      in
      any other capacity;

     

    (h)  references
      herein to any contract or agreement (including this Agreement) mean such
      contract or agreement as amended, supplemented or modified  from time
      to time with notice to the BSC Parties, the Stockholders' Representative or
      the
      Trust, to the extent required, and otherwise in accordance with the terms
      thereof;

     

    (i)
        with
      respect to the determination of any period of time, the word "from" means "from
      and including" and the words "to" and "until" each means "to but
      excluding";

     

    (j)
        references
      herein to any Law or any license mean such Law or license as amended, modified,
      codified, reenacted, supplemented or superseded in whole or in part, and in
      effect from time to time;

     

    (k)  references
      herein to any Law will be deemed also to refer to all rules and regulations
      promulgated thereunder;

     

    (l)
        whenever
      the words "transactions contemplated" or "agreements contemplated," are used
      in
      this Agreement, the word "contemplated" will be deemed to be preceded by the
      word "expressly"; and

     

    (m)  all
      references to days or months will be deemed references to calendar days or
      months unless otherwise specified.

     

     

     

    ARTICLE
      II.

    TRANSACTION

     

    SECTION
      2.01  Amendments
      to Merger Agreement.  The
      BSC Parties, the Trust, the Company and the Stockholders' Representative hereby
      agree that the Merger Agreement will be amended in the manner and at the times
      set forth below:

     

    (a)  First
      Amendment.  Within 18 Business Days of the date of mailing of the
      Information Statement to the Earn Out Recipients in accordance with Section
      7.03, the Stockholders' Representative will notify Parent as to whether the
      Requisite Earn Out Recipient Approval has been obtained.  If the
      Requisite Earn Out Recipient Approval has not been obtained, the Stockholders'
      Representative will also provide to Parent's outside counsel copies of all
      written ballots received from the Earn Out Recipients with the names of the
      Earn
      Out 

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    Recipients
      who are at such time employees of the Company redacted from such written
      ballots.  If the Requisite Earn Out Recipient Approval has been
      obtained, Amendment No. 1 to the Merger Agreement set forth on
Exhibit 2.01(a) ("Amendment 1") will become
      effective as of 9:00 a.m. California time on the first Business Day after such
      notification has been delivered to Parent.

     

    (b)  Second
      Amendment.  At the Closing, Amendment No. 2 to the Merger
      Agreement set forth on Exhibit 2.01(b) ("Amendment
      2" and together with Amendment 1, the "Amendments")
      will become effective.  The effectiveness of Amendment 2 will not
      occur until the First Earn Out Payment is paid to the Trust.

     

    (c)  Effectiveness
      of Amendments.  Until the Requisite Earn Out Recipient Approval is
      obtained, if at all, neither of the Amendments will become effective and the
      Merger Agreement, unamended, will continue to govern the relationship between
      the Parties.  If the Requisite Earn Out Recipient Approval is
      obtained, and then this Agreement terminates so that  the Closing does
      not occur, then Amendment 2 will not become effective and Amendment 1 will
      be
      terminated and of no further force or effect as of the date that this Agreement
      is terminated.  Notwithstanding the foregoing, any action or failure
      to act effected by any Party during the period of time beginning upon the
      effectiveness of Amendment 1 but prior to the termination of this Agreement,
      to
      the extent such action or failure to act is expressly permitted by the Merger
      Agreement as amended by Amendment 1, will not be deemed a breach or failure
      to
      comply with the Merger Agreement.

     

    SECTION
      2.02  Closing. 
      The payment of the First Earn Out Payment and the delivery of the Earn Out
      Obligation to the Trust, and the delivery of the other documents set forth
      in
Section 2.03 will take place at a closing (the
      "Closing") to be held at the offices of Shearman & Sterling
      LLP, 599 Lexington Avenue, New York, New York at 10:00 a.m. New York time on
      either (a) January 3, 2008 or (b) the third Business Day to occur following
      the
      satisfaction or waiver of the conditions to the obligations of the Parties
      set
      forth in Article VIII (other than those to be satisfied or waived at the
      Closing, but subject to the satisfaction or waiver thereof at the Closing),
      whichever is later, or at such other place or at such other time or on such
      other date as the Parties may agree upon in writing (the "Closing
      Date").

     

    SECTION
      2.03  Deliveries
      by the Parties.

     

    (a)  BSC
      Parties.  At the Closing, the BSC Parties will deliver to the
      Trust the following:

     

    (i)  $650,000,000.00
      in cash less the amount of any Earn Out Payment paid by Scimed to the Trust
      after the date hereof and before the Closing, payable by Scimed in immediately
      available funds by wire transfer to an account designated by the Trust (such
      account to be designated not fewer than two Business Days prior to the
      anticipated Closing Date) (the "First Earn Out
      Payment");

     

    (ii)  the
      Reaffirmation, duly executed by Parent;

     

    (iii)  the
      Earn
      Out Obligation, duly executed by Scimed;

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    (iv)  a
      counterpart to the Settlement and Release Agreement executed by Parent and
      Scimed;

     

    (v)  a
      counterpart to the Amended and Restated Trust Agreement;

     

    (vi)  certified
      resolutions of the Board of Directors of each of the BSC Parties, authorizing
      the transactions contemplated by this Agreement;

     

    (vii)  such
      other documents and instruments as may be reasonably necessary to consummate
      the
      transactions contemplated by this Agreement; and

     

    (viii)  a
      duly
      executed certificate of the secretary or assistant secretary of each of the
      BSC
      Parties as to incumbency and specimen signatures of officers of the BSC Parties
      executing this Agreement.

     

    (b)  Trust/Stockholders'
      Representative.  At the Closing, the Trust or the Stockholders'
      Representative, as applicable, will deliver to Scimed, as applicable, the
      following:

     

    (i)  a
      duly
      executed certificate of each of the Trustees and the individuals comprising
      the
      Stockholders' Representative as to the incumbency and specimen signatures of
      the
      other Trustee or individual, as applicable;

     

    (ii)  an
      acknowledgement of the Reaffirmation;

     

    (iii)  a
      receipt
      to Scimed for the First Earn Out Payment and the Earn Out
      Obligation;

     

    (iv)  a
      counterpart to the Settlement and Release Agreement executed by each of the
      Trust, the Trustees and the Stockholders' Representative;

     

    (v)  a
      counterpart to the Amended and Restated Trust Agreement; and

     

    (vi)  such
      other documents and instruments as may be reasonably necessary to consummate
      the
      transactions contemplated by this Agreement.

     

    SECTION
      2.04  Withholding
      Rights.  Each
      of the BSC Parties will be entitled to deduct and withhold from any amounts
      otherwise payable pursuant to this Agreement (including payments on or with
      respect to the Earn Out Obligation) such amount as they are required to deduct
      and withhold with respect to the making of such payment under applicable Tax
      Law.  To the extent that amounts are so withheld and properly paid to
      the appropriate Tax authority, such amounts will be treated for purposes of
      this
      Agreement as having been paid to the holder of the securities or rights in
      respect of which such deduction and withholding was made.  The
      Stockholders' Representative and the Trust will provide reasonable assistance
      to
      the BSC Parties in connection with the determination of amounts required to
      be
      deducted and withheld and compliance with related information reporting
      requirements.  If the BSC Parties intend to deduct and withhold from
      an amount payable pursuant to this Agreement (including payments on or with
      respect to the Earn Out Obligation) in a manner that materially differs from
      the
      manner in which the BSC Parties deducted and withheld amounts from the Earn
      Out
      Payment made on or 

     

     

    
      
        
        

      

      
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    about
      March 9, 2007, the BSC Parties will promptly provide the Trust with a letter
      from counsel to the BSC Parties (i) describing in reasonable detail any change
      in facts or circumstances necessitating such change in the manner of such
      deduction and withholding or (ii) providing a reasoned analysis of the change
      in
      applicable Law or change in understanding or interpretation of applicable Law
      necessitating such change in the manner of deduction and
      withholding.

     

    SECTION
      2.05  Amendment
      and Restatement of the Trust Agreement; Distributions by the
      Trust.
      The Parties agree that, effective as of the Closing Date, the Trust Agreement
      will be amended so as (a) to remove Scimed as a party therefrom and (b) as
      otherwise agreed by the parties thereto (other than Scimed) (as so amended,
      the
      "Amended and Restated Trust
      Agreement").  Notwithstanding any amendment to the Trust
      Agreement, the Trust agrees that the amount of the First Earn Out Payment and
      the Earn Out Obligation, when paid, will be distributed to the Beneficiaries
      of
      the Trust (as defined in the Trust Agreement) as promptly as practical, but
      in
      no event later than 45 days after the receipt of such amounts by the Trust;
      provided that the Trust will be entitled to withhold from the amounts to
      be so distributed to the Beneficiaries such amounts as it determines in
      accordance with its fiduciary duties as are necessary to allow it to discharge
      its obligations to the Beneficiaries, including to (i) enforce any rights of
      the
      Trust or the Beneficiaries of the Trust and (ii) reserve sufficient funds for
      the resolution of any claims against or expenses of the Trust (including claims
      for indemnification); provided,further that nothing in this
Section 2.05 will obligate the Trust to distribute any amounts
      to
      the Beneficiaries unless such distribution is permitted by applicable
      Law.  The Parties acknowledge that the Trust has disclosed its
      intention to withhold at least the amount set forth on Schedule 2.05
      during 2008.

     

     

    ARTICLE
      III.

    REPRESENTATIONS
      AND WARRANTIES

    OF
      THE BSC PARTIES

     

    Each
      of
      the BSC Parties hereby represents and warrants, jointly and severally, to the
      Trust and the Stockholders' Representative as follows:

     

    SECTION
      3.01  Organization
      and Authority. 
      Each of the BSC Parties is a corporation duly organized, validly existing and
      in
      good standing under the laws of its jurisdiction of incorporation and has all
      necessary corporate power and authority to 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 and
      the agreements contemplated hereby (other than the Purchase Agreements) by
      the
      BSC Parties, the performance by the BSC Parties of each of their obligations
      hereunder and thereunder and the consummation by the BSC Parties of the
      transactions contemplated hereby and thereby have been duly and validly
      authorized by all requisite action on the part of each of the BSC Parties,
      and
      no other corporate proceedings on the part of the BSC Parties are necessary
      to
      authorize this Agreement or the agreements contemplated hereby (other than
      the
      Purchase Agreements) or to consummate the transactions contemplated hereby
      and
      thereby.  This Agreement and the agreements contemplated hereby (other
      than the Settlement and Release Agreement and the Purchase Agreements) have
      been, and the Settlement and Release Agreement will be, duly and validly

     

     

    
      
        
        

      

      
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    executed
      and delivered by the BSC Parties, and (assuming due authorization, execution
      and
      delivery by the Trust and the Stockholders' Representative) this Agreement
      and
      the agreements contemplated hereby (other than the Purchase Agreements)
      constitute, and the Settlement and Release Agreement will constitute, the legal,
      valid and binding obligations of the BSC Parties, enforceable against each
      of
      the BSC Parties in accordance with their respective terms.

     

    SECTION
      3.02  No
      Conflict.  Except
      as may result from any facts or circumstances relating solely to the Trust
      or
      the Stockholders' Representative, the execution, delivery and performance by
      the
      BSC Parties of this Agreement and the agreements contemplated hereby (other
      than
      the Purchase Agreements) do not and will not (a) violate, conflict with or
      result in the breach of any provision of the certificate of incorporation or
      bylaws of any of the BSC Parties, (b) conflict with or violate any Law or
      Governmental Order applicable to the BSC Parties or by which any property or
      asset of Parent or Scimed is bound or affected, (c) result in any breach of,
      or
      constitute a default (or an event which, with notice or lapse of time or both,
      would become a default) under, require any consent of any Person pursuant to,
      or
      give to others any right of termination, modification, amendment, acceleration
      or cancellation of, give rise to any increased, guaranteed, accelerated or
      additional rights or entitlements of any Person, or result in the creation
      of a
      lien or other encumbrance on any property or asset of Parent or Scimed pursuant
      to any note, bond, mortgage, indenture, contract, agreement, lease, license,
      permit, franchise or other instrument or obligation to which Parent or Scimed
      is
      a party or by which Parent or Scimed or any property, asset or right of Parent
      or Scimed is bound or affected, or (d) require any consent, approval,
      authorization or permit of, or filing with or notification to, any Governmental
      Authority, except, in the case of clause (b), (c) or (d),
      for any such conflicts, violations, breaches, defaults or other occurrences
      which would not, individually or in the aggregate, prevent or materially delay
      consummation of any of the transactions contemplated by this Agreement or
      otherwise prevent any of the BSC Parties from performing its obligations
      hereunder or under the agreements contemplated hereby.

     

    SECTION
      3.03  Financing.

     

    (a)  The
      execution and delivery of the Earn Out Obligation by Scimed and the performance
      by Scimed of its obligations thereunder have been duly and validly authorized
      by
      all requisite action on the part of Scimed, and no other corporate proceedings
      on the part of Scimed are necessary to authorize the Earn Out
      Obligation.  When delivered at the Closing, the Earn Out Obligation
      will be duly and validly executed and delivered by Scimed, and will constitute
      the legal, valid and binding obligations of Scimed, enforceable against it
      in
      accordance with its terms.  The execution and delivery of the Guaranty
      by Parent and the performance by Parent of its obligations thereunder have
      been
      duly and validly authorized by all requisite action on the part of Parent,
      and
      no other corporate proceedings on the part of Parent are necessary to authorize
      the Guaranty.  When delivered at the Closing, the Earn Out Obligation
      will be duly and validly executed and delivered by Parent, and will constitute
      the legal, valid and binding obligations of Parent, enforceable against it
      in
      accordance with its terms.

     

    (b)  The
      execution, delivery and performance by Scimed of the Earn Out Obligation and
      by
      Parent of the Guaranty do not and will not (i) violate, conflict with or result
      in the breach of any provision of the certificate of incorporation or bylaws
      of
      Scimed or Parent, (ii) 

     

     

     

    
      
        
        

      

      
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    conflict
      with or violate any Law or Governmental Order applicable to Scimed or Parent
      or
      by which any property or asset of  Scimed or Parent is bound or
      affected, (iii) result in any breach of, or constitute a default (or an event
      which, with notice or lapse of time or both, would become a default) under,
      require any consent of any Person pursuant to, or give to others any right
      of
      termination, modification, amendment, acceleration or cancellation of, give
      rise
      to any increased, guaranteed, accelerated or additional rights or entitlements
      of any Person, or result in the creation of a lien or other encumbrance on
      any
      property or asset of Scimed or Parent pursuant to, any note, bond, mortgage,
      indenture, contract, agreement, lease, license, permit, franchise or other
      instrument or obligation to which Scimed or Parent is a party or by which it
      or
      any its properties, assets or rights is bound or affected, or (iv) require
      any
      consent, approval, authorization or permit of, or filing with or notification
      to, any Governmental Authority, except, in the case of clause (ii), (iii) or
      (iv), for any such conflicts, violations, breaches, defaults or other
      occurrences which would not, individually or in the aggregate, prevent Scimed
      or
      Parent from performing its obligations under the Earn Out Obligation or the
      Guaranty.

     

    (c)  Either
      Parent or Scimed has, and will have at the Closing and on March 6, 2009,
      sufficient funds available to pay the First Earn Out Payment and all amounts
      due
      and owing under the Earn Out Obligation on such date.  Each of Parent
      and Scimed covenants not to incur any obligation, commitment, restriction or
      liability of any kind which would preclude its ability to perform the
      obligations required to be performed under the Earn Out Obligation or the
      Guaranty.

     

    ARTICLE
      IV.

    REPRESENTATIONS
      AND WARRANTIES OF
      THE TRUST

     

    The
      Trust
      hereby represents and warrants to the BSC Parties  as
      follows:

     

    SECTION
      4.01  Organization
      and Authority. 
      The Trust is a trust duly organized and validly existing under the laws of
      the
      State of Delaware and has all necessary trust power and authority to execute
      and
      deliver this Agreement and the Settlement and Release Agreement, to carry out
      its obligations hereunder and thereunder, and to consummate the transactions
      contemplated hereby and thereby.  The execution and delivery of this
      Agreement and the Settlement and Release Agreement by the Trust or the Trustees,
      as applicable, the performance by the Trust or the Trustees, as applicable,
      of
      its obligations hereunder and thereunder and the consummation by the Trust
      or
      the Trustees, as applicable, of the transactions contemplated hereby and thereby
      have been duly and validly authorized by all requisite trust action on the
      part
      of the Trust.  Subject to obtaining the approval of the Earn Out
      Recipients described in clause (b) of the definition of the Requisite Earn
      Out
      Recipient Approval, no other trust proceedings on the part of the Trust are
      necessary to authorize this Agreement or the Settlement and Release Agreement
      or
      to consummate the transactions contemplated hereby and thereby.  This
      Agreement has been, and the Settlement and Release Agreement will be, duly
      and
      validly executed and delivered by the Trust or the Trustees, as applicable,
      and
      (assuming due authorization, execution and delivery by the BSC Parties) this
      Agreement constitutes, and the Settlement and Release Agreement will constitute,
      the legal, valid and binding obligation of the Trust or the Trustees, as
      applicable, enforceable against the Trust in accordance with their 

     

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    respective
      terms.  Pursuant to Section 7.2 of the Trust Agreement, the Trustees
      have delivered to Parent a duly executed certificate in the form set forth
      on
Exhibit 4.01 hereto.

     

    SECTION
      4.02  No
      Conflict.  Except
      as may result from any facts or circumstances relating solely to the BSC
      Parties, the execution, delivery and performance by the Trust of this Agreement
      and the Settlement and Release Agreement do not and will not (a) violate,
      conflict with or result in the breach of any provision of the Trust Agreement
      or
      the Merger Agreement assuming, in the case of this Agreement, receipt of the
      approval described in clause (b) of the definition of Requisite Earn Out
      Recipient Approval, (b) conflict with or violate any Law or Governmental Order
      applicable to the Trust or by which any property or assets of the Trust are
      bound or affected, (c) result in any breach of or constitute a default (or
      an
      event which, with notice or lapse of time or both, would become a default)
      under, require any consent of any Person pursuant to, or give to others any
      right of termination, modification, amendment, acceleration or cancellation
      of,
      give rise to any increased, guaranteed, accelerated or additional rights or
      entitlements of any Person, or result in the creation of a lien or other
      encumbrance on any property or asset of the Trust pursuant to, any note, bond,
      mortgage, indenture, contract, trust or the agreement, lease, license, permit,
      franchise or other instrument or obligation to which the Trust is a party or
      by
      which the Trust or any property, asset or right of the Trust is bound or
      affected, or (d) require any consent, approval, authorization or permit of,
      or
      filing with or notification to, any Governmental Authority, except, in the
      case
      of clause (b), (c) or (d), for any such conflicts,
      violations, breaches, defaults or other occurrences which would not,
      individually or in the aggregate, prevent or materially delay consummation
      of
      any of the transactions contemplated by this Agreement or otherwise prevent
      the
      Trust from performing its obligations hereunder or under the Settlement and
      Release Agreement.

     

     

    ARTICLE
      V.

    REPRESENTATIONS
      AND WARRANTIES OF THE STOCKHOLDERS'
      REPRESENTATIVE

     

    Each
      of
      the Persons constituting the Stockholders' Representative hereby represents
      and
      warrants, jointly and severally, to the BSC Parties, as follows:

     

    SECTION
      5.01  Authority
      of the Stockholders' Representative.  Each
      of the Persons constituting the Stockholders' Representative has all necessary
      power and authority to execute and deliver this Agreement and the Settlement
      and
      Release Agreement and to consummate the transactions contemplated hereby and
      thereby.  Assuming due authorization, execution and delivery of this
      Agreement and the Settlement and Release Agreement by the BSC Parties, this
      Agreement has been, and the Settlement and Release Agreement will be, duly
      executed and delivered by the Stockholders' Representative and constitute or
      will constitute, as applicable, the legal, valid and binding obligation of
      the
      Stockholders' Representative, enforceable against the Stockholders'
      Representative in accordance with their respective terms; provided that
      the approval of the Earn Out Recipients described in clause (b) of the
      definition of Requisite Earn Out Recipient Approval shall have been
      obtained.

     

    SECTION
      5.02  No
      Conflict.  Except
      as may result from any facts or circumstances relating solely to one or more
      of
      the BSC Parties, the execution, delivery and performance by 

     

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    the
      Stockholders' Representative of this Agreement and the Settlement and Release
      Agreement do not and will not (a) violate, conflict with or result in the breach
      of any provision of the Trust Agreement or the Merger Agreement assuming, in
      the
      case of this Agreement, receipt of the approval described in clause (b) of
      the
      definition of Requisite Earn Out Recipient Approval, (b) conflict with or
      violate any Law or Governmental Order applicable to the Stockholders'
      Representative or by which any property or asset of each of the Persons
      constituting the Stockholders' Representative is bound or affected, (c) result
      in any breach of, or constitute a default (or an event which, with notice or
      lapse of time or both, would become a default) under, require any consent of
      any
      Person pursuant to, or give to others any right of termination, modification,
      amendment, acceleration or cancellation of, give rise to any increased,
      guaranteed, accelerated or additional rights or entitlements of any Person
      or
      result in the creation of a lien or other encumbrance on any property or asset
      of the Stockholders' Representative pursuant to, any note, bond, mortgage,
      indenture, contract, agreement, lease, license, permit, franchise or other
      instrument or obligation to which the Stockholders' Representative is a party
      or
      by which the Stockholders' Representative or any property, asset or right of
      the
      Stockholders' Representative is bound or affected, or (d) require any consent,
      approval, authorization or permit of, or filing with or notification to, any
      Governmental Authority, except, in the case of clause (b), (c) or
(d), for any such conflicts, violations, breaches, defaults
      or other
      occurrences which would not, individually or in the aggregate, prevent or
      materially delay consummation of any of the transactions contemplated by, this
      Agreement or otherwise prevent the Stockholders' Representative from performing
      its obligations hereunder or under the Settlement and Release
      Agreement.

     

    SECTION
      5.03  Proxy
      of Mann and Certain Mann-Controlled Earn Out
      Recipients.  Mann
      and the Mann-Controlled Earn Out Recipients listed on Exhibit 5.03(a)(i)
      have duly and validly executed a joint proxy in the form of
Exhibit 5.03(a)(ii) and delivered to the Stockholders'
      Representative such proxy (collectively, the "Mann
      Proxy").  The Earn Out Rights covered by the Mann Proxy
      constitute more than fifty percent of all of the outstanding Earn Out
      Rights.  If the Earn Out Recipient approvals described in clause (a)
      of the definition of Requisite Earn Out Recipient Approval have been obtained,
      the Earn Out Rights covered by the Mann Proxy will be voted in favor of this
      Agreement, the Purchase Agreements and the consummation of the transactions
      contemplated hereby and thereby.

     

     

    ARTICLE
      VI.

    JOINT
      REPRESENTATIONS AND WARRANTIES OF PARENT AND STOCKHOLDERS
      REPRESENTATIVE

     

    Parent
      and the Stockholders' Representative hereby represent and warrant, jointly
      and
      severally, to each other as follows:

     

    SECTION
      6.01  Authority
      of Parent and the Stockholders' Representative.  The
      Company has all necessary power and authority to execute and deliver this
      Agreement and to consummate the transactions contemplated hereby and
      thereby.  Assuming due authorization, execution and delivery of this
      Agreement by the other Parties, this Agreement has been duly executed and
      delivered by the Company and constitutes the legal, valid and binding obligation
      of the Company, enforceable against the Company in accordance with its
      terms.

     

    
      
        
        

      

      
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    SECTION
      6.02  No
      Conflict.  Except
      as may result from any facts or circumstances relating to the other Parties,
      the
      execution, delivery and performance by the Company of this Agreement does not
      (a) violate, conflict with or result in the breach of any provision of the
      certificate of incorporation or bylaws of the Company, (b) conflict with or
      violate any Law or Governmental Order applicable to the Company or by which
      any
      property or asset of the Company is bound or affected or (c) require any
      consent, approval, authorization or permit of, or filing with or notification
      to, any Governmental Authority, except, in the case of clause (b)
      or  (c), for any such conflicts, violations, breaches, defaults
      or other occurrences which would not, individually or in the aggregate, prevent
      or materially delay consummation of any of the transactions contemplated by
      this
      Agreement or otherwise prevent the Company from performing its obligations
      hereunder.

     

    ARTICLE
      VII.

    ADDITIONAL
      AGREEMENTS

     

    SECTION
      7.01  Public
      Announcements.

     

    (a)  The
      initial press release with respect to this Agreement or the transactions
      contemplated hereby will be substantially in the form of
Exhibit 7.01(a)(i) (the "Press Release") and will
      be issued on the date hereof.  The Parties acknowledge and agree that,
      to the extent practical, they will answer any questions asked regarding this
      Agreement and the transactions contemplated hereby (e.g., during an analyst
      call
      or to investors in private) using the attached answers to frequently asked
      questions (the "FAQs") set forth on Exhibit
      7.01(a)(ii).

     

    (b)  Other
      than the Press Release and the FAQs, so long as this Agreement is in effect,
      the
      BSC Parties will, and will cause their Affiliates to, consult with the
      Stockholders' Representative before issuing any other press releases or
      otherwise making public announcements with respect to this Agreement, the
      transactions contemplated by this Agreement, Mann, Jeffrey H. Greiner, any
      of
      the Persons constituting the Stockholders' Representative, the Trust or any
      of
      their Affiliates, and, except for any press release or public statement required
      by Law or any listing agreement with any U.S. or international securities
      exchange, including the New York Stock Exchange, will not issue any press
      release or make any public statement with respect to any of the foregoing
      matters without the consent of the Stockholders' Representative, which consent
      will not be unreasonably withheld, delayed or conditioned.

     

    (c)  Other
      than the Press Release and the FAQs, so long as this Agreement is in effect,
      the
      Trust and the Stockholders' Representative will, and will cause their Affiliates
      (other than Excluded Mann Affiliates (as defined in the Purchase
      Agreements))  to, consult with Parent before issuing any other press
      releases or otherwise making public announcements with respect to this
      Agreement, the transactions contemplated by this Agreement, or any of the BSC
      Parties or their Affiliates, and, except for any press release or public
      statement required by Law or any listing agreement with any U.S. or
      international securities exchange, including the New York Stock Exchange, the
      American Stock Exchange or NASDAQ will not issue any press release or make
      any
      public statement with respect to any of the foregoing matters without the
      consent of Parent, which consent will not be unreasonably withheld, delayed
      or
      conditioned.

     

     

     

     

    
      
        
        

      

      
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    (d)  Notwithstanding
      Section 7.01(b) or (c), if a release, announcement or statement
      described in Section 7.01(b) or (c) is required by Law or the
      rules or regulations of any applicable United States or international securities
      exchange or Governmental Authority to which the relevant Party is subject,
      and
      any portion of the subject matter of such release, announcement or statement
      is
      contained in the Press Release or the FAQs, the Party required to make the
      release, announcement or statement will conform in all material respects that
      portion of such release, announcement or statement to the Press Release or
      the
      FAQs and will notify the Parent or the Stockholders' Representative, as
      applicable, by telephone, email or fax within two hours of any officers in
      the
      legal department, corporate communications department or similar department
      of
      such Party that routinely performs such functions concluding that it is
      reasonably likely that such Party will issue a release, announcement or
      statement.  If a release, announcement or statement described in
Section 7.01(b) or (c) is required by Law or the rules or
      regulations of any applicable United States or international securities exchange
      or Governmental Authority to which the relevant Party is subject, and any
      portion of the subject matter of such release, announcement or statement is
      not
      contained in the Press Release or the FAQs, the Party required to make the
      release, announcement or statement will notify Parent or the Stockholders'
      Representative, as applicable, by telephone, email or fax within two hours
      of
      any officers in the legal department, corporate communications department or
      similar department of such Party that routinely performs such functions
      concluding that it is reasonably likely that such Party will issue a release,
      announcement or statement and will use its reasonable best efforts to allow
      such
      other Party a reasonable time to comment on such release, announcement or
      statement in advance of such issuance and will accept the reasonable comments
      of
      such other Party to such release.  Notwithstanding anything contained
      in this Section 7.01(d), language in a release, announcement or
      statement regarding the transactions contemplated by this Agreement and the
      Ancillary Agreements that is substantially similar to language regarding such
      matters that has been previously reviewed by Parent or the Stockholders'
      Representative in compliance with the procedures set forth in this Section
      7.01(d) will not require notification to the Stockholders' Representative or
      Parent, as applicable, pursuant to this Section 7.01(d).  The
      notices provided for in this Section 7.01(d) will describe the time
      frame of the release, announcement or statement.  Any reference to a
      "Party" referenced in a release, announcement or statement in this
Section 7.01 will include such Party and, to the extent applicable,
      its Affiliates.

     

    SECTION
      7.02  Further
      Action.

     

    (a)  The
      Parties will use all 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 or otherwise to consummate and make
      effective the transactions contemplated by this Agreement as promptly as
      practicable, including: (i) to cause to be satisfied the conditions contained
      herein, (ii) to obtain from Governmental Authorities and other Persons all
      consents, approvals, authorizations, qualifications and order as are necessary
      for the consummation of the transactions contemplated by this Agreement, (iii)
      promptly making all necessary filings, and thereafter making any other required
      submissions, with respect to this Agreement required under any applicable Law
      and (iv) having vacated, lifted, reversed or overturned any Governmental Order
      or other Action that is then in effect and that enjoins, restrains, conditions,
      makes illegal or otherwise restricts or prohibits the consummation of the
      transactions contemplated by this Agreement.  Notwithstanding the
      foregoing and solely for the avoidance of doubt, other than to the extent
      expressly set forth in Section 5.03, neither Mann nor 

     

     

    
      
        
        

      

      
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    any
      of
      his Affiliates shall have any obligation whatsoever to vote the Earn Out Rights
      owned by them or solicit the other Earn Out Recipients to vote the Earn Out
      Rights held by any of them with respect to this Agreement, the Purchase
      Agreements or the transactions contemplated hereby or thereby; provided
      that the Information Statement will contain a statement to the effect that
      the
      Mann Proxy will be voted in favor of this Agreement, the Purchase Agreements
      and
      the transactions contemplated hereby and thereby if the Earn Out Recipient
      approvals described in clause (a) of the definition of Requisite Earn Out
      Recipient Approval have been obtained.

     

    (b)  Notwithstanding
      anything in Section 7.02(a) to the contrary, with respect to the
      solicitation described in Section 7.03, the sole obligations of the Trust
      and the Stockholders' Representative will be limited to those explicitly set
      forth in Section 7.03 and the Trust and the Stockholders' Representative
      will have no obligation to endorse, or recommend that the Earn Out Recipients
      approve this Agreement, the Purchase Agreements or the consummation of the
      transactions contemplated hereby or thereby.

     

    SECTION
      7.03  Approval
      by Earn Out Recipients.

     

    (a)  The
      Parties will use their commercially reasonable efforts to mail the Information
      Statement and the ballot to the Minority Earn Out Recipients as promptly as
      reasonably practicable, but in any event no later than August 29,
      2007.  Within eight Business Days after the date hereof, the
      Stockholders' Representative will distribute to the BSC Parties (i) a draft
      information statement in respect of the transactions contemplated hereby and
      by
      the Purchase Agreements (the "DraftInformation
      Statement"), and (ii) a draft written ballot pursuant to which a
      Minority Earn Out Recipient may indicate his/her/its approval/disapproval of
      this Agreement, the Purchase Agreements and the transactions contemplated hereby
      and thereby and, if approved, his/her/its agreement to the releases to be
      contained in the Information Statement in the form attached hereto as
Exhibit 7.03(a)(ii).  Within three Business Days after the
      receipt by the BSC Parties of the Draft Information Statement and the draft
      ballot described in the preceding sentence, Parent will deliver to the
      Stockholders' Representative the reasonable comments of the BSC Parties, if
      any,
      to both the Draft Information Statement and such draft ballot.  If any
      such comments are delivered by Parent to the Stockholders' Representative,
      within three Business Days after the receipt of such reasonable comments by
      the
      Stockholders' Representative, the Stockholders' Representative will incorporate
      such reasonable comments into the Draft Information Statement (such revised
      document, the "Information Statement") and the draft ballot,
      and will mail the Information Statement and such revised ballot to the Minority
      Earn Out Recipients.  The revised ballots described in the preceding
      sentence, duly completed by the Minority Earn Out Recipients, will be accepted
      by the Stockholders' Representative only until the date that is 15 Business
      Days
      after the commencement of such mailing.  None of the date hereof, the
      date on which the Draft Information Statement and the ballot is delivered to
      the
      BSC Parties, and the date on which the reasonable comments to the Draft
      Information Statement and the ballot are received, as the case may be,
      will  count as the first Business Day of such respective counting
      period.

     

    (b)  Each
      of
      the BSC Parties, on the one hand, and the Trust and the Stockholders'
      Representative, on the other hand, represents and warrants to the other Parties
      that the information supplied in writing by such Party or any of its Affiliates
      or Representatives expressly for inclusion in the Information Statement will
      not
      contain any untrue statement of a 

     

     

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    material
      fact or omit to state any material fact required to be stated therein or
      necessary in order to make the statements therein, in light of the circumstances
      under which they are made, not misleading.

     

    SECTION
      7.04  Earn
      Out Recipient and Trustee Liability.

     

    Each
      of
      the BSC Parties acknowledges that pursuant to the Trust Agreement and the
      Amended and Restated Trust Agreement (a) neither the Earn Out Recipients, the
      Trustees nor their agents will be liable for a breach or failure to comply
      with
      this Agreement or to consummate the transactions contemplated hereby and (b)
      the
      BSC Parties will look solely to assets of the Trust for the payment of any
      claim
      hereunder or performance hereunder.

     

    SECTION
      7.05  Notification
      of Certain Matters.  

     

    (a)  The
      BSC
      Parties will give prompt written notice to the Stockholders' Representative
      and
      the Trust of (i) the occurrence or non-occurrence of any
      change, condition or event the occurrence or non-occurrence of which would
      render any representation or warranty of a BSC Party contained in this
      Agreement, if made on or immediately following the date of such event, untrue
      or
      inaccurate, (ii) any failure of a BSC Party, or any Affiliate of a BSC Party
      to
      comply with or satisfy any covenant or agreement to be complied with or
      satisfied by it hereunder or any event or condition that would otherwise
      reasonably be expected to result in the nonfulfillment of any of the conditions
      to the obligations of the Stockholders' Representative or the Trust hereunder
      or
      (iii) any Action pending or, to Parent, Scimed or the Company's knowledge,
      threatened against a Party or the Parties, relating to this Agreement or the
      transactions contemplated hereby.

     

    (b)  The
      Trust
      and the Stockholders' Representative will give prompt written notice to Parent
      of (i) the occurrence or non-occurrence of any change, condition or event the
      occurrence or non-occurrence of which would render any representation or
      warranty of the Stockholders' Representative or the Trust contained in this
      Agreement, if made on or immediately following the date of such event, untrue
      or
      inaccurate, (ii) any failure of the Stockholders' Representative or the Trust
      to
      comply with or satisfy any covenant or agreement to be complied with or
      satisfied by it hereunder or any event or condition that would otherwise
      reasonably be expected to result in the nonfulfillment of any of the conditions
      to the obligations of the BSC Parties hereunder or (iii) any Action pending
      or,
      to Parent, Scimed or the Company's knowledge, threatened against a Party or
      the
      Parties, relating to this Agreement or the transactions contemplated
      hereby.

     

    SECTION
      7.06  Waiver
      of Time Period.  Notwithstanding
      the provisions of Section 2.12(a) of the Merger Agreement, the
      Stockholders' Representative hereby agrees that the failure to obtain the
      Requisite Earn Out Recipient Approval within 30 Business Days of the date hereof
      will not constitute a failure to obtain such approval.

     

     

     

    
 

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    ARTICLE
      VIII.

    CONDITIONS
      TO CLOSING

     

    SECTION
      8.01  Conditions
      to Obligations of the Parties. The
      obligations of the BSC Parties, the Trust and the Stockholders' Representative
      to consummate the transactions contemplated by this Agreement will be subject
      to
      the fulfillment, at or prior to the Closing, of each of the following
      conditions, either of which may, to the extent permitted by applicable Law,
      be
      waived in writing by any applicable Party in its sole discretion;
provided that such waiver will only be effective as to the obligations of
      such Party:

     

    (a)  No
      Order.  No Governmental Authority shall have enacted, issued,
      promulgated, enforced or entered any Law or Governmental Order (whether
      temporary, preliminary or permanent) that has the effect of making the
      transactions contemplated by this Agreement illegal or that otherwise restrains,
      conditions or otherwise prohibits the consummation of such
      transactions;

     

    (b)  Approval
      by Earn Out Recipients.  The Requisite Earn Out Recipient Approval
      shall have been obtained; and

     

    (c)  Purchase
      Agreements.  The Closing (as that term is defined in each of the
      Purchase Agreements) for each of the Purchase Agreements shall have
      occurred.

     

    SECTION
      8.02  Conditions
      to Obligations of the BSC Parties.  The
      obligations of the BSC Parties to consummate the transactions contemplated
      by
      this Agreement shall be subject to the fulfillment, at or prior to the Closing,
      of each of the following conditions, which may be waived in writing by the
      BSC
      Parties in their sole discretion:

     

    (a)  Settlement
      and Release Agreement.  Each of the Trust and the Stockholders'
      Representative shall have duly executed and delivered its counterpart to the
      Settlement and Release Agreement; and

     

    (b)  Mutual
      Releases of Mann, Jeffrey H. Greiner, Jeffrey D. Goldberg and Carla
      Woods.  Parent shall have received duly executed limited mutual
      releases in the form set forth in Exhibit 8.02(b) from each of Mann,
      Jeffrey H. Greiner, Jeffrey D. Goldberg and Carla Woods; provided that
      the condition contained in this Section 8.02(b) will be deemed to have
      been satisfied with respect to any one of the foregoing individuals if Parent
      does not deliver to such individual a limited mutual release duly executed
      by
      Parent in the form set forth in Exhibit 8.02(b).

     

    SECTION
      8.03  Conditions
      to Obligations of the Trust and the Stockholders'
      Representative.  The
      obligations of the Trust and the Stockholders' Representative to consummate
      the
      transactions contemplated by this Agreement shall be subject to the fulfillment,
      at or prior to the Closing, of the following conditions, which may be waived
      in
      writing by the Trust and the Stockholders' Representative in their sole
      discretion:

     

    (a)  Settlement
      and Release Agreement.  Each
      of the BSC Parties shall have duly executed and delivered its counterpart to
      the
      Settlement and Release Agreement;

     

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    (b)  Earn
      Out Obligation.  Scimed shall have duly executed and delivered to
      the Trust the Earn Out Obligation;

     

    (c)  Reaffirmation.  Parent
      shall have duly executed and delivered to the Trust the Reaffirmation;
      and

     

    (d)  Trust
      Agreement Amendment.  Scimed shall have duly executed and
      delivered to the Trust a counterpart to the Amended and Restated Trust Agreement
      providing only that Scimed will no longer be a party to the Trust
      Agreement.

     

    ARTICLE
      IX.

    TERMINATION

     

    SECTION
      9.01  Termination. This
      Agreement may be terminated at any time prior to the Closing:

     

    (a)  by
      either
      Parent or the Trust, if the Closing shall not have occurred by January 10,
      2008;
provided, that the right to terminate this Agreement under this
Section 9.01(a) will not be available to (i) Parent if any of the
      BSC Parties' 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 or (ii) the Trust if any of the Stockholders'
      Representative's or the Trust's 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;

     

    (b)  by
      either
      Parent or the Trust, if either or both of the Purchase and Sale Agreements
      (the
      "Purchase Agreements"), dated as of August 9, 2007, among the
      BSC Parties, the Company and Advanced Bionics Holding Corporation, a California
      corporation or Infusion Systems Holding Corporation, a California corporation,
      shall have been terminated;

     

    (c)  by
      either
      Parent or the Trust, in the event that any Governmental Order restraining,
      enjoining or otherwise prohibiting the transactions contemplated by this
      Agreement shall have become final and nonappealable; provided that the
      Party so requesting termination shall have used all reasonable efforts, in
      accordance with Section 7.02(a), to have such Governmental Order
      vacated;

     

    (d)  by
      either
      Parent or the Trust, if the Requisite Earn Out Recipient Approval has not been
      obtained on or before the date that is 45 Business Days following the date
      hereof; or

     

    (e)  upon
      the
      mutual written consent of Parent and the Trust.

     

    SECTION
      9.02  Effect
      of Termination. 
      In the event of termination of this Agreement as provided in
Section 9.01:

     

    (a)  Termination.  Subject
      to Section 9.02(b), this Agreement will forthwith become null, void and
      of no further force or effect, it being understood and agreed that the Merger
      Agreement as it existed before the date of this Agreement will continue in
      full
      force and 

     

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    effect
      without giving effect to either Amendment. In furtherance of the foregoing,
      if
      this Agreement is terminated after the effectiveness of Amendment 1, and after
      the date on which the Earn Out Payment would have been payable upon the
      Company's achieving Aggregate Net Sales for the immediately preceding
      twelve-month period of more than $300,000,000 in accordance with clause (i)(B)
      of the definition of Additional Earn Out Payment in the Merger Agreement, then
      Scimed will promptly, and in no event later than two Business Days after such
      termination, deliver to the Trust such previously foregone Earn Out Payment
      in
      cash, in immediately available funds by wire transfer to an account designated
      by the Trust.  Notwithstanding the first sentence of this Section
      9.02(a), to the extent any Party takes any actions (or does not take
      actions) expressly in accordance with the Merger Agreement as amended by
      Amendment 1 during the period, if any, between the date on which the Requisite
      Earn Out Recipient Approval shall have been obtained and the date on which
      this
      Agreement shall have been terminated in accordance with this Article IX,
      such Person shall not have any Liability to any other Party for such
      action.

     

    (b)  Survival.  The
      provisions of this Section 9.02 and Article X will survive the
      termination of this Agreement.  Notwithstanding the foregoing, nothing
      in this Section 9.02 or any other part of this Agreement will relieve any
      Party from liability for any breach of this Agreement occurring prior to such
      termination.

     

     

    ARTICLE
      X.

    GENERAL
      PROVISIONS

     

    SECTION
      10.01 
Fees
      and Expenses.  Except
      as otherwise specified in this Agreement, all costs and expenses, including
      legal fees and the fees and expenses of any financial advisors incurred in
      connection with this Agreement and the transactions contemplated hereby will
      be
      paid, to the extent incurred by any of the BSC Parties or any of their
      respective Affiliates, by Parent, and to the extent incurred by the Trust,
      the
      Stockholders' Representative or any of their respective Affiliates, by the
      Trust
      whether or not the Closing shall have occurred.

     

    SECTION
      10.02  Amendment.  This
      Agreement may only be amended by the Parties at any time prior to the Closing
      by
      an instrument in writing signed by each of the Parties.

     

    SECTION
      10.03  Waiver.  Any
      (a) extension of the time for the performance of any obligation or other act
      of
      any Party, (b) waiver of any inaccuracy in the representations and warranties
      of
      any Party contained herein or in any document delivered pursuant hereto or
      (c)
      waiver of compliance with any agreement of any Party or any condition to its
      own
      obligations contained herein will be valid only if set forth in an instrument
      in
      writing signed by the Party or Parties to be bound thereby.  No
      failure or delay of any Party in exercising any right or remedy hereunder will
      operate as a waiver thereof, nor will any single or partial exercise of any
      such
      right or power, or any abandonment or discontinuance of steps to enforce such
      right or power, or any course of conduct, preclude any other or further exercise
      thereof or the exercise of any other right or power.  The rights
      and remedies of the Parties are cumulative and are not exclusive of any
      rights or remedies which they would otherwise have hereunder.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    SECTION
      10.04  Notices.  All
      notices, requests, Claims and other communications hereunder will be in writing
      and will be given (and will be deemed to have been duly given upon receipt
      as
      conclusively determined by the date shown on a signed receipt for such notice)
      by delivery in person, by overnight courier, by registered or certified mail
      (postage prepaid, return receipt requested), fax or e-mail to the Parties at
      the
      following addresses (or at such other address for a Party as will be specified
      in a notice given in accordance with this Section 10.04):

     

    if
      to any
      of the BSC Parties or the Company:

     

    One
      Boston Scientific Place

    Natick,
      Massachusetts  01760-1537

    Facsimile
      No:  (508) 650-8951

    Attention:  General
      Counsel

    Email:  paul.sandman@bsci.com

    

    with
      a
      copy to:

     

    Shearman
      & Sterling LLP

    599
      Lexington Avenue

    New
      York,
      New York  10022-6069

    Facsimile
      No:  (212) 848-7179

    Attention:  Clare
      O'Brien

    Email:  cobrien@shearman.com

    

     

    if
      to the
      Trust or the Stockholders' Representative:

     

    Trustees
      of the Bionics Trust or Stockholders' Representative, as applicable

    c/o
      Advanced Bionics Corporation

    Mann
      Biomedical Park

    25129
      Rye
      Canyon Loop

    Valencia,
      CA  91355

    Facsimile
      No:  (661) 362-1700

    Attention:   Trustee
      or Stockholders' Representative

    

    with
      a
      copy to:

     

    Gibson,
      Dunn & Crutcher LLP

    2029
      Century Park East, Suite 4000

    Los
      Angeles, California 90071

    Facsimile
      No:  (310) 552-7053

    Attention:  Jonathan
      K. Layne

    Email:  JLayne@gibsondunn.com

    

     

    SECTION
      10.05  Severability.  If
      any term or other provision of this Agreement is invalid, illegal or incapable
      of being enforced by any rule of Law or public policy, all other 

     

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    conditions
      and provisions of this Agreement will nevertheless remain in full force and
      effect so long as the economic or legal substance of the transactions
      contemplated by this Agreement is not affected in any manner materially adverse
      to any party.  Upon such determination that any term or other
      provision is invalid, illegal or incapable of being enforced, the Parties will
      negotiate in good faith to modify this Agreement so as to effect the original
      intent of the Parties as closely as possible in a mutually acceptable manner
      in
      order that the transactions contemplated by this Agreement are consummated
      as
      originally contemplated to the fullest extent possible.

     

    SECTION
      10.06   Entire
      Agreement; Assignment.  This
      Agreement, the Settlement and Release Agreement and the Earn Out Obligation
      constitute the entire agreement among the Parties with respect to the subject
      matter hereof and supersede all prior agreements (including the letter of intent
      and term sheet, dated May 30, 2007, by and between Parent and Mann, but
      excluding the Merger Agreement which will be amended as contemplated herein)
      and
      undertakings, both written and oral, among the Parties, or any of them, with
      respect to the subject matter hereof.  This Agreement may not be
      assigned by any Party, except that each of the BSC Parties and the Company
      may
      assign all or any of their rights and obligations hereunder to any Affiliate
      of
      Parent, provided that no such assignment will relieve the assigning Party
      of its obligations hereunder if such assignee does not perform such
      obligations.

     

    SECTION
      10.07  Parties
      in Interest.  This
      Agreement will be binding upon and inure solely to the benefit of each Party,
      and nothing in this Agreement, express or implied, is intended to or will confer
      upon any other Person any right, benefit or remedy of any nature whatsoever
      under or by reason of this Agreement.

     

    SECTION
      10.08  Specific
      Performance.  The
      Parties agree that irreparable damage would occur in the event any provision
      of
      this Agreement were not performed in accordance with the terms hereof and that
      the Parties will be entitled to specific performance of the terms hereof, in
      addition to any other remedy at Law or equity.

     

    SECTION
      10.09  Governing
      Law.  This
      Agreement and all disputes or controversies arising out of or relating to this
      Agreement or the transactions contemplated hereby will be governed by, and
      construed in accordance with, the laws of the State of New York.  All
      actions and proceedings arising out of or relating to this Agreement will be
      heard and determined exclusively in any New York federal court sitting in the
      Borough of Manhattan of The City of New York.  In the event that
      jurisdiction is not available in any federal court sitting in the Borough of
      Manhattan of The City of New York, the Parties agree that all such actions
      and
      proceedings will be heard in the state courts of Delaware located in the City
      of
      Wilmington.  The Parties hereby (a) submit to the exclusive
      jurisdiction of any federal court sitting in the Borough of Manhattan of The
      City of New York for the purpose of any Action arising out of or relating to
      this Agreement brought by any Party (subject to the preceding sentence), and
      (b)
      irrevocably waive, and agree not to assert by way of motion, defense, or
      otherwise, in any such Action, any Claim that it is not subject personally
      to
      the jurisdiction of the above-named courts, that its property is exempt or
      immune from attachment or execution, that the Action is brought in an
      inconvenient forum, that the venue of the Action is improper, or that this
      Agreement or the transactions contemplated by this Agreement may not be enforced
      in or by any of the above-named courts.

     

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    SECTION
      10.10  Waiver
      of Jury Trial. 
      Each of the Parties hereby 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 (a) certifies that no representative,
      agent or attorney of any other party has represented, expressly or otherwise,
      that such other party would not, in the event of litigation, seek to enforce
      that foregoing waiver and (b) acknowledges that it has been induced to enter
      into this Agreement by, among other things, the mutual waivers and
      certifications in this Section 10.10.

     

    SECTION
      10.11  Counterparts.  This
      Agreement may be executed and delivered (including by facsimile transmission)
      in
      one or more counterparts, and by the different Parties in separate counterparts,
      each of which when executed will be deemed to be an original but all of which
      taken together will constitute one and the same agreement.

     

     

     

     

     

     

    [SIGNATURE
      PAGE FOLLOWS]

    

     

    
 

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, each of the Parties has executed or caused this Agreement
      to be
      duly executed as of the date first written above by such party or by any officer
      of such party thereunto duly authorized, as applicable.

     

    
       

       

      
        	 	
                BOSTON
                  SCIENTIFIC CORPORATION

              
	 	 
	 	 
	 	
                By:  _______________________________________

              
	 	
                Name:  ________________________________

                Title:    ________________________________

              
	 	 
	 	 
	 	 
	 	 
	 	 
	 	
                BOSTON
                  SCIENTIFIC SCIMED, INC.

              
	 	 
	 	 
	 	
                
                  By:  _______________________________________

                

              
	 	
                
                  Name:  ________________________________
                    
                    Title:    ________________________________

                  

                

              
	 	 

      

       

       

       

       

       

       

       

       

       

       

       

       

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	 	 
	 	 
	 	
                ADVANCED
                  BIONICS CORPORATION

              
	 	 
	 	 
	 	
                
                  By:  _______________________________________

                

              
	 	
                
                  Name:  ________________________________
                    
                    Title:    ________________________________

                  

                

              
	 	 
	 	 
	 	 
	 	 
	 	 
	 	
                THE
                  STOCKHOLDERS' REPRESENTATIVE

              
	 	 
	 	 
	 	
                
                  By:  _______________________________________

                

              
	 	
                
                  Name:  Carla
                    Woods

                

              
	 	 
	 	 
	 	 
	 	
                By:  _______________________________________

              
	 	
                Name:  Jeffrey
                  D. Goldberg

              
	 	 
	 	 
	 	 
	 	 
	 	 
	 	BIONICS
                TRUST
	 	 
	 	 
	 	
                By:  _______________________________________

              
	 	
                Name:  Carla
                  Woods, Trustee

              
	 	 
	 	 
	 	 
	 	
                By:  _______________________________________

              
	 	
                Name:  Jeffrey
                  D. Goldberg, TrusteeWWW.EXFILE.COM -- BOSTON SCIENTIFIC -- FORM 8-K -- 15366 -- EXHIBIT 10.2

    
EXHIBIT
      10.2

    

     

    

     

    

     

    ——————————

     

    FORM
      OF

     

    AMENDMENT
      NO. 1

     

    TO

     

    AGREEMENT
      AND PLAN OF MERGER

     

    ——————————

     

    among

     

    BOSTON
      SCIENTIFIC CORPORATION,

     

    BOSTON
      SCIENTIFIC SCIMED, INC.,

     

    ADVANCED
      BIONICS CORPORATION,

     

    THE
      BIONICS TRUST

     

    and

     

    JEFFREY
      D. GOLDBERG AND CARLA WOODS (COLLECTIVELY IN THEIR CAPACITY AS THE STOCKHOLDERS’
REPRESENTATIVE)

     

    Dated
      as
      of August 9, 2007

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TABLE
      OF CONTENTS

    

      
        	 	 	
                 Page

              
	
                 

              	 	 
	
                ARTICLE
                  I. AMENDMENT

              	
                1

              
	 	 
	
                SECTION 1.01

              	
                Amendment
                  to Article I

              	
                1

              
	
                SECTION 1.02

              	
                Amendment
                  to Section 2.11(e)

              	
                3

              
	
                SECTION 1.03

              	
                Amendment
                  to Section 2.11(f)

              	
                3

              
	
                SECTION 1.04

              	
                Amendment
                  to Section 5.03

              	
                3

              
	
                SECTION 1.05

              	
                Amendment
                  to Section 5.04

              	
                4

              
	
                SECTION 1.06

              	
                Amendment
                  to Section 8.04

              	
                7

              
	 	 	 
	
                ARTICLE
                  II. IMPLEMENTATION

              	
                8

              
	 	 
	
                SECTION 2.01

              	
                Termination
                  of Amendment Agreement

              	
                8

              
	 	 	 
	
                ARTICLE
                  III. GENERAL PROVISIONS

              	
                9

              
	 	 
	
                SECTION 3.01

              	
                No
                  Further Amendment

              	
                9

              
	
                SECTION 3.02

              	
                Counterparts

              	
                9

              

      

     

     

     

     

     

     

    
 

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

    This
      AMENDMENT NO. 1 TO THE AGREEMENT AND PLAN OF MERGER (this “Amendment
      1”), dated as of August 9, 2007 and effective as of the Amendment 1
      Effective Time, is entered into by and among BOSTON SCIENTIFIC CORPORATION,
      a
      Delaware corporation (“Parent”), BOSTON SCIENTIFIC SCIMED,
      INC., (formerly known as Scimed Life Systems, Inc.) a Minnesota corporation
      and
      a wholly owned subsidiary of Parent (“Scimed”), ADVANCED
      BIONICS CORPORATION, a Delaware corporation and a wholly owned subsidiary of
      Scimed (“Advanced Bionics”), the BIONICS TRUST (the
“Trust”) and CARLA WOODS and JEFFREY D. GOLDBERG
      (such persons
      acting together by majority vote, and any predecessor or successor persons
      acting together by majority vote, solely in their capacity as Stockholders’
Representative under the Merger Agreement being the “Stockholders’
Representative”).

     

    WHEREAS,
      Parent, Scimed, Claude Acquisition Corp., a Delaware corporation and a wholly
      owned subsidiary of Scimed, Advanced Bionics, the Trust and the Stockholders’
Representative entered into that certain Agreement and Plan of Merger dated
      as
      of May 28, 2004 (the “Merger
      Agreement”).  Capitalized terms used herein but not defined
      herein have the meaning ascribed to such terms in the Merger
      Agreement.  References herein to a specific Article, Section, Schedule
      or Exhibit will refer, respectively, to Articles, Sections, Schedules or
      Exhibits of the Merger Agreement unless otherwise specified.

     

    WHEREAS,
      this Amendment 1 is being executed and delivered pursuant to Section 2.01(a) of
      that certain Amendment Agreement dated as of the date hereof (the
“Amendment Agreement”) among Parent, Scimed, Advanced Bionics,
      the Trust and the Stockholders’ Representative to amend the Merger
      Agreement.

     

    WHEREAS,
      if the Amendment Agreement terminates, and therefore the Closing  (as
      defined in the Amendment Agreement) does not occur, this Amendment 1 will
      terminate and be of no further force or effect as of the date the Amendment
      Agreement terminates, any amendment to the Merger Agreement effected by this
      Amendment 1 will be null and void other than in respect of the period during
      which Amendment 1 was effective, if any, and the Merger Agreement will not
      be
      deemed amended by this Amendment 1 in any respect whatsoever.

     

    NOW,
      THEREFORE, in consideration of the premises and the mutual agreements
      and covenants hereinafter set forth, and intending to be legally bound, the
      parties hereto hereby agree as follows:

     

     

    ARTICLE
      I.

     

    AMENDMENT

     

    SECTION 1.01  Amendment
      to Article I.  Article
      I will be amended to add the following definitions, which will be placed in
      Article I in alphabetical order:

     

    “Amendment
      1” means Amendment No. 1 to this Agreement dated as of August 9, 2007
      among the parties hereto (other than the Purchaser).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Amendment
      1 Effective Time” means 9:00 a.m. California time on the first Business
      Day following the day that the Requisite Earn Out Recipient Approval (as defined
      in the Amendment Agreement) has been obtained as described in Section 2.01(a)
      of
      the Amendment Agreement.

     

    “Amendment
      2 Effective Time” means the Closing (as defined in the Amendment
      Agreement) and the receipt by the Trust of the First Earn Out
      Payment,  Earn Out Obligation and Reaffirmation (as each such term is
      defined in the Amendment Agreement).

     

    “Amendment
      Agreement” means that certain Amendment Agreement dated as of August 9,
      2007 among the parties hereto (other than the Purchaser).

     

    “Auditory
      Budget” means the Budget set forth on Exhibit 1
      hereto.

     

    “Auditory
      Purchase Agreement” means the Cochlear Implant Purchase and Sale
      Agreement dated as of August 9, 2007 among Parent, Scimed, the Company and
      Advanced Bionics Holding Corporation.

     

    “Cause”
      means any of the following: (i) conviction of a felony involving moral
      turpitude; (ii) commission of fraud or theft against, or embezzlement from,
      Parent or any of its Affiliates; (iii) material misconduct involving insider
      trading, sexual harassment, breach of confidentiality or material injury to
      the
      reputation of the Company; or (iv) the failure to perform and discharge an
      employee’s duties and responsibilities as an employee of Parent or its
      Affiliates after such employee has been provided with written notice of the
      intent to terminate such employee’s employment for the failure described in the
      notice and a period of two weeks to cure such failure to perform, if such
      failure to perform is curable.

     

    “Drug
      Pump Purchase Agreement” means the Drug Pump Purchase and Sale
      Agreement dated as of August 9, 2007 among Parent, Scimed, the Company and
      Infusion Systems Holding Corporation, a California
      corporation.

     

    “EOR
      Designee” initially means Jeffrey H. Greiner, and, if Jeffrey H.
      Greiner is no longer serving as the President & Co-CEO of the Surviving
      Corporation for one of the reasons described in Section 5.04(e)(iv) or
(v), then a successor individual designated by the Stockholders’
Representative in accordance with Section 5.04(e)(iv).

     

    “Parent
      Designee” initially means Michael Onuscheck, and, if Michael Onuscheck
      is no longer serving as the President of the Retained Businesses for one of
      the
      reasons described in Section 5.04(e)(iv) or (v), then a successor
      individual designated by Parent in accordance with Section
      5.04(e)(iv).

     

    “Purchase
      Agreements” means the Auditory Purchase Agreement and the Drug Pump
      Purchase Agreement.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    “Transferred
      Businesses” means the “Transferred Business” as defined in the Auditory
      Purchase Agreement plus the “Transferred Business” as defined in the Drug Pump
      Purchase Agreement.

     

    “Retained
      Businesses” means the businesses of the Company, other than the
      Transferred Businesses.

     

    “Retained
      Businesses Budget” means the budget attached as Exhibit
      2.1

     

    SECTION 1.02  Amendment
      to Section 2.11(e).  Section
      2.11(e) will be amended to add the following sentence:

     

    “Notwithstanding
      the foregoing and Section 2.11(f), if at any time after the Amendment 1
      Effective Time, Amendment 1 to this Agreement becomes of no further force and
      effect following the termination of the Amendment Agreement, Scimed will reduce
      the next Earn Out Payment to be paid to the Trust by the sum of (i) the amount
      by which the expenses of the Transferred Business during the period between
      the
      Amendment 1 Effective Time and the termination of the Amendment Agreement in
      respect of the line items relating to selling, marketing, distribution,
      development, clinical and regulatory matters have exceeded the Auditory Budget
      for such items (calculated on a pro rata basis for such period) , and (ii)
      the
      amount of the Separation Costs (as defined in the Separation Agreement (as
      defined in the Auditory Purchase Agreement)) paid to third parties between
      the
      Amendment 1 Effective Time and the termination of the Amendment Agreement in
      respect of services to the Transferred Business and allocated to Auditory
      Products LLC pursuant to the Separation Agreement.  Any disagreement
      with respect to the amount of such reduction shall be resolved in accordance
      with the procedures set forth in Sections 3.02 and 12.11 of the Auditory
      Purchase Agreement.

     

    SECTION 1.03  Amendment
      to Section 2.11(f).  Section
      2.11(f) will be amended to add the following sentence:

     

    “Notwithstanding
      the foregoing, the Earn Out Payment in respect of the Additional Earn Out
      Payment described in clause (i)(B) of the definition of Additional Earn Out
      Payment will not be paid if and when due.”

     

    SECTION 1.04  Amendment
      to Section 5.03.  Section
      5.03 will be amended as follows:

     

    (a)  Section
      5.03.  Section 5.03 will be amended to read in its entirety
      as follows:

     

    Section
      5.03.          Public
      Announcements.

     

    
      
        
          

        
 

        
          	
                  1

                	
                  BSC
                    proposes that this will be based on page 2 of the Financial Impact
                    of
                    Separation document dated August 3,
                    2007.

                

        

         

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

      

    

    (a)           So
      long as this Agreement is in effect, the Trust and the Stockholders’
Representative on the one hand, and Parent on the other hand, will (and each
      will cause their respective Affiliates to (other than the Excluded Mann
      Affiliates, as defined in the Purchase Agreements, with respect to the
      Stockholders' Representative or the Trust) consult with the other before issuing
      any press releases or otherwise making public announcements with respect to
      this
      Agreement or the Amendment Agreement or any of the other, and, except for any
      press release or public statement required by Law or any listing agreement
      with
      any U.S. or international securities exchange, including the New York Stock
      Exchange, the American Stock Exchange or NASDAQ will not issue any press release
      or make any public statement with respect to any of the foregoing matters
      without the consent of the other, which consent will not be unreasonably
      withheld, delayed or conditioned.

     

    (b)           If
      a release, announcement or statement described in Section 5.03(a) is
      required by Law or the rules or regulations of any applicable United States
      or
      international securities exchange or Governmental Authority to which the
      relevant party is subject, the party required to make the release, announcement
      or statement will notify Parent or the Stockholders’ Representative, as
      applicable, by telephone, email or fax within two hours of any officers in
      the
      legal department, corporate communications department or similar department
      of
      such party that routinely performs such functions concluding that it is
      reasonably likely that such party will issue a release, announcement or
      statement and will use its reasonable best efforts to allow such other party
      a
      reasonable time to comment on such release, announcement or statement in advance
      of such issuance and will accept the reasonable comments of such other Party
      to
      such release.  Notwithstanding anything contained in this
Section 5.03(b), language in a release, announcement or statement
      regarding this Amendment or the transactions contemplated by the Amendment
      Agreement that is substantially similar to language that has been previously
      reviewed in accordance with procedures set forth in this Section 5.03(b)
will not require  notification to the Stockholders’ Representative
      or Parent, as applicable, pursuant to this
Section 5.03(b).  The notices provided for in this
Section 5.03(b) will describe the time frame of the release, announcement
      or statement.  Any reference to a "Party" referenced in a release,
      announcement or statement in this Section 5.03 shall include such
      Party and, to the extent applicable, its Affiliates.

     

    SECTION 1.05  Amendment
      to Section 5.04.  Section
      5.04 will be amended as follows:

     

    (a)  Section
      5.04(a).  Section 5.04(a) will be amended to read in its
      entirety as follows:

     

    (a)           The
      parties hereto acknowledge and agree that from and after the Amendment 1
      Effective Time, the day-to-day management of the Retained Businesses will be
      conducted by the Parent Designee and the day-to-day management of the
      Transferred Businesses will be conducted by the EOR 

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    Designee;
      provided, that (i) the Retained Businesses and the Transferred Businesses
      will at all times be subject to the corporate practices, policies and procedures
      of Parent solely in respect of internal financial controls, internal financial
      reporting and compliance with the rules and regulations of the Securities and
      Exchange Commission and the New York Stock Exchange, (ii) Parent will use its
      commercially reasonable efforts to conduct the Retained Businesses in
      a  manner that causes the Retained Businesses to achieve the Retained
      Businesses Budget and the Trust will use its commercially reasonable efforts
      to
      conduct the Transferred Businesses in a  manner that causes the
      Transferred Businesses to achieve the Auditory Budget, provided that the
      Auditory Budget may be exceeded only by an aggregate amount up to the Maximum
      Excess Amount in respect of the expenses for the line items relating to selling,
      marketing, distribution, development, clinical and regulatory matters, and
      the
      Retained Business Budget may be exceeded without limitation, (iii) the
      Transferred Businesses will not be permitted to take any of the actions set
      forth on Exhibit 5.04(a)(1) without Executive Board approval and the
      Retained Businesses will not be permitted to take any of the actions set forth
      on Exhibit 5.04(a)(2) without Executive Board approval.  The
      parties hereto acknowledge and agree that the standard “commercially reasonable
      efforts” in clause (ii) of the previous sentence will be determined in respect
      of the Retained Businesses without any regard to the financial condition of
      Parent and in respect of the Transferred Businesses without any regard to the
      financial condition of Advanced Bionics Holding Corporation or any financing
      efforts it may undertake in connection with the transactions contemplated by
      the
      Purchase Agreements.  In addition to the Parent Designee, Parent may
      appoint an employee of Parent with an appropriate level of seniority and
      expertise to liaise with the EOR Designee for purposes of identifying whether
      any particular resources should be made available to the Transferred Businesses
      or the Retained Businesses, and assisting in the management of the separation
      activities.  The Parent Designee and the EOR Designee will meet no
      less frequently than weekly to discuss the activities of the Retained Businesses
      and the Transferred Businesses, respectively, and update each other on any
      material developments relating thereto.

     

    (b)  Section
      5.04(c).  Section 5.04(c) will be amended to read in its
      entirety as follows:

     

    (c)           Meetings
      of the Executive Board may be held at any time, by written notice given by
      any
      Member to Parent, the Stockholders’ Representative and each other Member at
      least five days prior to the meeting; provided that a Member will provide that
      written notice only if the Parent Designee or the EOR Designee wishes to discuss
      taking an action set forth in Exhibit 5.04(a)(1) or Exhibit
      5.04(a)(2).  Subject to appropriate confidentiality provisions,
      the Members designated by the Stockholders’ Representative may consult with and
      inform the Stockholders’ Representative regarding the matters discussed at
      meetings of, and actions taken by, the Executive Board.  No action
      will be taken by the Executive Board without a Quorum.  A
“Quorum” will consist of at least four Members, two of whom
      have been 

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    designated
      by Parent and two of whom have been designated by the Stockholders’
Representative.  All decisions of the Executive Board will require the
      affirmative vote of all Members in attendance at the meeting at which a Quorum
      is present.  The Executive Board may establish subcommittees or
      working groups that include non-Members; provided, that such
      subcommittees and working groups will not be empowered to make any binding
      decisions and will be limited to making recommendations to the Executive
      Board.

     

    (c)  Section
      5.04(d). will be amended to read in its entirety as follows:

     

    (d)           Subject
      to the provisions of Section 5.04(g), the Executive Board will consider
      in good faith whether to approve a request by a party to take any of the actions
      set forth in Exhibit 5.04(a)(1) and Exhibit
      5.04(a)(2).

     

    (d)  Section
      5.04(e).Section 5.04(e) will be amended as follows:

     

    (i)  The
      preamble to Section 5.04(e) will be amended as follows: “(e) The
      parties hereto agree that, without the approval of Pete Nicholas and Alfred
      E.
      Mann, neither Parent, including any of its Affiliates in respect of the Retained
      Businesses, nor the Trust nor the EOR Designee with respect to the Transferred
      Businesses, shall during the period between the Amendment 1 Effective Time
      and
      the earlier of the (i) Amendment 2 Effective Time and (ii) the termination
      of
      the Amendment Agreement:”

     

    (ii)  The
      following will be added to the end of Section 5.04(e)(iv): “;
provided, that the parties hereto acknowledge and agree
      that
      from and after the Amendment 1 Effective Time, (A) if Michael Onuscheck
      is terminated, voluntarily resigns as the Parent Designee, dies, or becomes
      disabled so that he cannot fulfill his obligations as the Parent Designee,
      Parent will appoint a successor Parent Designee to conduct the Retained
      Businesses that is (x) an employee of the Company as of the date of the
      Amendment Agreement or (y) not an employee of the Company at such time, but
      is
      reasonably acceptable to the Stockholders’ Representative, and (B) if Jeffrey H.
      Greiner is terminated, voluntarily resigns as the EOR Designee, dies, or becomes
      disabled so that he cannot fulfill his obligations as the EOR Designee, the
      Stockholders’ Representative will be permitted to appoint a successor EOR
      Designee to conduct the Transferred Businesses that is (x) an employee of the
      Company as of the date of the Amendment Agreement or (y) not an employee of
      the
      Company at such time, but is reasonably acceptable to Parent.”

     

    (iii)  The
      following will be added to the end of Section
5.04(e)(v):  “(provided that Parent will have the right to
      terminate the employment of Michael Onuscheck and the Stockholders’
Representative will have the right to terminate the employment of Jeffrey H.
      Greiner, in each case without the approval of Messrs. Nicholas and
      Mann.)”

     

    (iv)  Section
      5.04(e)(ix) will be deleted in its entirety.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    (e)  Section
      5.04(f).  Section 5.04(f)(ii) will be amended to read in
      its entirety as follows:

     

    (ii)           from
      and after the Amendment 1 Effective Time, Parent will (A) fund the Retained
      Businesses in accordance with the Retained Businesses Budget and (B) fund the
      Transferred Businesses in accordance with the Auditory Budget, and in excess
      of
      the expenses in that budget in respect of the line items relating to selling,
      marketing, distribution, development, clinical and regulatory matters up to
      a
      maximum excess amount in the aggregate equal to $5 million (the “Maximum
      Excess Amount”).

     

    (f)  Section
      5.04(g).  Section 5.04(g) will be amended to read in its
      entirety as follows:

     

    (g)           In
      the event the Executive Board cannot reach agreement on a request related to
      Exhibit 5.04(a)(1) or Exhibit 5.04(a)(2), the matter will be
      referred to Peter Nicholas and Alfred E. Mann.  Parent will cause
      Peter Nicholas (or his successor, to be designated by Parent) and the
      Stockholders’ Representative will cause Alfred E. Mann (or his successor, to be
      designated by the Stockholders’ Representative), promptly, but in any event
      within five Business Days following referral to them, to meet to resolve any
      such issue directly.  In the event Mr. Nicholas (or his successor) and
      Mr. Mann (or his successor) are unable despite use of diligent efforts to
      resolve the matter within five Business Days of it being submitted to them
      for
      resolution, the request will be deemed to have been denied.

     

    SECTION 1.06  Amendment
      to Section 8.04.  Section
      8.04 will be amended as follows:

     

    All
      notices, requests, claims, demands and other communications hereunder shall
      be
      in writing and shall be given (and shall be deemed to have been duly given
      upon
      receipt as conclusively determined by the date shown on a signed receipt for
      such notice) by delivery in person, by overnight courier, by registered or
      certified mail (postage prepaid, return receipt requested), fax or e mail to
      the
      respective parties at the following addresses (or at such other address for
      a
      party as will be specified in a notice given in accordance with this Section
      8.04):

     

    if
      to
      any of Parent, Scimed or the Company:

     

    One
      Boston Scientific Place

    Natick,
      Massachusetts  01760-1537

    Facsimile
      No:  (508) 650-8951

    Attention:  General
      Counsel

    Email:  paul.sandman@bsci.com

     

    with
      a copy to:

     

    Shearman
      & Sterling LLP

    599
      Lexington Avenue

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    New
      York, NY  10022-6069

    Facsimile
      No:  (212) 848-7179

    Attention:  Clare
      O’Brien

    Email:  cobrien@shearman.com

     

    if
      to
      the Trust or the Stockholders’ Representative:

     

    Trustees
      of the Bionics Trust or the Stockholders’ Representative, as
      applicable

    c/o
      Advanced Bionics Corporation

    Mann
      Biomedical Park

    25129
      Rye Canyon Loop

    Valencia,
      CA  91355

    Facsimile
      No:  (661) 362-1700

    Attention:  Trustee
      or the Stockholders’ Representative, as applicable

     

    with
      a copy to:

     

    Gibson,
      Dunn & Crutcher LLP

    2029
      Century Park East, Suite 4000

    Los
      Angeles, California  90071

    Facsimile
      No:  (310) 552-7053

    Attention:  Jonathan
      K. Layne

    Email:  JLayne@gibsondunn.com

     

     

    ARTICLE
      II.

     

    IMPLEMENTATION

     

    SECTION 2.01  Termination
      of Amendment Agreement.  The
      parties hereto acknowledge and agree that in event the Amendment Agreement
      is
      terminated, this Amendment 1 will also terminate and be of no force or effect,
      any amendment to the Merger Agreement effected by this Amendment 1 will be
      null
      and void and the Merger Agreement will not be deemed amended by this Amendment
      1
      in any respect whatsoever; and

     

    (a)  Notwithstanding
      Section 2.01(a) of this Amendment 1, any action or failure to act
      effected by any party hereto (including the Parent Designee and the EOR
      Designee), after the date hereof but prior to the termination of the Amendment
      Agreement, to the extent such action or failure to act is expressly permitted
      by
      the Merger Agreement as amended by this Amendment 1, will not be deemed a breach
      or failure to comply with the Merger Agreement.

     

    (b)  Scimed
      will reduce the next Earn Out Payment to be paid to the Trust  by (i)
      the amount by which the expenses of the Transferred Business during the period
      between the Amendment 1 Effective Time and the termination of the Amendment
      Agreement in respect of the line items relating to selling, marketing,
      distribution, development, clinical and regulatory matters have exceeded the
      Auditory Budget for such 

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    items
      (calculated on a pro rata basis for such period) , and (ii) the amount of the
      Separation Costs (as defined in the Separation Agreement (as defined in the
      Auditory Purchase Agreement)) paid to third parties between the Amendment 1
      Effective Time and the termination of this Amendment 1 in respect of services
      to
      the Transferred Business and allocated to the Auditory Products LLC pursuant
      to
      the Separation Agreement.  Any disagreement with respect to the amount
      of such reduction shall be resolved in accordance with the procedures set forth
      in Sections 3.02(c) and 12.11 of the Auditory Purchase Agreement.

     

    (c)  Notwithstanding
      Section 1.03 of this Amendment 1, if the Amendment Agreement is
      terminated after the Amendment 1 Effective Time, and after the date on which
      the
      Earn Out Payment would have been payable upon the Company's achieving Aggregate
      Net Sales for the immediately preceding twelve-month period of more than
      $300,000,000 in accordance with clause (i)(B) of the definition of Additional
      Earn Out Payment in the Merger Agreement, then, subject to Section
      2.01(b) of this Amendment 1, Scimed will promptly, and in no event later
      than two Business Days after such termination, deliver to the Trust such
      previously foregone Earn Out Payment in cash, in immediately available funds
      by
      wire transfer to an account designated by the Trust.

     

     

    ARTICLE
      III.

     

    GENERAL
      PROVISIONS

     

    SECTION 3.01  No
      Further Amendment .
      Except
      as expressly amended hereby, all other provisions of the Merger Agreement will
      be and remain in full force and effect.

     

    SECTION 3.02  Counterparts.  This
      Amendment 1 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 will be deemed to be an original
      but
      all of which taken together will constitute one and the same
      agreement.

     

    [SIGNATURE
      PAGE FOLLOWS]

    

 

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, each of the parties hereto has executed or caused this
      Amendment 1 to be duly executed as of the date first written above by such
      party
      or by any officer of such party thereunto duly authorized, as
      applicable.

     

     

    
      	 	
              BOSTON
                SCIENTIFIC CORPORATION 

            
	 	 
	 	
              By:

              
                

              
Name: 
	 	
              Title: 

            
	 	
               

            

    

    
      	 	 
	 	
              
                BOSTON
                  SCIENTIFIC SCIMED, INC.

              

            
	 	 
	 	
              By:

              
                

              
Name: 
	 	
              Title: 

            
	 	
               

            

    

    
       

      
        	 	
                
                  ADVANCED
                    BIONICS CORPORATION

                

              
	 	 
	 	
                By:

                
                  

                
Name: 
	 	
                Title: 

              
	 	
                 

              

      

      
        	 	 
	 	
                
                  
                    THE
                      STOCKHOLDERS’ REPRESENTATIVE

                  

                

              
	 	 
	 	
                By:

                
                  

                
Name: Jeffrey D. Goldberg
	 	 
	 	 
	 	 
                
                By:

                
                  

                
Name: Carla Woods
	 	
                 

              
	 	
                 

              

      

    

     

     

    

    

    [AMENDMENT
      NO. 1 TO AGREEMENT AND PLAN OF MERGER]

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

       

      
        	 	
                
                  
                    
                      BIONICS
                        TRUST

                    

                  

                

              
	 	 
	 	
                By:

                
                  

                
Name: Jeffrey D. Goldberg, Trustee
	 	 
	 	 
	 	 
                
                By:

                
                  

                
Name: Carla Woods, Trustee
	 	
                 

              
	 	
                 

              

      

       

       

    

    
 

    

    

    [AMENDMENT
      NO. 1 TO AGREEMENT AND PLAN OF MERGER]

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    EXHIBIT
      5.04(a)(1)

     

    ACTIONS
      THAT THE TRUST WILL ENSURE THE TRANSFERRED BUSINESSES DO NOT
      TAKE

     

    Unless
      otherwise approved by Parent's Chief Operating Officer and the EOR
      Designee:

     

    
      	
              1.

            	
              Assert
                Intellectual Property against any
                person.

            

    

     

    
      	
              2.

            	
              Respond
                to or settle any Third Party Claim of infringement or misappropriation
                of
                Intellectual Property, it being agreed that the parties will cooperate
                in
                good faith in determining how to respond to such Third Party
                Claim.

            

    

     

    
      	
              3.

            	
              Disclose
                to any person any confidential or proprietary information of Parent
                or any
                of its Affiliates, including with respect to the drug eluting electrode
                project.

            

    

     

    
      	
              4.

            	
              Enter
                into, or amend the terms of, any transaction or arrangement in respect
                of
                the Transferred Business with any Affiliate of the Purchaser, including
                any person controlled by Alfred E.
                Mann.

            

    

     

    
      	
              5.

            	
              Enter
                into any consent order or decree that either (i) affects the Retained
                Business or Parent or any of its Affiliates other than the Seller
                solely
                in respect of the Transferred Business or (ii) involves the payment
                of any
                money.

            

    

     

    
      	
              6.

            	
              Settle
                any product liability claim in a manner that is inconsistent in any
                material respect with past practice, including the settlement of
                any
                single claim in respect of HiRes 90K cochlear implants that contain
                the
                feedthrus made by Astro Seal for more than
                $45,000.

            

    

     

    

     

    

     

    
 

    
 

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    EXHIBIT
      5.04(a)(2)

     

    ACTIONS
      THAT PARENT WILL ENSURE THAT THE RETAINED BUSINESSES DO NOT
      TAKE

     

    
      	
              1.

            	
              Unless
                otherwise approved by the EOR Designee and the Parent Designee, Parent
                will not terminate the employment of any employee with the Surviving
                Corporation with the title of Director or higher (including a Regional
                Director in the Sales Department) who works for the Retained Businesses
                in
                the Research & Development Department or the Sales Department, or give
                such employee Good Reason to leave the Surviving Corporation, in
                each case
                other than for Cause.

            

    

     

    
      	
              2.

            	
              Unless
                otherwise approved by the EOR Designee and the Parent Designee, Parent
                will not terminate the employment of more than three employees of
                the
                Surviving Corporation with a title below Director who work for the
                Retained Businesses in the Research & Development Department, or give
                such employees Good Reason to leave the Surviving Corporation, in
                each
                case other than for Cause.

            

    

     

    
      	
              3.

            	
              Unless
                otherwise approved by the EOR Designee and the Parent Designee, Parent
                will not terminate the employment of more than 15 employees with
                the
                Surviving Corporation with a title below Director who work for the
                Retained Businesses in the Sales Department, or give such employees
                Good
                Reason to leave the Surviving Corporation, in each case other than
                for
                Cause.

            

    

     

    
      	
              4.

            	
              Unless
                otherwise approved by the EOR Designee and the Parent Designee, Parent
                will not terminate any research and development program for which
                funding
                is provided in the Retained Business
                Budget.

            

    

     

    

     

     

    
      
        
        

      

      
        13

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