Document:

WWW.EXFILE.COM, INC. -- 14526 -- BOSTON SCIENTIFIC CORP. -- EXHIBIT 10.4 TO FORM 10-Q

    EXHIBIT
      10.4

    
 

    FINAL
      FORM 

    

    

    BSC
      INTERNATIONAL HOLDING LIMITED

    

    Promissory
      Note

    

    

    
      	 $900,000,000         	
               New
                York, New York 

            
	 	
               April
                21,
                2006

            

    

     

    BSC
      International Holding Limited, a company organized and existing under the laws
      of Ireland (the “Borrower”),
      for
      value received, hereby promises to pay to Abbott Laboratories, an Illinois
      corporation (the “Lender”),
      the
      principal amount of $900,000,000.

    

    1.  Payments
      on the Note.
      The
      Borrower agrees to pay in cash semi-annually in arrears on the last Business
      Day
      of each March and September, beginning September 30, 2006, and on the Maturity
      Date (as defined below) (each, an “Interest
      Payment Date”),
      interest from the date hereof with respect to the first interest payment, and
      from the first day following the immediately preceding Interest Payment Date
      with respect to any subsequent interest payment, in each case to and including
      the date such interest shall become due and payable, on the unpaid principal
      amount of the loan evidenced by this Note (the “Loan”),
      at a
      rate per annum equal to 4.0%. If all or a portion of the principal amount of,
      or
      interest on, the Loan shall not be paid when due (whether at the stated
      maturity, by acceleration or otherwise), the Loan shall bear interest at a
      rate
      per annum equal to the rate that would otherwise be applicable thereto pursuant
      to the foregoing provisions of this Section plus
      2%.
      Interest and fees payable pursuant hereto shall be calculated on the basis
      of a
      365- (or 366-, as the case may be) day year for the actual days elapsed.

    

    All
      then
      unpaid principal and accrued interest shall be due and payable in cash on
April
      21,
      2011 (the “Maturity
      Date”).
      

    

    Subject
      to subsection 3(b), all payments (including prepayments) to be made to the
      Lender hereunder, whether on account of principal, interest, fees or otherwise,
      shall be made in United States Dollars and in immediately available funds
      without setoff or counterclaim by wire transfer to an account notified by the
      Lender to the Borrower and shall be made prior to 5:00 p.m., New York City
      time
      on the due date thereof. If any payment on this Note becomes due and payable
      on
      a day other than a day on which commercial banks in New York, New York are
      open
      for the transaction of normal business (a “Business
      Day”),
      payment shall be due on the immediately succeeding Business Day and, with
      respect to any payment of principal, interest thereon shall be payable at the
      then applicable rate.

    

    2.  Optional
      Prepayments.
      The
      Borrower may, at its option, upon notice delivered to the Lender one day prior
      thereto, prepay at any time all, or from time to time any part of, this Note,
      plus accrued but unpaid cash interest through the prepayment date, with respect
      to the 

     

    
      
        
        

      

      
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    principal
      amount so prepaid, without any premium or penalty. Any such prepayment shall
      be
      in an aggregate principal amount of $1,000,000 or a whole multiple
      thereof.

    

    3.  Mandatory
      Reductions and Prepayments.
      (a) If
      on any date the Lender or any of its Affiliates shall receive Net Proceeds
      from
      the sale of any Shares issued pursuant to Section 2.1 of the Subscription and
      Stockholder Agreement, then (i) if the Net Proceeds from any such sales are
      greater than 110% but equal to or less than 120% of the Stock Purchase Price,
      the portion of the Net Proceeds in excess of 110% of the Stock Purchase Price
      (minus any Taxes imposed on Abbott on or with respect to gain on the Net
      Proceeds in excess of 110% of the Stock Purchase Price) shall be immediately
      applied upon receipt thereof to reduce any amounts then outstanding under this
      Note and (ii) if the Net Proceeds from any such sales are greater than 120%
      of
      the Stock Purchase Price, (x) the portion of the Net Proceeds in excess of
      110%
      but less than or equal to 120% of the Stock Purchase Price (minus any Taxes
      imposed on Abbott on or with respect to gain on the Net Proceeds in excess
      of
      110% of the Stock Purchase Price but less than or equal to 120% of the Stock
      Purchase Price) shall be immediately applied upon receipt thereof to reduce
      any
      amounts then outstanding under this Note and (y) 50% of the Net Proceeds in
      excess of 120% of the Stock Purchase Price (minus any Taxes imposed on Abbott
      on
      or with respect to gain on such 50% of the Net Proceeds in excess of 120% of
      the
      Stock Purchase Price) shall be immediately applied upon receipt thereof to
      reduce any amounts then outstanding under this Note. The amount by which the
      outstanding principal balance of the Note shall be reduced under this subsection
      3(a) on any sale of Shares shall be determined in accordance with Section 3.5
      of
      the Subscription and Stockholder Agreement.

    

    (b)    Upon
      the
      occurrence and during the continuance of a Trigger Event, any cash proceeds
      the
      Borrower or any of its Affiliates receives or is entitled to receive with
      respect to Milestone Payments pursuant to Section 2.05 of the Purchase Agreement
      shall be immediately applied upon receipt thereof (or in the case of any such
      Milestone Payments which shall be due but not have been paid at such time,
      may
      be applied by the Lender directly) to prepay any amounts then outstanding under
      this Note.

    

    (c)    Any
      amounts
      required to be applied pursuant to this Section 3 shall be applied, first,
      to any
      fees or expenses then due and owing to the Lender under subsection 13(e),
second,
      to the
      payment of any interest due with respect to the amount of the principal prepaid,
      and third,
      to the
      principal amount of the Loan. 

    

    4.  Representations
      and Warranties.
      (a) The
      Borrower hereby represents and warrants that: 

    

    (i)
      The
      Borrower is duly organized, validly existing and in good standing under the
      laws
      of Ireland. 

    

    (ii)
      The
      Borrower has the corporate power and authority, and the legal right, to make,
      deliver and perform this Note and has taken all necessary corporate action
      to
      authorize the execution, delivery and performance of this Note.

     

    
      
        
        

      

      
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    (iii)
      No
      consent or authorization of, filing with or other act by or in respect of,
      any
      Governmental Authority or any other Person is required in connection with the
      borrowings hereunder or with the execution, delivery, performance, validity
      or
      enforceability of this Note.

    

    (iv)
      This
      Note has been duly executed and delivered on behalf of the Borrower.

    

    (v)
      This
      Note constitutes a legal, valid and binding obligation of the Borrower
      enforceable against the Borrower in accordance with its terms, except as such
      enforceability may be limited by applicable bankruptcy, insolvency,
      reorganization, moratorium or similar laws affecting the enforcement of
      creditors’ rights generally and by general equitable principles (whether
      enforcement is sought by proceedings in equity or at law). 

    

    (vi)
      The
      execution, delivery and performance of this Note, the borrowings hereunder
      and
      the use of the proceeds hereof will not violate any Requirement of Law or
      Contractual Obligation of the Borrower and will not result in, or require,
      the
      creation or imposition of any Lien on any of its properties or revenues pursuant
      to any Requirement of Law or Contractual Obligation.

    

    (vii)
      No
      litigation, investigation or proceeding of or before any arbitrator or
      Governmental Authority is pending, or to the knowledge of the Borrower,
      threatened by or against the Borrower or against any of its properties or
      revenues that would prevent the Borrower from paying any interest or principal
      on this Note or from paying or reimbursing the Lender for any fees and expenses
      pursuant to subsection 13(e).

    

    (viii)
      No
      Default or Event of Default has occurred and is continuing.

    

    (ix)
      No
      part of the proceeds of the Loan will be used for any purpose that violates
      the
      provisions of the Regulations of the Board. 

     

    (b)    Boston
      Scientific hereand warrants that:by represents 

    

    (i)
      Boston Scientific is duly organized, validly existing and in good standing
      under
      the laws of the State of Delaware. 

    

    (ii)
      Boston Scientific has the corporate power and authority, and the legal right,
      to
      make, deliver and perform this Note and the guarantee and has taken all
      necessary corporate action to authorize the execution, delivery and performance
      of this Note and the guarantee.

    

    (iii)
      No
      consent or authorization of, filing with or other act by or in respect of,
      any
      Governmental Authority or any other Person is required in connection with the
      guarantee hereunder or with the execution, delivery, performance, validity
      or
      enforceability of such guarantee.

     

    
      
        
        

      

      
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    (iv)
      This
      Note has been duly executed and delivered on behalf of Boston Scientific.

    

    (v)
      This
      Note constitutes a legal, valid and binding obligation of Boston Scientific
      enforceable against Boston Scientific in accordance with its terms, except
      as
      such enforceability may be limited by applicable bankruptcy, insolvency,
      reorganization, moratorium or similar laws affecting the enforcement of
      creditors’ rights generally and by general equitable principles (whether
      enforcement is sought by proceedings in equity or at law). 

    

    (vi)
      The
      execution, delivery and performance of this Note and the guarantee hereunder
      will not violate any Requirement of Law or Contractual Obligation of Boston
      Scientific.

    

    5.  Conditions
      Precedent.
      The
      obligation of the Lender to make the Loan is subject to the satisfaction, prior
      to or concurrently with the making of such Loan, of the following conditions:
      

    

    (a)    The
      Lender shall have received this Note duly executed and delivered by the
      Borrower;

     

    (b)    The
      Lender shall have received a certificate of the Borrower, dated the date hereof,
      in form and substance reasonably satisfactory to the Lender, with attachments,
      including copies of the organizational documents of the Borrower, and
      resolutions authorizing the transactions contemplated by this Note;

    

    (c)    The
      Lender shall have received (i) a certificate of Boston Scientific, dated the
      date hereof, in form and substance reasonably satisfactory to the Lender, with
      attachments, including the certificate of incorporation of Boston Scientific
      certified by the Secretary of State of Delaware, the by-laws of Boston
      Scientific and resolutions authorizing the transactions contemplated by this
      Note and (ii) a long-form good standing certificate from the State of
      Delaware;

    

    (d)    The
      Lender shall have received a notice from the Borrower designating in writing
      the
      bank account to which the amount of the Loan is to be wired not fewer than
      three
      Business Days prior to the date hereof;

    

    (e)    All
      of
      the conditions to Guidant’s obligations to consummate the transactions
      contemplated by the Purchase Agreement, as set forth in the Purchase Agreement,
      shall have been satisfied or waived, and Guidant shall have notified the Lender,
      in writing that it is ready, willing and able to consummate the transactions
      contemplated by the Purchase Agreement; 

    

    (f)    All
      of
      the respective conditions to Boston Scientifics’, Sub’s and Guidant’s
      obligations to consummate the Merger, as set forth in the Merger Agreement,
      shall have been satisfied or waived, and each of Boston Scientific and Sub
      shall
      have notified Guidant, and Guidant shall have notified Boston Scientific and
      Sub, in writing (with copies of such notices 

     

    
      
        
        

      

      
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    having
      been delivered to the Lender) that it is ready, willing and able to consummate
      the Merger, and that it intends to consummate the Merger immediately following
      the consummation of the transactions contemplated by the Transaction Agreement
      or the Purchase Agreement; 

     

    (g)    The
      Transaction Agreement and the Purchase Agreement shall be in full force and
      effect and no default shall have occurred and be continuing thereunder;

    

    (h)    Each
      of
      the representations and warranties made by the Borrower in Section 4 of this
      Note shall be true and correct on and as of the date hereof; and

    

    (i)    No
      Default or Event of Default shall have occurred and be continuing on the date
      hereof or after giving effect to the Loan to be made on the date hereof.

    

    In
      the
      event that Boston Scientific, Sub and Guidant do not complete the Merger on
      the
      same day as, or on the first Business Day following, the Share Closing Date,
      then on the second Business Day following the Share Closing Date, the Borrower
      shall pay in cash the full amount of the Loan outstanding under this Note
      together with interest compounded daily on such amount at the rate publicly
      announced by JPMorgan Chase Bank, N.A. as its prime rate in effect at its
      principal office in New York City.

    

    6.  Covenants.
      The
      Borrower covenants that for so long as this Note remains in effect and any
      amounts are owing hereunder it shall: 

    

    (a)    Preserve,
      renew and keep in full force and effect its corporate existence.

    

    (b)    Give
      notice to the Lender within ten days of the occurrence of any Default or Event
      of Default.

    

    7.  Default.
      The
      entire unpaid principal amount of this Note, together with all accrued and
      unpaid interest and all other amounts owing under this Note shall become
      immediately due and payable upon written demand of the Lender (or in the case
      of
      an event specified in subsection 7(d) below, automatically, without notice),
      without any other notice or demand of any kind or any presentment or protest,
      if
      any one of the following events shall occur and be continuing at the time of
      such demand: 

    

    (a)    The
      Borrower (i) defaults in any payment of principal on this Note when due in
      accordance with the terms of this Note, which default shall have continued
      for a
      period of five days, or (ii) defaults in any payment of interest on this Note
      when due in accordance with the terms of this Note, which default shall have
      continued for a period of five days following Borrower’s receipt of written
      notice from the Lender; or

    

    (b)    The
      Borrower defaults in the observance or performance of any covenant or agreement
      contained in this Note (other than those referred to in subsection 7(a) above),
      which default cannot be or has not been cured within 30 days after the
      Borrower’s receipt of written notice of such default from Lender;
      or

     

    
      
        
        

      

      
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    (c)    Any
      representation or warranty made by the Borrower in this Note shall prove to
      have
      been inaccurate on or as of the date made, such as would prevent the Borrower
      from paying any interest or principal on this Note or from paying or reimbursing
      the Lender for any fees and expenses pursuant to subsection 13(e) or would
      materially impair the Lender’s ability to enforce this Note; or

    

    (d)    (i)
      The
      Borrower or Boston Scientific shall commence any case, proceeding or other
      action (A) under any existing or future law of any jurisdiction, domestic or
      foreign, relating to bankruptcy, insolvency, reorganization or relief of
      debtors, seeking to have an order for relief entered with respect to it, or
      seeking to adjudicate it a bankrupt or insolvent, or seeking reorganization,
      arrangement, adjustment, winding-up, liquidation, dissolution, composition
      or
      other relief with respect to it or its debts, or (B) seeking appointment of
      a
      receiver, trustee, custodian, conservator or other similar official for it
      or
      for all or any substantial part of its assets, or the Borrower or Boston
      Scientific shall make a general assignment for the benefit of its creditors;
      or
      (ii) there shall be commenced against the Borrower or Boston Scientific any
      case, proceeding or other action of a nature referred to in clause (i) above
      that (A) results in the entry of an order for relief or any such adjudication
      or
      appointment or (B) remains undismissed or undischarged for a period of 60 days;
      or (iii) there shall be commenced against the Borrower or Boston Scientific
      any
      case, proceeding or other action seeking issuance of a warrant of attachment,
      execution, distraint or similar process against all or any substantial part
      of
      its assets that results in the entry of an order for any such relief that shall
      not have been vacated, discharged, or stayed or bonded pending appeal within
      60
      days from the entry thereof; or (iv) the Borrower or Boston Scientific shall
      take any action in furtherance of, or indicating its consent to, approval of,
      or
      acquiescence in, any of the acts set forth in clause (i), (ii), or (iii) above;
      or (v) the Borrower or Boston Scientific shall generally not, or shall be unable
      to, or shall admit in writing its inability to, pay its debts as they become
      due.

    

    The
      rights of the Lender specified herein upon the occurrence of an Event of Default
      shall be in addition to the Lender’s rights specified in the last sentence of
      Section 5.10(a) of the Transaction Agreement.

    

    8.  Certain
      Definitions.
      As used
      in this Note, the following terms shall have the following
      meanings:

    

    “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; provided,
      however,
      that
      TAP Pharmaceutical Products, Inc. (“TAP”)
      and
      its subsidiaries shall be deemed not to be Affiliates of the Lender only for
      so
      long as the Lender (either directly or indirectly) owns fifty percent or less
      of
      the voting stock of TAP (or its subsidiaries) or does not otherwise have control
      of TAP (or its subsidiaries). For purposes of this Note, “Affiliate” shall
      include (i) with respect to the Borrower, Guidant and its Affiliates following
      the Merger, (ii) with respect to the Lender, any Person acquired pursuant to
      the
      Transaction Agreement, and (iii) any Person resulting from any internal
      reorganization, provided such resulting Person is an Affiliate.

     

    
      
        
        

      

      
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    “Board”
means
      the Board of Governors of the Federal Reserve System of the United States (or
      any successor). 

    

    “Borrower”
shall
      have the meaning set forth in the first paragraph of this Note.

    

    “Boston
      Scientific”
means
      Boston Scientific Corporation, a Delaware corporation, and the parent of the
      Borrower.

    

    “Business
      Day”
shall
      have the meaning set forth in Section 1.

    

    “Capital
      Stock”
      means
      any and all shares, interests, participations or other equivalents (however
      designated) of capital stock of a corporation, any and all equivalent ownership
      interests in a Person (other than a corporation) and any and all warrants,
      rights or options to purchase any of the foregoing.

    

    “Contractual
      Obligations”
means
      as to any Person, any provision of any security issued by such Person or of
      any
      agreement, instrument or other undertaking to which such Person is a party
      or by
      which it or any of its property is bound.

    

    “Credit
      Agreement”
means
      the principal credit agreement of Boston Scientific, as amended, restated,
      modified, renewed, refunded, replaced or refinanced, in whole or in part from
      time to time.

    

    “Default”
means
      any of the events specified in Section 7, whether or not any requirement
      for the giving of notice, the lapse of time, or both, has been
      satisfied.

    

    “Event
      of Default”
means
      any of the events specified in Section 7, provided
      that any
      requirement for the giving of notice, the lapse of time, or both, has been
      satisfied.

    

    “Excluded
      Taxes”
means
      net income taxes imposed on the Lender as a result of a present or former
      connection between the Lender and the jurisdiction of the Governmental Authority
      imposing such tax or any political subdivision or taxing authority thereof
      or
      therein (other than any such connection arising solely from the Lender having
      executed, delivered or performed its obligations or received a payment under,
      or
      enforced, this Note).

    

    “Governmental
      Authority”
means
      any nation or government, any state or other political subdivision thereof,
      any
      agency, authority, instrumentality, regulatory body, court, central bank or
      other entity exercising executive, legislative, judicial, taxing, regulatory
      or
      administrative functions of or pertaining to government, any securities exchange
      and any self-regulatory organization.

    

    “Guidant”
means
      Guidant Corporation, an Indiana corporation.

    

    “Indebtedness”
means
      of any Person at any date, without duplication, (a) all indebtedness of such
      Person for borrowed money, (b) all obligations of such Person for the deferred
      purchase price of property or services (other than current trade payables
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    such
      Person’s business), (c) all obligations of such Person evidenced by notes,
      bonds, debentures or other similar instruments, (d) all indebtedness created
      or
      arising under any conditional sale or other title retention agreement with
      respect to property acquired by such Person (even though the rights and remedies
      of the seller or lender under such agreement in the event of default are limited
      to repossession or sale of such property), (e) all capital lease obligations
      of
      such Person, (f) all obligations of such Person, contingent or otherwise, as
      an
      account party or applicant under or in respect of acceptances, letters of
      credit, surety bonds or similar arrangements, (g) all guarantee obligations
      of
      such Person in respect of obligations of the kind referred to in clauses (a)
      through (f) above and (h) all obligations of the kind referred to in clauses
      (a)
      through (g) above secured by (or for which the holder of such obligation has
      an
      existing right, contingent or otherwise, to be secured by) any Lien on property
      (including accounts and contract rights) owned by such Person, whether or not
      such Person has assumed or become liable for the payment of such obligation.
      The
      Indebtedness of any Person shall include the Indebtedness of any other entity
      (including any partnership in which such Person is a general partner) to the
      extent such Person is liable therefor as a result of such Person’s ownership
      interest in or other relationship with such entity, except to the extent the
      terms of such Indebtedness expressly provide that such Person is not liable
      therefor.

    

    “Interest
      Payment Date”
shall
      have the meaning set forth in Section 1.

    

    “Lender”
shall
      have the meaning set forth in the first paragraph of this Note.

    

    “Lien”
means
      any mortgage, pledge, hypothecation, assignment, deposit arrangement,
      encumbrance, lien (statutory or other), charge or other security interest or
      any
      preference, priority or other security agreement or preferential arrangement
      of
      any kind or nature whatsoever (including any conditional sale or other title
      retention agreement and any capital lease having substantially the same economic
      effect as any of the foregoing).

    

    “Loan”
shall
      have the meaning set forth in Section 1.

    

    “Maturity
      Date”
shall
      have the meaning set forth in Section 1.

    

    “Merger”
means
      the merger of Sub with and into Guidant pursuant to the Merger
      Agreement.

    

    “Merger
      Agreement”
means
      the Agreement and Plan of Merger, dated as of January 25, 2006, among Boston
      Scientific, Sub and Guidant, as amended, supplemented or otherwise modified
      from
      time to time.

    

    “Net
      Proceeds”
means,
      in respect of any sale of Shares, the proceeds per share received from such
      sale
      (net of any underwriting discounts and commissions incurred in connection
      therewith).

    

    “Obligations”
means
      the unpaid principal of and interest on (taking into account reductions and
      prepayments pursuant to Section 3 and including interest accruing after the
      maturity of the Loan and interest accruing after the filing of any petition
      in
      bankruptcy, or the

     

    
      
        
        

      

      
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     commencement
      of any insolvency, reorganization or like proceeding, relating to the Borrower,
      whether or not a claim for post-filing or post-petition interest is allowed
      in
      such proceeding) the Loan and all other obligations and liabilities of the
      Borrower to the Lender, whether direct or indirect, absolute or contingent,
      due
      or to become due, or now existing or hereafter incurred, which may arise under,
      out of, or in connection with this Note or any other document made, delivered
      or
      given in connection herewith, whether on account of principal, interest,
      reimbursement obligations, fees, costs, expenses (including all fees, charges
      and disbursements of counsel to the Lender that are required to be paid by
      the
      Borrower pursuant hereto) or otherwise.

    

    “Permitted
      Junior Securities”
means
      (i) equity interests in the Borrower or any direct or indirect parent of the
      Borrower or (ii) unsecured debt securities that are subordinated to all Senior
      Indebtedness (and any debt securities issued in exchange for Senior
      Indebtedness) to substantially the same extent as, or to a greater extent than,
      the Loan is subordinated to Senior Indebtedness under this Note.

    

    “Person”
means
      any individual, corporation, partnership, limited liability company, joint
      venture, association, joint-stock company, trust, unincorporated organization,
      government or any agency or political subdivision thereof or any other
      entity.

    

    “Principal
      Indebtedness”
means
      the amounts owing in respect of the Credit Agreement and any Public
      Indebtedness.

    

    “Public
      Indebtedness”
means
      Indebtedness of Boston Scientific or any of Boston Scientific’s Subsidiaries
issued
      in
      a public offering, Rule 144A transaction or Regulation S transaction.

    

    “Purchase
      Agreement”
means
      the purchase agreement to be entered into by Guidant and the Lender in
      connection with the purchase and sale of the business contemplated by the
      Transaction Agreement.

    

    “Representative”
means
      any trustee, agent or representative (if any) for an issue of Senior
      Indebtedness of the Borrower.

    

    “Requirements
      of Law”
means
      as to any Person, the certificate of incorporation and by-laws or other
      organizational or governing documents of such Person, and any law, treaty,
      rule
      or regulation or determination of an arbitrator or a court or other Governmental
      Authority, in each case applicable to or binding upon such Person or any of
      its
      property or to which such Person or any of its property is subject.

    

    “Senior
      Indebtedness”
means
      (i) with respect to the Borrower, all Indebtedness under the Credit Agreement
      dated as of April 21, 2006 among Boston Scientific, the Borrower, the financial
      institutions and other lenders party thereto and Bank of America, N.A., as
      administrative agent, as amended, amended and restated, modified, supplemented
      or refinanced from time to time to the extent there is no increase in the
      principal amount thereof, and (ii) with respect to Boston Scientific, all
      Indebtedness of Boston Scientific incurred from and including 

     

    
      
        
        

      

      
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    the
      date
      hereof to and including the Maturity Date (including interest accruing on or
      after the filing of any petition in bankruptcy or similar proceeding or for
      reorganization of any such Person (at the rate provided for in the documentation
      with respect thereto, regardless of whether or not a claim for post-filing
      interest is allowed in such proceedings)), and any and all other fees, expense
      reimbursement obligations, indemnification amounts, penalties and other amounts
      payable in respect of such Indebtedness (whether existing on the date hereof
      or
      thereafter created or incurred on or before the Maturity Date); provided,
      however,
      that,
      with respect to both the Borrower and Boston Scientific, Senior Indebtedness
      will not include (i) any obligation of the Borrower or Boston Scientific to
      any
      of their respective Subsidiaries, (ii) any liability for Federal, state,
      foreign, local or other taxes owed or owing by the Borrower or Boston
      Scientific, (iii) any accounts payable or other liability to trade creditors
      arising in the ordinary course of business (including guarantees thereof or
      instruments evidencing such liabilities), (iv) any Indebtedness, guarantee
      or
      obligation of the Borrower or Boston Scientific that is expressly subordinate
      or
      junior in right of payment to any other Indebtedness, guarantee or obligation
      of
      the Borrower or Boston Scientific, as applicable, or (v) any Capital Stock.
      

    

    “Shares”
means
      the shares of common stock, par value $0.01 per share, of Boston Scientific
      issued to the Lender or any of its Affiliates pursuant to Section 2.1 of the
      Subscription and Stockholder Agreement, it being understood and agreed that
      shares issued to the Lender or any of its Affiliates pursuant to Section 2.3
      of
      the Subscription and Stockholder Agreement shall not be deemed Shares for
      purposes of this Note.

    

    “Share
      Closing Date”
shall
      have the meaning set forth in the Subscription and Stockholder
      Agreement.

    

    “Stock
      Purchase Price”
shall
      have the meaning as set forth in the Subscription and Stockholder
      Agreement.

    

    “Sub”
means
      Galaxy Merger Sub, Inc., an Indiana corporation. 

    

    “Subscription
      and Stockholder Agreement”
means
      the subscription and stockholder agreement to be entered into by Boston
      Scientific and the Lender.

    

    “Subsidiary”
means
      as to any Person, a corporation, partnership, limited liability company or
      other
      entity of which shares of stock or other ownership interests having ordinary
      voting power (other than stock or such other ownership interests having such
      power only by reason of the happening of a contingency) to elect a majority
      of
      the board of directors or other managers of such corporation, partnership or
      other entity are at the time owned, or the management of which is otherwise
      controlled, directly or indirectly through one or more intermediaries, or both,
      by such Person. 

    

    “Taxes”
means
      any and all taxes, levies, duties, tariffs and similar charges in the nature
      of
      a tax (together with any and all interest, penalties, additions to tax and
      additional amounts imposed with respect thereto) imposed by any Governmental
      Authority or taxing authority, including taxes on or with respect to income,
      franchises, windfall or other profits, gross receipts, property, sales, use,
      share capital, capital stock, payroll, employment, social security, workers’

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    compensation,
      unemployment compensation, or net worth; taxes in the nature of excise,
      withholding, ad valorem, stamp, transfer, value added, or gain taxes; license,
      registration and documentation fees; and customs’ duties and
      tariffs.

    

    “Transaction
      Agreement”
means
      the Transaction Agreement between Boston Scientific and the Lender, dated as
      of
      January 8, 2006, as amended, supplemented or otherwise modified from time to
      time.

    

    “Trigger
      Event”
means
      a
      failure by Borrower to pay any principal or interest when due (by operation
      of
      law or otherwise) on the Loan or a failure by Boston Scientific or any of its
      Subsidiaries to pay any principal or interest when due on any Principal
      Indebtedness.

    

    9.  Subordination.

    

    (a)    The
      Lender agrees that the payment of all obligations of the Borrower and Boston
      Scientific owing in respect of this Note is subordinated in right of payment,
      to
      the extent and in the manner provided in this Section 9, to the prior payment
      in
      full in cash of the Senior Indebtedness of the Borrower and Boston Scientific
      and that the subordination is for the benefit of and enforceable by the holders
      of such Senior Indebtedness. The Borrower’s and Boston Scientific’s obligations
      under this Note shall in all respects rank pari passu
      in right
      of payment with all existing and future Indebtedness of the Borrower and Boston
      Scientific that is not Senior Indebtedness; and only Indebtedness of the
      Borrower and Boston Scientific that is Senior Indebtedness shall rank senior
      to
      the obligations of the Borrower and Boston Scientific under this Note in
      accordance with the provisions set forth herein.

     

    (b)    Upon
      any
      payment or distribution of the assets of the Borrower or Boston Scientific
      to
      creditors upon a total or partial liquidation or a total or partial dissolution
      of the Borrower or Boston Scientific or in a reorganization of or similar
      proceeding relating to the Borrower or Boston Scientific or its
      property:

     

    (i)
      the
      holders of Senior Indebtedness of the Borrower or Boston Scientific, as
      applicable, shall be entitled to receive payment in full in cash of such Senior
      Indebtedness before the Lender shall be entitled to receive any payment; and
      

    

    (ii)
      until the Senior Indebtedness of the Borrower or Boston Scientific, as
      applicable, is paid in full in cash, any payment or distribution to which the
      Lender would be entitled but for the subordination provisions of this Note
      shall
      be made to holders of such Senior Indebtedness as their interests may appear,
      except that the Lender may receive Permitted Junior Securities.

    

    (c)    If
      a
      distribution is made to the Lender that, due to the subordination provisions,
      should not have been made to it, the Lender is required to hold it in trust
      for
      the holders of Senior Indebtedness of the Borrower and Boston Scientific and
      pay
      it over to them as their interests may appear.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    (d)    After
      all
      Senior Indebtedness of the Borrower and Boston Scientific is paid in full and
      until this Note is paid in full, the Lender shall be subrogated to the rights
      of
      holders of such Senior Indebtedness to receive distributions applicable to
      such
      Senior Indebtedness. 

     

    (e)    This
      Section 9 defines the relative rights of the Lender and holders of Senior
      Indebtedness of the Borrower and Boston Scientific. Nothing in this Note
      shall:

     

    (i) impair,
      as between the Borrower and Boston Scientific on the one hand, and the Lender
      on
      the other hand, the obligation of the Borrower and Boston Scientific, which
      is
      absolute and unconditional, to pay principal of and interest on the Loan in
      accordance with the terms hereof; or

    

    (ii) affect
      the relative rights of the Lender and creditors of the Borrower and Boston
      Scientific other than their rights in relation to holders of Senior
      Indebtedness.

    

    (f)    No
      right
      of any holder of Senior Indebtedness of the Borrower or Boston Scientific to
      enforce the subordination of the Loan shall be impaired by any act or failure
      to
      act by the Borrower or Boston Scientific, as applicable, or by their failure
      to
      comply with this Note.

     

    (g)    The
      failure to make a payment pursuant to this Note by reason of any provision
      in
      this Section 9 shall not be construed as preventing the occurrence of a Default.
      Nothing in this Section 9 shall have any effect on the right of the Lender
      to
      accelerate the maturity of this Note.

     

    (h)    Upon
      any
      payment or distribution pursuant to this Section 9, the Lender shall be entitled
      to rely (a) upon any order or decree of a court of competent jurisdiction
      in which any proceedings of the nature referred to in subsection 9(b) hereof
      are
      pending, (b) upon a certificate of the liquidating trustee or agent or
      other Person making such payment or distribution to the Lender or (c) upon
      the Representatives of Senior Indebtedness of the Borrower and Boston Scientific
      for the purpose of ascertaining the Persons entitled to participate in such
      payment or distribution, the holders of such Senior Indebtedness and other
      Indebtedness of the Borrower and Boston Scientific, the amount thereof or
      payable thereon, the amount or amounts paid or distributed thereon and all
      other
      facts pertinent thereto or to this Section 9. In the event that the Lender
      determines, in good faith, that evidence is required with respect to the right
      of any Person as a holder of Senior Indebtedness of the Borrower or Boston
      Scientific to participate in any payment or distribution pursuant to this
      Section 9, the Lender shall be entitled to request such Person to furnish
      evidence to the reasonable satisfaction of the Lender as to the amount of such
      Senior Indebtedness held by such Person, the extent to which such Person is
      entitled to participate in such payment or distribution and other facts
      pertinent to the rights of such Person under this Section 9, and, if such
      evidence is not furnished, the Lender shall be entitled to defer any payment
      to
      such Person pending judicial determination as to the right of such Person to
      receive such payment. 

     

    (i)    Except
      as
      set forth in subsection 9(c), the Lender shall not be deemed to owe any
      fiduciary duty to the holders of Senior Indebtedness of the
      Borrower or Boston Scientific.

     

    (j)    Nothing
      contained in this Note shall prevent the Borrower or Boston Scientific from
      incurring any Indebtedness, it being understood and agreed that any Indebtedness
      to be 

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    incurred
      by the Borrower or Boston Scientific, as applicable, shall be ranked in
      accordance with the second sentence of subsection 9(a).

     

    10.  Loss,
      Theft, Destruction or Mutilation.
      Upon
      receipt of evidence satisfactory to the Borrower of the loss, theft, destruction
      or mutilation of this Note and, in the case of such loss, theft or destruction,
      upon delivery to the Borrower of an indemnity undertaking reasonably
      satisfactory to the Borrower, or, in the case of any such mutilation, upon
      surrender of this Note to the Borrower, the Borrower will issue a new note,
      of
      like tenor and principal amount, in lieu of or in exchange for such lost,
      stolen, destroyed or mutilated Note. 

     

    11.  Gross-Up.
      Any and
      all payments by the Borrower, any Affiliate or any future transferee or assignee
      hereunder shall be made free and clear of and without deduction for any Taxes
      (other than Excluded Taxes). If the Borrower, any Affiliate or any future
      transferee or assignee is required by applicable Law to deduct any Taxes (other
      than Excluded Taxes) from or in respect of any amount payable hereunder, then
      the amount payable by the Borrower, any Affiliate or any future transferee
      or
      assignee shall be increased as may be necessary so that, after the Borrower
      has
      made such deductions, the Lender receives an amount equal to the amount that
      it
      would have received had no such deductions been made.

     

    12.  Guarantee.
      

     

    (a)    Boston
      Scientific hereby, unconditionally and irrevocably, guarantees to and for the
      benefit of the Lender and its successors, indorsees, transferees and assigns
      permitted hereunder, as primary obligor and not merely as surety, the prompt
      and
      complete payment and performance by the Borrower when due (whether at the stated
      maturity, by acceleration or otherwise) of the Obligations.

     

    (b)    The
      guarantee contained in this Section 12 shall remain in full force and effect
      until all the Obligations shall have been satisfied by payment in
      full.

     

    (c)    Notwithstanding
      any payment made by Boston Scientific hereunder or any set-off or application
      of
      funds of Boston Scientific by the Lender, Boston Scientific shall not be
      entitled to be subrogated to any of the rights of the Lender against the
      Borrower or right of offset held by the Lender for the payment of the
      Obligations, nor shall Boston Scientific seek or be entitled to seek any
      contribution or reimbursement from the Borrower in respect of payments made
      by
      it hereunder, until all amounts owing to the Lender by the Borrower on account
      of the Obligations are paid in full. If any amount shall be paid to Boston
      Scientific on account of such subrogation rights at any time when all of the
      Obligations shall not have been paid in full, such amount shall be held by
      Boston Scientific in trust for the Lender, segregated from other funds of Boston
      Scientific, and shall, forthwith upon receipt by Boston Scientific, be turned
      over to the Lender in the exact form received by Boston Scientific (duly
      indorsed by Boston Scientific to the Lender, if required), to be applied against
      the Obligations, whether matured or unmatured, in such order as the Lender
      may
      determine.

     

    (d)    Boston
      Scientific shall remain obligated hereunder notwithstanding that, without any
      reservation of rights against Boston Scientific and without notice to or further
      assent by Boston Scientific, any demand for payment of any of the Obligations
      made by the Lender may 

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    be
      rescinded by the Lender and any of the Obligations continued, and the
      Obligations, or the liability of any other Person upon or for any part thereof,
      or any guarantee therefor or right of offset with respect thereto, may, from
      time to time, in whole or in part, be renewed, extended, amended, modified,
      accelerated, compromised, waived, surrendered or released by the Lender, and
      this Note and any other documents executed and delivered in connection herewith
      may be amended, modified, supplemented or terminated, in whole or in part,
      in
      any case as the Lender and the Borrower may deem advisable from time to time,
      and any guarantee or right of offset at any time held by the Lender for the
      payment of the Obligations may be sold, exchanged, waived, surrendered or
      released.

     

    (e)    Boston
      Scientific waives any and all notice of the creation, renewal, extension or
      accrual of any of the Obligations and notice of or proof of reliance by the
      Lender upon the guarantee contained in this Section 12 or acceptance of the
      guarantee contained in this Section 12; the Obligations, and any of them, shall
      conclusively be deemed to have been created, contracted or incurred, or renewed,
      extended, amended or waived, in reliance upon the guarantee contained in this
      Section 12; and all dealings between the Borrower and Boston Scientific likewise
      shall be conclusively presumed to have been had or consummated in reliance
      upon
      the guarantee contained in this Section 12. Boston Scientific waives diligence,
      presentment, protest, demand for payment and notice of default or nonpayment
      to
      or upon the Borrower or Boston Scientific with respect to the Obligations.
      Boston Scientific understands and agrees that the guarantee contained in this
      Section 12 shall be construed as a continuing, absolute and unconditional
      guarantee of payment without regard to (i) the validity or enforceability of
      this Note, any of the Obligations or any guarantee or right of offset with
      respect thereto at any time or from time to time held by the Lender, (ii) any
      defense, set-off or counterclaim (other than a defense of payment or
      performance) which may at any time be available to or be asserted by the
      Borrower or any other Person against the Lender, (iii) any change in the
      corporate existence or structure of the Borrower or any other Person or any
      change in any law, regulation or order affecting the Obligations, or (iv) any
      other circumstance whatsoever (with or without notice to or knowledge of the
      Borrower or Boston Scientific) which constitutes, or might be construed to
      constitute, an equitable or legal discharge of the Borrower for the Obligations,
      or of Boston Scientific under the guarantee contained in this Section 12 in
      bankruptcy or in any other instance. When making any demand hereunder or
      otherwise pursuing its rights and remedies hereunder against Boston Scientific,
      the Lender may, but shall be under no obligation to, make a similar demand
      on or
      otherwise pursue such rights and remedies as it may have against the Borrower,
      or any other Person or against any guarantee for the Obligations or any right
      of
      offset with respect thereto, and any failure by the Lender to make any such
      demand, to pursue such other rights or remedies or to collect any payments
      from
      the Borrower, or any other Person or to realize upon any such guarantee or
      to
      exercise any such right of offset, or any release of the Borrower, or any other
      Person or any such guarantee or right of offset, shall not relieve Boston
      Scientific of any obligation or liability hereunder, and shall not impair or
      affect the rights and remedies, whether express, implied or available as a
      matter of law, of the Lender against Boston Scientific. For the purposes hereof
      “demand” shall include the commencement and continuance of any legal
      proceedings.

     

    (f)    The
      guarantee contained in this Section 12 shall continue to be effective, or be
      reinstated, as the case may be, if at any time payment, or any part thereof,
      of
      any of the Obligations is rescinded or must otherwise be restored or returned
      by
      the Lender upon the 

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    insolvency,
      bankruptcy, dissolution, liquidation or reorganization of any the Borrower
      or
      Boston Scientific, or upon or as a result of the appointment of a receiver,
      intervenor or conservator of, or trustee or similar officer for, the Borrower,
      Boston Scientific or any substantial part of their respective property, or
      otherwise, all as though such payments had not been made.

     

    (g)    Boston
      Scientific hereby guarantees that payments hereunder will be made in the manner
      set forth in Section 1.

     

        13.  Miscellaneous.
      

     

    (a)    The
      parties hereby acknowledge that this Note is being entered into the parties
      pursuant to Section 5.10 of the Transaction Agreement. The parties further
      acknowledge and agree that the entry of the parties hereto into this Note shall
      in no way affect the effectiveness of the Transaction Agreement and the
      Transaction Agreement shall remain in full force and effect pursuant to the
      terms thereof; provided,
      however,
      that to
      the extent that any of the provisions of this Note conflict with any provisions
      of the Transaction Agreement, the provisions herein shall control.

     

    (b)    No
      term
      of this Note may be changed, waived, discharged or terminated orally, but may
      only be amended or modified by an instrument in writing signed by the Lender
      and
      the Borrower.

     

    (c)    All
      notices, requests and demands to or upon the respective parties hereto to be
      effective shall be in writing (including by telecopy or electronic
      transmission), and, unless otherwise expressly provided herein, shall be deemed
      to have been duly given or made when delivered, or three Business Days after
      being deposited in the mail, postage prepaid, or, in the case of telecopy or
      electronic notice, when received addressed as follows: 

     

    
       

      
        	Borrower:  	
                BSC
                  International Holding Limited

              

      

      Gaetano
        Martinolaan 50

    

    6229
      GS
      Maastricht

                    The
      Netherlands

                    Fax:
      (011)
      31-43-3568270

                    Attention:
      Director

    

    with
      copies to:

    

    Boston
      Scientific Corporation

    One
      Boston Scientific Place 

    Natick,
      Massachusetts 01760

    Fax:
      (508) 650-8960

    Attention:
      General Counsel

    

    Shearman
      & Sterling LLP

    599
      Lexington Avenue

    New
      York,
      NY 10022-6069

    Fax:
      (212) 848-7179

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    Attention: 
      Peter D. Lyons

    Clare
      O’Brien

     

    
      	Boston
              Scientific:	
              Boston
                Scientific Corporation

            

    

    One
      Boston Scientific Place 

    Natick,
      Massachusetts 01760

    Fax:
      (508) 650-8960

    Attention:
      General Counsel

    

    with
      a
      copy to:

     

    Shearman
      & Sterling LLP

    599
      Lexington Avenue

    New
      York,
      NY 10022-6069

    Fax:
      (212) 848-7179

    Attention:
      Peter D. Lyons

    Clare
      O’Brien

     

    
      	Lender:	
              Abbott
                Laboratories

            

    

    Dept.
      0392, Bldg. AP6D 

    100
      Abbott Park Road

    Abbott
      Park, Illinois 60064-3500

    Fax:
      (847)
      935-8207

    Attention:
      Chief Operating Officer, Medical Products Group

    

    with
      copies to:

    Abbott
      Laboratories

    Dept.
      364, Bldg. AP6D

    100
      Abbott Park Road

    Abbott
      Park, Illinois 60064-6020 USA

    Fax:
      (847) 938-6277

    Attention:
      General Counsel
      

    

    Abbott
      Laboratories

    Dept.
      312, Bldg. AP6D

    100
      Abbott Park Road

    Abbott
      Park, Illinois 60064-6028 USA

    Fax:
      (847) 938-6307

    Attention:
      Treasurer

    

    Simpson
      Thacher & Bartlett LLP

    425
      Lexington Avenue

    New
      York,
      NY 10017-3903

    Fax:
      (212)
      455-2502

    Attention: 
      Charles I. Cogut

    William
      E. Curbow

     Jay
      M. Ptashek

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    

    provided
      that any
      notice, request or demand to or upon the Lender shall not be effective until
      received.

    

    (d)    No
      failure to exercise and no delay in exercising, on the part of the Lender,
      any
      right, remedy, power or privilege hereunder shall operate as a waiver thereof;
      nor shall any single or partial exercise of any right, remedy, power or
      privilege hereunder preclude any other or further exercise thereof or the
      exercise of any other right, remedy, power or privilege. The rights, remedies,
      powers and privileges herein provided are cumulative and not exclusive of any
      rights, remedies, powers and privileges provided by law or in any other
      Contractual Obligations of the Borrower or Boston Scientific.

     

    (e)    The
      Borrower agrees to pay or reimburse the Lender for all its costs and expenses
      (including reasonable attorney’s fees) incurred in connection with the
      enforcement by the Lender of any of its rights under this Note.

     

    (f)    Subject
      to the provisions of this subsection 13(f), the Lender may sell, assign,
      transfer or otherwise hypothecate this Note, in whole or in part, to any Person
      without the consent of the Borrower or Boston Scientific. Any such transferee,
      shall thereafter be deemed to be the “Lender” for all purposes herein other than
      Section 3, it being understood and agreed that any amounts then outstanding
      under this Note shall continue to be reduced in accordance with Section 3
      regardless of any such sale, assignment, transfer or hypothecation by the
      Lender, and that, as a condition to any such sale, assignment, transfer or
      hypothecation by the Lender, the Lender shall cause any such transferee to
      acknowledge in writing (with a copy of such acknowledgement to be delivered
      to
      the Borrower) its agreement to the foregoing. Notwithstanding anything to the
      contrary in this Section 13(f), unless any sale, assignment, transfer or other
      hypothecation of this Note by the Lender in accordance with this Section 13(f)
      is to the same Person (or its Affiliate) to which Abbott's (or its successor's)
      rights and obligations under Section 5.08 of the Transaction Agreement are
      assigned in accordance with Section 12.06 thereof, the last sentence of Section
      5.10(a) of the Transaction Agreement and the last sentence of Section 7(d)
      hereof shall forthwith become inapplicable. The Borrower may assign or otherwise
      transfer any of its rights or obligations hereunder to any of its Affiliates;
      provided that the guarantee of Boston Scientific of all the obligations of
      the
      Borrower under this Note shall remain in full force and effect regardless of
      any
      such assignment or transfer. Boston Scientific may not assign or otherwise
      transfer any of its rights or obligations hereunder; provided,
      however,
      that
      Boston Scientific may, without the consent of the other parties hereto, assign
      its rights and obligations, in whole or in part, to any acquiror of all or
      substantially all of Boston Scientific’s vascular intervention business. Any
      attempted assignment or transfer by the Lender, the Borrower or Boston
      Scientific in contravention of this subsection (f) without the consent of the
      other parties hereto, as applicable, shall be null and void.

     

    (g)    In
      addition to any rights and remedies of the Lender provided by law or contract,
      the Lender shall have the right, without prior notice to the Borrower or Boston
      Scientific, upon any amount becoming due and payable by the Borrower or Boston
      Scientific hereunder (whether at the stated maturity, by acceleration or
      otherwise), to set off and appropriate and apply against such amount any and
      all
      deposits (general or special, time or demand, provisional or final), in any
      currency, and any other credits, Indebtedness or claims, in 

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    any
      currency, in each case whether direct or indirect, absolute or contingent,
      matured or unmatured, at any time held or owing by the Lender or for the credit
      or the account of the Borrower or Boston Scientific.

     

    (h)    This
      Note
      may be executed by one or more of the parties to this Note on any number of
      separate counterparts, and all of said counterparts taken together shall be
      deemed to constitute one and the same instrument. Delivery of an executed
      signature page of this Note by facsimile or electronic transmission shall be
      effective as delivery of a manually executed counterpart hereof.

     

    (i)    Any
      provision of this Note that is prohibited or unenforceable in any jurisdiction
      shall, as to such jurisdiction, be ineffective to the extent of such prohibition
      or unenforceability without invalidating the remaining provisions hereof, and
      any such prohibition or unenforceability in any jurisdiction shall not
      invalidate or render unenforceable such provision in any other jurisdiction.
      

     

    (j)    THIS
      NOTE
      AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS NOTE SHALL BE GOVERNED
      BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE
      OF
      NEW YORK.

     

    (k)    Each
      of
      the Borrower and Boston Scientific hereby irrevocably and unconditionally:
      (i)
      submits for itself and its property in any legal action or proceeding relating
      to this Note, or for recognition and enforcement of any judgment in respect
      thereof, to the non-exclusive general jurisdiction of the courts of the State
      of
      New York, the courts of the United States for the Southern District of New
      York
      and appellate courts from any thereof; (ii) consents that any such action or
      proceeding may be brought in such courts and waives any objection that it may
      now or hereafter have to the venue of any such action or proceeding in any
      such
      court or that such action or proceeding was brought in an inconvenient court
      and
      agrees not to plead or claim the same; (iii) agrees that service of process
      in
      any such action or proceeding may be effected by mailing a copy thereof by
      registered or certified mail (or any substantially similar form of mail),
      postage prepaid to Boston Scientific at its address set forth in subsection
      13(c) above or at such other address of which the Lender shall have been
      notified pursuant thereto; (iv) agrees that nothing herein shall affect the
      right to effect service of process in any other manner permitted by law or
      shall
      limit the right to sue in any other jurisdiction; and (v) waives, to the maximum
      extent not prohibited by law, any right it may have to claim or recover in
      any
      legal action or proceeding referred to in this subsection 13(k) any special,
      exemplary, punitive or consequential damages.

     

    (l)    THE
      BORROWER, BOSTON SCIENTIFIC AND THE LENDER HEREBY IRREVOCABLY AND
      UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING
      TO THIS NOTE AND FOR ANY COUNTERCLAIM THEREIN.

     

    (m)    This
      Note
      shall be binding upon and inure to the benefit of the Borrower, Boston
      Scientific and the Lender and their respective heirs, successors and permitted
      assigns

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    (n)    Nothing
      in this Note, express or implied, shall give to any Person, (other than the
      parties hereto and their successors hereunder) any benefit or any legal or
      equitable right, remedy or claim under this Note.

     

    (o)    The
      Borrower has, at the time of the signing of this Note, caused Irish stamp duty
      in an amount of €0.15 to be paid on this Note, and a stamp for such amount is
      affixed to this Note, which stamp (i) (A) has been signed by or bears the
      initials of a duly authorized signatory of the Borrower, or (B) bears “BSC
      International Holding Limited” written over the stamp, and (ii) is dated as of
      the date of this Note.

     

    [Remainder
      of page was intentionally left blank]

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Borrower and Boston Scientific have caused this Note to
      be
      duly executed and delivered as of the day and year first above
      written.

     

    
      	 	 	 
	 	BSC
              INTERNATIONAL
              HOLDING LIMITED
	 
 	 
 	 
 
	 	By:  	/s/ Daniel
              Philip Florin
	 	
              
Name: Daniel
              Philip Florin
	 	Title: Director 

       

      
        	 	 	 
	 	BOSTON
                SCIENTIFIC
                CORPORATION
	 
 	 
 	 
 
	 	By:  	/s/ Lawrence
                C. Best
	 	
                
Name: Lawrence
                C. Best
	 	Title: Executive
                Vice President and   Chief
                Financial Officer

      

    

    

    ACKNOWLEDGED
      AND AGREED:

    

    ABBOTT
      LABORATORIES

    

    

    By: 
      /s/ Thomas
      C. Freyman 
      
        

      

    

    Name: Thomas
      C.
      Freyman

    Title:   Executive
      Vice President, Finance and 

               
Chief
      Financial Officer

    

    

    

    

    

    
      
         

      

      
        20WWW.EXFILE.COM, INC. -- 14526 -- BOSTON SCIENTIFIC CORP. -- EXHIBIT 10.5 TO FORM 10-Q

    EXHIBIT
      10.5

    

    SUBSCRIPTION
      AND STOCKHOLDER AGREEMENT

     

    THIS
      SUBSCRIPTION AND STOCKHOLDER AGREEMENT (this “Agreement”)
      dated
      as of April 21, 2006, is by and between BOSTON SCIENTIFIC CORPORATION, a
      Delaware corporation (“Boston
      Scientific”)
      and
      ABBOTT LABORATORIES, an Illinois corporation (“Abbott”).

     

    WHEREAS,
      Boston Scientific and Abbott are parties to that certain Transaction Agreement
      dated as of January 8, 2006 (as amended to date and as may be further amended,
      restated, supplemented or otherwise modified from time to time, the
“Transaction
      Agreement”),
      pursuant to which Abbott agreed, through itself or one if its affiliates, to
      acquire the vascular intervention and endovascular solutions businesses of
      Guidant Corporation (“Guidant”)
      on the
      terms and subject to the conditions set forth in the Transaction Agreement
      and
      the Purchase Agreement (as hereinafter defined);

     

    WHEREAS,
      the Transaction Agreement provides that, at the Closing, Abbott shall purchase
      from Boston Scientific, and Boston Scientific shall issue and sell to Abbott,
      shares of common stock, par value $0.01 per share (the “Common
      Stock”),
      of
      Boston Scientific; 

     

    WHEREAS,
      Abbott desires to purchase from Boston Scientific, and Boston Scientific desires
      to sell to Abbott, the Shares (as hereinafter defined) upon the terms and
      subject to the conditions set forth herein; and

     

    WHEREAS,
      the parties hereto desire to restrict the sale or transfer of the Shares and
      to
      provide for certain rights and obligations in respect of the Shares, all as
      hereinafter provided.

     

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

     

    ARTICLE I

     

    DEFINITIONS

    Section 1.1  Definitions.
      (a)
      Capitalized terms used herein and not defined shall have the meanings ascribed
      to them in that Purchase Agreement, dated as of the date hereof, between Guidant
      and Abbott (the “Purchase
      Agreement”),
      unless otherwise indicated. 

     

    (b)  For
      purposes of this Agreement, all references to “Abbott” shall refer to Abbott
      Laboratories and any of its Affiliates that Abbott Laboratories designates
      to
      purchase Shares in lieu of Abbott in accordance with Section 7.9.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE II

     

    SALE
      OF STOCK; SHARE CLOSING; ADDITIONAL ISSUANCES

     

    Section 2.1  Purchase
      and Sale.
      (a)
      On the
      basis of the representations, warranties, covenants and agreements herein,
      at
      the
      Share Closing (as defined below), Abbott shall purchase from Boston Scientific,
      and Boston Scientific shall issue and sell to Abbott, 56,000,000 shares of
      Common Stock (the “Shares”)
      at a
      purchase price of $25.00 per Share, for an aggregate purchase price of
      $1,400,000,000 (the “Aggregate
      Stock Purchase Price”);
      provided
      that if
      the average of the per share closing prices of the shares of Common Stock on
      the
      New York Stock Exchange during the five consecutive trading days ending (and
      including) the date that is three trading days prior to the Share Closing Date
      (as defined below) is less than $25.00, Abbott shall purchase from Boston
      Scientific, and Boston Scientific shall issue and sell to Abbott, the number
      of
      shares of Common Stock (which shall be deemed to be Shares for purposes of
      this
      Agreement) that is equal to the quotient obtained by dividing $1,400,000,000
      by
      such average per share closing price (the per Share purchase price payable
      by
      Abbott or the applicable Purchaser under this Section 2.1(a) being, the
“Stock
      Purchase Price”).
      In no
      event shall the number of Shares acquired by Abbott pursuant to this Section
      2.1(a) equal or exceed 5% of the number of shares of Common Stock outstanding
      immediately following the issuance of Shares pursuant to this Section 2.1 and
      the consummation of the Merger, and, in such event, the number of Shares to
      be
      purchased by Abbott hereunder and the Aggregate Stock Purchase Price shall
      be
      reduced accordingly.

     

    (b)  
      At the
      Share Closing, (i) Abbott shall pay the Aggregate Stock Purchase Price by wire
      transfer of immediately available funds to a bank account designated in writing
      by Boston Scientific to Abbott not fewer than three Business Days prior to
      the
      Share Closing Date, and (ii) Boston Scientific shall deliver to Abbott the
      Shares in either book entry form or evidenced by stock certificates having
      the
      legend described in Section 3.3, as determined by Boston Scientific not fewer
      than ten business days prior to the Share Closing Date; provided,
      however,
      that in
      the event that Boston Scientific determines to issue the Shares evidenced by
      stock certificates, Boston Scientific shall deliver such stock certificates
      to
      Abbott or an agent of Abbott (which agent shall be designated by Abbott not
      fewer than five business days prior to the Share Closing Date), and Boston
      Scientific shall bear any risk of loss related to such delivery.

     

    Section 2.2  Time
      and Place of Share Closing; Conditions Precedent.
      (a)
      The
      closing with respect to the purchase and sale of the Shares (the “Share
      Closing”)
      shall
      take place simultaneously with, and at the same location as, the Closing
      contemplated by the Purchase Agreement, or on such other date and at such other
      location as mutually agreed between the parties (the date of the Share Closing,
      the “Share
      Closing Date”),
      provided that the conditions set forth in Section 2.2(b) and 2.2(c) have been
      satisfied or waived.

     

    (b)  The
      obligation of Boston Scientific to consummate the transactions contemplated
      by
      this Agreement is subject to the satisfaction or written waiver by Boston
      Scientific, at or prior to the Share Closing, of the following
      conditions:

     

    (i)  each
      of
      the representations and warranties of Abbott contained in this Agreement shall
      be true and correct in all material respects as of the Share 

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    Closing
      Date, with the same force and effect as if made as of the Share Closing Date
      (other than such representations and warranties as are made as of another date,
      which shall be true and correct in all material respects as of such date),
      except in either case where any failure of such representations and warranties
      to be so true and correct would not materially delay or prevent the consummation
      of the transactions contemplated hereby, and the covenants and agreements
      contained in this Agreement to be complied with by Abbott on or before the
      Share
      Closing Date shall have been complied with in all material respects;

     

    (ii)  all
      of
      the respective conditions to Boston Scientific’s, Sub’s and Guidant’s
      obligations to consummate the Merger, as set forth in the Merger Agreement,
      shall have been satisfied or waived, and each of Boston Scientific and Sub
      shall
      have notified Guidant, and Guidant shall have notified Boston Scientific and
      Sub, in writing (with copies of such notices having been delivered to Abbott)
      that it is ready, willing and able to consummate the Merger and that it intends
      to consummate the Merger immediately following the consummation of the
      transactions contemplated by this Agreement, the Purchase Agreement and the
      Transaction Agreement; and 

     

    (iii)  all
      of
      the respective conditions to Abbott’s and Guidant’s obligations to consummate
      the transactions contemplated by the Purchase Agreement, as set forth in the
      Purchase Agreement, shall have been satisfied or waived, and each party thereto
      shall have notified the other party in writing (with copies of such notices
      having been delivered to Boston Scientific) that it is ready, willing and able
      to consummate the transactions contemplated by the Purchase Agreement and that
      it shall consummate such transactions simultaneously with the consummation
      of
      the transactions contemplated by this Agreement.

     

    (c)  The
      obligation of Abbott to consummate the transactions contemplated by this
      Agreement is subject to the satisfaction or written waiver by Abbott, at or
      prior to the Share Closing, of the following conditions:

     

    (i)  each
      of
      the representations and warranties of Boston Scientific contained in this
      Agreement shall be true and correct in all material respects as of the Share
      Closing Date, with the same force and effect as if made as of the Share Closing
      Date (other than such representations and warranties as are made as of another
      date, which shall be true and correct in all material respects as of such date),
      except in either case where any failure of such representations and warranties
      to be so true and correct would not materially delay or prevent the consummation
      of the transactions contemplated hereby, and the covenants and agreements
      contained in this Agreement to be complied with by Boston Scientific on or
      before the Share Closing Date shall have been complied with in all material
      respects; 

     

    (ii)  all
      of
      the respective conditions to Boston Scientific’s, Sub’s and Guidant’s
      obligations to consummate the Merger, as set forth in the Merger Agreement,
      shall have been satisfied or waived, and each of Boston Scientific and

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    Sub
      shall
      have notified Guidant, and Guidant shall have notified Boston Scientific and
      Sub, in writing (with copies of such notices having been delivered to Abbott)
      that it is ready, willing and able to consummate the Merger and that it intends
      to consummate the Merger immediately following the consummation of the
      transactions contemplated by this Agreement, the Purchase Agreement and the
      Transaction Agreement; and 

     

    (iii)  all
      of
      the respective conditions to Abbott’s and Guidant’s obligations to consummate
      the transactions contemplated by the Purchase Agreement, as set forth in the
      Purchase Agreement, shall have been satisfied or waived, and Guidant shall
      have
      notified Abbott in writing that it is ready, willing and able to consummate
      the
      transactions contemplated by the Purchase Agreement and that it shall consummate
      such transactions simultaneously with the consummation of the transactions
      contemplated by this Agreement.

     

    (d)  In
      the
      event that Boston Scientific, Sub and Guidant do not complete the Merger on
      the
      same day as, or on the first Business Day following, the Share Closing Date,
      then on the second Business Day following the Share Closing Date, Boston
      Scientific shall repurchase all of the Shares sold to Abbott pursuant to Section
      2.1 for an amount equal to the Aggregate Stock Purchase Price plus interest
      compounded daily on such amount for the period from and including the Share
      Closing Date and ending on the date of repayment at the rate publicly announced
      by JPMorgan Chase Bank, N.A. as its prime rate in effect at its principal office
      in New York City.

     

    Section 2.3  Additional
      Issuance of Common Stock; Interest Reimbursement.
      (a)
      On the
      date (such date, the “Interest
      Reimbursement Issuance Date”)
      that
      is eighteen months following the Share Closing Date, Boston Scientific shall
      issue to Abbott a number of shares of Common Stock, as calculated by Abbott
      and
      set forth in a written notice sent by Abbott to Boston Scientific within three
      Business Days prior to the Interest Reimbursement Issuance Date (which notice
      shall set forth any relevant calculations), that is equal to the quotient
      obtained by dividing the Cost of Borrowing (as defined below) by the average of
      the per share closing prices of shares of Common Stock on the New York Stock
      Exchange during the twenty consecutive trading days ending (and including)
      the
      date that is five trading days prior to the Interest Reimbursement Issuance
      Date
      (and such shares of Common Stock shall be included in the definition of “Shares”
herein (other than with respect to Section 3.5)) (such price, the “Interest
      Reimbursement Share Price”).
      Any
      Shares issued to Abbott pursuant to this Section 2.3 shall, at the time of
      issuance to Abbott, be registered under the Securities Act (as defined below).
      For purposes of this Section 2.3, the “Cost
      of Borrowing”
means
      Abbott’s weighted average actual cost of borrowing on a principal amount equal
      to the Aggregate Stock Purchase Price during the period commencing on the Share
      Closing Date and ending on the Interest Reimbursement Issuance Date, using
      for
      purposes of determining the weighted average actual cost of borrowing the
      interest rates payable by Abbott pursuant to borrowings incurred by it during
      the period commencing 30 days prior to the Share Closing Date and ending 30
      days
      prior to the Interest Reimbursement Issuance Date; provided
      that
      Boston Scientific will only be required to reimburse Abbott pursuant to this
      Section 2.3 with respect to any Cost of Borrowing greater than $10 million
      and
      less than or equal to $70 million; provided further
      that,
      for purposes of calculating the Cost of Borrowing, (i) the Net Proceeds (as
      defined below) to Abbott or any of its 

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    Affiliates
      from sales of Shares that are retained by Abbott as described in Section 3.5
      shall be deemed to have been applied by Abbott (minus any Taxes) to reduce
      the
      amount of Abbott’s borrowing in respect of the Aggregate Stock Purchase Price,
      and (ii) such calculation shall be based solely on the actual cost of borrowing
      and shall not be offset by any earnings or other interest income received by
      or
      due to Abbott in respect of any investments or otherwise. Nothing contained
      in
      this Section 2.3 shall require Abbott to make any actual payment with respect
      to
      such borrowing.

     

    (b)  Each
      fiscal quarter following the Share Closing, Abbott shall notify Boston
      Scientific in writing of its Cost of Borrowing during the immediately preceding
      fiscal quarter. The calculation of the Cost of Borrowing shall be subject to
      a
      one-time audit on or after the Interest Reimbursement Issuance Date by a third
      party designated by Boston Scientific and reasonably acceptable to Abbott.
      The
      costs of any such third party audit shall be shared equally by Boston Scientific
      and Abbott. In the event the audit discloses that too many or too few Shares
      were issued by Boston Scientific pursuant to this Section 2.3 as the result
      of a
      miscalculation of the Cost of Borrowing, Abbott (in the case of an overissuance
      of Shares) or Boston Scientific (in the case of an underissuance of Shares),
      as
      applicable, shall make a cash payment to the other party, calculated based
      on
      the Interest Reimbursement Share Price and the number of excess or shortfall
      Shares, as applicable, to account for such miscalculation.

     

    ARTICLE III

     

    CERTAIN
      RESTRICTIONS ON TRANSFER AND VOTING; USE OF PROCEEDS ON TRANSFER OF
      SHARES

    

    Section 3.1  Sale
      Restrictions.
      (a)
      Neither
      Abbott nor any of its Affiliates shall sell, transfer, assign or otherwise
      dispose of, directly or indirectly (“Transfer”),
      any
      Shares during the six-month period following the Share Closing; provided
      that if
      the average of the per share closing prices of shares of Common Stock on the
      New
      York Stock Exchange during any consecutive twenty trading days during the
      six-month period following the Share Closing is greater than $30.00, Abbott
      may
      sell Shares in accordance with Article IV during such six-month period. Subject
      to the second proviso in Section 4.2(b), neither Abbott nor any of its
      Affiliates shall Transfer, during any one-month period following the Share
      Closing, a number of Shares that is greater than 8.33% of the Shares acquired
      by
      Abbott at the Share Closing (such number of Shares, the “Monthly
      Sale Volume Limitation”);
      provided,
      however,
      that
      such restrictions on the ability of Abbott or any of its Affiliates to Transfer
      Shares shall terminate on the date that is eighteen months following the Share
      Closing Date. The provisions of this Section 3.1(a) may be amended or waived
      at
      any time in accordance with Section 7.11.

     

    (b)  Nothing
      in Section 3.1(a) shall prevent Abbott from Transferring any of its Shares
      in
      any change of control transaction involving Boston Scientific or from tendering
      its Shares into any tender offer for the Shares commenced by Boston Scientific
      or any other Person.

     

    Section 3.2  Violation
      of Transfer Restrictions.
      Notwithstanding anything herein to the contrary, Abbott shall not Transfer
      any
      Shares unless such Transfer is made in accordance with applicable securities
      laws. Any attempt to Transfer any Shares in violation of the terms of this
      Agreement shall be null and void, and neither Boston Scientific nor any transfer
      agent 

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    shall
      register upon its books any Transfer of Shares by Abbott to any Person except
      a
      Transfer in accordance with this Agreement.

     

    Section 3.3  Legends.
      (a)Each
      certificate representing Shares shall, except as otherwise provided in this
      Section 3.3, be stamped or otherwise imprinted with a legend substantially
      in the following form:

     

    “THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE RESTRICTIONS
      ON
      DISPOSITION OF A SUBSCRIPTION AND STOCKHOLDER AGREEMENT DATED AS OF [______]
      [__], 2006, AS THE SAME MAY BE AMENDED FROM TIME TO TIME, BETWEEN ABBOTT
      LABORATORIES AND BOSTON SCIENTIFIC CORPORATION.”

     

    (b)  Each
      certificate representing shares of Registrable Stock (as defined below) shall,
      except as otherwise provided in this Section 3.3, be stamped or otherwise
      imprinted with legends substantially in the following form:

     

    (i) “THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE RESTRICTIONS
      ON
      DISPOSITION OF A SUBSCRIPTION AND STOCKHOLDER AGREEMENT DATED AS OF [______]
      [__], 2006, AS THE SAME MAY BE AMENDED FROM TIME TO TIME, BETWEEN ABBOTT
      LABORATORIES AND BOSTON SCIENTIFIC CORPORATION.”;
      and

     

    (ii) “THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933 AND MAY NOT BE TRANSFERRED OR OTHERWISE DISPOSED OF
      UNLESS THEY HAVE BEEN REGISTERED UNDER THAT ACT OR AN EXEMPTION FROM
      REGISTRATION IS AVAILABLE.”

     

    (c)  Boston
      Scientific shall, at the request of Abbott, (i) remove from each certificate
      evidencing Shares or Registrable Stock the legend described in Section 3.3(a)
      and 3.3(b)(i), as applicable, on the earlier to occur of (A) such time as Abbott
      and its Affiliates own fewer than 8.33% of the Shares acquired by Abbott at
      the
      Share Closing, and (B) the 18 month anniversary of the Share Closing, and (ii)
      remove from each certificate evidencing Registrable Stock the legend described
      in Section 3.3(b)(ii) if in the opinion of counsel satisfactory to Boston
      Scientific Registrable Stock evidenced thereby may be publicly sold without
      registration under the Securities Act or if it is registered. Boston Scientific
      shall reasonably cooperate with Abbott to remove the legends described in
      Section 3.3(a) and (b) so as to allow Abbott or its Affiliates to Transfer
      Shares as permitted by Section 3.1.

     

    Section 3.4  Agreement
      to Vote; Proxies.
      As of
      the Share Closing, Abbott shall grant to Boston Scientific or any of its
      designees an irrevocable proxy and shall appoint Boston Scientific or any of
      its
      designees as attorney-in-fact for Abbott and each of its Affiliates that
      beneficially owns Shares received pursuant to Sections 2.1 and 2.3, for so
      long
      as Abbott and 

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    such
      Affiliates beneficially own such Shares, with respect to any matter to be voted
      on by stockholders of Boston Scientific. All such Shares shall be voted
      proportionately with the vote cast by all other stockholders of Boston
      Scientific entitled to vote and voting on such matter. Upon the sale, transfer,
      assignment or other disposition of such Shares by Abbott or any Affiliate to
      an
      unaffiliated third party, the proxy granted pursuant to this Section 3.4 with
      respect to such Shares so transferred, assigned or disposed shall be
      automatically revoked, and the appointment pursuant to this Section 3.4 as
      attorney-in-fact with respect to such Shares shall be automatically
      terminated.

     

    Section 3.5  Use
      of
      Proceeds on Sale; Loan Prepayment.
      (a)If,
      at
      any time during the term of the Note, Abbott or any of its Affiliates sells
      any
      Shares issued pursuant to Section 2.1 to any unaffiliated third party, then
      Abbott and Boston Scientific shall share in the proceeds per share (net of
      any
      underwriting discounts and commissions) (the "Net
      Proceeds")
      as
      follows: 

     

    (i)  if
      the
      Net Proceeds to Abbott or such Affiliates from any such sales are less than
      or
      equal to 110% of the Stock Purchase Price, Abbott shall retain all of such
      Net
      Proceeds; 

     

    (ii)  if
      the
      Net Proceeds to Abbott or such Affiliates from any such sales are greater than
      110% but equal to or less than 120% of the Stock Purchase Price, Abbott shall
      retain the portion of the Net Proceeds equal to 110% of the Stock Purchase
      Price, and the portion of the Net Proceeds in excess of 110% of the Stock
      Purchase Price (minus any Taxes imposed on Abbott on or with respect to gain
      on
      the Net Proceeds in excess of 110% of the Stock Purchase Price) shall be
      immediately applied by Abbott to reduce any amounts then outstanding under
      the
      Note in accordance with Section 3(a) thereof; and 

     

    (iii)  if
      the
      Net Proceeds to Abbott or such Affiliates from any such sales are greater than
      120% of the Stock Purchase Price, Abbott shall retain the portion of the Net
      Proceeds equal to 110% of the Stock Purchase Price, the portion of the Net
      Proceeds in excess of 110% but less than or equal to 120% of the Stock Purchase
      Price (minus any Taxes imposed on Abbott on or with respect to gain on the
      Net
      Proceeds in excess of 110% of the Stock Purchase Price but less than or equal
      to
      120% of the Stock Purchase Price) shall be immediately applied by Abbott to
      reduce any amounts then outstanding under the Note in accordance with Section
      3(a) thereof, and, with respect to all Net Proceeds in excess of 120% of the
      Stock Purchase Price, 50% of such excess amount shall be retained by Abbott,
      and
      the remaining 50% (minus any Taxes imposed on Abbott on or with respect to
      gain
      on the remaining 50% of the Net Proceeds in excess of 120% of the Stock Purchase
      Price) shall be immediately applied by Abbott to reduce any amounts then
      outstanding under the Note in accordance with Section 3(a) thereof.

     

    (b)  Abbott
      shall determine the amount of such Taxes due any Governmental Authority with
      respect to any such sale referred to in Section 3.5(a) above (using for this
      purpose the highest marginal tax rate under applicable Law) and shall notify
      Boston Scientific in writing 

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    within
      three Business Days of any sale of Shares by it or any of its Affiliates, and
      shall include in such notice the number of Shares sold by it or such Affiliates,
      the selling price for such Shares and Net Proceeds for such Shares and the
      amount of Taxes payable by Abbott or its Affiliates with respect to such sale
      (collectively, the "Sales
      Information").
      

     

    (c)  If
      a
      Governmental Authority ultimately determines that the amount of Taxes imposed
      on
      a sale of the Shares is greater than the amount computed by Abbott, the
      principal amount of the Note shall be increased to reflect the increase in
      Taxes
      attributable to proceeds applied by Abbott to reduce amounts outstanding under
      the Note (including any Taxes attributable to the increase of the Note). If
      the
      Note is no longer outstanding at the time when Abbott becomes liable for such
      increase in Taxes, Boston Scientific shall indemnify Abbott for any such
      increase in Taxes, including such Taxes attributable to any such indemnity
      payment. 

     

    (d)  Boston
      Scientific may request that Abbott provide access to its books and records
      to an
      internationally recognized accounting firm reasonably acceptable to Abbott
      for
      the purpose of verifying the Sales Information. In the event that the results
      of
      any such verification indicate that the aggregate amount of Net Proceeds applied
      by Abbott in accordance with this Section 3.5 and pursuant to Section 3(a)
      of
      the Note to reduce amounts outstanding under the Note is 

     

    (i)  less
      than
      the amount calculated by such third party to be so applied by Abbott,
      then

     

    
      	 	
              (A)

            	
              the
                principal amount of the Note shall be decreased by an amount equal
                to such
                difference, or 

            

    

     

    
      	 	
              (B)
                

            	
              if
                the Note is no longer outstanding at the time such verification is
                completed, Abbott shall pay in cash to Boston Scientific an amount
                equal
                to such difference within three Business Days of the delivery to
                each of
                Boston Scientific and Abbott of the final determination by such third
                party of the results of its verification; or

            

    

     

    (ii)  greater
      than the amount calculated by such third party to be so applied by Abbott,
      then

     

    
      	 	
              (A)
                

            	
              the
                principal amount of the Note shall be increased by an amount equal
                to such
                difference (taking into account any adjustments previously made due
                to the
                imposition of increased Tax liability by a Governmental Authority
                as
                provided above), or 

            

    

     

    
      	 	
              (B)
                

            	
              if
                the Note is no longer outstanding at the time such verification is
                completed, Boston Scientific shall pay in cash to Abbott an amount
                equal
                to such difference (taking into account any adjustments or indemnity
                payments previously made due to the imposition of increased Tax liability
                by a Governmental Authority as provided above) within three Business
                Days
                of the delivery to each of Boston Scientific and Abbott of the final
                determination by such third party of the results of its verification.
                Any
                costs associated with
                verification of the Sales Information by the accounting firm shall
                be
                borne equally by Boston Scientific and
                Abbott.

            

    

     

    
      
        
        

      

      
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    Section 3.6  Full
      Sale and Divestiture of Shares.
      Subject
      to Section 3.1(a), Abbott agrees to Transfer all Shares received pursuant to
      Sections 2.1 and 2.3 hereof to an unaffiliated third party no later than 30
      months following the Share Closing.

     

    Section 3.7  Consistent
      Reporting for Tax Purposes.
      Consistent with the provisions of Section 3.5 regarding the use of the Net
      Proceeds from the sale of the Shares, Boston Scientific and Abbott agree that
      for Tax purposes, Boston Scientific is selling a partial interest in the Shares
      to Abbott, and Boston Scientific is retaining the residual interest in the
      Shares. Accordingly, upon a sale of the Shares, Abbott and Boston Scientific
      agree that each party will report a sale of the Shares on its Tax returns in
      the
      following manner: (a) Abbott will treat as its amount realized from the sale
      of
      the Shares the amount that corresponds to the Net Proceeds it is entitled to
      retain under Section 3.5 (not including the amounts that are required under
      Section 3.5 to be applied to reduce the outstanding amounts under the Note),
      (b)
      Boston Scientific will treat as its amount realized from the sale of Shares
      the
      amount that corresponds to the Net Proceeds it is entitled to receive under
      Section 3.5 and that is applied to reduce the outstanding amounts under the
      Note, and (c) both Abbott and Boston Scientific agree to treat the portion
      of
      the Net Proceeds that are applied to reduce the amounts outstanding under the
      Note pursuant to Section 3.5 as having been received by Boston Scientific in
      exchange for its residual interest in the Shares and then transferred to Abbott
      as payment of the amounts outstanding under the Note. The parties further agree
      not to take any Tax position that is inconsistent with the foregoing, provided,
      however, that Boston Scientific shall bear all costs of defending such Tax
      position on audit and in litigation.

     

    ARTICLE IV

     

    REGISTRATION
      RIGHTS

     

    Section 4.1  Definition
      of Registrable Stock.
      For
      purposes of this Agreement, “Registrable
      Stock”
means
      the Shares acquired by Abbott pursuant to Section 2.1 or 2.3 as to which the
      Registration Statement (as defined in Section 4.2) has not become effective
      prior to the Share Closing Date, and any securities issued or issuable with
      respect to such Shares by way of conversion, exchange, replacement, stock
      dividend, stock split or other distribution or in connection with a combination
      of shares, recapitalization, merger, consolidation or other reorganization
      or
      otherwise. Any Registrable Stock shall cease to be Registrable Stock when
      (i) a registration statement covering such Registrable Stock has been
      declared or automatically becomes effective and such Registrable Stock has
      been
      disposed of pursuant to such effective registration statement, (ii) such
      Registrable Stock is sold by a Person in a transaction in which the rights
      of
      Abbott under this Article IV are not assigned, or (iii) such Registrable
      Stock is sold pursuant to Rule 144(k) (or any similar provision then in
      force, but not Rule 144A) under the Securities Act of 1933, as amended (the
“Securities
      Act”)
      without registration under the Securities Act.

     

    Section 4.2  Registration
      Rights; Registration Procedures.
      (a)Boston
      Scientific shall (i) file with the Securities and Exchange Commission (the
      “SEC”)
      on or
      prior to 

     

    
      
        
        

      

      
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    the
      Share
      Closing Date an automatic shelf registration statement (as defined in Rule
      405
      of the Securities Act) on Form S-3 under the Securities Act (the “Registration
      Statement”)
      which
      in addition to other securities of Boston Scientific, shall include shares
      of
      Common Stock for the issuance of the Shares issuable by Boston Scientific to
      Abbott pursuant to this Agreement and (ii) prior to each of the Share Closing
      Date and the Interest Reimbursement Issuance Date, shall pay the required SEC
      filing fees relating the Shares issuable by Boston Scientific to Abbott pursuant
      to this Agreement on such dates, respectively, within the time required by
      Rule
      456(b)(1) under the Securities Act in accordance with Rules 456(b) and 457(r)
      under the Securities Act. To the extent such issuance of the Shares has not
      been
      registered pursuant to an effective Registration Statement on or prior to the
      Share Closing Date, Boston Scientific shall, as promptly as practicable on
      or
      following the Share Closing Date, file with the SEC a “shelf” registration
      statement on Form S-3 pursuant to Rule 415 under the Securities Act (including
      the Registration Statement, to the extent it is used as a resale shelf
      registration statement for the Shares, the “Shelf
      Registration”)
      with
      respect to the Shares issuable by Boston Scientific to Abbott pursuant to this
      Agreement, and thereafter shall (x) use its reasonable best efforts to (A)
      have
      the Shelf Registration declared effective (or take such steps to make it
      automatically effective) as soon as reasonably practicable thereafter, and
      (B)
      keep the Shelf Registration continuously effective from the date such Shelf
      Registration is declared effective until at least the second anniversary of
      such
      effective date (the “Effectiveness
      Period”)
      in
      order to permit the prospectus forming a part thereof to be usable by Abbott
      and
      its Affiliates during such period and (y) pay the required SEC filing fees
      relating to the Shares issuable by Boston Scientific to Abbott pursuant to
      this
      Agreement within the time required by Rule 456(b)(1) under the Securities Act
      in
      accordance with Rules 456(b) and 457(r) under the Securities Act. Boston
      Scientific shall use its reasonable best efforts to list the Shares issuable
      by
      Boston Scientific to Abbott pursuant to this Agreement on the New York Stock
      Exchange. 

     

    (b)  Notwithstanding
      anything to the contrary contained herein, Boston Scientific shall have the
      right to defer or delay filing the Shelf Registration for a period of not more
      than 60 days, or suspend sales under the Shelf Registration filed hereunder
      or
      defer the updating of such filed Shelf Registration during no more than two
      periods aggregating not more than 60 days, in the event that Boston Scientific
      furnishes to Abbott a certificate signed by an authorized officer of Boston
      Scientific stating that, in the good faith opinion of the Board of Directors
      of
      Boston Scientific, such filing, sale or update would interfere with any material
      transaction then being pursued by Boston Scientific or would otherwise require
      disclosure of any material event that Boston Scientific would not otherwise
      be
      required to disclose; provided,
      however,
      that
      Boston Scientific shall extend the Effectiveness Period by the number of days,
      if any, during with the registration rights contemplated hereunder are subject
      to a deferral or suspension as set forth in this Section 4.2(b); and
provided further
      that in
      the event of any such deferral or suspension set forth in this Section 4.2(b),
      the Monthly Sale Volume Limitation for each month during the period commencing
      on the end of such deferral or suspension and ending on the date on which the
      Monthly Sale Volume Limitation is terminated pursuant to Section 3.1 (such
      period, the “Post-Suspension
      Period”)
      (treating any partial month period and the next full month following the end
      of
      such deferral or suspension as one month) shall be increased proportionately
      so
      that the aggregate number of Shares which Abbott may sell during the
      Post-Suspension Period is equal to the number of Shares which Abbott otherwise
      would have been able to sell pursuant to Section 3.1 during the Post-Suspension
      Period and the period of such deferral or suspension had such deferral or
      suspension not occurred.

     

    
      
        
        

      

      
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    (c)  Subject
      to Section 4.2(b), if Boston Scientific files a Shelf Registration pursuant
      to
      Section 4.2(a), Boston Scientific shall, as promptly as
      practicable:

     

    (i)  supplement
      or amend the Shelf Registration and the prospectus used in connection therewith
      (A) as required by the registration form utilized by Boston Scientific or by
      the
      instructions applicable to such registration form or by the Securities Act,
      (B)
      as required for any given offering or to correct any untrue statement of a
      material fact or to remedy any omission of a material fact required to be stated
      therein or necessary to make the statements therein not misleading in light
      of
      the circumstances under which they were made and (C) to include in such Shelf
      Registration any additional securities that become Registrable Stock by
      operation of the definition thereof; 

     

    (ii)  notify
      Abbott (A) when the Shelf Registration or any amendment thereto has been
      filed or becomes effective, the prospectus or any amendment or supplement to
      the
      prospectus has been filed, (B) of any request by the SEC for amendments or
      supplements to the Shelf Registration or the prospectus or for additional
      information, (C) of the issuance by the SEC of any stop order or cease
      trade order suspending the effectiveness of the Shelf Registration or any order
      preventing or suspending the use of any preliminary prospectus or prospectus,
      including the receipt of any notice of objection by the SEC to the use of the
      Shelf Registration or any post-effective amendment thereto pursuant to Rule
      401(g)(2) under the Securities Act or the initiation or, to the extent known
      by
      Boston Scientific, threatening, of any proceedings for such purposes, and
      (D) of the receipt by Boston Scientific of any written notification with
      respect to the suspension of the qualification of the Registrable Stock for
      offering or sale in any jurisdiction or the initiation or threatening of any
      proceedings for such purposes;

     

    (iii)  use
      its
      reasonable best efforts to obtain the withdrawal of any stop order, cease trade
      order or other order suspending the use of any preliminary prospectus or
      prospectus or suspending any qualification of the Registrable Stock covered
      by
      the Shelf Registration or the resolution of any objection of the SEC pursuant
      to
      Rule 401(g)(2) and provide prompt notice to Abbott of such withdrawal or
      resolution;

     

    (iv)  furnish
      to Abbott such numbers of copies of the Shelf Registration and the prospectus
      included therein, including each preliminary prospectus and any amendments
      or
      supplements thereto in conformity with the requirements of the Securities Act,
      any exhibits filed therewith and such other documents and information as Abbott
      may reasonably request;

     

    (v)  use
      all
      reasonable best efforts to register or qualify the Registrable Stock covered
      by
      the Shelf Registration under such other securities or blue sky Laws of such
      jurisdiction within the United States as shall be reasonably appropriate for
      the
      distribution of the Registrable Stock covered by the Shelf Registration;
provided,
      however,
      that
      Boston Scientific shall not be required in connection therewith or as a
      condition thereto to qualify to do business in or to 

     

    
      
        
        

      

      
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    file
      a
      general consent to service of process in any jurisdiction wherein it would
      not
      but for the requirements of this paragraph 4.2(c)(v) be obligated to do so;
      and provided further,
      that
      Boston Scientific shall not be required to qualify such Registrable Stock in
      any
      jurisdiction in which the securities regulatory authority requires that Abbott
      or any of its Affiliates submit any Registrable Stock to the terms, provisions
      and restrictions of any escrow, lockup or similar agreement(s) for consent
      to
      sell Registrable Stock in such jurisdiction unless Abbott or such Affiliate
      agrees to do so;

     

    (vi)  promptly
      notify Abbott upon becoming aware of the happening of any event as a result
      of
      which the prospectus included in such Shelf Registration, as then in effect,
      includes an untrue statement of a material fact or omits to state any material
      fact required to be stated therein or necessary to make the statements therein
      not misleading in light of the circumstances under which they were made, and,
      at
      the request of Abbott, promptly prepare and furnish to Abbott (and file such
      supplement or amendment with the SEC if required) a reasonable number of copies
      of a supplement to or an amendment of such prospectus as may be necessary so
      that, as thereafter delivered to the purchasers of such securities, such
      prospectus shall not include an untrue statement of a material fact or omit
      to
      state a material fact required to be stated therein or necessary to make the
      statements therein not misleading in light of the circumstances under which
      they
      were made. In the event Boston Scientific shall give such notice, Boston
      Scientific shall extend the Effectiveness Period by the number of days during
      the period from and including the date of the giving of such notice to the
      date
      when Boston Scientific shall make available to Abbott such supplemented or
      amended prospectus; and

     

    (vii)  enter
      into customary agreements and take such other actions as are reasonably required
      in order to expedite or facilitate the disposition of the Registrable Stock
      to
      be so included in the Shelf Registration. Boston Scientific shall take any
      such
      other actions as are necessary to otherwise comply with all applicable rules
      and
      regulations of the SEC.

     

    (d)  It
      shall
      be a condition precedent to the obligations of Boston Scientific to take any
      action pursuant to this Section 4.2 that Abbott and its Affiliates shall furnish
      to Boston Scientific such information regarding themselves, the Registrable
      Stock held by them, and the intended method of disposition of such securities
      as
      Boston Scientific shall reasonably request and as shall be required in
      connection with the action to be taken by Boston Scientific
      hereunder.

     

    (e)  All
      expenses incurred in connection with the Registration Statement and Shelf
      Registration, if any, excluding underwriters’ discounts and commissions, but
      including all registration, filing and qualification fees (including SEC and
      New
      York Stock Exchange fees and expenses), word processing, duplicating, printers’
and accounting fees, listing fees, messenger and delivery expenses, all fees
      and
      expenses of complying with state securities or blue sky Laws and the fees and
      disbursements of counsel for Boston Scientific, shall be paid by Boston
      Scientific. Abbott shall bear and pay the underwriting commissions and discounts
      applicable to Registrable Stock offered for its account and the fees and
      disbursements of its counsel in connection with any registrations, filings
      and
      qualifications made pursuant to this Agreement.

     

    
      
        
        

      

      
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    (f)  Boston
      Scientific shall indemnify and hold harmless Abbott and its Affiliates, officers
      and directors against any losses, claims, damages or liabilities, joint or
      several, to which they may become subject under the Securities Act or otherwise,
      insofar as such losses, claims, damages or liabilities (or proceedings in
      respect thereof) arise out of or are based on any untrue or alleged untrue
      statement of any material fact contained in the Registration Statement or the
      Shelf Registration, as applicable, including any prospectus filed under
      Rule 424 under the Securities Act, any preliminary prospectus, any free
      writing prospectus (as defined in Rule 405 under the Securities Act) or any
      “issuer information” filed or required to be filed pursuant to Rule 433(d) under
      the Securities Act or any amendments or supplements thereto or arise out of
      or
      are based upon the omission or alleged omission to state therein a material
      fact
      required to be stated therein or necessary to make the statements therein not
      misleading, and shall reimburse Abbott and its Affiliates, officers and
      directors for any legal or other expenses reasonably incurred by them (but
      not
      in excess of expenses incurred in respect of one counsel for all of them (in
      addition to local counsel)) in connection with investigating or defending any
      such loss, claim, damage, liability or action; provided,
      however,
      that
      the indemnity agreement contained in this Section 4.2(f) shall not apply to
      amounts paid in settlement of any such loss, claim, damage, liability or action
      if such settlement is effected without the consent of Boston Scientific (which
      consent shall not be unreasonably withheld); provided,
      further,
      that
      Boston Scientific shall not be liable to Abbott or its Affiliates, officers
      or
      directors in any such case for any such loss, claim, damage, liability or action
      to the extent that it arises out of or is based upon an untrue statement or
      alleged untrue statement or omission or alleged omission made in connection
      with
      such Registration Statement, Shelf Registration, preliminary prospectus, final
      prospectus or amendments or supplements thereto, in reliance upon and in
      conformity with written information furnished to Boston Scientific or its
      representatives expressly for use in connection with such registration by Abbott
      or any of its Affiliates or representatives. 

     

    (g)  Abbott
      shall indemnify and hold harmless Boston Scientific, its Affiliates, officers
      and directors and each agent and any underwriter for Boston Scientific (within
      the meaning of the Securities Act) against any losses, claims, damages or
      liabilities, joint or several, to which Boston Scientific or any such Affiliate,
      officer, director, agent or underwriter may become subject, under the Securities
      Act or otherwise, insofar as such losses, claims, damages or liabilities (or
      proceedings in respect thereof) arise out of or are based upon any untrue
      statement or alleged untrue statement of any material fact contained in the
      Registration Statement or Shelf Registration, as applicable, including any
      prospectus filed under Rule 424 under the Securities Act, any preliminary
      prospectus, any free writing prospectus (as defined in Rule 405 under the
      Securities Act) or any “issuer information” filed or required to be filed
      pursuant to Rule 433(d) under the Securities Act or any amendments or
      supplements thereto or arise out of or are based upon the omission or alleged
      omission to state therein a material fact required to be stated therein or
      necessary to make the statements therein not misleading, in each case to the
      extent that such untrue statement or alleged untrue statement or omission or
      alleged omission was made in such Registration Statement, Shelf Registration,
      preliminary or final prospectus, or amendments or supplements thereto, in
      reliance upon and in conformity with written information furnished to Boston
      Scientific or its representatives by or on behalf of Abbott or any of its
      Affiliates expressly for use in connection with such registration; and Abbott
      shall reimburse any legal or other expenses reasonably incurred by Boston
      Scientific or any such Affiliate, officer, director, agent or underwriter in
      connection with investigating or defending any such loss, claim, damage,
      liability or action; provided,
      however,
      that
      the indemnity agreement contained in this

     

    
      
        
        

      

      
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     Section 4.2(g)
      shall not apply to amounts paid in settlement of any such loss, claim, damage,
      liability or action if such settlement is effected without the consent of Abbott
      (which consent shall not be unreasonably withheld). 

     

    (h)  Promptly
      after receipt by an indemnified party under Section 4.2(f) or (g), as
      applicable, of notice of the commencement of any action, such indemnified party
      shall, if a claim in respect thereof is to be made against any indemnifying
      party under Section 4.2(f) or (g), as applicable, notify the indemnifying party
      in writing of the commencement thereof, and the indemnifying party shall have
      the right to participate in and assume the defense thereof with counsel selected
      by the indemnifying party and reasonably satisfactory to the indemnified party
      (unless (i) such indemnified party reasonably objects to such assumption on
      the grounds that there may be defenses available to it which are different
      from
      or in addition to those available to such indemnifying party, (ii) the
      indemnifying party and such indemnified party shall have mutually agreed to
      the
      retention of such counsel or (iii) in the reasonable opinion of such
      indemnified party, representation of such indemnified party by the counsel
      retained by the indemnifying party would be inappropriate due to actual or
      potential differing interests between such indemnified party and any other
      party
      represented by such counsel in such proceeding, in which case the indemnified
      party shall be reimbursed by the indemnifying party for the reasonable expenses
      incurred in connection with retaining separate legal counsel); provided,
      however,
      that an
      indemnified party shall have the right to retain its own counsel, with all
      fees
      and expenses thereof to be paid by such indemnified party, and to be apprised
      of
      all progress in any proceeding the defense of which has been assumed by the
      indemnifying party, it being understood that the indemnifying party will control
      such defense. The failure to notify an indemnifying party promptly of the
      commencement of any such action shall not relieve the indemnifying party from
      any liability in respect of such action which it may have to such indemnified
      party on account of the indemnity contained in Section 4.2(f) or (g), as
      applicable, unless (and only to the extent) the indemnifying party was
      prejudiced by such failure, and in no event shall such failure relieve the
      indemnifying party from any other liability which it may have to such
      indemnified party. No indemnifying party shall, without the prior written
      consent of the indemnified party (which consent will not be unreasonably
      withheld), effect any settlement, compromise or discharge of any claim or
      pending or threatened proceeding in respect of which the indemnified party
      is or
      could have been a party and indemnity could have been sought hereunder by such
      indemnified party, unless such settlement, compromise or discharge includes
      an
      unconditional release of such indemnified party from all liability arising
      out
      of such claim or proceeding. 

     

    (i)  To
      the
      extent any indemnification by an indemnifying party is prohibited or limited
      by
      Law, the indemnifying party, in lieu of indemnifying such indemnified party,
      shall contribute to the amount paid or payable by such indemnified party as
      a
      result of such losses, claims, damages or liabilities in such proportion as
      is
      appropriate to reflect the relative fault of the indemnifying party and
      indemnified party in connection with the actions which resulted in such losses,
      claims, damages or liabilities, as well as any other relevant equitable
      considerations. The relative fault of such indemnifying party and indemnified
      party shall be determined by reference to, among other things, whether any
      action in question, including any untrue or alleged untrue statement of material
      fact or omission or alleged omission to state a material fact, has been made
      by,
      or relates to information supplied by, such indemnifying party or indemnified
      party, and the parties’ relative intent, knowledge, access to information and
      opportunity to 

     

    
      
        
        

      

      
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    correct
      or prevent such action. The amount paid or payable by a party as a result of
      the
      losses, claims, damages or liabilities referred to above shall be deemed to
      include any legal or other fees or expenses reasonably incurred by such party
      in
      connection with any investigation or proceeding. In no event shall the liability
      of any indemnifying party be greater in amount than the amount for which such
      indemnifying party would have been obligated to pay by way of indemnification
      if
      the indemnification provided for under Section 4.2(f) or (g) hereof had been
      available under the circumstances. The parties hereto agree that it would not
      be
      just and equitable if contribution pursuant to this Section 4.2(i) were
      determined by pro rata allocation or by any other method of allocation which
      does not take account of the equitable considerations referred to in this
      Section 4.2(i). No person guilty of fraudulent misrepresentation (within the
      meaning of Section 11(f) of the Securities Act) shall be entitled to
      contribution from any person who was not guilty of such fraudulent
      misrepresentation.

     

    (j)  The
      indemnification provided in this Agreement will remain in full force and effect
      regardless of any investigation made by or on behalf of the indemnified party
      or
      any officer, director or Affiliate of such indemnified party and will survive
      the Transfer of the securities.

     

    (k)  The
      obligations in Sections 4.2(f) through (i) shall be in addition to any liability
      that any party may otherwise have to any party.

     

    Section 4.3  Rule
      144 Sales.
      If the
      issuance of the Shares has not been registered pursuant to an effective
      Registration Statement on or prior to the Share Closing, then, following the
      expiration of the Effectiveness Period of the Shelf Registration, Boston
      Scientific shall (a) timely file with the SEC all reports and other filings
      required under the Exchange Act for Abbott or its Affiliates to sell Shares
      pursuant to Rule 144 or any similar rule or regulation hereafter adopted by
      the
      SEC, and (b) take such further action and shall offer all reasonable and
      necessary assistance including, without limitation, the delivery of a legal
      opinion letter and instructions to Boston Scientific’s stock transfer agent to
      enable the sale by Abbott or its Affiliates of Registrable Stock pursuant to
      said Rule 144 or any similar rule or regulation.

     

    ARTICLE V

     

    REPRESENTATIONS,
      WARRANTIES AND AGREEMENTS OF BOSTON
      SCIENTIFIC

     

    Boston
      Scientific hereby represents and warrants to Abbott as follows:

     

    (a)  Boston
      Scientific is a corporation duly incorporated, validly existing and in good
      standing under the Laws of the State of Delaware.

     

    (b)  Boston
      Scientific has all requisite corporate power and authority to execute and
      deliver this Agreement and to perform its obligations hereunder and to
      consummate the transactions contemplated hereby. The execution and delivery
      by
      Boston Scientific of this Agreement, the performance by Boston Scientific of
      its
      obligations hereunder and the consummation by Boston Scientific of the
      transactions contemplated hereby have been duly and validly authorized by all
      necessary corporate proceedings on the part of Boston Scientific and no other
      corporate action on the part of Boston Scientific is necessary for the
      execution, delivery 

     

    
      
        
        

      

      
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    and
      performance by Boston Scientific of this Agreement and the consummation by
      Boston Scientific of the transactions contemplated hereby. This Agreement has
      been duly executed and delivered by Boston Scientific, and assuming the due
      authorization, execution and delivery hereof by Abbott, constitutes a legal,
      valid and binding obligation of Boston Scientific, enforceable against it in
      accordance with its terms except to the extent that its enforceability may
      be
      limited by bankruptcy, insolvency, reorganization, moratorium or other laws
      relating to or affecting creditors’ rights generally and by general equity
      principles.

     

    (c)  (i)
      At
      the time of filing the Registration Statement (or the Shelf Registration, to
      the
      extent an automatic shelf registration statement (as defined in Rule 405 of
      the
      Securities Act)), (ii) at the time of the most recent amendment thereto for
      the
      purposes of complying with Section 10(a)(3) of the Securities Act (whether
      such
      amendment was by post-effective amendment, incorporated report filed pursuant
      to
      Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended (the
      “Exchange
      Act”)
      or
      form of prospectus), and (iii) at the time Boston Scientific or any person
      acting on its behalf (within the meaning, for this clause only, of Rule 163(c)
      under the Securities Act) made any offer relating to the Shares in reliance
      on
      the exemption of Rule 163 under the Securities Act, Boston Scientific was,
      or is
      (as the case may be), a “well-known seasoned issuer” as defined in Rule 405
      under the Securities Act; and (B) at the earliest time after the filing of
      the
      Registration Statement (or the Shelf Registration, to the extent an automatic
      shelf registration statement (as defined in Rule 405 of the Securities Act))
      that Boston Scientific or another offering participant made a bona fide offer
      (within the meaning of Rule 164(h)(2) under the Securities Act) of the Shares,
      Boston Scientific was not an “ineligible issuer” as defined in Rule 405 under
      the Securities Act.

     

    (d)  All
      Shares issued pursuant to Sections 2.1 and 2.3 shall, when issued, be validly
      issued, fully paid and nonassessable, and shall be free and clear of any liens,
      claims, charges and encumbrances other than those imposed as a result of any
      action by Abbott or any of its Affiliates.

     

    ARTICLE VI

     

    REPRESENTATIONS,
      WARRANTIES AND AGREEMENTS OF ABBOTT

     

    Abbott
      hereby represents and warrants to Boston Scientific as follows:

     

    (a)  Abbott
      is
      a corporation duly incorporated, validly existing and in good standing under
      the
      Laws of the State of Illinois.

     

    (b)  Abbott
      has all requisite corporate power and authority to execute and deliver this
      Agreement and to perform its obligations hereunder and to consummate the
      transactions contemplated hereby. The execution and delivery by Abbott of this
      Agreement, the performance by Abbott of its obligations hereunder and the
      consummation by Abbott of the transactions contemplated hereby have been duly
      and validly authorized by all necessary corporate proceedings on the part of
      Abbott and no other corporate action on the part of Abbott is necessary for
      the
      execution, delivery and performance by Abbott of this Agreement and the
      consummation by Abbott of the transactions contemplated hereby. This Agreement
      has been duly executed and delivered by Abbott, and assuming the due
      authorization, execution and 

     

    
      
        
        

      

      
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    delivery
      hereof by Boston Scientific, constitutes a legal, valid and binding obligation
      of Abbott, enforceable against it in accordance with its terms except to the
      extent that its enforceability may be limited by bankruptcy, insolvency,
      reorganization, moratorium or other laws relating to or affecting creditors’
rights generally and by general equity principles. 

     

    ARTICLE VII

     

    MISCELLANEOUS

     

    Section 7.1  Acknowledgement.
      The
      parties hereby acknowledge that this Agreement is being entered into by the
      parties pursuant to Article VI of the Transaction Agreement. The parties further
      acknowledge and agree that the entry of the parties hereto into this Agreement
      shall in no way affect the effectiveness of the Transaction Agreement and the
      Transaction Agreement shall remain in full force and effect pursuant to the
      terms thereof; provided,
      however,
      that to
      the extent that any of the provisions of this Agreement conflict with any
      provisions of the Transaction Agreement, the provisions herein shall
      control.

     

    Section 7.2  No
      Inconsistent Agreements.
      Boston
      Scientific will not hereafter enter into any agreement with respect to its
      securities that would materially impede the rights granted to Abbott in this
      Agreement.

     

    Section 7.3  Recapitalization,
      Exchanges, etc.
      In the
      event that any capital stock or other securities issued in respect of, in
      exchange for, or in substitution of, any Shares by reason of any reorganization,
      recapitalization, reclassification, merger, consolidation, spin-off, partial
      or
      complete liquidation, stock dividend, split-up, sale of assets, distribution
      to
      stockholders or combination of the Shares or any other change in capital
      structure of Boston Scientific, appropriate adjustments shall be made with
      respect to the relevant provisions of this Agreement so as to fairly and
      equitably preserve, as far as practicable, the original rights and obligations
      of the parties hereto under this Agreement, and the term “Shares,” as used
      herein, shall be deemed to include shares of such capital stock or other
      securities, as appropriate.

     

    Section 7.4  Expenses.
      Except
      as otherwise specified in this Agreement, all costs and expenses, including
      fees
      and disbursements of counsel, incurred in connection with this Agreement and
      the
      transactions contemplated hereby shall be borne by the party incurring such
      costs and expenses, whether or not the Share Closing shall have
      occurred.

    

    Section 7.5  Notices.
      All
      notices, requests, claims, demands and other communications hereunder shall
      be
      in writing and shall be given or made (and shall be deemed to have been duly
      given or made upon receipt) by delivery in person, by an internationally
      recognized overnight courier service, by facsimile, by e-mail or by registered
      or certified mail (postage prepaid, return receipt requested) to the respective
      parties hereto at the following addresses (or at such other address for a party
      as shall be specified in a notice given in accordance with this
      Section 7.5):

    

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    (i)  if
      to
      Abbott:

    

    Abbott
      Laboratories

    Dept.
      0392, Bldg. AP6D 

    100
      Abbott Park Road

    Abbott
      Park, Illinois 60064-3500

    Fax:
      (847)
      935-8207

    Attention:
      Chief Operating Officer, Medical Products Group

    

    with
      a
      copy to:

    

    Abbott
      Laboratories

    Dept.
      364, Bldg. AP6D

    100
      Abbott Park Road

    Abbott
      Park, Illinois 60064-6020 USA

    Fax:
      (847) 938-6277

    Attention:
      General Counsel

    

    and

    

    Abbott
      Laboratories

    Dept.
      312, Bldg. AP6D

    100
      Abbott Park Road 

    Abbott
      Park, Illinois 60064-6028 USA

    Fax:
      (847) 938-6307

    Attention:
      Treasurer

    

    and
      a
      copy to:

    

    Simpson
      Thacher & Bartlett LLP

    425
      Lexington Avenue

    New
      York,
      NY 10017-3903

    Fax:
      (212)
      455-2502

    Attention:
      Charles I. Cogut

       
      William E. Curbow

    

    (ii)  if
      to
      Boston Scientific:

    

    Boston
      Scientific Corporation

    One
      Boston Scientific Place

    Natick,
      Massachusetts 01760

    Fax:
      (508)
      650-8960

    Attention:
      General Counsel

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    

    with
      a
      copy to:

    

    Shearman
      & Sterling LLP

    599
      Lexington Avenue

    New
      York,
      NY 10022-6069

    Fax:
      (212)
      848-7179

    Attention:
      Peter D. Lyons

       
      Clare O’Brien

    

    Section 7.6  Public
      Announcements.
      Each
      party to this Agreement shall consult with the other party before issuing,
      and
      shall provide the other party the opportunity to review and comment upon, any
      press release or other public announcement in respect of this Agreement or
      the
      transactions contemplated hereby and shall not issue any press release or other
      public statements or otherwise communicate with any news media regarding this
      Agreement and/or the transactions contemplated hereby without the consultation
      and prior written consent of the other party unless otherwise required by Law
      or
      applicable stock exchange regulation and then only with such advance notice
      to
      and consultation with the other party as is practical. The parties to this
      Agreement shall cooperate as to the timing and contents of any such press
      release, public announcement or communication. Notwithstanding
      the foregoing, neither party shall have any obligation to consult with the
      other
      party or provide the other party with an opportunity to review and comment
      upon
      any press release or other public announcement announcing a termination of
      this
      Agreement, and such party may issue such press release or public announcement
      or
      otherwise communicate with any news media regarding such termination without
      the
      consent of the other party; provided, however, that the non-terminating party
      shall have received advance written notice of the other party’s intention to
      terminate this Agreement. 

    

    Section 7.7  Term;
      Termination.
      This
      Agreement shall terminate in full on the earlier of (i) the fifth anniversary
      of
      the date hereof; or (ii) that time when Abbott ceases to beneficially own any
      Shares purchased pursuant to this Agreement (or other securities issued in
      substitution or exchange therefor pursuant to Section 7.3). This Agreement
      will
      also terminate at any time prior to the Share Closing:

     

    (a)  by
      mutual
      written consent of Boston Scientific and Abbott;

     

    (b)  by
      either
      Boston Scientific or Abbott, if the Share Closing shall not have occurred by
      September 30, 2006; provided,
      however,
      that
      the right to terminate this Agreement under this Section 7.7(b) shall not be
      available to any party whose failure to fulfill any obligation under this
      Agreement shall have been the cause of, or shall have resulted in the failure
      of
      the Share Closing to occurring prior to such date;

     

    (c)  by
      either
      Boston Scientific or Abbott in the event that any Governmental Order
      restraining, enjoining or otherwise prohibiting the transactions contemplated
      by
      this Agreement and/or the Purchase Agreement shall have become final and
      non-appealable; or

     

    (d)  immediately,
      without any action by either Boston Scientific or Abbott, upon any termination
      of the Merger Agreement.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    Notwithstanding
      the foregoing, any termination pursuant to this Section 7.6 will not relieve
      any
      party for any liability arising from a breach of representation, warranty,
      covenant or agreement in this Agreement occurring prior to such
      termination.

     

    Section 7.8  Severability.
      If any
      term or other provision of this Agreement is invalid, illegal or incapable
      of
      being enforced by any Law or public policy, all other terms and provisions
      of
      this Agreement shall nevertheless remain in full force and effect for so long
      as
      the economic or legal substance of the transactions contemplated by this
      Agreement is not affected in any manner materially adverse to either party
      hereto. Upon such determination that any term or other provision is invalid,
      illegal or incapable of being enforced, the parties hereto shall negotiate
      in
      good faith to modify this Agreement so as to effect the original intent of
      the
      parties as closely as possible in an acceptable manner in order that the
      transactions contemplated by this Agreement are consummated as originally
      contemplated to the greatest extent possible.

    

    Section 7.9  Entire
      Agreement.
      This
      Agreement, the Transaction Agreement and the Purchase Agreement constitute
      the
      entire agreement of the parties hereto with respect to the subject matter hereof
      and thereof and supersede all prior agreements and undertakings, both written
      and oral, between Boston Scientific and Abbott with respect to the subject
      matter hereof and thereof.

    

    Section 7.10  Assignment.
      This
      Agreement may not be assigned without the express written consent of Boston
      Scientific and Abbott (which consent may be granted or withheld in the sole
      discretion of Boston Scientific or Abbott), as the case may be; provided,
      however,
      that
      Abbott may, without the consent of Boston Scientific, assign its rights and
      obligations, in whole or in part, under this Agreement to one or more of its
      controlled Affiliates, except that no such assignment shall relieve Abbott
      from
      the performance of its obligations hereunder. Any purported assignment in
      contravention of this provision shall be null and void.

    

    Section 7.11  Amendment.
      This
      Agreement may not be amended or modified except (a) by an instrument in
      writing signed by, or on behalf of, Boston Scientific and Abbott or (b) by
      a waiver in accordance with Section 7.12.

    

    Section 7.12  Waiver.
      Each
      party to this Agreement may (a) extend the time for the performance of any
      of the obligations or other acts of the other party, (b) waive any
      inaccuracies in the representations and warranties of the other party contained
      herein or (c) to the extent permitted by applicable Law, waive compliance
      with any of the agreements of the other party or conditions to such party’s
      obligations contained herein. Any such extension or waiver shall be valid only
      if set forth in an instrument in writing signed by the party to be bound
      thereby. Any waiver of any term or condition shall not be construed as a waiver
      of any subsequent breach or a subsequent waiver of the same term or condition,
      or a waiver of any other term or condition of this Agreement. The failure of
      either party hereto to assert any of its rights hereunder shall not constitute
      a
      waiver of any of such rights.

    

    Section 7.13  No
      Third Party Beneficiaries.
      This
      Agreement shall be binding upon and inure solely to the benefit of the parties
      hereto and their respective successors and permitted assigns and nothing herein
      is intended to or shall confer upon any other Person any legal 

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    or
      equitable right, benefit or remedy of any nature whatsoever, including any
      rights of employment for any specified period, under or by reason of this
      Agreement.

    

    Section 7.14  Other
      Remedies; Specific Performance.
      Except
      as otherwise provided herein, any and all remedies herein expressly conferred
      upon a party will be deemed cumulative with and not exclusive of any other
      remedy conferred hereby, or by Law or equity upon such party, and the exercise
      by a party of any one remedy will not preclude the exercise of any other remedy.
      The parties hereto agree that irreparable damage would occur in the event that
      any provision of this Agreement is not performed in accordance with its specific
      terms or is otherwise breached. It is accordingly agreed that the parties shall
      be entitled to seek an injunction or injunctions to prevent breaches of this
      Agreement and to enforce specifically the terms and provisions hereof in any
      court of the United States or any state having jurisdiction, this being in
      addition to any other remedy to which they are entitled at Law or in
      equity.

    

    Section 7.15  Interpretive
      Rules.
      The
      words “hereof,” “herein” and “hereunder” and words of similar import when used
      in this Agreement refer to this Agreement as a whole and not to any particular
      provision of this Agreement, and all Article and Section references are to
      this
      Agreement unless otherwise specified. The words “include,” “includes” and
“including” will be deemed to be followed by the phrase “without limitation.”
The table of contents and headings contained in this Agreement are for reference
      purposes only and shall not affect in any way the meaning or interpretation
      of
      this Agreement. No provision of this Agreement shall be construed to require
      either party or their respective officers, directors, subsidiaries or Affiliates
      to take any action which would violate or conflict with any applicable Law.
      The
      word “if” means “if and only if.” The word “or” shall not be exclusive. The
      meanings given to terms defined herein will be equally applicable to both the
      singular and plural forms of such terms. Whenever the context may require,
      any
      pronoun includes the corresponding masculine, feminine and neuter forms. Except
      as otherwise expressly provided herein, all references to “$” will be deemed
      references to the lawful money of the United States of America. 

    

    Section 7.16  Governing
      Law.
      This
      Agreement shall be governed by, and construed in accordance with, the laws
      of
      the State of New York. All Actions arising out of or relating to this Agreement
      shall be heard and determined exclusively in any New York federal court sitting
      in the Borough of Manhattan of The City of New York; provided, however, that
      if
      such federal court does not have jurisdiction over such Action, such Action
      shall be heard and determined exclusively in any New York state court sitting
      in
      the Borough of Manhattan of The City of New York. Consistent with the preceding
      sentence, the parties hereto hereby (a) submit to the exclusive jurisdiction
      of
      any federal or state 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 either party hereto 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. Each party further irrevocably consents to the service
      of
      process out of any of the aforementioned courts in any such Action by the
      mailing of copies thereof by mail to such party at its address set forth in
      this

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    Agreement,
      such service of process to be effective upon acknowledgment of receipt by
      registered mail; provided, however, that nothing in this Section 7.16 shall
      affect the right of any party to serve legal process in any other manner
      permitted by law. The consent to jurisdiction set forth in this Section 7.16
      shall not constitute a general consent to service of process in the State of
      New
      York and shall have no effect for any purpose except as provided in this Section
      7.16.

    

    Section 7.17  Waiver
      of Jury Trial.
      EACH OF
      THE PARTIES HERETO 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 HERETO HEREBY (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY
      OF
      THE OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY
      WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER,
      AND
      (B) ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND
      THE
      TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, AS APPLICABLE, BY, AMONG OTHER
      THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 7.17.

    

    Section 7.18  Counterparts.
      This
      Agreement may be executed and delivered (including by facsimile transmission)
      in
      one or more counterparts, and by the different parties hereto in separate
      counterparts, each of which when executed shall be deemed to be an original,
      but
      all of which taken together shall constitute one and the same
      agreement.

    

    [remainder
      of page intentionally left blank]

     

    

     

    

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, this Agreement has been signed by or on behalf of each of
      the
      parties as of the day first above written.

     

    
      	 	 	 
	 	BOSTON
              SCIENTIFIC
              CORPORATION 
	 
 	 
 	 
 
	 	By:  	/s/  Lawrence
              C. Best
	 	
              
Name:
 Lawrence
              C. Best
	 	Title:    Executive
              Vice President and Chief Financial
              Officer

    

    
       

      
        	 	 	 
	 	ABBOTT
                LABORATORIES  
	 
 	 
 	 
 
	 	By:  	/s/  Thomas
                C. Freyman
	 	
                

                Name:
                   Thomas
                  C. Freyman

              
	 	Title:  
                  Executive
                Vice President, Finance and  Chief
                Financial Officer

      

       

    

    

    

     

    

    

    

    
      
        
        

      

      
        23

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