Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Clyvia Inc. - Exhibit 10.7

-1-

MANAGEMENT SERVICES AGREEMENT

THIS AGREEMENT dated effective as of the 30th day of June,
  2005.

	BETWEEN: 	WALTER P.W. NOTTER, of 

        P.O. Box 157, Muhlebackstrasse 27 

        Thalwil, Switzerland CH-8800

      (hereinafter called the ”Manager”)

OF THE FIRST PART

	AND: 	RAPA MINING INC., a company incorporated under
        the laws 

        of the State of Nevada

      (hereinafter called the “Company”)

OF THE SECOND PART

WHEREAS:

	A. 	The Manager has business and management expertise;
      

	 	 
	B. 	The Company requires management services and wishes
        the Manager to provide same to the Company. 

NOW THEREFORE THE PARTIES HAVE AGREED and do hereby
agree as follows:

	1. 	The Manager hereby agrees to provide its services
        and to act as the as a director of, and as the Chief Executive Officer
        and President of the Company and to carry out management and direction
        of the business of the Company, including managing and supervising and
        coordinating the business activities carried out by the Company (the “Management
        Services”). 

	 	 
	2. 	In consideration of the Manager providing all the
        Management Services to the Company, the Company agrees to pay to the Manager
        a consulting fee in the amount of €5,000.00 (EURO – net –
        exclusive Tax, VAT, etc.), per month payable on the 1st day
        of each month (the “Consulting Fee”) from July 1st 2005
        until December 31st 2005. 

	 	 
		The amount for the time after January 1st 2006
        will be negotiated in December 2005. If than no new amount can be agreed,
        the amount of €5,000.00 will be paid on until the end of the contract
        or a new amount is agreed. 

	 	 
	3. 	In addition to the payment of the Consulting Fee,
        the Company agrees to reimburse the Manager for any properly receipted
        expenses directly attributable to performing its obligations to the Company
        pursuant to this Agreement (the “Reimbursable Expenses”). 

	 	 
	4. 	The Company further agrees that, in addition to the
        payment of the Consulting Fee and the reimbursement of the Reimbursable
        Expenses, the Manager will be granted options to purchase 250,000 shares
        of the Company’s common stock pursuant to the Company’s 2005
        Stock Option Plan at an exercise price of $1.05 per share for a period
        of five (5) years from the date of issuance. 

	 	 
	5. 	It is agreed that the Management Services to be provided
        by the Manager to the Company will account for approximately 10% of the
        Manager’s monthly business time. The Manager will not be restricted
        from participating in other business activities that do not conflict with
        his duties and obligations to the Company under this Agreement. 

-2-

	6. 	The Manager covenants and agrees with the
        Company to at all times use his best efforts to advance the interests
        of the Company and to faithfully, industriously and, to the best of his
        abilities, perform the Management Services and the Manager further covenants
        and agrees with the Company that it will no engage in any activities that
        would bring the Company’s reputation into disrepute. 

	 	 	 
	7. 	The Manager represents and warrants to
        the Company as follows and acknowledges that the Company is relying upon
        these representations and warranties in entering into this Agreement:
      

	 	 	 
		(a) 
	the Manager has the necessary expertise to effectively
        provide the Management Services; 

	 	 	 
		(b) 
	the Manager is not aware of any fact or matter which
        would prevent the Manager from carrying out his duties and obligations
        pursuant to this Agreement; 

	 	 	 
		(c) 
	No bankruptcy petitions have been filed within the
        last five years by or against any business of which the Manager was a
        general partner or executive officer either at the time of the bankruptcy
        or within two years prior to that time; 

	 	 	 
		(d) 
	Within the past five years, the Manager has not been
        convicted in any criminal proceeding or been the subject of any pending
        criminal proceeding (excluding traffic violations and other minor offenses);
      

	 	 	 
		(e) 
	Within the past five years, the Manager has not been
        subject to any order, judgment, or decree, not subsequently reversed,
        suspended or vacated, of any court of competent jurisdiction, permanently
        or temporarily enjoining, barring, suspending or otherwise limiting his
        involvement in any type of business, securities or banking activities;
        and 

	 	 	 
		(f) 
	Within the past five years, the Manager has not been
        found by a court of competent jurisdiction (in a civil action) or any
        securities regulatory body to have violated any federal or state securities
        or commodities laws. 

	 	 	 
	8. 	The Manager acknowledges and agrees with
        the Company that he will at all times be an independent contractor and
        shall not at any time be or be deemed to be an employee of the Company.
      

	 	 	 
	9. 	This Agreement shall be for a term of one
        (1) year commencing on the date first written above and ending on July
        1st 2006 (the “Termination Date”). 

	 	 	 
	10. 	Notwithstanding Section 5 of this Agreement,
        unless the Company provides the Manager or conversely with written notice
        of its intention not to extend this Agreement at least ninety (90) days
        prior to the Termination Date, the term of this Agreement shall automatically
        extend for an additional one (1) year period commencing on the Termination
        Date, and shall automatically extend for such further one (1) year periods
        beginning on the anniversary of the Termination Date (the “Anniversary
        Date”) unless the Company provides the Manager with written notice
        of its intention not to extend this Agreement at least ninety (90) days
        prior to the Anniversary Date. 

	 	 	 
	11. 	No amendment or termination of this Agreement
        shall be valid unless it is in writing and executed by both parties. 

	 	 	 
	12. 	Time shall be of the essence of this Agreement.
      

IN WITNESS WHEREOF the parties hereto have executed this
Agreement as of the day and year first above written.

 

	/s/ Walter P.W.
      Notter 	 
	Walter P.W. Notter 	 

-3-

	RAPA MINING INC. 	 
	by its authorized signatory 	 
	 	 
	 	 
	/s/ Walter P.W.
      Notter 	 
	Signature of
      Authorized Signatory 	 
	 	 
	 	 
	Walter P.W. NotterFiled by Automated Filing Services Inc. (604) 609-0244 - Clyvia Inc. - Exhibit 10.8

AMENDMENT 
TO MANAGEMENT SERVICES AGREEMENT

WHEREAS the undersigned have entered into a management
services agreement dated effective as of the 30th day of June, 2005
(the “Management Services Agreement”) and now wish to amend the terms of the
Management Services Agreement in the manner set out below,

For good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, THE PARTIES HEREBY AGREE AS
FOLLOWS:

	1. 	that the Management Services Agreement
        be amended by deleting Section 4 in its entirety and be replaced with
        the following: 

	 	 	 
		4. 
	The Company further agrees that, in addition to
        the payment of the Consulting Fee and the reimbursement of the Reimbursable
        Expenses, the Manager will be granted options to purchase 250,000 shares
        of the Company’s common stock pursuant to the Company’s 2005
        Stock Option Plan at an exercise price of $1.09 per share for a period
        of five (5) years from the date of issuance. 

	 	 	 
	2. 	This Amendment Agreement may be executed
        in counterparts which together shall form one and the same instrument.
      

IN WITNESS WHEREOF the parties hereto have executed this
Amendment Agreement as of the 11th day of July, 2005.

	RAPA MINING INC. 	 	WALTER P.W. NOTTER 
	a Nevada corporation by its 	 	  
	authorized signatory: 	 	/s/
      Walter P.W. Notter 
	  	 	Signature 
	/s/ Walter P.W. Notter 	 	
	Signature of Authorized Signatory 	 	  
	  	 	  
	      Walter P.W. Notter	 	  
	Name of Authorized Signatory 	 	  
	  	 	  
	      Director and
    	 	  
	      Chief Executive Officer	 	  
	Position of Authorized SignatoryWWW.EXFILE.COM, INC. -- 13847 -- BOSTON SCIENTIFIC CORP. -- EXHIBIT 10.1 TO FORM 8-K

    EXHIBIT
      10.1

    FOR
      SETTLEMENT PURPOSES ONLY

     

    SETTLEMENT
      AGREEMENT

     

    This
      Settlement Agreement (the “Agreement”) is made and entered into effective
      September 21, 2005 (the “Effective Date”), by and among, Medinol Ltd.
      (“Medinol”), Jacob Richter and Judith Richter (together with Medinol, the
“Medinol Parties”), Boston Scientific
      Corporation (“BSC”), Boston Scientific Limited (“BSL”, formerly known as Boston
      Scientific Ireland Limited), and Boston Scientific SciMed, Inc. (“BSSI”) (each a
“Party”, and collectively the “Parties”).

     

    WHEREAS,
      the Parties are the principal parties, in various combinations, to the following
      actions (the “Actions”):

     

    -
      U.S.:

     

    Medinol
      Ltd. v. Boston Scientific Corporation, Docket No. 01 CIV. 2881 (AKH), filed
      April 5, 2001 in the United States District Court for the Southern District
      of
      New York (the “U.S. Action”); 

     

    Opposition
      No. 91157660 filed by Medinol Ltd. Against the SENTINOL Trademark (Application
      No. 78/182,164) filed by Scimed Life Systems, Inc.

     

    -
      Israel:

     

    Boston
      Scientific Corporation and Boston Scientific Limited v. Dr. Jacob Richter,
      Dr.
      Judith Richter, Medinol Ltd. and Zuli Holdings, Civil Docket No. 3279/01, filed
      June 11, 2001 in the District Court of Jerusalem; 

     

    -
      Netherlands: 

     

    
      
         

      

      
        -1-

        
          

        

      

      
         

      

       

    

    Medinol
      Limited v. Boston Scientific International B.V., Boston Scientific B.V, Boston
      Scientific Benelux B.V., Boston Scientific Benelux S.A., Boston Scientific
      Ltd.,
      Boston Scientific Ireland Ltd., Boston Scientific Namic, Boston Scientific
      Cork
      Ltd., Boston Scientific A.G., Boston Scientific Gesellschaft M.B.H. Boston
      Scientific Scandinavia A.S., Boston Scientific Nordic A.B., Boston Scientific
      Iberica, S.A. Boston Scientific International, S.A. Boston Scientific Iberica,
      and Boston Scientific S.p.A. (EP 0 762 856 B1, EP 0 846 449
      B1, EP 0 846 450 B1, EP 0 846 52 B1), Original
      Cause
      List 2003/477 filed 1/17/03, Appeal 2004/0223 filed 2/3/2004, Dispute
      re
      Press releases KG 04/26 filed 1/08/04, Appeal 2004/0375;

     

    Medinol
      Limited v. Boston Scientific International B.V., Boston Scientific B.V, Boston
      Scientific Benelux B.V., Boston Scientific Benelux S.A., Boston Scientific
      Ltd.,
      Boston Scientific Ireland Ltd., Boston Scientific Namic, Boston Scientific
      Cork
      Ltd., Boston Scientific A.G., Boston Scientific Gesellschaft M.B.H. Boston
      Scientific Scandanavia A.S., Boston Scientific Nordic A.B., Boston Scientific
      Iberica, S.A. Boston Scientific International, S.A. Boston Scientific Iberica,
      and Boston Scientific S.p.A., Kort Geding Action (EP 0 846 450 B1), Original
      Complaint KG04/689 filed 6/9/04, Appeal 2004/1625A filed 9/1/04;

     

    -
      Other
      Europe:

     

    Medinol
      Ltd. v. Boston Scientific Medizintechnik GmbH and Mr. Michel Darnaud, Original
      Complaint 4b O 119/02 (DE 201 09 764) filed 4/19/02; 

     

    Medinol
      Ltd. v. Boston Scientific Medizintechnik GmbH and Mr. Michel Darnaud, Original
      Complaint 4 O 120/02 (DE 295 21 206) filed 4/19/02, BSC Appeal 1-2 U 73/03,
      Coercive measures proceeding 4b O 120/02 ZV, Related damages case 4b O

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

       

    

    46/04,
      Related injunction proceeding file 4b O 177/04 UM 4/30/04, Imposition of
      contempt sanctions 4b O 120/02 ZVII, Appeal 2W 37/04.

     

    Medinol
      Ltd. v. Boston Scientific Medizintechnik GmbH and Mr. Michel Darnaud, Original
      Complaint 4 O 297/02 (EP 0 846 450) filed 4/19/02, Medinol Appeal 1-2 U
      68/03;

     

    Medinol
      Ltd. v. Boston Scientific Medizintechnik GmbH and Mr. Michel Darnaud, Original
      Complaint 4 O 298/02 (EP 0 846 449) filed 4/19/02, Medinol Appeal 1-2 U
      69/03;

     

    Medinol
      Ltd. v. Boston Scientific Medizintechnik GmbH and Mr. Michel Darnaud, Original
      Complaint 4 O 299/02 (EP 0 846 452) filed 4/19/02;

     

    Medinol
      Ltd. v. Boston Scientific Medizintechnik GmbH and Mr. Michel Darnaud, Original
      Complaint 4b O 469/04 (DE 195 49 477 B4) filed 4/19/02, New Action based on
      Extension of Complaint, filed 12/6/04.

     

    Medinol
      Ltd. v. Boston Scientific Medizintechnik GmbH and Mr. Michel Darnaud, Original
      Complaint 4O 300/02 (DE 201 08 765) filed 4/19/02;

     

    Medinol
      Ltd. v. Boston Scientific Limited, Cordis Medizinische Apparate GmbH and Cordis
      Europa N.V., Original Complaint 4b O 89/00 (DE 295 21 206) filed 3/30/00 by
      Boston Scientific Ltd. (Licensee) v. Cordis Medizinische Apparate GmbH and
      Cordis Europa N.V., Cordis Appeal 2 U 91/01, Medinol’s Interpleader Summons 4b O
      398/04 filed 10/19/04;

     

    SciMed
      Life Systems Inc., Cordis Medizinische Apparate GmbH, Janssen Pharmaceutica
      N.V.
      (Intervener), BVBA Cordis Holding Belgium (Intervener) v. Medinol Ltd.,
      Opposition Proceeding (EP 0 846 450 B1), Appeal T0 705/04-322;

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

       

    

    Cordis
      Medizinische Apparate GmbH and Boston Scientific Medizintechnik GmbH v. Medinol
      Ltd., Opposition Proceeding (EP 0 846 449 B1);

     

    Edward
      J.
      Tomlinson, Cordis Medizinische Apparate GmbH, Boston Scientific Medizintechnik
      GmbH, and Janssen Pharmaceutica N.V. (Intervener) v. Medinol Ltd., Opposition
      Proceeding (EP 0 846 452 B1);

     

    Terumo
      Kabushiki Kaisha and SciMed Life Systems, Inc. v. Medinol Ltd., Opposition
      Proceeding (EP 0 828 461 B1);

     

    Cordis
      Medizinische Apparate GmbH, Boston Scientific Medizintechnik GmbH (Intervener)
      v. Medinol Ltd., Cancellation Proceedings (DE 295 21 206), Lö I 165/01, Appeal
      5W 401/04;

     

    Boston
      Scientific Medizintechnik GmbH v. Medinol Ltd., Cancellation Proceeding (DE
      201
      08 764 U1) Lö I 10/03 filed 1/10/03;

     

    Boston
      Scientific Medizintechnik GmbH v. Medinol Ltd., Cancellation Proceeding, (DE
      201
      08 765 U1) Lö I 9/03 filed 1/10/03; and

     

    -
      Japan -

     

    Terumo
      Kabushiki Kaisha and Boston Scientific Japan K.K. v. Medinol Ltd. (JP
      3,236,623), Demand for invalidation trial 2002-35316 filed 7/30/02; Boston
      Scientific Japan K.K. Intervention filed 5/27/04, Appeal Heisei 17 nen (Gyo
      Ke)
      No. 10475, Correction Proceeding filed in Japanese Patent Office.

     

    WHEREAS,
      the Parties agree that BSC and BSL will cease to be equity holders of Medinol
      immediately prior to the Effective Date;

     

    WHEREAS,
      the Parties desire to settle and compromise their claims, counterclaims,
      differences, and causes of action including, but not limited to, those

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

     

    arising
      out of the Actions, and to avoid the expense and inconvenience of further
      litigation and disputes;

     

    NOW,
      THEREFORE, for and in consideration of the mutual promises, covenants, and
      rights contained herein, the Parties agree as follows:

     

    1.  DEFINITIONS

     

    As
      used
      in this Agreement, the following terms shall have the meanings set forth
      below:

     

    1.1  “Affiliate”
      means
      with respect to any specified person, any other person or entity that directly
      or indirectly through one or more intermediaries, controls, is controlled by,
      or
      is under common control with such specified person or entity. For the purpose
      of
      this definition, “control”
      (including the terms “controlled
      by”
      and
“under
      common control with”),
      with
      respect to the relationship between or among two or more persons or entities,
      means the possession, directly or indirectly or as trustee or executor, of
      the
      power to direct or cause the direction of the affairs or management of a person
      or entity, whether through the ownership of voting securities, as trustee or
      executor, by contract or otherwise, including, without limitation, the
      ownership, directly or indirectly, or securities having the power to elect
      a
      majority of the board of directors or similar body governing the affairs of
      such
      person or entity.

     

    1.2  “BSC
      Companies”
      means
      BSC, BSL, and BSSI. 

     

    1.3  “BSC
      Equity Stake”
      means
      all equity securities of Medinol owned of record or beneficially by BSC and/or
      its Affiliates immediately prior to the Effective Date.

     

     

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

       

    

    1.4  “BSC-Medinol
      Agreements”
      means
      (a) the Supply Agreement, the Transaction Agreement and the Stockholder
      Agreement, and all amendments, addenda and exhibits related thereto,
      (b) the Confidentiality Agreement dated October 18, 1995, and (c) all
      rights, obligations or arrangements between the Parties (or any of their
      Affiliates, officers or directors) arising out of the BSC Equity Stake,
      including all legal, fiduciary or other duties owed to or by the owners of
      the
      BSC Equity Stake in their capacity as such.

     

    1.5  “Covered
      Stents”
      means
      the Express/Taxus Express Stent, the Liberté/Taxus Liberté Stent, the Identified
      Current Stents, the Other Current Stents and the Qualified Future Stents. In
      no
      event will an Other Current Stent or a Qualified Future Stent that is a
      Knock-Off (as defined below) be considered a Covered Stent. For purposes of
      this
      definition, a “Knock-Off” is a product that (i) practices Medinol’s Patent
      Rights or Proprietary Rights and (ii) has the same configuration as the Stent
      currently promoted by Medinol under the name “NIRflex” (as shown on Exhibit
      M
      to this
      Agreement). 

     

    1.6  “Express/Taxus
      Express Stent”
      means
      the Stent commonly known as the Express TM stent or the TAXUSTM ExpressTM stent as
      shown on Exhibit
      A
      to this
      Agreement.

     

    1.7  “Identified
      Current Stents”
      means
      the Stents set forth on Exhibit B
      to this
      Agreement.

     

    1.8  “Liberté/Taxus
      Liberté Stent”
      means
      the Stent commonly known as the LibertéTM
      stent
      or the TAXUSTM Liberté
      stent as
      shown on Exhibit
      C
      to this
      Agreement.

     

    1.9  “Litigation
      Costs and Liabilities”
      means
      (a) the out-of-pocket costs and expenses incurred by Medinol and BSC in
      connection with the defense of certain actions 

     

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

     

    brought
      by Johnson & Johnson or Medtronic against the BSC Companies and their
      Affiliates, relating to Stents subject to the Supply Agreement described in
      Exhibit
      D
      to this
      Agreement (“Covered Actions”) and (b) all liabilities, losses, damages, costs or
      expenses resulting from any such Covered Actions. 

     

    1.10  “Medinol
      Patents”
      means
      the Patent Rights owned by Medinol, including, but not limited to, the Patent
      Rights set forth on Exhibit
      E
      to this
      Agreement.

     

    1.11  “Net
      Sales”
      means
      the net revenues of BSC from the sale of Royalty-Bearing Stents and Stent
      Systems that include Royalty-Bearing Stents to unaffiliated third parties as
      reported in the consolidated financial statements of BSC in accordance with
      generally accepted accounting principles in the U.S. consistently
      applied.
      

     

    1.12  “Other
      Current Stent”
      means
      any Stent or Stent System sold commercially by the BSC Companies prior to the
      Effective Date, other than the Express/Taxus Express Stent, the Liberté/Taxus
      Liberté Stent and the Identified Current Stents.

     

    1.13  “Patent
      Rights”
      means
      all patents, patent applications, utility models and rights to file patent
      applications or utility models in the United States or in a foreign jurisdiction
      relating to Stents, having a priority date prior to the Effective Date, and
      including reissues or extensions thereof in any division, continuation, or
      continuation-in-part of any applications or substitutes therefor, whether
      initially filed before or after the Effective Date. This excludes claims of
      patents where the patentable feature of the claim is directed to (a) methods
      of
      manufacture of Stents, (b) Nitinol alloys for Stents, (c) materials for the
      construction of Stents if such materials are not, at the Effective Date,
      used
      in any
      version of the Express/Taxus Express Stent, Liberte/Taxus Liberte Stent or
      

     

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

     

    Identified
      Current Stent that is or has been sold commercially prior to the Effective
      Date,
      (d) the coating of Stents if such coating is not, at the Effective Date, used
      on
      any version of the Express/Taxus Express Stent, Liberte/Taxus Liberte Stent
      or
      Identified Current Stent that is or has been sold commercially prior to the
      Effective Date,(e) drugs to be used on or in connection with Stents if such
      drugs are not, at the Effective Date, used on or in connection with any version
      of the Express/Taxus Express Stent, Liberte/Taxus Liberte Stent or Identified
      Current Stent that is or has been sold commercially prior to the Effective
      Date,
      (f) delivery systems for Stents if such delivery systems are not, at the
      Effective Date, used in any Stent System that includes the Express/Taxus Express
      Stent, Liberte/Taxus Liberte Stent or Identified Current Stent that that is
      or
      has been sold commercially prior to the Effective Date or (g) the shape of
      the
      wall of the Stent itself (as opposed to the design pattern for the wall) if
      such
      shape is not, at the Effective Date, used by any version of the Express/Taxus
      Express Stent, Liberte/Taxus Liberte Stent or Identified Current Stent that
      is
      or has been sold commercially prior to the Effective Date. 

     

    1.14  “Proprietary
      Rights”
      means
      all proprietary rights and interests of every nature in, to or relating to
      Stents, including, but not limited to, inventions, ideas, know-how, trade
      secrets and technology, that were provided by Medinol to the BSC Companies
      during the term of the BSC-Medinol Agreements. This excludes all proprietary
      rights and interests that are directed at (a) methods of manufacture of Stents,
      (b) Nitinol alloys for Stents, (c) materials for the construction of Stents
      if
      such materials are not, at the Effective Date, used in any version of the
      Express/Taxus Express Stent, Liberte/Taxus Liberte Stent or Identified Current
      Stent that is or has been sold commercially prior to the Effective Date, (d)
      the
      coating of Stents if such coating is not, at the Effective Date, 

     

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

       

    

    used
      on
      any version of the Express/Taxus Express Stent, Liberte/Taxus Liberte Stent
      or
      Identified Current Stent that is or has been sold commercially prior to the
      Effective Date, (e) drugs to be used on or in connection with Stents if such
      drugs are not, at the Effective Date, used on or in connection with any version
      of the Express/Taxus Express Stent, Liberte/Taxus Liberte Stent or Identified
      Current Stent that is or has been sold commercially prior to the Effective
      Date,
      (f) delivery systems for Stents if such delivery systems are not, at the
      Effective Date, used in any Stent System that includes the Express/Taxus Express
      Stent, Liberte/Taxus Liberte Stent or Identified Current Stent and that is
      or
      has been sold commercially prior to the Effective Date or (g) the shape of
      the
      wall of the Stent itself (as opposed to the design pattern for the wall) if
      such
      shape is not, at the Effective Date, used by any version of the Express/Taxus
      Express Stent or Liberte/Taxus Liberte Stent or Identified Current Stent that
      is
      or has been sold commercially prior to the Effective Date.

     

    1.15  “Qualified
      Future Stent”
      means
      any Stent or Stent System that is first sold commercially on or after the
      Effective Date and such first commercial sale is a bona fide sale by BSC or
      a
      BSC Subsidiary (as defined in Section 5.1(c)), for its own account and not
      as a
      distributor, marketing agent or contract manufacturer. Stents first sold
      commercially, after the Effective Date, by an entity that is at the time of
      first commercial sale not a BSC Subsidiary but that becomes a BSC Subsidiary
      after the date of first commercial sale, shall be considered to be Qualified
      Future Stents from the date such entity becomes a BSC Subsidiary (a Stent which
      is a Qualified Future Stent under this sentence is a “Full Price Qualified
      Future Stent”). For purposes of clarity, Qualified Future Stents include Stents
      the first commercial sale of which occurs after the Effective 

     

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

     

    Date
      and
      is a bona fide sale by an entity (for its own account and not as a distributor,
      marketing agent or contract manufacturer) that at the time of such sale is
      a BSC
      Subsidiary but is not at the Effective Date a BSC Subsidiary. 

     

    1.16  “Royalty-Bearing
      Stent”
      has the
      meaning set forth in Section 5.8.

     

    1.17  “Stockholder
      Agreement”
      means
      the Stockholder Agreement by and among Medinol, Dr. Jacob Richter,
      Dr. Judith Richter and BSC dated October 25, 1995.

     

    1.18  “Stent”
      means a
      metallic medical device to be placed into a natural or artificial lumen in
      a
      body, whether vascular or nonvascular, to maintain patency by supporting the
      lumen against closure or reclosure, or to mechanically support or expand the
      lumen thereby serving as a scaffold or matrix to present a material to the
      wall
      of such lumen.

     

    1.19  “Stent
      System”
      means
      any system that includes a Stent, the combined intended function of which is
      to
      deliver, deploy or use a Stent.

     

    1.20  “Supply
      Agreement”
      means
      the Supply Agreement between BSC and Medinol dated October 25,
      1995.

     

    1.21  “Transaction
      Agreement”
      means
      the Transaction Agreement between Medinol and BSC dated October 25, 1995.

     

    2.  FORFEITURE
      AND CANCELLATION OF BSC EQUITY STAKE

     

    2.1  Without
      admitting any wrongdoing or conceding any Party’s positions, the Parties have
      agreed to the surrender and forfeiture and/or cancellation of the BSC Equity
      Stake, as a result of Medinol’s claims that, in light of the Actions and related
      allegations, (a) Medinol (or its shareholders other than BSC and BSL)
      was
      entitled to cancel the BSC 

     

    
      
         

      

      
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    Equity
      Stake for no consideration, and (b) the BSC Equity Stake should not
      entitle
      BSC to any participation, directly or indirectly, in any benefit received by
      the
      Medinol Parties from this Agreement. Accordingly, prior to the making of the
      Settlement Payment (as defined below), BSC shall surrender and forfeit to
      Medinol the BSC Equity Stake for cancellation, and shall execute such further
      instruments as may be necessary under applicable law to convey to Medinol the
      BSC Equity Stake for forfeiture and/or cancellation, including the document
      attached hereto as Exhibit K. In consideration for the surrender and forfeiture
      and/or cancellation of the BSC Equity Stake, Medinol shall reimburse to BSC
      and
      BSL an aggregate amount equal to (i) $25,000,000 less (ii) the aggregate
      dividends paid with respect to the BSC Equity Stake during the period of its
      ownership by BSC (but in no event shall this payment be less than zero). This
      will be the sole consideration for the surrender of the BSC Equity
      Stake.

     

    3.  SETTLEMENT
      PAYMENT

     

    3.1  Within
      seven (7) days of the Effective Date, BSC shall pay or cause to be paid to
      Medinol the amount of seven hundred and fifty million dollars ($750,000,000)
      by
      wire transfer to an account directed by Medinol (the “Settlement Payment”) for
      the settlement of the U.S. Action. The Settlement Payment represents
      remuneration for lost commercial profits claimed by Medinol under
      Section 3.02(a) of the Supply Agreement relating to the alleged breaches
      of
      the Supply Agreement.

     

    3.2  Effective
      upon Medinol’s receipt of the full amount of the Settlement Payment into the
      account specified by Medinol and the surrender and forfeiture of the BSC Equity
      Stake pursuant to Section 2.1, (a) the releases pursuant to Article 9 of this
      

     

    
      
         

      

      
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    Agreement
      shall take effect, (b) the BSC-Medinol Agreements shall be canceled and
      terminated, to the extent not previously canceled and terminated, and (c) the
      Actions shall be dismissed with prejudice pursuant to Section 8.1.

     

    3.3  The
      Parties agree that, upon Medinol’s receipt of the Settlement Payment, the BSC
      Companies have satisfied any monetary obligations arising out of the Supply
      Agreement and each of the other BSC-Medinol Agreements up to the Effective
      Date
      and that the Settlement Payment is in full and complete satisfaction of all
      monetary and other claims made or which could have been made by the Medinol
      Parties against the BSC Companies and its officers, directors and Affiliates
      prior to and through the Effective Date, stemming from the Supply Agreement
      and
      each of the other BSC-Medinol Agreements or the Express/Taxus Express
      Stents.

     

    3.4  The
      Parties agree that, effective upon Medinol’s receipt of the Settlement Payment,
      Medinol and its officers, directors and Affiliates have no remaining monetary
      or
      other obligations to the BSC Companies arising out of the BSC-Medinol
      Agreements, except as contemplated in Article 4 of this
      Agreement.

     

    3.5  The
      Parties agree that the Settlement Payment made pursuant to this Article does
      not
      cover any future infringement claims that may be made by Medinol. Such potential
      future claims are addressed in Article 5.

     

    4.  LITIGATION
      COSTS AND LIABILITIES

     

    4.1  BSC
      and
      Medinol acknowledge that each has incurred Litigation Costs and Liabilities
      and
      that the provisions of Section 9.03 of the Supply Agreement may provide for
      the
      sharing of such Litigation Costs and Liabilities by Medinol and BSC. The Parties
      

     

    
      
         

      

      
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    agree
      to
      resolve all issues relating to the application of Section 9.03 of the
      Supply Agreement to the Covered Actions in accordance with the provisions of
      Article 4 of this Agreement. 

     

    4.2  Within
      ninety (90) days after the final resolution by final judgment or settlement
      of
      any Covered Action, BSC shall initiate an arbitration proceeding in New York,
      New York administered by the American Arbitration Association under its
      Commercial Arbitration Rules to resolve the issues described in Section 4.1.
      Judgment on any award rendered by the arbitrators may be entered in any court
      having jurisdiction thereof. BSC and Medinol shall select three neutral
      arbitrators from a panel of neutral arbitrators designated by the AAA having
      experience hearing and evaluating patent disputes. The arbitration panel shall
      establish rules for the arbitration proceeding designed to result in a final
      decision by the panel within one hundred and eighty (180) days after the
      commencement of the arbitration proceedings. The arbitration panel shall
      determine if and when Section 9.03 of the Supply Agreement terminated, if
      Medinol has any monetary obligation under Section 9.03 of the Supply
      Agreement with respect to the Covered Action, the amount of any such obligation
      under Section 9.03 with respect to any Covered Action, including the value
      of an
      adverse judgment as a stand alone action, net of contribution from BSC under
      Section 9.03. In any arbitration proceeding under this Article 4, Medinol
      shall have the right to review, on a confidential basis, the terms of any
      settlement of a Covered Action and the terms of any related settlement or
      agreement with the same party for purposes of verifying the allocation of
      amounts paid in such settlement to the Covered Action.

     

    
      
         

      

      
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    4.3  Eighty
      percent (80%) of the amount determined by arbitration pursuant to Section 4.2
      to
      be the obligation of Medinol under Section 9.03 of the Supply Agreement (the
      “Medinol Payment”) must be paid to BSC by Medinol within thirty (30) days after
      receipt of the arbitrator’s determination. Should Medinol fail to pay such
      amount when it is due, as BSC’s sole remedy, BSC shall be relieved of all
      obligations to make any payments with respect to alleged infringement of the
      Medinol Patents pursuant to Article 5 of this Agreement.

     

    4.4  Nothing
      in Section 3.2, this Article 4 or any other provision of this
      Agreement shall create any implication as to the timing of cancellation or
      termination of Section 9.03 of the Supply Agreement, as applied to any Covered
      Action.

     

    5.  PROCEDURE
      FOR FUTURE INFRINGEMENT CLAIMS

     

    5.1  Effective
      upon the granting of the releases in Article 9, the Medinol Parties
      covenant (i) not to sue, other than in any arbitration contemplated
      by
      Article 5 of this Agreement, BSC or the BSC Subsidiaries from time to time
      or
      any of their officers, directors or employees for direct, induced, indirect
      or
      contributory infringement under any of the Medinol Patents or Proprietary Rights
      with respect to the making, having made, importing, use, sale, offering for
      sale, distribution or other disposal by BSC or any BSC Subsidiary of any Covered
      Stent, other than any claim contemplated by Article 5 of this Agreement; or
      (ii)
      not to sue customers, distributors, sales agents and/or end users for direct,
      induced, indirect or contributory infringement under any of the Medinol Patents
      or Proprietary Rights with respect to the use of any Covered Stent directly
      or
      indirectly purchased from BSC or a BSC Subsidiary.

     

    
      
         

      

      
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    5.2  (a)
      The
      covenant granted pursuant to Section 5.1 shall be royalty-free and
      irrevocable with respect to the Express/Taxus Express Stents. With respect
      to
      all other Covered Stents, the covenant granted pursuant to Section 5.1
      shall be irrevocable, and consideration for such covenant consists solely of
      the
      royalty payments, if any, awarded pursuant to this Article 5.

     

    (b)
      The
      covenant granted pursuant to Section 5.1 shall be without the right
      to
      assign, except that BSC may assign the covenant to any of its Affiliates that
      is
      a consolidated subsidiary of BSC under United States generally accepted
      accounting principles (a “BSC Subsidiary”). Any assignment to a BSC Subsidiary
      and the covenant granted to each BSC Company (other than BSC) under Section
      5.1
      shall automatically terminate upon such an entity ceasing to be a BSC
      Subsidiary.

     

    (c)
      In
      the event Medinol assigns, sells, transfers or otherwise grants an exclusive
      license to any Medinol Patent to a third party, (i) the covenant granted in
      Section 5.1 shall automatically be binding upon any assignee, purchaser,
      transferee or licensee of such Medinol Patent, and (ii) Medinol shall provide
      notice of such covenant to the assignee, purchaser, transferee or
      licensee.

     

    (d)
      The
      Medinol Parties agree to indemnify the BSC Companies, the BSC Subsidiaries,
      any
      of their respective directors, officer, or employees and/or any customers,
      distributors, sales agents, and end users of Covered Stents directly or
      indirectly purchased from BSC or a BSC Subsidiary from and against any and
      all
      losses, costs, damages, fees or expenses (including attorney’s fees and costs)
      arising out of any action, suit or proceeding brought by any assignee,
      purchaser, transferee or licensee of Medinol (including W.L. Gore &
      Associates and its affiliates) against the BSC 

     

    
      
         

      

      
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    Companies,
      the BSC Subsidiaries, any of their respective directors, officers or employees,
      and/or any customers, distributors, sales agents and end users of Covered Stents
      directly or indirectly purchased from BSC or a BSC Subsidiary, under the Medinol
      Patents. BSC agrees to seek any judgment for indemnification set forth in this
      Section 5.2(d) against Medinol in the first instance. If, but only if, BSC
      obtains such a judgment for indemnification against Medinol that Medinol fails
      to satisfy, BSC may bring an action in the United States District Court for
      the
      Southern District of New York to enforce such judgment directly against the
      Medinol Parties other than Medinol (as if those Parties had been parties to
      the
      action against Medinol) to the extent that Medinol has failed to satisfy such
      judgment. In the event of any action, suit or proceeding by any assignee,
      purchaser, transferee or licensee of Medinol under the Medinol Patents, BSC
      may
      contest the validity, enforceability and/or scope of the Medinol Patents at
      issue in that action, suit or proceeding.

     

    (e)
      Medinol shall have the right, at its sole option, to convert the covenant
      granted in Section 5.1 to a non-exclusive license on the same terms and of
      the
      same scope as such covenant, subject to the terms of this Agreement including
      Article 5. Such option may be exercised by provision of written notice to BSC
      by
      Medinol. Upon exercise of such option, the indemnity set forth in Section 5.2(d)
      shall terminate, and all references in this Agreement to the covenant will
      be
      deemed a reference to such license.

     

    5.3  The
      Parties have not resolved the issue of whether the BSC Companies are obligated
      to make any payments to the Medinol Parties with respect to the Liberte/Taxus
      Liberte Stents and the Identified Current Stents by reason of the Medinol
      Patents. For 

     

    
      
         

      

      
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    purpose
      of clarity, the Parties have agreed that BSC has no obligation to make any
      royalty payments to the Medinol Parties with respect to (i) the
      Express/Taxus Express Stents and (ii) the Stents identified on Exhibit
      B
      as the
“Nir” Stents, in either case by reason of the Medinol Patents or the Proprietary
      Rights of Medinol. The Parties have agreed to resolve all issues relating to
      BSC
      obligations, if any, with respect to any alleged infringement of the Medinol
      Patents by any Covered Stent (other than (i) the Express/Taxus Express
      Stents and (ii) the Stents identified on Exhibit
      B
      as the
“Nir” Stents) in accordance with the arbitration provisions of this Article 5.
      The Parties have further agreed that the sole basis for any claim that BSC
      is
      obligated to make any payments to the Medinol Parties with respect to the
      Liberte/Taxus Liberte Stent and the Identified Current Stents shall be that
      the
      making, having made, importing, selling, offering for sale, distribution or
      other disposal of the Liberte/Taxus Liberte Stent or any Identified Current
      Stent infringe a claim of the Medinol Patents determined in the arbitration
      pursuant to this Article 5 to be valid and enforceable between the parties
      in
      the jurisdiction in which the infringing actions are performed; provided,
      however, that, if after the Effective Date, BSC changes the manner in which
      it
      makes, has made, sells, offers for sale, distributes or otherwise disposes
      of
      the Liberte/Taxus Liberte or any Identified Current Stent, then the Medinol
      Parties shall not be precluded from asserting that such changed manner of
      making, having made, selling, offering for sale, distributing or otherwise
      disposing of the Liberte/Taxus Liberte or any Identified Current Stent violates
      an enforceable right of the Medinol Parties.

     

    5.4  Within
      six (6) months after the Effective Date, Medinol may commence arbitration
      against BSC and/or its Affiliates with respect to the Liberte/Taxus Liberte
      

     

    
      
         

      

      
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    Stent
      or
      any Identified Current Stent alleging that such Stent infringes a valid and
      enforceable claim of the Medinol Patents. BSC shall, within one month after
      the
      Effective Date, provide Medinol with (a) a list of the jurisdictions in which
      BSC or a subsidiary has manufactured or sold each such Stent, and (b) sales
      volume over the twelve most recently completed fiscal quarters for each such
      Stent. If Medinol asserts infringement only of United States patents, there
      shall be a sole arbitrator with expertise in U.S. patent law (the “US
      Arbitrator”); if Medinol asserts infringement only of non-United States patents,
      there shall be a sole arbitrator with expertise in European patent law (the
“EU
      Arbitrator”); and if Medinol wishes to assert that a particular Stent infringes
      both United States and non-United States patents, there shall be an arbitration
      tribunal consisting of a US Arbitrator and an EU Arbitrator, and the arbitration
      tribunal shall be presented with the information and arguments specified below
      in a single arbitration proceeding for the Stent at issue, provided that the
      US
      Arbitrator shall make the determination set forth in Section 5.6 with respect
      to
      the United States, and the EU Arbitrator shall make such determination with
      respect to all other countries of the world. For purposes of clarity, Medinol
      shall make an election as to whether it wishes to assert infringement of United
      States patents, non-United States patents, or both, and will be entitled to
      initiate a single arbitration proceeding with respect to each Stent covered
      by
      this Section 5.4. If Medinol does not commence such action within such time
      period, Medinol shall be deemed to have waived any claims to future payments
      under this Article 5 from BSC and the BSC Subsidiaries with respect to such
      Stent.

     

    5.5  Medinol
      may also commence arbitration against BSC and/or the BSC Subsidiaries with
      respect to any Other Current Stent or Qualified Future Stent, alleging

     

    
      
         

      

      
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    that
      such
      Other Current Stent or Qualified Future Stent infringes a valid and enforceable
      claim of the Medinol Patents. Such action shall be commenced within six (6)
      months after BSC provides to Medinol (a) written notice of the fact of prior
      commercial sale by BSC or any BSC Subsidiary (in the case of any Other Current
      Stent) or of first commercial sale by BSC or any BSC Subsidiary (in the case
      of
      a Qualified Future Stent), (b) a list of the jurisdictions in which BSC or
      a BSC
      Subsidiary has manufactured or sold, or intends to manufacture or sell, such
      Stent and (c) information on the Stent design, comprising either a sample or
      a
      drawing in a form comparable to the drawings on Exhibits
      A
      and
C,
      in
      either case reasonably sufficient to enable Medinol to make a determination
      concerning whether it believes such Stent is so infringing. Such
      arbitration shall be held before a tribunal of a single arbitrator with
      expertise in the patent law of the jurisdictions relevant to the arbitration,
      provided that if the laws of both the U.S. and any European country are relevant
      to the arbitration, the arbitration tribunal shall consist of both a US
      Arbitrator and an EU Arbitrator and the US Arbitrator shall make the
      determinations set forth in Section 5.6 for the United States-related issues
      and
      the EU Arbitrator shall make such determinations for all other relevant
      countries. If Medinol does not commence such action within the applicable six
      (6) month period, Medinol shall be deemed to have waived any claims by reason
      of
      the Medinol Patents to future payments from BSC and the BSC Subsidiaries with
      respect to such Stent in each jurisdiction identified in the notice pursuant
      to
      clause (b). For purposes of clarity, the Parties agree that Medinol shall not
      be
      entitled to bring an action, under this Article 5 or otherwise, claiming that
      the Qualified Future Stents violated the Proprietary Rights of
      Medinol.

     

    
      
         

      

      
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    5.6  In
      any
      arbitration commenced by Medinol pursuant to Section 5.4 or 5.5, the Parties
      agree that:

     

    (a)  except
      as
      explicitly provided in this Agreement, the arbitration shall be pursuant to
      the
      Arbitration Rules (the “WIPO Arbitration Rules”) of the World Intellectual
      Property Organization (hereinafter "Trial Tribunal").

     

    (b)  Medinol
      will not seek any relief or remedy other than the royalty described in
      subsection (c) below (including, but not limited to, a preliminary or permanent
      injunction).

     

    (c)  the
      Trial
      Tribunal shall be asked to determine (i) whether the applicable Stents infringe
      a valid and enforceable claim of the Medinol Patents, and (ii) if such Stents
      infringe a valid and enforceable claim of the Medinol Patents, an arm’s length,
      market royalty rate that is reasonable in light of all applicable circumstances
      including but not limited to, (A) court-imposed royalty rates for technologies
      of similar scope and quality, (B) the relative contribution of the infringing
      portion of the Stent, (C) whether any component of a Stent System should be
      excluded from the royalty rate base, (D)
      the
      terms of comparable bona fide licenses granted by Medinol to unaffiliated third
      parties that were negotiated at arm’s length taking into account whether Medinol
      was also being compensated for supplying Stents, and (E) relevant prior case
      law
      relating to remedies for patent infringement by Stents and Stent Systems (the
      “Market Royalty Rate”). The
      Parties acknowledge that the Market Royalty Rate shall be composed of (i) a
      percentage rate and (ii) a revenue base to which that percentage must be applied
      (which revenue base need not be “Net Sales” in accordance with the definition
      thereof in this Agreement), each of which shall be set by the Trial Tribunal.
      Except with respect to sales 

     

    
      
         

      

      
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    of
      Full
      Price Qualified Future Stents for which sales the full Market Royalty Rate
      shall
      apply, the
      actual royalty rate payable shall be determined by multiplying the Market
      Royalty Rate by 0.8. Alternatively, the Trial Tribunal may award a lump sum
      royalty if it determines that the foregoing royalty can be determined as a
      lump
      sum with reasonable certainty. The written decision by the Trial Tribunal shall
      be the “Award of First Instance.”

     

    (d)  BSC
      shall
      not be entitled to challenge the timeliness of any such Arbitration other than
      pursuant to Section 5.4 or 5.5; and

     

    (e)  For
      purposes of any arbitration under this Article 5, in any proceeding before
      the
      Trial Tribunal or Appellate Panel:

     

    
      	(1)  	
              There
                shall be no presumption of validity between the Parties as to patents
                held
                by Medinol (including the Medinol Patents) or by BSC by reason of
                the
                issuance of such patent. 

               

            

    

    
      	(2)  	
              By
                reason of the prior issuance of the Brown patent (U.S. Patent 6,776,793),
                there shall be no inference drawn as to the authorship of the inventions
                claimed in the Brown patent. 

               

            

    

    
      	(3)  	
              With
                respect to any patent that may be granted with respect to the following
                patent applications, there shall be no inference drawn as to the
                authorship of the inventions claimed: U.S. Patents 6,042,597; 6,488,703,
                and 6,896,696; and U.S. Patent Applications 2002/0055770; 2002/0116049;
                and 2002/0095208.

            

    

     

    5.7  The
      Award
      of First Instance shall only be subject to review through an appeal to an
      Appellate Panel consisting of three arbitrators appointed pursuant to Article
      17
      of 

     

    
      
         

      

      
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    the
      WIPO
      Arbitration Rules. No arbitrator in the Trial Tribunal may be an arbitrator
      on
      the Appellate Panel. Such an appeal must be initiated within thirty (30) days
      of
      the Trial Tribunal Award of First Instance or the Award of First Instance shall
      otherwise become a Final Award pursuant to the WIPO Arbitration Rules. If an
      appeal is sought, the Appellate Panel shall conduct a de novo review of the
      legal determinations of the Trial Tribunal and shall determine whether there
      is
      a reasonable basis for all factual determinations. If the Award of First
      Instance is affirmed, that Award of First Instance shall become the Final Award
      and the Appellate Panel shall require the party that appealed to pay the full
      costs of the appellate proceeding including the counsel fees of the prevailing
      party. If the Appellate Panel determines the Award of First Instance is legally
      in error or lacks a reasonable factual basis,
      the
      Appellate Panel shall render a written decision and its decision shall be the
      Final Award. In this event the Appellate Panel shall have the discretion to
      allocate the costs of the proceedings, including counsel fees, between the
      parties. 

     

    5.8  Any
      Covered Stent determined by the Final Award under this Article to infringe
      a
      valid and enforceable claim of the Medinol Patents, is referred to as a
“Royalty-Bearing Stent” from the later of (i) the first commercial sale thereof,
      and (ii) the issuance of the earliest applicable Medinol Patent which such
      Royalty-Bearing Stent is found to have infringed in the Final Award. Royalties
      shall be payable on any Royalty Bearing Stent until the expiration, cancellation
      or termination of the applicable Medinol Patent(s).

     

    5.9  Any
      arbitration pursuant to this Section 5 shall take place in New York City, New
      York and shall be conducted in English.

     

    
      
         

      

      
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    5.10  Any
      Party
      may bring an action in any court of competent jurisdiction to enforce a Final
      Award, including an action by Medinol to enforce payment of any royalty pursuant
      to a Final Award under this Article 5.

     

    5.11  
      BSC
      shall give Medinol the written notice contemplated by Section 5.5 at or about
      the time of the first commercial sale by BSC or any of its Affiliates of any
      Qualified Future Stent in each applicable jurisdiction. If BSC fails to give
      such notice at or about the time of first commercial sale in any jurisdiction,
      any royalties ultimately established pursuant to this Article 5 with respect
      to
      any sale of such Qualified Future Stent in such jurisdiction in the period
      between such first commercial sale and the notice pursuant to Section 5.5 (when
      ultimately given) shall bear interest at the rate of 10% per annum, compounding
      annually, from the end of the fiscal quarter of such sale to the actual date
      of
      payment. 

     

    6.  PAYMENTS
      AND REPORTS

     

    6.1  Beginning
      with the first fiscal quarter following the first determination under Article
      5
      of this Agreement that a Royalty-Bearing Stent exists, within sixty (60) days
      of
      the close of each fiscal quarter of BSC, BSC shall deliver a written report
      to
      Medinol specifying the applicable royalty rate revenue base for such
      Royalty-Bearing Stent for such quarter, accompanied by payment of the applicable
      royalty thereon (and any interest thereon pursuant to Section 5.11).
      With
      respect to any Royalty-Bearing Stent, the first such report shall include a
      statement as to the cumulative applicable royalty rate revenue base for such
      Royalty-Bearing Stent from the first commercial sale thereof through the

     

    
      
         

      

      
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    beginning
      of such first fiscal quarter, accompanied by payment of the applicable royalty
      thereon (and any interest thereon pursuant to Section 5.11). 

     

    6.2  This
      reporting obligation shall cease after the last royalty payment for a
      Royalty-Bearing Stent due under this Agreement has been paid.

     

    6.3  Payments
      shall be made in United States currency and shall be calculated, with respect
      to
      foreign currency exchange calculations, in a manner substantially similar to
      the
      methodologies utilized by the BSC Companies for their other foreign currency
      exchange calculations during the relevant reporting period. In addition to
      any
      interest pursuant to Section 5.11, if BSC fails to pay royalties when due as
      provided in Section 6.1, any such overdue amount shall bear interest at the
      rate
      of 10% per annum, compounding annually, from the due date of such payment to
      the
      actual date of payment.

     

    6.4  With
      respect to the royalty and reporting set forth in this Article 6, the BSC
      Companies and their Affiliates shall keep accurate records with respect to
      all
      Royalty-Bearing Stents. These records shall be retained until the later to
      occur
      of (i) the third anniversary of delivery to Medinol of the report under
      Section 6.1 for the period to which they relate and (ii) three
      (3)
      months following completion of any examination and audit thereof pursuant to
      the
      next sentence that is commenced prior to such third anniversary. Medinol shall
      have the right through a mutually agreed upon independent certified public
      accountant and at its expense, to examine and audit, not more than once a year,
      and during normal business hours, all such records and such other records and
      accounts as may under recognized accounting practices contain information
      bearing upon the amount of royalty payable to Medinol under this Agreement.
      Adjustment shall be made by the BSC Companies promptly (and in any event within
      sixty (60) days) to compensate for 

     

    
      
         

      

      
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    any
      errors and/or omissions disclosed by such examination or audit. If such error
      and/or omission results in an underpayment exceeding five percent of the
      royalties due and owing, the BSC Companies shall pay Medinol for the reasonable
      costs of the audit. If Medinol fails to invoke its audit rights within three
      (3)
      years following the end of any calendar year covered in a report or reports
      under Section 6.1, the calculation of the applicable royalty rate revenue
      base and royalties for such calendar year in such report or reports shall be
      final, binding and conclusive. BSC acknowledges that this Section 6.4
      may
      require BSC to maintain records with respect to sales of Stents for periods
      before such Stents are identified as Royalty-Bearing Stents, for periods prior
      to any notice pursuant to Section 5.5 and for periods prior to the
      Effective Date. 

     

    6.5  Medinol
      shall treat any information that it obtains from the BSC Companies pursuant
      to
      this Article 6, through reports, audits, or otherwise, confidentially in
      accordance with Article 10 of this Agreement and use such information
      solely for purposes of calculating the royalties on Royalty-Bearing Stents
      or
      for enforcing its rights under this Agreement.

     

    7.  REPRESENTATIONS
      AND WARRANTIES

     

    7.1  The
      Medinol Parties hereby represent and warrant that as of the Effective Date
      and
      as of the Dismissal Date: 

     

    (a)  Medinol
      is a corporation duly organized, validly existing, and in good standing and
      has
      corporate power and authority to execute and deliver this Agreement, to own
      the
      Medinol Patents, and to perform its obligations hereunder, including but not
      

     

    
      
         

      

      
        -25-

        
          

        

      

      
         

      

    

     

    limited
      to, the grant of the covenant in Article 5 of this Agreement, and all such
      action has been duly and validly authorized by all necessary corporate
      proceedings on its part.

     

    (b)  This
      Agreement and all agreements relating hereto have been duly and validly executed
      and delivered by the Medinol Parties and constitute legal, valid, and binding
      obligations enforceable in accordance with their respective terms, except as
      may
      be limited by bankruptcy, insolvency, or other similar laws of general
      application affecting the enforcement of creditors’ rights or by general
      principles of equity limiting the availability of equitable
      remedies.

     

    (c)  Neither
      the execution and delivery of this Agreement nor any documents relating hereto,
      nor the consummation of the transactions herein contemplated, nor the
      performance of or compliance with the terms and conditions hereof or thereof,
      will (i) violate any material law, (ii) conflict with or result in a breach
      of
      or a default under the certificate of incorporation or bylaws of Medinol or
      any
      material agreement or instrument to which any of the Medinol Parties is a party
      or by which it or any of its properties may be subject or bound, or (iii) result
      in the creation or imposition of any material lien, charge, security interest,
      encumbrance or interest of any third party of any kind upon any property of
      the
      Medinol Parties, in any such case that would have an adverse effect on the
      ability of the Medinol Parties to perform their obligations hereunder.

     

    (d)  The
      Medinol Patents listed on Exhibit
      E
      to this
      Agreement constitute all Patent Rights in the United States owned by Medinol
      as
      of the Effective Date. There are no Patent Rights licensed to Medinol as of
      the
      Effective Date that would be infringed 

     

    
      
         

      

      
        -26-

        
          

        

      

      
         

      

    

     

    by
      the
      manufacture, use or sale of the Express/Taxus Express Stent, Liberté/Taxus
      Liberté Stent or the Identified Current Stents.

     

    7.2  The
      BSC
      Companies hereby represent and warrant that as of the Effective Date and the
      Dismissal Date:

     

    (a)  Each
      BSC
      Company is a corporation duly organized, validly existing and in good standing
      and has corporate power and authority to execute and deliver this Agreement
      and
      to perform its obligations hereunder, and all such action has been duly and
      validly authorized by all necessary corporate proceedings on its
      part.

     

    (b)  This
      Agreement and all agreements relating thereto have been duly and validly
      executed and delivered by each BSC Company and constitute legal, valid and
      binding obligations thereof enforceable in accordance with their respective
      terms, except as may be limited by bankruptcy, insolvency or other similar
      laws
      of general application affecting the enforcement of creditors’ rights or by
      general principles of equity limiting the availability of equitable
      remedies.

     

    (c)  Neither
      the execution and delivery of this Agreement nor any documents relating hereto,
      nor the consummation of the transactions herein contemplated, nor the
      performance of or compliance with the terms and conditions hereof or thereof,
      will (i) violate any material law, (ii) conflict with or result in a breach
      of
      or a default under the certificate of incorporation or bylaws of the BSC
      Companies or any material agreement or instrument to which any of the BSC
      Companies is a party or by which it or any of its properties may be subject
      or
      bound, or (iii) result in the creation or imposition of any material lien,
      charge, security interest, encumbrance or interest of any third party of any
      kind upon any property of any of the BSC Companies.

     

    
      
         

      

      
        -27-

        
          

        

      

      
         

      

    

     

    (d)  The
      Stents set forth on Exhibits A,
      B and C
      to this
      Agreement constitute all of the Stents which are being manufactured or sold
      by
      BSC or any of its Affiliates as of, or at any time prior to, the Effective
      Date.

     

    (e)  The
      BSC
      Equity Stake is owned by BSC and BSL, free and clear of any lien, charge,
      security interest, encumbrance or interest of any third party of any
      kind.

     

    (f)  BSC
      is
      not currently prosecuting any action pursuant to Section 9.04(a) or
      9.04(b)
      of the Supply Agreement, except for an action in Germany against Johnson &
      Johnson. BSC agrees that, within fourteen (14) days after the Effective Date,
      it
      will transfer to Medinol any assignable rights in such action and withdraw
      from
      such action or take such other action (at the expense of Medinol) as shall
      be
      reasonably requested by Medinol to convey to Medinol the benefits of such
      action. Attached as Exhibit F
      to this
      Agreement is a true and complete list of all actions prosecuted by BSC, and
      all
      settlements, license agreements and similar agreements entered into by BSC,
      pursuant to Section 9.03, 9.04(a) or 9.04(b) of the Supply
      Agreement.

     

    7.3  Nothing
      in this Agreement shall be construed as:

     

    (a)  restricting
      the right of any Party or any of its Affiliates to make, use, sell, lease or
      otherwise dispose of any particular product or products not subject to a
      covenant herein; or

     

    (b)  an
      admission by the BSC Companies of, or a warranty or representation by the
      Medinol Parties as to, the validity and/or scope of any of the Medinol Patents
      or a limitation on the BSC Companies to contest, in any proceeding initiated
      pursuant to Article 5 of this Agreement, the validity, enforceability and/or
      scope 

     

    
      
         

      

      
        -28-

        
          

        

      

      
         

      

    

     

    thereof
      (and in no event shall any payment under this Agreement be refundable in the
      event of any invalidity of any Medinol Patent); provided,
      however,
      that
      the BSC Companies may not, except as provided in Section 5.2 (d), contest the
      validity, enforceability and/or scope of any Medinol Patent other than in a
      proceeding under Article 5 of this Agreement; or

     

    (c)  conferring
      any license or other right, by implication, estoppel or otherwise, under any
      patents except as herein expressly granted; or

     

    (d)  a
      warranty or representation by any Party that any manufacture, use, sale, lease
      or other disposition of any product will be free from infringement of any patent
      other than the patents that are the subject of a covenant herein, and (other
      than with respect to the Covered Actions, as contemplated in Article 4 of this
      Agreement) none of the Parties or their Affiliates shall have any obligation
      to
      defend, indemnify or hold harmless any other Party or any of its Affiliates
      from
      any suits, actions or claims alleging infringement of any third party’s patent
      and none of the Parties or their Affiliates shall have any liability therefor;
      or

     

    (e)  other
      than as specified in Article 5 or Article 6 of this Agreement, a right
      for
      any Party to request or receive, or an obligation on any Party to furnish,
      discuss, or exchange information relative to their specific customers, marketing
      policies or activities, product design plans or techniques, manufacturing plans,
      processes or yield, or pricing plans or practices under this Agreement;
      or

     

    (f)  an
      obligation to mark any products that are the subject of a covenant herein
“patent pending” or with the patent numbers of any of the relevant Patents under
      this Agreement in any country whatsoever; or

     

    
      
         

      

      
        -29-

        
          

        

      

      
         

      

    

     

    (g)  an
      obligation on any Party to enforce its patents against third
      parties.

     

    8.  DISMISSALS
      OF PENDING ACTIONS

     

    8.1  As
      soon
      as practicable after payment of the Settlement Payment and delivery of executed
      documents sufficient to transfer the BSC Equity Stake, and in any event no
      later
      than twenty-four (24) hours thereafter, the Parties shall execute and file
      a
      Stipulation of Dismissal in the form of Exhibit G
      with
      respect to the U.S. Action. Thereafter, Stipulations of Dismissals of all other
      Actions shall be executed and filed no later than fourteen (14) days after
      payment of the Settlement Payment and delivery of executed documents sufficient
      to transfer the BSC Equity Stake. Affiliates of the BSC Companies and Medinol
      are named in one or more of the Actions. Such Affiliates shall be named on
      each
      appropriate Stipulation of Dismissal and shall execute each such dismissal
      as
      appropriate. The effective date of each such dismissal is referred to herein
      as
      a “Dismissal Date.”

     

    8.2  Each
      Party shall pay its own expenses relating to the dismissals of the Actions,
      including attorneys’ fees and costs.

     

    9.  RELEASES

     

    9.1  Apart
      from the rights and obligations created by, referenced, acknowledged or arising
      out of this Agreement, the Medinol Parties, on the one hand, and the BSC
      Companies, on the other hand, on and as of the date of the payment of the
      Settlement Payment, do hereby for themselves and their respective legal
      successors and assigns, release and forever discharge each other and their
      respective officers, directors, employees, agents, attorneys, Affiliates,
      predecessors, successors, permitted assigns and 

     

    
      
         

      

      
        -30-

        
          

        

      

      
         

      

    

     

    representatives
      of and from any and all claims, demands, damages, debts, liabilities, accounts,
      reckonings, obligations, costs, expenses, liens, actions and causes of action
      of
      any kind and nature whatsoever, whether now known or unknown, suspected or
      unsuspected which either now has, owns or holds or at any time heretofore had
      ever owned or held based on or arising from each Action, any of the facts or
      alleged facts giving rise to any Action, each of the BSC-Medinol Agreements
      and
      any activities prior to the Effective Date relating to the development,
      manufacture, distribution and/or sale of the Express/Taxus Express Stent, the
      Liberté/Taxus Liberté Stent and the Identified Current Stents (collectively, the
“Released Matters”). For purposes of clarity, the Parties agree that any claim
      by Medinol under Article 5 is not a Released Matter.

     

    9.2  It
      is the
      intention of the Parties hereto in executing this Agreement and in paying and
      receiving the consideration called for by this Agreement that this Agreement
      shall comprise a full and final accord and mutual release of all the Released
      Matters. Each of the Parties acknowledges that it is aware that it or its
      attorneys or accountants may hereafter discover claims or facts in addition
      to
      or different from those which it now knows or believes to exist with respect
      to
      the Released Matters, but that it is its intention hereby to fully and finally
      and forever settle and release all Released Matters, whether known or
      unknown.

     

    10.  CONFIDENTIALITY

     

    10.1  The
      Parties shall not disclose any Confidential Information (defined below) of
      another Party or any information with respect to the terms of this Agreement
      (other than to acknowledge the existence of this Agreement or the fact that
      a
      Party has the 

     

    
      
         

      

      
        -31-

        
          

        

      

      
         

      

    

     

    covenants
      granted herein) without the prior written consent of the other Party or Parties,
      as the case may be. Confidential Information is information that the disclosing
      Party considers to be confidential or proprietary, whether disclosed to the
      other Parties before or after the Effective Date, or that otherwise provides
      it
      with a competitive advantage, but does not include information which (1) is
      or
      becomes part of the public domain by any means other than the receiving party’s
      breach of its obligations hereunder; (2) was known to the receiving party at
      the
      time of disclosure by the disclosing party; (3) is, at any time, disclosed
      to the receiving party by any third party having the right to disclose the
      same;
      or (4) is developed by an employee(s) or agent/consultant of the receiving
      party
      without use of any Confidential Information disclosed by the disclosing party.
      This prohibition includes, but is not limited to, press releases, education
      and
      scientific conferences, promotional materials, and discussions with the media.
      The foregoing restrictions shall not apply to confidential discussions with
      advisors, including lawyers, accountants, lenders, and investment bankers,
      or in
      the context of a customary due diligence investigation of any Party. If any
      Party reasonably determines that a release of such information is required
      by
      law (including securities or tax law) or the Rules of the New York Stock
      Exchange or any exchange on which the Parties’ securities are listed or on which
      an application for listing is now or is at any time in the future pending
      (“Stock Exchange Rules”) or other governmental body or by applicable accounting
      requirements, or that a release of such information on a confidential basis
      to a
      relevant tax authority is reasonably appropriate in connection with a
      governmental review of the transactions contemplated hereby, it shall promptly
      notify the other Party or Parties in writing at or before the time of the
      proposed release, if practicable. The notice shall include the exact

     

    
      
         

      

      
        -32-

        
          

        

      

      
         

      

    

     

    text
      of
      the proposed release and the time and manner of the release. At the other
      Party’s request and before the release, the Party desiring to release the
      information shall consult with the other Party on the necessity for the
      disclosure and the text of the proposed release. Absent approval in advance
      from
      the other Party, in no event shall a release include information regarding
      the
      existence or terms of this Agreement that is not required by law (including
      securities or tax law) or the Stock Exchange Rules or other governmental body
      or
      by applicable accounting requirements or reasonably appropriate for disclosure
      on a confidential basis to a relevant tax authority in connection with a
      governmental review of the transactions contemplated hereby. Any such release
      shall be mutually reviewed and approved by the Parties. Should any third party
      seek to obtain any information by legal process with respect to the existence
      or
      terms of this Agreement from any Party hereto, such Party to this Agreement
      shall promptly notify the other Party or Parties hereto, who may then take
      appropriate measures to avoid and minimize the release of such information.
      An
      initial Press Release to be issued jointly by the Parties is attached as
Exhibit
      I.
      

     

    10.2  Section 10.1
      shall not apply to any disclosure in the context of any litigation among the
      Parties. Each of the Protective Orders filed in the Actions by and among the
      Parties hereto shall remain in force and effect, and documents produced in
      discovery by any other Party and not introduced as evidence or an exhibit at
      trial shall be returned or destroyed.

     

    
      
         

      

      
        -33-

        
          

        

      

      
         

      

    

     

    11.  NO
      ADMISSIBILITY

     

    11.1  Each
      Party acknowledges that the policies concerning settlement agreements limit
      the
      admissibility of this Agreement.

     

    12.  SUCCESSORS
      AND ASSIGNS

     

    12.1  Except
      as
      expressly provided herein, neither this Agreement nor any rights or obligations
      hereunder may be transferred by any Party, in whole or in part, by operation
      of
      law or otherwise, without the prior written consent of the other Parties, such
      consent to be granted or withheld in their sole discretion, and any attempted
      transfer without such consent shall be of no force or effect. Notwithstanding
      the foregoing, this Agreement can be transferred without such consent to the
      successor entity or transferee in the event of a merger, consolidation or
      liquidation of Medinol or BSC or the acquisition of all or substantially all
      the
      assets of Medinol or BSC or the acquisition of the entire Stent business of
      Medinol or BSC; provided,
      however,
      that,
      in the case of a transfer pursuant to this sentence by BSC to any entity that,
      or to any entity any of whose Affiliates, carried on a Stent or Stent-related
      business immediately prior to such transfer, then no Stent that was not a
      Covered Stent immediately prior to such transfer shall ever become a Covered
      Stent. If
      a
      transfer is made as permitted above, the permitted transferee shall be subject
      to the terms and conditions of this Agreement and any transfer by the permitted
      transferee shall be subject to the provisions of this paragraph.

     

    13.  COUNSEL

     

    13.1  The
      Parties acknowledge that they have been represented by counsel of their own
      choice throughout all of the negotiations that preceded the execution of this
      

     

    
      
         

      

      
        -34-

        
          

        

      

      
         

      

    

     

    Agreement
      and in connection with the preparation and execution of this Agreement. This
      Agreement has been prepared with the participation of all Parties and their
      counsel, and shall not be strictly construed against any Party.

     

    14.  ENTIRE
      AGREEMENT

     

    14.1  This
      Agreement (which includes all exhibits attached hereto) contains the entire
      and
      only agreement among the Parties with respect to the subject matter of the
      Agreement and supersedes all previous negotiations, discussions, and agreements.
      This Agreement shall not be modified, amended, or otherwise changed except
      by a
      writing executed by the Parties.

     

    15.  GOVERNING
      LAW

     

    15.1  This
      Agreement and performance hereunder, shall be governed by the laws of the State
      of New York applicable to contracts executed in and to be performed in that
      State.

     

    16.  NO
      ASSIGNMENT

     

    16.1  Each
      of
      the Parties represents and warrants that it is the sole and absolute owner
      of
      each and every claim that it has released herein, and that it has not sold,
      assigned, transferred, conveyed, or otherwise disposed of any claim or demand,
      or any portion of or interest in any claim or demand, relating to any matter
      covered by the Agreement.

     

    
      
         

      

      
        -35-

        
          

        

      

      
         

      

       

    

    17.  COUNTERPARTS

     

    17.1  This
      Agreement may be executed in counterparts (each of which shall be deemed an
      original), and receipt by facsimile transmission of executed copies shall be
      legally binding. 

     

    18.  ABSENCE
      OF WAIVER

     

    18.1  Except
      as
      provided herein, the failure of any Party to enforce at any time any of the
      provisions of this Agreement shall in no way be construed as a waiver of such
      provisions, nor in any way to affect the validity of this Agreement or any
      part
      thereof, or the right of any Party to later enforce each and every such
      provision. No waiver of any breach of this Agreement shall be held to be a
      waiver of any other or subsequent breach.

     

    19.  SEVERABILITY

     

    19.1  In
      the
      event that any provision of this Agreement is found to be prohibited by law
      and
      invalid, or for any other reason such provision is held unenforceable, in whole
      or in part, it shall be considered severable and shall be ineffective only
      to
      the extent of such prohibition, invalidity or unenforceability without
      invalidating or having any other adverse effect upon any other provision of
      the
      Agreement.

     

    20.  NO
      ADMISSION

     

    20.1  Except
      as
      specifically set forth in this Agreement, neither the entering into this
      Agreement, nor any provision hereof, shall be deemed an admission by any Party
      of any wrongdoing, or of the validity or invalidity of any provision taken
      or
      proposed to be taken in the Actions or any other litigation.

     

    
      
         

      

      
        -36-

        
          

        

      

      
         

      

    

     

    21.  RELATIONSHIP
      BETWEEN THE PARTIES

     

    21.1  Nothing
      herein contained shall be deemed to create an agency, joint venture, or
      partnership relation among the Parties. The BSC Parties and Medinol are
      independent contractors and engaged in the conduct of their own respective
      businesses. No BSC Party is considered the agent or employee of Medinol for
      any
      purpose, and no BSC Party has the right or authority to enter into any contract
      or assume any obligation for Medinol or give any warranty or make any
      representation on behalf of Medinol. Medinol is not considered the agent or
      employee of any BSC Party for any purpose, and Medinol has no right or authority
      to enter into any contract or assume any obligation for any BSC Party or give
      any warranty or make any representation on behalf of any BSC Party.

     

    22.  NOTICE

     

    22.1  Any
      notice, report, written statement or payment to a party permitted or required
      under this Agreement shall be in writing and shall be sent by certified mail,
      return receipt requested, express delivery service, or hand delivered at the
      respective addresses set forth below, or to such other addresses as the
      respective parties may from time to time designate:

     

    Medinol
      LTD. 

    Jacob
      Richter

    Judith
      Richter

    Building
      7, Entrance A, Floor 5

    Kiryat
      Atidim

    P.O.
      Box
      58165

    Tel
      Aviv
      61581

    Israel

    

    With
      a
      copy to:

     

    
      
         

      

      
        -37-

        
          

        

      

      
         

      

    

     

    Cravath
      Swaine & Moore LLP

    Worldwide
      Plaza

    825
      Eighth Avenue

    New
      York,
      NY 10019-7475

    Attn:
      Rory O. Millson, Esq.

    

    BOSTON
      SCIENTIFIC CORPORATION 

    General
      Counsel

    One
      Boston Scientific Place 

    Natick,
      MA 01760-1537

    

    BOSTON
      SCIENTIFIC LIMITED

    General
      Counsel

    One
      Boston Scientific Place 

    Natick,
      MA 01760-1537

    

    BOSTON
      SCIENTIFIC SCIMED, INC. 

    General
      Counsel

    One
      SciMed Place

    Maple
      Grove, MN 55311-1566

    

    22.2  Any
      such
      notice, report, statement or payment under this Agreement that is sent by
      prepaid registered or certified mail, or by express delivery service, shall
      be
      deemed to have been duly made upon mailing, subject to proof of
      receipt.

     

    23.  CAPTIONS

     

    23.1  Captions
      in this Agreement are inserted only as a matter of convenience and for
      reference, and in no way define, limit or describe the scope of this Agreement
      or the intent of any provision herein.

     

    24.  OTHER
      DOCUMENTS

     

    24.1  Each
      Party agrees to execute such additional documents or instruments as are
      specifically contemplated above or as otherwise may be reasonably required
      to
      carry out the intents and purposes of this Agreement.

     

    
      
         

      

      
        -38-

        
          

        

      

      
         

      

    

     

    24.2  Each
      of
      BSC and BSL shall deliver to Medinol a copy of Form 1399, Capital Gain Notice
      and Calculation of Tax Due with respect to the BSC Equity Stake, within seven
      (7) business days after Medinol’s delivery of the information set forth in the
      last sentence of this Section 24.2. A copy of Form 1399 (blank) is attached
      as
Exhibit L
      to this
      Agreement, and such form shall be completed in a manner consistent with Section
      2.1. BSC represents that the original cost of its Medinol shares is $40 million
      and the original cost of the Medinol shares held by BSL is $9,746,195. To
      facilitate such filings Medinol agrees to provide to BSC and BSL with the amount
      of its distributable profits balances for Israeli book and tax purposes accrued
      as of January 1, 1996, February 26, 1997, January 1, 2003 and the Settlement
      Date. 

     

    25.  EXPENSES;
      TAXES

     

    25.1  Each
      Party shall pay its own expenses with respect to this Agreement and the
      transactions contemplated hereby. 

     

    25.2  Each
      Party shall pay its own taxes, whether imposed by the United States, Israel
      or
      any other government. For purposes of this Section 25.2, any tax obligation
      imposed by the United States, Israel or any other government in connection
      with
      a transaction contemplated by this Agreement shall be borne by the entity
      specified in this Agreement as the recipient of payment or
      reimbursement.

     

    25.3  (a)
      On or
      prior to the Effective Date, Medinol shall deliver to BSC Form W8BEN duly and
      validly signed by an authorized officer of Medinol, including a valid U.S.
      Taxpayer Identification Number, in the form of Exhibit
      J
      to this
      Agreement supplied by Medinol.

     

    
      
         

      

      
        -39-

        
          

        

      

      
         

      

    

     

    (b)
      Each
      Party agrees that no portion of the transactions contemplated by this Agreement
      (other than any payments, if any, made pursuant to Article 5) are subject to
      withholding under Sections 1441 or 1442 of the Internal Revenue Code of 1986,
      as
      amended, or any comparable provision of state, local or foreign law. Without
      limiting the generality of the foregoing, each Party agrees that, consistent
      with Section 3.1, the Settlement Payment shall be remitted without withholding.
      Each Party agrees that it will not take any position on any tax return or other
      filing (including all correspondence with and written and oral submissions
      to
      and communications with taxing authorities), in any audit by or other tax
      contest with the Internal Revenue Service or any other taxing authority, or
      in
      any other statement or public filing that is contrary to or inconsistent with
      the provisions of Sections 2.1, 3.1, 24.2 or the foregoing
      sentence.

     

    25.4  Each
      Party represents that it has not sought or requested a ruling, in writing or
      otherwise (a “Tax Ruling”), from any taxing authority relating to any of the
      transactions contemplated by this Agreement. No Party shall seek a Tax Ruling
      from any taxing authority with respect to any of the transactions contemplated
      by this Agreement which is inconsistent with the provisions of Sections 2.1,
      3.1, 24.2 and 25.3. Furthermore, no Party shall seek any Tax Ruling from any
      tax
      authority with respect to the transactions contemplated by this Agreement
      without first providing, on a confidential basis, a copy of such request to
      the
      other Party prior to submission to such taxing authority.

     

    25.5  In
      the
      event that:

     

    (a)  the
      Internal Revenue Service or any other taxing authority (the “Applicable Tax
      Authority”) asserts that any of the transactions contemplated by
      this

     

    
      
         

      

      
        -40-

        
          

        

      

      
         

      

    

     

    Agreement,
      or any portion thereof (other than payments made pursuant to Article 5) is
      subject to withholding under Sections 1441 or 1442 of the Internal Revenue
      Code
      of 1986, as amended, or any comparable provision of state, local or foreign
      law
      (a “Withholding Tax Issue”);

     

    (b)  either
      Party reasonably believes that it may be entitled to relief from double
      taxation, including from double taxation that would otherwise result from the
      differing characterizations of any of the transactions contemplated by this
      Agreement, or any portion thereof, by two or more taxing jurisdictions (a
“Double Taxation Issue”); or 

     

    (c)  any
      Applicable Tax Authority asserts that a Party may be liable for taxes imposed
      in
      connection with any transaction contemplated by this Agreement for which another
      Party may also be directly or indirectly liable in whole in or in part (an
      “Other Tax Issue”);

     

    then
      the
      Affected Party (as defined below) shall provide written notice to the Other
      Party of the applicable Withholding Tax Issue, Double Taxation Issue or Other
      Tax Issue and shall use all reasonable efforts to contest such Withholding
      Tax
      Issue, Double Taxation Issue or Other Tax Issue. The Affected Party and the
      Other Party shall cooperate in good faith to resolve any Withholding Tax Issue,
      Double Taxation Issue or Other Tax Issue.

     

    As
      used
      in this Article 25, the “Affected Party” means the Party to which the Applicable
      Tax Authority asserts a position giving rise to a Withholding Tax Issue or
      Other
      Tax Issue or the Party which reasonably believes that a Double Taxation Issue
      exists; and the “Other Party” means BSC, where Medinol is the Affected Party,
      and Medinol where one or more of the BSC Companies is the Affected
      Party.

     

    
      
         

      

      
        -41-

        
          

        

      

      
         

      

    

     

    25.6  If
      an
      Affected Party breaches any of the provisions of Sections 24.2, 25.3,
      25.4
      or 25.5, and such breach has a material adverse effect on the Other Party,
      then
      it shall be prohibited from asserting any claim it might otherwise have had
      against the Other Party with respect to (a) any tax liability giving
      rise
      to a Withholding Tax Issue, Double Taxation Issue or Other Tax Issue with
      respect to which the breach or breaches related, or (b) any other tax
      loss
      (or denial of a tax benefit) related to the breach or breaches.

    

    
      
         

      

      
        -42-

        
          

        

      

      
         

      

    

    

    IN
      WITNESS WHEREOF, the Parties have executed this Agreement as of the date set
      forth below.

     

    
      
        	 Dated: September __,
                2005	
                MEDINOL LTD.

                 

                /s/ 

                
                  

                

                By:

                Its: 

              
	
              	 
	Dated: September __,
                2005  	
                /s/

                
                  
Jacob
                  Richter 

              
	 	 
	Dated: September __, 2005 	
                /s/
                  
                  

                

                Judith Richter 

              
	 	 

      

      	Dated: September __,
              2005	
              BOSTON SCIENTIFIC CORPORATION

               

              /s/ 

              
                

              

              By:

              Its: 

            

      	 	 

      	Dated: September __,
              2005	
              BOSTON SCIENTIFIC LIMITED

               

              /s/ 

              
                

              

              By:

              Its: 

            

      	 	 

      	Dated: September __,
              2005	
              BOSTON SCIENTIFIC SCIMED, INC.

               

              /s/ 

              
                

              

              By:

              Its:

            

 

     

    
      
         

      

      
        -43-

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