Document:

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                                                                   Exhibit 10.15

                SUBORDINATED NOTE HOLDERS STOCKHOLDERS AGREEMENT

      This SUBORDINATED NOTE HOLDERS STOCKHOLDERS AGREEMENT (this "Agreement")
is entered into and effective as of July 10, 1997 among WGL Holdings, Inc., a
Delaware corporation (the "Company"), DLJ Merchant Banking Partners II, L.P., a
Delaware limited partnership ("DLJ Partners II"), DLJMB Funding II, Inc., a
Delaware corporation ("DLJ Funding II"), DLJ Merchant Banking Partners II-A,
L.P., a Delaware limited partnership ("DLJ Partners II-A"), DLJ Diversified
Partners, L.P., a Delaware limited partnership ("Diversified Partners"), DLJ
Diversified Partners-A, L.P., a Delaware limited partnership ("Diversified
Partners-A"), DLJ Millennium Partners, L.P., a Delaware limited partnership
("Millennium Partners"), DLJ First ESC L.L.C., a Delaware limited liability
company ("First ESC"), DLJ Offshore Partners II, C.V., a Netherlands Antilles
limited partnership ("Offshore Partners II"), DLJ EAB Partners, L.P., a Delaware
limited partnership ("EAB Partners"), UK Investment Plan 1997 Partners, a
Delaware partnership ("UK Partners"), DLJ Investment Partners, L.P., a Delaware
limited partnership ("DLJIP"), DLJ Investment Funding, Inc. ("Funding"), DLJ
First ESC L.L.C. (in its capacity as a Purchaser under the Purchase Agreement,
as hereinafter defined, "Purchaser First ESC"), The Northwestern Mutual Life
Insurance Company ("Northwestern") and Donaldson, Lufkin & Jenrette Securities
Corporation ("DLJSC") (each of DLJIP, Funding, Purchaser First ESC, Northwestern
and DLJSC being hereinafter referred to individually as a "Holder" and
collectively as the "Holders"), and each other holder of record of Common Shares
(as defined below) who may hereafter duly and properly execute a separate
agreement to be bound by the terms hereof (each DLJ Party (as hereinafter
defined), the Holders, and each other Person (as defined below) that hereafter
may become a party hereto as contemplated hereby being hereinafter referred to
individually as a "Party" and collectively as the "Parties")

                                    RECITALS

            1. The Company has authorized 100,000,000 shares of common stock,
$.001 par value per share (the "Common Shares")

            2. Concurrently herewith, DLJ, the Company, Wilson Greatbatch Ltd.,
a New York corporation ("WGL"), and

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the Individual Holders are consummating the transactions contemplated by that
certain Stock Purchase Agreement, dated as of June 19, 1997 (the "Purchase
Agreement"), pursuant to which the Company will acquire 100% of the Capital
Shares of WGL.

            3. In connection with the transactions contemplated by the Purchase
Agreement, DLJ, the Company and the Individual Holders are hereafter entering
into that certain Stockholders Agreement to be dated as of July 16, 1997 (the
"Seller Stockholders Agreement").

            4. Concurrently herewith, the Company and the Holders are entering
into (i) that certain Securities Purchase Agreement dated as of July 10, 1997
(the "Sub-Note Agreement"), pursuant to which the Company is issuing an
aggregate of 3,188,312 Common Shares of the Company in connection with a private
placement of an aggregate of $25,000,000 principal amount of the Company's 13%
Senior Subordinated Notes due 2007 (the "Notes") and (ii) that certain
Registration and Antidilution Agreement dated as of July 10, 1997 pertaining to
the Shares.

            5. In connection with the foregoing transactions, the parties hereto
are entering into this Agreement in order to define certain rights and
obligations of such parties.

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

                                    AGREEMENT

                                    ARTICLE I

                               GENERAL PROVISIONS;
                         REPRESENTATIONS AND WARRANTIES

      1.1 Certain Terms. In addition to the terms defined elsewhere herein, when
used herein the following terms shall have the meanings indicated:

            "Adverse Person" means (i) any Persons that are competitors of the
Company, directly involved in the business of designing, developing,
manufacturing, marketing,

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      selling or distributing of implantable power sources, implantable medical
devices, lithium batteries, silver vanadium oxide batteries, microvasive
surgical instruments and close-tolerance medical and aerospace miniature
components intended for commercial distribution, including (without limitation)
pacemakers, cardioverter-defibrillators and capacitors for defibrillator
applications, (ii) any Persons that are present or former customers of the
Company and (iii) any other Persons the Board of Directors reasonably designates
as such from time to time.

            "Affiliate" means, with respect to any Person, any Person
controlling, controlled by, or under common control with such Person. For the
purposes of this definition, "control" means the possession of the power to
direct or cause the direction of management and policies of such Person, whether
through the ownership of voting securities, by contract or otherwise.

            With respect to any Common Shares, "beneficial" ownership or
"beneficially" owned shall have the same meaning as in Rule 13d-3 under the
Securities Exchange Act of 1934, as amended.

            "Board of Directors" means the board of directors of the Company.

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

            "Common Share Equivalents" means (without duplication with any other
Common Shares or Common Share Equivalents) rights, warrants, options,
convertible securities, or exchangeable securities or indebtedness, or other
rights, exercisable for or convertible or exchangeable into, directly or
indirectly, Common Shares or securities convertible or exchangeable into Common
Shares, whether at the time of issuance or upon the passage of time or the
occurrence of some future event.

            "DLJ" means all of the DLJ Parties, collectively.

            "DLJ Party" means any of DLJ Partners II, DLJ Funding II, DLJ
Partners II-A, Diversified Partners,

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Diversified Partners-A, Millennium Partners, First ESC, Offshore Partners II,
EAB Partners or UK Partners.

            "DLJSC" means Donaldson, Lufkin & Jenrette Securities Corporation or
any successor thereto.

            "Fully-Diluted Common Shares" means, at any time, the then
outstanding Common Shares of the Company plus (without duplication) all Common
Shares issuable, whether at such time or upon the passage of time or the
occurrence of future events, upon the exercise, conversion or exchange of all
then-outstanding Common Share Equivalents.

            "Individual Holder" has the meaning assigned to such term in the
Seller Stockholders Agreement.

            "Permitted Transferee" means in the case of any DLJ Party, (A) any
other DLJ Party, (B) any corporation, partnership or other entity which is an
Affiliate of any DLJ Party (collectively, the "DLJ Affiliates"), (C) any
managing director, general partner, director, limited partner, officer or
employee of any DLJ Party or any DLJ Affiliate, or the heirs, executors,
administrators, testamentary trustees, legatees or beneficiaries of any of the
foregoing Persons referred to in this clause (C) (collectively, "DLJ
Associates"), (D) any trust, the beneficiaries of which, or any corporation,
limited liability company or partnership, the shareholders, members or general
or limited partners of which, include only one or more DLJ Parties, DLJ
Affiliates, DLJ Associates, their spouses or their lineal descendants and (E) a
voting trustee for one or more DLJ Parties or for one or more DLJ Affiliates or
DLJ Associates under the terms of a voting trust.

            "Person" means any natural person, corporation, limited partnership,
general partnership, joint stock company, joint venture, association, company,
trust, bank, trust company, land trust, business trust or other organization,
whether or not a legal entity, and any government or agency or political
subdivision thereof.

            "Qualified IPO" means a consummated initial public offering of
Common Shares which is underwritten on a firm commitment basis by a
nationally-recognized investment banking firm.

            "SEC" means the Securities and Exchange Commission or any successor
governmental agency.

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            "Securities Act" means the Securities Act of 1933, as amended, or
any successor federal statute, and the rules and regulations of the SEC
thereunder, all as the same shall be in effect at the time.

            "Subsidiary" means (i) any corporation or other entity a majority of
the Capital Shares of which having ordinary voting power to elect a majority of
the board of directors or other Persons performing similar functions is at the
time owned, directly or indirectly, with power to vote, by the Company or any
direct or indirect Subsidiary of the Company or (ii) a partnership in which the
Company or any direct or indirect Subsidiary is a general partner.

      1.2 Representations and Warranties.

            (a) Each Holder (as to itself only) hereby represents and warrants
to the Company and the other Parties that:

                  (i) it has full power and authority to execute, deliver and
      perform this Agreement and to consummate the transactions contemplated
      hereby, and the execution, delivery and performance by it of this
      Agreement and the consummation by it of the transactions contemplated
      hereby have been duly authorized by all necessary action;

                  (ii) this Agreement has been duly and validly executed and
      delivered by such Party and constitutes the binding obligation of such
      Party enforceable against such Party in accordance with its terms; and

                  (iii) the execution, delivery and performance by such Party of
      this Agreement and the consummation by such Party of the transactions
      contemplated hereby will not, with or without the giving of notice or the
      lapse of time, or both, (A) violate any provision of law, statute, rule or
      regulation to which it is subject, (B) violate any order, judgment or
      decree applicable to it or (C) conflict with, or result in a breach or
      default under, any term or condition of any agreement or other instrument
      to which such Party is a party or by which such Party is bound.

            (b) The Company hereby represents and warrants to each Party that:

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                  (i) it is a corporation duly organized, validly existing and
      in good standing under the laws of the State of Delaware, it has full
      corporate power and authority under its certificate of incorporation to
      execute, deliver and perform this Agreement and to consummate the
      transactions contemplated hereby, and the execution, delivery and
      performance by it of this Agreement and the consummation of the
      transactions contemplated hereby have been duly authorized by all
      necessary action;

                  (ii) this Agreement has been duly and validly executed and
      delivered by the Company and constitutes the binding obligation thereof
      enforceable against the Company in accordance with its terms; and

                  (iii) the execution, delivery and performance by the Company
      of this Agreement and the consummation by the Company of the transactions
      contemplated hereby will not, with or without the giving of notice or the
      lapse of time, or both, (A) violate any provision of law, statute, rule or
      regulation to which the Company is subject, (B) violate any order,
      judgment or decree applicable to the Company or (C) conflict with, or
      result in a breach or default under, any ten or condition of its
      certificate of incorporation or by-laws or any agreement or other
      instrument to which the Company is a party or by which it is bound.

            (c) Each DLJ Party (as to itself only) hereby represents and
warrants to the Company and the other Parties that:

                  (i) it is duly organized, validly existing and in good
      standing under the laws of its jurisdiction of incorporation or
      organization, as the case may be, it has full power and authority under
      its certificate of incorporation or other such organizational document(s)
      to execute, deliver and perform this Agreement and to consummate the
      transactions contemplated hereby, and the execution, delivery and
      performance by it of this Agreement and the consummation of the
      transactions contemplated hereby have been duly authorized by all
      necessary action;

                  (ii) this Agreement has been duly and validly executed and
      delivered by such DLJ Party and constitutes the binding obligation thereof
      enforceable

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      against such DLJ Party in accordance with its terms; and

                  (iii) the execution, delivery and performance by such DLJ
      Party of this Agreement and the consummation by such DLJ Party of the
      transactions contemplated hereby will not, with or without the giving of
      notice or the lapse of time, or both, (A) violate any provision of law,
      statute, rule or regulation to which such DLJ Party is subject, (B)
      violate any order, judgment or decree applicable to such DLJ Party or (C)
      conflict with, or result in a breach or default under, any term or
      condition of its certificate of incorporation or by-laws (or such other
      comparable organizational and governing document(s), as the case may be)
      or any agreement or other instrument to which such DLJ Party is a party or
      by which it is bound.

                                   ARTICLE II

                           MANAGEMENT OF THE COMPANY;
                            ACTIVITIES OF THE PARTIES

      2.1 Board of Directors. The Parties and the Company shall take all action
within their respective power, including, but not limited to, the voting of
Capital Shares of the Company (to the extent that any such Person holds Capital
Shares of the Company entitled to vote thereon), required to cause the Board of
Directors to at all times consist of seven (7) directors (or such greater number
as the DLJ Parties shall select), one of whom shall be the Chief Executive
Officer of the Company. At any time DLJIP owns $6,250,000 or more in principal
amount of the Notes, DLJIP shall have the right to designate an observer (the
"DLJIP Observer") who shall be entitled to attend all meetings of the Board of
Directors and to receive any notice delivered with respect to any such meeting.
The Company shall pay all reasonable travel and other such expenses actually
incurred by the DLJIP Observer in connection with the DLJIP Observer's
attendance at any meetings of the Board of Directors.

      2.2 Election of Director Designated by Individual Holders. So long as the
Individual Holders collectively own beneficially in the aggregate at least three
percent (3%) of the Fully-Diluted Common Shares, each Holder, DLJ and each

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Permitted Transferee (if any) shall take all action within its power, including,
but not limited to, the voting of Capital Shares of the Company (to the extent
that any such Person holds Capital Shares of the Company entitled to vote
thereon), required to cause the Board of Directors to include either (a)
Lawrence A. Maciariello or (b) with the consent of DLJ Partners II (which
consent shall not be unreasonably withheld), one director designated by the
Individual Holders and Permitted Individual Holder Transferees (if any) then
owning beneficially a majority of the aggregate Fully-Diluted Common Shares then
held by all Individual Holders and Permitted Individual Holder Transferees (if
any).

      2.3 Election of Directors Designated by DLJ Partners II. Each Holder shall
take all action within its power, including, but not limited to, the voting of
Capital Shares of the Company (to the extent that any such Person holds Capital
Shares of the Company entitled to vote thereon), required to cause the Board of
Directors to include a number of directors designated by DLJ Partners II, or its
successor in interest, equal to up to (i) one less than the maximum number of
directors then comprising the Board of Directors so long as Section 2.2 hereof
remains in effect or (ii) the maximum number of directors then comprising the
Board of Directors if DLJ and its Permitted Transferees are not required to vote
its Capital Shares in favor of a director designated by the Individual Holders
pursuant to Section 2.2 hereof.

      2.4 Replacement of Designated Directors. In the event that any director (a
"Withdrawing Director") designated in the manner set forth in Section 2.2 or 2.3
is unable to serve, or once having commenced to serve, is removed or withdraws
from the Board of Directors, such Withdrawing Director's replacement (the
"Substitute Director") on the Board of Directors (and, if applicable, any
executive or similar committee thereof) shall be designated in accordance with
Section 2.2 or 2.3, as applicable. The Company and each of the Parties agrees to
take all action within its power, including, but not limited to, (i) the voting
of Capital Shares of the Company (to the extent that any such Person holds
Capital Shares of the Company entitled to vote thereon) to cause the election of
such Substitute Director as soon as practicable following his or her designation
and (ii) the instructing of any director it had previously designated to serve
as a member of the Board of Directors, as the first order of business at the
first meeting thereof

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after such Substitute Director has been so designated, to vote to seat such
designated Substitute Director as a director in place of the Withdrawing
Director.

      2.5 Termination. Notwithstanding anything to the contrary in this Article
II, at any time after the consummation of a Qualified IPO, in the event that any
Holder transfers any Common Shares to any transferee in accordance with this
Agreement, such Common Shares shall thereafter be free from the voting
agreements set forth in this Article II and no longer subject thereto.

                                   ARTICLE III

                             TRANSFER OF SECURITIES

      3.1 Transfer of Shares. No Holder may transfer any Capital Shares to any
Adverse Person, except pursuant to a transfer contemplated by Section 3.2 or 3.3
hereof.

      3.2 Right of Participation.

            (a) If one or more DLJ Parties and/or Permitted Transferees (if any)
propose to sell Common Shares or Common Share Equivalents for value (such DLJ
Parties and any such Permitted Transferees being referred to herein as a
"Transferor") in one transaction or a series of related transactions, but
excluding (a) a sale which is pursuant to a Qualified IPO or (b) any sale in
which all of the Parties agree to participate, then such Transferor shall offer
(the "Participation Offer") to include in the proposed sale a number of Common
Shares or Common Shares represented by Common Share Equivalents designated by
any of the Parties, not to exceed, in respect of any such Party, the number of
Common Shares equal to the product of (i) the aggregate number of Common Shares
or Common Shares represented by Common Share Equivalents to be sold to the
proposed transferee and (ii) a fraction, the numerator of which is equal to the
number of Fully-Diluted Common Shares held by such Party and the denominator of
which is equal to the number of Fully-Diluted Common Shares. The Transferor
shall give written notice to each Party of the Participation Offer (the
"Transferor's Notice") at least 20 days prior to the proposed sale. The
Transferor's Notice shall specify the proposed transferee, the number of Common
Shares or Common Shares represented by Common Share Equivalents and, if
applicable, the class or classes of Common Shares to be sold

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to such transferee, the amount and type of consideration to be received
therefor, and the place and date on which the sale is to be consummated. Each
Party who wishes to include Common Shares or Common Share Equivalents in the
proposed sale in accordance with the terms of this Section 3.2 shall so notify
the Transferor not more than 20 days after the date of the Transferor's Notice.
The Participation Offer shall be conditioned upon the Transferor's sale of
Common Shares or Common Share Equivalents pursuant to the transactions
contemplated in the Transferor's Notice with the transferee named therein. If
any Party accepts the Participation Offer, the Transferor shall reduce to the
extent necessary the number of Common Shares or Common Share Equivalents it
otherwise would have sold in the proposed sale so as to permit other Parties who
have accepted the Participation Offer to sell the number of Common Shares or
Common Share Equivalents that they are entitled to sell under this Section 3.2,
and the Transferor and such other Party or Parties shall sell the number of
Common Shares or Common Share Equivalents specified in the Participation Offer
to the proposed transferee in accordance with the terms of such sale set forth
in the Transferor's Notice.

            (b) The provisions of this Section 3.2 shall terminate upon the
consummation of a Qualified IPO.

      3.3 Drag-Along Rights.

            (a) Notwithstanding any other provision in this Article III, if one
or more DLJ Parties (such DLJ Parties being referred to herein as the "Seller")
propose to sell fifty percent (50%) or more of the Common Shares and Common
Share Equivalents held by DLJ at the time of such sale ("Sale Shares") to a
third party or parties which is not an Affiliate of DLJ (a "Third Party")
pursuant to a Bona Fide Offer (as defined below), then Seller shall have the
right, subject to the provisions of this Section 3.3, to require all other
Parties that are not DLJ Parties (collectively, the "Co-Sellers") to include in
such sale (a "Required Sale"), by delivering notice (the "Required Sale Notice")
to such other Parties, a number of the Common Shares and Common Share
Equivalents held by the Co-Sellers (the "Co-Sellers' Shares") equal to, with
respect to each Co-Seller, the number of Common Shares and Common Shares
represented by Common Share Equivalents held by such Co-Seller multiplied by a
fraction, the numerator of which is the number of Common Shares represented by
the Sale Shares and the denominator of which is the number of Common Shares and

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Common Shares represented by Common Share Equivalents held by Seller on the date
of such Required Sale Notice (the "Notice Date")

            (b) The Required Sale Notice shall set forth: (i) the Notice Date,
(ii) the name and address of the Third Party, (iii) the proposed amount and type
of consideration to be paid per Common Shares for the Sale Shares (the "Sale
Price"), and the terms and conditions of payment offered by the Third Party in
reasonable detail, together with written proposals or agreements, if any, with
respect thereto, (iv) the aggregate number of Sale Shares, (v) confirmation that
Seller is selling fifty percent (50%) or more of the aggregate number of
Fully-Diluted Common Shares then held by DLJ to a Third Party, (vi) the
aggregate number of Common Shares and Common Shares represented by Common Share
Equivalents held by DLJ on the Notice Date and (vii) the proposed date of the
Required Sale (the "Required Sale Date"), which shall be not less than 30 nor
more than 180 days after the Notice Date.

            (c) The Co-Sellers shall cooperate in good faith with Seller in
connection with consummating the Required Sale (including, without limitation,
the giving of consents and the voting of any Common Shares of the Company held
by the Co-Sellers to approve such Required Sale); provided, however, that in the
event of any such Required Sale, the Co-Sellers will not be required to make any
representations, warranties or indemnities in connection therewith except for
representations and warranties as to title to the Common Shares and Common Share
Equivalents to be sold by Co-Seller pursuant to the Required Sale. On the
Required Sale Date, the Co-Sellers shall deliver, free and clear of all liens,
claims or encumbrances, a certificate or certificates and/or other instrument or
instruments for all of its respective Co-Sellers' Shares, duly endorsed and in
proper form for transfer, with the signature guaranteed, to such Third Party in
the manner and at the address indicated in the Required Sale Notice and Seller
shall cause each Co-Seller's share of the purchase price to be paid to such
Co-Seller.

            (d) "Bona Fide Offer" shall mean an offer (whether in the form of a
purchase of Common Shares, merger, recapitalization, or otherwise) for Common
Shares.

            (e) The provisions of this Section 3.3 shall terminate upon the
consummation of a Qualified IPO.

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      3.4 Prohibited Transfers. Any purported transfer of Common Shares and/or
Common Share Equivalents by a Party which is not permitted by the provisions of
Section 3.1, 3.2 or 3.3, or which is in violation of such provisions, shall be
void and of no force and effect whatsoever.

      3.5 Certain Events Not Deemed Transfers. Except as contemplated by Section
3.3, in no event shall any of the following constitute a transfer of Common
Shares for purposes of Section 3.1, 3.2 or 3.3 or be subject to the terms
hereof: (a) an exchange, reclassification or other conversion of Common Shares
into any cash, securities or other property pursuant to a merger, consolidation
or recapitalization of the Company or any Subsidiary with, or a sale or transfer
by the Company or any Subsidiary of all or substantially all its assets to, any
Person or (b) a conversion of outstanding Common Share Equivalents into Common
Shares in accordance with the terms thereof.

      3.6 Transfers Subject to Compliance with Securities Act. No Common Shares
may be transferred by a Holder (other than (i) to one or more Affiliates of such
Party, (ii) pursuant to an effective registration statement under the Securities
Act, (iii) pursuant to and in compliance with Rule 144A under the Securities
Act, (iv) to an institutional "accredited investor" (as defined in Rule 501(a)
(1), (2), (3) or (7) under the Securities Act) or (v) outside the United States
to a "foreign person" in compliance with Rule 904 of Regulation S under the
Securities Act), provided, that in the case of a transfer pursuant to clause
(iii) (iv) or (v), the transferring Party shall deliver a certificate to the
Company properly completed in the form annexed hereto as Exhibit B, unless such
Party first delivers to the Company an opinion of counsel, which opinion and
counsel shall be reasonably satisfactory to the Company, to the effect that such
transfer is not required to be registered under the Securities Act.

      3.7 Permitted Transferees.

            (a) Notwithstanding anything in this Agreement to the contrary, any
DLJ Party or any permitted Transferee may, without the consent of the Company or
any of the Parties and without compliance with Section 3.1, 3.2 or 3.3, at any
time transfer any or all of its Common Shares and Common Share Equivalents to
one or more permitted Transferees, so long as the transfer to such Person is not
in violation of applicable federal or state securities laws, and such

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Person(s), by accepting such Common Shares and/or Common Share Equivalents,
shall be deemed to have agreed to be bound by the terms of this Agreement on the
same terms as DLJ generally. In the event that any DLJ Party or any Permitted
Transferee transfers any Common Shares and/or Common Share Equivalents to any
transferee other than a Permitted Transferee or any Person which is a Party to
this Agreement, such Common Shares and/or Common Share Equivalents, as the case
may be, shall thereafter be free from the restrictions set forth in this
Agreement and no longer subject thereto and such transferee shall have no rights
hereunder, and the definition of Party hereunder shall not include such
transferee.

            (b) Notwithstanding anything in this Agreement to the contrary, upon
the death of any Party who is a natural person, the transfer of any or all of
its Common Shares and/or Common Share Equivalents to one or more of such Party's
legatees, heirs or trustees of a testamentary trust, or to an executor or
administrator of the estate of such deceased Party incident to guardianship or
probate proceedings involving such estate shall not require the consent of the
Company or any of the Parties and shall not be subject to compliance with
Section 3.1, 3.2, 3.3 or 3.4 so long as (i) such heir shall have agreed in
writing to be bound by the terms of this Agreement and (ii) the transfer to such
heir is not in violation of applicable federal or state securities laws.

      3.8 Holders Transfers. Any Person(s) to whom any Holder transfers Common
Shares or Common Share Equivalents, by accepting such Common Shares and/or
Common Share Equivalents, shall be deemed to have agreed to be bound by the
terms of this Agreement (on the same terms as the Holder).

                                   ARTICLE IV

                                   TERMINATION

      4.1 Termination. This Agreement shall terminate upon the earlier of (i)
the dissolution, liquidation or winding-up of the Company or (ii) the date on
which DLJ and all Permitted Transferees collectively are no longer the
beneficial owner of at least five percent (5%) of the Fully-Diluted Common
Shares. A Person who ceases to hold any Common Shares or Common Share
Equivalents and who ceases

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to beneficially own any Common Shares or Common Share Equivalents shall cease to
be a Party and shall have no further rights or obligations under this Agreement.

                                    ARTICLE V

                                  MISCELLANEOUS

      5.1 Amendment. Any provision of this Agreement may be altered,
supplemented, amended, or waived only by the written consent of each of (i) the
Company and (ii) all of the Parties, except that any Party may unilaterally
waive any of its rights hereunder so long as such waiver is in writing.

      5.2 Specific Performance. The Parties and the Company recognize that the
obligations imposed on them in this Agreement are special, unique, and of
extraordinary character, and that in the event of breach by any party, damages
will be an insufficient remedy; consequently, it is agreed that the Parties and
the Company may have specific performance and injunctive relief (in addition to
damages) as a remedy for the enforcement hereof, without proving damages.

      5.3 Assignment. Except as otherwise expressly provided herein, the terms
and conditions of this Agreement shall inure to the benefit of and be binding
upon the respective successors and assigns of the Parties and the Company. No
such assignment shall relieve the assignor from any liability hereunder. Any
purported assignment made in violation of this Section 5.3 shall be void and of
no force and effect.

      5.4 Shares Subject to this Agreement. All Common Shares and Common Share
Equivalents now owned or hereafter acquired by any of the Parties shall be
subject to, and entitled to the benefits of, the terms of this Agreement.

      5.5 Legends.

            (a) Each certificate for Common Shares and Common Share Equivalents
held by any Person a party hereto shall include a legend in substantially the
following form:

            THIS SECURITY IS SUBJECT TO CERTAIN VOTING AGREEMENTS, RESTRICTIONS
            ON TRANSFER, AND

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            OTHER TERMS AND CONDITIONS SET FORTH IN THE SUBORDINATED NOTE
            HOLDERS STOCKHOLDERS AGREEMENT, DATED AS OF JULY 10, 1997, AS THE
            SAME MAY BE AMENDED FROM TIME TO TIME, A COPY OF WHICH MAY BE
            OBTAINED FROM THE COMPANY AT ITS PRINCIPAL EXECUTIVE OFFICES.

            (b) A restriction on transfer of Common Shares and Common Share
Equivalents set forth in such legend (a "Restriction") shall cease and terminate
as to any particular Common Shares or Common Share Equivalents when, in the
opinion of the Company and counsel reasonably satisfactory to the Company (which
opinion shall be delivered to the Company in writing), such Restriction is no
longer required. Whenever such Restriction shall cease and terminate as to any
Common Shares or Common Share Equivalents, the holder thereof shall be entitled
to receive from the Company, without expense to such holder, new certificate(s)
not bearing a legend stating such Restriction.

      5.6 Notices. Any and all notices, designations, consents, offers,
acceptances or other communications provided for herein (each a "Notice") shall
be given in writing by overnight courier, telegram or telecopy which shall be
addressed, or sent, to the respective addresses as follows (or such other
address as the Company or any Party may specify to the Company and all other
Parties by Notice):

The Company:

WGL Holdings, Inc.
10,000 Wehrle Drive
Clarence, New York 14031
Attention: President
Telecopy No.: (716) 759-5527

DLJ Parties:

DLJ Partners II
DLJ Merchant Banking Partners II, L.P.
277 Park Avenue
New York, New York 10172
Attention:  Nicole Arnaboldi/Ivy Dodes
Telecopy No.: (212) 892-7272

                                       15
<PAGE>

DLJ Funding II
DLJMB Funding II, Inc.
277 Park Avenue
New York, New York 10172
Attention:  Nicole Arnaboldi/Ivy Dodes
Telecopy No.:    (212) 892-7272

DLJ Partners II-A
DLJ Merchant Banking Partners II-A, L.P.
277 Park Avenue
New York, New York 10172
Attention:  Nicole Arnaboldi/Ivy Dodes
Telecopy No.:    (212) 892-7272

Diversified Partners
DLJ Diversified Partners, L.P.
277 Park Avenue
New York, New York 10172
Attention:  Ivy Dodes/Nicole Arnaboldi
Telecopy No.:    (212) 892-7272

Diversified Partners-A
DLJ Diversified Partners-A, L.P.
277 Park Avenue
New York, New York 10172
Attention:  Ivy Dodes/Nicole Arnaboldi
Telecopy No.:    (212) 892-7272

Millennium Partners
DLJ Millennium Partners, L.P.
c/o DLJ Merchant Banking II, Inc.
277 Park Avenue
New York, New York 10172
Attention:  Ivy Dodes/Nicole Arnaboldi
Telecopy No.:   (212) 892-7272

First ESC
DLJ First ESC L.L.C.
c/o DLJ LBO Plans Management Corporation
277 Park Avenue
New York, New York 10172
Attention:  Ivy Dodes/Nicole Arnaboldi
Telecopy No.:   (212) 892-7272

                                       16
<PAGE>

Offshore Partners II
DLJ Offshore Partners II, C.V.
c/o DLJ Offshore Management N.V.
John B. Gorsiraweg 14
Willemstad, Curacao
Netherlands, Antilles
Telecopy No.: 011-59-99-614-129

EAB Partners
DLJ EAB Partners, L.P.
c/o DLJ LBO Plans Management Corporation
277 Park Avenue
New York, NY 10172
Attention:  Ivy Dodes/Nicole Arnaboldi
Telecopy No.:  (212) 892-7272

UK Partners
UK Investment Plan 1997 Partners
2121 Avenue of the Stars
Fox Plaza, Suite 3000
Los Angeles, CA 90067
Attention:  Osamu Watanabe
Telecopy No.:  (310) 282-6178

in each case with a copy to:

Steven D. Rubin, Esq.
Weil, Gotshal & Manges LLP
700 Louisiana, Suite 1600
Houston, Texas 77002
Telecopy No.:  (713) 224-9511

Holders:

DLJIP
DLJ Investment Partners, L.P.
c/o DLJ Investment Funding, Inc.
277 Park Avenue
New York, New York 10172
Attention:  John Moriarty, Jr./Ivy Dodes
Telecopy No.:  (212) 892-7272

Funding
DLJ Investment Funding, Inc.
277 Park Avenue
New York, New York 10172
Attention:  John Moriarty, Jr./Ivy Dodes
Telecopy No.:  (212) 892-7272

                                       17
<PAGE>

Purchaser First ESC

DLJ First ESC L.L.C.
c/o DLJ LBO Plans Management Corporation
277 Park Avenue
New York, New York 10172
Attention:  Ivy Dodes/Nicole Arnaboldi
Telecopy No.:  (212) 892-7272

Northwestern
The Northwestern Mutual Life Insurance Company
720 East Wisconsin Avenue
Milwaukee, Wisconsin 53202
Attention:  Investment Operations
Telecopy No.:  (414) 299-5714

DLJSC

Donaldson, Lufkin & Jenrette Securities Corporation
277 Park Avenue
New York, New York 10172
Attention: ____________________
Telecopy No.: _________________

with a copy to:

John Schuster, Esq.
Cahill Gordon & Reindel
Eighty Pine Street
New York, New York 10005-1702
Telecopy No.:    (212) 269-5420

Each Other Party:

To such address or telecopy number as such Party provides by Notice to the
Company and all other Parties or, if such address is not so provided, to such
Party's address as is reflected on the stock transfer records of the Company at
such time.

All Notices shall be deemed effective and received (a) if given by telecopy,
when such telecopy is transmitted to the telecopy number specified above and
receipt thereof is confirmed; (b) if given by overnight courier, on the business
day immediately following the day on which such Notice is delivered to a
reputable overnight courier service; or (c) if given by telegram, when such
Notice is delivered at the address specified above. No Party shall be

                                       18
<PAGE>

entitled to receive a Notice hereunder (or a copy of a Notice delivered to the
Company) if, at the time such Notice is to be sent, such Party (including its
Affiliates and the employees of such Party and its Affiliates) no longer owns
any Common Shares.

      5.7 Confidentiality. The Parties shall, and shall cause their respective
officers, directors, employees and agents and the respective subsidiaries and
Affiliates of the Parties and their respective officers, directors, employees
and agents to, hold confidential and not use in any manner detrimental to the
Company or any of its Subsidiaries all information they may have or obtain
concerning the Company or any of its Subsidiaries and their respective assets,
business, operations or prospects ("Confidential Information"); provided,
however, that the foregoing shall not apply to (a) information that is or
becomes generally available to the public other than as a result of a disclosure
by a Party or any of its employees, agents, accountants, legal counsel or other
representatives, (b) information that is or becomes available to a Party or any
of its employees, agents, accountants, legal counsel or other representatives on
a nonconfidential basis prior to its disclosure by the Company or its employees,
agents, accountants, legal counsel or other representatives, and (c) information
that is required to be disclosed by a Party or any of its employees, agents,
accountants, legal counsel or other representatives as a result of any
applicable law, rule or regulation of any governmental authority or stock
exchange. If any Party desires to sell Common Shares or Common Share Equivalents
and in connection with such potential sale desires to disclose information
regarding the Company to the potential purchaser in such sale which it is not
permitted to disclose pursuant to the preceding sentence, such Party shall
notify the Company of such Party's desire to disclose such information and shall
identify the potential purchaser in such notification. The Company may require
any such potential purchaser of Common Shares or Common Share Equivalents to
enter into a confidentiality agreement with respect to Confidential Information
on customary terms used in confidentiality agreements in connection with
corporate acquisitions.

      5.8 Exclusive Financial Advisor and Investment Banking Advisor. During the
five-year period beginning on the date hereof, DLJSC, or any Affiliate of DLJSC
that DLJ Partners II or DLJSC may choose, in their sole and absolute discretion,
shall be engaged as the exclusive financial and

                                       19
<PAGE>

investment banking advisor for the Company and its subsidiaries pursuant to the
terms of an agreement substantially in the form of the agreement attached hereto
as Exhibit A hereto.

      5.9 Counterparts. This Agreement may be executed in two or more
counterparts and each counterpart shall be deemed to be an original and all such
counterparts together shall constitute one and the same agreement of the parties
hereto.

      5.10 Section Headings. Headings contained in this Agreement are inserted
only as a matter of convenience and in no way define, limit or extend the scope
or intent of this Agreement or any provisions hereof.

      5.11 Choice of Law. This Agreement, including, without limitation, the
interpretation, construction, validity and enforceability thereof, shall be
governed by the internal laws of the State of New York including Section 5-1401
of the General Obligations Law of the State of New York without regard to the
principles of conflict of laws thereof.

      5.12 Entire Agreement. This Agreement contains the entire understanding of
the parties hereto respecting the subject matter hereof and supersedes all prior
agreements, discussions and understandings with respect thereto.

      5.13 Cumulative Rights. The rights of the Parties and the Company under
this Agreement are cumulative and in addition to all similar and other rights of
the parties under other agreements.

      5.14 Severability. If any term, provision, covenant, or restriction of
this Agreement is held by a court of competent jurisdiction to be invalid, void
or unenforceable, the remainder of the terms, provisions, covenants and
restrictions of this Agreement shall remain in full force and effect and shall
in no way be affected, impaired or invalidated.

      5.15 Submission to Jurisdiction. (a) Any legal action or proceeding with
respect to this Agreement, the Common Shares or any document related thereto may
be brought in the courts of the State of New York or of the United States of
America for the Southern District of New York, and, by execution and delivery of
this Agreement, the Company and each Party hereby accepts for itself and in
respect of its

                                       20
<PAGE>

property, generally and unconditionally, the jurisdiction of the aforesaid
courts. The parties hereto hereby irrevocably waive any objection, including,
without limitation, any objection to the laying of venue or based on the grounds
of forum non conveniens, which any of them may now or hereafter have to the
bringing of any such action or proceeding in such respective jurisdictions.

            (b) The Company and each Party irrevocably consent to the service of
process of any of the aforesaid courts in any such action or proceeding by the
mailing of copies thereof by registered or certified mail, postage prepaid, to
the Company or such Party, respectively, at its address provided herein.

            (c) Nothing contained in this Section 5.15 shall affect the right of
any party hereto to serve process in any other manner permitted by law.

      5.16 Waiver of Jury Trial. Each of the parties hereto waives any right it
may have to trial by jury in respect of any litigation based on, or arising out
of, under or in connection with this Agreement, any Common Shares or Common
Share Equivalents or any course of conduct, course of dealing, verbal or written
statement or action of any party hereto.

                   [SIGNATURES CONTAINED ON SUCCEEDING PAGES]

                                       21
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date first above written.

                                WGL Holdings, Inc.

                                By: /s/ David M. Wittels
                                   ---------------------------------------------
                                        David M. Wittels
                                        President

                                DLJ MERCHANT BANKING PARTNERS II, L.P.

                                        By:     DLJ MERCHANT BANKING II, INC.
                                                Managing General Partner

                                        By: /s/ David M. Wittels
                                           -------------------------------------
                                        Name:   David M. Wittels
                                             -----------------------------------
                                        Title:  Attorney-in-Fact
                                              ----------------------------------

                                DLJB FUNDING II, INC.

                                By: /s/ David M. Wittels
                                   ---------------------------------------------
                                Name:      David M. Wittels
                                     -------------------------------------------
                                Title:     Attorney-in-Fact
                                      ------------------------------------------

                                DLJ MERCHANT BANKING PARTNERS II-A, L.P.

                                By:     DLJ MERCHANT BANKING II, INC.
                                        Managing General Partner

                                        By: /s/ David M. Wittels
                                           -------------------------------------
                                        Name:   David M. Wittels
                                             -----------------------------------
                                        Title:  Attorney-in-Fact
                                              ----------------------------------

                                       22
<PAGE>

                                DLJ DIVERSIFIED PARTNERS, L.P.

                                        By:     DLJ DIVERSIFIED PARTNERS, INC.

                                        By: /s/ David M. Wittels
                                           -------------------------------------
                                        Name:   David M. Wittels
                                             -----------------------------------
                                        Title:  Attorney-in-Fact
                                              ----------------------------------

                                DLJ DIVERSIFIED PARTNERS-A, L.P.

                                        By:     DLJ DIVERSIFIED PARTNERS, INC.

                                        By: /s/ David M. Wittels
                                           -------------------------------------
                                        Name:   David M. Wittels
                                             -----------------------------------
                                        Title:  Attorney-in-Fact
                                              ----------------------------------

                                DLJ MILLENNIUM PARTNERS, L.P.

                                        By:     DLJ MERCHANT BANKING II, INC.

                                        By: /s/ David M. Wittels
                                           -------------------------------------
                                        Name:   David M. Wittels
                                             -----------------------------------
                                        Title:  Attorney-in-Fact
                                              ----------------------------------

                                DLJ FIRST ESC L.L.C.

                                        By:     DLJ LBO PLANS MANAGEMENT
                                                   CORPORATION
                                                As Manager

                                        By: /s/ David M. Wittels
                                           -------------------------------------
                                        Name:   David M. Wittels
                                             -----------------------------------
                                        Title:  Attorney-in-Fact
                                              ----------------------------------

                                       23
<PAGE>

                                DLJ OFFSHORE PARTNERS II, C.V.

                                        By:     DLJ MERCHANT BANKING II, INC.
                                                   Managing General Partner

                                        By: /s/ David M. Wittels
                                           -------------------------------------
                                        Name:   David M. Wittels
                                             -----------------------------------
                                        Title:  Attorney-in-Fact
                                              ----------------------------------

                                DLJ EAB PARTNERS, L.P.

                                        By:     DLJ LBO PLANS MANAGEMENT
                                                CORPORATION

                                        By: /s/ David M. Wittels
                                           -------------------------------------
                                        Name:   David M. Wittels
                                             -----------------------------------
                                        Title:  Attorney-in-Fact
                                              ----------------------------------

                                UK INVESTMENT PLAN 1997 PARTNERS

                                        By:     DONALDSON, LUFKIN & JENRETTE,
                                                INC.

                                        By: /s/ David M. Wittels
                                           -------------------------------------
                                        Name:   David M. Wittels
                                             -----------------------------------
                                        Title:  Attorney-in-Fact
                                              ----------------------------------

                                       24
<PAGE>

                                DLJ INVESTMENT PARTNERS, L.P.

                                By:     DLJ Investment Partners, Inc.,
                                        General Partner

                                        By: /s/ John M. Moriarty, Jr.
                                           -------------------------------------
                                        Name:   John M. Moriarty, Jr.
                                             -----------------------------------
                                        Title:  Managing Director
                                              ----------------------------------

                                       25
<PAGE>

                                        DLJ INVESTMENT FUNDING, INC.

                                        By: /s/ Thomas E. Siegler
                                           -------------------------------------
                                        Name:   Thomas E. Siegler
                                             -----------------------------------
                                        Title:  Secretary
                                              ----------------------------------

                                       26
<PAGE>

                                DLJ FIRST ESC L.L.C.

                                        By:     DLJ LBO PLANS MANAGEMENT
                                                  CORPORATION
                                                As Manager

                                        By: /s/ Ed Poletti
                                           -------------------------------------
                                        Name:   Ed Poletti
                                             -----------------------------------
                                        Title:  Vice President
                                              ----------------------------------

                                       27
<PAGE>

                                        THE NORTHWESTERN MUTUAL LIFE INSURANCE
                                        COMPANY

                                        By: /s/ A. Kipp Koester
                                           -------------------------------------
                                        Name:   A. Kipp Koester
                                             -----------------------------------
                                        Title:  Vice President
                                              ----------------------------------

                                       28
<PAGE>

                                        DONALDSON, LUFKIN & JENRETTE SECURITIES
                                        CORPORATION

                                        By: /s/ Thomas E. Siegler
                                           -------------------------------------
                                        Name:   Thomas E. Siegler
                                             -----------------------------------
                                        Title:  Senior Vice President
                                              ----------------------------------

                                       29
<PAGE>

                                   SCHEDULE I

      This Schedule I is a part of and is incorporated into that certain letter
agreement (together, the "Agreement") dated July 10, 1997 by and between WGL
Holdings, Inc. (which together with its subsidiaries is hereinafter referred to
as the "Company") and Donaldson, Lufkin & Jenrette Securities Corporation
("DLJ").

      The Company will indemnify and hold harmless DLJ and its affiliates, and
the respective directors, officers, agents and employees of DLJ and its
affiliates (other than the Company) (DLJ and each such entity or person, an
"Indemnified Person"), from and against any losses, claims, damages, judgments,
assessments, costs and other liabilities (collectively, "Liabilities"), and will
reimburse each Indemnified Person for all fees and expenses (including the
reasonable fees and expenses of counsel) (collectively, "Expenses") as they are
incurred in investigating, preparing, pursuing or defending any claim, action,
proceeding or investigation, whether or not in connection with pending or
threatened litigation and whether or not any Indemnified Person is a party
(collectively, "Actions"), arising out of or in connection with advice or
services rendered or to be rendered by any Indemnified Person pursuant to this
Agreement, the transactions contemplated hereby or any Indemnified Person's
actions or inactions in connection with any such advice, services or
transactions; provided that the Company will not be responsible for any
Liabilities or Expenses of any Indemnified Person that are determined by a
judgment of a court of competent jurisdiction which is no longer subject to
appeal or further review to have resulted solely from such Indemnified Person's
gross negligence or willful misconduct in connection with any of the advice,
actions, inactions or services referred to above. The Company also agrees to
reimburse each Indemnified Person for all Expenses as they are incurred in
connection with enforcing such Indemnified Person's rights under this Agreement
(including, without limitation, its rights under this Schedule I).

      Upon receipt by an Indemnified Person of actual notice of an Action
against such Indemnified Person with respect to which indemnity may be sought
under this Agreement, such Indemnified Person shall promptly notify the Company
in writing; provided that failure so to notify the Company shall not relieve the
Company from any liability which the Company may have on account of this
indemnity or otherwise, except to the extent the Company shall have been
materially prejudiced by such failure. The Company shall, if requested by DLJ,
assume the defense of any such Action including the employment of counsel
reasonably satisfactory to DLJ. Any Indemnified Person shall have the right to
employ separate counsel in any such action and participate in the defense
thereof, but the fees and expenses of such counsel shall be at the expense of
such Indemnified Person, unless: (i) the Company has failed promptly to assume
the defense and employ counsel or (ii) the named parties to any such Action
(including any impleaded parties) include such Indemnified Person and the
Company, and such Indemnified Person shall have been advised by counsel that
there may be one or more legal defenses available to it which are different from
or in addition to those available to the Company; provided that the Company
shall not in such event be responsible hereunder for the fees and expenses of
more than one firm of separate counsel in connection with any Action in the same
jurisdiction, in addition to any local counsel. The Company shall not be liable
for any settlement of any Action effected without its written consent. In
addition, the Company will not, without prior written consent of DLJ, settle,
compromise or consent to the entry of any judgment in or otherwise seek to
terminate any pending or threatened Action in respect of which indemnification
or contribution may be sought hereunder (whether or not any Indemnified

<PAGE>

Person is a party thereto) unless such settlement, compromise, consent or
termination includes an unconditional release of each Indemnified Person from
all Liabilities arising out of such Action.

      In the event the foregoing indemnity is unavailable to an Indemnified
Person [other than] in accordance with this Agreement, the Company shall
contribute to the Liabilities and Expenses paid or payable by such Indemnified
Person in such proportion as is appropriate to reflect (i) the relative benefits
to the Company and its shareholders, on the one hand, and to DLJ, on the other
hand, of the matters contemplated by this Agreement or (ii) if the allocation
provided by the immediately preceding clause is not permitted by the applicable
law, not only such relative benefits but also the relative fault of the Company,
on the one hand, and DLJ, on the other hand, in connection with the matters as
to which such Liabilities or Expenses relate, as well as any other relevant
equitable considerations; provided that in no event shall the Company contribute
less than the amount necessary to ensure that all Indemnified Persons, in the
aggregate, are not liable for any Liabilities and Expenses in excess of the
amount of fees actually received by DLJ pursuant to the Agreement. For purposes
of this paragraph, the relative benefits to the Company and its shareholders, on
the one hand, and to DLJ, on the other hand, of the matters contemplated by the
Agreement shall be deemed to be in the same proportion as (a) the total value
paid or contemplated to be paid or received or contemplated to be received by
the Company or the Company's shareholders, as the case may be, in the
transaction or transactions that are within the scope of the Agreement, whether
or not any such transaction is consummated, bears to (b) the fees paid or to be
paid to DLJ under the Agreement.

      The Company also agrees that no Indemnified Person shall have any
liability (whether direct or indirect, in contract or tort or otherwise) to the
Company for or in connection with advice or services rendered or to be rendered
by any Indemnified Person pursuant to this Agreement, the transactions
contemplated hereby or any Indemnified Person's actions or inactions in
connection with any such advice, services or transactions except for Liabilities
(and related Expenses) of the Company that are determined by a judgment of a
court of competent jurisdiction which is no longer subject to appeal or further
review to have resulted solely from such Indemnified Person's gross negligence
or willful misconduct in connection with any such advice, actions, inactions or
services.

      The reimbursement, indemnity and contribution obligations of the Company
set forth herein shall apply to any modification of this Agreement and shall
remain in full force and effect regardless of any termination of, or the
completion of any Indemnified Person's services under or in connection with,
this Agreement.

<PAGE>

                                    EXHIBIT B

                 [FORM OF SECURITIES ACT COMPLIANCE CERTIFICATE]

                                       31
<PAGE>

                                   CERTIFICATE

To: WGL Holdings, Inc. ("Holdings" or the "Company")

            In connection with a proposal transfer of shares of Common Stock,
par value $.001 per share, of Holdings (the "Shares") occurring prior to the
date of the declaration by the Securities and Exchange Commission ("SEC") of the
effectiveness of a registration statement under the Securities Act of 1933, as
amended (the "Securities Act") covering resales of such shares (which
effectiveness shall not have been suspended or terminated at the date of the
transfer), the undersigned confirms that it has not utilized any general
solicitation or general advertising in connection with the transfer and that
such Shares are being transferred:

                                  [Check One]

(1) _____   to Holdings or a subsidiary thereof; or

(2) _____   pursuant to and in compliance with Rule 144A under the Securities
            Act; or

(3) _____   to an institutional "accredited investor" (as defined in Rule 501
            (a) (1), (2), (3) or (7) under the Securities Act) that has
            furnished to Holdings a signed letter containing certain
            representations and agreements (the form of which appears below); or

(4) _____   outside the United States to a "foreign person" in compliance with
            Rule 904 of Regulation S under the Securities Act; or

(5) _____   pursuant to the exemption from registration provided by Rule 144
            under the Securities Act; or

(6) _____   pursuant to another available exemption from the registration
            requirements of the Securities Act.

Unless one of the boxes is checked, Holdings will refuse to register any of the
Shares proposed to be transferred in the name of any person other than the
registered Holder thereof; provided, that if box (4), (5) or (6) is checked, the
Company may require, prior to registering any such transfer

<PAGE>

of the Shares, in its sole discretion, such legal opinions, certifications
(including an investment letter in the case of box (4)) and other information as
the Company has reasonably requested to confirm that such transfer is being made
pursuant to an exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act.

If none of the foregoing boxes is checked, the Company shall not be obligated to
register Shares in the name of any person other than the Holder hereof unless
and until the conditions to any such transfer of registration set forth herein
shall have been satisfied.

Date:                   Signed:  ________________________

                                (Sign exactly as your
                                name appears on the share
                                certificate(s)
                                representing the Shares
                                being transferred

Signature Guarantee:

                                       2
<PAGE>

             [TO BE COMPLETED BY PURCHASER IF (2) ABOVE IS CHECKED]

            The undersigned represents and warrants that it is purchasing the
Shares referred in this certification for its own account or an account with
respect to which it exercises sole investment discretion and that it and any
such account is a "qualified institutional buyer" within the meaning of Rule
144A under the Securities Act and is aware that the sale to it is being made in
reliance on Rule 144A and acknowledges that it has received such information
regarding the Company as the undersigned has requested pursuant to Rule 144A or
has determined not to request such information and that it is aware that the
transferor is relying upon the undersigned's foregoing representations in order
to claim the exemption from registration provided by Rule 144A.

Date:

                                __________________________________
                                NOTICE: To be executed by an
                                        executive officer

                                       3
<PAGE>

                        [FORM OF LETTER TO BE COMPLETED
                     BY PURCHASER IF (3) ABOVE IS CHECKED]

Ladies and Gentlemen:

            1. The undersigned understands that the offer and sale of the Shares
referred to in the attached certificate have not been registered under the
Securities Act, and that such Shares may not be offered or sole except as
permitted in the following sentence. The undersigned agrees, on its own behalf
and on behalf of any accounts for which it is acting as hereinafter stated, that
if it should sell, pledge or otherwise transfer any such Shares it will do so
only (1) (W) inside the United States to a person who the seller reasonably
believes is a qualified institutional buyer within the meaning of Rule 144A
under the securities act in a transaction meeting the requirements of rule 144A,
or in accordance with Rule 144 under the Securities Act, or pursuant to another
exemption from the registration requirements of the Securities Act (and based
upon an opinion of counsel, if the company so requests), (x) to Holdings, (y)
outside of the United States to a foreign person in a transaction meeting the
requirements of Rule 904 under the Securities Act or (z) pursuant to an
effective registration statement under the Securities Act and (2) in each case,
in accordance with the applicable securities laws of any state of the United
States or any other applicable jurisdiction, and undersigned further agrees to
provide to any person purchasing any of such Shares from us a notice advising
such purchaser that resales of such Shares are restricted as stated herein.

            2. The undersigned understands that, on any proposed resale of all
or any of such Shares, it may be required to furnish Holdings such certification
and other information as Holdings may reasonably require to confirm that the
proposed sale complies with the foregoing restrictions. The undersigned further
understands that the Shares purchased by it will bear a legend to the foregoing
effect.

            3. The undersigned is an institutional "accredited investor" (as
defined in Rule 501(a)(1), (2), (3) and (7) under the Securities Act) and has
such knowledge and experience in financial and business matters as to be capable
of evaluating the merits and risks of an investment

                                       4
<PAGE>

in the Shares, and the undersigned and any accounts for which it is acting are
each able to bear the economic risk of our or its investment, as the case may
be.

            4. The undersigned is acquiring the Shares purchased by us for
its/our account or for one or more accounts (each of which is an institutional
"accredited investor") as to each of which the undersigned exercises sole
investment discretion.

Date:                           ________________________________
                                NOTICE:  To be signed by an
                                         executive officer

                                       5<PAGE>

                                                                  Exhibit 10.16*

The confidential portions of this exhibit, which have been removed and
replaced with an asterisk, have been omitted and filed separately with the
Securities and Exchange Commission pursuant to a request for confidential
treatment under Rule 406.

                                                                    CONFIDENTIAL
                                                                    CONFIDENTIAL

                                SUPPLY AGREEMENT
                                  SVO BATTERIES

      This Supply Agreement (this "Agreement") is made as of the 31st day of
July, 1991 by and between Wilson Greatbatch Ltd., a corporation duly organized
under the laws of the State of New York, U.S.A. and having its principal place
of business at 10,000 Wehrle Drive, Clarence, New York 14031 (hereinafter
"WGL"), and Medtronic, Inc., a corporation duly organized under the laws of the
State of Minnesota, U.S.A. and having its principal place of business at 7000
Central Avenue, N.E., Minneapolis, Minnesota 55432 (hereinafter "Medtronic").

                                    RECITALS

A. WGL has the capability and desire to manufacture for and supply to Medtronic
SVO Batteries, as defined below, for use in Products, as defined below.

B. Medtronic desires to purchase a supply of SVO Batteries from WGL for use in
Products all in accordance with the terms of this Agreement.

C. In addition, WGL desires to grant to Medtronic and Medtronic desires to
obtain from WGL on the date first set forth above a worldwide, nonexclusive.
royalty free license to utilize defined Subject Patents and Know-How of WGL
relating to SVO Batteries, all in accordance with the terms of the License
Agreement, as defined below.

D. The parties acknowledge that Medtronic's purpose in entering into this
Agreement is to obtain a reliable source of SVO Batteries of high quality and
that WGL agrees to provide such a source subject to all of the terms and
conditions set forth in this Agreement. The parties further acknowledge that
Medtronic intends over time to develop both its internal capabilities to
manufacture SVO Batteries to meet its anticipated requirements for such SVO
Batteries, and in addition is establishing by this Agreement a second source
supply arrangement with WGL for supply of SVO Batteries to substantially assist
Medtronic in meeting its requirements for SVO Batteries.

      NOW, THEREFORE, the parties hereto agree as follows:

                                    ARTICLE 1
                                   DEFINITIONS

1.1 Affiliate. "Affiliate" of any entity is any other entity that directly, or
indirectly through one or more intermediaries, controls, or is controlled by, or
is under common control with, the

                                      -1-
<PAGE>

first entity. Control shall mean owning more than 50 percent of the total voting
power of the entity.

1.2 Confidential Information. "Confidential Information" shall mean know-how,
trade secrets, and unpublished information disclosed by one of the parties (the
"disclosing party") to the other party (the "receiving party") or generated
under this Agreement, excluding information which:

      (a) was already in the possession of receiving party prior to its receipt
      from the disclosing party, provided that the receiving party shall provide
      the disclosing party with reasonable documentary proof thereof;

      (b) is or becomes part of the public domain by reason of acts not
      attributable to the receiving party;

      (c) is or becomes available to receiving party from a source other than
      the disclosing party which source, to the receiving party's knowledge, has
      rightfully obtained such information and has no obligation of
      non-disclosure or confidentiality to the disclosing party with respect
      thereto; or

      (d) is made available by the disclosing party to a third party
      unaffiliated with the disclosing party on an unrestricted basis.

All Confidential Information disclosed by one party to the other under this
Agreement, insofar as practicable, shall ultimately be in writing and bear a
legend "Company Proprietary", "Company Confidential" or words of similar import.
Accordingly, all Confidential Information disclosed in any manner other than
writing shall, insofar as practicable, be preceded by an oral statement
indicating that the information is company proprietary or confidential, and
shall be followed by transmittal of a reasonably detailed written summary of the
information provided to the receiving party with identification as Confidential
Information designated as above within thirty (30) days.

1.3 Intellectual Property. "Intellectual Property" shall mean all patents,
inventions, discoveries, know-how, trade secrets, data, information, technology,
processes, formulas, drawings, designs, computer programs, licenses, and all
amendments, modifications, and improvements to any of the foregoing.

1.4 Contract Year. "Contract Year" shall mean each respective annual period
during the term of this Agreement which commences on August 1 and ends on the
next following July 31.

1.5 First Contract Period, Second Contract Period, and Third Contract Period.
"First Contract Period", "Second Contract Period", and "Third Contract Period"
shall mean, respectively, the

                                      -2-
<PAGE>

periods of (i) August 1, 1991 to July 31, 1995, (ii) August 1, 1995 to July 31,
1998, and (iii) August 1, 1998 to July 31, 2001.

1.6 License Agreement. "License Agreement" shall mean the License Agreement to
be executed by WGL and Medtronic on even date herewith, in the form of the
attached Exhibit A hereto.

1.7 Product. "Product" shall mean implantable medical products used in the
treatment of cardiac tachycardia or fibrillation now and hereafter manufactured
by or for Medtronic.

1.8 Quota. "Quota" shall mean the respective period minimum quantities of SVO
Batteries which Medtronic shall be expected to purchase from WGL in accordance
with the terms and conditions of Article 5 of this Agreement.

1.9 SVO Batteries. "SVO Batteries" shall mean any battery for use in a Product
which battery uses silver vanadium oxide as a cathode material.

1.10 Security Agreement. "Security Agreement" shall mean the Security Agreement
to be executed by WGL on even date herewith, in the form of the attached Exhibit
B hereto, which shall secure WGL's performance of its obligations to Medtronic
under this Agreement.

1.11 New Battery. "New Battery" shall mean any SVO Battery that requires full
WGL qualification as a new cell and that has been in implantable grade
production for less than 180 days. WGL Models 8830 and 8615 are not, for
purposes of this Agreement, considered "New Batteries."

                                    ARTICLE 2
                        GENERAL OBLIGATIONS OF Medtronic

2.1 Quality Control. Medtronic agrees to follow reasonable quality control
standards with respect to the storage, preservation, and use of SVO Batteries
purchased under this Agreement and consistent in all material respects with the
reasonable recommendations of WGL. Medtronic shall maintain production,
inventory and sales records with respect to Product incorporating SVO
Batteries purchased from WGL under this Agreement, in sufficient detail to
enable Medtronic to conduct an effective recall of such Product should such a
recall be deemed appropriate by Medtronic.

2.2 Regulatory Approval Efforts. During the term of this Agreement Medtronic
shall have responsibility for obtaining at its expense, in its name and at its
discretion any necessary device regulatory approvals from the U.S. Food and
Drug Administration (i.e., PMA's or 510(k)'s as the case may be), and
applicable regulatory agencies of such other countries in which Product
incorporating the SVO Batteries will be sold. WGL shall supply

                                      -3-
<PAGE>

Medtronic with all documents, instruments, information, reports and advice and
general assistance as is necessary to complete, and as is reasonably requested
by Medtronic in connection with, such regulatory approval efforts.

                                    ARTICLE 3
                           GENERAL OBLIGATIONS OF WGL

3.1 WGL's Manufacture and Supply of SVO Batteries. Except as otherwise provided
in Section 4.2 hereof, WGL shall use all reasonable commercial efforts during
the term of this Agreement to supply to Medtronic SVO Batteries in the
quantities ordered by Medtronic, in accordance with the specifications now in
effect and hereafter agreed to by the parties and with Medtronic's schedules for
delivery thereof. WGL acknowledges that such quantities ordered by Medtronic may
amount to   *   of Medtronic's requirements for SVO Batteries for use in
Products during the term of this Agreement.

3.2 SVO Battery Specifications. The current specifications for the SVO Batteries
to be purchased under this Agreement are attached hereto as Exhibit C, except
for the specifications for the SVO Battery to be used in Medtronic PCD Model
7218 which specifications are now being finalized by mutual agreement (the SVO
Batteries specifications attached are presently intended for use in Medtronic's
PCD Models 7216, 7217 and 7219). It is the expectation of both parties that WGL
will maintain commercially competitive capabilities in the research, design,
development and manufacture of SVO Batteries. Subject to Section 6.3 hereof, WGL
agrees that it will promptly undertake to implement any changes to existing
designs of SVO Batteries and any new designs of SVO Batteries proposed for
purchase by Medtronic under this Agreement to the extent reasonably requested by
Medtronic from time to time, provided that such efforts requested are reasonably
within the then-existing or imminently planned-for capabilities of WGL and such
efforts are reasonably deemed by Medtronic as likely to enhance Medtronic's
competitive position in and/or profit from the development and sale of Products.
Such implementations shall be conditional upon the successful completion of such
evaluation and qualification procedures as WGL shall reasonably require
to ensure the safety, reliability, quality, and manufacturability of such
proposed changes and new designs. Medtronic may not require delivery of SVO
Batteries incorporating such changes until sixty (60) days after completion of
such qualification procedures and such delivery shall be subject to the
provisions of Section 4.7.

3.3 Compliance With U.S. Laws and Regulations; Compliance With Specifications.
WGL shall be responsible for compliance with present and future applicable
statutes, laws, ordinances and regulations of United States and foreign
national, federal, state and local governments relating to the manufacture and,
except as otherwise provided in Section 2.2 hereof, the sale of SVO Batteries

                                      -4-
<PAGE>

to Medtronic under this Agreement. WGL will provide such Medtronic personnel
as Medtronic reasonably deems appropriate with reasonable access from time to
time to WGL's facilities and records for the purpose of confirming WGL's
compliance with requirements noted in this Section, and for the further purpose
of confirming, if reasonably deemed necessary by Medtronic, WGL's compliance
with applicable specifications for SVO Batteries.

3.4 Failure to Meet Delivery Schedules. If WGL is unable for any reason, other
than Force Majeure, to meet any scheduled deliveries specified by Medtronic for
SVO Batteries, as provided for in Article 4 hereof, and such inability is
material to Medtronic in amount and significance, WGL shall on written request
of Medtronic then allocate, with respect to the Contract Period within which the
delay in delivery originated, the following respective percentages of WGL's SVO
Battery manufacturing capacity to fulfill Medtronic's orders for SVO Batteries:
  *   percent for the First Contract Period,   *   percent for the Second
Contract Period, and   *   percent for the Third Contract Period. Such
allocation of plant capacity by WGL shall continue until the delivery schedule
for SVO Batteries to Medtronic is being met on a current basis. Furthermore, in
the event of any aforementioned inability of WGL to meet scheduled deliveries to
Medtronic, WGL will engage in communications with and will fully cooperate with
Medtronic as requested by Medtronic, and provide appropriate, mutually agreed
upon Medtronic personnel with reasonable access to WGL's SVO Battery
manufacturing facility as requested by Medtronic, to determine the causes of
such inability and possible measures to correct such inability and prevent its
recurrence in the future.

                                    ARTICLE 4
                            ORDERS FOR SVO BATTERIES

4.1 Orders for SVO Batteries. Medtronic will submit orders for SVO Batteries to
WGL in writing, whether by mail, telecopy, telex or otherwise, and such orders
will set forth at a minimum: (a) an identification of SVO Batteries ordered, (b)
quantities ordered, (c) delivery dates, and (d) shipping instructions.

4.2 Order Limitations. In the event orders placed by Medtronic for delivery
within any month exceed the monthly average of Product units ordered by
Medtronic under the most recent prior period of   *   consecutive months of
Medtronic firm purchase orders by more than   *   or by more than   *   SVO
Battery units, whichever is greater, then WGL shall not be obligated to supply
any such excess above such   *   or   *   unit overage as applicable, however,
WGL shall use all reasonable commercial efforts to supply amounts requested for
delivery which are in excess of such overage, it being understood that in the
supply of any such excess beyond the permitted overage WGL may take into account
delivery commitments to other customers. Notwithstanding the foregoing, WGL
shall not be required to supply within any

                                      -5-
<PAGE>

forecast period a number of SVO Battery units which is in excess of * times the
aggregate number of SVO Battery units forecast for delivery by Medtronic during
such forecast period under Section 4.5 hereof. It is understood by the parties,
however, that in the event WGL refuses to supply any SVO Batteries to Medtronic
because of the foregoing cap on WGL's periodic supply requirements and such
refusal makes it impossible for Medtronic to meet a purchase quota under Article
5 hereof, then the relevant Medtronic purchase quota requirement shall be deemed
reduced by the number of SVO Battery units which WGL so refuses to deliver.

4.3 Modification of Orders. No aforementioned order shall be modified or
canceled except upon the mutual agreement of the parties. Mutually agreed change
orders shall be subject to all provisions of this Agreement, whether or not
the change order so states. Notwithstanding the foregoing, Medtronic may in its
sole discretion by written notice to WGL cancel orders for and deliveries of any
SVO Batteries which are not delivered within sixty (60) days of the delivery
date requested by Medtronic and in the event of such cancellation by Medtronic,
Medtronic may then make such appropriate adjustments to any outstanding orders
and forecasts as it deems advisable in light of any shortfalls in supply which
relate to such cancellation. The foregoing rights of cancellation and adjustment
by Medtronic, together with the rights of Medtronic set forth in Section 3.4
hereof and in Section 4.6 hereof, the right of reduction in Quotas set forth in
Section 5.4 hereof, and the right of termination of this Agreement by Medtronic
for material breach of this Agreement set forth in Section 12.2 hereof, shall be
the exclusive remedies to which Medtronic may be entitled as a result of delayed
deliveries by WGL.

4.4 Delivery Terms. All deliveries of SVO Batteries shall be F.O.B. WGL's
manufacturing facility at 10,000 Wehrle Drive, Clarence, New York. Accordingly,
all risk of damage to or loss or delay of SVO Batteries purchased under this
Agreement shall pass to Medtronic upon their delivery at the F.O.B. point to a
common carrier specified by Medtronic or, in the event that no carrier shall
have been specified by Medtronic on or before the date fifteen (15) days prior
to the requested shipment date, a common carrier reasonably selected by WGL.

4.5 Medtronic's Forecasts. Upon execution of this Agreement by the parties,
Medtronic agrees to provide WGL with a twelve (12) month forecast indicating
Medtronic's forecast purchases of SVO Batteries from WGL during the period
August 1, 1991 through July 31, 1992 (and which shall take into account orders
for SVO Batteries placed by Medtronic prior to execution of this Agreement).
Such forecast shall be updated monthly (prior to the final day of each full
month during the term of this Agreement) by Medtronic in writing to WGL on a
rolling basis such that the forecast shall at all times cover the prospective
twelve (12) month period. Such rolling forecasts by Medtronic shall be used

                                      -6-
<PAGE>

for purposes of facilitating each party's planning and in order to meet the
lead times required by certain of WGL's suppliers. Such forecasts are not
legally binding in any manner and may be revised from time to time by Medtronic
as it deems appropriate, provided, however, that SVO Batteries scheduled for
delivery within the first four months of each aforesaid twelve month forecast
period shall represent and constitute a firm order by Medtronic.

4.6 Penalties for Specified Delivery Delays. The provisions of this Section 4.6
shall become effective 9 months after the date of both parties signing this
Supply Agreement. If, prior to July 31, 1995 or, while WGL is the sole supplier
of a particular SVO Battery model as to which delays are occurring, WGL is
unable for any reason (other than force majeure) to meet any scheduled
deliveries specified by Medtronic for SVO Batteries, as provided for in Article
4 hereof, and such delay is material to Medtronic in amount and significance
(including but not necessarily limited to any such delay which would cause
Medtronic to reduce its planned production of Products, which shall be deemed
material to Medtronic) then, notwithstanding any contrary provisions of the
Security Agreement or this Agreement or of law, with the exception of Section
3.4 hereof, the rights of cancellation and adjustment set forth in Section 4.3
hereof, the right of reduction in Quotas set forth in Section 5.4 hereof, and
the right of termination of this Agreement by Medtronic for material breach of
this Agreement set forth in Section 11.2 hereof: at Medtronic's request and
until such time as WGL can promptly deliver from its current production
quantities of delayed SVO Batteries to fully support Medtronic manufacturing
requirements, WGL shall use SVO Batteries comprising Inventory under the
Security Agreement (to the extent such SVO Batteries are available in the
appropriate models) to offset delayed SVO Batteries. Subject to the foregoing
conditions of this Section 4.6, for each SVO Battery unit which is not
delivered, whether out of said Inventory or from current production, within
sixty (60) days of the delivery date requested by Medtronic pursuant to the
order and delivery terms of this Agreement, WGL shall immediately make a
repayment to Medtronic of a portion of the * sum referenced in Section 6.7
hereof, to the extent such sum has not already been repaid in whole by WGL under
this Section 4.6 or Section 6.7 of this Agreement or under the Security
Agreement, which repayment shall be determined by multiplying * times the number
of such delayed units. The total of any aforementioned repayments by WGL under
this Section 4.6 together with any repayments under Section 6.7 and under the
Security Agreement shall in no event exceed *. Any such repayments made to
Medtronic shall not relieve WGL of its responsibility to deliver the delayed
units as soon as possible in the event the orders for such delayed units have
not been cancelled by Medtronic. The foregoing provisions shall not reduce or
otherwise affect the adjustments to Medtronic's permitted outstanding account
payable to WGL for SVO Batteries to the extent provided for in Section 6.2

                                      -7-
<PAGE>

hereof. The foregoing rights in this Section 4.6, together with the rights of
Medtronic set forth in Section 3.4 hereof and in Section 4.3 hereof, the right
of reduction in Quotas set forth in Section 5.4 hereof, and the right of
termination of this Agreement by Medtronic for material breach of this Agreement
set forth in Section 11.2 hereof, shall be the exclusive remedies to which
Medtronic may be entitled as a result of delayed deliveries by WGL.

4.7 Scheduled Deliveries for New Battery. It is expressly understood that the
first six (6) months of scheduled delivery for any New Battery as defined herein
will be strictly on a best efforts basis by WGL and will not be subject to any
provision regarding failure to deliver including Section 3.4, 4.3, 4.6, 5.4 and
11.2.

                                    ARTICLE 5
                                 PURCHASE QUOTAS

5.1 Contract Year Quota. Medtronic agrees to purchase and take delivery from WGL
of a quota of SVO batteries during each Contract Year in an amount equal to the
lesser of (a) * SVO Batteries, or (b) * of Medtronic's requirements for SVO
Batteries for that Contract Year.

5.2 Contract Period Quota. During the First Contract Period, Second Contract
Period and Third Contract Period, respectively, Medtronic agrees to purchase and
take delivery from WGL of the following quotas of SVO Batteries:

      (a) A quota for the First Contract Period in an amount equal to * of
      Medtronic's requirements for SVO Batteries during such Contract Period;

      (b) A quota for the Second Contract Period in an amount equal to * of
      Medtronic's requirements for SVO Batteries during such Contract Period;
      and

      (c) A quota for the Third Contract Period in an amount equal to * of
      Medtronic's requirements for SVO Batteries during such Contract Period.

5.3 Purchase Carry Forwards. For purposes of determining whether Medtronic has
met any Contract Period quota, Medtronic may carry forward from any one Contract
Period to any future Contract Periods such number of purchased SVO Battery units
as is in excess of the Contract Period quota for the period from which such
carry forward is being made. Notwithstanding the foregoing, the maximum number
of purchased SVO Battery units which Medtronic may carry forward from any one
Contract Period to any future Contract Period or Periods shall be * units.

                                      -8-
<PAGE>

5.4 Reductions in Quota. Notwithstanding Medtronic's obligations pursuant to
Sections 5.1 and 5.2 hereof, Medtronic's Quota for any quota period shall be
reduced (a) in the case of subpart (i) below by an amount equal to * times the
amount of SVO Batteries, the order and delivery of which has been canceled by
Medtronic pursuant to Section 4.3 hereof, (b) in the case of subpart (ii) below,
by an amount equal to * times the amount of SVO Batteries affected by such
recall or withdrawal, and (c) in the case of subpart (iii) below, by an amount
equal to * times the amount of SVO Batteries of the revised design noted below
which Medtronic itself manufactures and incorporates into Product (or has a
third party manufacture, as permitted under this Agreement), following WGL's
failure to supply such revised design battery.

      (i) If WGL fails for any reason to deliver ordered SVO Batteries within
      sixty (60) days of the date scheduled for delivery thereof, including but
      not limited to a failure to deliver SVO Batteries which conform to the
      then current specifications for SVO Batteries;

      (ii) If any Product incorporating SVO Batteries provided under this
      Agreement is recalled from the market or withdrawn from sale for reasons
      of product safety or quality due to battery performance as determined by
      any applicable governmental authority or by Medtronic in its reasonable
      judgment after consultation with WGL; or

      (iii) If WGL is unable or for any other reason fails to implement any
      revised SVO Battery design requested by Medtronic under the provisions of
      Section 3.2 hereof.

Subject to Section 4.6 regarding penalties for specified delivery delays, the
foregoing adjustments to Quotas shall not be deemed to waive or otherwise
adversely affect any other remedy to which Medtronic may be entitled as a result
of the occurrence of events giving rise to any such reduction in Quotas which
remedy is specifically set forth in Section 3.4, 4.3, 4.6 or 11.2 hereof. The
rights of Medtronic set forth in this Section 5.4, together with the rights of
Medtronic set forth in Section 3.4 hereof, Section 4.3 hereof and in Section 4.6
hereof, and the right of termination of this Agreement by Medtronic for material
breach of this Agreement set forth in Section 11.2 hereof, shall be the
exclusive remedies to which Medtronic may be entitled as a result of delayed
deliveries by WGL.

5.5 Reports and Records. Within ninety (90) days after the end of each Contract
Year, Medtronic shall provide WGL with a written report indicating the number of
Product units manufactured by or for Medtronic during such period which
incorporate an SVO Battery. Upon reasonable notice and during regular business
hours, but no more frequently than once for any Contract Year and only with
respect to a Contract Year which has been completed in the prior

                                      -9-
<PAGE>

three year period, Medtronic shall at WGL's written request make available
appropriate records substantiating the number of Product units manufactured by
Medtronic in such prior Contract Years which incorporate an SVO Battery for
audit at WGL's expense by an independent certified accounting representative to
verify the accuracy of the reports provided to WGL. Such representative shall
execute a suitable confidentiality agreement reasonably acceptable to Medtronic
prior to conducting such audit. Such representative may disclose to WGL only its
conclusions regarding the accuracy and completeness of said reports, and shall
not disclose Confidential Information of Medtronic to WGL without the prior
written consent of Medtronic.

5.6 Cure of Quota Shortfalls. In the event WGL determines that Medtronic has
failed to meet a Contract Year or Contract Period Quota as provided for in this
Article 5 it shall promptly notify Medtronic in writing of such failure and the
amount by which the applicable Quota has not been met. Notwithstanding any
contrary provisions of this Agreement, Medtronic shall have a period of ninety
(90) days after receipt of any such written notice from WGL and verification of
the alleged deficiency to cure any failure to purchase Quotas by placing firm
orders for appropriate additional purchases of SVO Batteries from WGL. Any such
purchases made to cure a failure to meet Quota shall not be counted as purchases
for Quota purposes for any Contract Year or Contract Period other than the ones
as to which such cure has been effected.

5.7 Determining Quota Percentage. For purposes of determining whether
Medtronic's Quota for any period has been met (subject to such adjustments as
are provided for in this Agreement), the numerator of the fraction which
determines the percentage of Quota shall be the number of SVO Battery units
delivered by WGL to Medtronic during such period (less the number of such
delivered units, if any, which were rightfully not accepted by Medtronic) and
the denominator of such fraction shall be the total number of SVO Battery units
incorporated in Product units of Medtronic which enter into commercial
production (and are intended for commercial sale, as opposed to use for
development, demonstration, testing or other purposes) during such period.

                                    ARTICLE 6
                               PRICES AND PAYMENTS

6.1 SVO Batteries Prices. Except as otherwise provided in Section 6.10 hereof,
the price to be paid by Medtronic for SVO Batteries purchased from WGL during
the term of this Agreement shall be * U.S. per SVO Battery. All prices are
F.O.B. WGL's manufacturing facility in Clarence, New York. Except as otherwise
provided in Section 6.5, the foregoing * U.S. per unit price shall apply to all
SVO Batteries purchased from WGL whether such units are prototypes, pilot
production or commercial run units.

                                      -10-
<PAGE>

6.2 Unit Payment Terms. Payments made by Medtronic for SVO Batteries purchased
hereunder shall be due and payable thirty (30) days after shipping date F.O.B.
from Clarence, New York. Notwithstanding the foregoing sentence, once the * sum
referenced in Section 6.7 hereof has been delivered to WGL from escrow as
provided for in said Section 6.7, Medtronic shall not be required during the
term of this Agreement to pay down its account payable to WGL for SVO Batteries
purchased hereunder to any amount below the greater of (a) * and (b) * plus the
dollar amount derived by multiplying the then current per unit purchase price
for SVO Batteries under this Agreement times the number of SVO Battery units
which results from subtracting (i) the actual average number of SVO Battery
units in the Minimum Inventory (whether or not the required level of Minimum
Inventory, as defined in the Security Agreement, has been met) during the most
recently completed semi-annual period in the latest Contract Year from (ii) the
threshold level of * units; provided, however, that this sentence shall no
longer be applicable from and after the date WGL shall have repaid in full the *
sum referenced in Section 6.7 hereof. Any interest earned on the advance payment
while in escrow at Chemical Bank, as provided for in Section 6.7, shall be
credited to Medtronic's account, with such credit to be applied by WGL at the
instruction and discretion of Medtronic against any purchases of SVO Batteries
by Medtronic made after the escrowed funds have been disbursed to WGL. In the
event the aforesaid * and interest thereon have been disbursed to Medtronic in
accordance with the terms of the escrow agreement referenced in Section 6.7,
then Medtronic shall have no further right to the aforementioned purchase price
credit relating to interest earned on the escrowed *.

6.3 Design Fees. In the event that during the term of this Agreement Medtronic
requests that WGL supply to it a new model or models of SVO Battery under this
Agreement, then Medtronic will pay to WGL a reasonable design fee for WGL's
efforts in designing such new model or models of SVO Battery. Such design fee
shall be mutually agreed to by the parties in good faith and in no event will
such fee be greater than an amount equal in all material respects to that being
paid at or near the time of such design changes by other purchasers for a
comparable degree of design changes to SVO Batteries purchased from WGL. Any
significant design changes for SVO Batteries in production shall cost a minimum
of *.

6.4 Taxes. Medtronic shall be responsible for and shall pay, or reimburse WGL
for, all taxes, duties, import fees, assessments and other governmental charges
(except net income taxes) including those that relate to the import of SVO
Batteries into countries to which Medtronic has requested delivery of such SVO
Batteries. Notwithstanding the foregoing, WGL shall be responsible for and pay
any import taxes or fees for any importation of SVO Batteries into

                                      -11-
<PAGE>

the United States should WGL elect to manufacture the SVO Batteries outside of
the United States.

6.5 Adjustments Relating to Outstanding Order. Notwithstanding any contrary
prior agreements or understandings of the parties with respect to SVO Batteries
presently on order by Medtronic from WGL as of the execution date of this
Agreement (i.e., the WGL #8830 battery for use in Medtronic's #7217 PCD), such
on order units will remain priced at * U.S. per SVO Battery provided, however,
that the last * of such SVO Batteries (currently scheduled for delivery after
January 1, 1992) will be priced at * U.S. per SVO Battery. Moreover, all of such
SVO Batteries on order by Medtronic from WGL as of the execution date of this
Agreement shall be considered as purchases from WGL during the term of this
Agreement for the purpose of determining if Medtronic has met its quota
responsibilities under Article 5 of this Agreement.

6.6 Most Favored Terms. WGL acknowledges and agrees that the price charged to
Medtronic for SVO Batteries shall at no time during the term of this Agreement
be higher than or otherwise less favorable than the price in effect from time to
time during the term of this Agreement for substantially comparable SVO
Batteries purchased by any other party from WGL in equal or lesser quantities
than are to be purchased by Medtronic hereunder, provided, however, that the
foregoing clause shall not apply to SVO Batteries that are not intended for, and
in fact do not rightfully enter into, commercial sale to end user customers,
such as those used for development, demonstration, or testing purposes.
Accordingly, within thirty (30) days of the completion of each Contract Year,
WGL shall provide to Medtronic a written certification by an executive officer
of WGL that WGL has fully complied with the terms of this Section 6.6. Upon
reasonable notice and during regular business hours, but no more frequently than
once for any Contract Year and only with respect to a Contract Year which has
been completed in the prior three year period, WGL shall at Medtronic's written
request make available appropriate records substantiating the accuracy of WGL's
certifications referenced above for audit at Medtronic's expense by an
independent certified accounting representative to verify the accuracy of such
certifications. Such representative shall execute a suitable confidentiality
agreement reasonably acceptable to WGL prior to conducting such audit. Such
representative may disclose to Medtronic only its conclusions regarding the
accuracy and completeness of said certifications, and shall not disclose
Confidential Information of WGL to Medtronic without the prior written consent
of WGL. If appropriate based on information provided by WGL or based on the
result of an audit provided for above, the price charged to Medtronic for SVO
Batteries hereunder shall be downwardly adjusted to the lowest level that such
comparable SVO Batteries are being sold to third parties. Such downward price
adjustment shall be made

                                      -12-
<PAGE>

retroactively effective to the date upon which the aforesaid lower pricing first
commenced, with an appropriate adjusting payment to be made to Medtronic for
prior overcharges (which adjusting payment Medtronic may elect to take in the
form of a lump sum cash payment from WGL or in the form of an offsetting credit
against future purchases of SVO Batteries from WGL).

6.7 Advance Payment. Promptly following execution of this Agreement by the
parties hereto, Medtronic shall deliver a check in the amount of * to Chemical
Bank, Buffalo, New York as escrow agent ("Escrow Agent"). The Escrow Agent shall
cause the escrowed funds to be deposited in an interest-bearing account and to
be delivered to WGL, together with all interest earned thereon, upon receipt of
a statement from WGL's independent auditors certifying that WGL's Inventory (as
defined in the Security Agreement) is then comprised of not less that * SVO
Battery units. Such statement shall be provided to Medtronic for review and
comments not less than fifteen (15) days before it is provided by WGL to the
Escrow Agent. If the Escrow Agent shall not have received such certificate
within 365 days of the date this Agreement is executed by both parties, the
Escrow Agent shall deliver the escrowed funds to Medtronic, together with all
interest earned thereon. The parties agree to execute such form of escrow
agreement with the Escrow Agent as sets forth the foregoing terms and such other
terms as are reasonably customary in such agreements. Such sum of * (if received
by WGL) shall constitute an advance payment of purchase price for the last * of
purchases of SVO Batteries by Medtronic from WGL under this Agreement. WGL shall
have the right to repay at any time the * advanced by Medtronic under this
Section 6.7, less the amount of any repayments by WGL under Section 4.6 hereof,
in which event the Security Agreement shall automatically terminate (as provided
for therein) and the credits against the payment of purchase price for the last
* of purchases of SVO Batteries provided for in this Section 6.7 shall no longer
apply. If for any reason it occurs that at the time of any termination of this
Agreement Medtronic has not recouped the entire aforesaid * amount, less the
amount of any repayments already made by WGL under Section 4.6 hereof, in the
form of purchase price credits for SVO Batteries purchased from WGL under this
Agreement, then any unrecouped portion of such * shall constitute a repayment
obligation of WGL which shall be immediately due and payable to Medtronic in
full upon demand by Medtronic of payment thereof. In the event that during
either or both of the final Contract Year of the First Contract Period or the
final Contract Year of the Second Contract Period the actual number of SVO
Batteries delivered to Medtronic in such respective Contract Year totals less
than * units, and the forecast for the succeeding year is less than * units,
then WGL shall immediately make a repayment to Medtronic of a percentage of the
aforesaid

                                      -13-
<PAGE>

* which percentage amount shall equal the percentage by which said actual number
of delivered units is short of said * unit level. Any repayment amount due to
Medtronic with respect to the Second Contract Period under the foregoing
provision may be reduced by the amount of any repayment made under such
provision with respect to the First Contract Period.

6.8 Medtronic Manufacturing Payments. If during the Third Contract Period
Medtronic manufactures more than * but * or less of its requirements for SVO
Batteries during such period, Medtronic will pay WGL a per unit fee of * per SVO
Battery manufactured by Medtronic within such * through * category. In addition,
if during the Third Contract Period Medtronic manufactures more than * but * or
less of its requirements for SVO Batteries during such period, Medtronic will
pay WGL a per unit fee of * per SVO Battery manufactured by Medtronic within
such * through * category. Any such payments due by Medtronic shall be made
annually within ninety (90) days of the completion of each Contract Year within
such Third Contract Period. The annual payment due by Medtronic, if any, for
the first Contract Year within such Third Contract Period shall be calculated
based on the number of SVO Batteries manufactured by Medtronic during such first
Contract Year. The annual payment due by Medtronic, if any, for the second
Contract Year within such Third Contract Period shall be calculated based on the
aggregate number of SVO Batteries manufactured by Medtronic during both the
first and second Contract Years within such Third Contract Period, and any such
payment shall take into account and reflect appropriate adjustments for any
overpayments or underpayments by Medtronic with respect to the aforementioned
first Contract Year. The annual payment due by Medtronic, if any, for the third
Contract Year within such Third Contract Period shall be calculated based on the
aggregate number of SVO Batteries manufactured by Medtronic during all of the
first, second and third Contract Years within such Third Contract Period, and
any such payment shall take into account and reflect appropriate adjustments for
any overpayments or underpayments by Medtronic with respect to the
aforementioned first or second Contract Years. In the event it is determined,
after completion of the Third Contract Period, that Medtronic has made annual
payments under this Section 6.8 which in total exceed the aggregate amount to
which WGL is entitled under this Section 6.8 due to Medtronic manufacturing
during the Third Contract Period, then WGL shall promptly repay (but in no event
more than 15 days after written notice from Medtronic identifying the amount of
excess payment by Medtronic) to Medtronic in cash the amount of such excess
payment by Medtronic. In the event that the Quota for the Third Contract Period
is reduced in accordance with the provisions of Section 5.4 hereof, then the
aggregate number of units by which such Quota has been so reduced shall be
considered as SVO Battery units purchased by Medtronic from WGL during the Third
contract Period for purposes of determining any manufacturing payments due from
Medtronic to WGL under the terms of this Section 6.8. References in this Section

                                      -14-
<PAGE>

6.8 to SVO Batteries manufactured by Medtronic shall be deemed to include any
SVO Batteries manufactured for Medtronic by a person or entity other than WGL.
For purposes of determining the applicable Medtronic manufacturing payment due
from Medtronic under this Section, if any, there shall be considered only those
SVO Battery units manufactured by Medtronic to be incorporated in Products
intended for commercial sale, as opposed to SVO Battery units manufactured by
Medtronic and to be used alone or with Products for development, demonstration,
testing or other "not for sale" purposes. Any SVO Batteries manufactured by or
for Medtronic (other than by WGL) and in Medtronic's finished goods inventory at
the end of the Third Contract Period shall for purposes of this Section 6.8 be
deemed to be intended for commercial sale and a manufacturing payment shall be
due thereon.

6.9 Meet or Release Provision. On and after August 1, 1995, the following
provisions shall become effective:

Notwithstanding any contrary terms or provisions of this Supply Agreement,
Medtronic shall have the right to solicit written bids from time to time from
any qualified manufacturers (other than an affiliate or a spinoff of Medtronic)
of comparable implantable grade SVO Batteries other than WGL, as defined herein.
Medtronic may submit any such bids it receives to WGL and upon such submission
WGL shall have a period of sixty (60) days in which to advise Medtronic in
writing that WGL is willing and agrees to provide to Medtronic the SVO Batteries
covered by such bid on the pricing terms set forth in such bid. In the event
that WGL elects to provide said SVO Batteries to Medtronic on said terms, then
this Supply Agreement shall then be deemed appropriately amended to incorporate
such revised pricing terms for the SVO Batteries covered by such bid (and any
SVO Batteries purchased by Medtronic relating to such bid shall be deemed to be
SVO Batteries purchased from WGL for all purposes under this Supply Agreement,
including but not limited to the purposes of Article 5 and Section 6.8 hereof).
In the event that WGL does not make a timely election to provide said SVO
Batteries to Medtronic on said pricing terms, then Medtronic may in its
discretion accept such bid and purchase said SVO Batteries from the bidding
manufacturer on the pricing terms set forth in such bid or such other pricing
terms as may be more favorable to Medtronic than the terms set forth in the
initial bid (and any SVO Batteries so purchased by and delivered to Medtronic
under said bid shall be deemed to be SVO Batteries manufactured by Medtronic
with the exception that solely for purposes of calculating Quotas under Article
5 hereof the SVO Battery units delivered to Medtronic by said third party
bidding manufacturer shall be treated as though they were purchased by Medtronic
from WGL.

Such purchases shall not relieve Medtronic of the obligation under Section 5.1
to purchase the lesser of * of its requirements or

                                      -15-
<PAGE>

* Batteries per year for the term of this Supply Agreement, from WGL.

For the purposes of this Supply Agreement, a qualified manufacturer is defined
to be a legal entity that has delivered production quantities of SVO Batteries
to a Medtronic competitor for use in FDA (or the regulatory equivalent in any
other country) approved "Products" as defined herein, and who is not involved in
patent or know-how litigation with WGL regarding the Subject Patents and
Know-How, as defined in the License Agreement. Furthermore, if Medtronic accepts
a bid from a qualified manufacturer who contracts to deliver SVO Batteries that
WGL otherwise would have delivered and who fails to deliver within the
contracted time period those quantities contracted for, then Medtronic shall
fully comply with all Article 5 quota terms of this Supply Agreement by, if
necessary to meet the applicable quota reordering from WGL any SVO Batteries not
delivered by said qualified manufacturer.

6.10 Permitted Price Adjustments.

      (a) The price of * per SVO Battery provided for in Section 6.1 is subject
to upward modification, from time to time, by WGL during the period which
commences on August 1, 1995 and ends on July 31, 2001 if WGL incurs a
"Significant Cost Increase." The amount of any such permitted price increase due
to a Significant Cost Increase shall in no event exceed the lesser of (1) the
actual per unit amount of the increase over WGL's fully allocated product cost
of SVO Batteries as of the date of this Agreement, or (2) the actual per unit
increase attributable to cost items set forth in (i) through (v) below. For
purposes of this Section 6.10, the term "Significant Cost Increase", shall mean
an increase by * or more in WGL's fully allocated product cost of manufacturing
SVO Batteries over WGL's fully allocated product cost of SVO Batteries as of the
date of this Agreement. Fully allocated product cost as referenced in this
Section shall be reasonably determined in accordance with generally accepted
accounting principles and shall allocate all general, administrative and other
indirect expenses among each of WGL's products proportionately based upon their
respective manufactured product unit volumes. Furthermore, the future fully
allocated product cost of manufacturing SVO Batteries shall be calculated in a
manner consistent with that used for the calculation of the fully allocated
product cost of manufacturing SVO Batteries as of the date of this Agreement.
WGL shall have its independent auditors calculate WGL's fully allocated per unit
product cost of manufacturing SVO Batteries as of the date of this Agreement and
document such determination and the methodology used in such calculation (with
such efforts to be completed not later than 30 days following the date this
Agreement is signed by both of the parties hereto).

                                      -16-
<PAGE>

            (i)   Any requirement under applicable environmental or labor laws,
                  rules or regulations including but not limited to OSHA,
                  relating to or affecting work conditions for WGL employees
                  involved in the manufacture, testing and handling of SVO
                  Batteries, including, but not limited to, the handling,
                  storage and disposal of raw materials used by WGL or any waste
                  resulting therefrom.

            (ii)  Any requirement under applicable environmental laws, rules or
                  regulations pertaining to the transportation, handling,
                  storage and disposal of material actually used by WGL in
                  manufacturing SVO Batteries, including disposal of any waste
                  resulting therefrom.

            (iii) Any price increases imposed by WGL vendors of raw materials or
                  parts for the manufacture of SVO Batteries.

            (iv)  Any state or Federal law, rule, regulation or mandated
                  program, including, but not limited to, any of the foregoing
                  which imposes on WGL a new tax, fee, surcharge or employee
                  benefit, welfare or insurance program (excluding increases in
                  any existing taxes, fees, surcharges or employee benefit,
                  welfare or insurance programs).

            (v)   Any incremental increases in the costs of production labor,
                  equipment and materials which are directly and exclusively
                  related to changes expressly required by Medtronic in the
                  materials, structure or manufacture of SVO Batteries to be
                  provided by WGL to Medtronic (excluding any labor, equipment,
                  materials and other WGL costs which are covered by the design
                  fees provided for in Section 6.3 hereof).

      (b) If WGL is entitled and determines to impose a price increase under
this Section 6.10, WGL shall give not less than five months' written notice
thereof in order that the forecasts provided for in Section 4.5 to be made by
Medtronic can take into account any such price increase. WGL may not impose a
price increase during the permitted period hereunder more frequently than once
every 12 months. Notwithstanding the foregoing provisions of this Agreement, WGL
may, at any time before or after August 1, 1995, give immediate effect to price
increases based on costs identified in subpart (v) above if and when such costs
constitute a Significant Cost Increase. WGL shall deliver to Medtronic together
with the notice provided for herein a written report which describes in
reasonable detail the basis for WGL's determination that a price increase is
permitted under this Section 6. 10. WGL

                                      -17-
<PAGE>

shall at Medtronic's written request make available appropriate records
substantiating the basis for its determination that a significant Cost Increase
has occurred (including the fully allocated per Unit product cost of
manufacturing SVO Batteries as of the date of this Agreement and methodology
used in such calculation determined as required above) for audit at Medtronic's
expense by an independent certified public accounting representative to verify
the accuracy of the reports provided to Medtronic. Such representative shall
execute a suitable confidentiality agreement reasonably satisfactory to WGL
prior to conducting such audit. Such representative may disclose to Medtronic
only its conclusions regarding the accuracy and completeness of such reports,
and shall not disclose Confidential Information of WGL to Medtronic without the
prior written consent of WGL. Any such request for an audit must be made by
Medtronic within six months of any announced price increase hereunder.

      (c) The provisions of this Subsection (c) shall not apply price increases
based on costs identified in subpart (v) paragraph (a) above. Subject to the
preceding sentence notwithstanding any contrary provisions of this Agreement
including but not limited to Medtronic's obligations pursuant to Sections 5.1
and 5.2 hereof, during the period in which price increases are permitted under
this Agreement (i) in the event the price of SVO Batteries is increased beyond *
then each of the purchase Quotas set forth in Section 5.2 shall thereupon be
automatically reduced by * percent *, and (ii) in the event the price of SVO
Batteries is increased beyond * then each of the purchase Quotas set forth in
Section 5.2 shall thereupon be automatically reduced by * percent *, and (iii)
in the event the price of SVO Batteries is increased beyond * then each of the
purchase Quotas set forth in Section 5.1 and 5.2 shall thereupon be
automatically reduced to *, and Medtronic shall not be required to purchase *
SVC Batteries from WGL. Any aforementioned reduction in Quota will not affect
the validity or term of the License Agreement.

                                    ARTICLE 7
                        INSPECTION, WARRANTY AND SERVICE

7.1 Inspection of SVO Batteries. Medtronic shall conduct any incoming inspection
tests not later than forty five (45) days from the date of receipt of SVO
Batteries at the shipping address to which Medtronic has requested delivery of
such SVO Batteries. SVO Batteries not rejected by Medtronic by written notice to
WGL within such period shall be deemed accepted, with the exception of SVO
Batteries with latent defects that are not readily observable by Medtronic. In
the event of any shortage, damage or discrepancy in or to a shipment of SVO
Batteries or in the event any SVO Batteries fail to comply with the then current
specifications for SVO Batteries, Medtronic shall promptly report the same to
WGL and furnish such written evidence or other documentation as WGL

                                      -18-
<PAGE>

reasonably may deem appropriate. If evidence indicates that such shortage,
damage or discrepancy or non-conformity with specifications existed at the time
of delivery of SVO Batteries at the F.O.B. point, Medtronic may return the SVO
Batteries to WGL at WGL's expense, and at Medtronic's request WGL shall promptly
deliver substitute SVO Batteries to Medtronic in accordance with the delivery
procedures set forth herein.

7.2 Warranty. WGL warrants to Medtronic that SVO Batteries sold by WGL to
Medtronic under this Agreement shall be in conformance with applicable
specifications and shall be free from defects in material and workmanship at the
time of delivery of said svo Batteries at the F.O.B. point.

7.3 Limited Warranty. THE WARRANTIES SET FORTH ABOVE ARE IN LIEU OF ALL OTHER
WARRANTIES, EXPRESS OR IMPLIED, WHICH ARE HEREBY DISCLAIMED AND EXCLUDED BY WGL,
INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE OR USE.

                                    ARTICLE 8
                                 CONFIDENTIALITY

8.1 Non-Disclosure. Each party agrees not to use any Confidential Information
of the other party during the term of this Agreement and for a period of five
(5) years thereafter for any purpose other than as permitted or required for
performance by the party receiving such Confidential Information of its rights
or duties hereunder or under the License Agreement. Each party further agrees
not to disclose or provide any of such Confidential Information of the other
party to any third party, other than as permitted or required for performance by
the parties receiving such Confidential Information of its rights or duties
hereunder or under the License Agreement, and to take appropriate measures to
prevent any such disclosure by its present and future employees, officers,
agents, subsidiaries, or consultants during the term of this Agreement and for a
period of five (5) years thereafter. Without limitation of the foregoing, the
recipient of Confidential Information of the other party shall protect such
Confidential Information by using the same degree of care, but no less than a
reasonable degree of care, to prevent the unauthorized use, dissemination or
publication of the Confidential Information, as the recipient uses to protect
its own proprietary information of a like nature.

                                    ARTICLE 9
                              INTELLECTUAL PROPERTY

9.1 Ownership. WGL represents and warrants to Medtronic the following: Neither
WGL, its business nor any of WGL's SVO Batteries nor the execution and
performance of this Agreement and the License Agreement and the transactions
contemplated herein and

                                      -19-
<PAGE>

therein, infringes, misuses, misappropriates or conflicts with the patent and
other intellectual property rights or contract rights, of others. WGL has full
corporate right and authority to enter into this Agreement, the License
Agreement and the Security Agreement. WGL agrees to defend and hold Medtronic
harmless against monetary liability to any third party arising out of any claim
by such third party of patent or other intellectual property rights infringement
or contract rights violation based upon Medtronic's sale of Products
incorporating SVO Batteries supplied by WGL, including reasonable legal fees and
expenses, but excluding incidental, special or consequential damages and,
without limitation, loss of sales, profits or revenues. The provisions of this
Section shall survive the termination and expiration of the Supply Agreement.

                                   ARTICLE 10
                           LIMITATION OF WGL LIABILITY

10.1 Remedies for Breach of Warranty. In the event that any SVO Battery
manufactured or sold by WGL to Medtronic under this Agreement fails to comply
with the limited warranty provided for in Article 7 and Medtronic delivers
notice of such noncompliance to WGL, within 12 :months of the delivery of such
SVO Battery to Medtronic (or within 12 months of Medtronic's discovery of any
latent defects in an SVO Battery that are not readily observable by Medtronic),
WGL will, upon substantiation that the SVO Battery has been stored, preserved
and used in accordance with Section 2.1, correct such failure by suitable repair
or replacement at its own expense. WGL agrees that it will promptly inform
Medtronic in writing of any actual or potential problems of which WGL becomes
aware relating to the performance of any SVO Battery design manufactured for
Medtronic relative to the specifications for such design.

10.2 Limitation of Liability. The repair or replacement of any defective SVO
Battery or any SVO Battery which does not conform with applicable specifications
as provided, for herein, in the manner provided above, shall (except with
respect to the remedies specifically provided for in this Agreement regarding
delivery delays and such other remedies as are specifically provided for in this
Agreement, including the remedy provided to Medtronic in Section 10.3 hereof)
constitute the full extent of WGL's liability to Medtronic with respect to SVO
Batteries sold hereunder. In no event shall WGL be liable under this Supply
Agreement or the License Agreement for incidental, special or consequential
damages, including, but not limited to, loss of sales, profits or revenues or
costs of any partial or total recall of Product in which SVO Batteries may have
been incorporated, and in no event shall WGL be liable in an amount in excess of
its product liability insurance as provided for under Section 10.3. The
provisions of Sections 10.1 and 10.2 shall survive the expiration or termination
of this Agreement.

                                      -20-
<PAGE>

10.3 products Liability Insurance. WGL shall maintain product liability
insurance in such amounts as ordinary good business practice for its type of
business would make advisable and shall provide Medtronic with evidence of this
coverage. Such product liability insurance shall name Medtronic, Inc. as an
additional named insured thereunder, it being understood that Medtronic shall
have the right to seek recovery under said, product liability insurance for any
claims for damages, liabilities, costs (including but not limited to attorneys'
fees), settlements or judgments which may be made against Medtronic on account
of personal injury or property damage to any person caused by or arising from
defects in materials, design, workmanship, or manufacture of SVO Batteries
supplied by WGL to Medtronic under this Agreement, and Medtronic agrees to seek
recovery for any such claims directly from WGL's product liability insurance
carrier. Medtronic acknowledges and agrees that the amount of product liability
insurance maintained by WGL on the date of this Agreement, which is set forth in
the certificate of insurance to be delivered to Medtronic simultaneously
herewith, satisfies the criteria set forth in this Section 10.3.

                                   ARTICLE 11
                              TERM AND TERMINATION

11.1 Term. This Agreement shall become binding and enforceable on the date upon
which it is fully executed by the parties hereto, however, the terms and
provisions hereof shall become operative and shall take effect as of July 31,
1991, and this Agreement shall continue in force through July 31, 2001 at which
time it shall expire.

11.2 Termination. Notwithstanding the provisions of Section 11.1 above, this
Agreement may be terminated in accordance with the following provisions:

      (a) A party may terminate this Agreement by giving notice in writing to
      the other party in the event the other party is in breach of any material
      representation, warranty or covenant of this Agreement and shall have
      failed to cure such breach within ninety (90) days of receipt of written
      notice thereof from the first party;

      (b) A party may terminate this Agreement at any time by giving notice in
      writing to the other party, which notice shall be effective upon dispatch,
      should the other party file a petition of any type as to its bankruptcy,
      be declared bankrupt, become insolvent, make an assignment for the benefit
      of creditors, go into liquidation or receivership; or

      (c) A party may terminate this Agreement by giving notice in writing to
      the other party should an event of Force Majeure continue for more than
      one hundred eighty (180) consecutive days as provided in section 12.1
      below.

                                      -21-
<PAGE>

11.3 Rights-and Obligations on Termination. Termination of this Agreement shall
not release either party from the obligation to make payment of all amounts
previously due and payable, or which become due and payable due to termination
of this Agreement.

                                   ARTICLE 12
                                  FORCE MAJEURE

12.1 Force Majeure. Force Majeure shall mean any event or condition, not
existing as of the date of signature of this Agreement, not reasonably
foreseeable as of such date and not reasonably within the control of either
party, which prevents in whole or in material part the performance by one of the
parties of its obligations hereunder.

12.2 Notice. Upon giving notice to the other party, a party affected by an event
of Force Majeure shall be released without any liability on its part from the
performance of its obligations under this Agreement, except for the obligation
to pay any amounts due and owing hereunder, but only to the extent and only for
the period that its performance of such obligations is prevented by the event of
Force Majeure.

12.3 Suspension of Performance. During the period that the performance by one of
the parties of its obligations under this Agreement has been suspended by reason
of an event of Force Majeure, the other party may likewise suspend the
performance of all or part of its obligations hereunder to the extent that such
suspension is commercially reasonable.

                                   ARTICLE 13
                                  MISCELLANEOUS

13.1 Relationship. This Agreement does not make either party the employee, agent
or legal, representative of the other for any purpose whatsoever. Neither party
is granted any right or authority to assume or to create any obligation or
responsibility, express or implied, on behalf of or in the name of the other
party. In fulfilling its obligations pursuant to this Agreement, each party
shall be acting as an independent contractor.

13.2 Assignment. This Supply Agreement shall inure to the benefit of and be
binding upon each of the parties hereto and their respective permitted
successors and assigns. It may not be voluntarily assigned in whole or in part
by either party without the prior written consent of the other; provided,
however, that a successor in interest by merger, by operation of law, purchase
or otherwise of the entire business (with respect to Medtronic, the business
being that relating to Products; with respect to WGL, the business being that
relating to SVO Batteries) of either party shall acquire all interest of such
party hereunder, and further provided that a party may assign this Supply
Agreement to an

                                      -22-
<PAGE>

Affiliate of such party (the party to this Supply Agreement who makes any such
assignment to an Affiliate shall, notwithstanding such assignment, remain fully
responsible for assuring, and for any failure to assure, prompt performance by
such Affiliate of all of such assigning party's obligations under this Supply
Agreement). Any prohibited assignment shall be null and void. Nothing
contained in this assignment provision shall be construed as limiting or
restricting in any way WGL's ability to restructure as a publicly owned entity.

13.3 Entire Agreement. This Agreement and the License Agreement and Security
Agreement constitute the entire agreement of the parties with respect to the
subject matter hereof and Supersedes all previous proposals or agreements, oral
or written, and all negotiations, conversations or discussions heretofore had
between the parties related to the subject matter of this Agreement, the License
Agreement and the Security Agreement. Notwithstanding the foregoing, those
provisions of the existing development contract between WGL and Medtronic dated
July 1990 for WGL battery Model 8952 (for use in Medtronic PCD Model 7219),
those of the development contract between WGL and Medtronic for WGL battery
#8830 (for use in Medtronic PCD Model 7217) and those provisions of any other
development agreements which have provisions which were effective prior to the
date of this Agreement, shall remain in effect to the extent such provisions are
not contrary to the terms and provisions of this Agreement.

13.4 Governing Law. This Agreement shall be governed by, and interpreted and
construed in accordance with, the laws of the State of New York, U.S.A.

13.5 Survival. All of the representations, warranties, and indemnifications made
in this Agreement, and all terms and provisions hereof intended to be observed
and performed by the parties after the termination hereof, shall survive such
termination and continue thereafter in full force and effect, subject to
applicable statute of limitations.

13.6 Waiver, Discharge, etc. This Agreement may not be released, discharged,
abandoned, changed or modified in any manner, except by an instrument in writing
signed on behalf of each of the parties to this Agreement by their duly
authorized representatives. The failure of either party to enforce at any time
any of the provisions of this Agreement shall in no way be construed to be a
waiver of any such provision, nor in any way to affect the validity of this
Agreement or any part of it or the right of either party after any such failure
to 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.

13.7 Execution in Counterparts. This Agreement may be executed in one or more
counterparts, all of which shall be considered one and

                                      -23-
<PAGE>

the same agreement, and shall become a binding agreement when one or more
counterparts have been signed by each party and delivered to the other party.

13.8 Titles and Headings; Construction. The titles and headings to Sections
herein are inserted for the convenience of reference only and are not intended
to be a part of or to affect the meaning or interpretation of this Agreement.
This Agreement shall be construed without regard to any presumption or other
rule requiring construction hereof against the party causing this Agreement to
be drafted.

13.9 Benefit. Nothing in this Agreement, expressed or implied, is intended to
confer on any person other than the parties to this Agreement or their
respective successors or assigns, any rights, remedies, obligations or
liabilities under or by reason of this Agreement.

13.10 Notices. All notices or other communications to a party required or
permitted hereunder shall be in writing and shall be delivered personally or by
telecopy (receipt confirmed) to such party (or, in the case of an entity, to an
executive officer of such party) or shall be given by certified mail, postage
prepaid with return receipt requested, addressed as follows:

if to Manufacture, to:

             Wilson Greatbatch Ltd.
             10,000 Wehrle Drive
             Clarence, New York 14031
             Attention: Edward F. Voboril, President and Chief Executive Officer

and if to Medtronic, to:

             Medtronic, Inc.
             Corporate Center
             7000 Central Avenue N.E.
             Minneapolis, Minnesota 55432
             Attention: Michael D. Ellwein,  Vice President  Corporate
                        Development and Assistant General counsel

WGL or Medtronic may change their respective above-specified recipient and/or
mailing address by notice to the other party given in the manner herein
prescribed. All notices shall be deemed given on the day when actually delivered
as provided above (if delivered personally or by telecopy) or on the day shown
on the return receipt (if delivered by mail).

13.11 Severability. If any provision of this Agreement is held invalid by a
court of competent jurisdiction, the remaining provisions shall nonetheless be
enforceable according to their

                                      -24-
<PAGE>

terms. Further, if any provision is held to be overbroad as written, such
provision shall be deemed amended to narrow its application to the extent
necessary to make the provision enforceable according to applicable law and
shall be enforced as amended.

13.12 Execution of Further Documents. Each party agrees to execute and
deliver without further consideration any further applications, Licenses,
assignments or other documents, and to perform such other lawful acts as the
other party may reasonably require to fully secure and/or evidence the rights
or interests herein.

13.13 No Modification by Form Documents. In no event will the use by Medtronic
of any form of purchase order, or the use by WGL of any form of acknowledgement
or shipping document, be effective to vary, alter or modify the terms and
provisions of this Agreement; nor will such use have the effect of substituting
the provisions set forth on such form for the provisions contained in this
Agreement.

13.14 Contemporaneous Agreements. Contemporaneous with the execution of this
Agreement, each of the parties hereto shall execute and deliver to the other the
License Agreement in form attached hereto as Exhibit A, and WGL shall execute
and deliver to Medtronic the Security Agreement in form attached hereto as
Exhibit B.

      IN WITNESS WHEREOF, each of the parties has caused this Agreement to be
executed below in the manner appropriate to each.

                                        WILSON GREATBATCH LTD.

                                        By /s/ Edward F. Voboril
                                          --------------------------------------

                                        Its President / CEO
                                           -------------------------------------

                                        MEDTRONIC, INC.

                                        By /s/ B. Kristine Johnson
                                          --------------------------------------
                                        Its Vice President
                                           -------------------------------------

                                      -25-

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