Document:

www.EXFILE.com  888.775-4789  BOSTON SCIENTIFIC CORP. FORM 10-Q

    EXHIBIT
      10.6

    SETTLEMENT
      AGREEMENT

    

    This
      Settlement Agreement ("Agreement") is entered into as of this 29th day of July,
      2006, by and between Boston Scientific Corporation, a corporation organized
      and
      existing under the laws of the State of Delaware ("BSC"), Guidant Corporation,
      a
      corporation organized and existing under the laws of the State of Indiana
      ("Guidant"),
      Cardiac Pacemakers, Inc., a corporation organized and existing under the laws
      of
      the State of Minnesota ("CPI"), Guidant Sales Corporation, a corporation
      organized and existing under the laws of the State of Indiana ("GSC"), and
      Advanced Bionics Corporation, a corporation organized and existing under the
      laws of the State of Delaware ("ABC"), on the one hand (hereinafter collectively
      referred to as the "BSC Parties"), and St. Jude Medical, Inc., a corporation
      organized and existing under the laws of the State of Minnesota ("St. Jude"),
      St. Jude Medical S.C., Inc., a corporation organized and existing under the
      laws
      of the State of Minnesota ("SJMSC"), Pacesetter, Inc., a corporation organized
      and existing under the laws of the State of Delaware ("Pacesetter"), and
      Advanced Neuromodulation Systems, Inc., a corporation organized and existing
      under the laws of the State of Texas ("ANS"), on the other hand (hereinafter
      collectively referred to as the "St. Jude Parties"). The BSC Parties and the
      St.
      Jude Parties shall collectively be referred to as the "Parties" in this
      Agreement.

    RECITALS

    WHEREAS,
      there currently are pending between the BSC Parties and the St. Jude Parties
      the
      following cases:

     

    
      	1.         
               	
              Cardiac
                Pacemakers, Inc. et
                al. v. St. Jude Medical, Inc. et al.,
                Civil Action No. 1-96-cv-1718 DFH/TAB, (S.D. Ind.) (the "Indiana
                case");

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	2.           	
              Pacesetter,
                Inc. et al. v. Cardiac Pacemakers, Inc. et
                al.,
                Case No. 02-1337 DWF/SRN, (D. Minn.) (the "Minnesota Pacesetter
                case");

            

    

     

    
      	3.           	
              Cardiac
                Pacemakers, Inc. et
                al. v. St. Jude Medical, Inc. et al.,
                Civil Action No. 04-1016 JMR/FLN (D. Minn.) (the "Minnesota CPI
                case");

            

    

     

    
      	4.           	
              Guidant
                Corp. et al. v. St. Jude Medical, Inc. et al.,
                Civil Action No. 04-0067-SLR (D. Del.) (the "Delaware
                case");

            

    

     

    
      	5.           	
              Pacesetter,
                Inc. et al. v. Intermedics, Inc. et
                al.,
                Case No. CV 06-3166 GHK(FFMx) (C.D. Cal.) (the "California
                case");

            

    

     

    
      	6.           	
              Advanced
                Neuromodulation Systems, Inc. v. Advanced Bionics Corp.,
                Civil Action No. 4:04cv131 (E.D. Tex); Advanced
                Bionics Corp. v. Advanced Neuromodulation Systems, Inc.,
                Civil Action No. 4:04cv131 (E.D. Tex.); and the Advanced
                Neuromodulation Systems, Inc. v. Advanced Bionics Corp
                arbitration, Institute for Conflict Prevention and Resolution Case
                No.
                G-06-08A (the "ANS/ABC cases");

            

    

     

    all
      of
      which are collectively referred to herein as the "Litigation";

    WHEREAS,
      the BSC Parties and the St. Jude Parties entered into discussions in an effort
      to resolve the Litigation;

    WHEREAS,
      in connection with the discussions with the BSC Parties (and with their
      permission), the St. Jude Parties entered into discussions with representatives
      of MFV (as defined below) in an effort to resolve the Indiana case and the
      Delaware case, but the St. Jude Parties' efforts at negotiating a resolution
      of
      those cases with the representatives of MFV were unsuccessful;

    WHEREAS,
      the Parties now wish to settle certain cases of the Litigation and to limit
      the
      issues remaining in the rest of the Litigation, upon the terms and conditions
      set forth in this Agreement (and the Exhibits hereto);

    NOW,
      THEREFORE, in consideration of the promises and of the mutual covenants
      hereinafter set forth, and of the good and valuable consideration flowing from
      each party to the other, the Parties hereto, intending to be legally bound
      hereby, covenant and agree as follows:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      I

    Definitions

    Section
      1.01. Affiliates.
      "Affiliates" as used herein shall have the meaning set forth in the CRM License
      Agreement.

    Section
      1.02. CRM
      License Agreement.
      "CRM
      License Agreement" as used herein shall mean the license agreement relating
      to
      cardiac rhythm management products by and between Boston Scientific Corporation
      and St. Jude Medical, Inc., dated July 29, 2006, an executed copy of which
      is
      attached hereto as Exhibit A.

    Section
      1.03. SCS
      License Agreement.
      "SCS
      License Agreement" as used herein shall mean the license agreement relating
      to
      spinal cord stimulation products by and between Boston Scientific Corporation
      and St. Jude Medical, Inc., dated July 29, 2006, an executed copy of which
      is
      attached hereto as Exhibit B.

    Section
      1.04. Medtronic
      Action.
      The
      "Medtronic Action" as used herein shall mean the litigation captioned
Medtronic,
      Inc. v. Guidant Corporation, et al.,
      case
      number 05-1515, currently pending in the U.S. Court of Appeals for the Federal
      Circuit, and any continuation of that action at the district court or appellate
      court levels following the issuance of a mandate by the Federal
      Circuit.

    Section
      1.05 MFV. "MFV"
      as
      used herein shall mean Mirowski Family Ventures, LLC, a limited liability
      company organized under the laws of the State of Maryland. MFV is also a
      plaintiff adverse to the St. Jude Parties in the Indiana case and the Delaware
      case.

    Section
      1.06. SCS
      Field.
      "SCS
      Field" as used herein shall have the meaning set forth in the SCS License
      Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section
      1.07.
      Derivative
      Product.
      "Derivative Product” as used herein shall mean any product subsequently approved
      by applicable regulatory authorities for use in spinal cord stimulation to
      manage chronic pain of the trunk and limbs that is of substantially equivalent
      design and functionality as a product that is commercially marketed and sold
      as
      of the Effective Date. In the interest of clarity, a future product shall be
      considered a "Derivative Product" unless it is covered by a patent (other than
      the Licensed Patents) that does not cover a product commercially marketed and
      sold as of the Effective Date. Whether a future product is a "Derivative
      Product" shall be determined on a patent-by-patent basis; a future product
      that
      is not a "Derivative Product" with respect to one patent shall not be exposed
      to
      claims of infringement based on any other patent for which the product is a
      "Derivative Product."

    Section
      1.08. Effective
      Date.
      "Effective Date" as used herein shall mean July 29, 2006.

    ARTICLE
      II

    Dismissal
      of Certain Cases and Narrowing of Issues In Remaining Cases

     

    Section
      2.01. Contemporaneously
      with the execution of this Agreement, the Parties shall execute and promptly
      file with the appropriate courts the following documents:

     

    
      	a.           
               	
              A
                stipulation for dismissal with prejudice of the Minnesota Pacesetter
                case
                in the form of Exhibit C;

            

    

     

    
      	b.             	
              A
                stipulation for dismissal with prejudice of the Minnesota CPI case
                in the
                form of Exhibit D;

            

    

     

    
      	c.             	
              A
                stipulation for dismissal with prejudice of the California case in
                the
                form of Exhibit E;

            

    

     

    
      	d.             	
              A
                stipulation for dismissal with prejudice of the ANS/ABC cases in
                the form
                of Exhibits F and G;

            

    

     

    The
      foregoing cases constitute the "Dismissed Litigation." Those cases not so
      dismissed pursuant to this Section 2.01 constitute the "Remaining
      Litigation."

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section
      2.02. The
      Parties further agree that the issues remaining to be litigated in the Remaining
      Litigation shall be circumscribed and continue only within the following
      parameters:

     

    
      	a.             	
              The
                Indiana case.
                

            

    

     

    
      	i.           
               	
              In
                consideration for the St. Jude Parties' covenants and agreements
                in
                Sections 2.02, 2.03 and 2.04 of this Agreement, the BSC Parties covenant
                and agree that plaintiffs in the Indiana case shall withdraw and/or
                not
                further pursue any damages claim for lost profits, price erosion,
                an "up
                front" royalty payment, prejudgment interest, or attorneys’ fees against
                the St. Jude Parties. In addition, the BSC Parties covenant and agree
                that
                plaintiffs in the Indiana case shall only pursue a damages claim
                based on
                pulse generators and leads which plaintiffs contend infringe the
                patent
                claim asserted in the Indiana case, and will withdraw and/or not
                pursue
                any damages claim based on other products, whether through a "convoyed
                sales" theory or otherwise. Notwithstanding such covenant and agreement,
                it is understood that the defendants in the Indiana case shall continue
                to
                be free to argue that damages are not warranted due to non-infringement,
                invalidity and/or other defenses, except as set forth in Section
                2.02(a)(ii), below. The BSC Parties further covenant and agree that
                plaintiffs in the Indiana case shall limit any claim for damages
                to a
                reasonable royalty theory, with a royalty that shall not exceed three
                percent (3%) of the net sales revenue from any sales found to infringe
                the
                patent in suit, and that plaintiffs shall not be entitled to receive
                any
                payment in connection with the Indiana case, by way of judgment or
                

            

    

    
    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

      
        	 	
                otherwise,
                  that exceeds three percent (3%) of the net sales revenue from any
                  sales
                  found to infringe the patent in
                  suit.

              

      

      
      

       

    

    
      	ii.             	
              In
                consideration for the BSC Parties' covenants and agreements in Sections
                2.02, 2.03 and 2.04 of this Agreement, the St. Jude Parties covenant
                and
                agree that they will withdraw and/or not further pursue their fraud
                claim
                and any claim for attorneys’ fees. In addition, the St. Jude Parties
                covenant and agree not to seek to introduce any evidence of Guidant
                product recalls; provided, however, that the BSC Parties covenant
                and
                agree to ensure that plaintiffs will not seek to introduce any evidence
                of
                St. Jude product recalls. The St. Jude Parties further covenant and
                agree
                that (1) defendants in the Indiana case will not seek discovery on
                or
                introduce any evidence in pleadings or court relating to Dr. Bourland’s
                conduct or plaintiffs’ conduct vis a vis Dr. Bourland in connection with
                the trial of this matter in June 2001 and related information revealed
                after that trial; and (2) defendants in the Indiana case will not
                pursue
                any claim or defense (e.g., unclean hands, inequitable conduct,
                unenforceability, estoppel, misuse, and/or fraud) based, in-whole
                or
                in-part, on Dr. Bourland’s conduct in connection with the trial of this
                matter in June 2001 or based, in-whole or in-part, on plaintiffs’ conduct
                vis a vis Dr. Bourland in connection with the trial of this matter
                in June
                2001 and related information revealed after that trial. Defendants
                will
                remain free to pursue any defense (including, but not limited to,
                inequitable conduct, unenforceability and misuse) to the extent that
                such
                defense is not based in

            

    

    
    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

      
        	      	
                whole
                  or in part on Dr. Bourland’s conduct in connection with the trial of this
                  matter in June 2001 or based, in-whole or in-part, on plaintiffs’ conduct
                  vis a vis Dr. Bourland in connection with the trial of this matter
                  in June
                  2001 and related information revealed after that trial; and plaintiffs
                  will remain free to argue that any such defense is not warranted
                  or is not
                  properly before the Indiana court, whether based on law of the
                  case,
                  waiver, failure of proof, judgment as a matter of law, or other
                  ground.

              

      

      
      

       

    

    
      	b.             	
              The
                Delaware case.
                

               

            

    

    
      	i.             	
              In
                consideration for the St. Jude Parties' covenants and agreements
                in
                Sections 2.02, 2.03 and 2.04 of this Agreement, the BSC Parties covenant
                and agree that plaintiffs in the Delaware case shall withdraw and/or
                not
                further pursue any damages claim for lost profits, price erosion,
                an "up
                front" royalty payment, enhanced damages (i.e.,
                treble damages and/or attorneys' fees), or prejudgment interest,
                against
                the St. Jude Parties. In addition, the BSC Parties covenant and agree
                that
                plaintiffs in the Delaware case shall only pursue a damages claim
                based on
                pulse generators and leads which plaintiffs contend infringe the
                patent
                claims asserted in the Delaware case, and will withdraw and/or not
                pursue
                any damages claim based on other products, whether through a "convoyed
                sales" theory or otherwise. Notwithstanding such covenant and agreement,
                it is understood that the defendants in the Delaware case shall continue
                to be free to argue that damages are not warranted due to
                non-infringement, invalidity and/or other defenses, except as set
                forth
                in

            

    

    
    

     

    
       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	  	
                 

              

      

      
        	            	
                Section
                  2.02(b)(ii), below. The BSC Parties also covenant and agree that
                  plaintiffs in the Delaware case shall withdraw their request for
                  and/or
                  not further pursue an injunction until all appeals have been exhausted
                  and
                  any judgment of infringement is final and no longer appealable.
                  The BSC
                  Parties further covenant and agree that plaintiffs in the Delaware
                  case
                  shall limit any claim for damages to a reasonable royalty theory,
                  with a
                  royalty that shall not exceed three percent (3%) of the net sales
                  revenue
                  from any sales found to infringe the patent in suit, and that plaintiffs
                  shall not be entitled to receive any payment in connection with
                  the
                  Delaware case, by way of judgment or otherwise, that exceeds three
                  percent
                  (3%) of the net sales revenue from any sales found to infringe
                  the patent
                  in suit.

              

      

      
      

       

    

    
      	ii.             	
              In
                consideration for the BSC Parties' covenants and agreements in Sections
                2.02, 2.03 and 2.04 of this Agreement, the St. Jude Parties covenant
                and
                agree that they will withdraw and/or not further pursue their fourth
                ("no
                error"), sixth ("intervening rights"), and eighth ("claim splitting")
                affirmative defenses, and any claim for attorneys’ fees. In addition, the
                St. Jude Parties covenant and agree not to seek to introduce any
                evidence
                of Guidant product recalls; provided, however, that the BSC Parties
                covenant and agree to ensure that plaintiffs will not seek to introduce
                any evidence of St. Jude product
                recalls.

            

    

    
    

     

    
      	iii.             	
              Notwithstanding
                any contrary outcome of the Delaware case, the Parties agree that
                defendants in the Delaware case shall not be placed in a position
                that is
                worse than that of Medtronic as a result of the final resolution
                of
                the

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

      
        	           	
                Medtronic
                  Action.  In particular, should Medtronic obtain a final,
                  non-appealable judgment in the Medtronic Action invalidating one
                  or more
                  patent claims which plaintiffs in the Delaware case have asserted
                  against
                  the defendants in the Delaware case, the Parties agree that
                  defendants in the Delaware case shall owe no damages or payments
                  to the
                  plaintiffs on any such patent claim(s).  In addition, the Parties
                  agree that, should Medtronic agree to a settlement with BSC and/or
                  MFV of the Medtronic Action on terms more favorable than the terms
                  plaintiffs have sought from the defendants in the Delaware case,
                  then
                  plaintiffs in the Delaware case shall limit their pursuit of any
                  claim for
                  damages in the Delaware case such that any damages claim is no
                  less
                  favorable for the defendants in the Delaware case than the terms
                  of the
                  settlement in the Medtronic Action are favorable for Medtronic,
                  and any
                  damages or payments owed by the defendants in the Delaware case
                  shall be
                  so limited.

              

      

       

    

    Section
      2.03. Further
      Agreements.
      The BSC
      Parties agree that St. Jude and its Affiliates shall be free to seek to
      negotiate an agreement with MFV resolving the Indiana case and the Delaware
      case
      and that the BSC Parties will take no action to interfere with the further
      efforts of St. Jude and its Affiliates to negotiate with MFV a resolution of
      such cases. In connection with, and contingent upon, MFV's settlement of the
      Indiana case and the Delaware case with St. Jude and its Affiliates, the BSC
      Parties covenant, consent and agree to: (1) license or sublicense the MFV patent
      portfolio to the St. Jude and/or its Affiliates (as provided in Section 2.06
      of
      the CRM License Agreement) and/or permit MFV to provide St. Jude and/or its
      Affiliates with such a license or sublicense directly on the same or different
      terms as St. Jude and MFV may agree; 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    and
      (2)
      dismiss the Indiana case and the Delaware case for no royalty or other
      consideration payable to BSC (including, by way of example, no payment of any
      settlement proceeds to BSC and no reimbursement of the costs of litigation
      BSC
      or any of its Affiliates may have incurred). The BSC Parties further covenant
      and agree that any license or sub-license resulting from a settlement between
      St. Jude and its Affiliates and MFV may be on different terms than those terms
      under which BSC and/or its Affiliates are currently licensed by MFV, but, in
      any
      event, shall not be on terms less favorable to St. Jude and/or its Affiliates
      than the terms under which BSC and/or its Affiliates are currently licensed
      by
      MFV. The BSC Parties also covenant and agree to execute any further documents
      or
      make any additional undertakings that may be necessary to effectuate the
      provisions of this Section 2.03. The St. Jude Parties covenant and agree that
      St. Jude and/or its Affiliates will be solely responsible for any payments
      to
      MFV in connection with any settlement with MFV resolving the Indiana case and
      the Delaware case.

    Section
      2.04. Conduct
      of the Remaining Litigation.
      The BSC
      Parties and the St. Jude Parties further covenant and agree to conduct remaining
      portions of the Indiana case and the Delaware case as follows:

    a. Scheduling
      of the Indiana Case.
      The BSC
      Parties and the St. Jude Parties covenant and agree that plaintiffs and
      defendants will cooperate in good faith to negotiate and make such adjustments
      to the pre-trial and trial schedule in the Indiana case as are mutually
      acceptable such that no party suffers prejudice in meeting any applicable
      discovery, pretrial or trial deadlines. In order to effectuate the foregoing,
      the Parties covenant and agree to develop a jointly proposed pre-trial and
      trial
      schedule through good faith negotiations and to jointly request that the Court
      in the Indiana case vacate the

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    existing
      pre-trial and trial schedule if they cannot agree on a schedule that maintains
      the existing trial date.

    b. Scheduling
      of the Delaware Case.
      The BSC
      Parties and the St. Jude Parties covenant and agree that plaintiffs and
      defendants will cooperate in good faith to negotiate and make such adjustments
      to the pre-trial and trial schedule in the Delaware case as are mutually
      acceptable such that no party suffers prejudice in meeting any applicable
      discovery, pretrial or trial deadlines. In order to effectuate the foregoing,
      the Parties covenant and agree to develop a jointly proposed pre-trial and
      trial
      schedule through good faith negotiations and to jointly request that the Court
      in the Delaware case vacate the existing pre-trial and trial
      schedule.

    c. Use
      of
      This Agreement in the Remaining Litigation.
      The BSC
      Parties and the St. Jude Parties covenant and agree that this Agreement, along
      with all of the other agreements and stipulations that are to be executed by
      the
      Parties as contemplated herein, shall be protected under Federal Rule of
      Evidence 408 and any other applicable state or federal privileges or immunities
      from use as evidence with respect to settlements or offers to compromise and
      that neither plaintiffs nor defendants shall seek to introduce this Agreement
      or
      the CRM License Agreement as evidence in either the Indiana case or the Delaware
      case for any purpose other than as may reasonably be required to enforce and
      effectuate the provisions of this Agreement.

    d. No
      Admissions.
      The BSC
      Parties and the St. Jude Parties covenant and agree that nothing in this
      Agreement shall be construed as an admission of liability by any party and
      that
      neither plaintiffs nor defendants will seek to use or construe this

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Agreement
      in the Indiana case or the Delaware case as an admission of liability by any
      party.

    Section
      2.05. Additional
      Agreements Regarding the Lauro Arbitration.
      With
      respect to the arbitration claims asserted by ANS against Bonaventura (Reno)
      Lauro (International Institute for Conflict Prevention and Resolution Case
      No.
      G-06-07A) (the "Lauro Arbitration"), the BSC Parties additionally covenant
      and
      agree to deliver to St. Jude within five (5) business days of the Effective
      Date, a signed, written release and stipulation from Bonaventura (Reno) Lauro
      in
      which Mr. Lauro has agreed to a mutual dismissal with prejudice of the
      arbitration between ANS and Mr. Lauro that is pending before the International
      Institute for Conflict Prevention and Resolution, Case No. G-06-07A (the "Lauro
      Arbitration") and releasing all related claims between Mr. Lauro and the St.
      Jude Parties.

    ARTICLE
      III

    Cross
      Licenses

    Section
      3.01. As
      part
      of the consideration for entering into this Agreement, the Parties shall execute
      contemporaneously with the execution of this Agreement the CRM License Agreement
      and the SCS License Agreement. The Parties further covenant and agree to cause
      each of their Affiliates that holds any ownership interest in the Licensed
      Patents (as defined in the CRM License Agreement or SCS License Agreement,
      as
      appropriate) to execute and deliver to the other party within thirty (30) days
      after the Effective Date a Consent and Agreement to be Bound by License,
      substantially in the form of Exhibit I, hereto, with regard to the CRM License
      Agreement, and the SCS License Agreement. The Parties agree that their sole
      remedy for any failure by a party to cause an Affiliate to execute and deliver
      a
      required Consent and Agreement

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    to
      be
      Bound by License pursuant to this Section 3.01 shall be limited to the
      provisions of Section 7.06 of this Agreement.

    ARTICLE
      IV

    Mutual
      Releases

    Section
      4.01. All
      claims and counterclaims in the Dismissed Litigation shall be dismissed with
      prejudice, and each party, for itself and its successors and assigns, hereby
      releases, acquits, and forever discharges the other party and its Affiliates,
      successors, and assigns, and all their respective officers, directors,
      employees, agents, and representatives from all such claims and counterclaims.
      Neither these releases, nor the dismissal of the ANS/ABC Cases, are intended
      to
      prejudice or impair the rights created or preserved in the SCS License
      Agreement, and the Parties specifically agree not to assert otherwise.

    Section
      4.02.
       Each
      party, for itself and its successors and assigns, and its Affiliates and their
      respective successors and assigns, hereby expressly waives any right that it
      may
      have under the laws or statutes of any jurisdiction that limits the extension
      of
      a release to certain types of claims, including, but not limited to, California
      Civil Code § 1542, which provides that: "A
      general release does not extend to claims which the creditor does not know
      or
      suspect to exist in his or her favor at the time of executing the release,
      which
      if known by him or her must have materially affected his or her settlement
      with
      the debtor."

    ARTICLE
      V

    Termination
      of Japanese Distribution Agreement

    Section
      5.01. The
      Parties hereby agree that the Distribution Agreement by and between Advanced
      Neuromodulation Systems, Inc. and Boston Scientific Corporation dated June
      20,
      2002, (the "Japanese Distribution Agreement") and the respective rights and
      obligations of St.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     Jude
      and its Affiliates and BSC and its Affiliates set forth therein are terminated
      in all respects except for those provisions that by their terms were
      contemplated to survive any termination of the Japanese Distribution Agreement
      (the "Surviving Obligations"). Other than for the Surviving Obligations, each
      of
      the parties, for itself, its successors and assigns, hereby covenants not to
      sue, releases and forever discharges the other parties, their respective
      successors, assigns, affiliated entities, directors, officers, shareholders,
      and
      legal representatives, of and from any claims, demands, actions, cause and
      causes of action, suits, liabilities, obligations, promises, injuries or
      damages, of any name, nature or description in law or in equity, whether known
      or unknown, asserted or unasserted, suspected or unsuspected, or fixed or
      contingent, which the releasing party now has, or ever had, or which it shall
      or
      may have in the future, arising out of or in connection with the Japanese
      Distribution Agreement. 

    ARTICLE
      VI

    Covenant
      Not to Sue on Spinal Cord Stimulation Products

    Section
      6.01. The
      St.
      Jude Parties and their Affiliates hereby covenant not to sue the BSC Parties
      and/or their Affiliates, their respective successors, assigns, affiliated
      entities, directors, officers, shareholders, and legal representatives,
      distributors, resellers, customers, and end users with respect to any alleged
      infringement of patent or other intellectual property rights owned or held
      by
      St. Jude and/or its Affiliates by any products used in spinal cord stimulation
      to manage chronic pain that are currently commercially marketed and sold as
      of
      the Effective Date anywhere in the world, pursuant to FDA, CE mark, or MHLW
      approval, and all Derivative Products. 

    Section
      6.02. The
      BSC
      Parties and their Affiliates hereby covenant not to sue the St. Jude Parties
      and/or their Affiliates, their respective successors, assigns, affiliated
      entities, 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    directors,
      officers, shareholders, and legal representatives, distributors, resellers,
      customers, and end users with respect to any alleged infringement of patent
      or
      other intellectual property rights owned or held by BSC and/or its Affiliates
      by
      any products used in spinal cord stimulation to manage chronic pain that are
      currently commercially marketed and sold as of the Effective Date anywhere
      in
      the world, pursuant to FDA, CE mark, or MHLW approval, and all Derivative
      Products. 

    ARTICLE
      VII

    Representations
      and Warranties

    Section
      7.01. Each
      of
      the Parties represents and warrants that it has the power and authority to
      execute, deliver, enter into and perform this Agreement and that it is legally
      permitted to grant the rights granted and to make all covenants and perform
      all
      obligations required by this Agreement, including all of the exhibits hereto.
      

    Section
      7.02.
      Each of
      the Parties represents and warrants that to the extent that any third-party
      consents are required for the performance of any of its obligations under this
      Agreement, it has obtained all such required consents. Notwithstanding the
      foregoing, to the extent that a third party consent is required for sublicensing
      under Section 2.02 of the CRM License Agreement, this Section 7.02 is not
      intended as a representation and warranty by any party that such consent has
      been secured.

    Section
      7.03.
      The BSC
      Parties represent and warrant to the St. Jude Parties that all plaintiffs in
      the
      Delaware case and the Indiana case shall conduct those cases in accordance
      with,
      and subject to, the covenants and agreements set forth in Sections 2.02 and
      2.04, above, which are incumbent on the BSC Parties.
      The
      Parties agree that the St. Jude Parties' sole remedy for any breach of this
      Section 7.03 by the BSC Parties shall be as set forth in the provisions of
      

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section
      7.06, except that any breach of this Section 7.03 by the BSC Parties as a result
      of a failure to conduct those cases in accordance with, and subject to, the
      covenants and agreements in Section 2.02 shall also operate to relieve the
      St.
      Jude Parties from their obligations under Section 2.02, above, to an extent
      that
      is commensurate with the failure of the BSC Parties. Absent agreement of the
      Parties, the extent of relief that shall be afforded the St. Jude Parties from
      their obligations under Section 2.02, above, shall be determined by the Court
      in
      which the failure of the BSC Parties arose.

    Section
      7.04.
       The
      St.
      Jude Parties represent and warrant to the BSC Parties that defendants in the
      Delaware case and the Indiana case shall conduct those cases in accordance
      with,
      and subject to, the covenants and agreements set forth in Section 2.02, above,
      which are incumbent on the St. Jude Parties. The Parties agree that any breach
      by the St. Jude Parties of this Section 7.04 shall not result in termination
      of
      the Parties' other rights and obligations as set forth in the other provisions
      of this Agreement and that the sole remedy for breach of this Section 7.04
      by
      the St. Jude Parties as a result of a failure to conduct those cases in
      accordance with, and subject to, the covenants and agreements in Section 2.02
      shall be to relieve the BSC Parties from their obligations under Section 2.02,
      above, to an extent that is commensurate with the failure of the St. Jude
      Parties. Absent agreement of the Parties, the extent of relief that shall be
      afforded to the BSC Parties from their obligations under Section 2.02, above,
      shall be determined by the Court in which the failure of the St. Jude Parties
      arose.

    Section
      7.05.
      The
      BSC
      Parties represent and warrant that, with regard to the Indiana case and the
      Delaware case and subject to the terms of Section 2.02, above, BSC and/or its
      Affiliates shall fully perform all obligations required of BSC and/or its
      Affiliates and enforce all rights to which BSC and/or its Affiliates are
      entitled under its current agreements with MFV, except that 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    BSC
      and
      its Affiliates waive any right to any settlement proceeds and/or reimbursement
      of the costs of litigation pursuant to Section 2.03, above, in the event of
      an
      agreement between St. Jude and its Affiliates and MFV resolving the Indiana
      case
      and the Delaware case.  The
      BSC
      Parties further represent and warrant that until final, non-appealable judgments
      are entered in both the Indiana case and the Delaware case, or both of those
      cases are otherwise fully resolved and dismissed, neither BSC nor any of its
      Affiliates will modify, alter or waive any of their obligations or
      rights under any current agreement with MFV without first providing notice
      to
      and receiving written consent from the St. Jude Parties, which consent shall
      not
      be unreasonably withheld.

    Section
      7.06.
      Each
      party shall defend, indemnify, and hold harmless the other party and its
      Affiliates, and all officers, directors, employees, attorneys, agents,
      successors, and assigns of the other party and its Affiliates (collectively,
      the
      "Indemnified Parties"), against any and all legal expenses, costs, settlements,
      judgments, claims, controversies, demands, rights, disputes, grievances, causes
      of action, damages, enhanced damages, injunctions, attorneys' fees or
      prejudgment interest imposed on or incurred by any of the Indemnified Parties
      by
      reason of any failure, inaccuracy, or breach of any of the representations
      and
      warranties of such party pursuant to this Article VII or failure to obtain
      the
      consent of an Affiliate pursuant to Section 3.01, above.

    ARTICLE
      VIII

    Confidentiality/Publicity
      Concerning Agreement

    Section
      8.01. It
      is
      intended that, to the extent possible, the terms of this Agreement remain
      confidential. No party or any Affiliate of a party shall originate any
      publicity, news release, or other such general public announcement or make
      any
      other disclosure to any third party regarding the terms of this Agreement
      without the express written consent of the other 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    party
      (without limitation, the foregoing provision is not intended to limit
      communications deemed reasonably necessary or appropriate by a party or its
      Affiliate to its employees, shareholders, directors, officers,
      accountants, auditors
      and
      legal counsel). Notwithstanding the foregoing provision, the Parties and their
      respective Affiliates shall not be prohibited from making any disclosure or
      release that is required by law, court order, or applicable regulation, or
      is
      considered necessary by counsel to fulfill an obligation under securities laws
      or the rules of the New York Stock Exchange or other applicable stock exchange
      or to protect any intellectual property right in any territory so long as the
      disclosing party provides notice to the other party at least five(5) business
      days prior to such disclosure. However, the Parties agree that, with regard
      to
      any required disclosure to the Securities and Exchange Commission regarding
      this
      Agreement or the fact that it has been executed that is made on or around the
      Effective Date, prior notice to the other party shall not be
      required.

    ARTICLE
      IX

    Notices

    Section
      9.01. Any
      notice or other communication to be made pursuant to this Agreement shall be
      sent to the other party at its address listed below or at such other address
      such party may hereinafter designate to the other party in writing:

    If
      to the
      BSC Parties:

    President
      and CEO

    Boston
      Scientific Corporation

    One
      Boston Scientific Place 

    Natick,
      MA 01760-1537

    Facsimile
      No.: (508) 650-8956 

    

    with
      a
      copy to: General Counsel

     

    If
      to the
      St. Jude Parties:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    President
      and CEO

    St.
      Jude
      Medical, Inc. 

    One
      Lillehei Plaza

    St.
      Paul,
      MN 55117

    Facsimile
      No.: (651) 481-7690 

    

    with
      a
      copy to: General Counsel

     

    Notice
      shall be deemed to have been given: (i) at the expiration of two (2) business
      days from the date of delivery by facsimile transmission, provided a copy is
      deposited postage prepaid for delivery with the postal service or given for
      delivery to an express courier service on the same date as the sending of the
      facsimile, or (ii) ten (10) business days from the date the communication is
      deposited postage prepaid with the postal service or given to an express courier
      service, unless actual receipt of the notice at an earlier date is established.
      Without limitation of the foregoing, a written receipt signed by the addressee
      or its duly appointed representative situated at the addresses set forth
      hereinabove shall constitute sufficient evidence of service. Either party may
      change its address and facsimile information by written notice given in
      accordance with the provisions of this Section 9.01.

     

    ARTICLE
      X

    Alternative
      Dispute Resolution

    Section
      10.01. (a) Except
      as
      to any dispute concerning Sections 2.02 and 2.04, any dispute that arises out
      of
      or relates to this Agreement, including an alleged breach of this Agreement
      but
      excluding any dispute under Section 8.01(a) of the CRM License Agreement or
      Section 8.01(a) of the SCS License Agreement, between (i) St. Jude or a St.
      Jude
      Affiliate and (ii) BSC or a BSC Affiliate which is not resolved by negotiation
      as provided in subsection (b) of this Section 10.01 shall be resolved by binding
      Alternative Dispute Resolution (“ADR”) in the manner described in Exhibit H.
      Disputes relating to Sections 2.02 and 2.04 of this Agreement

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    may
      be
      resolved by the Court in the Indiana case or the Delaware case, as appropriate,
      or by negotiation as provided in subsection (b) of this Section 10.01; however,
      if the dispute is not resolved by such means, then the dispute shall be resolved
      by the ADR procedure of Exhibit H.

    (b) The
      Parties recognize that a bona fide
      dispute
      may arise from time to time as to certain matters that relate to this Agreement.
      In all such instances, any party may, by written notice to the other party,
      have
      such dispute referred to their respective employees designated below or their
      successors, for attempted resolution by good faith negotiations within sixty
      (60) days after such notice is received. Such designated employees are as
      follows:

    For
      the
      BSC Parties: 

     

    General
      Counsel

    Boston
      Scientific Corporation

    One
      Boston Scientific Place

    Natick,
      MA 01760-1537

    Facsimile
      No.: (508) 650-8956

    

     

    For
      the
      St. Jude Parties:

     

    General
      Counsel

    St.
      Jude
      Medical, Inc. 

    One
      Lillehei Plaza

    St.
      Paul,
      MN 55117

    Facsimile
      No.: (651) 481-7690 

    

    Any
      settlement reached by the Parties under this Section 10.01 shall not be binding
      until reduced to writing and signed by authorized officers of BSC and St. Jude.
      If the designated employees are unable to resolve such dispute within such
      sixty-day period, any party may invoke the ADR provisions of this Section
      10.01.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      XI

    General
      Provisions

    Section
      11.01. Modification.
      This
      Agreement may not be modified, changed, or terminated orally. No change,
      modification, addition, or amendment shall be valid unless given in a writing
      expressly indicating an intent to modify the Agreement and duly executed by
      the
      Parties.

    Section
      11.02. Entire
      Agreement.
      This
      Agreement, along
      with all of the other agreements and stipulations that are to be executed by
      the
      Parties as contemplated herein, constitutes
      the entire agreement among the Parties with respect to the subject matter hereof
      and supersedes any and all negotiations, correspondence, understandings and
      agreements, whether written or oral, between the Parties respecting the subject
      matter hereof.

    Section
      11.03. Governing
      Law.
      Recognizing that the laws within the United States and international
      jurisdictions vary in their content and effect with respect to similar subject
      matter, and that the Parties desire uniformity and predictability in
      interpretation and enforcement of this Agreement, the Parties have agreed to
      the
      following provisions regarding applicable law to govern this Agreement: All
      matters affecting the interpretation, form, validity, and performance of this
      Agreement shall be decided under the laws of the State of Minnesota (without
      regard to principles of conflicts of laws), including its procedural laws;
      provided, however, that (a) nothing in Minnesota state procedural law shall
      be
      deemed to alter or affect the applicability of the Federal Arbitration Act
      as
      governing arbitration of disputes as provided in this Agreement, and (b) no
      Minnesota state arbitration laws or arbitration rules shall be
      applicable.

    Section
      11.04. Force
      Majeure.
      No
      party (including any of its Affiliates) shall be liable in damages for, nor
      shall this Agreement be terminable or cancelable by reason of, any delay or
      

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    default
      in any party's performance hereunder if such default or delay is caused by
      events beyond such party's reasonable control including, but not limited to,
      acts of God, action of any government or agency thereof, war or insurrection,
      civil commotion, destruction of facilities or materials by earthquake, fire,
      flood or storm, labor disturbances, epidemic, or failure of public utilities
      or
      common carriers. The party (or Affiliates) so affected shall give prompt notice
      to the other Parties of such cause, and shall take whatever reasonable steps
      are
      necessary to relieve the effect of such cause as rapidly as possible. All
      Parties (or Affiliates) agree to endeavor to resume their performance hereunder
      if such performance is delayed or interrupted by reason of force
      majeure.

    Section
      11.05. Counterparts.
      This
      Agreement may be executed simultaneously in two or more counterparts, each
      of
      which shall be deemed to be an original.

    Section
      11.06. Captions.
      The
      captions in this Agreement are intended solely as a matter of convenience and
      are for reference only, and shall be given no effect in the construction or
      interpretation of this Agreement.

    Section
      11.07. Severability
      of Provisions.
      Should
      any part or provision of this Agreement be held unenforceable or in conflict
      with the law of any jurisdiction, the validity of the remaining parts or
      provisions shall not be affected by such holding.

    Section
      11.08. No
      Agency.
      At no
      time shall any party or its Affiliate hold itself out to be the agent, employee,
      lessee, sublessee, partner, or joint venture partner of the other party or
      its
      Affiliates. No party or its Affiliates shall have any express or implied right
      or authority to assume or create any obligations on behalf of or in the name
      of
      the other party or its Affiliates or to bind the other party or its Affiliates
      with regard to any other contract, agreement, or undertaking with a third
      party.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section
      11.09. Further
      Assurances.
      At such
      time and from time to time on and after the Effective Date upon request by
      a
      party, the other party will execute and deliver or will cause to be executed
      and
      delivered, all such further acts, acknowledgments, and assurances that may
      be
      reasonably required for carrying out the purposes of this Agreement. Such
      further assurances may include, but not be limited to, an acknowledgment by
      Affiliates of a party that such Affiliates are bound by the terms and provisions
      of this Settlement Agreement.

    Section
      11.10. Construction
      Against Waiver.
      No
      waiver of any term, provision, or condition of this Agreement, whether by
      conduct or otherwise, in any one or more instances shall be deemed to be or
      construed as a further or continuing waiver of any such term, provision, or
      condition of this Agreement; nor shall any failure to enforce any provision
      hereof operate as a waiver of such provision or of any other
      provision.

    Section
      11.11. Protective
      Orders.
      The
      court-entered confidentiality agreements and protective orders shall remain
      in
      full force and effect after dismissal of the Dismissed Litigation, and the
      Parties shall remain bound by their terms. Each party shall sequester protected
      information and documents produced in the Litigation (including all copies
      thereof), as well as other materials containing information that the other
      party
      has designated as confidential and subject to protective order. Within ninety
      (90) days of the Effective Date, each party may identify any information and/or
      document(s) produced in one or more of the Minnesota Pacesetter case, the
      Minnesota CPI case, or the Indiana case that the party desires to use in the
      Delaware case as well as any information and/or document(s) produced in one
      or
      more of the Minnesota Pacesetter case, the Minnesota CPI case, or the Delaware
      case that the party desires to use in the Indiana case. Absent an objection
      for
      good cause by the non-identifying party, the identifying party shall thereafter
      be entitled to use the information and/or document(s) as though 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    produced
      in the Indiana case and/or the Delaware case, as appropriate. Should the
      non-identifying party have good cause to object to the use of any information
      and/or document(s) so identified, the non-identifying party shall provide the
      basis for such objection within ten (10) court days of the identification of
      the
      information and/or document(s). If an objection is made, the parties shall
      promptly meet and confer to attempt a good faith resolution. If a resolution
      is
      not reached, the non-identifying party can request that the court in the Indiana
      case and/or the Delaware case, as appropriate, preclude any use of the
      objectionable information and/or document(s) by the identifying
      party.

     

    
 

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed
      and duly attested by their corporate officers authorized for this
      purpose.

     

    

    BOSTON
      SCIENTIFIC CORPORATION

     

    By:
      /s/
      Paul W.
      Sandman                            

    Executive
      Vice President, Secretary 

    and
      General Counsel

    

    ATTEST:

     

    By: /s/
      Lawrence J. Knopf         
 

     

    ST.
      JUDE
      MEDICAL, INC.

     

    By:
      /s/
      Pamela S.
      Krop                               
  

    Vice
      President, General Counsel 

    and
      Secretary

    

     

    ATTEST:

     

    By:
      /s/
      James W.A. Ladner        
 

     

    

    
 

     

     

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      A

    CRM
      License Agreement

    

    

    

    (filed
      as
      an exhibit to issuer’s Quarterly Report on Form 10-Q 

    for
      the
      fiscal quarter ended September 30, 2006)

     

    

    
 

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B

    SCS
      License Agreement

    

     

    (filed
      as
      an exhibit to issuer’s Quarterly Report on Form 10-Q 

    for
      the
      fiscal quarter ended September 30, 2006)

     

    
 

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      C

    Form
      of Dismissal of Minnesota Pacesetter Case

    
 

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    UNITED
      STATES DISTRICT COURT

    DISTRICT
      OF MINNESOTA

     

     

    
      	
              PACESETTER,
                INC., and ST. JUDE MEDICAL S.C., INC., 

               

              Plaintiffs,

            	
              Case
                No. 02-CV-1337 DWF/SRN

            
	
               

              v.

            	
               

              STIPULATION
                OF DISMISSAL UNDER FRCP 41(a)(1)(ii) &
                41(c)

            
	
               

              CARDIAC
                PACEMAKERS, INC. and GUIDANT SALES CORPORATION,

               

              Defendants.

               

            	 

    

    The
      parties to this action having settled their dispute, it is stipulated and agreed
      by and among the parties to this action, represented by their attorneys, as
      follows:

    1.  The
      Second Amended Complaint is hereby dismissed with prejudice to the
      plaintiffs.

    2.  Any
      and
      all pending motions or requests for relief by any of the parties are hereby
      withdrawn.

    3.  Each
      party is to bear its own costs and attorneys’ fees.

    So
      agreed
      and stipulated.

    

    
      	 	 	 
	
              Michael
                A. Lindsay

            	 	
              Kenneth
                A. Liebman

            
	
              DORSEY
                & WHITNEY LLP

            	 	
              Felicia
                J. Boyd

            
	
              50
                South Sixth Street, Suite 1500

            	 	
              David
                J.F. Gross

            
	
              Minneapolis,
                MN 55402

            	 	
              Julie
                Knox Chosy

            
	
              (612)
                340-2600

            	 	
              FAEGRE
                & BENSON LLP

            
	 	 	
              90
                South Seventh St., Suite 2200

            
	
              Jeffrey
                M. Olson

            	 	
              Minneapolis,
                MN 55402-3901

            
	
              SIDLEY
                & AUSTIN LLP

            	 	
              (612)
                766-7000

            
	
              555
                West Fifth Street

            	 	 
	
              Los
                Angeles, CA 90013

            	 	 
	
              (213)
                896-6000

            	 	 
	 	 	 
	
              Denis
                R. Salmon

            	 	 
	
              H.
                Mark Lyon

            	 	 
	
              GIBSON,
                DUNN & CRUTCHER LLP

            	 	 
	
              1881
                Page Mill Road

            	 	 
	
              Palo
                Alto, CA 94304

            	 	 
	
              (650)
                849-5300

            	 	 
	 	 	 
	 	 	 
	
              So
                ordered:

            	 	 
	 	 	 
	 	 	 
	 	 	 
	U.S. District
              Judge	 	Date

    

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      D

    Form
      of Dismissal of Minnesota CPI Case

    
 

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    UNITED
      STATES DISTRICT COURT

     

    DISTRICT
      OF MINNESOTA

     

     

    
      	
              CARDIAC
                PACEMAKERS, INC. and GUIDANT SALES CORPORATION,

               

              Plaintiffs,

            	
              Case
                No. 04-CV-1016 JMR/FLN

            
	
               

              v.

            	
               

              STIPULATION
                OF DISMISSAL UNDER FRCP 41(a)(1)(ii) &
                41(c)

            
	
               

              ST.
                JUDE MEDICAL, INC., ST. JUDE MEDICAL, S.C., INC., and PACESETTER,
                INC.,

               

              Defendants.

               

            	 

    

     

     

    The
      parties to this action having settled their dispute, it is stipulated and agreed
      by and among the parties to this action, represented by their attorneys, as
      follows:

     

    4.  The
      Second Amended Complaint is hereby dismissed with prejudice to the
      plaintiffs.

     

    5.  The
      counterclaims of the First Amended Answer to the Second Amended Complaint are
      hereby dismissed with prejudice to the defendants.

     

    6.  Any
      and
      all pending motions or requests for relief by any of the parties are hereby
      withdrawn.

     

    7.  Each
      party is to bear its own costs and attorneys’ fees.

     

    So
      agreed
      and stipulated.

    

    
 

    
      
        	 	 	 
	
                Kenneth
                  A. Liebman

              	 	
                Morgan
                  Chu

              
	
                Felicia
                  J. Boyd

              	 	
                Scott
                  D. Baskin

              
	
                David
                  J.F. Gross

              	 	
                Gary
                  N. Frischling

              
	
                Julie
                  Knox Chosy

              	 	
                IRELL
                  & MANELLA LLP

              
	
                FAEGRE
                  & BENSON LLP

              	 	
                1800
                  Avenue of the Stars, Suite 900

              
	
                90
                  South Seventh St., Suite 2200

              	 	
                Los
                  Angeles, CA 90067-4276

              
	
                Minneapolis,
                  MN 55402-3901

              	 	
                (310)
                  277-1010

              
	
                (612)
                  766-7000 

              	 	 

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	 	
                Denis
                  R. Salmon

              
	 	 	
                H.
                  Mark Lyon

              
	 	 	
                GIBSON,
                  DUNN & CRUTCHER LLP

              
	 	 	
                1881
                  Page Mill Road

              
	 	 	
                Palo
                  Alto, CA 94304

              
	 	 	
                (650)
                  849-5300

              
	 	 	 
	 	 	
                Michael
                  T. Nilan

              
	 	 	
                HALLELAND
                  LEWIS NILAN & JOHNSON, P.A.

              
	 	 	
                Pillsbury
                  Center South, Suite 600

              
	 	 	
                220
                  South Sixth Street

              
	 	 	
                Minneapolis,
                  MN 55402-4501

              
	 	 	
                (612)
                  338-1838

              
	 	 	 
	 	 	 
	So ordered:	 	 
	 	 	 
	 	 	 
	 	 	 
	U.S. District
                Judge	 	Date
	 	 	 
	 	 	 
	 	 	 
	 	 	 

      

    

     

     

    

    

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      E

    Form
      of Dismissal of California Case

    
 

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    UNITED
      STATES DISTRICT COURT

    CENTRAL
      DISTRICT OF CALIFORNIA

    WESTERN
      DIVISION

     

    
      	
              PACESETTER,
                INC., ST. JUDE MEDICAL, INC., and ST. JUDE MEDICAL S.C.,
                INC.,

               

              Plaintiffs,

              v.

               

              INTERMEDICS,
                INC., CARDIAC PACEMAKERS, INC., GUIDANT SALES CORPORATION, and DOES
                I
                through L, inclusive,

               

              Defendants.

            	
              CASE
                NO.: CV 06-3166 GHK (FFMx)

               

              STIPULATION
                OF DISMISSAL

            

    

    

    The
      parties to this action having settled their dispute, it is stipulated and agreed
      by and among the parties to this action, represented by their attorneys, as
      follows:

     

    8.  The
      Complaint is hereby dismissed with prejudice to the plaintiffs.

     

    9.  Each
      party is to bear its own costs and attorneys’ fees.

     

    So
      agreed
      and stipulated.

     

    
      
        	 	 	 
	
                Morgan
                  Chu

              	 	
                Kenneth
                  A. Liebman

              
	
                Scott
                  D. Baskin

              	 	
                Felicia
                  J. Boyd

              
	 	 	 
	
                Gary
                  N. Frischling

              	 	
                David
                  J.F. Gross

              
	
                IRELL
                  & MANELLA LLP

              	 	
                Julie
                  Knox Chosy

              
	
                1800
                  Avenue of the Stars, Suite 900

              	 	
                FAEGRE
                  & BENSON LLP

              
	
                Los
                  Angeles, CA 90067-4276

              	 	
                90
                  South Seventh St., Suite 2200

              
	
                (310)
                  277-1010

              	 	
                Minneapolis,
                  MN 55402-3901

              
	 	 	
                (612)
                  766-7000 

              
	 	 	 
	 	 	
                Mark
                  A. Flagel

              
	 	 	
                Bruce
                  D. Kuyper

              
	 	 	
                Shanaira
                  Udwadia

              
	 	 	
                LATHAM
                  & WATKINS LLP

              
	 	 	
                633
                  West Fifth Street

              
	 	 	
                Los
                  Angeles, CA 90071-2007

              
	 	 	
                (213)
                  485-1234

              
	 	 	 
	 	 	 
	So ordered:	 	 
	 	 	 
	 	 	 
	 	 	 
	U.S. District
                Judge	 	Date
	 	 	 

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      F

    Form
      of Dismissal of ANS/ABC Texas Case

    
 

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    UNITED
      STATES DISTRICT COURT

    EASTERN
      DISTRICT OF TEXAS

    SHERMAN
      DIVISION

     

    
      	
              ADVANCED
                NEUROMODULATION SYSTEMS, INC., 

               

              Plaintiff/Counter-Defendant,

            	
              Case
                No. 04-CV-00131 (Schell)

            
	
               

              v.

            	
               

              STIPULATION
                OF DISMISSAL UNDER FRCP 41(a)(1)(ii) &
                41(c)

            
	
               

              ADVANCED
                BIONICS CORPORATION,

               

              Defendant/Counter-Plaintiff.

               

            	 

    

    The
      parties to this action having settled their dispute, it is stipulated and agreed
      by and among the parties to this action, represented by their attorneys, as
      follows:

     

    10.  The
      First
      Amended Complaint is hereby dismissed with prejudice to the
      plaintiff/counter-defendant.

     

    11.  The
      counterclaims contained in the Second Amended Answer and Counterclaims are
      hereby dismissed with prejudice to the defendant/counter-plaintiff.

     

    12.  Any
      and
      all pending motions or requests for relief by any of the parties are hereby
      withdrawn.

     

    13.  Each
      party is to bear its own costs and attorneys’ fees.

     

    So
      agreed
      and stipulated.

    

      
        	 	 	 
	
                Bryant
                  C. Boren, Jr.

              	 	
                Frank
                  Finn

              
	
                Timothy
                  S. Durst

              	 	
                THOMPSON
                  & KNIGHT LLP

              
	
                Christopher
                  W. Kennerly

              	 	
                1700
                  Pacific Avenue

              
	
                BAKER
                  BOTTS L.L.P.

              	 	
                Suite
                  3300

              
	
                2001
                  Ross Avenue

              	 	
                Dallas,
                  TX 75201

              
	
                Dallas,
                  Texas 75201-2980

              	 	
                (214)
                  969-1700

              
	
                (214)
                  953-6500

              	 	 
	 	 	
                Matthew
                  Wolf

              
	
                Clyde
                  B. Siebman

              	 	
                Jennifer
                  Sklenar

              
	
                Lawrence
                  A. Phillips

              	 	
                Marc
                  Cohn

              
	
                SIEBMAN,
                  BURG, REYNOLDS & PHILLIPS

              	 	
                John
                  Nilsson

              
	
                Federal
                  Courthouse Square

              	 	
                HOWREY
                  SIMON ARNOLD & WHITE

              
	
                300
                  N. Travis

              	 	
                1299
                  Pennsylvania Avenue, N.W.

              
	
                Sherman,
                  TX 75090

              	 	
                Washington,
                  D.C. 20004

              
	
                (903)
                  870-0070

              	 	
                (202)
                  383-7067

              
	 	 	 
	 	 	 
	So ordered:	 	 
	 	 	 
	 	 	 
	U.S. District
                Judge	 	Date

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      G

    Form
      of Dismissal of ANS/ABC Arbitration

    

    

    
 

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    INTERNATIONAL
      INSTITUTE FOR

    CONFLICT
      PREVENTION AND RESOLUTION

    

    
      	
              ADVANCED
                NEUROMODULATION

              SYSTEMS,
                INC.,

               

              Claimant,

               

              v.

               

              ADVANCED
                BIONICS CORPORATION,

               

              Respondent,

               

              ADVANCED
                NEUROMODULATION

              SYSTEMS,
                INC.,

               

              Claimant,

               

              v.

               

              BONAVENTURA
                RENO LAURO,

               

              Respondent,

            	
              §

              §

              §

              §

              §

              §

              §

              §

              §

              §

              §

              §

              §

              §

              §

              §

              §

              §

              §

              §

              §

            	
               

               

               

               

               

               

               

               

               

              Richard
                D. Rochford, Arbitrator

              File
                Nos. G-06-07A and G-06-08A

               

               

               

               

               

               

               

               

               

            

    

    

    STIPULATION
      OF DISMISSAL

    

    The
      parties to this action having settled their dispute, it is stipulated and agreed
      by and among the parties to this action, represented by their attorneys, as
      follows:

    

    1. 
Advanced
      Neuromodulation Systems, Inc.’s (ANS) Notice of Arbitration against Advanced
      Bionics Corporation (“Bionics”) is hereby dismissed with prejudice to
      ANS.

    

    2. 
ANS’s
      Notice of Arbitration against Bonaventura Reno Lauro (“Lauro”) is hereby
      dismissed with prejudice to ANS.

    

    3. 
Any
      defenses or counterclaims arising out of the facts or circumstances underlying
      this action that could have been made by Bionics or Lauro are hereby dismissed
      with prejudice to Bionics and Lauro.

    

    4. 
Relief
      sought in all pending motions by any of the parties is denied.

    

    5. 
Each
      party is to bear its own costs and attorneys’ fees.

    

    IT
      IS SO
      ORDERED.

    

    SIGNED
      this _____________ day of July, 2006.

    

     

    

    
      	 	
               

              
                

              

              RICHARD
                D. ROCHFORD

              ARBITRATOR

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Agreed
      and stipulated:

    

    

    
      	
              _____________________________

              Bryant
                C. Boren, Jr.

              State
                Bar No. 02664100

              bryant.c.boren@bakerbotts.com

               

              Timothy
                S. Durst

              State
                Bar No. 00786924

              tim.durst@bakerbotts.com

               

              Christopher
                W. Kennerly

              State
                Bar No. 00795077

              chris.kennerly@bakerbotts.com

               

              BAKER
                BOTTS L.L.P.

              200
                1 Ross Avenue

              Dallas,
                Texas 75201-2980

              (2
                14) 953-6500 (Telephone)

              (2
                14) 953-6503 (Facsimile)

               

              ATTORNEYS
                FOR ADVANCED

              NEUROMODULATION
                SYSTEMS, INC.

            	
              _____________________________

              Matthew
                M. Wolf

              Marc
                A. Cohn

              HOWREY,
                SIMON, ARNOLD &
                WHITE,
                LLP

              1299
                Pennsylvania Avenue, N. W.

              Washington,
                DC 20004

              (202)
                783-0800 (Telephone)

              (202)
                3 83-66 10 (Facsimile)

               

              ATTORNEYS
                FOR ADVANCED BIONICS

              CORPORATION

               

               

              _____________________________

              Marc
                D. Katz

              Texas
                Bar No. 0079 1002

              Scott
                S. Rowekamp

              Texas
                Bar No. 24027823

               

              JENKENS
                &
                GILCHRIST

              A
                Professional Corporation

              1455
                Ross Avenue, Suite 3700

              Dallas,
                Texas 75202-2711

              (21
                4) 855-4500 (Telephone)

              (2
                14) 855-4300 (Facsimile)

               

              ATTORNEYS
                FOR BONAVENTURA RENO

              LAURO

               

            

    

    

     

    
 

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      H

    ADR
      Procedure Pursuant to Section 10.01

    

    1. 
Upon
      the
      expiration of the 60-day period for good faith negotiations pursuant to Section
      10.01(b), any party may initiate arbitration with the American Arbitration
      Association (“AAA”) by filing a Notice of Arbitration pursuant to the
      then-existing AAA rules for commercial arbitration. Should any provision of
      the
      applicable AAA rules conflict in any way with any provision of this Agreement,
      this Agreement shall govern. 

    

    2.
       
Within
      twenty (20) days after filing the Notice of Arbitration, the parties shall
      appoint a single, neutral arbitrator. The arbitrator shall have substantial
      experience in commercial licensing, preferably in the medical devices industry.
      If the parties are unable to agree on the arbitrator within the time specified
      above, AAA will select a so-qualified arbitrator within three (3) business
      days
      thereafter.

    

    3. 
The
      parties shall be entitled to discovery as ordered by the arbitrator; however,
      it
      is the intention of the parties that any such discovery be limited in scope
      in
      order to reduce the cost and burden to the parties. The arbitrator shall take
      this intention into account when ordering discovery so that any discovery so
      ordered is narrowly-tailored to lead to relevant information while minimizing
      the burden and cost of such discovery on the parties.

    

    4. 
The
      arbitrator will be empowered to award specific performance of the Agreement,
      as
      well as compensatory damages, costs, and attorneys' fees to the prevailing
      party, as the arbitrator deems appropriate. No punitive damages of any kind
      shall be awarded.

    

    5.
       
The
      arbitration shall be conducted in such a way that the arbitrator issues a
      decision and award no later than six (6) months after commencement of the
      arbitration. 

    
 

     

     

     

     

     

     

     

     

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      I

    Form
      Language for Consent and Agreement to Be Bound (Section
      3.01)

    

    BSC
      Affiliates:

    

    For
      Consent and Agreement to Be Bound to the CRM License Agreement:

    

    Reference
      is hereby made to the CRM License Agreement dated as of July 29, 2006, by and
      between Boston Scientific Corporation and St. Jude Medical, Inc. (the "License
      Agreement"). The undersigned Affiliate of Boston Scientific Corporation hereby
      consents to, and agrees to be bound by, all of the terms and conditions of
      the
      License Agreement to which Boston Scientific Corporation is bound.

    

    For
      Consent and Agreement to Be Bound to the SCS License Agreement:

    

    Reference
      is hereby made to the SCS License Agreement dated as of July 29, 2006, by and
      between Boston Scientific Corporation and St. Jude Medical, Inc. (the "License
      Agreement"). The undersigned Affiliate of Boston Scientific Corporation hereby
      consents to, and agrees to be bound by, all of the terms and conditions of
      the
      License Agreement to which Boston Scientific Corporation is bound.

    

    

    St.
      Jude Affiliates:

    

    For
      Consent and Agreement to Be Bound to the CRM License Agreement:

    

    Reference
      is hereby made to the CRM License Agreement dated as of July 29, 2006, by and
      between Boston Scientific Corporation and St. Jude Medical, Inc. (the "License
      Agreement"). The undersigned Affiliate of St. Jude Medical, Inc. hereby consents
      to, and agrees to be bound by, all of the terms and conditions of the License
      Agreement to which St. Jude Medical, Inc. is bound.

    

    For
      Consent and Agreement to Be Bound to the SCS License Agreement:

    

    Reference
      is hereby made to the SCS License Agreement dated as of July 29, 2006, by and
      between Boston Scientific Corporation and St. Jude Medical, Inc. (the "License
      Agreement"). The undersigned Affiliate of St. Jude Medical, Inc. hereby consents
      to, and agrees to be bound by, all of the terms and conditions of the License
      Agreement to which St. Jude Medical, Inc. is bound.www.EXFILE.com  888.775-4789  BOSTON SCIENTIFIC CORP. FORM 10-Q

    EXHIBIT
      10.7

    CRM
      LICENSE AGREEMENT

     

    This
      CRM
      License Agreement (the "Agreement"), which is agreed to be effective as
      hereinafter provided, is by and between St. Jude Medical, Inc., a Minnesota
      corporation having its principal place of business at One Lillehei Plaza, St.
      Paul, Minnesota, 55117 ("St. Jude"), and Boston Scientific Corporation, a
      Delaware corporation having its principal place of business at One Boston
      Scientific Place, Natick Massachusetts, 01760-1537 ("BSC").

     

    RECITALS

     

    A.           
      BSC
      and/or certain of its Affiliates, on the one hand, and St. Jude and/or certain
      of its Affiliates, on the other hand, are adverse parties in the following
      currently pending litigation matters, which are being terminated pursuant to
      a
      Settlement Agreement by and between BSC and certain of its Affiliates, on the
      one hand, and St. Jude and certain of its Affiliates, on the other hand, dated
      July 29, 2006 (the "Settlement Agreement"):

     

    1)
      Pacesetter,
      Inc. v. Cardiac Pacemakers, Inc., et al.,
      Case
      No. 02-1337 DWF/SRN (D. Minn.) (the "Minnesota Pacesetter Case");

     

    2)
      Cardiac
      Pacemakers, Inc., et al., v. St. Jude Medical, Inc., et al.,
      Civil
      Action No. 04-1016 JMR/FLN (D. Minn.) (the "Minnesota CPI
      Case");and

     

    5)
      Pacesetter,
      Inc. et al. v. Intermedics, Inc. et
      al.,
      Case
      No. CV 06-3166 GHK(FFMx) (C.D. Cal.) (the "California case").

     

    B.            
      St.
      Jude
      and BSC and/or certain of their respective Affiliates are engaged in,
inter
      alia,
      the
      design, development, manufacture, and sale of CRM Products.

     

    C.            
      St.
      Jude
      and BSC and/or certain of their respective Affiliates own or hold certain
      Licensed Patents and rights under Sublicensable Patents relating to CRM
      Products.

     

    D.            Pursuant
      to the Settlement Agreement, St. Jude and BSC have agreed to terminate the
      Minnesota Pacesetter Case, the Minnesota CPI Case, and the California case
      and
      have agreed to enter into a cross licensing of certain rights under the Licensed
      Patents and Sublicensable Patents.

     

    Now
      therefore, in consideration of the covenants and agreements set forth herein
      and
      for valuable consideration receipt of which is hereby acknowledged, St. Jude
      and
      BSC mutually agree as follows:

     

     

    ** The
      appearance of a double asterisk denotes confidential information that has been
      omitted from the exhibit and filed separately, accompanied by a confidential
      treatment request, with the Securities and Exchange Commission pursuant to
      Rule
      24b-2 of the Securities Exchange Act of 1934, as amended (the "Exchange
      Act").

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      I

     

    Definitions
      of Certain Terms

     

    For
      the
      purposes of this Agreement, the following capitalized terms shall have the
      meaning specified below. In addition, whenever used in the Agreement, "include,"
      "includes," and "including" shall be deemed to be followed by "without
      limitation," whether or not it is followed by such words.

     

    Section
      1.01.
      Affiliate.
      "Affiliate" means any person or entity that controls or is controlled by or
      is
      under common control with St. Jude or BSC on the Effective Date or at any time
      thereafter. For purposes of this Section 1.01, ownership, directly or
      indirectly, of more than fifty percent (50%) of the capital stock or other
      comparable ownership interest of the corporation or entity carrying the right
      to
      vote for or appoint directors or their equivalent (if not a corporation) shall
      constitute control thereof. "Affiliate" of a third party means a person or
      entity that controls, is controlled by, or under common control with, such
      third
      party. Without in any way limiting the foregoing, "Affiliates" of St. Jude
      include Pacesetter, Inc., St. Jude Medical AB, and St. Jude Medical S.C., Inc.
      and "Affiliates" of BSC include Guidant Corporation, Cardiac Pacemakers, Inc.,
      Guidant Sales Corporation, and Intermedics, Inc. 

     

    Section
      1.02.
      CRM
      Products.
      "CRM
      Products" means devices for monitoring or electrically stimulating or shocking
      the heart which are suitable for chronic implantation, in whole or in part,
      by
      or with human patients. The term "CRM Products" includes, without limitation:
      cardiac pacemakers, antitachycardia pacemakers, cardiac resynchronization
      therapy systems, cardioverters, and defibrillators, including combinations
      thereof; loop recording systems, implantable cardiac monitoring systems,
      implantable hemodynamic monitoring systems, pulse generators and other waveform
      generators for such devices; cardiac lead implant catheters and associated
      tools; leads, electrodes, sensors, capacitors, batteries, power sources, and
      all
      other components for such devices; mechanisms for coupling such generators
      in a
      stimulating, shocking, sensing, or monitoring relationship to the heart; and
      data dispensing, processing, and gathering systems for such devices, including
      programmers, pacing system analyzers, defibrillation system analyzers, testers,
      encoders, decoders, transtelephonic and other remote monitoring systems and
      services for use with implantable devices, transmitters, receivers, and computer
      software-controlled systems, and including the software. The term "CRM Products"
      excludes, by way of example and not limitation, nerve stimulators (unless used
      for cardiac therapy), bone growth stimulators, drug release pumps, cardiac
      pumps, artificial hearts, prosthetic heart valves, catheter ablation devices,
      imaging systems, catheter location systems, apparatus for revascularization
      or
      correction of other physical defects in heart tissue, arrhythmia mapping devices
      (except as part of an implantable cardiac therapy or monitoring device),
      angioplasty devices and EKG monitors (other than cardiac stimulation device
      programmers or other telemetry devices for use with implantable pulse generators
      or cardiac monitors) which are standalone, non-ambulatory and not intended
      for
      transtelephonic or other remote monitoring.

     

    Section
      1.03.
      Licensed
      Patents.

    
       

    

    (a)            "Licensed
      Patents" means any and all patents relating to CRM Products (including the
      manufacture or use thereof), which are (i) owned (whether by development,
      acquisition, or 

     

    
      

    

    
      
        **Confidential
          treatment requested pursuant to Rule 24b-2 of the Exchange
          Act.

      

      
        
        

        
          

        

      

      
        
        

      

    

    otherwise)
      by St. Jude or its Affiliates as of the Effective Date or BSC or its Affiliates
      as of the Effective Date and have a priority date on or before the Effective
      Date or (ii) licensed to St. Jude or its Affiliates or BSC or its Affiliates
      as
      of the Effective Date under licenses or other agreements, and which permit
      St.
      Jude or its Affiliates or BSC or its Affiliates to grant licenses or
      sublicenses, in each case without any right in a non-Affiliated third party
      to
      receive royalties or any other continuing payments to maintain the license
      or
      other agreement in effect, which are within the scope of the following class:
      all patents issued in any country from patent applications filed as of the
      Effective Date including all patents maturing from continuation,
      continuation-in-part, divisional, and reissue applications, or reexaminations
      of
      such patents and patent applications, and further including all patents which
      are counterparts of such patents or patent applications which are described
      in
      this Section 1.03, regardless of whether such patent matures from a convention
      or non-convention patent application, and any other substitution, renewal,
      extension, addition, utility model, or other patent, non-U.S. or U.S., which
      claims priority based on such a patent application.

     

    (b)           
      Notwithstanding
      the foregoing, the term "Licensed Patents" specifically excludes the ** Patents
      and the ** Patents.

     

    (c)            Notwithstanding
      the foregoing, the term "Licensed Patents" specifically excludes Sublicensable
      Patents.

     

    (d)          
       Notwithstanding
      the foregoing, the term "Licensed Patents" specifically excludes the patents
      listed on Exhibit A which are or will be subject to licensing restrictions
      being
      negotiated with a third party.

     

    Section
      1.04.
      Sublicensable
      Patents.

     

    (a)           
      "Sublicensable
      Patents" shall mean patents and patent applications, both U.S. and non-U.S.,
      which relate to CRM Products and which are the subject of licenses or
      assignments or other agreements with non-Affiliated third parties in force
      as of
      the Effective Date and which licenses or assignments or other agreements (a)
      convey rights to St. Jude or its Affiliates or BSC or its Affiliates as licensee
      or assignee or grantee, including the right to grant sublicenses or licenses,
      and further (b) (i) require the payment of royalties or any other continuing
      payments either for use of the patents or patent applications or to maintain
      the
      license or assignment or other agreement in effect or (ii) have other licensing
      restrictions such as field of use restrictions.

     

    (b)           
      Without
      limiting the foregoing, the term "Sublicensable Patents" specifically includes,
      but is not limited to, all present patents and patent applications listed on
      Exhibit B of this Agreement. The parties believe that Exhibit B is a complete
      listing of their respective U.S. patents and patent applications within the
      foregoing definition of Sublicensable Patents which are in existence as of
      the
      Effective Date, and any errors, overinclusions or omissions from Exhibit B
      will
      be deemed to be inadvertent and not a material breach. Present foreign patents
      and applications, including foreign counterparts of U.S. patents and patent
      applications listed on Exhibit B, have intentionally not been included in
      Exhibit B but are deemed to be Sublicensable Patents if they are covered by
      the
      foregoing definition in this Section 1.04.

     

    (c)            
      Notwithstanding
      the foregoing, the term "Sublicensable Patents" excludes the Mirowski-Owned
      Patents.

    
       

      
        

      

      
        
          **Confidential
            treatment requested pursuant to Rule 24b-2 of the Exchange
            Act.

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    Section
      1.05.
      Mirowski-Owned
      Patents.
      "Mirowski-Owned Patents" shall mean all patent rights that are the subject
      of
      the Amended and Restated Exclusive License Agreement dated January 28, 2004,
      by
      and between Guidant Corporation and Mirowski Family Ventures, LLC ("MFV"),
      a
      limited liability company organized under the laws of the State of Maryland
      (the
      "MFV Exclusive License"). 

     

    Section
      1.06.
      **
      Patents.
      "**
      Patents" shall mean those patents and patent applications, and all patents
      and
      patent applications claiming priority therefrom, ** as set forth in Exhibit
      C.

     

    Section
      1.07.
      **
      Patents.
      "**
      Patents" shall mean those patents and patent applications, and all patents
      and
      patent applications claiming priority therefrom, ** as set forth in Exhibit
      D.
      The ** Patents shall include the sublicensable patents and patent applications
      of ** listed in Exhibit D.

     

    Section
      1.08.
      Effective
      Date.
      "Effective Date" shall mean July 29, 2006.

     

     ARTICLE
      II

     

    Cross
      License; Covenant Not to Sue

     

    Section
      2.01.
      License.
      Subject
      to the terms, conditions, and limitations set forth herein:

     

    (a) 
St.
      Jude
      grants (and will cause its Affiliates to grant) to BSC and its Affiliates a
      non-exclusive, irrevocable, perpetual, fully paid-up worldwide license or
      sublicense, as the case may be, without the right to sublicense, under all
      Licensed Patents of St. Jude (and its Affiliates) to make, have made, use,
      sell,
      have sold, offer to sell, distribute, have distributed, and otherwise dispose
      of
      CRM Products, including supplying or causing to be supplied components thereof
      for use therein, and further including importing CRM Products, including
      components thereof for use therein, into any jurisdiction where Licensed Patents
      of St. Jude (or its Affiliates) are effective.

     

    (b) 
BSC
      grants (and will cause its Affiliates to grant) to St. Jude and its Affiliates,
      a non-exclusive, irrevocable, perpetual, fully paid-up, worldwide license or
      sublicense, as the case may be, without the right to sublicense, under all
      Licensed Patents of BSC (and its Affiliates) to make, have made, use, sell,
      have
      sold, offer to sell, distribute, have distributed, and otherwise dispose of
      CRM
      Products, including supplying or causing to be supplied components thereof
      for
      use therein, and further including importing CRM Products, including components
      thereof for use therein, into any jurisdiction where Licensed Patents of BSC
      (or
      its Affiliates) are effective. 

     

    (c) 
If
      any
      party has CRM Products made for it under the above license grant, such CRM
      Products must bear its or one of its Affiliates’ trade names or trademarks;
      however, such CRM Products may bear third-party trade names or trademarks for
      materials or components used in such CRM Products.

     

    (d) 
The
      licenses granted in this Section 2.01 shall be irrevocable except for the
      specific right to terminate described in Section 9.02, below.

     

    Section
      2.02.
      Option
      to Obtain Sublicense on Sublicensable Patents.
      It is
      the intent of each party to afford the other party and its Affiliates the
      opportunity to obtain sublicenses under the

    
       

      
        
          

        

        
          
            **Confidential
              treatment requested pursuant to Rule 24b-2 of the Exchange
              Act.

          

          
            
            

            
              

            

          

          
            
            

          

        

      

    

    Sublicensable
      Patents. Accordingly:

     

    (a) 
St.
      Jude
      grants (and will cause its Affiliates to grant) to BSC and its Affiliates the
      right and option until sixty (60) days following the termination of this
      Agreement to obtain sublicenses under one or more of the Sublicensable Patents.
      Upon written request by BSC to St. Jude, St. Jude will inform BSC of the
      provisions of the agreement or license with a third party conveying rights
      in a
      particular Sublicensable Patent to St. Jude or its Affiliates, and shall make
      available to BSC and its Affiliates a non-exclusive, non-transferable license
      affording them the most favorable terms and conditions permissible to
      sublicensees under such agreement or license with such third party (but in
      no
      event under terms more favorable than those of St. Jude or its
      Affiliates).

     

    (b) 
BSC
      grants (and will cause its Affiliates to grant) to St. Jude and its Affiliates
      the right and option until sixty (60) days following the termination of this
      Agreement to obtain sublicenses under one or more of the Sublicensable Patents.
      Upon written request by St. Jude to BSC, BSC will inform St. Jude of the
      provisions of the agreement or license with a third party conveying rights
      in a
      particular Sublicensable Patent to BSC or its Affiliates, and shall make
      available to St. Jude and its Affiliates a non-exclusive, non-transferable
      license affording them the most favorable terms and conditions permissible
      to
      sublicensees under such agreement or license with such third party (but in
      no
      event under terms more favorable than those of BSC or its
      Affiliates).

     

    (c) 
It
      is the
      intention of the parties under this Section 2.02 that a party acquiring a
      sublicense under Sublicensable Patents be required to make only current payments
      based on current usage and that no previously paid "front end" payments be
      recovered by the sublicensor under such sublicensing arrangement.
      Notwithstanding any contrary foregoing provisions, if the party elects to obtain
      a sublicense thereunder and the license or assignment granted to the sublicensor
      requires ongoing minimum payments to maintain the license or assignment,
      payments by the sublicensor for the right to grant a sublicense or option to
      sublicense, or if the sublicensor is required to pay to the original licensor
      or
      assignor amounts based on the sublicensor's or its sublicensee's current usage,
      then the sublicensor may require under the sublicensing arrangement that its
      sublicensee pay the amounts required for the grant of the sublicense or option
      to sublicense as well as a pro rata portion of such minimum payments under
      the
      original license or such usage payments due from the sublicensor, with each
      party's respective pro rata amount based upon the volume of their respective
      sales of products covered by the original license agreement. The obligation
      to
      pay a pro rata share of minimum royalty does not apply to a minimum royalty
      required to maintain an exclusive license under a Sublicensable Patent unless
      otherwise agreed.

     

    (d) 
This
      Section 2.02 shall not apply to the ** Patents.

     

    Section
      2.03.
      Royalty
      Payments to Third Parties.
      Any
      royalty payments required to be made to the owner of a patent sublicensed in
      the
      future in accordance with this Agreement shall be made, if permissible under
      the
      applicable license agreement and if acceptable to the sublicensor, directly
      by
      the sublicensee to such owner in accordance with the terms of the applicable
      license agreement. Unless otherwise required by the applicable license
      agreement, questions regarding the applicability, validity, or enforceability
      of
      any patent sublicensed in accordance with this

    
       

      
        

      

      
        
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            treatment requested pursuant to Rule 24b-2 of the Exchange
            Act.

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    Agreement
      shall be resolved by the owner of the sublicensed patent and the sublicensee.
      The sublicensor of such patent shall have the right in its discretion to
      participate in any such discussions or negotiations between the owner of the
      sublicensed patent and the sublicensee. In any event, the sublicensee shall
      keep
      the sublicensor fully informed of all discussions and negotiations between
      such
      sublicensee and the owner of the sublicensed patent. Any dispute arising between
      the sublicensor and sublicensee of any such patent shall be resolved by
      alternative dispute resolution as provided in Article 8 of this
      Agreement.

     

    Section
      2.04.
      Rights
      under Section 2.02 Subject to Continued Payment of Royalties.
      In the
      event that either party fails in any material respect to pay to the other party
      (or to the licensor of a Sublicensable Patent, as the case may be) royalties
      required under this Agreement, and such failure is not cured within sixty (60)
      days of written notice to the defaulting party of such failure, then all license
      rights of the defaulting party under Section 2.02 of this Agreement, with
      respect only to the particular patent or patents in dispute, shall terminate.
      Such a termination shall in no way affect or impair the rights of the other
      party under such Section 2.02.

     

    Section
      2.05.
      Regarding
      OEM Activities.
      The
      licenses granted or to be granted under this Article II shall not be used in
      such a way as to manufacture CRM Products on an original equipment manufacturer
      ("OEM") basis for any person or entity other than St. Jude and its Affiliates
      or
      BSC and its Affiliates. The licenses granted or to be granted under this Article
      II shall apply to and for the benefit of CRM Products manufactured by a party
      to
      this Agreement for a third party who is licensed under the appropriate patents
      of the other party to this Agreement where, and to the extent that, the third
      party's license permits such third party to "have made" such CRM Products for
      such third party. Nothing in this Agreement shall preclude the use of the
      licenses granted or to be granted under this Article II by a party or its
      Affiliate for the purpose of having CRM Products manufactured by a third party
      on an OEM basis for such party or its Affiliate; provided, however, that such
      CRM Products must bear the trademark or trade name of such party or its
      Affiliate. Notwithstanding the foregoing, such CRM Products may bear third-party
      trade names or trademarks for materials or components used in such CRM
      Products.

     

    Section
      2.06.
      Option
      To Sublicense Mirowski-Owned Patents.
      BSC
      grants (and will cause its Affiliates to grant) to St. Jude and its Affiliates
      an irrevocable, perpetual right and option to obtain a sublicense under the
      Mirowski-Owned Patents. Upon written notice by St. Jude to BSC of St. Jude's
      election to exercise the option granted in this Section 2.06, St. Jude and
      its
      Affiliates shall have a non-exclusive, non-transferable (except as permitted
      by
      Section 9.02, below) worldwide license under the Mirowski-Owned Patents
      effective as of the date such written notice is deemed to have been given under
      Article 6 of this Agreement. Any sublicense granted as a result of this Section
      2.06 shall afford St. Jude the most favorable terms and conditions permissible
      to sublicensees under the MFV Exclusive License (but shall in no event require
      BSC or its Affiliates to make any payments on behalf of St. Jude or its
      Affiliates).

     

    Section
      2.07.
        **
      and
      ** Patents.
      It is
      the intent of each party to afford the other party and its Affiliates the rights
      provided below regarding the ** Patents and the ** Patents.
      Accordingly:

     

    (a) 
BSC
      grants (and will cause its Affiliates to grant) to St. Jude and its Affiliates
      the right and option for a period of thirty (30) months from the Effective
      Date
      to obtain a non-

    
       

      
        

      

      
        
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            Act.

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    exclusive,
      worldwide, non-transferable, royalty-bearing license under the ** Patents.
      Should St. Jude opt to acquire such license, St. Jude shall pay to BSC on no
      less than a quarterly basis a royalty of ** percent (**%) of the net revenue
      received for the sale of each St. Jude product that utilizes the ** Patents.
      St.
      Jude's royalty obligation under this Section 2.07(a) shall commence as of the
      date of the first sale of a St. Jude product that utilizes the ** Patents and
      shall continue for a period of five (5) years thereafter, at which point St.
      Jude's license under the ** Patents will convert to a non-exclusive,
      non-transferable, irrevocable, perpetual, fully-paid up, worldwide
      license.

     

    (b) 
If,
      and
      only if, St. Jude exercises its option for a license under the ** Patents
      pursuant to Section 2.07 (a), above, St. Jude shall grant (and will cause its
      Affiliates to grant) to BSC and its Affiliates the right and option until the
      expiration of thirty (30) months from the Effective Date or ninety (90) days
      from the date St. Jude exercises its option under Section 2.07, whichever is
      later in time, to obtain a non-exclusive, worldwide, non-transferable,
      royalty-bearing license under the ** Patents. Such sublicense to the ** Patents
      shall, if requested by BSC, include a sublicense to the patents and patent
      applications of ** listed in Exhibit D, and shall be subject to the terms of
      the
      license agreement between ** and **. Should BSC opt to acquire such license,
      BSC
      shall pay to St. Jude on no less than a quarterly basis a royalty of ** percent
      (**%) of the net revenue received for the sale of each BSC product that utilizes
      the ** Patents. BSC's royalty obligation under this Section 2.07(b) shall
      commence as of the date of the first sale of a BSC product that utilizes the
      **
      Patents and shall continue for a period of five (5) years thereafter, at which
      point BSC's license under the ** Patents will convert to a non-exclusive,
      non-transferable, irrevocable, perpetual, fully-paid up, worldwide
      license.

     

    (c) 
Should
      St. Jude not exercise its option for a license under the ** Patents pursuant
      to
      Section 2.07(a), above, St. Jude agrees that it will enter into good faith
      negotiations with BSC for the grant of a license to BSC and its Affiliates
      under
      the ** patents should BSC desire such a license.

     

    Section
      2.08.
      Certain
      Conditions, Limitations and Understandings.
      The
      licenses and sublicenses granted under this Agreement are expressly made subject
      to the following conditions, limitations and understandings:

     

    (a) 
The
      licenses are personal to the parties hereto, and are nonassignable and
      nontransferable, except as set forth in Section 9.02 below.

     

    (b) 
The
      parties and their Affiliates shall have the right, in their sole and absolute
      discretion, to control the maintenance, abandonment, extension, and licensing
      of
      their own patents including the Licensed Patents and Sublicensable Patents;
      provided however, that no such license or other transfer of interest shall
      in
      any manner abridge the rights of the other party granted under this
      Agreement.

     

    (c) 
The
      owner
      or exclusive licensee of a Licensed Patent or Sublicensable Patent shall have
      the right to enforce, or not to enforce, its Licensed Patents or Sublicensable
      Patents in its sole and absolute discretion against all persons and
      organizations other than a party or Affiliate of a party hereto.

     

    (d) 
The
      licenses granted herein shall not extend to any technical know-how or design
      

    
       

      
        

      

      
        
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            treatment requested pursuant to Rule 24b-2 of the Exchange
            Act.

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    information,
      manufacturing, marketing, and/or processing information or know-how, designs,
      drawings, mask works, specifications, software source code, algorithms, clinical
      data, or other documents directly or indirectly pertinent to the use of the
      Licensed Patents or Sublicensable Patents, or to the use of any trademarks
      or
      trade names, service marks, or software copyrights or other copyrights
      (including copyright registrations) of any party, and the parties acknowledge
      that there is no obligation upon any party or its Affiliates to provide such
      information, know-how, designs, drawings, mask works, specifications, software
      source code, algorithms, clinical data, or other documents.

     

    (e) 
Except
      as
      otherwise expressly provided in this Agreement, all licenses are granted for
      the
      life of the covered patents.

     

    (f) 
Licenses
      and sublicenses under Sublicensable Patents will only be granted to the extent
      the grantor has the right to grant such licenses and sublicenses.

     

    (g) 
All
      licenses and sublicenses required to be granted by Affiliates under this
      Agreement shall be subject to the terms and conditions set forth in this
      Agreement, except as may be otherwise provided in Section 2.02 relating to
      Option to Obtain Sublicense on Sublicensable Patents.

     

    (h) 
Any
      assignment or other transfer by a party or its Affiliate of that entity's
      interest in (i) a Licensed Patent or (ii) a Sublicensable Patent in which the
      other party and its Affiliates has exercised the option to obtain a sublicense
      as provided in Section 2.02 above shall be made subject to the rights of the
      other party and its Affiliates under this Agreement.

     

    (i)
       
Any
      license extended to an Affiliate shall continue only so long as "Affiliate"
      status is maintained, or as permitted pursuant to the other party’s
      consent.

     

    Section
      2.09. Covenant
      Not to Sue.
      

     

    (a) 
St.
      Jude
      and its Affiliates hereby covenant not to sue BSC and its Affiliates, their
      respective successors, assigns, affiliated entities, directors, officers,
      shareholders, and legal representatives, distributors, resellers, customers,
      and
      end users for the alleged infringement of patent or other intellectual property
      rights that are acquired or licensed by St. Jude and/or its Affiliates after
      the
      Effective Date with respect to any CRM Products that are commercially marketed
      or sold anywhere in the world as of the Effective Date.

     

    (b) 
BSC
      and
      its Affiliates hereby covenant not to sue St. Jude and its Affiliates, their
      respective successors, assigns, affiliated entities, directors, officers,
      shareholders, and legal representatives, distributors, resellers, customers,
      and
      end users for the alleged infringement of patent or other intellectual property
      rights that are acquired or licensed by BSC and/or its Affiliates after the
      Effective Date with respect to any CRM Products that are commercially marketed
      or sold anywhere in the world as of the Effective Date.

     

    (c) 
This
      Section 2.09 shall not apply to the Mirowski-Owned Patents, the ** Patents,
      the
      ** Patents, or the patents listed on Exhibit A.

    
       

      
        

      

      
        
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            treatment requested pursuant to Rule 24b-2 of the Exchange
            Act.

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    ARTICLE
      III

     

    Representations,
      Warranties and Limitations

     

    Section
      3.01.
      Certain
      Representations and Warranties.

     

    (a) 
Each
      party represents and warrants to the other party as follows and acknowledges
      that each of the following representations and warranties has been relied upon
      by the other party and is material to the other party's decision to enter into
      the Agreement: each party hereto has the requisite power and authority,
      corporate and otherwise, to execute and perform the Agreement, to grant the
      licenses, sublicenses, and option to obtain licenses and sublicenses provided
      for herein, and, except as provided in this Section 3.01, to cause such party’s
      Affiliates to execute and perform the Agreement and to grant the licenses,
      sublicenses, and option to obtain licenses and sublicenses provided for
      herein.

     

    (b) 
To
      the
      extent that a party shall lack the requisite authority to cause an Affiliate
      of
      such party to execute or perform this Agreement or to grant the licenses or
      option to obtain sublicenses as provided in this Agreement, then such party
      shall defend, indemnify, and hold harmless the other party and its Affiliates,
      and all officers, directors, employees, attorneys, agents, successors, and
      assigns of the other party and its Affiliates, against any and all legal
      expenses, costs, and judgments arising from claims, controversies, demands,
      rights, disputes, grievances, or causes of action that would have been avoided
      had such party caused such Affiliate to execute or perform the Agreement or
      to
      grant the licenses or option to obtain sublicenses as provided in this
      Agreement.

     

    (c) 
                   BSC
      (and its Affiliates) represents and warrants that Eli Lilly and Company does
      not
      hold any rights in the Licensed Patents, the Sublicensable Patents or the
      Mirowski-Owned Patents, and has no claims or causes of action against St. Jude
      and its Affiliates arising therefrom. BSC shall defend, indemnify, and hold
      harmless St. Jude and its Affiliates, and all officers, directors, employees,
      attorneys, agents, successors, and assigns of St. Jude and its Affiliates,
      against any and all legal expenses, costs, and judgments arising from any
      claims, controversies, demands, rights, disputes, grievances, or causes of
      action that Eli Lilly and Company asserts relating to the Licensed Patents,
      the
      Sublicensable Patents or the Mirowski-Owned Patents.

     

    (d) 
Neither
      party hereto is a party to any license, agreement or other instrument which
      would prohibit the granting of the licenses or option to obtain sublicenses
      granted herein.

     

    Section
      3.02.
      Disclaimers.
      Nothing
      contained in this Agreement shall be construed as:

     

    (a) 
A
      warranty or representation by any party hereto as to the validity, scope, or
      enforceability of any Licensed Patents or Sublicensable Patents; or

     

    (b) 
A
      warranty or representation by any party hereto that anything made, used, sold,
      or otherwise disposed of under any license granted in this Agreement is or
      will
      be free from infringement of patents of third parties; or

     

    (c) 
An
      obligation to bring or prosecute actions or suits against third parties for
      patent 

    
       

      
        

      

      
        
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            Act.

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    infringement,
      or as an agreement by the parties to assist each other in any manner in the
      defense of any claim of infringement brought by a third party; or

     

    (d) 
An
      obligation to file or prosecute any patent application, to secure the grant
      of
      any patent or any reissue or extension thereof, or to pay any maintenance fee
      or
      annuity or tax or take any other steps to maintain any patent; or

     

    (e) 
A
      representation, warranty, or extension of warranties of any kind, expressed
      or
      implied, or an assumption of responsibility by any party with respect to the
      use, sale, or other disposition by the other party or its agents,
      representatives, distributors, or users of products incorporating or made by
      use
      of inventions licensed under this Agreement.

     

    Section
      3.03.
      Limitations.
      Each
      party shall be responsible for its design, manufacture, instructions for use,
      quality control, and all safety-related activities relating to its own products,
      whether or not manufactured under license from the other party's Licensed
      Patents or Sublicensable Patents, and shall not be responsible for the products
      of the other party, the other party's Affiliates, or any other party or
      person.

     

    ARTICLE
      IV

     

    Termination
      of Agreement

     

    Section
      4.01.
      Termination
      of Agreement.
      This
      Agreement shall be effective as of the Effective Date and shall continue in
      force and effect until the expiration of the last to expire of the patents
      licensed and sublicensed pursuant to the provisions of this
      Agreement.

     

    ARTICLE
      V

     

    Confidentiality/Publicity
      Concerning Agreement

     

    Section
      5.01.
      Confidentiality/Publicity
      Concerning Agreement.
      It is
      intended that, to the extent possible, the terms of this Agreement remain
      confidential. No party or any Affiliate of a party shall originate any
      publicity, news release, or other such general public announcement or make
      any
      other disclosure to any third party regarding the terms of this Agreement
      without the express written consent of the other party (without limitation,
      the
      foregoing provision is not intended to limit communications deemed reasonably
      necessary or appropriate by a party or its Affiliate to its employees,
      shareholders, directors, officers, accountants, auditors and legal counsel).
      Notwithstanding the foregoing provision, the parties and their respective
      Affiliates shall not be prohibited from making any disclosure or release that
      is
      required by law, court order, or applicable regulation, or is considered
      necessary by counsel to fulfill an obligation under securities laws or the
      rules
      of the New York Stock Exchange or other applicable stock exchange or to protect
      any intellectual property right in any territory so long as the disclosing
      party
      provides notice to the other party at least five (5) business days prior to
      such
      disclosure. However, the parties agree that, with regard to any required
      disclosure to the Securities and Exchange Commission regarding this Agreement
      or
      the fact that it has been executed that is made on or around the Effective
      Date,
      prior notice to the other party shall not be required.

     

    
      

    

    
      
        
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            treatment requested pursuant to Rule 24b-2 of the Exchange
            Act.

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    ARTICLE
      VI

     

    Notice

     

    Section
      6.01.
      Notice.
      Any
      notice or other communication to be made pursuant to this Agreement shall be
      sent to the other party at its address listed below or at such other address
      such party may hereinafter designate to the other party in writing:

     

    If
      to
      BSC:

     

    President
      and CEO

    Boston
      Scientific Corporation

    One
      Boston Scientific Place

    Natick,
      MA 01760-1537

    

    with
      a
      copy to:

     

    General
      Counsel

    Boston
      Scientific Corporation

    One
      Boston Scientific Place

    Natick,
      MA 01760-1537

    Facsimile
      No.: (508) 650-8956

     

    

     

    If
      to St.
      Jude:

     

    President
      and CEO

    St.
      Jude
      Medical, Inc.

    One
      Lillehei Plaza

    St.
      Paul,
      MN 55117

    Facsimile
      No.: (651) 481-7690 

     

    with
      a
      copy to: 

     

    General
      Counsel

    St.
      Jude
      Medical, Inc.

    One
      Lillehei Plaza

    St.
      Paul,
      MN 55117

    Facsimile
      No.: (651) 481-7690 

     

    Notice
      shall be deemed to have been given (i) at the expiration of two (2) business
      days from the date of delivery by a facsimile transmission, provided a copy
      is
      deposited postage prepaid for delivery with the postal service or given for
      delivery to an express courier service on the same date as the sending of the
      facsimile, or (ii) ten (10) business days from the date the communication is
      deposited postage prepaid with the postal service or given to an express courier
      service, unless actual receipt of the notice at an earlier date is established.
      Without limitation of the foregoing, a 

     

     

    
      

    

    
      
        
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            treatment requested pursuant to Rule 24b-2 of the Exchange
            Act.

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    written
      receipt signed by the addressee or its duly appointed representative situated
      at
      the addresses set forth hereinabove shall constitute sufficient evidence of
      service. Either party may change its address and facsimile information by
      written notice given in accordance with the provisions of this
      Section.

     

    ARTICLE
      VII

     

    Loss
      of Patents

     

    Section
      7.01.
      Loss
      of Patents.
      The
      loss of any patent(s) or patent application(s) embraced by the term "Licensed
      Patents" or "Sublicensable Patents" by any party hereto, through abandonment,
      failure to renew, declaration of invalidity, or otherwise, shall not be cause
      to
      terminate this Agreement or the licenses granted hereunder with respect to
      all
      other Licensed Patents or Sublicensable Patents and such loss, or any
      declaration of noninfringement, invalidity, or unenforceability, shall not
      be
      deemed a failure of consideration.

     

    ARTICLE
      VIII

     

    Alternative
      Dispute Resolution

     

    Section
      8.01.
      Alternative
      Dispute Resolution.

     

    (a) Any
      dispute concerning whether any party’s actions are licensed under Article II of
      this Agreement, that is not resolved by negotiation as provided in subsection
      (c) of this Section 8.01 shall be resolved by binding Alternative Dispute
      Resolution ("ADR") in the manner described in Exhibit E.

     

    (b) Any
      dispute that arises out of or relates to this Agreement, including an alleged
      breach of this Agreement but excluding any dispute within the scope of
      subsection (a) of this Section 8.01, between (i) St. Jude or a St. Jude
      Affiliate and (ii) BSC or a BSC Affiliate that is not resolved by negotiation
      as
      provided in subsection (c) of this Section 8.01 shall be resolved by binding
      Alternative Dispute Resolution ("ADR") in the manner described in Exhibit
      F.

     

    (c) The
      parties recognize that a bona fide
      dispute
      may arise from time to time as to certain matters that relate to this Agreement.
      In all such instances, any party may, by written notice to the other party,
      have
      such dispute referred to their respective employees designated below or their
      successors, for attempted resolution by good faith negotiations within sixty
      (60) days after such notice is received. Such designated employees are as
      follows:

     

    For
      BSC: 

     

    General
      Counsel

    Boston
      Scientific Corporation

    One
      Boston Scientific Place

    Natick,
      MA 01760-1537

    Facsimile
      No.: (508) 650-8956

    
       

      
        

      

      
        
          **Confidential
            treatment requested pursuant to Rule 24b-2 of the Exchange
            Act.

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    For
      St.
      Jude: 

     

    General
      Counsel

    St.
      Jude
      Medical, Inc.

    One
      Lillehei Plaza

    St.
      Paul,
      MN 55117

    Facsimile
      No.: (651) 481-7690

    

    Any
      settlement reached by the parties under this Section 8.01 (c) shall not be
      binding until reduced to writing and signed by authorized officers of BSC and
      St. Jude. If the designated employees are unable to resolve such dispute within
      such sixty-day period, any party may invoke the other ADR provisions of this
      Section 8.01.

     

    ARTICLE
      IX

     

    General
      Provisions

     

    Section
      9.01.
      Modification.
      The
      Agreement may not be modified, changed, or terminated orally. No change,
      modification, addition, or amendment shall be valid unless given in a writing
      expressly indicating an intent to modify the Agreement and duly executed by
      the
      parties.

     

    Section
      9.02.
      Assignment
      and Transfer.
      The
      licenses and other rights granted in this Agreement shall be nonassignable
      and
      nontransferable except in connection with the sale of a party’s CRM Products
      business (whether by the sale of all or substantially all of a party’s assets or
      its subsidiaries' assets related to CRM Products, sale of stock of one or more
      subsidiary companies, merger, or otherwise). Except as permitted herein, a
      purported transfer of the license or other rights granted herein shall be null
      and void and shall give the other party hereto the right to terminate the
      licenses granted to the transferring party without terminating the licenses
      granted by the transferring party. Subject to the foregoing, this Agreement
      shall be binding upon and inure to the benefit of St. Jude, BSC, and their
      respective Affiliates and successors.

     

    Section
      9.03.
      Assurances.
      BSC
      shall in all events remain fully responsible for, and shall assure its own
      and
      its Affiliates' performance of, all of their respective obligations under this
      Agreement, and St. Jude shall in all events remain fully responsible for, and
      shall assure its own and its Affiliates' performance of, all of their respective
      obligations under this Agreement.

     

    Section
      9.04.
      Entire
      Agreement.

     

    Other
      than for the agreements listed in Exhibit G, hereto, which shall still remain
      in
      full force and effect in accordance with their terms and conditions, this
      Agreement constitutes the entire agreement among the parties with respect to
      the
      subject matter hereof and supersedes any and all negotiations, correspondence,
      understandings and agreements, whether written or oral, between the parties
      respecting the subject matter hereof. Except for those license agreements listed
      in Exhibit G, any license agreement covering any Licensed Patents in existence
      between the parties prior to the Effective Date shall be deemed terminated
      as of
      the Effective Date and superseded by this Agreement.

    
       

      
        

      

      
        
          **Confidential
            treatment requested pursuant to Rule 24b-2 of the Exchange
            Act.

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    Section
      9.05.
      Governing
      Law.
      Recognizing that the laws within the United States and international
      jurisdictions vary in their content and effect with respect to similar subject
      matter, and that the parties desire uniformity and predictability in
      interpretation and enforcement of this Agreement, the parties have agreed to
      the
      following provisions regarding applicable law to govern this Agreement: All
      matters affecting the interpretation, form, validity, and performance of this
      Agreement shall be decided under the laws of the State of Minnesota (without
      regard to principles of conflicts of laws), including its procedural laws;
      provided, however, that (a) nothing in Minnesota state procedural law shall
      be
      deemed to alter or affect the applicability of the Federal Arbitration Act
      as
      governing arbitration of disputes as provided in this Agreement, and (b) no
      Minnesota state arbitration laws or arbitration rules shall be
      applicable.

     

    Section
      9.06.
      Force
      Majeure.
      No
      party (including any of its Affiliates) shall be liable in damages for, nor
      shall this Agreement be terminable or cancelable by reason of, any delay or
      default in any party's performance hereunder if such default or delay is caused
      by events beyond such party's reasonable control including, but not limited
      to,
      acts of God, action of any government or agency thereof, war or insurrection,
      civil commotion, destruction of facilities or materials by earthquake, fire,
      flood or storm, labor disturbances, epidemic, or failure of public utilities
      or
      common carriers. The party (or Affiliates) so affected shall give prompt notice
      to the other parties of such cause, and shall take whatever reasonable steps
      are
      necessary to relieve the effect of such cause as rapidly as possible. All
      parties (or Affiliates) agree to endeavor to resume their performance hereunder
      if such performance is delayed or interrupted by reason of force
      majeure.

     

    Section
      9.07.
      Counterparts.
      This
      Agreement may be executed simultaneously in two or more counterparts, each
      of
      which shall be deemed to be an original.

     

    Section
      9.08.
      Captions.
      The
      captions in this Agreement are intended solely as a matter of convenience and
      are for reference only, and shall be given no effect in the construction or
      interpretation of this Agreement.

     

    Section
      9.09.
      Severability
      of Provisions.
      Should
      any part or provision of this Agreement be held unenforceable or in conflict
      with the law of any jurisdiction, the validity of the remaining parts or
      provisions shall not be affected by such holding.

     

    Section
      9.10.
      No
      Agency.
      At no
      time shall any party or its Affiliate hold itself out to be the agent, employee,
      lessee, sublessee, partner, or joint venture partner of the other party or
      its
      Affiliates. Nothing in this Agreement shall be construed to create any
      relationship between the parties other than that of licensor/licensee (or
      sublicensor/sublicensee) as provided in this Agreement. No party or its
      Affiliates shall have any express or implied right or authority to assume or
      create any obligations on behalf of or in the name of the other party or its
      Affiliates or to bind the other party or its Affiliates with regard to any
      other
      contract, agreement, or undertaking with a third party.

     

    Section
      9.11.
      Further
      Assurances.
      At such
      time and from time to time on and after the Effective Date upon request by
      a
      party, the other party will execute and deliver or will cause to be executed
      and
      delivered, all such further acts, acknowledgments, and assurances that may
      be
      reasonably required for carrying out the purposes of this Agreement. Such
      further assurances may include, but not be limited to, an acknowledgment by
      Affiliates of a party that such Affiliates are

    
       

      
        

      

      
        
          **Confidential
            treatment requested pursuant to Rule 24b-2 of the Exchange
            Act.

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    bound
      by
      the terms and provisions of this Agreement or an acknowledgment that a
      particular patent is a Licensed Patent or a Sublicensable Patent.

     

    Section
      9.12.
      Construction
      Against Waiver.
      No
      waiver of any term, provision, or condition of this Agreement, whether by
      conduct or otherwise, in any one or more instances shall be deemed to be or
      construed as a further or continuing waiver of any such term, provision, or
      condition of this Agreement; nor shall any failure to enforce any provision
      hereof operate as a waiver of such provision or of any other
      provision.

     

    IN
      WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
      in
      duplicate and duly attested by their corporate officers duly authorized for
      this
      purpose.

     

     

    BOSTON
      SCIENTIFIC CORPORATION.

     

    By:
      /s/
      Paul W.
      Sandman                                     

    Executive
      Vice President, Secretary

    and
      General Counsel 

    

     

    ATTEST:

     

    By: /s/
      Lawrence J. Knopf         

    ST.
      JUDE
      MEDICAL, INC.

     

    By:
      /s/
      Pamela S.
      Krop                                   
       

    Vice
      President, General Counsel and Secretary

    

     

    ATTEST:

     

    By:
      /s/ James W. A. Ladner       

     

     

     

    
       

      
        

      

      
        
          **Confidential
            treatment requested pursuant to Rule 24b-2 of the Exchange
            Act.

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    Exhibit
      A

    Exclusions
      from "Licensed Patents" Pursuant to Section 1.03(d)

     

    
 

    U.S.
      Patents:

    **

    

    

    U.S.
      Patent Applications:

    **

    

    
 

     

     

     

     

     

     

     

     

     

     

    
       

      
        

      

      
        
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            treatment requested pursuant to Rule 24b-2 of the Exchange
            Act.

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    Exhibit
      B

    Sublicensable
      Patents

    

    BSC
      Sublicensable Patents:

    

    St.
      Jude
      Sublicensable Patents:

    

    **

    

    U.S.
      Patents:

    **

    

    U.S.
      Patent Applications:

    **

    

    **

    

    U.S.
      Patents:

    **

    

    U.S.
      Patent Applications:

    **

    

    **

    

    U.S.
      Patent No. **

    

    **

    

    U.S.
      Patent Applications:

    **

    

    **

    

    U.S.
      Patent No. **

    

    **

    

    U.S.
      Patents:

    **

    

    **

    

    U.S.
      Patents:

    **

    

    
       

      
        

      

      
        
          **Confidential
            treatment requested pursuant to Rule 24b-2 of the Exchange
            Act.

        

        
          
          

          
            

          

        

        
          
          

      

    

    

    **

    

    U.S.
      Patents:

    **

    

    **

    

    U.S.
      Patents:

    **

    

    

    
 

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
       

      
        

      

      
        
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            treatment requested pursuant to Rule 24b-2 of the Exchange
            Act.

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    Exhibit
      C

    **
      Patents

    

    

    

    

    
 

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
       

      
        

      

      
        
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            treatment requested pursuant to Rule 24b-2 of the Exchange
            Act.

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    Exhibit
      D

    **
      Patents

     

    
 

    U.S.
      Patent Applications:

    **

    

    **

    

    U.S.
      Patents:

    **

    

    U.S.
      Patent Applications:

    **

    

    

    

    
 

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
       

      
        

      

      
        
          **Confidential
            treatment requested pursuant to Rule 24b-2 of the Exchange
            Act.

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    Exhibit
      E

    ADR
      Procedure Pursuant to Section 8.01(a)

    

    1. 
Upon
      the
      expiration of the 60-day period for good faith negotiations pursuant to Section
      8.01(c), any party may initiate arbitration with the American Arbitration
      Association ("AAA") by filing a Notice of Arbitration pursuant to the
      then-existing AAA rules for commercial arbitration. Should any provision of
      the
      applicable AAA rules conflict in any way with any provision of this Agreement,
      this Agreement shall govern. 

    

    2.
       
Within
      twenty (20) days after filing the Notice of Arbtiration, the parties shall
      appoint a single, neutral arbitrator. The arbitrator shall have substantial
      experience in patent infringement litigation and in determining whether a
      product embodies patent claims. If the parties are unable to agree on the
      arbitrator within the time specified above, AAA will select a so-qualified
      arbitrator within three (3) business days thereafter.

    

    3. 
The
      parties shall not be entitled to any discovery.

    

    4. 
Fifty
      (50) days after filing the Notice of Arbitration, each party will submit to
      the
      arbitrator an opening brief, not to exceed 40 pages in length, setting forth
      its
      position on the merits of the dispute. The text must be spaced at least 24
      points vertically and the font must be at least 12 points. Claim charts
      regarding infringement, non-infringement, or invalidity, attached to the brief
      as exhibits for the convenience of the arbitrator, will not count towards the
      page limit.

    

    5. 
Eighty
      (80) days after filing the Notice of Arbitration, each party will submit to
      the
      arbitrator a reply brief, not to exceed 40 pages in length, setting forth its
      responses to the other party’s opening brief. The reply brief may not raise any
      issues not already raised in the parties’ opening briefs and must conform to the
      same spacing/font requirements as the opening briefs.

    

    6.              
      No
      more
      than one-hundred twenty (120) days after filing the Notive of Arbitration,
      the
      arbitrator shall provide a written, reasoned decision to the
      parties.

    
 

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      F

    ADR
      Procedure Pursuant to Section 8.01(b)

    

    1. 
Upon
      the
      expiration of the 60-day period for good faith negotiations pursuant to Section
      8.01(c), any party may initiate arbitration with the American Arbitration
      Association ("AAA") by filing a Notice of Arbitration pursuant to the
      then-existing AAA rules for commercial arbitration. Should any provision of
      the
      applicable AAA rules conflict in any way with any provision of this Agreement,
      this Agreement shall govern. 

    

    2.
       
Within
      twenty (20) days after filing the Notice of Arbtiration, the parties shall
      appoint a single, neutral arbitrator. The arbitrator shall have substantial
      experience in commercial licensing, preferably in the medical devices industry.
      If the parties are unable to agree on the arbitrator within the time specified
      above, AAA will select a so-qualified arbitrator within three (3) business
      days
      thereafter.

    

    3. 
The
      parties shall be entitled to discovery as ordered by the arbitrator; however,
      it
      is the intention of the parties that any such discovery be limited in scope
      in
      order to reduce the cost and burden to the parties. The arbitrator shall take
      this intention into account when ordering discovery so that any discovery so
      ordered is narrowly-tailored to lead to relevant information while minimizing
      the burden and cost of such discovery on the parties.

    

    4. 
The
      arbitrator will be empowered to award specific performance of the Agreement,
      as
      well as compensatory damages, costs, and attorneys' fees to the prevailing
      party, as the arbitrator deems appropriate. No punitive damages of any kind
      shall be awarded.

    

    5.
       
The
      arbitration shall be conducted in such a way that the arbitrator issues a
      decision and award no later than six (6) months after commencement of the
      arbitration. 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      G

    Additional
      Agreements Still in Effect

    

    "Agreement"
      between Pacesetter, Inc. and Intermedics, Inc. effective October 22,
      1996

    

    "License
      Agreement" between Pacesetter, Inc. and Sulzer Intermedics, Inc. having an
      Effective Date of December 3, 1996

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