Document:

Exhibit 4.3 

 

FIRST SUPPLEMENTAL INDENTURE

 

FIRST SUPPLEMENTAL INDENTURE, dated as of
January 6, 2020 (this “Supplemental Indenture”), by and between THE MEDICINES COMPANY, a Delaware corporation,
as issuer (the “Company”), and WELLS FARGO BANK, NATIONAL ASSOCIATION, as trustee (the “Trustee”),
supplements the Indenture, dated as of December 18, 2018 (the “Indenture”), between the Company and the Trustee.

 

RECITALS OF THE COMPANY

 

WHEREAS, pursuant to the Indenture, the
Company issued $172,500,000 aggregate principal amount of 3.50% Convertible Senior Notes due 2024 (the “Notes”);

 

WHEREAS, pursuant to the Agreement and Plan
of Merger (the “Merger Agreement”), dated as of November 23, 2019, among Novartis AG, a company organized under
the laws of Switzerland (“Parent”), Medusa Merger Corporation, a Delaware corporation and an indirect, wholly
owned subsidiary of Parent (“Merger Sub”), and the Company, Merger Sub has offered to purchase any and all outstanding
shares of Company Common Stock (as defined in the Merger Agreement) (“Common Stock”) at a price per share of
$85.00 in cash, without interest and subject to any withholding of taxes required by applicable law (the “Offer”);

 

WHEREAS, following the consummation of the
Offer, pursuant to the Merger Agreement, Merger Sub will merge with and into the Company, with the Company continuing as the surviving
corporation and an indirect, wholly owned subsidiary of Parent (the “Merger”);

 

WHEREAS, pursuant to the Merger Agreement,
at the Effective Time (as defined in the Merger Agreement) (the “Effective Time”), each share of Common Stock
outstanding immediately prior to the Effective Time (other than (i) shares of Common Stock that at the Effective Time are
owned by the Company, Parent, Merger Sub, any other subsidiary of Parent or any subsidiary of the Company or that are held in the
Company’s treasury and (ii) shares of Common Stock that are outstanding immediately prior to the Effective Time and that
are held by a Company stockholder who properly demands and perfects appraisal rights under Delaware law) will be converted into
the right to receive $85.00 in cash, without interest and subject to any withholding of taxes required by applicable law;

 

WHEREAS, pursuant to Section 14.07(a) of the
Indenture, the Merger constitutes a Share Exchange Event, and the Indenture provides the Company shall execute with the Trustee
a supplemental indenture providing that from and after the Effective Time the right to convert each $1,000 principal amount of
Notes shall be changed into a right to convert such principal amount of Notes into the units of Reference Property;

 

WHEREAS, pursuant to the terms of the Merger
Agreement and Section 14.07(a) of the Indenture, each unit of Reference Property consists of $85.00 in cash;

 

WHEREAS, Section 10.01(j) of the Indenture
provides that the Company and the Trustee may enter into a supplemental indenture, without prior notice to or the consent of the
Holders of any of the Notes at the time outstanding, in connection with any Share Exchange Event to provide that the Notes are
convertible into Reference Property, subject to the provisions of Section 14.02 of the Indenture, and to make related changes to
the terms of the Notes to the extent expressly required by the Indenture;

 

     

     

    

 

WHEREAS, the Board of Directors has duly adopted
resolutions authorizing the Company to execute and deliver this Supplemental Indenture;

 

WHEREAS, the Company has requested that the
Trustee execute and deliver this Supplemental Indenture and has delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel; and

 

WHEREAS, all conditions precedent provided
for in the Indenture relating to the execution of this Supplemental Indenture have been complied with.

 

NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE
WITNESSETH, for and in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby
acknowledged, the parties hereto mutually covenant and agree for the equal and proportionate benefit of the Holders as follows:

 

ARTICLE I

TERMS

 

Section 1.01    Definitions. Capitalized
terms used but not defined herein have the meanings ascribed to such terms in the Indenture.

 

ARTICLE II

AMENDMENTS

 

Section 2.01    Conversion Right. Pursuant
to Section 14.07(a) of the Indenture, from and after the Effective Time, the right to convert each $1,000 principal amount of Notes
shall be changed into a right to convert such principal amount of Notes solely into a number of units of Reference Property in
an aggregate amount equal to the Conversion Rate in effect on the Conversion Date (subject to any adjustments under Section 14.03
of the Indenture) multiplied by the Stock Price paid per share of Common Stock in the Merger, (A) which in the case of a
conversion in connection with a Make-Whole Fundamental Change as described in the second sentence of Section 14.03(a) will be cash
equal to $3,425.398 per $1,000 principal amount of Notes based on a Conversion Rate equal to (i) 39.6920 shares of Common Stock
per $1,000 principal amount of Notes plus (ii) the Additional Shares, or 0.6068 shares of Common Stock per $1,000 principal
amount of Notes (as determined by reference to the table set forth in Section 14.03(e) of the Indenture based on the Effective
Date of the Make-Whole Fundamental Change being January 6, 2020 and the Stock Price paid per share of Common Stock in the Make-Whole
Fundamental Change being $85.00), and (B) which in the case of a conversion at all other times when such Notes are convertible
beginning immediately after the Business Day immediately preceding the Fundamental Change Repurchase Date corresponding to such
Fundamental Change will be cash equal to $3,373.820 per $1,000 principal amount of Notes. Accordingly, any reference in respect
of the Holders’ conversion rights to a share of Common Stock in the Indenture shall be deemed a reference to a right to receive
an amount equal to $85.00 and the provisions of the Indenture, as modified herein, shall continue to apply, mutatis mutandis,
to the Holders’ right to convert the Notes into the Reference Property.

 

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Section 2.02.    Last Reported Sale Price
of the Common Stock. With respect to any date from and after the Effective Time, the Last Reported Sale Price shall be $85.00
on that date, notwithstanding anything to the contrary in the Indenture.

 

ARTICLE III

ACCEPTANCE OF SUPPLEMENTAL INDENTURE

 

Section 3.01    Trustee’s Acceptance.
The Trustee hereby accepts this Supplemental Indenture and agrees to perform the same under the terms and conditions set forth
in the Indenture.

 

ARTICLE IV

MISCELLANEOUS PROVISIONS

 

Section 4.01    Governing Law; Waiver of
Trial by Jury. THIS SUPPLEMENTAL INDENTURE AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS SUPPLEMENTAL
INDENTURE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

EACH OF THE COMPANY AND THE TRUSTEE HEREBY
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
ARISING OUT OF OR RELATING TO THIS SUPPLEMENTAL INDENTURE OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

Section 4.02    Benefits of Supplemental
Indenture. Nothing in this Supplemental Indenture, expressed or implied, shall give to any Person, other than the Holders,
the parties hereto, any Paying Agent, any Conversion Agent, any authenticating agent, any Note Registrar and their successors hereunder,
any benefit or any legal or equitable right, remedy or claim under this Supplemental Indenture.

 

Section 4.03    Execution in Counterparts.
This Supplemental Indenture may be executed in any number of counterparts, each of which shall be an original, but such counterparts
shall together constitute but one and the same instrument. The exchange of copies of this Supplemental Indenture and of signature
pages by facsimile or PDF transmission shall constitute effective execution and delivery of this Supplemental Indenture as to the
parties hereto and may be used in lieu of the original Supplemental Indenture for all purposes. Signatures of the parties hereto
transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes.

 

Section 4.04    Ratification of Indenture.
The Indenture, as supplemented by this Supplemental Indenture, is in all respects ratified and confirmed, and this Supplemental
Indenture shall be deemed part of the Indenture in the manner and to the extent herein provided.

 

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Section 4.05    The Trustee. The Trustee
makes no representations as to and shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency
of this Supplemental Indenture. The recitals in this Supplemental Indenture are made by the Company only and not by the Trustee,
and all of the rights, privileges, protections, immunities and benefits afforded to the Trustee under the Indenture are deemed
to be incorporated herein, and shall be enforceable by the Trustee hereunder, in each of its capacities hereunder as if set forth
herein in full.

 

Section 4.06    Effect on Successors and
Assigns. Notwithstanding Section 17.09 of the Indenture, all agreements of the Company, the Trustee, the Note Registrar, the
Paying Agent and the Conversion Agent in this Supplemental Indenture will bind their respective successors.

 

Section 4.07    Headings, Etc. The
titles and headings of the articles and sections of this Supplemental Indenture have been inserted for convenience of reference
only, are not to be considered a part hereof, and shall in no way modify or restrict any of the terms or provisions hereof.

 

[Signature Pages Follow]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed as of the day and year first written above. 

 

	 	 

 THE MEDICINES COMPANY
	 	 
	 	By:	/s/ Stephen M. Rodin
	 	 	Name:  	Stephen M. Rodin
	 	 	Title:	Executive Vice President and General Counsel

  

[Signature Page to 2024 Notes Supplemental
Indenture]

 

     

     

    

 

	 	WELLS FARGO BANK, NATIONAL ASSOCIATION,

 as Trustee
	 	 
	 	By:	/s/ Michael Q. Tu
	 	 	Name:	  Michael Q. Tu
	 	 	Title: 	  Vice President

  

[Signature Page to 2024 Notes Supplemental
Indenture]Exhibit

EXHIBIT 10.1

AMENDMENT NO. 1 TO
EXECUTIVE EMPLOYMENT AGREEMENT

This Amendment No. 1 (this “Amendment”) to the Employment Agreement (as defined below) is dated as of January 3, 2020 and is entered into between Avaya Inc., a Delaware corporation (the “Company”), and James M. Chirico, Jr. (“Executive”).  Capitalized terms used but not defined herein shall have the same meanings set forth in the Employment Agreement.
WHEREAS, on November 13, 2017, the Company and Executive entered into an executive employment agreement (the “Employment Agreement”); 

WHEREAS, the parties now desire to amend certain provisions of the Employment Agreement, as set forth below; 
    
WHEREAS, the board of directors of Avaya Holdings Corp. has approved this Amendment; and

WHEREAS, this Amendment shall become effective as of the date set forth above.

NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and upon the terms and conditions set forth below, the parties agree to amend the Employment Agreement as set forth herein:
		
	1.
	Amendment to Section 1.5 of the Employment Agreement.  Section 1.5 of the Employment Agreement (Bonus) is hereby deleted and replaced in its entirety with the following:

“1.5 Bonus. During each fiscal year during the Employment Period, Executive shall be eligible to participate in Employer’s bonus plan as established by the Committee and in effect from time to time for its senior executives and will be eligible to earn one or more performance bonus(es) under such plan (collectively, a “Bonus”), to the extent earned based on performance against objective, reasonably attainable performance criteria established by the Committee. The performance criteria for any particular performance period during the fiscal year (which may include the full fiscal year) shall be determined in good faith by the Committee, after consultation with Executive, no later than ninety (90) days after the commencement of such performance period (or such corresponding lesser period of time to the extent the performance period is not a full fiscal year).  Executive’s target Bonus opportunity for each fiscal year commencing with fiscal year 2020 shall equal 150% of Executive’s Base Salary (the “Target Bonus”) if target levels of performance for the applicable fiscal year are achieved, provided that Executive’s actual Bonus hereunder in respect of any 12 month period beginning as of the first day of the 2020 fiscal year may not exceed 300% of Executive’s Base Salary. Executive’s Bonus payment for each performance period during the fiscal year (which may include the full fiscal year) shall be determined by the Committee after the end of the applicable performance period and shall be paid to Executive when bonuses for such performance period are paid to Employer’s other senior executives generally, but in any event within seventy-five (75) days following the end of such performance period, provided that Executive remains employed through and including the applicable payment date, unless otherwise expressly provided for herein. In carrying out its functions under this Section 1.5, the Committee shall at all times act reasonably and in good faith.”

Avaya – Restricted, Proprietary and Confidential

		
	2.
	Deletion and Replacement of Section 3 of the Employment Agreement.  Section 3 of the Employment Agreement (Tax Gross-Up Payments) is hereby deleted and replaced in its entirety with the following:

“3.  Excise Tax.  (a) Notwithstanding any other provisions in this Agreement (or the documents incorporated herein by reference), in the event it shall be determined that any payment or distribution by Employer (or any successor thereto or affiliate thereof) to or for the benefit of Executive (whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise, including, without limitation, as a result of the acceleration of the vesting of equity awards) (all such payments and benefits, together, the “Total Payments”) will be subject (in whole or in part) to the excise tax imposed by Section 4999 of the Code or any comparable tax imposed by any replacement or successor provision of United States tax law (such excise tax, together with any applicable interest and penalties, are hereinafter collectively referred to as the “Excise Tax”) then, after taking into account any reduction in the Total Payments provided by reason of Section 280G of the Code in such other plan, program, arrangement or agreement, the Employer will reduce the Total Payments to the extent necessary so that no portion of the Total Payments is subject to the Excise Tax (but in no event to less than zero); provided, however, that the Total Payments will only be reduced if (i) the net amount of such Total Payments, as so reduced (and after subtracting the net amount of federal, state, municipal and local income taxes on such reduced Total Payments and after taking into account the phase out of itemized deductions and personal exemptions (if applicable) attributable to such reduced Total Payments), is greater than or equal to (ii) the net amount of such Total Payments without such reduction (but after subtracting the net amount of federal, state, municipal and local income taxes on such Total Payments and the amount of Excise Tax to which Executive would be subject in respect of such unreduced Total Payments and after taking into account the phase out of itemized deductions and personal exemptions (if applicable) attributable to such unreduced Total Payments).

(b)           In the case of a reduction in the Total Payments, the Total Payments will be reduced in the following order:  (i) payments that are payable in cash that are valued at full value under Treasury Regulation Section 1.280G-1, Q&A 24(a) will be reduced (if necessary, to zero), with amounts that are payable last reduced first; (ii) payments and benefits due in respect of any equity valued at full value under Treasury Regulation Section 1.280G-1, Q&A 24(a), with the highest values reduced first (as such values are determined under Treasury Regulation Section 1.280G-1, Q&A 24) will next be reduced; (iii) payments that are payable in cash that are valued at less than full value under Treasury Regulation Section 1.280G-1, Q&A 24, with amounts that are payable last reduced first, will next be reduced; (iv) payments and benefits due in respect of any equity valued at less than full value under Treasury Regulation Section 1.280G-1, Q&A 24, with the highest values reduced first (as such values are determined under Treasury Regulation Section 1.280G-1, Q&A 24) will next be reduced; and (v) all other non-cash benefits not otherwise described in clauses (ii) or (iv) will be next reduced pro-rata.  Any reductions made pursuant to each of clauses (i)-(v) above will be made in the following manner: first, a pro-rata reduction of cash payment and payments and benefits due in respect of any equity not subject to Section 409A of the Code, and second, a pro-rata reduction of cash payments and payments and benefits due in respect of any equity subject to Section 409A of the Code as deferred compensation.

(c)           For purposes of determining whether and the extent to which the Total Payments (or any portion of the Total Payments) will be subject to the Excise Tax:  (i) no portion of the Total Payments the receipt or enjoyment of which Executive shall have waived at such time and in such manner as not to constitute a “payment” within the meaning of Section 280G(b) of the Code will be taken into account; (ii) no portion of the Total Payments will be taken into account 

2

Avaya – Restricted, Proprietary and Confidential

which, in the opinion of tax counsel (“Tax Counsel”) reasonably acceptable to Executive and selected by the accounting firm which was, immediately prior to the change in control, the Employer’s or Parent’s independent public accounting firm (the “Auditor”), does not constitute a “parachute payment” within the meaning of Section 280G(b)(2) of the Code (including by reason of Section 280G(b)(4)(A) of the Code) and, in calculating the Excise Tax, no portion of such Total Payments will be taken into account which, in the opinion of Tax Counsel, constitutes reasonable compensation for services actually rendered, within the meaning of Section 280G(b)(4)(B) of the Code, in excess of the “base amount” (as set forth in Section 280G(b)(3) of the Code) that is allocable to such reasonable compensation; and (iii) the value of any non-cash benefit or any deferred payment or benefit included in the Total Payments will be determined by the Auditor in accordance with the principles of Sections 280G(d)(3) and (4) of the Code.

(d)           At the time that any amounts subject to this Section 3 are paid or become payable to Executive, the Employer will provide Executive with a written statement setting forth the manner in which such amounts were calculated and the basis for such calculations, including any opinions or other advice the Employer received from Tax Counsel, the Auditor, or other advisors or consultants (and any such opinions or advice which are in writing will be attached to the statement).  If Executive objects to Employer’s calculations, Employer will pay to Executive such portion of the Total Payments (up to 100% thereof) as Executive determines is necessary to result in the proper application of this Section 3.  All determinations required by this Section 3 (or requested by either Executive or Employer in connection with this Section 3) will be at the expense of Employer.  The fact that Executive’s right to payments or benefits may be reduced by reason of the limitations contained in this Section 3 will not of itself limit, expand or otherwise affect any other rights of Executive under this Agreement.”
 
		
	3.
	Counterparts.  This Amendment may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which together shall be deemed to be one and the same instrument.  Execution of this Amendment may be effectuated via signed and scanned .pdf format.

		
	4.
	References to Agreement.  References to this or the “Agreement” as used in the Employment Agreement shall be deemed to include references to this Amendment.

		
	5.
	Other.  Except as specifically modified herein, the Employment Agreement shall remain in full force and effect.

[Signature page to follow]

3

Avaya – Restricted, Proprietary and Confidential

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

AVAYA INC.
By:   /s/ Shefali Shah      
Name:  Shefali Shah  
Title:    EVP, Chief Administrative Officer & General Counsel

EXECUTIVE:
/s/ James M. Chirico, Jr.  
James M. Chirico, Jr.

4

Avaya – Restricted, Proprietary and Confidential

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