Document:

Exhibit 10.20

 

AGREEMENT FOR LOGISTICS SERVICES

 

This
Agreement for Logistics Services (this “Agreement”),
executed as of this 30th day of June, 2005, is made by and between
MWI Veterinary Supply Co., located at 651 S. Stratford Drive, Suite 100,
Meridian, ID 83642 (“MWI”), and
Medical Management International, Inc., dba Banfield, The Pet Hospital,
located at 11815 NE Glenn Widing Drive, Portland, OR 97220 (“Banfield”). 
The parties agree to the following:

 

1.                                      Logistics Fees. 
Banfield
and MWI have agreed upon the following logistics fees to be paid by Banfield
for services performed by MWI in accordance with this Agreement (the “Logistics Fees” and each, a “Logistics
Fee”).  The respective
Logistics Fees will be payable in the circumstances described for each fee
below.  The amount of each Logistics Fee
as stated below is per **.  No more than
one Logistics Fee will be payable on any **.

 

	
  Order Type

  	
   

  	
  Logistics

  Fee

  	
   

  	
  Functions Performed by MWI

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MWI Inventory

  	
   

  	
  $**

  	
   

  	
  Order
  processing; warehouse; 

  	
   

  
	
  (order fulfilled from MWI-owned
  general inventory at

  MWI warehouse)

  	
   

  	
   

  	
   

  	
  collection

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Toll Warehouse

  	
   

  	
  $**

  	
   

  	
  Order
  processing; warehouse; 

  	
   

  
	
  (order fulfilled from MWI-owned
  inventory stocked exclusively for Banfield at MWI warehouse)

  	
   

  	
   

  	
   

  	
  collection

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Consignment (**)

  	
   

  	
  $**

  	
   

  	
  Order
  processing; warehouse

  	
   

  
	
  (order fulfilled from
  inventory owned by Banfield or a third party, and held by MWI at an MWI
  warehouse)

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Drop Shipments

  	
   

  	
  $**

  	
   

  	
  Order
  processing; collection

  	
   

  
	
  (order fulfilled by direct
  shipment from manufacturer or supplier to Banfield, with payment to MWI)

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Pass-Through

  	
   

  	
  $**

  	
   

  	
  Order
  processing

  	
   

  
	
  (order fulfilled directly
  by manufacturer or supplier who bills and collects directly from Banfield)

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Credits

  	
   

  	
  $**

  	
   

  	
  Order
  processing; warehouse; 

  	
   

  
	
  (applies when Banfield
  returns products for reasons other than MWI mis-shipment or breach of MWI
  warranty)

  	
   

  	
   

  	
   

  	
  collection

  	
   

  

 

The
Logistics Fees will be invoiced and paid in accordance with Section 3
below.  The Logistics Fees will not be
subject to adjustment without the mutual written agreement of Banfield and
MWI.  The above Logistic Fee pricing
assumes that MWI will provide the applicable logistics functions, as set forth
in the above schedule, for all existing Banfield practice-owned hospitals and
any new practice-owned hospitals that will be opened during the term of this
Agreement.  Such pricing also assumes
that Banfield will make reasonable efforts to have Charter Practices utilize
MWI for all such functions.  Orders by
Banfield practice-owned and Charter 

 

 

Practice
hospitals will be entered via BanfieldDirect.com, Oracle I Procurement, or some
other electronic means.  For purposes of
this Agreement, “practice-owned” means those hospitals owned and operated
directly by MMI or owned and operated by A Caring Doctor, P.C.; A Caring Doctor
(Minnesota), P.A.; A Caring Doctor (New Jersey), P.C.; A Caring Doctor (North
Carolina), P.C.; or A Caring Doctor (Texas), P.C.

 

2.                                      Opening Order Fees and
Hospital Reset Fees.  There will be a $** fee for the special
service requirements related to the initial order for the opening of a
full-service hospital, and a $** fee for an order for a hospital reset or
refurbishment with no additional Logistics Fees in either case.  However, when Banfield team members enter
orders into BanfieldDirect.com or Oracle I Procurement and the orders do not
require special staging in an MWI warehouse, then these special fees shall not
apply to opening orders, resets and refurbishments and the regular Logistics
Fees will apply.

 

3.                                      Payment Terms. 
MWI will
extend payment terms to Banfield of ** days from invoice date. When using the
consolidated invoice download, the invoice date will be considered to be the
date of the consolidated invoice weekly report. 
Banfield may prepay for purchases by issuing a payment to MWI for
approximately ** days of Banfield’s estimated purchases.  **.  Banfield
and MWI will review and true up Banfield’s account once each month by an
additional payment from Banfield if the prepayment was less than the actual
invoice total and by a refund to Banfield if the prepayment exceeded the actual
invoice total.  Banfield agrees to make
all payments via electronic funds transfer.

 

4.                                      On-Site Training. 
MWI will,
at no cost to Banfield, provide ongoing training at the direction of Banfield’s
Senior Director of Purchasing to Banfield team members regarding systems and
procedures for hospital ordering and inventory management.

 

5.                                      Ordering. 
MWI, to
Banfield’s specifications, has developed and will continue to maintain, at MWI’s
expense, the Internet based order entry system BanfieldDirect.com.  Banfield may use this system or Oracle
I-procurement as its primary method of entering ** supply orders for its
hospitals.  ** orders will be placed, at
the direction of Banfield’s Purchasing team, ** each week for processing ** and
shipment **, except in cases of holidays, when shipments can be ** of the week.

 

6.                                      Shipping Errors. 
In the
event that MWI makes a shipping error, i.e., shipping a product not ordered or
shipping a quantity of product not as ordered, MWI will not charge Banfield for
the logistics fee and applicable freight related to the incorrect
shipment.  When a call is received from a
hospital and it is determined that there has been a shipping error, MWI’s
Banfield support team will re-enter an order to ship the correct product, and
at that time will issue a credit to the hospital for the logistics fee and
freight relating to the incorrect shipment, and will also issue a credit for
the logistics fee and freight that will be assessed when the incorrect product
is returned.

 

7.                                      Supply.  MWI realizes that Banfield relies upon MWI as
Banfield’s sole-source distributor for most products and will therefore program
its inventory system to stock the highest service level available for all
products on the Banfield formulary. 
Unless MWI and Banfield otherwise agree in writing, the “highest service
level available” means, for each product listed in Exhibit A
attached hereto (as such exhibit may be amended from time to time by mutual
written agreement of MWI and Banfield) at each of MWI’s regional warehouses, a **-day
supply based on Banfield’s estimated rolling average requirements for such
product in such region over the coming ** months. Banfield will be provided prompt
notification whenever any product listed in Exhibit A falls below a
** day supply at any warehouse and such deficiency is not cured within **
calendar days.  In addition MWI will
stock a **-day supply of all ** products at all times, barring delivery
problems from **.  Banfield branded items
and other inventory items unique to Banfield will be segregated and maintained
in a special Banfield “virtual warehouse” at 

 

2

 

each of MWI’s regional
facilities where justified by usage and economics and be made available only to
Banfield.

 

8.                                      Charter Hospitals. 
MWI will
offer its services and products to each Banfield Charter Practice hospital on
the terms described in this Agreement and the Agreement for Product
Purchases.  Banfield will use all
reasonable efforts to encourage Charter hospitals to (1) order all of
their products through MWI and (2) maintain confidentiality regarding
terms on which MWI’s services are provided. 
MWI will use all reasonable efforts to encourage Charter hospitals to
utilize the BanfieldDirect.com ordering system or Oracle I–procurement rather
than the MWIVET.com ordering system.

 

9.                                      Internet Reliability
Report.  MWI will provide to Banfield, each month, an
Internet reliability report showing total up-time and down-time as percentages
on the days Banfield places orders (**), and listing of any problems that have
occurred during the month which have resulted in customer inconvenience.

 

10.                               Term.  This Agreement shall be effective for an initial term
of July 1, 2005 through June 30, 2008 (the “Initial Term”).  During the final 90 days of the Initial
Term, MWI and Banfield will analyze the fiscal results of the prior three years
and agree upon any revisions to the Logistics Fee pricing or other aspects of
this Agreement (the “Review Period”).  During this time Banfield and MWI will
discuss and assess options to reduce costs to Banfield.  If the parties reach agreement in writing
upon any adjustments to pricing or other provision of this Agreement during the
Review Period, then the term of this Agreement will continue for an additional 12
months from the end of the Initial Term. 
If, before or during the first 30 days of the Review Period either party
communicates a concern or required revision in writing and a resolution is not
achieved to the mutual satisfaction of both parties during the Review Period,
this Agreement shall terminate at the end of the Initial Term.  If no such communications are set forth in
writing before or during the first 30 days of the Review Period, this Agreement
will automatically renew for an additional 12 months from the end of the Initial
Term.  This process will continue year
after year, unless MWI and Banfield cannot reach agreement during any Review
Period.

 

11.                               Termination. 
Notwithstanding
anything in Section 10 hereof, either party may terminate this Agreement at
any time, whether during or after the Initial Term, with or without cause,
provided that Banfield will give MWI at least one hundred fifty (150) days prior
written notice if Banfield elects to terminate and MWI will give Banfield at
least one hundred fifty (150) days prior written notice if MWI elects to
terminate.  Upon termination of this
Agreement, any and all rights and obligations of the parties under this
Agreement will terminate, provided that all rights, obligations or liabilities
accrued hereunder prior to termination, and all rights or obligations which by their
nature or express duration extend beyond the termination of this Agreement,
will survive termination and continue in effect indefinitely or for that
express duration.

 

12.                               Confidential Information. 
Except for
any disclosure required by law, each party agrees to retain all confidential
information received from the other party in confidence, not to disclose any
such information to any other person, and not to use any such information for
its own benefit, to the other party’s detriment or for any purpose other than in
furtherance of this Agreement.  All
information which either party and any of its agents receives at any time from the
other party or any of its agents shall be deemed confidential and subject to
the provisions of this Section 12, whether the information shall be
received orally, in writing, visually, by inspection of documents, products or
processes, by electronic transmission, or in any other form or manner,
excepting only information which the recipient establishes was generally
available to the public at the time of disclosure or subsequently became
generally available to the public other than as a result, directly or
indirectly, of disclosure by the recipient or its agents.  Information shall be confidential and shall
be subject to this Section 12 whether or not it is marked or designated “confidential”
at the time of disclosure. 
Notwithstanding the provisions above, the recipient may disclose
confidential information to its agents only to the limited extent necessary to carry
out this Agreement and maintain the business relationship.  The recipient shall be fully

 

3

 

responsible for any use or disclosure of confidential information by
any of its agents in violation of this Section 12.

 

13.                               Force Majeure. 
In the
event MWI shall be unable or fail at any time to supply, or Banfield shall be
unable or fail at any time to take and purchase, any product to be sold and
purchased hereunder in consequence of fire, explosion, accident, earthquake,
flood, drought, embargo, war (whether or not declared), riot, terrorist attack,
governmental act, delay or failure of carriers, Acts of God, or any other
contingency or delay or failure or cause beyond the control of the party
affected, excluding economic conditions affecting either party, MWI shall not
be liable to Banfield for failure to supply the product, nor shall Banfield be
liable to MWI for failure to take or purchase the product, during the period of
such disability or failure.

 

14.                               Notices. 
Any notice
or demand given by either party to the other shall be in writing and shall be
sent by courier, certified mail, postage prepaid, return receipt requested, or
fax, addressed as follows:

 

	
  If to MWI:

  	
   

  	
  651 S. Stratford Drive

  	
   

  	
  If to Banfield:

  	
   

  	
  11815 NE Glenn Widing
  Drive

  
	
   

  	
   

  	
  Suite 100

  	
   

  	
   

  	
   

  	
  Portland, OR 97220

  
	
   

  	
   

  	
  Meridian, ID 83642

  	
   

  	
   

  	
   

  	
  Attn: 

  Senior Director of
  Purchasing

  
	
   

  	
   

  	
  Attn: Director,
  Banfield Accounts

  	
   

  	
   

  	
   

  	
  Fax: 503-256-7636

  
	
   

  	
   

  	
  Fax: 208-955-8999

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  651 S. Stratford Drive

  	
   

  	
  With a copy to:

  	
   

  	
  Banfield, The Pet
  Hospital

  
	
   

  	
   

  	
  Suite 100

  	
   

  	
   

  	
   

  	
  11815 NE Glenn Widing
  Drive

  
	
   

  	
   

  	
  Meridian, ID 83642

  	
   

  	
   

  	
   

  	
  Portland, OR 97220

  
	
   

  	
   

  	
  Attn: President

  	
   

  	
   

  	
   

  	
  Attn: Legal Counsel

  
	
   

  	
   

  	
  Fax: 208-955-8999

  	
   

  	
   

  	
   

  	
  Fax: 503-256-7636

  

 

Notice sent by courier shall be deemed
effective upon delivery.  Notice sent by
certified mail shall be deemed effective on the third business day after its
deposit in the U.S. mail.  Notice sent by
fax shall be deemed effective upon machine confirmation of receipt.  Either party may by written notice change its
address for purposes of this Agreement.

 

15.                               Entire Agreement, Modifications
and Waiver.  This Agreement constitutes the entire
agreement and understanding of the parties and supersedes any prior agreements
and understandings between the parties with respect to the specific subject
matter hereof.  This Agreement cannot be
modified except in writing signed by both parties.  No waiver of any term or condition of this
Agreement shall be deemed to be a waiver of any other provision hereof, nor
shall such waiver constitute a continuing waiver, and no waiver shall be
binding unless executed in writing by the party making the waiver.

 

16.                               Governing Law.  This Agreement
shall be governed by, interpreted, construed, and the respective rights of the
parties hereto determined and all claims and disputes, whether in tort,
contract or otherwise, resolved according to the laws of the State of Oregon
notwithstanding any conflict of law principles to the contrary.  Any proceeding initiated by MWI arising out
of or in connection with this Agreement will be determined solely by a state or
federal court in Multnomah County, Oregon, and any proceeding initiated by
Banfield arising out of or in connection with this Agreement will be determined
solely by a state or federal court located in Ada County, Idaho, and the
parties consent to the jurisdiction and venue of those courts.

 

17.                               Successors and Assignment. 
All of the
terms and provisions of this Agreement will be binding on and inure to the
benefit of the parties and their respective successors and assigns.  Neither party may assign, delegate or transfer
to third parties its rights or obligations hereunder without the prior written
consent of the other party.

 

4

 

18.                               Attorney Fees.  In the event
of any legal proceeding arising out of or in connection with this Agreement or
the services provided for herein, or arising with respect to one of the
parties, including but not limited to arbitrations, bankruptcy and
reorganization proceedings and appeals, the prevailing party will be entitled
to recover from the other party its costs, disbursements and reasonable
attorney fees as determined by the court, arbitrator or other presiding
official. 

 

19.                               Counterpart Signatures. 
This
Agreement may be executed in counterparts, each of which will be deemed an
original but all of which will constitute one and the same instrument.

 

5

 

In Witness Whereof, the parties have executed this Agreement as of the
date first written above.

 

 

	
  MEDICAL MANAGEMENT

  INTERNATIONAL, INC.

  	
  MWI VETERINARY SUPPLY CO.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
    /s/  John
  Payne

  	
   

  	
  By:

  	
    /s/  Jim
  Cleary

  
	
   

  	
  John Payne

  	
   

  	
  Jim Cleary

  
	
   

  	
  Sr. Vice President -
  Practice Development

  	
   

  	
  President &
  CEO

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
    /s/  Bob
  Rusunen

  	
   

  	
  By:

  	
    /s/  Jim
  Ross

  
	
   

  	
  Bob Rusunen

  	
   

  	
  Jim Ross

  
	
   

  	
  Sr. Director of Purchasing

  	
   

  	
  Director - Business
  Development, Banfield

  
						

 

6FORM OF

BOSTON SCIENTIFIC CORPORATION

EXCESS BENEFIT PLAN

 

 

 

 

Table of Contents

	
            
 	
            
 	
            Page
 
	
            ARTICLE 1.
 	
            INTRODUCTION
 	
            1
 
	 
	
             
	
            1.1
 	
            Effect of Plan.
 	
            1
 
	
             
	
            1.2
 	
            Purpose of Plan.
 	
            1
 
	
             
	
            1.3
 	
            Status.
 	
            1
 
	
            ARTICLE 2.
 	
            DEFINITIONS
 	
            1
 
	 
	
             
	
            2.1
 	
            “Account”
 	
            1
 
	
             
	
            2.2
 	
            “Administrator”
 	
            1
 
	
             
	
            2.3
 	
            “Affiliate”
 	
            1
 
	
             
	
            2.4
 	
            “Beneficiary”
 	
            1
 
	
             
	
            2.5
 	
            “Code”
 	
            1
 
	
             
	
            2.6
 	
            “Company”
 	
            2
 
	
             
	
            2.7
 	
            “Eligible Employee”
 	
            2
 
	
             
	
            2.8
 	
            “ERISA”
 	
            2
 
	
             
	
            2.9
 	
            “401(k) Plan”
 	
            2
 
	
             
	
            2.10
 	
            “Measuring Investment”
 	
            2
 
	
             
	
            2.11
 	
            “Participant”
 	
            2
 
	
             
	
            2.12
 	
            “Plan”
 	
            2
 
	
             
	
            2.13
 	
            “Separation from Service”
 	
            2
 
	
             
	
            2.14
 	
            “Special Discretionary Contribution”
 	
            3
 
	
             
	
            2.15
 	
            “Special Discretionary Credit”
 	
            3
 
	
            ARTICLE 3.
 	
            PARTICIPATION.
 	
            3
 
	 
	
             
	
            3.1
 	
            Participation.
 	
            3
 
	
             
	
            3.2
 	
            Duration of participation.
 	
            3
 
	
            ARTICLE 4.
 	
            ADJUSTMENTS TO A PARTICIPANT'S ACCOUNT
 	
            3
 
	 
	
             
	
            4.1
 	
            Special Discretionary Credit.
 	
            3
 
	
             
	
            4.2
 	
            Adjustments for Measuring Investments.
 	
            3
 
	
             
	
            4.3
 	
            Account statements.
 	
            3
 
	
            ARTICLE 5.
 	
            VESTING
 	
            4
 
	 
	
            ARTICLE 6.
 	
            PAYMENT OF BENEFITS
 	
            4
 
	 
	
             
	
            6.1
 	
            No in-service benefit payments.
 	
            4
 
	
             
	
            6.2
 	
            Separation from Service for reasons other than death.
 	
            4
 
	
             
	
            6.3
 	
            Distribution after a Participant’s death.
 	
            4
 
	
             
	
            6.4
 	
            Key employees.
 	
            4
 
				

 

-i-

 

 

 

	
            ARTICLE 7.
 	
            NATURE OF CLAIM FOR BENEFIT PAYMENTS
 	
            4
 
	 
	
             
	
            7.1
 	
            Obligation of the Company.
 	
            4
 
	
             
	
            7.2
 	
            Property of the Company.
 	
            5
 
	
             
	
            7.3
 	
            Establishment of grantor trust.
 	
            5
 
	
             
	
            7.4
 	
            No claim for specific assets.
 	
            5
 
	
            ARTICLE 8.
 	
            ADMINISTRATION
 	
            5
 
	 
	
             
	
            8.1
 	
            Powers of the Administrator.
 	
            5
 
	
             
	
            8.2
 	
            Interpretations to be final.
 	
            5
 
	
             
	
            8.3
 	
            Indemnification.
 	
            6
 
	
             
	
            8.4
 	
            Right to suspend benefits and correct errors.
 	
            6
 
	
            ARTICLE 9.
 	
            AMENDMENT OR TERMINATION OF PLAN.
 	
            6
 
	 
	
            ARTICLE 10.
 	
            MISCELLANEOUS.
 	
            6
 
	 
	
             
	
            10.1
 	
            No assignment or alienation.
 	
            6
 
	
             
	
            10.2
 	
            Limitation of rights.
 	
            6
 
	
             
	
            10.3
 	
            Receipt and release.
 	
            7
 
	
             
	
            10.4
 	
            Payments to minors, etc.
 	
            7
 
	
             
	
            10.5
 	
            Tax withholding.
 	
            7
 
	
             
	
            10.6
 	
            Participants' periods of military service.
 	
            7
 
	
             
	
            10.7
 	
            No employment rights.
 	
            7
 
	
             
	
            10.8
 	
            Governing law.
 	
            7
 
	
             
	
            10.9
 	
            Severability.
 	
            7
 
	
             
	
            10.10
 	
            Headings and subheadings.
 	
            8
 
				

 

 

-ii-

 

 

	
            ARTICLE 1. 
  	
            INTRODUCTION
 

1.1        Effect of Plan.  This document sets forth the provisions of the Boston Scientific Corporation Excess Benefit Plan, effective June 29, 2005.

1.2        Purpose of Plan.  The purpose of this Plan is to provide benefits supplementing the Special Discretionary Contribution to the 401(k) Plan which are limited by reason of section 415(c)(1) of the Code.  

1.3        Status.  The Plan is intended to be an "excess benefit plan" within the meaning of section 3(36) of ERISA and a nonqualified deferred compensation plan within the meaning of section 409A of the Code, and shall be administered in a manner consistent with that intent.

	
            ARTICLE 2.  
 	
            DEFINITIONS
 

Wherever used herein, the following terms have the following meanings:

2.1        “Account” means the account established on its books by the Company for a Participant reflecting the Company’s obligation to pay the Participant the Special Discretionary Credit as provided under this Plan.

2.2        “Administrator” means the Company or such other person or committee as may be selected from time to time by the Company.

2.3        “Affiliate” means (a) the Company, (b) any corporation that is a member of a controlled group of corporations (as defined in Code section 414(b)) of which the Company is also a member, (c) any trade or business, whether or not incorporated, that is under common control (as defined in Code section 414(c)) with the Company, (d) any trade or business that is a member of an affiliated service group (as defined in Code section 414(m)) of which the Company is also a member, or (e) to the extent required by Regulations issued under Code section 414(o), any other organization; provided, that the term “Affiliate” shall not include any corporation or unincorporated trade or business prior to the date on which such corporation, trade or business satisfies the affiliation or
control tests of, (b), (c), (d) or (e) above.  In identifying any “Affiliate” for purposes of the Code section 415 limits, the definitions in Code sections 414(b) and (c) shall be modified as provided in Code section 415(h).

2.4        “Beneficiary” means the person entitled to receive benefits under this Plan upon the death of the Participant, and shall at any point in time be identical to the beneficiary entitled to receive benefits under the 401(k) Plan upon the death of the Participant.  

2.5        “Code” means the Internal Revenue Code of 1986, as amended from time to time.  Reference to any section of the Code includes a reference to regulations issued by the 

 

 

 

Department of Treasury and notices and other releases issued by the Internal Revenue Service which interpret or implement such Code section. 

2.6        “Company” means Boston Scientific Corporation.

2.7        “Eligible Employee” means any employee or former employee of the Company or any Affiliate who is eligible to share in the Special Discretionary Contribution to the 401(k) Plan pursuant to the terms of the 401(k) Plan, and whose share of the Special Discretionary Contribution to the 401(k) Plan is limited due to section 415(c)(1) of the Code.

2.8        “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time.  Reference to any section or subsection of ERISA includes reference to any comparable or succeeding provisions of any legislation which amends, supplements, or replaces such section or subsection, and also includes reference to any regulation issued pursuant to or with respect to such section or subsection. 

2.9        “401(k) Plan” means the Boston Scientific Corporation 401(k) Retirement Savings Plan, as amended from time to time, which is a profit-sharing plan maintained by the Company and is intended to be qualified under section 401(a) of the Code, as from time to time in effect.

2.10      “Measuring Investment” means the investment or investments selected from time to time by the Administrator to measure the value of Participants’ Accounts.  The Administrator shall provide Measuring Investments that replicate, to the extent it deems practicable in its sole discretion, the investment options made available from time to time to participants under the 401(k) Plan, provided, however, that the Administrator shall be under no obligation to provide a Measuring Investment with respect to Company stock.  The Administrator may, in its sole discretion, add or eliminate Measuring Investments at any time and for any reason.

2.11      “Participant” means any Eligible Employee who participates in the Plan in accordance with Article 3.

2.12      “Plan” means the Boston Scientific Corporation Excess Benefit Plan, as set forth herein and all subsequent amendments hereto.

2.13      “Separation from Service” means, with respect to any Participant, termination of his or her employment with the Company and any Affiliate for a reason other than death, provided that such termination of employment is treated, for purposes of the 401(k) Plan, as a severance from employment which entitles such Participant to a distribution of his or account balance pursuant to Article 8 thereunder, and further provided that the termination of employment qualifies as a separation from service under section 409A of the Code and any regulations issued thereunder.

 

-2-

 

 

2.14      “Special Discretionary Contribution” means the discretionary contribution to the 401(k) Plan described in section 3.14 thereunder.

2.15      “Special Discretionary Credit” means, for any participant in the 401(k) Plan, an amount equal to the excess of (i) over (ii), where

	
            (i) 
 	
            is the portion of the Special Discretionary Contribution to the 401(k) Plan which would have been allocated to the Participant's account under the 401(k) Plan if such allocation had been made without regard to the limitation of section 415(c)(1) of the Code; and
 
	
            (ii) 
 	
            is the amount of the Special Discretionary Contribution to the 401(k) Plan which is actually allocated to the Participant's account thereunder.
 

	
            ARTICLE 3.  
 	
            PARTICIPATION.
 

3.1        Participation.  An Eligible Employee will become a Participant in this Plan as of the date on which the Company makes the Special Discretionary Contribution to the 401(k) Plan.

3.2        Duration of participation.  A Participant will continue as such so long as an Account is maintained for his or her benefit.  

	
            ARTICLE 4.  
 	
            ADJUSTMENTS TO A PARTICIPANT'S ACCOUNT
 

4.1        Special Discretionary Credit.  As of the date on which the Company makes the Special Discretionary Contribution to the 401(k) Plan, the Administrator shall credit a Special Discretionary Credit to each Eligible Employee's Account under this Plan.

4.2        Adjustments for Measuring Investments.  From time to time, the Administrator will adjust each Participant's Account to reflect investment returns or losses of a Participant’s Measuring Investment(s).  In accordance with rules and procedures established by the Administrator, the Administrator will permit Participants to select the Measuring Investment(s) for specified portions of their respective Accounts from among the available Measuring Investments.  Absent such an election, the Account will be adjusted in accordance with such Measuring Investment(s) as may be selected from time to time by the Administrator for this purpose.  

4.3        Account statements.  At least annually, the Administrator will provide each Participant with a statement showing the notional balance of the Participant’s Account. 

 

-3-

 

 

 

	
            ARTICLE 5.  
 	
            VESTING
 

At any point in time, a Participant shall have a vested and nonforfeitable right to the same percentage of his or her Account balance under this Plan as the Participant has to his or her Discretionary Contribution Account under the 401(k) Plan.  

	
            ARTICLE 6.  
 	
            PAYMENT OF BENEFITS
 

6.1        No in-service benefit payments.  A Participant will not be permitted to receive payment of his or her benefit under this Plan prior to his or her Separation from Service.

6.2        Separation from Service for reasons other than death.  Following a Participant’s Separation from Service for any reason other than death, the Participant will receive an amount equal to the vested portion of his or her Account in cash in a single lump sum.  Except as provided in Section 6.4 of the Plan, distribution will be made within 90 days of the Participant’s Separation from Service.  If an Eligible Employee’s termination of employment occurs before the Eligible Employee becomes a Participant under the Plan, the Eligible Employee will be treated as a Participant who has had a Separation from Service and the amount of the Participant’s Special Discretionary Credit will be paid, subject to Section 6.4, in cash in a single lump sum to the Participant as soon as practicable after the Special
Discretionary Credit is credited to the Participant’s Account.

6.3        Distribution after a Participant’s death.  Upon the death of the Participant, an amount equal to the balance of his or her Account will be paid in cash in a single lump sum to his or her Beneficiary within 90 days after the Administrator receives notice of the Participant's death.  If an Eligible Employee dies before becoming a Participant, the amount of the Participant’s Special Discretionary Credit will be paid in cash in a single lump sum to the Participant’s Beneficiary as soon as practicable after the Special Discretionary Credit is credited to the Participant’s Account.

6.4        Key employees.  Notwithstanding anything in this Plan to the contrary, any distribution under Section 6.2 to a “key employee”, as defined in section 416(i) of the Code without regard to subsection 416(i)(5) of the Code, will be made no earlier than the date which is 6 months after the key employee’s Separation from Service.  

	
            ARTICLE 7.  
 	
            NATURE OF CLAIM FOR BENEFIT PAYMENTS
 

7.1        Obligation of the Company.  The Company will establish on its books a liability with respect to its obligations for benefits payable under the Plan to the Participants and their Beneficiaries.

 

-4-

 

 

7.2        Property of the Company.  The Plan is neither funded nor intended to qualify for special tax benefits under the Code.  Nothing in the Plan shall be deemed to require the setting aside of any assets, in trust or otherwise, for the payment of benefits under the Plan.  A Participant's or Beneficiary's rights to benefits under the Plan shall be no greater than the rights of a general, unsecured creditor of the Company.  

7.3        Establishment of grantor trust.  The Company shall not be required to set aside or segregate any assets of any kind to meet its obligations hereunder.  The Company may, however, establish a trust of which the Company is treated as the owner under Subpart E of Subchapter J, Chapter 1 of the Code (known as a "grantor trust") and may deposit funds with the trustee of the grantor trust sufficient to satisfy the benefits provided under the Plan.

7.4        No claim for specific assets.  Nothing in the Plan will be construed to give any Participant or Beneficiary rights to any specific assets of the Company. 

	
            ARTICLE 8.  
 	
            ADMINISTRATION
 

8.1        Powers of the Administrator.  The Administrator will have full discretionary power and authority to administer the Plan in all of its details.  For this purpose the Administrator's powers will include, but will not be limited to, the following discretionary authority, in addition to all powers provided by this Plan: 

(a)          to make and enforce such rules and regulations as the Administrator deems necessary or proper for the efficient administration of the Plan, or as required to comply with applicable law;

	
            (b)
 	
            to interpret the Plan;
 

(c)           to decide all questions concerning the Plan and the eligibility of any person to participate in the Plan;

(d)          to compute the amounts to be distributed to any Participant, former Participant, or Beneficiary in accordance with the provisions of the Plan, and to determine the person or persons to whom such amounts will be distributed;

	
            (e)
 	
            to authorize the payment of distributions; and
 	
             

	
            (f)
 	
            to allocate or delegate its powers to another person.
 

8.2        Interpretations to be final.  Any interpretation of the Plan or other determination with respect to the Plan by the Administrator shall be final and conclusive on all persons in the 

 

-5-

 

 

absence of clear and convincing evidence that such interpretation or determination was made arbitrarily and capriciously.

8.3        Indemnification.  The Company agrees to indemnify and hold harmless any employee or former employee acting as the Administrator, any employee or former employee to whom any of the Administrator’s responsibilities have been allocated or delegated, and any employee or former employee who has been asked to assist the Administrator in any way (the “indemnified person”) against any liability (including, without limitation, payment of attorney's fees) which the indemnified person may incur as a result of the discharge of his or her duties and responsibilities in good faith under the Plan.

8.4        Right to suspend benefits and correct errors.  The Administrator may delay any payment until satisfied as to the correctness of the payment or the person to receive the payment or to allow filing in any court of competent jurisdiction of a suit in such form as the Administrator considers appropriate for a legal determination of the benefits to be paid and the persons to receive them.  The Administrator specifically reserves the right to correct errors of every sort, and each Participant hereby agrees, on his or her own behalf and on behalf of any Beneficiary, to any method of error correction as the Administrator shall specify.  The Administrator shall be authorized to recover any payment made in error.  

	
            ARTICLE 9.  
 	
            AMENDMENT OR TERMINATION OF PLAN.
 

The Company hopes and expects to continue the Plan in effect, but it reserves the right to amend the Plan in any respect at any time (such amendment to take effect retroactively if the Company so provides) and to terminate the Plan.  Any amendment or termination shall be stated in an instrument in writing, and signed by a duly authorized representative of the Company.  In the event of an amendment or termination of the Plan, a Participant’s benefits shall not be less than the amount credited to the Participant’s Account immediately prior to such amendment or termination.

	
            ARTICLE 10.  
 	
            MISCELLANEOUS.
 

10.1      No assignment or alienation.  The rights of any person to payments or benefits under the Plan shall not be assignable, either by voluntary or involuntary assignment, including without limitation bankruptcy, garnishment, attachment, levy or any other legal process, except to such extent as may be required by law.  

10.2      Limitation of rights.  Neither the establishment of the Plan, nor any amendment thereof, nor the payment of any benefits will be construed as giving any individual any legal or equitable right against the Company or the Administrator or the trustee of any trust established 

 

-6-

 

 

under Section 7.3.  In no event will the Plan be deemed to constitute a contract between any individual and the Company or the Administrator or any such trustee.  

10.3      Receipt and release.  Any payment of a benefit under the Plan to any Participant or Beneficiary shall be in full satisfaction of all claims with respect to such benefit under the Plan against the Company, the Administrator, and the trustee of any trust established under Section 7.3.

10.4      Payments to minors, etc.  Any benefit payable to or for the benefit of a minor, an incompetent person or other person incapable of providing a valid receipt shall be deemed paid when paid to such person’s guardian or to the party providing or reasonably appearing to provide for the care of such person, and such payment shall fully discharge the Administrator, the Company and all other parties with respect thereto.  

10.5      Tax withholding.  Notwithstanding any provision of the Plan to the contrary, all payments under the plan shall be subject to reduction for applicable income tax withholding and other legally or contractually required withholdings.  To the extent amounts credited under the Plan are includible in "wages" for purposes of Chapter 21 of the Code, or are otherwise includible in taxable income, prior to distribution the Company may deduct the required withholding with respect to such wages or income from compensation currently payable to the Participant or the Administrator may reduce the Participant's Account hereunder or require the Participant to make other arrangements satisfactory to the Administrator for the satisfaction of the Company's withholding obligations.  

10.6      Participants' periods of military service.  Notwithstanding any provision of the Plan to the contrary, contributions, benefits and service credit with respect to qualified military service will be provided in accordance with Code section 414(u).

10.7      No employment rights.  Nothing in this Plan shall be deemed to give any person a right to remain in the employ of the Company or any Affiliate, or affect the right of the Company or any Affiliate to terminate such person’s employment with or without cause.  This Plan shall not be deemed to be consideration for, or an inducement for the performance of, services by any individual.

10.8      Governing law.  The Plan will be construed, administered, and governed under the laws of the Commonwealth of Massachusetts, to the extent not preempted by federal law.

10.9      Severability.  If any provision of the Plan is held by a court of competent jurisdiction to be invalid or unenforceable, the remaining provisions shall continue to be fully effective.

 

-7-

 

 

10.10    Headings and subheadings.  Headings and subheadings are inserted for convenience only and are not to be considered in the construction of the provisions of the Plan.

* * * * *

 

-8-

IN WITNESS WHEREOF, the Company has caused this Plan to be executed by its duly authorized representative this ____ day of __________________,   2005.

BOSTON SCIENTIFIC CORPORATION

	
            By:
 	
            ________________________________
 
	
            Title:
 	
            ________________________________
 
	
            Date:
 	
            ________________________________
 

 

 

 

 

 

-9-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}]]