Document:

Exhibit 10.3

 

SECOND AMENDMENT, dated as of June 13,
2008 (this “Amendment”), to the CREDIT AGREEMENT dated as of May 11,
2007, as amended as of March 3, 2008 (as further amended, supplemented, or
otherwise modified from time to time, the “Credit Agreement”), among
AGILENT TECHNOLOGIES, INC. (the “Company”), a Delaware corporation, the
LENDERS party thereto and JPMORGAN CHASE BANK, N.A., as Administrative Agent.

 

WHEREAS, the Lenders have agreed to extend credit to the Company under
the Credit Agreement on the terms and subject to the conditions set forth
therein; and

 

WHEREAS, the
Company has requested that the Lenders amend certain provisions of the Credit
Agreement and the Lenders whose signatures appear below, constituting at least
the Required Lenders, are willing to amend the Credit Agreement on the terms
and subject to the conditions set forth herein;

 

NOW,
THEREFORE, in consideration of the mutual agreements herein contained and other
good and valuable consideration, the sufficiency and receipt of which are
hereby acknowledged, the parties hereto hereby agree as follows:

 

SECTION 1.  Defined Terms.  Capitalized terms used but not otherwise
defined herein (including in the recital hereto) have the meanings assigned to
them in the Credit Agreement.

 

SECTION 2.  Amendment of Certain Definitions: Section 1.01
of the Credit Agreement is hereby amended:

 

(a)  by
inserting the following definition of “Acceptable Replacement Facility”:

 

“Acceptable Replacement Facility” means a sale and repurchase
transaction generally comparable to that provided for in the World Trade Master
Repurchase Agreement (a) under which the Company or a Subsidiary will
receive net proceeds in an amount at least equal to the principal or face
amount payable as a result of the exercise of the “put” under the World Trade
Master Repurchase Agreement, (b) the obligations of the Company and the
Subsidiaries under which constitute Repurchase Obligations and (c)  under the terms
of which none of the Company or any Subsidiary can be required (other than as a
result of a breach, an event of default, a change in law or a similar event) to
repurchase the securities or other assets that are the subject of such
Repurchase Obligations prior to November 1, 2010.

 

 

(b)  by
inserting the following definition of “Replacement Facility Requirement”:

 

“Replacement Facility Requirement” means the requirement that (a) definitive
principal documentation establishing an Acceptable Replacement Facility shall
have been fully negotiated by the Company, one or more Subsidiaries and one or
more counterparties and shall have been executed by each of such persons and
deposited under an escrow or similar arrangement that enables the Company or a
Subsidiary, without the consent of any other Person, to cause such documentation
to become effective on or prior to July 16, 2008 (or any later date to which the repurchase date under the World Trade Master
Repurchase Agreement shall have been extended as provided in clause
(iii) of the final sentence of Article VII, but in any event
prior to November 16, 2008), (b) the
Administrative Agent shall have received a certificate of a Financial Officer
attaching copies of such definitive documentation and (c) the Company
shall have delivered to the Administrative Agent a certificate of a Financial
Officer confirming that all conditions to the closing of the transactions
provided for in such documentation (other than the issuance of a credit rating,
if such certificate shall state that such rating is expected to be issued by
such closing) have been satisfied or will be satisfied on or prior to July 16,
2008 (or any later date to which the repurchase date under the
World Trade Master Repurchase Agreement shall have been
extended as provided in clause (iii) of the final sentence of Article VII,
but in any event prior to November 16, 2008),
and that there is no impediment to the closing of such transactions on or prior
to July 16, 2008 (or such later date).

 

(c)  by
changing the definition of “Repurchase Obligations” therein to read as follows:

 

“Repurchase
Obligations” means, at any time, the sum of (a) the World Trade
Indebtedness at such time and (b) the aggregate amount of all other accrued,
absolute or contingent repurchase obligations (including repurchase obligations
that become due on a future date) of the Company and the Subsidiaries at such
time, in each case to the extent such amounts would be shown as liabilities on
a consolidated balance sheet of the Company as of such time prepared in
accordance with GAAP and in a manner consistent with the financial statements
referred to in Section 3.05.

 

(d)  by
changing the definition of “Repurchase Obligation Restricted Cash” therein to
read as follows:

 

“Repurchase Obligation
Restricted Cash” means, at any time, the aggregate amount of cash and cash
equivalents and the current market value of short-term investment securities
(such cash and cash equivalents and investment securities being collectively
called “Specified Assets”) held at 

 

2

 

such time by one or more Subsidiaries to
the extent such amount would be shown as restricted cash on a consolidated
balance sheet of the Company as of such time prepared in accordance with GAAP
and in a manner consistent with the financial statements referred to in Section 3.05;
provided that any particular Specified Assets
shall be counted as Repurchase Obligation Restricted Cash only to the extent
that (a) (i) the Subsidiary holding such Specified
Assets shall have issued securities that are subject to a Repurchase
Obligation, (ii) the amount of such Specified Assets shall not exceed the
amount of such Repurchase Obligation and (iii) under the terms of the
Repurchase Obligation none of the Company or any Subsidiary can be required
(other than as a result of a breach, an event of default, a change in law or a
similar event) to repurchase the securities or other assets that are the
subject of such Repurchase Obligation prior to November 1, 2010 (it being agreed, however, that the World Trade Restricted Cash may at
all times constitute Repurchase Obligation Restricted Cash notwithstanding that
the requirements of this clause (iii) are not satisfied with respect
thereto), (b) such Subsidiary is not engaged in
any business or business activities other than the holding of such Specified
Assets, of investments in its own subsidiaries and of dividends, distributions
or other payments received from such subsidiaries and the incurrence of
Indebtedness referred to in clause (c) below, (c) such Subsidiary is
not an obligor (including under any Guarantee or similar arrangement) with
respect to any Indebtedness other than (i) such Repurchase Obligation and (ii) Indebtedness
owed to its own subsidiaries, the holders of which have no recourse to, and
have expressly agreed to assert no claims against, any Specified Assets
constituting Repurchase Obligation Restricted Cash, (d) such Specified
Assets are held in an account controlled by the holder or holders of such
Repurchase Obligation or its or their representative and are subject to
contractual restrictions prohibiting the transfer or disposition thereof
without the consent of the holder or holders of such Repurchase Obligation or
its or their representative, other than to satisfy such Repurchase Obligation
and (e) such Subsidiary and the persons directly or indirectly owning its
Equity Interests are not subject to any legal or contractual restrictions
(other than any restriction referred to in the preceding clause (d)) that would
prevent such Specified Assets from being remitted through a dividend or series of
dividends to the Company.

 

SECTION 3.  Amendment of Article VII. The last
sentence of Article VII of the Credit Agreement is amended to read as
follows:

 

Notwithstanding anything in paragraph (g) of this Article VII,  (i) the exercise of the “put” under the
World Trade Master Repurchase Agreement will not constitute an Event of Default
or a Default prior to July 11, 2008 (at which time an Event of Default
shall be deemed to have occurred except as otherwise provided in either of the
following clauses (ii) and (iii)); (ii) if, on or prior to July 11,
2008 (or the date three Business Days prior to any later date to which the repurchase date under the World Trade Master 

 

3

 

Repurchase Agreement shall have been
extended as provided in the following clause (iii), but in any event by
the date three Business Days prior to November 16,
2008), the Company shall have satisfied the Replacement Facility
Requirement, the exercise of the “put” under the World Trade Master Repurchase
Agreement will not constitute an Event of Default or a Default unless and until
the Company or a Subsidiary shall be required to repurchase the securities or
other assets that are the subject of the “put” under the World Trade Master
Repurchase Agreement (at which time an Event of Default shall be deemed to have
occurred unless such repurchase obligation shall be satisfied in full with
proceeds received under an Acceptable Replacement Facility); and (iii) if,
on or prior to July 11, 2008, the repurchase date under the World Trade
Master Repurchase Agreement shall have been extended beyond July 16, 2008
(or definitive agreements providing for such extension have been executed), the
exercise of the “put” under the World Trade Master Repurchase Agreement will
not constitute an Event of Default or a Default unless and until the earlier of
(A) the date on which the Company or a Subsidiary shall be required to
repurchase the securities or other assets that are subject of such put within a
period of fewer than three Business Days and (B) November 16,
2008 (at which earlier date an Event of Default shall be deemed to have
occurred).

 

SECTION 4.  Representations, Warranties and
Agreements.  The Company hereby
represents and warrants to and agrees with each Lender and the Administrative
Agent that:

 

(a)  The
representations and warranties set forth in Article III of the Credit
Agreement are true and correct in all material respects on and as of the Second
Amendment Effective Date (as defined below) and after giving effect to this
Amendment, with the same effect as if made on and as of such date, except to
the extent such representations and warranties expressly relate to an earlier
date, in which case they were true and correct as of such earlier date.

 

(b)  As
of the Second Amendment Effective Date, after giving effect to this Amendment,
no Default or Event of Default will have occurred and be continuing.

 

4

 

SECTION 5.  Effectiveness.  This Amendment shall become effective as of
the date (the “Second Amendment Effective Date”) on which the
Administrative Agent shall have received duly executed counterparts hereof
that, when taken together, bear the authorized signatures of the Company and
Lenders constituting at least the Required Lenders.

 

SECTION 6.  Credit Agreement.  Except as specifically stated herein, the
Credit Agreement shall continue in full force and effect in accordance with the
provisions thereof.  As used therein, the
terms “Agreement”, “herein”, “hereunder”, “hereto”, “hereof” and words of
similar import shall, unless the context otherwise requires, refer to the
Credit Agreement as modified hereby.

 

SECTION 7.  Applicable Law.  THIS AMENDMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

 

SECTION 8.  Counterparts.  This Amendment may be executed in
counterparts (and by different parties hereto on different counterparts), each
of which shall constitute an original but all of which, when taken together,
shall constitute a single instrument. Delivery of an executed counterpart of a
signature page of this Amendment by telecopy shall be effective as
delivery of a manually executed counterpart hereof.

 

SECTION 9.  Expenses.  The Company agrees to reimburse the
Administrative Agent for its reasonable out-of-pocket expenses in connection
with this Amendment, including the reasonable fees, charges and disbursements
of Cravath, Swaine & Moore LLP, counsel for the Administrative Agent,
as well as all other out-of-pocket expenses in connection with the Credit
Agreement that have not yet been reimbursed.

 

5

 

IN WITNESS
WHEREOF, the parties hereto have caused this Second Amendment to be duly
executed by their respective authorized officers as of the date first above
written.

 

 

	
   

  	
  AGILENT TECHNOLOGIES, INC.,

  
	
   

  	
   

  
	
   

  	
  by:

  
	
   

  	
   

  	
    /s/ Hilliard C. Terry, III

  
	
   

  	
   

  	
    Name:  Hilliard C.
  Terry, III 

  
	
   

  	
   

  	
    Title:  Vice
  President, Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK, N.A., 

  INDIVIDUALLY AND AS ADMINISTRATIVE 

  AGENT,

  
	
   

  	
   

  
	
   

  	
  by:

  
	
   

  	
   

  
	
   

  	
   

  	
    /s/ Ann B. Kerns

  
	
   

  	
   

  	
    Name:  Ann B. Kerns
  

  
	
   

  	
   

  	
    Title:  Vice
  President

  

 

6

 

To approve the Second Amendment to the AGILENT TECHNOLOGIES, INC. Credit
Agreement:

 

Name of Institution:

 

	
  CREDIT
  SUISSE, Cayman Islands Branch

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
    by:

  	
  /s/ Rianka
  Mohan

  	
   

  
	
   

  	
  Name:  Rianka Mohan

  	
   

  
	
   

  	
  Title:  Vice President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
    by:

  	
  /s/ Nupur
  Kumar

  	
   

  
	
   

  	
  Name:  Nupur Kumar

  	
   

  
	
   

  	
  Title:  Associate

  	
   

  

 

7

 

To approve the Second Amendment to the AGILENT TECHNOLOGIES, INC.
Credit Agreement:

 

Name of Institution:

 

	
  BANK OF
  AMERICA N.A.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
    by:
  

  	
  /s/ Fred L.
  Thorne

  	
   

  
	
   

  	
  Name:  Fred L. Thorne

  	
   

  
	
   

  	
  Title:  Managing Director

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
    by:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

8

 

To approve the Second Amendment to the AGILENT TECHNOLOGIES, INC.
Credit Agreement:

 

Name of Institution:

 

	
  CITIBANK,
  N.A.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
    by: 

  	
  /s/ James M.
  Walsh

  	
   

  
	
   

  	
  Name:  James M. Walsh

  	
   

  
	
   

  	
  Title:  Managing Director

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
    by:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

9

 

To approve the Second Amendment to the AGILENT TECHNOLOGIES, INC.
Credit Agreement:

 

Name of Institution:

 

	
  STANDARD
  CHARTERED BANK

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
    by:

  	
  /s/ Frieda
  Youlios

  	
   

  
	
   

  	
  Name:  Frieda Youlios

  	
   

  
	
   

  	
  Title:  Associate Director

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
    by:

  	
  /s/ Robert
  K. Reddington

  	
   

  
	
   

  	
  Name:  Robert K. Reddington

  	
   

  
	
   

  	
  Title:  AVP/Credit Documentation

  	
   

  
	
   

  	
  Credit Risk
  Control

  	
   

  
	
   

  	
  Standard
  Chartered Bank N.Y.

  	
   

  

 

10Exhibit 10.1

 

CONSULTING
AGREEMENT

 

Effective June 22,
2008 Michael M. Kitt, M.D. (“Consultant”) and Theravance, Inc., 901
Gateway Boulevard, South San Francisco CA 94080 (“Theravance” or the “Company”)
agree as follows:

 

1.                                       Services
and Payment. Consultant agrees to consult with and advise Theravance from
time to time, at Theravance’s request (“Services”) for up to 4 days per week
for the primary purpose of assisting Theravance with the preparation of the New
Drug Application for the Telavancin Hospital Acquired Pneumonia indication (the
“NDA”).  Services also will include
consulting and advisory assistance with the Company’s other development-stage
programs (e.g. Telavancin cSSSI, GI Prokinetic, PUMA and TD-1792) as required. As
full payment for the Services, Consultant will (i) receive a monthly
consulting fee of $25,480.00 and (ii) continue to vest in any (a) currently
outstanding options to purchase the Company’s Common Stock and (b) restricted
stock unit awards (RSUs) through the termination date of this Agreement in
accordance with the terms of such options and RSUs. Consultant shall also be
entitled to reimbursement for expenses for which Consultant has received prior
approval from Theravance within thirty (30) days of Consultant’s submission of
receipts thereof.

 

The parties agree that after the date the NDA is
submitted to the United States Food and Drug Administration (the “NDA
Submission Date”): (i) Consultant’s Service requirement hereunder will
fall to 5 hours per week at mutually agreeable times through the termination
date of this Agreement; (ii) Consultant’s monthly consulting fee will
cease; and (iii) Consultant will continue to vest in any (a) then
outstanding options to purchase the Company’s Common Stock and (b) RSUs
through the termination date of this Agreement in accordance with the terms of
such options and RSUs.

 

2.                                       Ownership
of Inventions.  Theravance shall own
all right, title and interest (including patent rights, copyrights, trade
secret rights, trademark rights and all other rights of any sort throughout the
world) relating to any and all inventions (whether or not patentable),
including without limitation, discoveries, compositions of matter,
pharmaceutical formulations, methods of use, methods of making, techniques,
processes, formulas, improvements, works of authorship, designations, designs,
know-how, ideas and information made or conceived or reduced to practice, in
whole or in part, by Consultant (solely or jointly with others) during the term
of this Agreement that arise out of or relate to the Services or any
Proprietary Information (as defined below) (collectively, “Inventions”).  Consultant will promptly disclose, provide
and assign all Inventions to Theravance. 
Consultant shall further assist Theravance, at Theravance’s expense, to
further evidence, record and perfect such assignments, and to perfect, obtain,
maintain, enforce, and defend any rights assigned throughout the world. Such
assistance may include, but is not limited to, execution of documents and
assistance or cooperation in legal proceedings. 
Consultant hereby irrevocably designates and appoints Theravance as his agent
and attorney-in-fact to act for and on Consultant’s behalf to execute and file
any document and to do all other lawfully permitted acts to further the
foregoing with the same legal force and effect as if

 

 

executed by Consultant.  When
requested by Theravance, Consultant will make available to Theravance all
notes, data and other information relating to any Invention.

 

3.                                       Proprietary
Information.  Consultant agrees that
all Inventions and other business, technical and financial information
concerning Theravance (including, without limitation, the identity of and
information relating to Theravance’s employees, vendors and service providers) that
Consultant develops, learns or obtains during the term of this Agreement or
while he is providing Services constitute “Proprietary Information.”  Consultant will hold in confidence and not
disclose or make available to third parties or make use of any Proprietary
Information except with the prior written consent of Theravance or to the
extent necessary in performing Services for Theravance.  However, Consultant shall not be obligated
under this paragraph with respect to information Consultant can document (i) is
or becomes readily publicly available without restriction through no fault of
Consultant, or (ii) that Consultant knew without restriction prior to its
disclosure by Theravance.  Upon
termination of this Agreement or as otherwise requested by Theravance,
Consultant will promptly return to Theravance all documents, materials and
copies containing or embodying Proprietary Information, except that Consultant
may keep a personal copy of (i) compensation records relating to the
Services and (ii) this Agreement.

 

4.                                       Solicitation.  As additional protection for Proprietary
Information, Consultant agrees that during the term of this Agreement and for
one year thereafter, Consultant will not encourage or solicit any employee of
or consultant to Theravance to leave Theravance for any reason.

 

5.                                       Term
and Termination.  This Agreement
shall become effective on the date hereof and remain in force until the earlier
of March 31, 2009 or when  terminated by either party.
Consultant may terminate this Agreement at any time, for any reason, by giving
Theravance 30 days advance written notice. 
Theravance may terminate this Agreement prior to March 31, 2009
only for cause, which for purposes hereof shall mean:  (i) the unauthorized use or disclosure
of the confidential information or trade secrets of the Company, (ii) conviction
of a felony under the laws of the United States or any state thereof, (iii) negligence,
(iv) a material breach of this Agreement; (v) failure to perform
lawful assigned services for ten days after receiving written notification from
the Company; or (vi) prior to the NDA Submission Date, providing services
to another company or entity on any basis that uses more than one business day
per week of Consultant’s time without the prior written consent of the Company.
All provisions of this Agreement and any remedies for breach of this Agreement
shall survive any termination or expiration.

 

6.                                       Relationship
of the Parties.  Notwithstanding any
provision hereof, for all purposes of this Agreement each party shall be and
act as an independent contractor and not as a partner, joint venturer, or agent
of the other and shall not bind nor attempt to bind the other to any
contract.  Consultant is an independent
contractor and is solely responsible for all taxes, withholdings, and other
statutory or contractual obligations of any sort, including, but not limited
to, Workers’ Compensation Insurance. Consultant recognizes and agrees that
Consultant has no

 

2

 

expectation of privacy
with respect to Theravance’s telecommunications, networking or information
processing systems (including, without limitation, computer files, email
messages and attachments, and voice messages) and that Consultant’s activity,
and any files or messages, on or using any of those systems may be monitored at
any time without notice.

 

7.                                       Assignment.  This Agreement and the Services performed
hereunder are personal to Consultant and Consultant shall not have the right or
ability to assign, transfer, or subcontract any obligations under this
Agreement without the written consent of Theravance.  Any attempt to do so shall be void.  Theravance shall be free to assign or
transfer this Agreement to a third party.

 

8.                                       No
Conflict.  Consultant represents and
warrants that (i) his performance hereunder will not breach any agreement
or obligation to keep in confidence proprietary information acquired by
Consultant in confidence or trust prior to or during Consultant’s engagement
with Theravance, and (ii) all work under this Agreement will be Consultant’s
original work and none of the Services or Inventions or any development, use,
production, distribution or exploitation thereof will infringe, misappropriate
or violate any intellectual property or other right of any person or
entity.  Consultant represents and
warrants that he has not entered into, and agrees that he will not enter into,
any agreement whether written or oral in conflict with this Agreement or with his
obligations as a consultant to Theravance.

 

9.                                       Company
Policies.  Consultant represents that
he has read the Theravance Insider Trading Policy provided herewith and the
Theravance Code of Business Conduct located at
http://ir.theravance.com/conduct.cfm, and agrees to abide by each such policy
during the term of this Agreement.

 

10.                                 Remedies.  Any breach of Section 2, 3, 4 or 8 will
cause irreparable harm to Theravance for which damages would not be an adequate
remedy, and, therefore, Theravance will be entitled to injunctive relief with
respect thereto in addition to any other remedies.  The failure of either party to enforce its
rights under this Agreement at any time for any period shall not be construed
as a waiver of such rights.

 

11.                                 Entire
Agreement.  This Agreement supersedes
all prior agreements between the parties and constitutes the entire agreement
between the parties as to the subject matter hereof.

 

12.                                 Notices.  All notices, requests and other
communications called for by this Agreement shall be deemed to have been given
if made in writing and mailed, postage prepaid, to the address of each party
set forth above, or to such other addresses as either party shall specify to
the other.

 

13.                                 Amendments.  No changes or modifications or waivers to
this Agreement will be effective unless in writing and signed by both parties.

 

3

 

14.                                 Severability.  In the event that any provision of this
Agreement shall be determined to be illegal or unenforceable, that provision
will be limited or eliminated to the minimum extent necessary so that this
Agreement shall otherwise remain in full force and effect and enforceable.

 

15.                                 Arbitration.  Subject to the exceptions set forth below,
Consultant understands and agrees that any disagreement regarding this
Agreement will be determined by submission to arbitration as provided by Section 1280
et  seq. of the California Code of Civil Procedure, and not by a
lawsuit or resort to court process proceedings. 
The only claims or disputes not covered by this paragraph are claims or
disputes related to issues affecting the validity, infringement or
enforceability of any trade secret or patent rights held or sought by
Theravance or which Theravance could otherwise seek; in which case such claims
or disputes shall not be subject to arbitration and will be resolved pursuant
to applicable law.

 

16.                                 Governing
Law.  This Agreement shall be
governed by and construed in accordance with the laws of the State of
California without regard to conflicts of law provisions thereof.  In any action or proceeding to enforce rights
under this Agreement, the prevailing party shall be entitled to recover costs
and attorneys fees.

 

 

	
  Consultant

  	
   

  	
  Theravance, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Michael Kitt

  	
   

  	
  By:

  	
  /s/ Rick E Winningham

  
	
   

  	
  (signature)

  	
   

  	
   

  	
  (signature)

  
	
   

  	
   

  	
  Name:

  	
  Rick E Winningham

  
	
   

  	
   

  	
  Title:

  	
  Chief Executive
  Officer

  
	
   

  	
   

  	
   

  
	
  Date: June 18,
  2008

  	
   

  	
  Date:  June 18, 2008

  
							

 

4

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