AMENDMENT TO PURCHASE AGREEMENT
EXHIBIT
10.3
AMENDMENT
TO PURCHASE AGREEMENT
THIS
AMENDMENT TO PURCHASE AGREEMENT (this "Amendment"), dated as of April
21 ,2006,
between GUIDANT CORPORATION, an Indiana corporation ("Guidant"), and XXXXXX
LABORATORIES, an Illinois corporation ("Abbott").
WHEREAS,
Guidant and Abbott are parties to that certain Purchase Agreement dated as
of
the date hereof, pursuant to which Abbott is acquiring certain assets and
businesses and assuming certain liabilities of Guidant (the "Agreement"); and
WHEREAS,
Guidant and Abbott desire to amend the Agreement as provided in this Amendment
in accordance with Section 11.07 of the Agreement.
NOW,
THEREFORE, in consideration of the foregoing and the promises and mutual
agreements contained in this Amendment, and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged,
and
intending to be legally bound, the parties hereto agree as follows:
SECTION
1. Certain
Definitions.
Notwithstanding anything to the contrary in the Agreement, the parties agree
and
acknowledge that (a) in Section 1.01 of the Agreement the definitions of
"License and Technology Transfer Agreement" and "Supply Agreements" are hereby
deleted, and (b) all other references to "Supply Agreements" in the Agreement
mean the provisions of Section 5.07 of the Transaction Agreement and all other
references to "License and Technology Agreement" in the Agreement mean the
provisions of Section 5.08 of the Transaction Agreement.
SECTION
2.
Intercompany
Receivables and Payables.
For the
avoidance of doubt, the parties hereby agree and acknowledge that (a)
notwithstanding Section 2.02(a)(ix), Section 2.02(a)(xii) and 2.02(c)(ii),
the
Purchased Assets shall include intercompany receivables only to the extent
such
intercompany receivables are between Transferred Subsidiaries, and (b)
notwithstanding Section 2.03(b)(vi), the Excluded Liabilities shall not include
intercompany payables only to the extent such intercompany payables are between
Transferred Subsidiaries.
SECTION3.
Cash
and Indebtedness.
Notwithstanding anything to the contrary in the Agreement, the parties agree
and
acknowledge that (a) Assumed Liabilities shall include the indebtedness of
Guidant International Trading (Shanghai) Co. Ltd. as of the Deferred Local
Closing equal to (i) money borrowed under a Citibank credit line in the amount
of 1,200,000.00 CNY, plus (ii) accrued interest as of the date of the Deferred
Local Closing (the "Outstanding China Borrowings"), and (b) the Assets shall
include an amount of cash of Guidant International Trading (Shanghai) Co. Ltd.
as of the Deferred Local Closing equal to the Outstanding China Borrowings.
SECTION
4. Receipts
and Local Payments.
Notwithstanding anything in the Agreement to the contrary, the parties hereby
agree that the receipt to be delivered by Guidant pursuant to Section 2.07(d)
shall exclude: (a) that portion of the Initial Purchase Price attributable
to
Austria, India, Norway and Thailand (the "Local Cash Consideration") which
shall
be paid locally to the respective Asset Sellers located in such countries by
wire transfer in immediately available funds to such Asset Sellers on or prior
to two Business Days after the Closing, and each such Asset
Seller
shall deliver a receipt
for the Local Cash Consideration to the relevant Asset Purchaser when such
Asset
Seller receives the Local Cash consideration in its bank account; (b) the
portion of the Initial Purchase Price allocated to a Deferred Local Closing
(the
"Deferred Cash Consideration") which shall be paid at the time of such Deferred
Local Closing, and Guidant or the applicable Asset Seller(s) shall deliver
a
receipt for the Deferred Cash Consideration to the relevant Asset Purchaser
when
the Deferred Cash Consideration is received; and (c) the portion of the Initial
Purchase Price set forth in Schedule 2.02(e), and Guidant shall deliver a
separate receipt for such portion to the applicable IP Purchaser.
SECTION
5. Exchange
Rate.
Each of
the parties agrees and acknowledges that: (a) for the Local Cash Consideration
allocated to India and Thailand, the exchange rate shall be determined as set
forth in Section 11.15; and (b) for the Local Cash Consideration allocated
to
Austria and Norway, the exchange rate shall be approximately the exchange rates
between the Dollar and the Euro or the Norwegian Krone, as the case may be,
reported on the Bloomberg screen at 7:00 am EDT on the date of the Closing.
SECTION
6. Intellectual
Property Transfer Agreement.
Notwithstanding anything to the contrary in Section 2.02(e), Guidant Luxembourg
S.a.r.1. shall be an IP Seller and the Intellectual Property Transfer Agreement
shall be executed at the Closing.
SECTION
7. Closing.
For the
avoidance of doubt, the parties agree and acknowledge that the Closing shall
be
effective as of the opening of business in each country on April 21, 2006.
SECTION
8. Ratification
of Agreement.
Except
as expressly provided in this Amendment, all of the terms, covenants, and other
provisions of the Agreement are hereby ratified and confirmed and shall continue
to be in full force and effect in accordance with their respective terms. From
and after the date hereof, all references to the Agreement shall refer to the
Agreement as amended by this Amendment. Capitalized terms used but not defined
in this Amendment shall have the meanings assigned to them in the Agreement.
SECTION
9. Governing
Law.
This
Amendment shall be governed by, and construed in accordance with, the laws
of
the State of New York. All Actions arising out of or relating to this Amendment
shall be heard and determined exclusively in any New York federal court sitting
in the Borough of Manhattan of The City of New York; provided, however, that
if
such federal court does not have jurisdiction over such Action, such Action
shall be heard and determined exclusively in any New York
state court sitting in the Borough of Manhattan of The City of New York.
SECTION
10. Counterparts.
This
Amendment may be executed and delivered (including by facsimile
transmission) in one or more counterparts, and by the different parties hereto
in separate counterparts, each of which when executed shall be deemed to be
an
original, but all of which taken together shall constitute one aid the same
agreement.
[signature
page follows]
IN
WITNESS WHEREOF, Guidant and Abbott have caused this Amendment to be executed
as
of the date first written above by their respective officers thereunto duly
authorized.
GUIDANT CORPORATION | ||
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By: | /s/ | |
Name: Xxxxxxx X. Xxxx |
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Title: Vice President and General Counsel |
XXXXXX LABORATORIES | ||
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By: | /s/ | |
Name: Xxxxxx X. Xxxxxxx |
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Title: Executive Vice President, Finance and Chief Financial Officer |