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Master Restructuring Agreement [Amendment No. 2]

 

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Title:

Master Restructuring Agreement [Amendment No. 2]

Entities:

Curis, Inc.; Fleet National Bank; Stryker Corporation; Creative Biomolecules, Inc.

Date:

2002

Size:

Preview shows 5KB of 20KB total

Price:

$36

ID:

#288361

 

 

► M&A ► Restructuring ► Misc. Restructuring Agreements
► Financial
► Biotech & Drugs ► Biological Products

 

 

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                           SECOND AMENDMENT TO MASTER

RESTRUCTURING AGREEMENT

This Second Amendment to Master Restructuring Agreement is made as of
October 1, 2002 by and between CURIS, INC., a Delaware corporation ("Curis"),
and STRYKER CORPORATION, a Michigan corporation ("Stryker").

WHEREAS, Curis, as the successor by merger to Creative Biomolecules, Inc.,
and Stryker are parties to that certain Master Restructuring Agreement dated as
of October 15, 1998 as amended by that certain First Amendment to Master
Restructuring Agreement dated as of November 2, 2001 (the "Agreement;"
capitalized terms used but not defined herein shall have the meaning provided
therefor in the Agreement) and that certain License and Sublicense Agreement
entered into as of October 31, 1996 (the "PDGF License and Sublicense");

WHEREAS, Curis and Stryker desire to amend and supplement the Agreement and
certain of the Related Agreements referred to therein and the PDGF License and
Sublicense in certain respects as more fully set forth herein;

NOW, THEREFORE, in consideration of the mutual promises and agreements set
forth herein and in the Agreement, the parties hereto agree as follows:

1. On the date hereof (the "Effective Date"), Stryker shall pay Curis the
sum of $14,000,000 by wire transfer to the account designated by Curis in
Exhibit A.

2. The provisions of Section 4.12(b) of the Agreement are hereby deleted
in their entirety.

3. The provisions of Section 4.13 (a) of the Agreement are hereby amended
to read in their entirety as follows:

{PAGE}

(a) Creative hereby agrees to pay to Stryker in U.S. dollars,
quarterly royalties (the "Creative Royalty Payments") equal to (i)
one-quarter of one percent (0.25%) of the first $500,000,000 of Net
Sales of Creative Royalty Bearing OP Products by Creative or any
Creative Third Party Seller or any other sublicensee of Creative or
Person to which Creative has assigned any of its rights under this
Agreement or the Creative License Agreement (all such Persons other
than Creative being referred to herein collectively as "Creative
Sublicensees") in any calendar year during the Royalty Period and (ii)
one-half of one percent (0.50%) of Net Sales of Creative Royalty
Bearing OP Products by Creative or any Creative Sublicensee in excess
of $500,000,000 in any calendar year during the Royalty Period. "Net
Sales" for purposes of this Section 4.13 shall mean revenue derived by
Creative or any Creative Sublicensee from the sale of Creative Royalty
Bearing OP Products, less discounts allowed, transportation charges,
insurance, credits for claims or allowances, returns, and taxes or
other governmental charges levied on or measured by such sales and
included in the billing price, whether absorbed by Creative, third
parties or their customers. For Creative Royalty Bearing OP Products
(collectively, the "OP Component") that are sold in combination with
another product, if both the OP Component and such other product have
established market prices, Net Sales shall be calculated by
multiplying Net Sales of the combination product by the fraction
A/(A+B) where A is the sales price of the OP Component in the
combination when sold separately and B is the sales price of the other
product in the combination when sold separately. If one or both of the
OP Component and the other product do not have an established market
price, Net Sales shall include only that portion of the sales price of
the combination product that is determined by good faith negotiation
between Stryker and Creative to represent the value of the OP
Component. In such negotiation, the parties shall take into account
the list price of either the OP Component or the other product, if
there be one, or of similar products, and the market share of the

 

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