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Title: |
Separation Agreement |
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Date: |
2002 |
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Preview shows 11KB of 88KB total |
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$56 |
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ID: |
#388284 |
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FEBRUARY 22, 2002
SEPARATION AGREEMENT
between
NESTLE S.A., ave. Nestle 55, CH-1800 Vevey, Switzerland
(hereinafter NESTLE)
and
ALCON, INC., Bosch 69, CH-6331 Hunenberg, Switzerland
(hereinafter ALCON)
Nestle and Alcon together hereinafter referred to as the PARTIES or each a
PARTY.
HOMBURGER
{PAGE}
TABLE OF CONTENTS
{Table}
{S} {C} {C}
1 DEFINITIONS................................................. 1
2 THE SEPARATION.............................................. 1
2.1 General................................................. 1
2.2 Pre-IPO Corporate Restructurings........................ 1
2.3 Pre-IPO Restructuring of Share Capital.................. 2
2.4 Share Certificates and Share Register................... 5
2.5 Registration Matters.................................... 5
2.6 Registration Statement.................................. 6
2.7 Financial Matters....................................... 7
3 CORPORATE GOVERNANCE OF THE ALCON GROUP..................... 7
3.1 General................................................. 7
3.2 Governance of the Alcon Group........................... 8
3.3 Board of Directors...................................... 8
3.4 Executive Management.................................... 9
3.5 Accounting and Reporting................................ 10
3.6 Dividend Resolutions.................................... 11
4 ALLOCATION OF LIABILITIES................................... 11
4.1 General................................................. 11
4.2 Product Liability....................................... 11
4.3 Environmental, Health & Safety Matters.................. 11
5 EMPLOYMENT MATTERS.......................................... 12
5.1 Employees............................................... 12
5.2 Pension Funds........................................... 13
5.3 Alcon Incentive Plan.................................... 13
6 FURTHER OBLIGATIONS OF THE PARTIES.......................... 13
6.1 Contracts of the Alcon Group............................ 13
6.2 Shared Sites............................................ 13
6.3 Services provided by Nestle to Alcon.................... 13
6.4 Insurance............................................... 14
6.5 Intellectual Property Rights............................ 14
6.6 Omitted Matters......................................... 14
6.7 Misdirected Funds....................................... 14
7 RESTRICTIVE COVENANTS....................................... 14
7.1 Covenant not to Compete................................. 14
7.2 Non-Interference and Non-Solicitation................... 15
7.3 Remedies................................................ 16
{/Table}
i
{PAGE}
{Table}
{S} {C} {C}
8 INDEMNITY................................................... 16
8.1 Scope................................................... 16
8.2 Third Party Claims...................................... 16
8.3 Direct Claims........................................... 17
8.4 Adjustment of Indemnifiable Losses...................... 17
8.5 No Third Party Beneficiaries............................ 18
8.6 Statute of Limitations.................................. 18
9 COSTS AND TAXES............................................. 18
9.1 Costs................................................... 18
9.2 Taxes................................................... 18
10 GENERAL PROVISIONS.......................................... 19
10.1 Effect on Third Parties................................ 19
10.2 Notices................................................ 20
10.3 Entire Agreement....................................... 20
10.4 Amendments and Waivers................................. 20
10.5 Severability; Good Faith............................... 20
10.6 Confidentiality........................................ 20
10.7 Public Announcements................................... 21
11 GOVERNING LAW AND DISPUTE RESOLUTION........................ 21
11.1 Governing Law.......................................... 21
11.2 Dispute Resolution..................................... 21
11.3 Arbitration............................................ 21
{/Table}
ii
{PAGE}
THIS SEPARATION AGREEMENT is made on February 22, 2002, between Nestle
S.A., a company organized under the laws of Switzerland with places of
incorporation in Cham and Vevey, and Alcon, Inc., a company organized under the
laws of Switzerland with place of incorporation in Hunenberg.
WHEREAS --:
A. The share capital of Alcon is CHF 60,000,000, divided into 300,000,000
fully paid registered shares with a par value of CHF 0.20 each. All shares of
Alcon are beneficially owned by Nestle, as set out in Exhibit 0.
B. On October 19, 2001, Nestle publicly announced its intention to effect
an initial public offering (IPO) of Alcon. Following the IPO, Nestle intends to
continue to hold a majority interest in the share capital and voting rights of
Alcon.
C. Nestle and Alcon intend to effect the IPO pursuant to the terms and
conditions set forth in this Agreement. This Agreement further contains the
principles for the corporate governance of Alcon and the principles governing
the business relations between Nestle and Alcon after the IPO.
NOW, THEREFORE, the Parties hereto agree as follows --:
1 DEFINITIONS
Capitalized terms used in this Agreement shall have the meaning specified
in Annex A.
2 THE SEPARATION
2.1 General
The terms and conditions of this Agreement shall govern the overall
relationship between Nestle and Alcon with respect to the following:
(a) the corporate restructuring of Alcon prior to the IPO;
(b) the refinancing of intercompany debt, and the termination or
continuation of other intercompany agreements with effect as of the IPO;
(c) the corporate governance of the Alcon Group after the IPO;
(d) rights and obligations of the Parties after the IPO.
It is understood and agreed by the Parties that the IPO of Alcon may be
cancelled by Nestle, acting in its sole discretion, at any time prior to pricing
of the Alcon shares. If the IPO is cancelled, the provisions set forth in
Section 2.2 and Section 2.3.1(a) shall continue to apply, while the remaining
provisions shall lapse or not take any force and effect.
Whenever this Agreement refers to a third party, in particular any
financial institutions engaged in the IPO process, it is understood and agreed
that such third party shall not be bound or obligated in any manner by the
provisions of this Agreement. The Parties will, however, use their best efforts
to procure that any such third party or parties shall take the steps outlined in
this Agreement, and the Parties will enter into appropriate arrangements with
such third party or parties to this effect.
2.2 Pre-IPO Corporate Restructurings
2.2.1 Germany
The capital structure of Alcon Pharma GmbH, Freiburg im Breisgau, Germany,
is set out in Exhibit 2.2.0.
All shares in Alcon Pharma GmbH which were held by Nestle Unternehmungen
Deutschland GmbH, Frankfurt am Main, Germany, have been transferred to Alcon at
a purchase price of EUR 46,400,000, payable in cash, with effective date January
1, 2002 (the EFFECTIVE DATE) and a value
1
{PAGE}
date of January 3, 2002. The share purchase was closed as of January 1, 2002.
The share purchase was made as per the deed attached hereto as Exhibit 2.2.1.
2.2.2 Belgium
The capital structure of S.A. Alcon-Couvreur N.V., Puurs, Belgium, is set
out in Exhibit 2.2.0.
The 77 shares in S.A. Alcon-Couvreur N.V. which were held by Nestle
Belgilux S.A., Brussels, Belgium, have been transferred to Alcon Pharmaceuticals
Ltd., Hunenberg, Switzerland at a purchase price of EUR 95,982.04, with
effective date November 30, 2001.
2.2.3 Thailand
The capital structure of Alcon Laboratories (Thailand) Ltd., Bangkok,
Thailand, is set out in Exhibit 2.2.0.
Nestle and Alcon have entered into appropriate agreements allowing for a
transfer of the economic risks and rewards of Alcon Laboratories (Thailand) Ltd.
from Nestle to Alcon.
2.2.4 Alcon Holdings, Inc.
The capital structure of Alcon Holdings, Inc., Wilmington DE, USA, is set
out in Exhibit 2.2.0.
The 40 class D preferred shares of Alcon Holdings, Inc. which were held by
Nestle have been transferred to Alcon at a purchase price of CHF 3,626,000, with
effective date November 30, 2001.
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