EDWARDS LIFESCIENCES CORP
EXHIBIT 10.34
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<TYPE>EX-10.34
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<FILENAME>a2092940zex-10_34.htm
<DESCRIPTION>EXHIBIT 10.34
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<P ALIGN="RIGHT"><FONT SIZE=2><B>Exhibit 10.34  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ka1629_supplemental_reorganization_ag__sup03114"> </A>
<A NAME="toc_ka1629_1"> </A>
<BR></FONT><FONT SIZE=2><B>SUPPLEMENTAL REORGANIZATION AGREEMENT<BR>  AND AMENDMENT TO TAX SHARING AGREEMENT    <BR>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><B>SUPPLEMENTAL REORGANIZATION AGREEMENT AND AMENDMENT TO TAX SHARING AGREEMENT</B></FONT><FONT SIZE=2>, dated as of July&nbsp;25, 2002
(this </FONT><FONT SIZE=2><B>"Agreement"</B></FONT><FONT SIZE=2>), by and between Baxter International&nbsp;Inc., a Delaware corporation (</FONT><FONT SIZE=2><B>"Baxter"</B></FONT><FONT SIZE=2>),
and Edwards Lifesciences Corporation, a Delaware corporation (</FONT><FONT SIZE=2><B>"Edwards"</B></FONT><FONT SIZE=2>) (each a </FONT><FONT SIZE=2><B>"Party"</B></FONT><FONT SIZE=2> and
collectively, the </FONT><FONT SIZE=2><B>"Parties"</B></FONT><FONT SIZE=2>). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>WHEREAS</B></FONT><FONT SIZE=2>, the Parties hereto entered into a Reorganization Agreement (the </FONT><FONT SIZE=2><B>"Reorganization
Agreement"</B></FONT><FONT SIZE=2>), dated as of March&nbsp;15, 2000; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>WHEREAS</B></FONT><FONT SIZE=2>, under the terms of the Reorganization Agreement, (i)&nbsp;Baxter and certain Baxter Group Members (as defined in the
Reorganization Agreement), among other things, transferred certain assets and liabilities to Edwards and certain Edwards Group Members (as defined in the Reorganization Agreement) and
(ii)&nbsp;Edwards and certain Edwards Group Members, among other things, assumed certain liabilities of Baxter and certain Baxter Group Members and agreed to distribute certain funds to Baxter,
which funds were used to reduce pre-existing debt of the Baxter Group Members, pursuant to Section&nbsp;9.3 of the Reorganization Agreement (the </FONT><FONT SIZE=2><B>"Assumed
Liabilities"</B></FONT><FONT SIZE=2>), which Assumed Liabilities included the obligation to invest in a Japanese contractual joint venture (tokumei kumiai)
(</FONT><FONT SIZE=2><B>"TK"</B></FONT><FONT SIZE=2>) in the amount of &yen; 23,200,000,000 (the "</FONT><FONT SIZE=2><B>TK Investment")</B></FONT><FONT SIZE=2> pursuant to the Tokumei
Kumiai Agreement (the </FONT><FONT SIZE=2><B>"TK Agreement"</B></FONT><FONT SIZE=2>), dated April&nbsp;1, 2000, between Baxter Limited ("</FONT><FONT SIZE=2><B>Baxter
Limited</B></FONT><FONT SIZE=2>") and Edwards Lifesciences Finance Limited (</FONT><FONT SIZE=2><B>"Edwards Finance"</B></FONT><FONT SIZE=2>); </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>WHEREAS</B></FONT><FONT SIZE=2>, in connection with the Reorganization Agreement, the Parties hereto entered into a Tax Sharing Agreement (the </FONT> <FONT SIZE=2><B>"Tax Sharing Agreement"</B></FONT><FONT SIZE=2>), dated as of
March&nbsp;31, 2000; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>WHEREAS</B></FONT><FONT SIZE=2>, in connection with the TK, Baxter Limited and Edwards Lifesciences (Japan) Limited (</FONT><FONT SIZE=2><B>"Edwards
Limited"</B></FONT><FONT SIZE=2>) entered into an Option Agreement (the </FONT><FONT SIZE=2><B>"Option Agreement"</B></FONT><FONT SIZE=2>), dated as of March&nbsp;31, 2000, in which Edwards Limited
received an option to acquire the Japanese Edwards Business (as defined in the Option Agreement) from Baxter Limited; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>WHEREAS</B></FONT><FONT SIZE=2>, Baxter Limited and Edwards Finance will terminate the TK Agreement effective immediately prior to and as provided for under the
Kaisha Bunkatsu and Stock Purchase Agreement (the </FONT><FONT SIZE=2><B>"Purchase Agreement"</B></FONT><FONT SIZE=2>), dated as of the date hereof; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>WHEREAS</B></FONT><FONT SIZE=2>, under the terms of the Option Agreement, Edwards Limited was granted the right to acquire the Japanese Edwards Business for an
amount equal to &yen; 26,410,000,000 (the </FONT><FONT SIZE=2><B>"Strike Price"</B></FONT><FONT SIZE=2>) plus the Net Worth Adjustment (as defined in the Option Agreement); </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>WHEREAS,</B></FONT><FONT SIZE=2> the &yen;3,210,000,000 differential between the Strike Price and the TK Investment was also included within the Assumed
Liabilities under Section&nbsp;9.3 of the Reorganization Agreement; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>WHEREAS,</B></FONT><FONT SIZE=2> the US Payment (as defined below) is part of the Assumed Liabilities; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>WHEREAS,</B></FONT><FONT SIZE=2> the payment of the additional &yen;3,210,000,000 is a precondition to the completion of the spin-off of the
Japanese Edwards Business, and that the netting of the return of the TK Investment and the Strike Price will result in the completion of the distributions and assumption of the assumed liabilities
called for by Section&nbsp;9.3 of the Reorganization Agreement; however, due to changes in the economic climate of Japan and the resolution of relevant Japanese transfer price audit uncertainties,
the transfer of the Japanese Edwards Business cannot be effected at the Strike Price consistent with Japanese transfer pricing restrictions; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>WHEREAS</B></FONT><FONT SIZE=2>, rather than proceeding under the terms of the Option Agreement, simultaneously herewith certain Baxter Group Members and certain
Edwards Group Members have entered into the Purchase Agreement pursuant to which Baxter Limited will transfer the Japanese Edwards Business to Edwards Limited in exchange for the issuance of shares of
Edwards Limited to Baxter Holdings Limited, and Edwards Lifesciences AG (</FONT><FONT SIZE=2><B>"Edwards AG"</B></FONT><FONT SIZE=2>) shall immediately purchase such shares from </FONT></P>

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Baxter Holdings Limited (the </FONT><FONT SIZE=2><B>"Stock Purchase"</B></FONT><FONT SIZE=2>) for the amount of &yen; 16,500,000,000, subject to adjustment as set forth in the Purchase
Agreement (the </FONT><FONT SIZE=2><B>"Valuation Amount"</B></FONT><FONT SIZE=2>); </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>WHEREAS</B></FONT><FONT SIZE=2>, in order to effectuate the completion of the distributions and the assumption and satisfaction of the Assumed Liabilities called
for by Section&nbsp;9.3 of the Reorganization Agreement,
Edwards shall simultaneously with the closing of the Stock Purchase (the </FONT><FONT SIZE=2><B>"Closing"</B></FONT><FONT SIZE=2>) assume and satisfy the additional liability owed to Baxter Group
Members that arose in connection with the Reorganization in the amount of (x)&nbsp;&yen; 26,410,000,000, minus (y)&nbsp;the sum of (A)&nbsp;the Valuation Amount, plus (B)&nbsp;the
Japanese Yen equivalent at Closing of $4,000,000, plus (C)&nbsp;the net book value of leasehold improvements being transferred to Baxter Limited at Miyazaki (the </FONT><FONT SIZE=2><B>"US
Payment"</B></FONT><FONT SIZE=2>); and </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>WHEREAS</B></FONT><FONT SIZE=2>, the Parties desire to set forth the terms of the US Payment as an adjustment to the Assumed Liabilities as a result of the
transfer price constraints and economic climate in Japan; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>NOW, THEREFORE</B></FONT><FONT SIZE=2>, in consideration of the mutual covenants and agreements hereinafter set forth, the Parties agree as follows: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;Contemporaneously
with the Closing, Edwards shall pay to Baxter World Trade Corporation (or as directed by Baxter World Trade Corporation) the US Payment. The US Payment
shall be paid in Japanese Yen by federal or other wire transfer in immediately available funds to the account, or three or fewer accounts, designated by Baxter in writing at least two days prior to
Closing. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;The
Parties agree to treat the US Payment as part of the Assumed Liabilities and as relating back to the transactions contemplated by the Reorganization Agreement. The
Parties agree to report the Assumed Liabilities and US Payment consistently therewith on all Tax Returns (as defined in the Tax Sharing Agreement). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;The
Parties agree that the provisions of Section&nbsp;3.05 of the Tax Sharing Agreement shall not apply to the transactions occurring at Closing or any time thereafter
with respect to any Taxes (as defined in the Tax Sharing Agreement) imposed in respect of or resulting from (i)&nbsp;the transactions contemplated by the Purchase Agreement, (ii)&nbsp;the
termination of the Option Agreement, (iii)&nbsp;the termination of the TK Agreement and/or (iv)&nbsp;this Agreement (the foregoing items to be referred to herein as the </FONT> <FONT SIZE=2><B>"Present Transactions"</B></FONT><FONT SIZE=2>).
</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;The
Parties agree that Baxter is solely liable for any Taxes imposed in respect of or resulting from the US Payment described in Section&nbsp;1 of this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;The
Parties agree that Edwards shall pay to Baxter the amount of any Tax Benefit (subject to and as defined in Section&nbsp;6 below) if and to the extent
(i)&nbsp;any adjustment to the Final Valuation Report (as defined below), including the filing of an amended Tax Return to reflect any such adjustments, is made by a Japanese taxing authority to the
Tax Returns of Baxter Limited with respect to the transaction contemplated by the Purchase Agreement, which adjustment results in a Final Determination (as defined in the Tax Sharing Agreement) of
taxable gain to Baxter Limited of more than Japanese Yen equivalent at Closing of $90,000,000 (calculated based on, and consistent with, the Mizuho Financial Group's valuation of the Japanese Edwards
Business (such valuation referred to herein as the "Final
Valuation Report"), hereinafter such Japanese Yen equivalent at Closing of $90,000,000 of gain determined by the Parties pursuant to the Final Valuation Report shall be referred to herein as the </FONT> <FONT SIZE=2><B>"Gain"</B></FONT><FONT SIZE=2>,
and any gain in excess of the Gain, shall be referred to herein as the </FONT><FONT SIZE=2><B>"Incremental Gain"</B></FONT><FONT SIZE=2>) and
for which Taxes on the Incremental Gain are actually paid by Baxter Limited, and (ii)&nbsp;Edwards realizes a Tax Benefit resulting from an increase in Tax basis that is directly attributable to
Baxter Limited's recognition of the Incremental Gain. In no event shall Edwards be liable to Baxter for any Tax Benefit associated with the Incremental Gain except to the extent of any Tax liability
actually incurred by Baxter with respect to such Incremental Gain. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;A </FONT> <FONT SIZE=2><B>"Tax Benefit"</B></FONT><FONT SIZE=2> means a reduction in the aggregate Tax liability of Edwards Limited and Edwards AG determined as
follows.
Except as otherwise provided in this Agreement, a Tax Benefit shall be deemed to have been realized or received in a taxable period only if and to the extent the aggregate Tax liability of Edwards
Limited and Edwards AG, measured from the Closing until the end of such taxable period, is less than it would have been if such Tax liability were determined on </FONT><FONT SIZE=2><I>pro
forma</I></FONT><FONT SIZE=2> Tax Returns without regard to a loss, deduction, credit or other similar item attributable to a matter described in Section&nbsp;5 of this Agreement. In determining the
Tax liability of Edwards Limited and Edwards AG for any purpose of this Agreement, the Parties agree to disregard any transactions or Tax planning strategies (such as material changes in accounting
policies, changes in transfer pricing policies, changes in capital structure to increase leverage, and acquisitions or reorganizations which produce Tax losses, deductions, credits or other similar
items greater than operating income) entered into by Edwards Group Members after the Closing that creates any Tax loss, deduction, credit or other similar item that reduces utilization of any portion
of, or eliminates, a Tax Benefit arising from the Gain or the Incremental Gain. Edwards shall determine the Tax Benefit for any given taxable year in good faith, after consulting with Baxter,
permitting Baxter to review any analyses as are reasonably requested by Baxter and providing Baxter with a reasonable opportunity to review Edwards' Tax Returns and such </FONT><FONT SIZE=2><I>pro
forma</I></FONT><FONT SIZE=2> Tax Returns. Baxter's review of Edwards' Tax Returns will be solely for the purpose of determining the Tax Benefit and all information derived from such review will be
kept confidential by Baxter for all purposes other than seeking enforcement of this Agreement. The Parties agree that any step up in basis arising from the Gain shall be fully realized, disregarding
any transactions or Tax planning strategies as described in this Section&nbsp;6, in Edwards' Tax Returns before any step up in basis arising from the Incremental Gain is considered in determining
whether any Tax Benefit amounts are payable to Baxter. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;The
Parties agree that any payment pursuant to Section&nbsp;5 of this Agreement shall have the character and effect set forth in Section&nbsp;4.05 of the Tax Sharing
Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;&nbsp;The
Parties agree that any adjustments by any taxing authorities to the income generated by the CVG Business or the IV Business during all taxable years or periods in
which the TK operated up until, but not including the Closing (a </FONT><FONT SIZE=2><B>"TK Adjustment"</B></FONT><FONT SIZE=2>), shall be allocated to Edwards Finance for all Tax purposes,
notwithstanding any provisions to the contrary in the TK Agreement. Edwards Finance shall receive all rewards of any TK Adjustment, including income, gain, credits and tax refunds (and any allocations
and distributions thereof), and bear the risk of all TK Adjustments, including deductions, loss and Tax liability. Edwards shall indemnify Baxter for any Tax which may be assessed upon Baxter
by any taxing authority which is directly related to a TK Adjustment and Baxter shall remit to Edwards any Tax refund received from any taxing authority which is directly related to a TK Adjustment. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;&nbsp;If
Edwards receives written notice of any suit, audit, inquiry, claim, proceeding or demand that could reasonably be expected to result in an adjustment to the Tax
Returns of Edwards AG and Edwards Limited relating to the Present Transactions (a </FONT><FONT SIZE=2><B>"Tax Cost"</B></FONT><FONT SIZE=2>), which might affect the determination of any Tax Benefit
under Paragraph&nbsp;6 above, Edwards shall promptly deliver written notice thereof to Baxter. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;&nbsp;Edwards
shall be obligated to exhaust all reasonable remedies in contesting a Tax Cost. Baxter shall have the right to (i)&nbsp;consult with Edwards in the defense of
any Tax Cost through its appointed legal counsel and/or tax professionals, in cooperation with Edwards' appointed legal and/or tax professionals at Baxter's own expense and (ii)&nbsp;comment on all
written submissions made to any taxing authority in connection with a Tax Cost. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;&nbsp;If
Baxter receives written notice of any suit, audit, inquiry, claim, proceeding or demand that could reasonably be expected to result in an Incremental Gain (a </FONT> <FONT SIZE=2><B>"Covered Claim"</B></FONT><FONT SIZE=2>), Baxter shall promptly
deliver written notice thereof to Edwards. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;&nbsp;Baxter
shall be obligated to exhaust all reasonable remedies in contesting a Covered Claim. Edwards shall have the right to (i)&nbsp;consult with Baxter in the defense
of any Covered Claim through its appointed legal counsel and/or tax professionals, in cooperation with Baxter's appointed legal and/or tax professionals at Edwards' own expense and (ii)&nbsp;comment
on all written submissions made to any taxing authority in connection with a Covered Claim. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.&nbsp;&nbsp;The
Parties agree that the Present Transactions shall be deemed not to constitute a transaction involving either the stock or assets of either Edwards or any of its
Subsidiaries (as defined in the Reorganization Agreement) or any combination thereof for purposes of Section&nbsp;9.4 of the Reorganization Agreement and Baxter shall be responsible for any Taxes
resulting from an IRS Adjustment (as defined in Tax Sharing Agreement), and any liabilities and associated expenses, including penalties and interest, attributable to, resulting from or in connection
with the Present Transactions. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.&nbsp;&nbsp;The
Parties acknowledge and agree that the Parties are currently disputing certain matters in respect of, and may have certain claims under, various other agreements
between the Parties. The Parties agree to resolve any such disputes and claims outside of this Agreement. The Parties acknowledge and agree that neither the execution nor consummation of this
Agreement shall, in any way, be construed as an admission of any kind, or as compromising or otherwise affecting the position of any Party in any such
dispute, or preclude any Party from continuing to assert against the other Party any and all of its rights with respect to any such claims. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.&nbsp;&nbsp;Except
as specifically amended or waived by this Agreement, the Reorganization Agreement and the Tax Sharing Agreement shall remain in full force and effect. The Parties
hereto further agree that in the event and to the extent that there shall be a conflict between the provisions of this Agreement and the Tax Sharing Agreement, the Reorganization Agreement, the Option
Agreement, the Purchase Agreement, the TK Agreement or any other agreement, the provisions of this Agreement shall control. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.&nbsp;&nbsp;In
addition to any rights granted to Edwards pursuant to the Purchase Agreement, the Parties acknowledge and covenant that Edwards Limited was granted, as of
March&nbsp;15, 2000, the same license to the Licensed Baxter Intellectual Property (as defined in the Reorganization Agreement) from Baxter and its subsidiaries as provided to Edwards and its
subsidiaries in Sections 10.2 and 10.3 of the Reorganization Agreement. The terms of such license are as otherwise provided in the Reorganization Agreement with reference to the defined terms therein.
The Parties further acknowledge and covenant that Baxter Limited was granted, as of March&nbsp;15, 2000, a license to the Transferred Intellectual Property (as defined in the Reorganization
Agreement) solely to the extent necessary to operate the TK as it has been operated from March&nbsp;15, 2000 to the effective date of the Purchase Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.&nbsp;&nbsp;This
Agreement shall not be amended, modified or supplemented except by a written instrument signed by the Parties hereto. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.&nbsp;&nbsp;Any
term or provision of this Agreement may be waived, or the time for its performance may be extended, by the Party or Parties entitled to the benefit thereof. Any such
waiver shall be validly and sufficiently authorized for the purposes of this Agreement if, as to any party, it is authorized in writing by an authorized representative of such party. The failure of
any party hereto to enforce at any time any provision of this Agreement shall not be construed to be a waiver of such provision, nor in any way to affect the validity of this Agreement or any part
hereof or the right of any party thereafter to enforce each and every such provision. No waiver of any breach of this Agreement shall be held to constitute a waiver of any other or subsequent breach. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.&nbsp;&nbsp;Wherever
possible, each provision hereof shall be interpreted in such manner as to be effective and valid under applicable law, but in case any one or more of the
provisions contained herein shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such provision shall </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>4</FONT></P>

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be ineffective to the extent, but only to the extent, of such invalidity, illegality or unenforceability without invalidating the remainder of such invalid, illegal or unenforceable provision or
provisions or any other provisions hereof unless such a construction would be unreasonable. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.&nbsp;&nbsp;This
Agreement may be executed in one or more counterparts, each of which shall be considered an original instrument, but all of which shall be considered one and the
same agreement, and shall become binding when one or more counterparts have been signed by each of the Parties hereto and delivered to each of the Parties hereto. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.&nbsp;&nbsp;This
Agreement shall be governed by the laws of the State of Illinois, without regard to the principles of conflicts of laws thereof. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.&nbsp;&nbsp;Dispute
resolution under this Agreement shall be subject to and governed by the provisions of Article&nbsp;XVI and Section&nbsp;18.2 of the Reorganization Agreement. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.&nbsp;&nbsp;Each
Party will pay all costs and expenses incident to its negotiation and preparation of this Agreement, and its performance and compliance with all agreements and
conditions contained herein. </FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2>5</FONT></P>

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><B>IN WITNESS WHEREOF</B></FONT><FONT SIZE=2>, the Parties hereto have caused this Agreement to be executed the day and year first above written. </FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2>S-1</FONT></P>

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<P><br><A NAME="02MOC1603_2">QuickLinks</A><br></P><!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_ka1629_1">SUPPLEMENTAL REORGANIZATION AGREEMENT AND AMENDMENT TO TAX SHARING AGREEMENT</A></FONT><BR>
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