1 EXHIBIT 10.34. SUPPLEMENTAL AGREEMENT, dated as of October 31, 1994, between ICN Pharmaceuticals, Inc. a Delaware corporation with principal offices at 3300 Hyland Avenue, Costa Mesa, California 92626, United States of America ("ICN"), ICN Merger Corp., a Delaware corporation whose principal office is at 3300 Hyland Ave., Costa Mesa, California 92626, United States of America ("New ICN"), and Ansbacher (Guernsey) Limited (formerly Ansbacher [C.I.] Limited) whose registered office is at La Plaiderie, St. Peter Port, Guernsey ("the Trustee"), as trustee for Pharma Capital Holdings (the "Trustee"). WHEREAS, on October 16, 1986, pursuant to a bond issue agreement ("the Bond Issue Agreement") of the same date between ICN and the Trustee, the Trustee purchased 10 series of Zero Coupon ECU Bonds due each May 30, 1987 through 1996 (the "Bonds") issued by ICN Pharmaceuticals, Inc. ("ICN"); WHEREAS, on the date hereof, the aggregate future payments of the Bonds through maturity would be ECU 2,348,274; WHEREAS, ICN and certain affiliates of ICN will be merged into New ICN (the "Merger") pursuant to that certain Agreement and Plan of Merger, dated August 1, 1994, among New ICN, ICN, SPI Pharmaceuticals, Inc., ICN Biomedicals, Inc. and Viratek, Inc., as amended; WHEREAS, New ICN will be the surviving corporation of the Merger and, upon the effectiveness thereof, New ICN will change its name to ICN Pharmaceuticals, Inc.; WHEREAS, pursuant to the terms and conditions of the Bonds set forth on the reverse of the Bonds ("the Terms of Bonds"), 50% or more of the holders of the Bonds may declare the Bonds then outstanding due and payable in the event of a merger of ICN into another corporation unless, among other things, the surviving corporation expressly assumes all obligations of ICN under the Bonds by supplemental agreement reasonably satisfactory to such holder or holders of the Bonds; and WHEREAS, New ICN desires to assume all obligations of ICN under the Terms of the Bonds, the Bond Issue Agreement and the Pharma Capital Holdings Trust Instrument, dated October 16, 1986 (the "Trust Instrument"), between ICN and the Trustee; NOW THEREFORE, in consideration of the premises herein set forth and in order to comply with the Terms of the Bonds the parties hereto agree as follows: 1. Assumption. In satisfaction of the requirements of Section 9(f) of the Terms of the Bonds and in consideration of the respective obligations undertaken herein, New ICN hereby expressly and unconditionally assumes any and all obligations of ICN under the Terms of the Bonds, the Bond Issue Agreement and the Trust Instrument in place of ICN and New ICN and the Trustee shall assume obligations towards each other in all respects as though New ICN had been a party thereto. 2. Release. The Trustee shall release ICN from its obligations to the Trustee under the Terms of the Bonds, the Bond Issue Agreement, and the Trust Instrument and ICN shall release the Trustee from its obligations to ICN thereunder the Trustee and ICN shall each be released from further obligations to the other thereunder and their respective rights against each other shall be discharged. 3. Confirmation. The Terms of the Bonds, the Bond Issue Agreement and the Trust Instrument (mutatis mutandis) are in all respects confirmed and preserved. 4. Effectiveness. Subject to clause 5 hereof, this Agreement shall become effective immediately upon the filing of the Certificate of Merger evidencing the Merger with the Secretary of State of the State of Delaware ("the Merger Date"). 5. Conditions Precedent. This Agreement shall be conditional upon there having been delivered to the Trustee on or prior to the Merger Date in agreed form an opinion from US counsel licensed to 122 2 practice in the State of Delaware Richards, Layton & Finger relating to the Merger and such other resolutions, consents, authorities, agreements and documents relating to this Agreement as the Trustee may reasonably require. 6. Counterparts. This Supplemental Agreement may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument. 7. Governing Law. This Supplemental Agreement shall be construed in accordance with and governed by the laws of New York. IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Agreement to be duly executed, as of the date and year first above written. ICN MERGER CORP. By: ------------------------------------- Name: John E. Giordani Title: Director and Vice President ANSBACHER (GUERNSEY) LIMITED, as trustee for Pharma Capital Holdings By: ------------------------------------- ICN PHARMACEUTICALS, INC. By: ------------------------------------- 123