EXHIBIT 10.15
THE CONFIDENTIAL PORTIONS OF THIS EXHIBIT, WHICH HAVE
BEEN REMOVED AND REPLACED WITH AN ASTERISK, HAVE BEEN
OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR
CONFIDENTIAL TREATMENT UNDER RULE 406 PROMULGATED UNDER
THE SECURITIES ACT OF 1933 AND RULE 24b-2 UNDER THE
SECURITIES EXCHANGE ACT OF 1934.
G U I D A N T
Mr. Robert Rusin December 6, 2004
Vice President Sales & Marketing
Wilson Greatbatch Technology
10,000 Wehrle Drive
Clarence, New York 14031
Subject: Capacitor Forecast
Dear Mr. Rusin
As per our conversation on December 3rd, 2004 and pursuant to the WGT pricing
proposal supplement dated November 8, 2004. Guidant is issuing the following
intent to procure capacitors from WGT.
Guidant intends to purchase as a minimum, * capacitors (includes all models
except *) at a rate of */wk commencing the first week of January 2005 and will
remain in effect for the next 25 weeks, at a unit cost of $* each.
It is then our intent to purchase as a minimum * capacitors (includes all models
except *) at a rate of */wk for the remaining 26 weeks in 2005 at a unit cost of
$* each.
Any additional capacitor orders placed by Guidant during 2005 will be priced per
the appropriate subsequent purchase order table relating to a * initial
commitment. This table is located in the WGT pricing proposal supplement dated
November 8, 2004.
It is our intent, to formalize the above with a written purchase order before
the end of December 2004.
Sincerely
Mr. Michael Malecha
/s/ Michael Malecha
Manager Supplier Development
Cardiac Pacemakers Inc./dba Guidant Corporation
Guidant Corporation
Cardiac Rhythm Management
4100 Hamline Avenue North, St. Paul, MN 55112-5798 USA
Tel 651.582.4000 Fax 651.582.4166
www.guidant.com
Wilson Greatbatch Technologies, Inc. (WG)
Guidant CRM (GDT)
Supplement to Wet Tantalum Capacitor 04 November 2004 Pricing Proposal
08 November 2004
I. Introduction
This Supplement outlines a special offer to GDT for capacitor
pricing in 2005 only. It is linked to the WG / GDT Wet Tantalum
Capacitor 2005 Pricing Proposal dated 04 November 2004 and offers
opportunity for additional price discounts to GDT for capacitors
purchased under the terms of Option "A". Under the terms of this
Supplement, WG is offering additional discounts from pricing
offered in the 04 November Proposal if GDT commits to additional
level-loaded capacitor volume over specific and defined periods of
time. This special pricing offered in this Supplement applies to
capacitor models * only. Pricing for capacitor models * remains as
offered in the 04 November Proposal.
II. Execution
Capacitor pricing established under Option "A" of the 04 November
Proposal is dependent upon a Baseline Minimum unit volume
commitment made for 2005 by GDT. Under the terms of Option "A",
additional orders beyond the initial Baseline Minimum can only be
ordered in increments of * units. Additional unit orders may be
scheduled for delivery at any time; however, all orders must be
delivered and invoiced to GDT before 31 December 2005. Lead-time
requirements apply.
Under the terms of this Supplement, GDT may receive special
pricing for models *. Special pricing is offered only if
additional unit order volume is level loaded over a defined
quarterly basis, thus temporarily increasing the minimum weekly
pull rate for an entire quarter or quarters. Lead-time
requirements noted under the terms of Option "A" also apply;
therefore, an advance commitment by GDT must be made in order to
secure the special pricing offered in this Supplement. Additional
quantities that are not level-loaded on a quarterly basis (order
"spikes") may be ordered under the terms of Option "A" of the 04
November Proposal. Pricing is repeated in the tables in this
Supplement.
Special pricing offered in this Supplement for additional
level-loaded capacitor volume commitments beyond a Secured
Baseline Minimum unit volume is shown in the tables on pages 2 and
3 of this document. As in the 04 November proposal, pricing for
all additional unit volumes is dependent upon the Secured Baseline
Minimum commitment made by GDT.
WGT/GDT 2005 Capacitor Pricing Proposal Supplement Page 1 of 3
RCR 11/08/04
Supplement Pricing - Additional Volume Level-Loaded Over Quarters
- ----------------------------------------------------------------------------------------------------------------------
Initial Purchase Order *
Minimum Weekly Pull Rate *
Unit price for Initial P.O. $*
Subsequent Purchase Orders
Minimum Option "A" Supplement Price - Level-Loaded Commitment
Quantity Price 1 Quarter 2 Quarters 3 Quarters 4 Quarters
-------- ----- --------- ---------- ---------- ----------
* $* $* $* $* $*
* $* $* $* $* $*
* $* $* $* $* $*
* $* $* $* $* $*
* $* $* $* $* $*
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Initial Purchase Order *
Minimum Weekly Pull Rate *
Unit price for Initial P.O. $*
Subsequent Purchase Orders
Minimum Option "A" Supplement Price - Level-Loaded Commitment
Quantity Price 1 Quarter 2 Quarters 3 Quarters 4 Quarters
-------- ----- --------- ---------- ---------- ----------
* $* $* $* $* $*
* $* $* $* $* $*
* $* $* $* $* $*
* $* $* $* $* $*
* $* $* $* $* $*
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Initial Purchase Order *
Minimum Weekly Pull Rate *
Unit price for Initial P.O. $*
Subsequent Purchase Orders
Minimum Option "A" Supplement Price - Level-Loaded Commitment
Quantity Price 1 Quarter 2 Quarters 3 Quarters 4 Quarters
-------- ----- --------- ---------- ---------- ----------
* $* $* $* $* $*
* $* $* $* $* $*
* $* $* $* $* $*
* $* $* $* $* $*
* $* $* $* $* $*
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Initial Purchase Order *
Minimum Weekly Pull Rate *
Unit price for Initial P.O. $*
Subsequent Purchase Orders
Minimum Option "A" Supplement Price - Level-Loaded Commitment
Quantity Price 1 Quarter 2 Quarters 3 Quarters 4 Quarters
-------- ----- --------- ---------- ---------- ----------
* $* $* $* $* $*
* $* $* $* $* $*
* $* $* $* $* $*
* $* $* $* $* $*
* $* $* $* $* $*
- ----------------------------------------------------------------------------------------------------------------------
WGT/GDT 2005 Capacitor Pricing Proposal Supplement Page 2 of 3
RCR 11/08/04
- ----------------------------------------------------------------------------------------------------------------------
Initial Purchase Order *
Minimum Weekly Pull Rate *
Unit price for Initial P.O. $*
Subsequent Purchase Orders
Minimum Option "A" Supplement Price - Level-Loaded Commitment
Quantity Price 1 Quarter 2 Quarters 3 Quarters 4 Quarters
-------- ----- --------- ---------- ---------- ----------
* $* $* $* $* $*
* $* $* $* $* $*
* $* $* $* $* $*
* $* $* $* $* $*
* $* $* $* $* $*
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Initial Purchase Order *
Minimum Weekly Pull Rate *
Unit price for Initial P.O. $*
Subsequent Purchase Orders
Minimum Option "A" Supplement Price - Level-Loaded Commitment
Quantity Price 1 Quarter 2 Quarters 3 Quarters 4 Quarters
-------- ----- --------- ---------- ---------- ----------
* $* $* $* $* $*
* $* $* $* $* $*
* $* $* $* $* $*
* $* $* $* $* $*
* $* $* $* $* $*
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Initial Purchase Order *
Minimum Weekly Pull Rate *
Unit price for Initial P.O. $*
Subsequent Purchase Orders
Minimum Option "A" Supplement Price - Level-Loaded Commitment
Quantity Price 1 Quarter 2 Quarters 3 Quarters 4 Quarters
-------- ----- --------- ---------- ---------- ----------
* $* $* $* $* $*
* $* $* $* $* $*
* $* $* $* $* $*
* $* $* $* $* $*
* $* $* $* $* $*
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Initial Purchase Order *
Minimum Weekly Pull Rate *
Unit price for Initial P.O. $*
Subsequent Purchase Orders
Minimum Option "A" Supplement Price - Level-Loaded Commitment
Quantity Price 1 Quarter 2 Quarters 3 Quarters 4 Quarters
-------- ----- --------- ---------- ---------- ----------
* $* $* $* $* $*
* $* $* $* $* $*
* $* $* $* $* $*
* $* $* $* $* $*
* $* $* $* $* $*
- ----------------------------------------------------------------------------------------------------------------------
WGT/GDT 2005 Capacitor Pricing Proposal Supplement Page 3 of 3
RCR 11/08/04
Seils, Janine H (STP)
- --------------------------------------------------------------------------------
From: Rusin, Robert [RRusin@greatbatch.com]
Sent: Thursday, November 04, 2004 12:27 PM
To: Seils, Janine H (STP)
Subject: Proposal Attached
[WORD ICON]
WGT GDT Cap
Proposal 04NOV04.d.
Janine,
Attached is a revised capacitor pricing proposal that reflects the items from
our discussion yesterday. New pricing schedules were added for Option "A" to
allow for additional unit volume orders after establishment of minimum base
volume. Lead times were added to reflect our ability to respond. Note that these
key revisions: In this proposal, additional unit volumes must be placed in
minimum increments of * units. An incremental order of * offers a more
attractive price, but does not get you to the more favorable price level that
you would have enjoyed had you made a higher unit volume commitment at the
beginning of the year. Also, additional unit volumes beyond baseline are not
tied to * month periods. You have flexibility to take them at any time during
the calendar year (respecting lead times). Finally, as with the other proposals,
there is no opportunity for retro-active pricing (rebate). Call with questions.
Thanks.
Bob (WGT GDT Cap Proposal 04NOV04.doc)
1
Wilson Greatbatch Technologies, Inc. (WG)
Guidant CRM (GDT)
Wet Tantalum Capacitor 2005 Pricing Proposal
04 November 2004
I. Effective Dates
The pricing shown in this proposal is effective on the latter date
of 02 January 2005 or the date of execution of this Agreement.
Pricing expires on 31 December 2005.
II. Execution
Pricing to be established is dependent upon Guidant's selection of
Option "A" or Option "B" outlined below. Option "A" requires an
annual Baseline quantity in the form of a secured weekly volume
commitment from Guidant. Option "B" does not require an annual
Baseline quantity commitment from Guidant. Option "B" pricing is
purchase order volume dependent.
III. Option "A" Terms - Secured Baseline Volume Commitment
Pricing for individual modes is determined by the Baseline minimum
unit volume commitment made by Guidant (annual volume). Total order
volume for all models establishes Baseline and is to be indicated
on a firm non-cancelable purchase order provided by GDT to WG.
1. GDT will establish a Baseline volume by making a minimum
volume commitment to WG for capacitors per Option "A"
Pricing Tables shown below
2. Minimum volume commitments reflect annual quantities to be
shipped to Guidant in minimum weekly increments
3. Pricing for all volumes of individual models is determined
by Option "A" Pricing Tables shown below
4. Once the Baseline Minimum volume is established, additional
quantities may be ordered at a unit price that corresponds
to the annual Baseline Minimum volume commitment made by GDT
5. Additional unit orders beyond initial Baseline Minimum can
only be ordered in increments of * units. Additional orders
must be secured by a firm non-cancelable purchase order
provided by GDT to WG
6. A minimum order quantity of * units per model is required
7. Orders must be * weeks firm
8. Lead time per order as follows:
a. * weeks for increases up to * of annual Baseline
Minimum
b. * weeks for increases> * of annual Baseline Minimum
9. Volume indicated on all firm purchase orders must be
delivered and invoiced to GDT before 31 December 2005
10. Price premium will apply for non-standard termination or
packaging
WGT/GDT 2005 Capacitor Pricing Proposal 290CT04 Page 1 of 3
RCR 11/04/04
Option "A" Pricing - Secured Baseline Volume Commitment
- ----------------------------------------------------------------------------------------------------------------------
Option "A" Unit Pricing for Models *
- ----------------------------------------------------------------------------------------------------------------------
Initial Purchase Order * Initial Purchase Order *
Minimum Weekly Pull Rate * Minimum Weekly Pull Rate *
Unit price for Initial P.O. $* Unit price for Initial P.O. $*
Subsequent Purchase Orders Subsequent Purchase Orders
Minimum Unit Minimum Unit
Quantity Price Quantity Price
-------- ----- -------- -----
* $* * $*
* $* * $*
* $* * $*
* $* * $*
* $* * $*
- ---------------------------------------------------- -------------------------------------------------
- ---------------------------------------------------- -------------------------------------------------
Initial Purchase Order * Initial Purchase Order *
Minimum Weekly Pull Rate * Minimum Weekly Pull Rate *
Unit price for Initial P.O. $* Unit price for Initial P.O. $*
Subsequent Purchase Orders Subsequent Purchase Orders
Minimum Unit Minimum Unit
Quantity Price Quantity Price
-------- ----- -------- -----
* $* * $*
* $* * $*`
* $* * $*
* $* * $*
* $* * $*
- ---------------------------------------------------- -------------------------------------------------
- ---------------------------------------------------- -------------------------------------------------
Initial Purchase Order * Initial Purchase Order *
Minimum Weekly Pull Rate * Minimum Weekly Pull Rate *
Unit price for Initial P.O. $* Unit price for Initial P.O. $*
Subsequent Purchase Orders Subsequent Purchase Orders
Minimum Unit Minimum Unit
Quantity Price Quantity Price
-------- ----- -------- -----
* $* * $*
* $* * $*
* $* * $*
* $* * $*
* $* * $*
- ---------------------------------------------------- -------------------------------------------------
- ---------------------------------------------------- -------------------------------------------------
Initial Purchase Order * Initial Purchase Order *
Minimum Weekly Pull Rate * Minimum Weekly Pull Rate *
Unit price for Initial P.O. $* Unit price for Initial P.O. $*
Subsequent Purchase Orders Subsequent Purchase Orders
Minimum Unit Minimum Unit
Quantity Price Quantity Price
-------- ----- -------- -----
* $* * $*
* $* * $*
* $* * $*
* $* * $*
* $* * $*
- ---------------------------------------------------- -------------------------------------------------
WGT/GDT 2005 Capacitor Pricing Proposal 290CT04 Page 2 of 3
RCR 11/04/04
- ----------------------------------------------------------------------------------------------------------------------
Option "A" Unit Pricing for Models *
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Baseline Unit price for Models Unit price for Model
Minimum Units per Year * *
---------------------- - -
* minimum at * per week $* $*
* minimum at * per week $* $*
* minimum at * per week $* $*
* minimum at * per week $* $*
* minimum at * per week $* $*
* minimum at * per week $* $*
- ----------------------------------------------------------------------------------------------------------------------
IV. Option "B" Terms - Purchase Order-to-Purchase Order
Pricing for individual models is determined by total order volume for
all models indicated on a firm non-cancelable purchase order provided
by GDT to WG (Units per Purchase Order).
1. Pricing for all volumes of individual models is determined by
Pricing Table shown below
2. Minimum order volume quantity per purchase order is set at *
units
3. A minimum order quantity of * units per model is required
4. Orders must be * weeks firm. Changes requested by GDT and
accepted by WG within the *-week firm period will be subject to a
* price premium per capacitor
5. Lead time per order is * weeks and is dependent upon size of
order
6. Volume indicated on all firm purchase orders must be delivered
and invoiced to GDT before 31 December 2005
7. Price premium will apply for non-standard termination or
packaging
Option "B" Pricing - Unsecured Annual Volume Commitment
- ---------------------------- ------------------------------- ---------------------------- ----------------------------
Minimum Units per Unit price for Models Unit price for Models Unit price for Model
Purchase Order * * *
-------------- - - -
* $* $* $*
* $* $* $*
* $* $* $*
* $* $* $*
* $* $* $*
* $* $* $*
* $* $* $*
* $* $* $*
* $* $* $*
* $* $* $*
- ---------------------------- ------------------------------- ---------------------------- ----------------------------
WGT/GDT 2005 Capacitor Pricing Proposal 290CT04 Page 3 of 3
RCR 11/04/04
G U I D A N T Purchase Order PO Number * Date 12/17/2004 Page 1 of 5
- ----------------------------------------------------------------------------------------------------------------------------------
Supplier Number: * Bill to: Buyer: Janine Seils
WILSON GREATBATCH LTD. CPI Telephone: 651/582-4014 FAX: 651/582-6424
10000 WEHRLE DR 4100 Hamline Avenue North, Suite #100
CLARENCE NY 14031 St. Paul, MN 55112-5798 U.S.A Authorized/Confirmed by: Date:
Telephone: 716 759-6901 For prompt payment, please include the PO number
FAX: 7167592562 with all shipping/billing documenation. ------------------------------------
Supplier - Please confirm receipt of PO with buyer
(contact buyer for acceptable/preferred method of
communication)
Currency: USD SHIP TO:
Terms of payment: * SEE BELOW
Terms of delivery: FOB ORIGIN
Unless noted otherwise (at line Item) SHIP VIA:
UPS Ground
- ----------------------------------------------------------------------------------------------------------------------------------
DROP SHIP ALL CAPS ON THIS PO TO *.
CAPS ON THIS PO ARE PER LETTER OF INTENT DATED DEC 6, 2005, BASED ON WET TANTALUM CAPACITOR PRICING PROPOSAL DATED NOV 4, 2004 AND
NOV 8, 2004. EXECUTED PRICING/SUPPLY AGREEMENT TO FOLLOW. THIS PO INCLUDES * WEEKS FIRM ORDERS WITH RELEASES TO FOLLOW.
- ----------------------------------------------------------------------------------------------------------------------------------
Item Material Revision Description Order qty. Unit Price PerUnit
- ----------------------------------------------------------------------------------------------------------------------------------
001 * S CAP TANT * * EA * 1 EA
for a Net Value (this item) of * For RESALE
ED
BUILDS.
Remaining quantity split over the following delivery
dates:
Qty. Unit Deliv. date
* Each 01/03/2005
* Each 01/10/2005
* Each 01/17/2005
* Each 01/24/2005
* Each 01/31/2005
* Each 02/07/2005
* Each 06/27/2005
G U I D A N T Purchase Order PO Number * Date 12/17/2004 Page 2 of 5
- --------------------------------------------------------------------------------------- --------------------------- ------ -------
Item Material Revision Description Order qty. Unit Price Per Unit
- --------------------------------------------------------------------------------------- --------------------------- ------ -------
002 * M CAP TANT * * EA * 1 EA
for a Net Value (this item) of * NON-Taxable
Remaining quantity split over the following delivery dates:
Qty. Unit Deliv. date
* Each 01/03/2005
* Each 01/10/2005
* Each 01/17/2005
* Each 01/24/2005
* Each 01/31/2005
* Each 02/07/2005
* Each 06/27/2005
- --------------------------------------------------------------------------------------- --------------------------- ------ -------
Item Material Revision Description Order qty. Unit Price Per Unit
- --------------------------------------------------------------------------------------- --------------------------- ------ -------
003 * M CAP TANT * * EA * 1 EA
for a Net Value (this item) of * For RESALE
Remaining quantity split over the following delivery dates:
Qty. Unit Deliv. date
* Each 01/03/2005
* Each 01/10/2005
* Each 01/17/2005
* Each 01/24/2005
* Each 01/31/2005
* Each 02/07/2005
* Each 06/27/2005
- --------------------------------------------------------------------------------------- --------------------------- ------ -------
Item Material Revision Description Order qty. Unit Price Per Unit
- --------------------------------------------------------------------------------------- --------------------------- ------ -------
004 * M CAP TANT * * EA * 1 EA
for a Net Value (this item) of * For RESALE
G U I D A N T Purchase Order PO Number * Date 12/17/2004 Page 3 of 5
- ----------------------------------------------------------------------------------------------------------------------------------
Remaining quantity split over the following delivery dates:
Qty. Unit Deliv. date
* Each 01/03/2005
* Each 01/10/2005
* Each 01/17/2005
* Each 01/24/2005
* Each 01/31/2005
* Each 02/07/2005
* Each 06/27/2005
---------------------------------------------------------------------------------------------------------------------------------
Guidant's Supplier Development must be formally notified of all changes to the manufacturing process or design prior to
implementation. Guidant, in conjunction with the supplier, shall determine the effect on form, fit, function and reliability
before the change can be approved in writing by Guidant and implemented at the supplier.
---------------------------------------------------------------------------------------------------------------------------------
Total Net Value excluding tax USD *
G U I D A N T Purchase Order PO Number * Date 12/17/2004 Page 1 of 4
- ------------------------------ -------------------------------------------------- ------------------------------------------ -------
Supplier Number: * Bill to: Buyer: Janine Seils
WILSON GREATBATCH LTD. CPI Telephone: 651/582-4014 FAX: 651/582-6424
10000 WEHRLE DR 4100 Hamline Avenue North, Suite #100
CLARENCE NY 14031 St. Paul, MN 55112-5798 U.S.A Authorized/Confirmed by: Date:
Telephone: 716 759-6901 For prompt payment, please include the PO number
--------------------------- -------
FAX: 7167592562 with all shipping/billing documenation. Supplier - Please confirm receipt of PO with buyer
(contact buyer for acceptable/preferred method of
communication)
Currency: USD SHIP TO:
Terms of payment: * SEE BELOW
Terms of delivery: FOB ORIGIN
Unless noted otherwise (at line Item) SHIP VIA:
SURFACE
- --------------------------------------------------------------------------------- ------------------------------------------ -------
DROP SHIP ALL CAPS ON THIS PO TO *.
CAPS ON THIS PO ARE PER LETTER OF INTENT DATED DEC 6, 2005, BASED ON WET TANTALUM CAPACITOR PRICING PROPOSAL DATED NOV 4, 2004 AND
NOV 8, 2004. EXECUTED PRICING/SUPPLY AGREEMENT TO FOLLOW. THE MODEL MIX FOR CAPS ON THIS PO ARE ESTIMATES ONLY AND WILL BE
SCHEDULED BEFORE FIRST DELIVERY, WHICH WILL BE THE FIRST WEEK IN JULY, 2005.
- ------------------------------------------------------------------------------------- ---------------------------- --------- -------
Item Material Revision Description Order qty. Unit Price Per Unit
- ------------------------------------------------------------------------------------- ---------------------------- --------- -------
001 * S CAP TANT * * EA * 1 EA
for a Net Value (this item) of * For RESALE
Due on Dock: 12/31/2005
ED
BUILDS.
- ------------------------------------------------------------------------------------- ---------------------------- --------- -------
Item Material Revision Description Order qty. Unit Price Per Unit
- ------------------------------------------------------------------------------------- ---------------------------- --------- -------
002 * M CAP TANT * * EA * 1 EA
for a Net Value (this item) of * NON-Taxable
Due on Dock: 12/31/2005
G U I D A N T Purchase Order PO Number * Date 12/17/2004 Page 2 of 4