Amended and Restated 2003 Incentive Stock Plan



 Exhibit 10.57 
 ARTHROCARE CORPORATION 
 AMENDED AND RESTATED 2003 INCENTIVE STOCK PLAN 
 ARTICLE 1 
 PURPOSE 

1.1 General. The purpose of the Amended and Restated ArthroCare Corporation 2003 Incentive Stock Plan (the “Plan”) is
to promote the success and enhance the value of ArthroCare Corporation (the “Company”) by linking the personal interests of the members of the Board, employees, consultants, officers, and executives of the Company and any
Subsidiary, to those of Company stockholders and by providing such individuals with an incentive for outstanding performance to generate superior returns to Company stockholders. The Plan is further intended to provide flexibility to the Company in
its ability to motivate, attract, and retain the services of members of the Board, employees, consultants, officers, and executives of the Company upon whose judgment, interest, and special effort the successful conduct of the Company’s
operation is largely dependent. 
 ARTICLE 2 
 DEFINITIONS AND CONSTRUCTION 
 2.1 Definitions. The following words and phrases shall have the
following meanings: 
 (a) “Award” means an Option, a Restricted Stock award, a Stock Appreciation Right award, a
Performance Share award, a Dividend Equivalents award, a Stock Payment award, a Restricted Stock Unit award, or a Performance-Based Award granted to a Participant pursuant to the Plan. 
 (b) “Award Agreement” means any written agreement, contract, or other instrument or document evidencing an Award. 
 (c) “Board” means the Board of Directors of the Company. 
 (d) “Change of Control” means and includes each of the following: 
 (1) the acquisition, directly or indirectly, by any “person” or “group” (as those terms are defined in Sections 3(a)(9), 13(d) and
14(d) of the Exchange Act and the rules thereunder) of “beneficial ownership” (as determined pursuant to Rule 13d-3 under the Exchange Act) of securities entitled to vote generally in the election of directors (“voting
securities”) of the Company that represent 50% or more of the combined voting power of the Company’s then outstanding voting securities, other than: 
 (A) an acquisition by a trustee or other fiduciary holding securities under any employee benefit plan (or related trust) sponsored or maintained by the Company or any person controlled by the Company or by any
employee benefit plan (or related trust) sponsored or maintained by the Company or any person controlled by the Company, or 
 (B) an
acquisition of voting securities by the Company or a corporation owned, directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of the stock of the Company; 
  

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 Notwithstanding the foregoing, the following event shall not constitute an “acquisition” by
any person or group for purposes of this subsection (e): an acquisition of the Company’s securities by the Company that causes the Company’s voting securities beneficially owned by a person or group to represent 50% or more of the combined
voting power of the Company’s then outstanding voting securities; provided, however, that if a person or group shall become the beneficial owner of 50% or more of the combined voting power of the Company’s then outstanding voting
securities by reason of share acquisitions by the Company as described above and shall, after such share acquisitions by the Company, become the beneficial owner of any additional voting securities of the Company, then such acquisition shall
constitute a Change of Control; or 
 (2) during any period of two consecutive years, individuals who, at the beginning of such period,
constitute the Board together with any new director(s) (other than a director designated by a person who shall have entered into an agreement with the Company to effect a transaction described in clauses (1) or (3) of this subsection (e))
whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds of the directors then still in office who either were directors at the beginning of the two year period or whose
election or nomination for election was previously so approved, cease for any reason to constitute a majority thereof; or 
 (3) the
consummation by the Company (whether directly involving the Company or indirectly involving the Company through one or more intermediaries) of (x) a merger, consolidation, reorganization, or business combination or (y) a sale or other
disposition of all or substantially all of the Company’s assets or (z) the acquisition of assets or stock of another entity, in each case other than a transaction: 
 (A) which results in the Company’s voting securities outstanding immediately before the transaction continuing to represent (either by remaining
outstanding or by being converted into voting securities of the Company or the person that, as a result of the transaction, controls, directly or indirectly, the Company or owns, directly or indirectly, all or substantially all of the Company’s
assets or otherwise succeeds to the business of the Company (the Company or such person, the “Successor Entity”)) directly or indirectly, at least a majority of the combined voting power of the Successor Entity’s
outstanding voting securities immediately after the transaction, and 
 (B) after which no person or group beneficially owns voting
securities representing 50% or more of the combined voting power of the Successor Entity; provided, however, that no person or group shall be treated for purposes of this clause (B) as beneficially owning 50% or more of combined voting
power of the Successor Entity solely as a result of the voting power held in the Company prior to the consummation of the transaction; or 
 (4) the Company’s stockholders approve a liquidation or dissolution of the Company. 
 The Committee shall have full and final
authority, which shall be exercised in its 

  

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discretion, to determine conclusively whether a Change of Control of the Company has occurred pursuant to the above definition, and the date of the
occurrence of such Change of Control and any incidental matters relating thereto. 
 (e) “Code” means the Internal
Revenue Code of 1986, as amended. 
 (f) “Committee” means the committee of the Board described in Article 12.

 (g) “Covered Employee” means an Employee who is, or could be, a “covered employee” within the meaning of
Section 162(m) of the Code. 
 (h) “Disability” means total and permanent disability as defined in
Section 22(e)(3) of the Code. 
 (i) “Dividend Equivalents” means a right granted to a Participant pursuant to
Article 8 to receive the equivalent value (in cash or Stock) of dividends paid on Stock. 
 (j) “Employee” means any
officer or other employee (as defined in accordance with Section 3401(c) of the Code) of the Company or any Subsidiary. 
 (k)
“Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 (l) “Fair Market
Value” shall mean, as of any date, the value of Stock determined as follows: 
 (1) If the Stock is listed on any established
stock exchange or a national market system, including without limitation the Nasdaq National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its Fair Market Value shall be the closing sales price for such stock (or the closing bid,
if no sales were reported) as quoted on such exchange or system for the last market trading day prior to the date of determination, as reported in The Wall Street Journal or such other source as the Committee deems reliable; 
 (2) If the Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, its Fair Market Value shall be the mean of
the closing bid and asked prices for the Stock on the date prior to the date of determination as reported in The Wall Street Journal or such other source as the Committee deems reliable; or 
 (3) In the absence of an established market for the Stock, the Fair Market Value thereof shall be determined in good faith by the Committee. 

(m) “Good Reason” means a Participant’s voluntary resignation following any one or more of the following that is effected
without the Participant’s written consent: (i) a change in his or her position following the Change of Control that materially reduces his or her duties or responsibilities, (ii) a reduction in his or her base salary following a
Change of Control, unless the base salaries of all similarly situated individuals are similarly reduced, or (iii) a relocation of such Participant’s place of employment of more than fifty (50) miles following a Change of Control.
However, if the term or concept of “Good Reason” has been defined in an agreement between a Participant and the Company or any successor or parent or Subsidiary thereof, then “Good Reason” shall have the definition set forth in
such agreement. 
  

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 (n) “Incentive Stock Option” means an Option that is intended to meet the
requirements of Section 422 of the Code or any successor provision thereto. 
 (o) “Non-Employee Director” means
a member of the Board who qualifies as a “Non-Employee Director” as defined in Rule 16b-3(b)(3) of the Exchange Act, or any successor definition adopted by the Board. 
 (p) “Non-Qualified Stock Option” means an Option that is not intended to be an Incentive Stock Option. 
 (q) “Option” means a right granted to a Participant pursuant to Article 5 of the Plan to purchase a specified number of shares of
Stock at a specified price during specified time periods. An Option may be either an Incentive Stock Option or a Non-Qualified Stock Option. 
 (r) “Participant” means a person who, as a member of the Board, consultant to the Company or any Subsidiary or Employee, has been granted an Award pursuant to the Plan. 
 (s) “Performance-Based Award” means an Award granted to selected Covered Employees pursuant to Articles 6 and 8, but which is
subject to the terms and conditions set forth in Article 9. All Performance-Based Awards are intended to qualify as Qualified Performance-Based Compensation. 
 (t) “Performance Criteria” means the criteria that the Committee selects for purposes of establishing the Performance Goal or Performance Goals for a Participant for a Performance Period. The
Performance Criteria that will be used to establish Performance Goals are limited to the following: net earnings (either before or after interest, taxes, depreciation and amortization), net losses, sales or revenue, operating earnings, operating
cash flow, return on net assets, return on stockholders’ equity, return on assets, return on capital, stockholder returns, gross or net profit margin, earnings per share, price per share of Stock, and market share, any of which may be measured
either in absolute terms or as compared to any incremental increase or as compared to results of a peer group. The Committee shall, within the time prescribed by Section 162(m) of the Code, define in an objective fashion the manner of
calculating the Performance Criteria it selects to use for such Performance Period for such Participant. 
 (u) “Performance
Goals” means, for a Performance Period, the goals established in writing by the Committee for the Performance Period based upon the Performance Criteria. Depending on the Performance Criteria used to establish such Performance Goals,
the Performance Goals may be expressed in terms of overall Company performance or the performance of a division, business unit, or an individual. The Committee, in its discretion, may, within the time prescribed by Section 162(m) of the Code,
adjust or modify the calculation of Performance Goals for such Performance Period in order to prevent the dilution or enlargement of the rights of Participants (i) in the event of, or in anticipation of, any unusual or extraordinary corporate
item, transaction, event, or development, or (ii) in recognition of, or in anticipation of, any other unusual or nonrecurring events affecting the Company, or the financial statements of the Company, or in response to, or in anticipation of,
changes in applicable laws, regulations, accounting principles, or business conditions. 
  

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 (v) “Performance Period” means the one or more periods of time, which may be of
varying and overlapping durations, as the Committee may select, over which the attainment of one or more Performance Goals will be measured for the purpose of determining a Participant’s right to, and the payment of, a Performance-Based Award.

 (w) “Performance Share” means a right granted to a Participant pursuant to Article 8, to receive cash, Stock, or
other Awards, the payment of which is contingent upon achieving certain performance goals established by the Committee. 
 (x)
“Plan” means this ArthroCare Corporation Amended and Restated 2003 Incentive Stock Plan, as it may be amended from time to time. 
 (y) “Public Trading Date” means the first date upon which Stock is listed (or approved for listing) upon notice of issuance on any securities exchange or designated (or approved for
designation) upon notice of issuance as a national market security on an interdealer quotation system. 
 (z) “Qualified
Performance-Based Compensation” means any compensation that is intended to qualify as “qualified performance-based compensation” as described in Section 162(m)(4)(C) of the Code. 
 (aa) “Restricted Stock” means Stock awarded to a Participant pursuant to Article 6 that is subject to certain restrictions and to
risk of forfeiture. 
 (bb) “Restricted Stock Unit” means a right to receive a specified number of shares of Stock
during specified time periods pursuant to Article 8. 
 (cc) “Stock” means the common stock of the Company and such
other securities of the Company that may be substituted for Stock pursuant to Article 11. 
 (dd) “Stock Appreciation
Right” or “SAR” means a right granted pursuant to Article 7 to receive a payment equal to the excess of the Fair Market Value of a specified number of shares of Stock on the date the SAR is exercised over the
Fair Market Value on the date the SAR was granted as set forth in the applicable Award Agreement. 
 (ee) “Stock
Payment” means (a) a payment in the form of shares of Stock, or (b) an option or other right to purchase shares of Stock, as part of any bonus, deferred compensation or other arrangement, made in lieu of all or any portion of
the compensation, granted pursuant to Article 8. 
 (ff) “Subsidiary” means any corporation or other entity of which
a majority of the outstanding voting stock or voting power is beneficially owned directly or indirectly by the Company. 
  

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 ARTICLE 3 
 SHARES SUBJECT TO THE PLAN 
 3.1 Number of Shares. 
 (a) Subject to Article 11, the aggregate number of shares of Stock which may be issued or transferred pursuant to Awards under the Plan shall be 2,500,000
shares. The payment of Dividend Equivalents in conjunction with any outstanding Awards shall not be counted against the shares available for issuance under the Plan. 
 (b) To the extent that an Award terminates, expires, or lapses for any reason, any shares of Stock subject to the Award shall again be available for the
grant of an Award pursuant to the Plan. Additionally, any shares of Stock tendered or withheld to satisfy the grant or exercise price or tax withholding obligation pursuant to any Award shall again be available for the grant of an Award pursuant to
the Plan. To the extent permitted by applicable law or any exchange rule, shares of Stock issued in assumption of, or in substitution for, any outstanding awards of any entity acquired in any form of combination by the Company or any Subsidiary
shall not be counted against shares of Stock available for grant pursuant to this Plan. 
 (c) Notwithstanding the provisions of this
Section 3.1 no shares of Stock may again be optioned, granted or awarded if such action would cause an Incentive Stock Option to fail to qualify as an Incentive Stock Option under Code Section 422. 
 3.2 Stock Distributed. Any Stock distributed pursuant to an Award may consist, in whole or in part, of authorized and unissued Stock, treasury
Stock or Stock purchased on the open market. 
 3.3 Limitation on Number of Shares Subject to Awards. Notwithstanding any provision in
the Plan to the contrary, and subject to Article 11, the maximum number of shares of Stock with respect to one or more Awards that may be granted to any one Participant during a calendar year shall be 650,000. 
 ARTICLE 4 
 ELIGIBILITY AND
PARTICIPATION 
 4.1 Eligibility. 
 (a) General. Persons eligible to participate in this Plan include Employees, consultants to the Company or any Subsidiary and all members of the Board, as determined by the Committee. 
 (b) Foreign Participants. In order to assure the viability of Awards granted to Participants employed in foreign countries, the Committee may provide for
such special terms as it may consider necessary or appropriate to accommodate differences in local law, tax policy, or custom. Moreover, the Committee may approve such supplements to, or amendments, restatements, or alternative versions of, the Plan
as it may consider necessary or appropriate for such purposes without thereby affecting the terms of the Plan as in effect for any other purpose; provided, however, that no such supplements, amendments, restatements, or alternative versions
shall increase the share limitations contained in Sections 3.1 and 3.3 of the Plan. 
  

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 4.2 Actual Participation. Subject to the provisions of the Plan, the Committee may, from time to
time, select from among all eligible individuals, those to whom Awards shall be granted and shall determine the nature and amount of each Award. No individual shall have any right to be granted an Award pursuant to this Plan. 
 ARTICLE 5 
 STOCK OPTIONS

 5.1 General. The Committee is authorized to grant Options to Participants on the following terms and conditions: 
 (a) Exercise Price. The exercise price per share of Stock subject to an Option shall be determined by the Committee and set forth in the Award Agreement;
provided that the exercise price for any Option shall not be less than par value of a share of Stock on the date of grant. 
 (b) Time
And Conditions Of Exercise. The Committee shall determine the time or times at which an Option may be exercised in whole or in part, provided that the term of any Option granted under the Plan shall not exceed ten years, and provided
further, that in the case of a Non-Qualified Stock Option, such Option shall be exercisable for one year after the date of the Participant’s death. The Committee shall also determine the performance or other conditions, if any, that must be
satisfied before all or part of an Option may be exercised. 
 (c) Payment. The Committee shall determine the methods by which the exercise
price of an Option may be paid, the form of payment, including, without limitation, cash, promissory note bearing interest at no less than such rate as shall then preclude the imputation of interest under the Code, shares of Stock held for longer
than six months having a Fair Market Value on the date of delivery equal to the aggregate exercise price of the Option or exercised portion thereof, or other property acceptable to the Committee (including through the delivery of a notice that the
Participant has placed a market sell order with a broker with respect to shares of Stock then issuable upon exercise of the Option, and that the broker has been directed to pay a sufficient portion of the net proceeds of the sale to the Company in
satisfaction of the Option exercise price, provided that payment of such proceeds is then made to the Company upon settlement of such sale), and the methods by which shares of Stock shall be delivered or deemed to be delivered to
Participants. Notwithstanding any other provision of the Plan to the contrary, no Participant who is a member of the Board or an “executive officer” of the Company within the meaning of Section 13(k) of the Exchange Act shall be
permitted to pay the exercise price of an Option in any method which would violate Section 13(k). 
 (d) Evidence Of Grant. All Options
shall be evidenced by a written Award Agreement between the Company and the Participant. The Award Agreement shall include such additional provisions as may be specified by the Committee. 
 5.2 Incentive Stock Options. Incentive Stock Options shall be granted only to Employees and the terms of any Incentive Stock Options granted
pursuant to the Plan must comply with the following additional provisions of this Section 5.2: 
  

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 (a) Exercise Price. The exercise price per share of Stock shall be set by the Committee, provided
that the exercise price for any Incentive Stock Option shall not be less than 100% of the Fair Market Value on the date of grant. 
 (b)
Expiration Of Option. An Incentive Stock Option may not be exercised to any extent by anyone after the first to occur of the following events: 
 (1) Ten years from the date it is granted, unless an earlier time is set in the Award Agreement. 
 (2) One year after the date of
the Participant’s termination of employment or service on account of Disability or death, unless in the case of death a shorter or longer period is designated in the Award Agreement. Upon the Participant’s Disability or death, any
Incentive Stock Options exercisable at the Participant’s Disability or death may be exercised by the Participant’s legal representative or representatives, by the person or persons entitled to do so pursuant to the Participant’s last
will and testament, or, if the Participant fails to make testamentary disposition of such Incentive Stock Option or dies intestate, by the person or persons entitled to receive the Incentive Stock Option pursuant to the applicable laws of descent
and distribution. 
 (c) Individual Dollar Limitation. The aggregate Fair Market Value (determined as of the time the Option is granted) of
all shares of Stock with respect to which Incentive Stock Options are first exercisable by a Participant in any calendar year may not exceed $100,000.00 or such other limitation as imposed by Section 422(d) of the Code, or any successor
provision. To the extent that Incentive Stock Options are first exercisable by a Participant in excess of such limitation, the excess shall be considered Non-Qualified Stock Options. 
 (d) Ten Percent Owners. An Incentive Stock Option shall be granted to any individual who, at the date of grant, owns stock possessing more than ten
percent of the total combined voting power of all classes of Stock of the Company only if such Option is granted at a price that is not less than 110% of Fair Market Value on the date of grant and the Option is exercisable for no more than five
years from the date of grant. 
 (e) Transfer Restriction. The Participant shall give the Company prompt notice of any disposition of shares
of Stock acquired by exercise of an Incentive Stock Option within (1) two years from the date of grant of such Incentive Stock Option or (2) one year after the transfer of such shares of Stock to the Participant. 
 (f) Expiration Of Incentive Stock Options. No Award of an Incentive Stock Option may be made pursuant to this Plan after the Expiration Date (as defined
in Section 13.2). 
 (g) Right To Exercise. During a Participant’s lifetime, an Incentive Stock Option may be exercised only by the
Participant. 
  

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 ARTICLE 6 
 RESTRICTED STOCK AWARDS 
 6.1 Grant of Restricted Stock. The Committee is authorized to make
Awards of Restricted Stock to any Participant selected by the Committee in such amounts and subject to such terms and conditions as determined by the Committee. All Awards of Restricted Stock shall be evidenced by a written Restricted Stock Award
Agreement. 
 6.2 Issuance and Restrictions. Restricted Stock shall be subject to such restrictions on transferability and other
restrictions as the Committee may impose (including, without limitation, limitations on the right to vote Restricted Stock or the right to receive dividends on the Restricted Stock). These restrictions may lapse separately or in combination at such
times, pursuant to such circumstances, in such installments, or otherwise, as the Committee determines at the time of the grant of the Award or thereafter. 
 6.3 Forfeiture. Except as otherwise determined by the Committee at the time of the grant of the Award or thereafter, upon termination of employment or service during the applicable restriction period,
Restricted Stock that is at that time subject to restrictions shall be forfeited; provided, however, that the Committee may provide in any Restricted Stock Award Agreement that restrictions or forfeiture conditions relating to Restricted
Stock will be waived in whole or in part in the event of terminations resulting from specified causes, and the Committee may in other cases waive in whole or in part restrictions or forfeiture conditions relating to Restricted Stock. 
 6.4 Certificates For Restricted Stock. Restricted Stock granted pursuant to the Plan may be evidenced in such manner as the Committee shall
determine. If certificates representing shares of Restricted Stock are registered in the name of the Participant, certificates must bear an appropriate legend referring to the terms, conditions, and restrictions applicable to such Restricted Stock,
and the Company may, at its discretion, retain physical possession of the certificate until such time as all applicable restrictions lapse. 
 ARTICLE 7 
 STOCK APPRECIATION RIGHTS 
 7.1 Grant of Stock Appreciation Rights. A Stock Appreciation Right may be granted to any Participant selected by the Committee. A Stock Appreciation Right may be granted (a) in connection and
simultaneously with the grant of an Option, (b) with respect to a previously granted Option, or (c) independent of an Option. A Stock Appreciation Right shall be subject to such terms and conditions not inconsistent with the Plan as the
Committee shall impose and shall be evidenced by an Award Agreement. 
 7.2 Coupled Stock Appreciation Rights. 
 (a) A Coupled Stock Appreciation Right (“CSAR”) shall be related to a particular Option and shall be
exercisable only when and to the extent the related Option is exercisable. 
  

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 (b) A CSAR may be granted to a Participant for no more than the number of shares subject to the
simultaneously or previously granted Option to which it is coupled. 
 (c) A CSAR shall entitle the Participant (or other person entitled to
exercise the Option pursuant to the Plan) to surrender to the Company unexercised a portion of the Option to which the CSAR relates (to the extent then exercisable pursuant to its terms) and to receive from the Company in exchange therefor an amount
determined by multiplying the difference obtained by subtracting the Option exercise price from the Fair Market Value of a share of Stock on the date of exercise of the CSAR by the number of shares of Stock with respect to which the CSAR shall have
been exercised, subject to any limitations the Committee may impose. 
 7.3 Independent Stock Appreciation Rights. 
 (a) An Independent Stock Appreciation Right (“ISAR”) shall be unrelated to any Option and shall have a term set by the Committee.
An ISAR shall be exercisable in such installments as the Committee may determine. An ISAR shall cover such number of shares of Stock as the Committee may determine. The exercise price per share of Stock subject to each ISAR shall be set by the
Committee; provided, however, that, the Committee in its sole and absolute discretion may provide that the ISAR may be exercised subsequent to a termination of employment or service, as applicable, or following a Change of Control of the Company, or
because of the Participant’s retirement, death or disability, or otherwise. 
 (b) An ISAR shall entitle the Participant (or other
person entitled to exercise the ISAR pursuant to the Plan) to exercise all or a specified portion of the ISAR (to the extent then exercisable pursuant to its terms) and to receive from the Company an amount determined by multiplying the difference
obtained by subtracting the exercise price per share of the ISAR from the Fair Market Value of a share of Stock on the date of exercise of the ISAR by the number of shares of Stock with respect to which the ISAR shall have been exercised, subject to
any limitations the Committee may impose. 
 7.4 Payment and Limitations on Exercise. 
 (a) Payment of the amounts determined under Section 7.2(c) and 7.3(b) above shall be in cash, in Stock (based on its Fair Market Value as of the date
the Stock Appreciation Right is exercised) or a combination of both, as determined by the Committee. 
 (b) To the extent any payment under
Section 7.2(c) or 7.3(b) is effected in Stock it shall be made subject to satisfaction of all provisions of Article 5 above pertaining to Options. 
  

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 ARTICLE 8 
 OTHER TYPES OF AWARDS 
 8.1 Performance Share Awards. Any Participant selected by the
Committee may be granted one or more Performance Share awards which may be denominated in a number of shares of Stock or in a dollar value of shares of Stock and which may be linked to any one or more of the Performance Criteria or other specific
performance criteria determined appropriate by the Committee, in each case on a specified date or dates or over any period or periods determined by the Committee. In making such determinations, the Committee shall consider (among such other factors
as it deems relevant in light of the specific type of award) the contributions, responsibilities and other compensation of the particular Participant. 
 8.2 Dividend Equivalents. 
 (a) Any Participant selected by the Committee may be granted Dividend
Equivalents based on the dividends declared on the shares of Stock that are subject to any Award, to be credited as of dividend payment dates, during the period between the date the Award is granted and the date the Award is exercised, vests or
expires, as determined by the Committee. Such Dividend Equivalents shall be converted to cash or additional shares of Stock by such formula and at such time and subject to such limitations as may be determined by the Committee. 
 (b) Dividend Equivalents granted with respect to Options or SARs that are intended to be Qualified Performance-Based Compensation shall be payable, with
respect to pre-exercise periods, regardless of whether such Option or SAR is subsequently exercised. 
 8.3 Stock Payments. Any
Participant selected by the Committee may receive Stock Payments in the manner determined from time to time by the Committee. The number of shares shall be determined by the Committee and may be based upon the Performance Criteria or other specific
performance criteria determined appropriate by the Committee, determined on the date such Stock Payment is made or on any date thereafter. 
 8.4 Restricted Stock Units. Any Participant selected by the Committee may be granted an award of Restricted Stock Units in the manner determined from time to time by the Committee. The number of Restricted Stock Units shall be
determined by the Committee and may be linked to the Performance Criteria or other specific performance criteria determined to be appropriate by the Committee, in each case on a specified date or dates or over any period or periods determined by the
Committee. Stock underlying a Restricted Stock Unit award will not be issued until the Restricted Stock Unit award has vested, pursuant to a vesting schedule or performance criteria set by the Committee. Unless otherwise provided by the Committee, a
Participant awarded Restricted Stock Units shall have no rights as a Company stockholder with respect to such Restricted Stock Units until such time as the Restricted Stock Units have vested and the Stock underlying the Restricted Stock Units has
been issued. 
 8.5 Term. The term of any Award of Performance Shares, Dividend Equivalents, Stock Payments or Restricted Stock Units
shall be set by the Committee in its discretion. 
  

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 8.6 Exercise or Purchase Price. The Committee may establish the exercise or purchase price of any
Award of Performance Shares, Restricted Stock Units or Stock Payments; provided, however, that such price shall not be less than the par value of a share of Stock, unless otherwise permitted by applicable state law. 
 8.7 Exercise Upon Termination of Employment or Service. An Award of Performance Shares, Dividend Equivalents, Restricted Stock Units and Stock
Payments shall only be exercisable or payable while the Participant is an Employee, consultant to the Company or a member of the Board, as applicable; provided, however, that the Committee in its sole and absolute discretion may provide that
an Award of Performance Shares, Dividend Equivalents, Stock Payments or Restricted Stock Units may be exercised or paid subsequent to a termination of employment or service, as applicable, or following a Change of Control of the Company, or because
of the Participant’s retirement, death or disability, or otherwise; provided, however, that any such provision with respect to Performance Shares shall be subject to the requirements of Section 162(m) of the Code that apply to Qualified
Performance-Based Compensation. 
 8.8 Form of Payment. Payments with respect to any Awards granted under this Article 8 shall be made
in cash, in Stock or a combination of both, as determined by the Committee. 
 8.9 Award Agreement. All Awards under this Article 8
shall be subject to such additional terms and conditions as determined by the Committee and shall be evidenced by a written Award Agreement. 
 ARTICLE 9 
 PERFORMANCE-BASED AWARDS 
 9.1 Purpose. The purpose of this Article 9 is to provide the Committee the ability to qualify Awards other than Options and SARs and that are granted pursuant to Articles 6 and 8 as Qualified Performance-Based
Compensation. If the Committee, in its discretion, decides to grant a Performance-Based Award to a Covered Employee, the provisions of this Article 9 shall control over any contrary provision contained in Articles 6 or 8; provided, however,
that the Committee may in its discretion grant Awards to Covered Employees that are based on Performance Criteria or Performance Goals but that do not satisfy the requirements of this Article 9. 
 9.2 Applicability. This Article 9 shall apply only to those Covered Employees selected by the Committee to receive Performance-Based Awards. The
designation of a Covered Employee as a Participant for a Performance Period shall not in any manner entitle the Participant to receive an Award for the period. Moreover, designation of a Covered Employee as a Participant for a particular Performance
Period shall not require designation of such Covered Employee as a Participant in any subsequent Performance Period and designation of one Covered Employee as a Participant shall not require designation of any other Covered Employees as a
Participant in such period or in any other period. 
 9.3 Procedures With Respect to Performance-Based Awards. To the extent necessary
to comply with the Qualified Performance-Based Compensation requirements of Section 

  

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162(m)(4)(C) of the Code, with respect to any Award granted under Articles 6 and 8 which may be granted to one or more Covered Employees, no later than
ninety (90) days following the commencement of any fiscal year in question or any other designated fiscal period or period of service (or such other time as may be required or permitted by Section 162(m) of the Code), the Committee shall,
in writing, (i) designate one or more Covered Employees, (ii) select the Performance Criteria applicable to the Performance Period, (iii) establish the Performance Goals, and amounts of such Awards, as applicable, which may be earned
for such Performance Period, and (iv) specify the relationship between Performance Criteria and the Performance Goals and the amounts of such Awards, as applicable, to be earned by each Covered Employee for such Performance Period. Following
the completion of each Performance Period, the Committee shall certify in writing whether the applicable Performance Goals have been achieved for such Performance Period. In determining the amount earned by a Covered Employee, the Committee shall
have the right to reduce or eliminate (but not to increase) the amount payable at a given level of performance to take into account additional factors that the Committee may deem relevant to the assessment of individual or corporate performance for
the Performance Period. 
 9.4 Payment of Performance-Based Awards. Unless otherwise provided in the applicable Award Agreement, a
Participant must be employed by the Company or a Subsidiary on the day a Performance-Based Award for such Performance Period is paid to the Participant. Furthermore, a Participant shall be eligible to receive payment pursuant to a Performance-Based
Award for a Performance Period only if the Performance Goals for such period are achieved. In determining the amount earned under a Performance-Based Award, the Committee may reduce or eliminate the amount of the Performance-Based Award earned for
the Performance Period, if in its sole and absolute discretion, such reduction or elimination is appropriate. 
 9.5 Additional
Limitations. Notwithstanding any other provision of the Plan, any Award which is granted to a Covered Employee and is intended to constitute Qualified Performance-Based Compensation shall be subject to any additional limitations set forth in
Section 162(m) of the Code (including any amendment to Section 162(m) of the Code) or any regulations or rulings issued thereunder that are requirements for qualification as qualified performance-based compensation as described in
Section 162(m)(4)(C) of the Code, and the Plan shall be deemed amended to the extent necessary to conform to such requirements. 
 ARTICLE 10 
 PROVISIONS APPLICABLE TO AWARDS 
 10.1 Stand-Alone and Tandem Awards. Awards granted pursuant to the Plan may, in the discretion of the Committee, be granted either alone, in
addition to, or in tandem with, any other Award granted pursuant to the Plan. Awards granted in addition to or in tandem with other Awards may be granted either at the same time as or at a different time from the grant of such other Awards.

 10.2 Award Agreement. Awards under the Plan shall be evidenced by Award Agreements that set forth the terms, conditions and
limitations for each Award which may include the term of an Award, the provisions applicable in the event the Participant’s employment or service terminates, and the Company’s authority to unilaterally or bilaterally amend, modify,
suspend, cancel or rescind an Award. 
  

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 10.3 Limits on Transfer. No right or interest of a Participant in any Award may be pledged,
encumbered, or hypothecated to or in favor of any party other than the Company or a Subsidiary, or shall be subject to any lien, obligation, or liability of such Participant to any other party other than the Company or a Subsidiary. Except as
otherwise provided by the Committee, no Award shall be assigned, transferred, or otherwise disposed of by a Participant other than by will or the laws of descent and distribution. The Committee by express provision in the Award or an amendment
thereto may permit an Award (other than an Incentive Stock Option) to be transferred to, exercised by and paid to certain persons or entities related to the Participant, including but not limited to members of the Participant’s family,
charitable institutions, or trusts or other entities whose beneficiaries or beneficial owners are members of the Participant’s family and/or charitable institutions, or to such other persons or entities as may be expressly approved by the
Committee, pursuant to such conditions and procedures as the Committee may establish. Any permitted transfer may be subject to the condition that the Committee receive evidence satisfactory to it that the transfer is being made for estate and/or tax
planning purposes (or to a “blind trust” in connection with the Participant’s termination of employment or service with the Company or a Subsidiary to assume a position with a governmental, charitable, educational or similar
non-profit institution) and on a basis consistent with the Company’s lawful issue of securities. 
 10.4 Beneficiaries.
Notwithstanding Section 10.3, a Participant may, in the manner determined by the Committee, designate a beneficiary to exercise the rights of the Participant and to receive any distribution with respect to any Award upon the Participant’s
death. A beneficiary, legal guardian, legal representative, or other person claiming any rights pursuant to the Plan is subject to all terms and conditions of the Plan and any Award Agreement applicable to the Participant, except to the extent the
Plan and Award Agreement otherwise provide, and to any additional restrictions deemed necessary or appropriate by the Committee. If the Participant is married and resides in a community property state, a designation of a person other than the
Participant’s spouse as his beneficiary with respect to more than 50% of the Participant’s interest in the Award shall not be effective without the prior written consent of the Participant’s spouse. If no beneficiary has been
designated or survives the Participant, payment shall be made to the person entitled thereto pursuant to the Participant’s will or the laws of descent and distribution. Subject to the foregoing, a beneficiary designation may be changed or
revoked by a Participant at any time provided the change or revocation is filed with the Committee. 
 10.5 Stock Certificates.
Notwithstanding anything herein to the contrary, the Company shall not be required to issue or deliver any certificates evidencing shares of Stock pursuant to the exercise of any Award, unless and until the Board has determined, with advice of
counsel, that the issuance and delivery of such certificates is in compliance with all applicable laws, regulations of governmental authorities and, if applicable, the requirements of any exchange on which the shares of Stock are listed or traded.
All Stock certificates delivered pursuant to the Plan are subject to any stop-transfer orders and other restrictions as the Committee deems necessary or advisable to comply with federal, state, or foreign jurisdiction, securities or other laws,
rules and regulations and the rules of any national securities exchange or automated quotation system on which the Stock is listed, quoted, or traded. The Committee may place legends on any Stock certificate to reference restrictions applicable to
the Stock. In addition to the terms and conditions provided herein, the Board may require that a Participant make such reasonable covenants, agreements, and representations as the Board, in its discretion, deems 

  

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advisable in order to comply with any such laws, regulations, or requirements. The Committee shall have the right to require any Participant to comply with
any timing or other restrictions with respect to the settlement or exercise of any Award, including a window-period limitation, as may be imposed in the discretion of the Committee. 
 ARTICLE 11 
 CHANGES IN CAPITAL STRUCTURE 
 11.1 Adjustments. In the event of any stock dividend, stock split, combination or exchange of shares, merger, consolidation, spin-off,
recapitalization or other distribution (other than normal cash dividends) of Company assets to stockholders, or any other change affecting the shares of Stock or the share price of the Stock, the Committee shall make such proportionate adjustments,
if any, as the Committee in its discretion may deem appropriate to reflect such change with respect to (i) the aggregate number and type of shares that may be issued under the Plan (including, but not limited to, adjustments of the limitations
in Sections 3.1 and 3.3); (ii) the terms and conditions of any outstanding Awards (including, without limitation, any applicable performance targets or criteria with respect thereto); and (iii) the grant or exercise price per share for any
outstanding Awards under the Plan. Any adjustment affecting an Award intended as Qualified Performance-Based Compensation shall be made consistent with the requirements of Section 162(m) of the Code. 
 11.2 Effect of a Change of Control. If a Change of Control occurs and a Participant’s Awards are not assumed by the surviving or successor
entity or its parent or Subsidiary and such successor does not substitute substantially similar awards for those outstanding under the Plan, such Awards shall become fully exercisable and/or payable as applicable, and all forfeiture restrictions on
such Awards shall lapse. Upon, or in anticipation of, a Change of Control, the Committee may cause any and all Awards outstanding hereunder to terminate at a specific time in the future and shall give each Participant the right to exercise such
Awards during a period of time as the Committee, in its sole and absolute discretion, shall determine. The Committee shall have sole discretion to determine whether an Award has been assumed by the surviving or successor entity or its parent or
Subsidiary or whether such successor has substituted substantially similar awards for those outstanding under the Plan in connection with a Change of Control. 
 11.3 Outstanding Awards – Certain Mergers. Subject to any required action by the stockholders of the Company, in the event that the Company shall be the surviving corporation in any merger or consolidation
(except a merger or consolidation as a result of which the holders of shares of Stock receive securities of another corporation), each Award outstanding on the date of such merger or consolidation shall pertain to and apply to the securities that a
holder of the number of shares of Stock subject to such Award would have received in such merger or consolidation. 
 11.4 Outstanding
Awards – Other Changes. In the event of any other change in the capitalization of the Company or corporate change other than those specifically referred to in this Article 11, the Committee may, in its absolute discretion, make such
adjustments in the number and class of shares subject to Awards outstanding on the date on which such change occurs and in the per share grant or exercise price of each Award as the Committee may consider appropriate to prevent dilution or
enlargement of rights. 
  

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 11.5 No Other Rights. Except as expressly provided in the Plan, no Participant shall have any
rights by reason of any subdivision or consolidation of shares of stock of any class, the payment of any dividend, any increase or decrease in the number of shares of stock of any class or any dissolution, liquidation, merger, or consolidation of
the Company or any other corporation. Except as expressly provided in the Plan or pursuant to action of the Committee under the Plan, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any
class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number of shares of Stock subject to an Award or the grant or exercise price of any Award. 
 ARTICLE 12 
 ADMINISTRATION 
 12.1 Committee. Unless and until the Board delegates administration to a Committee as set forth below, the Plan shall be administered by the
Board. The Board may delegate administration of the Plan to a Committee or Committees of one or more members of the Board, and the term “Committee” shall apply to any person or persons to whom such authority has been delegated. If
administration is delegated to a Committee, the Committee shall have, in connection with the administration of the Plan, the powers theretofore possessed by the Board, including the power to delegate to a subcommittee any of the administrative
powers the Committee is authorized to exercise (and references in this Plan to the Board shall thereafter be to the Committee or subcommittee), subject, however, to such resolutions, not inconsistent with the provisions of the Plan, as may be
adopted from time to time by the Board. Notwithstanding the foregoing, however, from and after the Public Trading Date, a Committee of the Board shall administer the Plan and the Committee shall consist solely of two or more members of the Board
each of whom is both an “outside director,” within the meaning of Section 162(m) of the Code, and a Non-Employee Director. Within the scope of such authority, the Board or the Committee may (i) delegate to a committee of one or
more members of the Board who are not “outside directors,” within the meaning of Section 162(m) of the Code the authority to grant awards under the Plan to eligible persons who are either (1) not then “covered
employees,” within the meaning of Section 162(m) of the Code and are not expected to be “covered employees” at the time of recognition of income resulting from such award or (2) not persons with respect to whom the Company
wishes to comply with Section 162(m) of the Code and/or (ii) delegate to a committee of one or more members of the Board who are not Non-Employee Directors, the authority to grant awards under the Plan to eligible persons who are not then
subject to Section 16 of the Exchange Act. The Board may abolish the Committee at any time and/or revest in the Board the administration of the Plan. Appointment of Committee members shall be effective upon acceptance of appointment. Committee
members may resign at any time by delivering written notice to the Board. Vacancies in the Committee may only be filled by the Board. 
 12.2
Action by the Committee. A majority of the Committee shall constitute a quorum. The acts of a majority of the members present at any meeting at which a quorum is present, and acts approved in writing by a majority of the Committee in lieu of
a meeting, shall be deemed the acts of the Committee. Each member of the Committee is entitled to, in good faith, rely or act upon any report or other information furnished to that member by any officer or 

  

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other employee of the Company or any Subsidiary, the Company’s independent certified public accountants, or any executive compensation consultant or
other professional retained by the Company to assist in the administration of the Plan. 
 12.3 Authority of Committee. Subject to any
specific designation in the Plan, the Committee has the exclusive power, authority and discretion to: 
 (a) Designate Participants to receive
Awards; 
 (b) Determine the type or types of Awards to be granted to each Participant; 
 (c) Determine the number of Awards to be granted and the number of shares of Stock to which an Award will relate; 
 (d) Determine the terms and conditions of any Award granted pursuant to the Plan, including, but not limited to, the exercise price, grant price, or
purchase price, any reload provision, any restrictions or limitations on the Award, any schedule for lapse of forfeiture restrictions or restrictions on the exercisability of an Award, and accelerations or waivers thereof, any provisions related to
non-competition and recapture of gain on an Award, based in each case on such considerations as the Committee in its sole discretion determines; provided, however, that the Committee shall not have the authority to accelerate the vesting or
waive the forfeiture of any Performance-Based Awards; 
 (e) Determine whether, to what extent, and pursuant to what circumstances an Award
may be settled in, or the exercise price of an Award may be paid in, cash, Stock, other Awards, or other property, or an Award may be canceled, forfeited, or surrendered; 
 (f) Prescribe the form of each Award Agreement, which need not be identical for each Participant; 
 (g)
Decide all other matters that must be determined in connection with an Award; 
 (h) Establish, adopt, or revise any rules and regulations as
it may deem necessary or advisable to administer the Plan; 
 (i) Interpret the terms of, and any matter arising pursuant to, the Plan or any
Award Agreement; and 
 (j) Make all other decisions and determinations that may be required pursuant to the Plan or as the Committee deems
necessary or advisable to administer the Plan. 
 12.4 Decisions Binding. The Committee’s interpretation of the Plan, any Awards
granted pursuant to the Plan, any Award Agreement and all decisions and determinations by the Committee with respect to the Plan are final, binding, and conclusive on all parties. 
  

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 ARTICLE 13 
 EFFECTIVE AND EXPIRATION DATE 
 13.1 Effective Date. The Plan is effective as of the date of
its initial adoption by the Board (the “Effective Date”); provided that the Plan has been approved by the Company’s stockholders prior to such date. 
 13.2 Expiration Date. The Plan will expire on, and no Award may be granted pursuant to the Plan after, the earlier of the tenth anniversary of
(i) the date this Plan is approved by the Board or (ii) the date this Plan is approved by the Company’s stockholders or (the “Expiration Date”). Any Awards that are outstanding on the Expiration Date shall
remain in force according to the terms of the Plan and the applicable Award Agreement. Each Award Agreement shall provide that it will expire on the tenth anniversary of the date of grant of the Award to which it relates. 
 ARTICLE 14 
 AMENDMENT, MODIFICATION,
AND TERMINATION 
 14.1 Amendment, Modification, and Termination. With the approval of the Board, at any time and from time to
time, the Committee may terminate, amend or modify the Plan; provided, however, that, to the extent necessary and desirable to comply with any applicable law, regulation, or stock exchange rule, the Company shall obtain stockholder approval
of any Plan amendment in such a manner and to such a degree as required. Notwithstanding any provision in this Plan to the contrary, no Award may be amended to reduce the price per share of the Stock subject to such Award below the exercise or
purchase price, as applicable, as of the date the Award is granted without stockholder approval. 
 14.2 Awards Previously Granted. No
termination, amendment, or modification of the Plan shall adversely affect in any material way any Award previously granted pursuant to the Plan without the prior written consent of the Participant. 
 ARTICLE 15 
 GENERAL PROVISIONS

 15.1 No Rights to Awards. No Participant, employee, or other person shall have any claim to be granted any Award pursuant to
the Plan, and neither the Company nor the Committee is obligated to treat Participants, employees, and other persons uniformly. 
 15.2 No
Stockholders Rights. No Award gives the Participant any of the rights of a stockholder of the Company unless and until shares of Stock are in fact issued to such person in connection with such Award. 
 15.3 Withholding. The Company or any Subsidiary shall have the authority and the right to deduct or withhold, or require a Participant to remit to
the Company, an amount sufficient to satisfy federal, state, local and foreign taxes (including the Participant’s FICA obligation) required by law to be withheld with respect to any taxable event concerning a Participant arising as a result of
this Plan. The Committee may in its discretion and in satisfaction of the foregoing requirement allow a Participant to elect to have the Company withhold shares of Stock otherwise issuable under an Award (or allow the return of shares of Stock)
having a Fair Market Value equal to the sums required to be withheld. Notwithstanding any other provision of the Plan, the number of shares of Stock which may be withheld with 

  

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respect to the issuance, vesting, exercise or payment of any Award (or which may be repurchased from the Participant of such Award within six months after
such shares of Stock were acquired by the Participant from the Company) in order to satisfy the Participant’s federal, state, local and foreign income and payroll tax liabilities with respect to the issuance, vesting, exercise or payment of the
Award shall be limited to the number of shares which have a Fair Market Value on the date of withholding or repurchase equal to the aggregate amount of such liabilities based on the minimum statutory withholding rates for federal, state, local and
foreign income tax and payroll tax purposes that are applicable to such supplemental taxable income. 
 15.4 No Right to Employment or
Services. Nothing in the Plan or any Award Agreement shall interfere with or limit in any way the right of the Company or any Subsidiary to terminate any Participant’s employment or services at any time, nor confer upon any Participant any
right to continue in the employ or service of the Company or any Subsidiary. 
 15.5 Unfunded Status of Awards. The Plan is intended
to be an “unfunded” plan for incentive compensation. With respect to any payments not yet made to a Participant pursuant to an Award, nothing contained in the Plan or any Award Agreement shall give the Participant any rights that are
greater than those of a general creditor of the Company or any Subsidiary. 
 15.6 Indemnification. To the extent allowable pursuant
to applicable law, each member of the Committee or of the Board shall be indemnified and held harmless by the Company from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by such member in connection with or
resulting from any claim, action, suit, or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action or failure to act pursuant to the Plan and against and from any and all amounts paid by him or her
in satisfaction of judgment in such action, suit, or proceeding against him or her, provided he or she gives the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on
his or her own behalf. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled pursuant to the Company’s Certificate of Incorporation or Bylaws, as a matter of
law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless. 
 15.7 Relationship to Other
Benefits. No payment pursuant to the Plan shall be taken into account in determining any benefits pursuant to any pension, retirement, savings, profit sharing, group insurance, welfare or other benefit plan of the Company or any Subsidiary
except to the extent otherwise expressly provided in writing in such other plan or an agreement thereunder. 
 15.8 Expenses. The
expenses of administering the Plan shall be borne by the Company and its Subsidiaries. 
 15.9 Titles and Headings. The titles and
headings of the Sections in the Plan are for convenience of reference only and, in the event of any conflict, the text of the Plan, rather than such titles or headings, shall control. 
  

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 15.10 Fractional Shares. No fractional shares of Stock shall be issued and the Committee shall
determine, in its discretion, whether cash shall be given in lieu of fractional shares or whether such fractional shares shall be eliminated by rounding up or down as appropriate. 
 15.11 Limitations Applicable to Section 16 Persons. Notwithstanding any other provision of the Plan, the Plan, and any Award granted or
awarded to any Participant who is then subject to Section 16 of the Exchange Act, shall be subject to any additional limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to
Rule 16b-3 of the Exchange Act) that are requirements for the application of such exemptive rule. To the extent permitted by applicable law, the Plan and Awards granted or awarded hereunder shall be deemed amended to the extent necessary to conform
to such applicable exemptive rule. 
 15.12 Government And Other Regulations. The obligation of the Company to make payment of awards
in Stock or otherwise shall be subject to all applicable laws, rules, and regulations, and to such approvals by government agencies as may be required. The Company shall be under no obligation to register pursuant to the Securities Act of 1933, as
amended, any of the shares of Stock paid pursuant to the Plan. If the shares paid pursuant to the Plan may in certain circumstances be exempt from registration pursuant to the Securities Act of 1933, as amended, the Company may restrict the transfer
of such shares in such manner as it deems advisable to ensure the availability of any such exemption. 
 15.13 Governing Law. The Plan
and all Award Agreements shall be construed in accordance with and governed by the laws of the State of Delaware. 
  

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 ARTHROCARE CORPORATION 
 AMENDED AND RESTATED 2003 INCENTIVE STOCK PLAN 
 APPENDIX 
 FOR AUSTRIA 
 1. Application.
This Appendix shall apply in relation to Awards granted to Participants residing and providing services in Austria. 
 2. Definitions.
Definitions as set out in Article 2 of the Plan are applicable to this Appendix. 
 3. Eligible Employees. The Committee ́s
discretion with respect to Articles 11 and 12 of the Plan shall be exercised in such a way as to comply with Austrian law, in particular with the labour law principle of equal treatment (arbeitsrechtlicher Gleichbehandlungsgrundsatz) and with
the prohibition of discrimination (Diskriminierungsverbot). 
 4. Ex-gratia benefit. The grant of
an Award is an ex-gratia benefit (freiwillige Leistung). It is granted without any obligation; and even repeated granting will not create such obligation. 
 5. Changes in Capital Structure. The Committee ́s discretion with respect to any adjustments pursuant to Article 11 will be exercised taking into fair consideration the circumstances why such adjustment is
deemed appropriate. 
 6. Committee ́s Decisions. The decisions of the Committee in connection with any interpretation of the
Plan or in any dispute relating to an Award or other matters relating to the Plan shall be final and conclusive and binding on the relevant parties. It may only be revised by competent courts. 
 7. Governing Law. The Plan shall be governed by and construed in accordance with the laws of the State of Delaware but mandatory provisions of
Austrian law may be applied. 
  

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 ARTHROCARE CORPORATION 
 AMENDED AND RESTATED 2003 INCENTIVE STOCK PLAN 
 APPENDIX 
 FOR COSTA RICA 
 1. Application.
This Appendix shall apply in relation to Awards granted to Participants residing and providing services in Costa Rica. 
 2.
Definitions. Definitions as set out in Article 2 of the Plan are applicable to this Appendix. 
 3. Taxes/Withholding. Each
Participant shall be liable for any employer’s Costa Rican taxes or contributions to any government agency, excluding social security obligations, in respect of the grant, exercise, release or assignment of any Award or the acquisition, sale or
other disposition of any Stock issued upon exercise of an Award and the Company may require, as a condition of exercise, that any liability it or any Parent or Subsidiary has to account for Costa Rican income or salary taxes or contributions to any
governmental agency, excluding social security obligations, or any other federal, state or local tax withholding obligation relating to the exercise or acquisition of Stock under an Award granted pursuant to this Plan be satisfied by any of the
following means (in addition to the Company’s or any Parent’s or Subsidiary’s right to withhold from any compensation paid or payable to the Participant an amount sufficient to satisfy such taxes and any withholding obligations) or by
a combination of such means: (i) the Participant’s tender of a cash payment in an amount sufficient to satisfy such taxes and any withholding obligations; (ii) the Participant’s authorization of the Company or any Parent or
Subsidiary to withhold shares of Stock from the shares of Stock otherwise issuable to the Participant as a result of the exercise or acquisition of Stock under the Award having a Fair Market Value equal to an amount sufficient to satisfy such taxes
and any withholding obligations; provided, however, that no shares of Stock will be withheld with a value exceeding the minimum amount of tax required to be withheld by law; or (iii) the Participant’s delivery of owned and unencumbered
shares of Stock having a Fair Market Value equal to an amount sufficient to satisfy such taxes and any withholding obligations. 
 4.
Governing Law. The Plan shall be governed by and construed in accordance with the laws of the State of Delaware but mandatory provisions of Costa Rican law may be applied. 
  

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 ARTHROCARE CORPORATION 
 AMENDED AND RESTATED 2003 INCENTIVE STOCK PLAN 
 APPENDIX 
 FOR FRANCE 
 1. Application.
This Appendix shall apply in relation to Awards granted to Participants residing and providing services in France. 
 2. Definitions.
Definitions as set out in Article 2 of the Plan are applicable to this Appendix. 
 3. Eligible Employees. Options may only be granted
to Employees who, on the date of grant of such options, do not own Stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary. Options may not be granted to consultants
or Directors. Restricted Stock may not be issued to Employees residing and providing services in France. 
 4. Date of Grant. The date
of grant for purposes of Options granted to Employees residing and providing services in France means the date on which the Committee makes the determination granting the Options to an Employee and determines the number of Options granted and the
per share exercise price for the Stock to be issued pursuant to exercise of the Option. 
 5. Time of Granting of Options. 

(a) If the Stock is listed on any established stock exchange or a national market system, Options cannot be granted (i) during the ten
(10) trading sessions preceding and following the date on which the consolidated accounts or annual accounts of the Company are published and (ii) during a period (x) starting from the date on which the corporate bodies of the Company
become aware of any information which, if published, could significantly affect the Company’s market price and (y) ending at the close of the tenth (10th) trading session following the publication of the information. 
 (b) If the Stock is listed on any established stock exchange or a national market system, no Option may be granted less than twenty trading sessions
after a coupon giving a right to a dividend or to a capital increase has been detached from the shares of Common Stock. 
 6. Definition
of Fair Market Value. The Fair Market Value of a share of Stock shall be determined according to the provisions of the Plan, subject to the following limitations: 
 (a) If the Stock is listed on any established stock exchange or a national market system, including, without limitation, the Nasdaq National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, or
(b) if the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, the Fair Market Value shall 

  

 23 








 
in no case be less than eighty per cent (80%) of the average of the closing sales price for a Share as quoted on said stock exchange market during the
twenty market trading days prior to the day of the Committee’s decision to grant the Options; or 
 (b) In the absence of an established
market for the Stock, the Fair Market Value thereof shall be determined in good faith by the Committee in connection with the price held at the time of the last operation affecting the share capital of the Company, unless otherwise decided by the
Committee by a well-founded decision, and in consideration of the applicable laws and regulations applicable at this date. 
 7.
Limitations on Exercise and Transfer. 
 (a) No Option may be exercised prior to the expiration of a minimum period of one year
following the date of grant. In addition, the shares of Stock acquired as a result of the exercise of all or part of the Option cannot be transferred by the Participant before the expiration of a three-year period which shall start running as from
the expiration of the above mentioned period of one year. 
 (b) The Stock acquired as a result of the exercise of an Option may however be
immediately transferred upon the occurrence of one of the events referred to under Article 91-bis of appendix II to the French General Tax Code, i.e., the dismissal, retirement, invalidity or death of the Participant. In case of dismissal or
retirement, the exception to the non-transferability deadline of the Stock shall be subject to the condition that the Option shall have been exercised at least three (3) months before the dismissal or the retirement. 
 8. Adjustments to Exercise Price. Any adjustment made to the exercise price of an Option and/or the number of Options shall not provide more
advantages to the Participant than those which would result from any adjustments that would be made in accordance with the provisions of Article L 225-181 of the French business code (Code de Commerce). 
 9. Consideration. The consideration to be paid for the Stock to be issued upon exercise of an Option may consist of (a) cash, (b) check,
or (c) such other consideration and method of payment for the issuance of Stock to the extent permitted by applicable laws. 
 10.
Nontransferability. Options may not be transferred in any manner. Options may nevertheless be transferred to the heirs of a Participant and exercised by them within a period of six (6) months following the death of such Participant.

 11. Ex-gratia benefit. The grant of an Award is an ex-gratia benefit. It is granted without any
obligation; and even repeated granting will not create such obligation. 
 12. Governing Law. The Plan shall be governed by and
construed in accordance with the laws of the State of Delaware but mandatory provisions of French law may be applied. 
  

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 ARTHROCARE CORPORATION 
 AMENDED AND RESTATED 2003 INCENTIVE STOCK PLAN 
 APPENDIX 
 FOR GERMANY 
 1. Application.
This Appendix shall apply in relation to Awards granted to Participants residing and providing services in Germany. 
 2. Definitions.
Definitions as set out in Article 2 of the Plan are applicable to this Appendix. 
 3. Eligible Employees. The Committee’s
discretion with respect to Articles 11 and 12 of the Plan will be exercised in a way complying with German law, in particular with the labour law principle of equal treatment (arbeitsrechtlicher Gleichbehandlungsgrundsatz) and with the
prohibition of discrimination (Diskriminierungsverbot). 
 4. Ex-gratia benefit. The grant of an
Award is an ex-gratia benefit (freiwillige Leistung). It is granted without any obligation; and even repeated granting will not create such obligation. 
 5. Changes in Capital Structure. The Commitee’s discretion with respect to any adjustments pursuant to Article 11 will be exercised taking into fair consideration the circumstances why such adjustment is
deemed appropriate. 
 6. Taxes/Withholding. Capital gains realized upon exercise of an Award are deemed to be a benefit in kind
subject to income tax. Such gain is subject to the progressive income tax rate (19.9% to 48.5%) plus a solidarity surcharge of 5.5% thereon. The capital gain realized upon exercise of an option is determined by the difference between the fair market
value of the shares at the time the options are exercised and the purchase price. The fair market value is defined on the basis of the prices quoted on the respective stock exchange or, if the shares are not listed, according to the so-called
“Stuttgart appraisal formula” for unlisted shares of corporations. 
 The Company shall deduct wage tax from the gross salary of
the Participant. Additionally, the usual social security contributions, up to the relevant maximum amount, have to be paid on the difference between the exercise price and the market value at the time the Award is exercised. If the regular salary of
the Participant is not sufficient for the Company to deduct wage tax and pay such tax to the competent tax office, the Company shall request the Participant to pay the tax to the tax office directly. The Company shall inform the tax office of such
request. 
 Capital gains from the sale of Stock are only subject to taxation, (i) if the sale takes place within one year from the
purchase or (ii) if the Participant (or the predecessor in the case of a transfer of Stock without consideration), at any time during the five years preceding the sale, directly or indirectly held or holds a participation of 1% or more. Capital
gains deriving from a disposal of Stock are tax exempt for Participants if the total gains from private disposal 

  

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transactions (private Veräußerungsgeschäfte) in the respective calendar year amounts to less than € 512 p.a. and per person.
To the extent that capital gains upon sale of Stock are subject to German income tax, 50% of such capital gains are subject to the progressive income tax rate plus a solidarity surcharge of 5.5% thereon. 
 In principle, 50% of the gross dividends received by Participants will be subject to income tax at the progressive tax rate plus solidarity surcharge.
Investment income received by the Participant, including dividends and interest, after deduction of half the income-related expenses in economic connection with the dividends or the standard amount for income-related expenses of € 51
(€ 102 for married couples filing jointly), are tax-free up to the maximum amount of tax-free savings allowances of € 1,550 (or € 3,100 for married couples filing jointly). 
 7. Insider Dealings. Germany has adopted the EC-Directive on Insider Dealings. Insiders are, among others, persons who by virtue of their position
as members of managing or supervisory boards of the issuing company or its subsidiaries or by their profession or work, have knowledge of not publicly known facts which may influence the market value of the securities issued. Insiders are subject to
certain restrictions in selling or purchasing such securities or otherwise making use of their insider knowledge. Anyone in breach of those provisions will be liable to imprisonment or fine. 
 8. Committee’s Decisions. The decisions of the Committee in connection with any interpretation of the Plan or in any dispute relating to an
Award or other matters relating to the Plan shall be final and conclusive and binding on the relevant parties. It may only be revised by competent courts. 
 9. Governing Law. The Plan shall be governed by and construed in accordance with the laws of the State of Delaware but mandatory provisions of German law may be applied. 
  

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 ARTHROCARE CORPORATION 
 AMENDED AND RESTATED 2003 INCENTIVE STOCK PLAN 
 APPENDIX 
 FOR ITALY 
 1. Application. This
Appendix shall apply in relation to Awards granted to Participants residing and providing services in Italy. 
 2. Definitions.
Definitions as set out in Article 2 of the Plan are applicable to this Appendix. 
 3. Committee Discretion. The Committee ́s
discretion with respect to the Plan will be exercised in a way complying with the requirements under Italian law that awards under the Plan be offered on a non-discriminatory basis. 
 4. Ex-gratia benefit. The grant of an Award is an ex-gratia benefit. It is granted without any obligation; and
even repeated granting will not create such obligation. 
 5. Privacy. The processing of an Participant’s personal data shall be
handled in such a manner as to comply with the Italian Data Protection Act. 
 6. Governing Law. The Plan shall be governed by and
construed in accordance with the laws of the State of Delaware but mandatory provisions of Italian law may be applied. 
  

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 ARTHROCARE CORPORATION 
 AMENDED AND RESTATED 2003 INCENTIVE STOCK PLAN 
 APPENDIX 
 FOR SWEDEN 
 1. Application.
This Appendix shall apply in relation to Awards granted to Participants residing and providing services in Sweden. 
 2. Definitions.
Definitions as set out in Article 2 of the Plan are applicable to this Appendix. 
 3. Taxes/Withholding. In the Committee’s
discretion, each Participant may be liable for any social charges payable by the Participant’s employer in respect of the exercise of an Award and, as a condition of exercise of the Award, any liability that the Company or any Parent or
Subsidiary has to account for Swedish social charges or any other federal, state or local tax withholding obligation relating to the exercise or acquisition of Stock pursuant to the Award shall be satisfied by Participant through one or a
combination of the following means, in the discretion of the Committee: 
 (i) the withholding by the Company or any Parent or Subsidiary from
any compensation paid or payable to the Participant an amount sufficient to satisfy such social charges and any withholding obligations; 
 (ii) the Participant’s tender of a cash payment in an amount sufficient to satisfy such social charges and any withholding obligations; 
 (iii) the Participant’s authorization of the Company or any Parent or Subsidiary to withhold shares of Stock from the shares of Stock otherwise issuable to the Participant as a result of the exercise or
acquisition of Stock under the award having a Fair Market Value equal to an amount sufficient to satisfy such social charges and any withholding obligations; provided, however, that no shares of Stock will be withheld with a value exceeding the
minimum amount of tax required to be withheld by law; or 
 (iv) the Participant’s delivery of owned and unencumbered shares of Stock
having a Fair Market Value equal to an amount sufficient to satisfy such social charges and any withholding obligations. 
 Each Participant
shall sign a set-off consent regarding the foregoing withholding provisions. 
 4. Privacy. The processing of a Participant’s
personal data shall be handled in such a manner as to comply with the Swedish Data Act. 
 5. Governing Law. The Plan shall be
governed by and construed in accordance with the laws of the State of Delaware but mandatory provisions of Swedish law may be applied. 
  

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 ARTHROCARE CORPORATION 
 AMENDED AND RESTATED 2003 INCENTIVE STOCK PLAN 
 APPENDIX 
 FOR UNITED KINGDOM 
 1.
Application. This Appendix shall apply in relation to Awards granted to Participants residing and providing services in the United Kingdom. 
 2. Definitions. Definitions as set out in Article 2 of the Plan are applicable to this Appendix. 
 3.
Taxes/Withholding. In the Committee’s discretion, each Participant may be liable for any employer’s United Kingdom National Insurance Contribution in respect of the grant, exercise, release or assignment of any Award or the
acquisition, sale or other disposition of any Stock issued upon exercise of an Award and the Company may require, as a condition of grant, exercise or settlement of an Award, that any liability it or any Parent or Subsidiary has to account for
United Kingdom income tax under the Pay As You Earn system and employer or employee National Insurance Contributions or any other federal, state or local tax withholding obligation relating to the exercise or acquisition of Stock under an Award
granted pursuant to this Plan be satisfied by any of the following means (in addition to the Company’s or any Parent’s or Subsidiary’s right to withhold from any compensation paid or payable to the Participant an amount sufficient to
satisfy such withholding obligations) or by a combination of such means: (i) the Participant’s tender of a cash payment in an amount sufficient to satisfy such withholding obligations; (ii) the Participant’s authorization of the
Company or any Parent or Subsidiary to withhold shares of Stock from the shares of Stock otherwise issuable to the Participant as a result of the exercise or acquisition of Stock under the Award having a Fair Market Value equal to an amount
sufficient to satisfy such withholding obligations; provided, however, that no shares of Stock will be withheld with a value exceeding the minimum amount of tax required to be withheld by law; or (iii) the Participant’s delivery of owned
and unencumbered shares of Stock having a Fair Market Value equal to an amount sufficient to satisfy such withholding obligations. 
 4.
Governing Law. The Plan shall be governed by and construed in accordance with the laws of the State of Delaware but mandatory provisions of United Kingdom law may be applied. 
  

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