Document:

exv10w6

Exhibit 10.6

EXECUTION VERSION

The Royal Bank of Scotland

plc c/o RBS Securities Inc.

600 Washington Blvd.

Stamford, CT 06901

June 9, 2011

	 	 	 

	To:

	 	Integra LifeSciences Holdings Corporation
	 

	 	311 Enterprise Drive
	 

	 	Plainsboro, NJ 08536
	 

	 	Attention: Treasurer
	 

	 	Telephone No.: (609) 275-0500
	 

	 	Facsimile No.: (609) 750-4264
	 
	 	 
	Re:

	 	Base Call Option Transaction

     The purpose of this letter agreement (this “Confirmation”) is to confirm the terms and
conditions of the call option transaction entered into between The Royal Bank of Scotland plc
(“Dealer”), acting through RBS Securities Inc., as its agent, and Integra LifeSciences Holdings
Corporation (“Counterparty”) as of the Trade Date specified below (the “Transaction”). This letter
agreement constitutes a “Confirmation” as referred to in the ISDA Master Agreement specified below.
This Confirmation shall replace any previous agreements and serve as the final documentation for
the Transaction.

     The definitions and provisions contained in the 2002 ISDA Equity Derivatives Definitions (the
"Equity Definitions”), as published by the International Swaps and Derivatives Association, Inc.
(“ISDA”), are incorporated into this Confirmation. In the event of any inconsistency between the
Equity Definitions and this Confirmation, this Confirmation shall govern. Certain defined terms
used herein are based on terms that are defined in the Offering Memorandum dated June 9, 2011 (the
"Offering Memorandum”) relating to the 1.625% Convertible Senior Notes due 2016 (as originally
issued by Counterparty, the “Convertible Notes” and each USD 1,000 principal amount of Convertible
Notes, a “Convertible Note”) issued by Counterparty in an aggregate initial principal amount of USD
200,000,000 (as increased by up to an aggregate principal amount of USD 30,000,000 if and to the
extent that the Representatives (as defined herein) exercise their option to purchase additional
Convertible Notes pursuant to the Purchase Agreement (as defined herein)) pursuant to an Indenture
to be dated June 15, 2011 between Counterparty and Wells Fargo Bank, National Association, as
trustee (the “Indenture”). In the event of any inconsistency between the terms defined in the
Offering Memorandum, the Indenture and this Confirmation, this Confirmation shall govern. The
parties acknowledge that this Confirmation is entered into on the date hereof with the
understanding that (i) definitions set forth in the Indenture that are also defined herein by
reference to the Indenture and (ii) sections of the Indenture that are referred to herein will
conform to the descriptions thereof in the Offering Memorandum. For the avoidance of doubt,
references herein to sections of the Indenture are based on the draft of the Indenture most
recently reviewed by the parties at the time of execution of this Confirmation. If any relevant
sections of the Indenture are changed, added or renumbered following execution of this Confirmation
but prior to the execution of the Indenture, the parties will amend this Confirmation in good faith
to preserve the economic intent of the parties based on the draft of the Indenture so reviewed. The
parties further acknowledge that references to the Indenture herein are references to the Indenture
as in effect on the date of its execution and if the Indenture is amended following its execution,
any such amendment will be disregarded for purposes of this Confirmation unless the parties agree
otherwise in writing.

     Each party is hereby advised, and each such party acknowledges, that the other party has
engaged in, or refrained from engaging in, substantial financial transactions and has taken other
material actions in reliance upon the parties’ entry into the Transaction to which this
Confirmation relates on the terms and conditions set forth below.

1. This Confirmation evidences a complete and binding agreement between Dealer and Counterparty as
to the terms of the Transaction to which this Confirmation relates. This Confirmation shall
supplement,
form a part of, and be subject to an agreement in the form of the 2002 ISDA Master Agreement (the
“Agreement”) as if Dealer and Counterparty had executed an agreement in such form (but without any
Schedule except for (i) the election of the

 

 

laws of the State of New York as the governing law (without reference to choice of law doctrine);
(ii) the election that the “Cross Default” provisions of Section 5(a)(vi) of the Agreement shall
apply to both parties, provided that (a) the phrase “or becoming capable at such time of being
declared” shall be deleted from clause (1) of such Section 5(a)(vi); (b) the following language
shall be added to the end thereof: “Notwithstanding the foregoing, a default under subsection (2)
hereof shall not constitute an Event of Default if (i) the default was caused solely by error or
omission of an administrative or operational nature; (ii) funds were available to enable the party
to make the payment when due; and (iii) the payment is made within two Local Business Days of such
party’s receipt of written notice of its failure to pay.”; (c) “Specified Indebtedness” will have
the meaning specified in Section 14 of the Agreement, except that such term shall not include
obligations in respect of deposits received in the ordinary course of a party’s banking business;
and (d) “Threshold Amount” means in relation to Dealer, three percent (3%) of shareholders’ equity
of Dealer and in relation to Counterparty, USD 25 million.)) on the Trade Date. In the event of any
inconsistency between provisions of the Agreement and this Confirmation, this Confirmation will
prevail for the purpose of the Transaction to which this Confirmation relates. The parties hereby
agree that no transaction other than the Transaction to which this Confirmation relates shall be
governed by the Agreement.

	2.	 	The terms of the particular Transaction to which this Confirmation relates are as follows:
	 
	 	 	General Terms.

	 	 	 

	Trade Date:

	 	June 9, 2011
	 
	 	 
	Effective Date:

	 	The third Exchange Business Day immediately prior to
the Premium Payment Date
	 
	 	 
	Option Style:

	 	“Modified American”, as described under “Procedures for
Exercise” below
	 
	 	 
	Option Type:

	 	Call
	 
	 	 
	Buyer:

	 	Counterparty
	 
	 	 
	Seller:

	 	Dealer
	 
	 	 
	Shares:

	 	The common stock of Counterparty, par value USD0.01
per share (Exchange symbol “IART”).
	 
	 	 
	Number of Options:

	 	200,000. For the avoidance of doubt, the Number of
Options shall be reduced by any Options exercised by
Counterparty. In no event will the Number of Options be
less than zero.
	 
	 	 
	Applicable Percentage:

	 	20%
	 
	 	 
	Option Entitlement:

	 	A number equal to the product of the Applicable
Percentage and 17.4092.
	 
	 	 
	Strike Price:

	 	USD 57.441
	 
	 	 
	Premium:

	 	USD 7,460,000
	 
	 	 
	Premium Payment Date:

	 	June 15, 2011
	 
	 	 
	Exchange:

	 	The NASDAQ Global Select Market
	 
	 	 
	Related Exchange(s):

	 	All Exchanges
	 
	 	 
	Excluded Provisions:

	 	Section 14.03 and Section 14.04(g) of the Indenture.

Procedures
for Exercise.

2

 

	 	 	 

	Conversion Date:

	 	With respect to any conversion of a Convertible Note, the
date on which the Holder (as such term is defined in the
Indenture) of such Convertible Note satisfies all of the
requirements for conversion thereof as set forth in
Sections 14.02(b) and (c) of the Indenture.
	 
	 	 
	Free Convertibility Date:

	 	June 15, 2016
	 
	 	 
	Expiration Time:

	 	The Valuation Time
	 
	 	 
	Expiration Date:

	 	December 15, 2016, subject to earlier exercise.
	 
	 	 
	Multiple Exercise:

	 	Applicable, as described under “Automatic Exercise”
below.
	 
	 	 
	Automatic Exercise:

	 	Notwithstanding Section 3.4 of the Equity Definitions, on
each Conversion Date, a number of Options equal to the
number of Convertible Notes in denominations of USD
1,000 as to which such Conversion Date has occurred
shall be deemed to be automatically exercised; provided
that such Options shall be exercised or deemed to be
exercised only if Counterparty has provided a Notice of
Exercise to Dealer in accordance with “Notice of
Exercise” below.
	 
	 	 
	 

	 	Notwithstanding the foregoing, in no event shall the
number of Options that are exercised or deemed exercised
hereunder exceed the Number of Options.
	 
	 	 
	Notice of Exercise:

	 	Notwithstanding anything to the contrary in the Equity
Definitions or under “Automatic Exercise” above, in
order to exercise any Options, Counterparty must notify
Dealer in writing before (i) 5:00 p.m. (New York City
time) on the Scheduled Valid Day immediately preceding
the scheduled first day of the Settlement Averaging
Period for the Options being exercised or (ii) 5:00 p.m.
(New York City time) on the fifth Scheduled Valid Day
immediately following the scheduled first day of the
Settlement Averaging Period for the Options being
exercised (in which case the Calculation Agent will
determine the adjustment to be made to any one or more
of the Strike Price, Number of Options, Option
Entitlement and any other variable relevant to the
exercise, settlement or payment for the Transaction in a
commercially reasonable manner as appropriate to reflect
the additional costs (including, but not limited to, hedging
mismatches and market losses) and reasonable expenses
incurred by Dealer in connection with its hedging
activities (including the unwinding of any hedge position)
due to such notification occurring after the time specified
in the immediately preceding clause (i)) of (w) the
number of such Options (without regard to any
adjustments by the Calculation Agent in accordance with
the immediately preceding clause (ii)) and (x) the
scheduled first day of the Settlement Averaging Period
and the scheduled Settlement Date, (y) the Relevant
Settlement Method for such Options, and (z) if the

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	 	Relevant Settlement Method for such Options is not Net
Share Settlement (as defined below), the percentage of
each Share issuable upon conversion in excess of the
principal portion of the Convertible Notes being
converted that will be paid in cash (the “Cash
Percentage”), and such notice shall also include the
information, representations, acknowledgements and
agreements required pursuant to “Settlement Method
Election Conditions” below; provided that in respect of
any Options relating to Convertible Notes with a
Conversion Date occurring on or after the Free
Convertibility Date, (A) such notice may be given on or
prior to the second Scheduled Valid Day immediately
preceding the Expiration Date and need only specify the
information required in clause (w) above, and (B) if the
Relevant Settlement Method for such Options is not Net
Share Settlement, Dealer shall have received a separate
notice (the “Notice of Final Settlement Method”) in
respect of all such Convertible Notes before 5:00 p.m.
(New York City time) on or prior to the Free
Convertibility Date specifying the information required in
clauses (y) and (z) above, as well as the information,
representations, acknowledgements and agreements
required pursuant to “Settlement Method Election
Conditions” below.
	 
	 	 
	Valuation Time:

	 	The close of trading of the regular trading session on the
Exchange; provided that if the principal trading session is
extended, the Calculation Agent shall determine the
Valuation Time in its reasonable discretion.
	 
	 	 
	Market Disruption Event:

	 	Section 6.3(a) of the Equity Definitions is hereby replaced
in its entirety by the following:
	 
	 	 
	 

	 	“‘Market Disruption Event’ means, in respect of a Share,
(i) a failure by the primary U.S. national or regional
securities exchange or market on which the Shares are
listed or admitted for trading to open for trading during its
regular trading session or (ii) the occurrence or existence
prior to 1:00 p.m., New York City time, on any Scheduled
Valid Day for the Shares for more than one half-hour
period in the aggregate during regular trading hours of
any suspension or limitation imposed on trading (by
reason of movements in price exceeding limits permitted
by the relevant stock exchange or otherwise) in the Shares
or in any options, contracts or future contracts relating to
the Shares.”

Settlement
Terms.

	 	 	 

	Settlement Method:

	 	For any Option, Net Share Settlement; provided that if the
Relevant Settlement Method set forth below for such
Option is not Net Share Settlement, then the Settlement
Method for such Option shall be such Relevant Settlement
Method, but only if the Settlement Method Election
Conditions have been satisfied and Counterparty shall
have notified Dealer of the Relevant Settlement Method

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	 	in the Notice of Exercise or Notice of Final Settlement
Method, as applicable, for such Option.
	 
	 	 
	Relevant Settlement Method:

	 	In respect of any Option, subject to the Settlement
Method Election Conditions:
	 
	 	 
	 

	 	(i) if Counterparty has not specified a Cash Percentage
or has specified a Cash Percentage of 0% in respect of
settling its conversion obligations in respect of the related
Convertible Note pursuant to Section 14.02(a)(i) of the
Indenture, then, in either case, the Relevant Settlement
Method for such Option shall be Net Share Settlement;
	 
	 	 
	 

	 	(ii) if Counterparty has specified a Cash Percentage of
between 0% and 100% in respect of settling its
conversion obligations in respect of the related
Convertible Note pursuant to Section 14.02(a)(i) of the
Indenture, then the Relevant Settlement Method for such
Option shall be Combination Settlement; and
	 
	 	 
	 

	 	(iii) if Counterparty has specified a Cash Percentage of
100% in respect of settling its conversion obligations in
respect of the related Convertible Note pursuant to
Section 14.02(a)(i) of the Indenture, then the Relevant
Settlement Method for such Option shall be Cash
Settlement.
	 
	 	 
	Settlement Method Election Conditions:

	 	For any Relevant Settlement Method other than Net Share
Settlement, such Relevant Settlement Method shall apply
to an Option only if the Notice of Exercise or Notice of
Final Settlement Method for such Option, as applicable,
contains:

	 	(i)	 	a representation that, on the date of such Notice of
Exercise or Notice of Final Settlement Method, as
applicable, Counterparty is not in possession of any
material non-public information with respect to
Counterparty or the Shares;
	 
	 	(ii)	 	a representation that Counterparty is electing the
settlement method for the related Convertible Note
and such Relevant Settlement Method in good faith
and not as part of a plan or scheme to evade the
prohibitions of Rule 10b-5 under the Securities
Exchange Act of 1934, as amended (the
“Exchange Act”);
	 
	 	(iii)	 	a representation that Counterparty has not entered
into or altered any hedging transaction relating to
the Shares corresponding to or offsetting the
Transaction;
	 
	 	(iv)	 	a representation that Counterparty is not electing
the settlement method for the related Convertible
Note and such Relevant Settlement Method to
create actual or apparent trading activity in the
Shares (or any security convertible into or

5

 

	 	 	 	exchangeable for the Shares) or to raise or depress
or otherwise manipulate the price of the Shares (or
any security convertible into or exchangeable for
the Shares); and
	 
	 	(v)	 	an acknowledgment by Counterparty that (A) any
transaction by Dealer following Counterparty’s
election of the settlement method for the related
Convertible Note and such Relevant Settlement
Method shall be made at Dealer’s sole discretion
and for Dealer’s own account and (B) Counterparty
does not have, and shall not attempt to exercise,
any influence over how, when, whether or at what
price to effect such transactions, including, without
limitation, the price paid or received per Share
pursuant to such transactions, or whether such
transactions are made on any securities exchange
or privately.

	 	 	 

	Net Share Settlement:

	 	If Net Share Settlement is applicable to any Option
exercised or deemed exercised hereunder, Dealer will
deliver to Counterparty, on the relevant Settlement Date
for each such Option, a number of Shares (the “Net Share
Settlement Amount”) equal to the sum, for each Valid
Day during the Settlement Averaging Period for each
such Option, of (i) the Daily Option Value for such Valid
Day, divided by (ii) the Relevant Price on such Valid Day,
divided by (iii) the number of Valid Days in the
Settlement Averaging Period. 

Dealer will deliver cash in lieu of any fractional Shares to
be delivered with respect to any Net Share Settlement
Share Amount valued at the Relevant Price for the last
Valid Day of the Settlement Averaging Period.
	 
	 	 
	Combination Settlement:

	 	If Combination Settlement is applicable to any Option
exercised or deemed exercised hereunder, Dealer will pay
or deliver, as the case may be, to Counterparty, on the
relevant Settlement Date for each such Option:

	 	(i)	 	cash in an amount equal to the sum, for each Valid
Day during the Settlement Averaging Period for
such Option, of (i) the Daily Option Value for such
Valid Day, divided by (ii) the number of Valid
Days in the Settlement Averaging Period,
multiplied by (iii) the Cash Percentage; and
	 
	 	(ii)	 	a number of Shares (the “Combination Settlement
Share Amount”) equal to the sum, for each Valid
Day during the Settlement Averaging Period for
such Option, of (i) the Daily Option Value for such
Valid Day, divided by (ii) the Relevant Price on
such Valid Day, divided by (iii) the number of
Valid Days in the Settlement Averaging Period,
multiplied by (iv) (A) 100% minus (B) the Cash
Percentage.

6

 

	 	 	 

	 

	 	Dealer will deliver cash in lieu of any fractional Shares to
be delivered with respect to any Combination Settlement
Share Amount valued at the Relevant Price for the last
Valid Day of the Settlement Averaging Period.
	 
	 	 
	Cash Settlement:

	 	If Cash Settlement is applicable to any Option exercised
or deemed exercised hereunder, in lieu of Section 8.1 of
the Equity Definitions, Dealer will pay to Counterparty,
on the relevant Settlement Date for each such Option, an
amount of cash equal to the sum, for each Valid Day
during the Settlement Averaging Period for such Option,
of (i) the Daily Option Value for such Valid Day, divided
by (ii) the number of Valid Days in the Settlement
Averaging Period.
	 
	 	 
	Daily Option Value:

	 	For any Valid Day, an amount equal to (i) the Option
Entitlement on such Valid Day, multiplied by (ii) the
Relevant Price on such Valid Day less the Strike Price on
such Valid Day; provided that if the calculation contained
in clause (ii) above results in a negative number, the Daily
Option Value for such Valid Day shall be deemed to be
zero. In no event will the Daily Option Value be less than
zero.
	 
	 	 
	Valid Day:

	 	A day on which (i) there is no Market Disruption Event
and (ii) trading in the Shares generally occurs on the
Exchange or, if the Shares are not then listed on the
Exchange, on the principal other U.S. national or regional
securities exchange on which the Shares are then listed or,
if the Shares are not then listed on a U.S. national or
regional securities exchange, on the principal other
market on which the Shares are then listed or admitted for
trading. If the Shares are not so listed or admitted for
trading, “Valid Day” means a Business Day.
	 
	 	 
	Scheduled Valid Day:

	 	A day that is scheduled to be a Valid Day on the principal
U.S. national or regional securities exchange or market on
which the Shares are listed or admitted for trading. If the
Shares are not so listed or admitted for trading,
“Scheduled Valid Day” means a Business Day.
	 
	 	 
	Business Day:

	 	Any day other than a Saturday, a Sunday or a day on
which the Federal Reserve Bank of New York is
authorized or required by law or executive order to close
or be closed.
	 
	 	 
	Relevant Price:

	 	For each of the 50 consecutive Valid Days during the
applicable Settlement Averaging Period, the per Share
volume-weighted average price as displayed under the
heading “Bloomberg VWAP” on Bloomberg page “IART
<equity> AQR” (or its equivalent successor if such page
is not available) in respect of the period from the
scheduled open of trading until the scheduled clos of
trading of the primary trading session on such Valid Day
(or if such volume-weighted average price is unavailable,
the market value of one Share on such Valid Day
determined, using a volume-weighted average method, by

7

 

	 	 	 

	 

	 	the Calculation Agent). The Relevant Price shall be
determined without regard to after hours trading or any
other trading outside of the regular trading session trading
hours.
	 
	 	 
	Settlement Averaging Period:

	 	For any Option and regardless of the Settlement Method
applicable to such Option:

	 	(i)	 	if the relevant Conversion Date occurs prior to the
Free Convertibility Date, the 50 consecutive
Valid-Day period beginning on, and including, the
second Valid Day after such Conversion Date; and
	 
	 	(ii)	 	if the relevant Conversion Date occurs on or
following the Free Convertibility Date, the 50
consecutive Valid Days beginning on, and
including, the 52nd Scheduled Valid Day
immediately preceding the Expiration Date.

	 	 	 

	Settlement Date:

	 	For any Option, the date Shares and/or cash are delivered
with respect to the Convertible Note related to such
Option pursuant to Section 14.02(a) of the Indenture;
provided that the Settlement Date will not be prior to the
later of (i) the third Business Day immediately following
the final Valid Day of the Settlement Averaging Period
for such Option and (ii) the Exchange Business Day
immediately following the date Counterparty provides
written notice to Dealer of such date of delivery under the
Indenture prior to 4:00 PM, New York City time.
	 
	 	 
	Settlement Currency:

	 	USD
	 
	 	 
	Other Applicable Provisions:

	 	The provisions of Sections 9.1(c), 9.8, 9.9 and 9.11 (as
modified below) of the Equity Definitions will be
applicable as if Physical Settlement were applicable.
	 
	 	 
	Representation and Agreement:

	 	Notwithstanding anything to the contrary in Equity
Definitions (including, but not limited to, Section 9.11
thereof), the parties acknowledge that (i) any Shares
delivered to Counterparty shall be, upon delivery, subject
to restrictions and limitations arising from Counterparty’s
status as issuer of the Shares under applicable securities
laws, (ii) Dealer may deliver any Shares required to be
delivered hereunder in certificated form in lieu of delivery
through the Clearance System and (iii) any Shares
delivered to Counterparty may be “restricted securities”
(as defined in Rule 144 under the Securities Act of 1933,
as amended (the “Securities Act”)).

	3.	 	Additional Terms applicable to the Transaction.
	 
	 	 	Adjustments applicable to the Transaction:

	 	 	 

	Potential Adjustment Events:

	 	Notwithstanding Section 11.2(e) of the Equity
Definitions, a “Potential Adjustment Event” means an
occurrence of any event or condition, as set forth in any
Dilution Adjustment Provision, that would result in an

8

 

	 	 	 

	 

	 	adjustment to the Conversion Rate (as defined in the
Indenture) of the Convertible Notes.
	 
	 	 
	Method of Adjustment:

	 	Calculation Agent Adjustment, which means that,
notwithstanding Section 11.2(c) of the Equity Definitions,
upon any Potential Adjustment Event, the Calculation
Agent shall make a corresponding adjustment to any one
or more of the Strike Price, Number of Options, Option
Entitlement and any other variable relevant to the
exercise, settlement or payment for the Transaction;
provided that, notwithstanding the foregoing, if any
Potential Adjustment Event occurs during the Settlement
Averaging Period but no adjustment was made to any
Convertible Note under the Indenture because the relevant
Holder (as such term is defined in the Indenture) was
deemed to be a record owner of the underlying Shares on
the related Conversion Date, then the Calculation Agent
shall make an adjustment, as determined by it, to the
terms hereof in order to account for such Potential
Adjustment Event.
	 
	 	 
	Dilution Adjustment Provisions:

	 	Section 14.04(a), (b), (c), (d) and (e) and Section 14.05 of
the Indenture.

     Extraordinary Events applicable to the Transaction:

	 	 	 

	Merger Events:

	 	Applicable; provided that notwithstanding Section 12.1(b)
of the Equity Definitions, a “Merger Event” means the
occurrence of any event or condition set forth in the
definition of “Merger Event” in Section 14.07(a) of the
Indenture.
	 
	 	 
	Tender Offers:

	 	Applicable; provided that notwithstanding Section 12.1(d)
of the Equity Definitions, a “Tender Offer” means the
occurrence of any event or condition set forth in Section
14.04(e) of the Indenture.
	 
	 	 
	Consequence of Merger Events / Tender
Offers:

	 	Notwithstanding Section 12.2 and Section 12.3 of the
Equity Definitions, upon the occurrence of a Merger
Event or a Tender Offer, the Calculation Agent shall
make a corresponding adjustment in respect of any
adjustment under the Indenture to any one or more of the
nature of the Shares (in the case of a Merger Event),
Strike Price, Number of Options, Option Entitlement and
any other variable relevant to the exercise, settlement or
payment for the Transaction; provided, however, that such
adjustment shall be made without regard to any
adjustment to the Conversion Rate pursuant to any
Excluded Provision; provided further that if, with respect
to a Merger Event or a Tender Offer, (i) the consideration
for the Shares includes (or, at the option of a holder of
Shares, may include) shares of an entity or person that is
not a corporation or is not organized under the laws of the
United States, any State thereof or the District of
Columbia or (ii) the Counterparty to the Transaction
following such Merger Event or Tender Offer, will not be

9

 

	 	 	 

	 

	 	a corporation or will not be the Issuer following such
Merger Event or Tender Offer, then Cancellation and
Payment (Calculation Agent Determination) shall apply.
	 
	 	 
	Nationalization, Insolvency or Delisting:

	 	Cancellation and Payment (Calculation Agent
Determination); provided that, in addition to the
provisions of Section 12.6(a)(iii) of the Equity
Definitions, it will also constitute a Delisting if the
Exchange is located in the United States and the Shares
are not immediately re-listed, re-traded or re-quoted on
any of the New York Stock Exchange, The NASDAQ
Global Select Market or The NASDAQ Global Market (or
their respective successors); if the Shares are immediately
re-listed, re-traded or re-quoted on any of the New York
Stock Exchange, The NASDAQ Global Select Market or
The NASDAQ Global Market (or their respective
successors), such exchange or quotation system shall
thereafter be deemed to be the Exchange.

     Additional Disruption Events:

	 	 	 

	Change in Law:

	 	Applicable; provided that (i) Section 12.9(a)(ii) of the
Equity Definitions is hereby amended by replacing the
parenthetical beginning after the word “regulation” in the
second line thereof with the words “(including, for the
avoidance of doubt and without limitation, (x) any tax law
or (y) adoption or promulgation of new regulations
authorized or mandated by existing statute)” and (ii)
Section 12.9(a)(ii)(X) of the Equity Definitions is hereby
amended by replacing the word “Shares” with the phrase
“Hedge Positions.”
	 
	 	 
	Failure to Deliver:

	 	Applicable
	 
	 	 
	Hedging Disruption:

	 	Applicable
	 
	 	 
	Increased Cost of Hedging:

	 	Applicable
	 
	 	 
	Hedging Party:

	 	For all applicable Additional Disruption Events, Dealer.

	 	 	 

	Determining Party:

	 	 For all applicable Extraordinary Events, Dealer.
	 
	 	 
	Non-Reliance:

	 	Applicable
	 
	 	 
	Agreements and Acknowledgements

	 	 
	 
	 	 
	Regarding Hedging Activities:

	 	Applicable
	 
	 	 
	Additional Acknowledgments:

	 	Applicable

	 	 	 	 	 

	4.

	 	Calculation Agent.
	 	Dealer, whose judgments, determinations and calculations
shall be made in good faith and in a commercially
reasonable manner. Following any determination or
calculation by the Calculation Agent hereunder, upon a
written request by Counterparty, the Calculation Agent
will provide to Counterparty by e-mail to the e-mail
address provided by Counterparty in such written request a
report (in a commonly used file format for the storage and
manipulation of financial data) displaying in reasonable

10

 

	 	 	 	 	 

	 

	 	 	 	detail the basis for such calculation, it being understood
that the Calculation Agent shall not be obligated to
disclose any proprietary models used by it for such
calculation.

	5.	 	Account Details.

	 	(a)	 	Account for payments to Counterparty:
	 
	 	 	 	Bank Name: Wells Fargo Bank

ABA #: 121000248

Beneficiary: First Clearing, LLC

Account #: 4122023377

FFC Account Name: Integra LifeSciences Holdings Corp

FFC Account Number: 8595-0713
	 
	 	 	 	Account for delivery of Shares to Counterparty:
	 
	 	 	 	American Stock Transfer & Trust Co LLC

Transfer Agent # 2941

Account # 10249

	 	(b)	 	Account for payments to Dealer:
	 
	 	 	 	Chase Bank, New York

BIC: CHASUS33 

ABA # 021000021

A/C Name: RBS Securities Inc.

BIC: GRNWUS33 A/C: 066615674
	 
	 	 	 	Account for delivery of Shares from Dealer:
	 
	 	 	 	To be provided by Dealer.

	6.	 	Offices.

	 	(a)	 	The Office of Counterparty for the Transaction is: Inapplicable, Counterparty is not a
Multibranch Party.
	 
	 	(b)	 	The Office of Dealer for the Transaction
is:
	 
	 	 	 	The Royal Bank of Scotland plc

c/o RBS Securities Inc.

600 Washington Blvd.

Stamford, CT 06901

	7.	 	Notices.

	 	(a)	 	Address for notices or communications to Counterparty:
	 
	 	 	 	Integra LifeSciences Holdings Corporation

311 Enterprise Drive

Plainsboro, NJ 08536

Attention: Treasurer

Telephone No.: (609) 275-0500

Facsimile No.: (609) 750-4264

11

 

	 	(b)	 	Address for notices or communications to Dealer:

The Royal Bank of Scotland plc

c/o RBS Securities Inc.

600 Washington Blvd.

Stamford, CT 06901

Attn: Legal Department (Tam Beattie)

Telephone: (203) 897-6086

Facsimile: (203) 873-4571

Email: Tamerlaine.Beattie@rbs.com

With a copy to:

The Royal Bank of Scotland plc

c/o RBS Global Banking & Markets

280 Bishopsgate

London EC2M 4RB

8. Representations and Warranties of Counterparty.

Each of the representations and warranties of Counterparty set forth in Section 3 of the
Purchase Agreement (the “Purchase Agreement”), dated as of June 9, 2011, between Counterparty
and the representatives of the Initial Purchasers party thereto (the “Representatives”), is true
and correct and is hereby deemed to be repeated to Dealer as if set forth herein; provided that
no such representation or warranty, other than the representations and warranties set forth in
Sections 3(a), (b), (d) and (e) of the Purchase Agreement, may be the basis of an Event of
Default under Section 5(a)(iv) of the Agreement. Counterparty hereby further represents and
warrants to Dealer on the date hereof and on and as of the Premium Payment Date that:

	 	(a)	 	Counterparty has all necessary corporate power and authority to execute, deliver and perform
its obligations in respect of the Transaction; such execution, delivery and performance have
been duly authorized by all necessary corporate action on Counterparty’s part; and this
Confirmation has been duly and validly executed and delivered by Counterparty and constitutes
its valid and binding obligation, enforceable against Counterparty in accordance with its
terms, subject to applicable bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium and similar laws affecting creditors’ rights and remedies generally, and subject,
as to enforceability, to general principles of equity, including principles of commercial
reasonableness, good faith and fair dealing (regardless of whether enforcement is sought in a
proceeding at law or in equity) and except that rights to indemnification and contribution
hereunder may be limited by federal or state securities laws or public policy relating
thereto.
	 
	 	(b)	 	Neither the execution and delivery of this Confirmation nor the incurrence or performance of
obligations of Counterparty hereunder will conflict with or result in a breach of the
certificate of incorporation or by-laws (or any equivalent documents) of Counterparty, or any
applicable law or regulation, or any order, writ, injunction or decree of any court or
governmental authority or agency, or any agreement or instrument to which Counterparty or any
of its subsidiaries is a party or by which Counterparty or any of its subsidiaries is bound or
to which Counterparty or any of its subsidiaries is subject, or constitute a default under, or
result in the creation of any lien under, any such agreement or instrument.
	 
	 	(c)	 	No consent, approval, authorization, or order of, or filing with, any governmental agency or
body or any court is required in connection with the execution, delivery or performance by
Counterparty of this Confirmation, except such as have been obtained or made and such as may
be required under the Securities Act or state securities laws.
	 
	 	(d)	 	Counterparty is not and will not be required to register as an “investment company” as such
term is defined in the Investment Company Act of 1940, as amended.

12

 

	 	(e)	 	Counterparty is an “eligible contract participant” (as such term is defined in Section 1a(12)
of the Commodity Exchange Act, as amended, other than a person that is an eligible contract
participant under Section 1a(12)(C) of the Commodity Exchange Act).
	 
	 	(f)	 	Each of Counterparty and its officers and directors is not, on the date hereof, in possession
of any material non-public information with respect to Counterparty or the Shares.

9. Other Provisions. 

	 	(a)	 	Opinions. Counterparty shall deliver to Dealer an opinion of counsel, dated as
of the Trade Date, with respect to the matters set forth in Sections 8(a) through (c) of
this Confirmation. Delivery of such opinion to Dealer shall be a condition precedent for
the purpose of Section 2(a)(iii) of the Agreement with respect to each obligation of Dealer
under Section 2(a)(i) of the Agreement.
	 
	 	(b)	 	Repurchase Notices. Counterparty shall, on any day on which Counterparty
effects any repurchase of Shares or consummates or otherwise executes or engages in any
transaction or event (a “Conversion Rate Adjustment Event”) that would lead to an increase
in the Conversion Rate (as such term is defined in the Indenture), promptly give Dealer a
written notice of such repurchase or Conversion Rate Adjustment Event (a “Repurchase
Notice”) on such day if following such repurchase or Conversion Rate Adjustment Event, the
number of outstanding Shares as determined on such day is (i) less than 24,264,547 (in the
case of the first such notice) or (ii) thereafter more than 3,192,382 less than the number
of Shares included in the immediately preceding Repurchase Notice. Counterparty agrees to
indemnify and hold harmless Dealer and its affiliates and their respective officers,
directors, employees, affiliates, advisors, agents and controlling persons (each, an
“Indemnified Person”) from and against any and all losses (including losses relating to
Dealer’s hedging activities as a consequence of becoming, or of the risk of becoming, a
Section 16 “insider”, including without limitation, any forbearance from hedging activities
or cessation of hedging activities and any losses in connection therewith with respect to
the Transaction), claims, damages, judgments, liabilities and expenses (including
reasonable attorney’s fees), joint or several, that an Indemnified Person may become
subject to, as a result of Counterparty’s failure to provide Dealer with a Repurchase
Notice on the day and in the manner specified in this paragraph, and to reimburse, within
30 days, upon written request, each of such Indemnified Persons for any reasonable legal or
other expenses incurred in connection with investigating, preparing for, providing
testimony or other evidence in connection with or defending any of the foregoing. If any
suit, action, proceeding (including any governmental or regulatory investigation), claim or
demand shall be brought or asserted against the Indemnified Person as a result of
Counterparty’s failure to provide Dealer with a Repurchase Notice in accordance with this
paragraph, such Indemnified Person shall promptly notify Counterparty in writing, and
Counterparty, upon request of the Indemnified Person, shall retain counsel reasonably
satisfactory to the Indemnified Person to represent the Indemnified Person and any others
Counterparty may designate in such proceeding and shall pay the fees and expenses of such
counsel related to such proceeding. Counterparty shall not be liable for any settlement of
any proceeding contemplated by this paragraph that is effected without its written consent,
but if settled with such consent or if there be a final judgment for the plaintiff,
Counterparty agrees to indemnify any Indemnified Person from and against any loss or
liability by reason of such settlement or judgment. Counterparty shall not, without the
prior written consent of the Indemnified Person, effect any settlement of any pending or
threatened proceeding contemplated by this paragraph that is in respect of which any
Indemnified Person is or could have been a party and indemnity could have been sought
hereunder by such Indemnified Person, unless such settlement includes an unconditional
release of such Indemnified Person from all liability on claims that are the subject matter
of such proceeding on terms reasonably satisfactory to such Indemnified Person. If the
indemnification provided for in this paragraph is unavailable to an Indemnified Person or
insufficient in respect of any losses, claims, damages or liabilities referred to therein,
then Counterparty hereunder, in lieu of indemnifying such Indemnified Person thereunder,
shall contribute to the amount paid or payable by such Indemnified Person as a result of
such losses, claims, damages or liabilities. The remedies provided for in this paragraph
(b) are not exclusive and shall not limit any rights or remedies that may otherwise be
available to any

13

 

	 	 	 	Indemnified Person at law or in equity. The indemnity and contribution agreements contained
in this paragraph shall remain operative and in full force and effect regardless of the
termination of the Transaction.

	 	(c)	 	Regulation M. Counterparty is not on the Trade Date engaged in a distribution, as
such term is used in Regulation M under the Exchange Act, of any securities of Counterparty,
other than a distribution meeting the requirements of the exception set forth in Rules
101(b)(10) and 102(b)(7) of Regulation M. Counterparty shall not, until the second Scheduled
Trading Day immediately following the Effective Date, engage in any such distribution.
	 
	 	(d)	 	No Manipulation. Counterparty is not entering into the Transaction to create actual
or apparent trading activity in the Shares (or any security convertible into or exchangeable
for the Shares) or to raise or depress or otherwise manipulate the price of the Shares (or any
security convertible into or exchangeable for the Shares) or otherwise in violation of the
Exchange Act.
	 
	 	(e)	 	Transfer or Assignment.

	 	(i)	 	Counterparty shall have the right to transfer or assign its rights and obligations hereunder
with respect to all, but not less than all, of the Options hereunder (such Options, the
“Transfer Options”); provided that such transfer or assignment shall be subject to reasonable
conditions that Dealer may impose, including, but not limited to, the following conditions:

	 	(A)	 	With respect to any Transfer Options, Counterparty shall not be released from its notice and
indemnification obligations pursuant to Section 9(b) or any obligations under Section 9(m) or
9(r) of this Confirmation;
	 
	 	(B)	 	Any Transfer Options shall only be transferred or assigned to a third party that is a United
States person (as defined in the Internal Revenue Code of 1986, as amended);
	 
	 	(C)	 	Such transfer or assignment shall be effected on terms, including any reasonable undertakings
by such third party (including, but not limited to, an undertaking with respect to compliance
with applicable securities laws in a manner that, in the reasonable judgment of Dealer, will
not expose Dealer to material risks under applicable securities laws) and execution of any
documentation and delivery of legal opinions with respect to securities laws and other matters
by such third party and Counterparty, as are requested and reasonably satisfactory to Dealer;
	 
	 	(D)	 	Dealer will not, as a result of such transfer and assignment, be required to pay the
transferee on any payment date an amount under Section 2(d)(i)(4) of the Agreement greater
than an amount that Dealer would have been required to pay to Counterparty in the absence of
such transfer and assignment;
	 
	 	(E)	 	An Event of Default, Potential Event of Default or Termination Event will not occur as a
result of such transfer and assignment;
	 
	 	(F)	 	Without limiting the generality of clause (B), Counterparty shall cause the transferee to
make such Payee Tax Representations and to provide such tax documentation as may be reasonably
requested by Dealer to permit Dealer to determine that results described in clauses (D) and
(E) will not occur upon or after such transfer and assignment; and
	 
	 	(G)	 	Counterparty shall be responsible for all reasonable costs and expenses, including reasonable
counsel fees, incurred by Dealer in connection with such transfer or assignment.

14

 

	 	(ii)	 	Dealer may not, without Counterparty’s consent, transfer or assign all or any part of its
rights or obligations under the Transaction except to any affiliate of Dealer (A) that has a
rating for its long term, unsecured and unsubordinated indebtedness that is equal to or better
than Dealer’s credit rating at the time of such transfer or assignment, or (B) whose
obligations hereunder will be guaranteed, pursuant to the terms of a customary guarantee in a
form used by Dealer generally for similar transactions, by Dealer. If at any time at which
(A) the Section 16 Percentage exceeds 7.5%, (B) the Option Equity Percentage exceeds 14.5%, or
(C) the Share Amount exceeds the Applicable Share Limit (if any applies) (any such condition
described in clauses (A), (B) or (C), an “Excess Ownership Position”), Dealer is unable after
using its commercially reasonable efforts to effect a transfer or assignment of Options to a
third party on pricing terms reasonably acceptable to Dealer and within a time period
reasonably acceptable to Dealer such that no Excess Ownership Position exists, then Dealer may
designate any Exchange Business Day as an Early Termination Date with respect to a portion of
the Transaction (the “Terminated Portion”), such that following such partial termination no
Excess Ownership Position exists. In the event that Dealer so designates an Early Termination
Date with respect to a portion of the Transaction, a payment shall be made pursuant to Section
6 of the Agreement as if (1) an Early Termination Date had been designated in respect of a
Transaction having terms identical to the Transaction and a Number of Options equal to the
number of Options underlying the Terminated Portion, (2) Counterparty were the sole Affected
Party with respect to such partial termination and (3) the Terminated Portion were the sole
Affected Transaction (and, for the avoidance of doubt, the provisions of Section 9(k) shall
apply to any amount that is payable by Dealer to Counterparty pursuant to this sentence as if
Counterparty was not the Affected Party). The “Section 16 Percentage” as of any day is the
fraction, expressed as a percentage, (A) the numerator of which is the number of Shares that
Dealer and each person subject to aggregation of Shares with Dealer under Section 13 or
Section 16 of the Exchange Act and rules promulgated thereunder directly or indirectly
beneficially own (as defined under Section 13 or Section 16 of the Exchange Act and rules
promulgated thereunder) and (B) the denominator of which is the number of Shares outstanding.
The “Option Equity Percentage” as of any day is the fraction, expressed as a percentage, (A)
the numerator of which is the sum of (1) the product of the Number of Options and the Option
Entitlement and (2) the aggregate number of Shares underlying any other call option
transaction sold by Dealer to Counterparty, and (B) the denominator of which is the number of
Shares outstanding. The “Share Amount” as of any day is the number of Shares that Dealer and
any person whose ownership position would be aggregated with that of Dealer (Dealer or any
such person, a “Dealer Person”) under any law, rule, regulation, regulatory order or
organizational documents or contracts of Counterparty that are, in each case, applicable to
ownership of Shares (“Applicable Restrictions”), owns, beneficially owns, constructively owns,
controls, holds the power to vote or otherwise meets a relevant definition of ownership under
any Applicable Restriction, as determined by Dealer in its reasonable discretion. The
“Applicable Share Limit” means a number of Shares equal to (A) the minimum number of Shares
that could give rise to reporting or registration obligations (except for any filings of
Schedule 13D or Schedule 13G under the Exchange Act or any other filing obligations applicable
as of the date hereof) or other requirements (including obtaining prior approval from any
person or entity) of a Dealer Person, or could result in an adverse effect on a Dealer Person,
under any Applicable Restriction, as determined by Dealer in its reasonable discretion, minus
(B) 1% of the number of Shares outstanding.
	 
	 	(iii)	 	Notwithstanding any other provision in this Confirmation to the contrary requiring or
allowing Dealer to purchase, sell, receive or deliver any Shares or other securities, or make
or receive any payment in cash, to or from Counterparty, Dealer may designate any of its
affiliates to purchase, sell, receive or deliver such Shares or other securities, or to make
or receive such payment in cash, and otherwise to perform Dealer’s obligations in respect of
the Transaction and any such designee may assume such obligations. Dealer

15

 

	 	 	 	shall be discharged of its obligations to Counterparty to the extent of any such
performance.

	 	(f)	 	Staggered Settlement. If upon advice of counsel with respect to applicable legal and
regulatory requirements, including any requirements relating to Dealer’s hedging activities
hereunder, Dealer reasonably determines that it would not be advisable to deliver, or to
acquire Shares to deliver, any or all of the Shares to be delivered by Dealer on the
Settlement Date for the Transaction, Dealer may, by notice to Counterparty on or prior to any
Settlement Date (a “Nominal Settlement Date”), elect to deliver the Shares on two or more
dates (each, a “Staggered Settlement Date”) as follows:

	 	(i)	 	in such notice, Dealer will specify to Counterparty the related Staggered Settlement
Dates (each of which will be on or prior to such Nominal Settlement Date) and the number of
Shares that it will deliver on each Staggered Settlement Date;
	 
	 	(ii)	 	the aggregate number of Shares that Dealer will deliver to Counterparty hereunder on
all such Staggered Settlement Dates will equal the number of Shares that Dealer would
otherwise be required to deliver on such Nominal Settlement Date; and
	 
	 	(iii)	 	if the Net Share Settlement terms set forth above were to apply on the Nominal Settlement
Date, then the Net Share Settlement terms will apply on each Staggered Settlement Date, except
that the Net Shares will be allocated among such Staggered Settlement Dates as specified by
Dealer in the notice referred to in clause (i) above.

	 	(g)	 	Role of Agent. THE ROYAL BANK OF SCOTLAND PLC HAS ENTERED AS PRINCIPAL TO THE
TRANSACTION AND IS COUNTERPARTY’S COUNTERPARTY HERETO. THE
ROYAL BANK OF SCOTLAND PLC IS NOT REGISTERED AS A BROKER-DEALER UNDER THE SECURITIES AND
EXCHANGE ACT OF 1934, AS AMENDED. THE PARTIES ACKNOWLEDGE THAT RBS SECURITIES INC. HAS
ACTED AS AGENT FOR THE PARTIES IN CONNECTION WITH THE TRANSACTION. TO THE EXTENT RBS
SECURITIES INC. HAS ACTED AS AGENT IN CONNECTION WITH THE TRANSACTION, ITS OBLIGATIONS ARE
STRICTLY LIMITED TO THE DELIVERY OF ANY CASH AND SECURITIES THAT IT ACTUALLY RECEIVES FROM
THE ROYAL BANK OF SCOTLAND PLC OR COUNTERPARTY, AS THE CASE MAY BE, OR DELIVERS TO THE ROYAL
BANK OF SCOTLAND PLC OR COUNTERPARTY. RBS SECURITIES INC. HAS NO OBLIGATIONS HEREUNDER, BY
GUARANTY, ENDORSEMENT OR OTHERWISE, WITH RESPECT TO PERFORMANCE OF THE ROYAL BANK OF
SCOTLAND PLC’S OR COUNTERPARTY’S OBLIGATIONS HEREUNDER.
	 
	 	(h)	 	Additional Termination Events.

	 	(i)	 	Notwithstanding anything to the contrary in this Confirmation if (i) an event of default
with respect to Counterparty occurs under the terms of the Convertible Notes as set forth in
Section 6.01 of the Indenture or (ii) Counterparty gives Dealer the notice required pursuant
to the last sentence of this paragraph, then such occurrence or the giving of such notice, as
applicable, shall constitute an Additional Termination Event applicable to the Transaction
and, with respect to such Additional Termination Event, (A) Counterparty shall be deemed to be
the sole Affected Party, (B) the Transaction shall be the sole Affected Transaction and (C)
Dealer shall be the party entitled to designate an Early Termination Date pursuant to Section
6(b) of the Agreement (which Early Termination Date shall correspond in the case of a
Repurchase Event (as defined below), if applicable, to a payment date under Section 6(d)(ii)
of the Agreement occurring within a commercially reasonable period of time (as determined by
Dealer in a commercially reasonable manner in consultation with counsel with regard to legal,
regulatory or commercial issues arising in connection with any related hedging or hedge unwind
activities) after the date of payment with respect to the Convertible Notes, if applicable,
for such Repurchase Event) and determine the amount payable pursuant to Section 6(e)

16

 

	 		 	of the Agreement; provided that in the case of a Repurchase Event, the Transaction
shall be subject to termination only in respect of a number of Options (the
"Affected Number of Options”), equal to the lesser of (A) the number of Convertible
Notes that cease to be outstanding in connection with or as a result of such
Repurchase Event, as the case may be, and (B) the number of Options then
outstanding. For the avoidance of doubt, in determining the amount payable in
respect of such Affected Transaction pursuant to Section 6 of the Agreement in
connection with a Repurchase Event, the Calculation Agent shall assume that the
Convertible Notes subject to such Repurchase Event shall not have been repurchased
and remain outstanding. Counterparty shall notify Dealer promptly following the
occurrence of any Repurchase Event; provided that Counterparty agrees to initiate a
Repurchase Event only if Counterparty represents to Dealer at the time it takes
action to so initiate such Repurchase Event that it is not in possession of any
material nonpublic information with respect to Counterparty or the Shares.
	 
	 	 	 	“Repurchase Event” means that (i) any Convertible Notes are repurchased (whether in
connection with or as a result of a fundamental change, howsoever defined, a tender
offer or similar transaction or for any other reason) by Counterparty, (ii) any
Convertible Notes are delivered to Counterparty in exchange for delivery of any
property or assets of Counterparty (howsoever described), (iii) any principal of
any of the Convertible Notes is repaid prior to the final maturity date of the
Convertible Notes (whether following acceleration of the Convertible Notes or
otherwise), or (iv) any Convertible Notes are exchanged by or for the benefit of
the holders thereof for any other securities of Counterparty (or any other
property, or any combination thereof) pursuant to any exchange offer or similar
transaction. For the avoidance of doubt, any conversion of Convertible Notes
pursuant to the terms of the Indenture shall not constitute a Repurchase Event.
	 
	 	(ii)	 	Notwithstanding anything to the contrary in this Confirmation, the receipt by Dealer from
Counterparty, within the applicable time period set forth under “Notice of Exercise” above, of
any Notice of Exercise in respect of Options that relate to Convertible Notes as to which
additional Shares would be added to the Conversion Rate pursuant to Section 14.03 of the
Indenture in connection with a “Make-Whole Fundamental Change” (as defined in the Indenture)
shall constitute an Additional Termination Event as provided in this Section 9(h)(ii). Upon
receipt of any such Notice of Exercise, Dealer shall designate an Exchange Business Day
following such Additional Termination Event (which Exchange Business Day shall in no event be
earlier than the related settlement date for such Convertible Notes) as an Early Termination
Date with respect to the portion of this Transaction corresponding to a number of Options (the
“Make-Whole Conversion Options”) equal to the lesser of (A) the number of such Options
specified in such Notice of Exercise and (B) the Number of Options as of the date Dealer
designates such Early Termination Date and, as of such date, the Number of Options shall be
reduced by the number of Make-Whole Conversion Options. Any payment hereunder with respect to
such termination shall be calculated pursuant to Section 6 of the Agreement as if (1) an Early
Termination Date had been designated in respect of a Transaction having terms identical to
this Transaction and a Number of Options equal to the number of Make-Whole Conversion Options,
(2) Counterparty were the sole Affected Party with respect to such Additional Termination
Event and (3) the terminated portion of the Transaction were the sole Affected Transaction
(and, for the avoidance of doubt, in determining the amount payable pursuant to Section 6 of
the Agreement, the Calculation Agent shall not take into account any adjustments to the Option
Entitlement that result from corresponding adjustments to the Conversion Rate pursuant to
Section 14.03 of the Indenture); provided that the amount of cash deliverable in respect of
such early termination by Dealer to Counterparty shall not be greater than the product of (x)
the Applicable Percentage and (y) the excess of (I) (1) the number of Make-Whole Conversion
Options multiplied by (2) the Conversion Rate (after taking into account any applicable
adjustments to the Conversion Rate pursuant to Section 14.03 of the Indenture) multiplied by
(3) a price per Share determined by the Calculation Agent over (II) the aggregate principal
amount of

17

 

	 	 	 	such Convertible Notes, as determined by the Calculation Agent in a commercially
reasonable manner.

	 	(i)	 	Amendments to Equity Definitions.

	 	(i)	 	Section 12.6(a)(ii) of the Equity Definitions is hereby amended by (1) deleting from the
fourth line thereof the word “or” after the word “official” and inserting a comma therefor,
and (2) deleting the semi-colon at the end of subsection (B) thereof and inserting the
following words therefor “or (C) at Dealer’s option, the occurrence of any of the events
specified in Section 5(a)(vii)(1) through (9) of the ISDA Master Agreement with respect to
that Issuer.”
	 
	 	(ii)	 	Section 12.9(b)(i) of the Equity Definitions is hereby amended by (1) replacing “either party
may elect” with “Dealer may elect” and (2) replacing “notice to the other party” with “notice
to Counterparty” in the first sentence of such section.

	 	(j)	 	No Set-off. Each party waives any and all rights it may have to set off obligations
arising under the Agreement and the Transaction against other obligations between the parties,
whether arising under any other agreement, applicable law or otherwise.
	 
	 	(k)	 	Alternative Calculations and Payment on Early Termination and on Certain Extraordinary
Events. If in respect of the Transaction, an amount is payable by Dealer to Counterparty
(i) pursuant to Section 12.7 or Section 12.9 of the Equity Definitions or (ii) pursuant to
Section 6(d)(ii) of the Agreement (any such amount, a “Payment Obligation”), Counterparty may
request Dealer to satisfy the Payment Obligation by the Share Termination Alternative (as
defined below) (except that Counterparty shall not have the right to make such an election in
the event of (I) a Nationalization, Insolvency, Merger Event or Tender Offer, in each case, in
which the consideration to be paid to holders of Shares consists solely of cash, (II) a Merger
Event or Tender Offer that is within Counterparty’s control, or (III) an Event of Default in
which Counterparty is the Defaulting Party or a Termination Event in which Counterparty is the
Affected Party, other than an Event of Default of the type described in Section 5(a)(iii),
(v), (vi), (vii) or (viii) of the Agreement or a Termination Event of the type described in
Section 5(b) of the Agreement in each case that resulted from an event or events outside
Counterparty’s control) and shall give irrevocable telephonic notice to Dealer, confirmed in
writing within one Scheduled Trading Day, no later than 12:00 p.m. (New York City time) on the
Merger Date, the Tender Offer Date, the Announcement Date (in the case of Nationalization,
Insolvency or Delisting), the Early Termination Date or date of cancellation, as applicable;
provided that if Counterparty does not validly request Dealer to satisfy the Payment
Obligation by the Share Termination Alternative, Dealer shall have the right, in its sole
discretion, to satisfy its Payment Obligation by the Share Termination Alternative,
notwithstanding Counterparty’s election to the contrary.

	 	 	 

	Share Termination Alternative:

	 	If applicable, Dealer shall deliver
to Counterparty the Share
Termination Delivery Property on, or
within a commercially
reasonable period of time after,
the date when the relevant
Payment Obligation would
otherwise be due pursuant to
Section 12.7 or 12.9 of the
Equity Definitions or Section
6(d)(ii) and 6(e) of the
Agreement, as applicable (the
“Share Termination Payment
Date”), in satisfaction of
such Payment Obligation in the
manner reasonably requested
by Counterparty free of payment.
	 
	 	 
	Share Termination Delivery Property:

	 	A number of Share Termination
Delivery Units, as
calculated by the Calculation
Agent, equal to the Payment
Obligation divided by the Share
Termination Unit Price. The
Calculation Agent shall
adjust the Share Termination
Delivery Property by

18

 

	 	 	 

	 

	 	replacing any fractional portion of a
security therein with an amount
of cash equal to the value of such
fractional security based on the
values used to calculate the
Share Termination Unit Price.

	 
	 	 
	Share Termination Unit Price:

	 	The value to Dealer of property
contained in one Share Termination Delivery Unit, as
determined by the Calculation
Agent in its discretion by
commercially reasonable means and
notified by the Calculation
Agent to Dealer at the time of
notification of the Payment
Obligation. For the avoidance
of doubt, the parties agree that in
determining the Share Termination
Delivery Unit Price the
Calculation Agent may consider the
purchase price paid in connection
with the purchase of Share
Termination Delivery Property.
	 
	 	 
	Share Termination Delivery Unit: 

Failure to Deliver:

	 	
One Share or, if a Merger Event has
occurred and a corresponding adjustment to the
Transaction has been made, a
unit consisting of the number or amount
of each type of property
received by a holder of one
Share (without consideration of any
requirement to pay cash or
other consideration in lieu of
fractional amounts of any
securities) in such Merger Event, as
determined by the Calculation
Agent. 

Applicable
	 
	 	 
	Other applicable provisions:

	 	If Share Termination Alternative is
applicable, the provisions of
Sections 9.8, 9.9 and 9.11 (as
modified above) of the Equity
Definitions and the provisions
set forth opposite the caption
“Representation and Agreement”
in Section 2 will be applicable as
if Physical Settlement were
applicable.

	 	(l)	 	Waiver of Jury Trial. Each party waives, to the fullest extent permitted by
applicable law, any right it may have to a trial by jury in respect of any suit, action or
proceeding relating to the Transaction. Each party (i) certifies that no representative,
agent or attorney of either party has represented, expressly or otherwise, that such other
party would not, in the event of such a suit, action or proceeding, seek to enforce the
foregoing waiver and (ii) acknowledges that it and the other party have been induced to enter
into the Transaction, as applicable, by, among other things, the mutual waivers and
certifications provided herein.
	 
	 	(m)	 	Registration. Counterparty hereby agrees that if, in the good faith reasonable
judgment of Dealer based on the advice of counsel, the Shares (“Hedge Shares”) acquired by
Dealer for the purpose of hedging its obligations pursuant to the Transaction cannot be sold
in the public market by Dealer without registration under the Securities Act, Counterparty
shall, at its election, either (i) in order to allow Dealer to sell the Hedge Shares in a
registered offering, make available to Dealer an effective registration statement under the
Securities Act and enter into an agreement, in form and substance satisfactory to Dealer,
substantially in the form of an underwriting agreement for a registered secondary offering of
substantially similar size; provided, however, that if Dealer, in its sole reasonable
discretion, is not satisfied with access to due diligence materials, the results of its due
diligence investigation, or the procedures and documentation for the registered offering
referred to above, then clause (ii) or clause (iii) of this paragraph shall apply at the
election of Counterparty, (ii) in order to allow Dealer to sell the Hedge Shares in a private
placement, enter into a private placement agreement substantially similar to private placement
purchase agreements customary for private placements of equity securities of substantially
similar size, in form and

19

 

	 	 	 	substance satisfactory to Dealer (in which case, the Calculation Agent shall make any
adjustments to the terms of the Transaction that are necessary, in its reasonable judgment,
to compensate Dealer for any discount from the public market price of the Shares incurred on
the sale of Hedge Shares in a private placement), or (iii) purchase the Hedge Shares from
Dealer at the Relevant Price on such Exchange Business Days, and in the amounts, requested
by Dealer.
	 
	 	(n)	 	Tax Disclosure. Effective from the date of commencement of discussions concerning
the Transaction, Counterparty and each of its employees, representatives, or other agents may
disclose to any and all persons, without limitation of any kind, the tax treatment and tax
structure of the Transaction and all materials of any kind (including opinions or other tax
analyses) that are provided to Counterparty relating to such tax treatment and tax structure.
	 
	 	(o)	 	Right to Extend.  Dealer may postpone or add, in whole or in part, any Valid Day or
Valid Days during the Settlement Averaging Period or any other date of valuation, payment or
delivery by Dealer, with respect to some or all of the Options hereunder, if Dealer reasonably
determines based on the advice of counsel, in its discretion, that such action is reasonably
necessary or advisable to preserve Dealer’s hedging or hedge unwind activity hereunder in
light of existing liquidity conditions or to enable Dealer to effect purchases of Shares in
connection with its hedging, hedge unwind or settlement activity hereunder in a manner that
would, if Dealer were Counterparty or an affiliated purchaser of Counterparty, be in
compliance with applicable legal, regulatory or self-regulatory requirements, or with related
policies and procedures applicable to Dealer.
	 
	 	(p)	 	Status of Claims in Bankruptcy. Dealer acknowledges and agrees that this
Confirmation is not intended to convey to Dealer rights against Counterparty with respect to
the Transaction that are senior to the claims of common stockholders of Counterparty in any
United States bankruptcy proceedings of Counterparty; provided that nothing herein shall limit
or shall be deemed to limit Dealer’s right to pursue remedies in the event of a breach by
Counterparty of its obligations and agreements with respect to the Transaction; provided,
further, that nothing herein shall limit or shall be deemed to limit Dealer’s rights in
respect of any transactions other than the Transaction.
	 
	 	(q)	 	Securities Contract; Swap Agreement.  The parties hereto intend for (i) the
Transaction to be a “securities contract” and a “swap agreement” as defined in the Bankruptcy
Code (Title 11 of the United States Code) (the “Bankruptcy Code”), and the parties hereto to
be entitled to the protections afforded by, among other Sections, Sections 362(b)(6),
362(b)(17), 546(e), 546(g), 555 and 560 of the Bankruptcy Code, (ii) a party’s right to
liquidate the Transaction and to exercise any other remedies upon the occurrence of any Event
of Default under the Agreement with respect to the other party to constitute a “contractual
right” as described in the Bankruptcy Code, and (iii) each payment and delivery of cash,
securities or other property hereunder to constitute a “margin payment” or “settlement
payment” and a “transfer” as defined in the Bankruptcy Code.
	 
	 	 	 	(r) Notice of Certain Other Events. Counterparty covenants and agrees that:

	 	(i)	 	promptly following the public announcement of the results of any election by the holders of
Shares with respect to the consideration due upon consummation of any consolidation, merger
and binding share exchange to which Counterparty is a party, or any sale of all or
substantially all of Counterparty’s assets, in each case pursuant to which the Shares will be
converted into cash, securities or other property, Counterparty shall give Dealer written
notice of the types and amounts of consideration that holders of Shares have elected to
receive upon consummation of such transaction or event (the date of such notification, the
“Consideration Notification Date”); provided that in no event shall the Consideration
Notification Date be later than the date on which such transaction or event is consummated;
and
	 
	 	(ii)	 	promptly following any adjustment to the Convertible Notes in connection with any Potential
Adjustment Event, Merger Event or Tender Offer, Counterparty shall give Dealer written notice
of the details of such adjustment.

20

 

	 	(s)	 	Wall Street Transparency and Accountability Act. In connection with Section 739 of
the Wall Street Transparency and Accountability Act of 2010 (“WSTAA”), the parties hereby
agree that neither the enactment of WSTAA or any regulation under the WSTAA, nor any
requirement under WSTAA or an amendment made by WSTAA, shall limit or otherwise impair either
party’s otherwise applicable rights to terminate, renegotiate, modify, amend or supplement
this Confirmation or the Agreement, as applicable, arising from a termination event, force
majeure, illegality, increased costs, regulatory change or similar event under this
Confirmation, the Equity Definitions incorporated herein, or the Agreement (including, but not
limited to, rights arising from Change in Law, Hedging Disruption, Increased Cost of Hedging,
an Excess Ownership Position, or Illegality (as defined in the Agreement)).
	 
	 	(t)	 	Early Unwind. In the event the sale of the “Underwritten Securities” (as defined in
the Purchase Agreement) is not consummated with the Representatives for any reason, or
Counterparty fails to deliver to Dealer opinions of counsel as required pursuant to Section
9(a), in each case by 5:00 p.m. (New York City time) on the Premium Payment Date, or such
later date as agreed upon by the parties (the Premium Payment Date or such later date, the
“Early Unwind Date”), the Transaction shall automatically terminate (the “Early Unwind”) on
the Early Unwind Date and (i) the Transaction and all of the respective rights and obligations
of Dealer and Counterparty under the Transaction shall be cancelled and terminated and (ii)
each party shall be released and discharged by the other party from and agrees not to make any
claim against the other party with respect to any obligations or liabilities of the other
party arising out of and to be performed in connection with the Transaction either prior to or
after the Early Unwind Date; provided that, other than in cases involving a breach of the
Purchase Agreement by Dealer, Counterparty shall purchase from Dealer on the Early Unwind Date
all Shares purchased by Dealer or one or more of its affiliates in connection with the
Transaction at the then prevailing market price. Each of Dealer and Counterparty represents
and acknowledges to the other that, subject to the proviso included in this Section 9(r), upon
an Early Unwind, all obligations with respect to the Transaction shall be deemed fully and
finally discharged.
	 
	 	(u)	 	Payment by Counterparty. In the event that (i) an Early Termination Date occurs or is
designated with respect to the Transaction as a result of a Termination Event or an Event of
Default (other than an Event of Default arising under Section 5(a)(ii) or 5(a)(iv) of the
Agreement) and, as a result, Counterparty owes to Dealer an amount calculated under Section
6(e) of the Agreement, or (ii) Counterparty owes to Dealer, pursuant to Section 12.7 or
Section 12.9 of the Equity Definitions, an amount calculated under Section 12.8 of the Equity
Definitions, such amount shall be deemed to be zero.

[Remainder of Page Intentionally Blank]

21

 

	 	 	     Please confirm that the foregoing correctly sets forth the terms of our agreement by
executing this Confirmation and returning it to The Royal Bank of Scotland pic, c/o RBS Securities
Inc., 600 Washington Blvd., Stamford, CT 06901, Attn: Legal Department (Tarn Beattie), or by fax
to: (203) 873-4571, with copy to The Royal Bank of Scotland plc, c/o RBS Global Banking & Markets,
280 Bishopsgate, London EC2M 4RB, Attn: Swap Administration, or by fax to: +44 (0) 20 7085 5050.

	 	 	 	 	 	 	 

	 	 	Very truly yours,
	 
	 	 	 	 	 	 
	 	 	 	 	THE ROYAL BANK OF SCOTLAND PLC
	 
	 	 	 	 	 	 
	 	 	 	 	By: RBS Securities Inc., as its agent
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Robert McKillip
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Robert McKillip
	 

	 	 	 	Title:
	 	Managing Director

	 	 	 	 	 

	Accepted and confirmed	 	 
	as of the Trade Date:
6/9/11	 	 
	 
	 	 	 	 
	Integra Life Sciences Holdings Corporation	 	 
	 
	 	 	 	 
	By:

	 	/s/ Nora Brennan	 	 
	 

	 	 	 	 
	Authorized Signatory	 	 
	Name: Nora Brennan	 	

[RBS
Bond Hedge Confirmation]exv10w7

 Exhibit
10.7

EXECUTION VERSION

RBC Capital Markets, LLC

as agent for Royal Bank of Canada

3 World Financial Center — 8th Floor

200 Vesey Street 

New York, NY 10006-1404

Attn: Andrew Apthorpe

Telephone: 212-858-7000

Facsimile: 212-428-3053

June 9, 2011

	 	 	 

	To:

	 	Integra LifeSciences Holdings Corporation
	 

	 	311 Enterprise Drive
	 

	 	Plainsboro, NJ 08536
	 

	 	Attention: Treasurer
	 

	 	Telephone No.: (609) 275-0500
	 

	 	Facsimile No.: (609) 750-4264
	 
	 	 
	Re:

	 	Base Warrants

     The purpose of this letter agreement (this “Confirmation”) is to confirm the terms and
conditions of the Warrants issued by Integra LifeSciences Holdings Corporation (“Company”) to Royal
Bank of Canada (“Dealer”) as of the Trade Date specified below (the “Transaction”). This letter
agreement constitutes a “Confirmation” as referred to in the ISDA Master Agreement specified below.
This Confirmation shall replace any previous agreements and serve as the final documentation for
the Transaction.

     The definitions and provisions contained in the 2002 ISDA Equity Derivatives Definitions (the
“Equity Definitions”), as published by the International Swaps and Derivatives Association, Inc.
(“ISDA”), are incorporated into this Confirmation. In the event of any inconsistency between the
Equity Definitions and this Confirmation, this Confirmation shall govern. The Transaction shall be
deemed to be a Share Option Transaction within the meaning set forth in the Equity Definitions.

     Each party is hereby advised, and each such party acknowledges, that the other party has
engaged in, or refrained from engaging in, substantial financial transactions and has taken other
material actions in reliance upon the parties’ entry into the Transaction to which this
Confirmation relates on the terms and conditions set forth below.

1. This Confirmation evidences a complete and binding agreement between Dealer and Company as to
the terms of the Transaction to which this Confirmation relates. This Confirmation shall
supplement, form a part of, and be subject to an agreement in the form of the 2002 ISDA Master
Agreement (the “Agreement”) as if Dealer and Company had executed an agreement in such form (but
without any Schedule except for (i) the election of the laws of the State of New York as the
governing law (without reference to choice of law doctrine); (ii) the election that the “Cross
Default” provisions of Section 5(a)(vi) of the Agreement shall apply to both parties, provided that
(a) the phrase “or becoming capable at such time of being declared” shall be deleted from clause
(1) of such Section 5(a)(vi); (b) the following language shall be added to the end thereof:
“Notwithstanding the foregoing, a default under subsection (2) hereof shall not constitute an Event
of Default if (i) the default was caused solely by error or omission of an administrative or
operational nature; (ii) funds were available to enable the party to make the payment when due; and
(iii) the payment is made within two Local Business Days of such party’s receipt of written notice
of its failure to pay.”; (c) “Specified Indebtedness” will have the meaning specified in Section 14
of the Agreement, except that such term shall not include obligations in respect of deposits
received in the ordinary course of a party’s banking business; and (d) “Threshold Amount” means in
relation to Dealer, three percent (3%) of shareholders’ equity of Dealer and in relation to
Company, USD 25 million.)) on the
Trade Date. In the event of any inconsistency between provisions of that Agreement and this
Confirmation, this Confirmation will prevail for

 

the purpose of the Transaction to which this Confirmation relates. The parties hereby agree that no
Transaction other than the Transaction to which this Confirmation relates shall be governed by the
Agreement.

2. The Transaction is a Warrant Transaction, which shall be considered a Share Option Transaction
for purposes of the Equity Definitions. The terms of the particular Transaction to which this
Confirmation relates are as follows:

General Terms.

	 	 	 

	Trade Date:

	 	June 9, 2011
	 
	 	 
	Effective Date:

	 	The third Exchange Business Day
immediately prior to
the Premium Payment Date
	 
	 	 
	Warrants:

	 	Equity call warrants, each giving
the holder the right to
purchase a number of Shares equal to the Warrant
Entitlement at a price per Share equal to the Strike Price,
subject to the terms set forth under the caption
“Settlement Terms” below. For the purposes of
the
Equity Definitions, each reference to a Warrant
herein
shall be deemed to be a reference to a Call Option.
	 
	 	 
	Warrant Style:

	 	European
	 
	 	 
	Seller:

	 	Company
	 
	 	 
	Buyer:

	 	Dealer
	 
	 	 
	Shares:

	 	The common stock of Company, par value USD 0.01 per
Share (Exchange symbol “IART”)
	 
	 	 
	Number of Warrants:

	 	1,392,736. For the avoidance of doubt, the Number
of
Warrants shall be reduced by any Warrants exercised or
deemed exercised hereunder. In no event will
the
Number of Warrants be less than zero.
	 
	 	 
	Warrant Entitlement:

	 	One Share per Warrant
	 
	 	 
	Strike Price:

	 	USD 70.05.
	 
	 	 
	 

	 	Notwithstanding anything to the contrary in
the
Agreement, this Confirmation or the Equity Definitions,
in no event shall the Strike Price be subject to adjustment
to the extent that, after giving effect to such adjustment,
the Strike Price would be less than USD 46.68, except for
any adjustment pursuant to the terms of this Confirmation
and the Equity Definitions in connection with stock splits
or similar changes to Company’s capitalization.
	 
	 	 
	Premium:

	 	USD 9,896,000
	 
	 	 
	Premium Payment Date:

	 	June 15, 2011
	 
	 	 
	Exchange:

	 	The NASDAQ Global Select Market
	 
	 	 
	Related Exchange(s):

	 	All Exchanges
	 
	 	 
	Procedures for
Exercise.
	 	 

2

 

	 	 	 

	Expiration Time:

	 	The Valuation Time
	 
	 	 
	Expiration Dates:

	 	Each Scheduled Trading Day during the period from, and
including, the First Expiration Date to, but excluding, the
100th Scheduled Trading Day following the First
Expiration Date shall be an “Expiration Date” for a
number of Warrants equal to the Daily Number of
Warrants on such date; provided that, notwithstanding
anything to the contrary in the Equity Definitions, if any
such date is a Disrupted Day, the Calculation Agent shall
(i) make adjustments, if applicable, to the Daily Number
of Warrants or shall reduce such Daily Number of
Warrants to zero for which such day shall be an
Expiration Date and shall designate a Scheduled Trading
Day or a number of Scheduled Trading Days as the
Expiration Date(s) for the remaining Daily Number of
Warrants or a portion thereof for the originally scheduled
Expiration Date and (ii) if the Daily Number of Warrants
for such Disrupted Day is not reduced to zero, determine
the Settlement Price for such Disrupted Day based on
transactions in the Shares on such Disrupted Day taking
into account the nature and duration of such Market
Disruption Event on such day; and provided further that if
such Expiration Date has not occurred pursuant to this
clause as of the eighth Scheduled Trading Day following
the last scheduled Expiration Date under the Transaction,
the Calculation Agent shall have the right to declare such
Scheduled Trading Day to be the final Expiration Date
and the Calculation Agent shall determine its good faith
estimate of the fair market value for the Shares as of the
Valuation Time on that eighth Scheduled Trading Day or
on any subsequent Scheduled Trading Day, as the
Calculation Agent shall determine using commercially
reasonable means. Any Scheduled Trading Day on which,
as of the date hereof, the Exchange is scheduled to close
prior to its normal close of trading shall be deemed not to
be a Scheduled Trading Day; if a closure of the Exchange
prior to its normal close of trading on any Scheduled
Trading Day is scheduled following the date hereof, then
such Scheduled Trading Day shall be deemed to be a
Disrupted Day in full.
	 
	 	 
	First Expiration Date:

	 	March 15, 2017 (or if such day is not a Scheduled Trading
Day, the next following Scheduled Trading Day), subject
to Market Disruption Event below.
	 
	 	 
	Daily Number of Warrants:

	 	For any Expiration Date, the Number of Warrants that
have not expired or been exercised as of such day, divided
by the remaining number of Expiration Dates (including
such day), rounded down to the nearest whole number,
subject to adjustment pursuant to the provisos to
“Expiration Dates”.
	 
	 	 
	Automatic Exercise:

	 	Applicable; and means that for each Expiration Date, a
number of Warrants equal to the Daily Number of
Warrants (as adjusted pursuant to the terms hereof) for

3

 

	 	 	 

	 

	 	such Expiration Date will be deemed to be automatically
exercised at the Expiration Time on such Expiration Date.
	 
	 	 
	Market Disruption Event:

	 	Section 6.3(a)(ii) of the Equity Definitions is hereby
amended by replacing clauses (ii) and (iii) in their entirety
with “(ii) an Exchange Disruption, (iii) an Early Closure
or (iv) a Regulatory Disruption; in each case that the
Calculation Agent determines is material.”
	 
	 	 
	Regulatory Disruption:

	 	Any event that Dealer, in its discretion based on the
advice of counsel, determines makes it advisable with
regard to any legal, regulatory or self-regulatory
requirements or related policies and procedures, for
Dealer to refrain from or decrease any market activity in
connection with the Transaction. Dealer shall notify
Issuer as soon as reasonably practicable that a Regulatory
Disruption has occurred and the Expiration Dates affected
by it.
	 
	 	 
	Valuation
Terms.
	 	 
	 
	 	 
	Valuation Time:

	 	Scheduled Closing Time; provided that if the principal
trading session is extended, the Calculation Agent shall
determine the Valuation Time in its reasonable discretion.
	 
	 	 
	Valuation Date:

	 	Each Exercise Date.
	 
	 	 
	Settlement Terms.
	 	 
	 
	 	 
	Settlement Method Election:

	 	Applicable; provided that (i) references to “Physical
Settlement” in Section 7.1 of the Equity Definitions shall be
replaced by references to “Net Share Settlement”; (ii) the
following is hereby inserted after the words “apply to such
Transaction” in the seventh line of Section 7.1 of the Equity
Definitions:
	 
	 	 
	 

	 	“and, if Cash Settlement is elected, the percentage of
Company’s settlement obligations with respect to such
Transaction, which percentage shall be greater than 0% and
less than or equal to 100%, that shall be settled in cash (the
“Cash Percentage”)”;
	 
	 	 
	 

	 	(iii) Company’s election of Cash Settlement shall be deemed
to be a representation and warranty by Company that on the
date of such election (A) Company is not in possession of
any material non-public information regarding Company or
the Shares, (B) Company is electing Cash Settlement in good
faith and not as part of a plan or scheme to evade compliance
with the federal securities laws, and (C) the assets of
Company at their fair valuation exceed the liabilities of
Company (including contingent liabilities), the capital of
Company is adequate to conduct the business of Company,
and Company has the ability to pay its debts and obligations
as such debts mature and does not intend to, or does not
believe that it will, incur debt beyond its ability to pay as
such debts mature; (iv) the same election of settlement
method and Cash Percentage shall apply to all Expiration
Dates hereunder ; (v) if Company elects Cash Settlement and

4

 

	 	 	 

	 

	 	specifies a Cash Percentage that is less than or equal to 0%
or greater than 100%, then the notice delivered by Company
will be deemed to be ineffective and the Default Settlement
Method will be deemed applicable to such Transaction and
(vi) Company may elect a Cash Percentage only if no event
of default has occurred and is continuing under any
indebtedness of Company or its subsidiaries in an aggregate
principal amount of $100 million or more.
	 
	 	 
	Electing Party:

	 	Company
	 
	 	 
	Settlement Method Election Date:

	 	The third Scheduled Trading Day immediately preceding the
First Expiration Date.
	 
	 	 
	Default Settlement Method:

	 	Net Share Settlement
	 
	 	 
	Cash Percentage:

	 	0%; provided, however, that if Company (i) validly delivers
notice of Cash Settlement hereunder and (ii) in such notice
validly elects a Cash Percentage greater than 0% and less
than or equal to 100%, the Cash Percentage shall equal the
percentage specified as such in such notice.
	 
	 	 
	Net Share Settlement:

	 	On the relevant Settlement Date, Company shall deliver
to Dealer a number of Shares equal to the Share Delivery
Quantity for such Settlement Date to the account specified
hereto free of payment through the Clearance System and
pay to Dealer an amount of cash in USD the Fractional
Share Amount for such Settlement Date. For purposes of
determining any dividends or distributions payable in
respect of such Shares, Dealer shall be treated as the
holder of record of such Shares at the time of delivery of
such Shares or, if earlier, at 5:00 p.m. (New York City
time) on such Settlement Date.
	 
	 	 
	Share Delivery Quantity:

	 	For any Settlement Date, a number of Shares, as
calculated by the Calculation Agent, equal to the product
of (i) one minus the Cash Percentage, expressed as a
fraction, and (ii) the Net Share Settlement Amount for
such Settlement Date divided by  the Settlement Price on
the Valuation Date for such Settlement Date, rounded
down to the nearest whole number (for any Settlement
Date, the fraction of a share eliminated by such rounding,
the “Share Fraction” for such Settlement Date).
	 
	 	 
	Fractional Share Amount:

	 	An amount of cash in USD equal to the product of (i) the
Share Fraction for such Settlement Date and (ii) the
Settlement Price on the Valuation Date for such
Settlement Date.
	 
	 	 
	Net Share Settlement Amount:

	 	For any Settlement Date, an amount equal to the product
of (i) the Number of Warrants exercised or deemed
exercised on the relevant Exercise Date, (ii) the Strike
Price Differential for the relevant Valuation Date and (iii)
the Warrant Entitlement.
	 
	 	 
	Cash Settlement:

	 	If Cash Settlement is applicable, then, on the relevant
Settlement Date, Company shall (i) pay to Dealer an amount
of cash in USD equal to sum of (A) the product of (x) the

5

 

	 	 	 

	 

	 	Cash Percentage and (y) the Net Share Settlement Amount
for such Settlement Date and (B) the Fractional Share
Amount, if any, for such Settlement Date and (ii) deliver to
Dealer a number of Shares equal to the Share Delivery
Quantity for such Settlement Date to the account specified
hereto free of payment through the Clearance System. The
provisions opposite Net Share Settlement above shall apply
to any Shares delivered pursuant to clause (ii) of the
immediately preceding sentence.
	 
	 	 
	Settlement Price:

	 	For any Valuation Date, the per Share volume-weighted
average price as displayed under the heading “Bloomberg
VWAP” on Bloomberg page IART <equity> AQR (or
any successor thereto) in respect of the period from the
scheduled opening time of the Exchange to the Scheduled
Closing Time on such Valuation Date (or if such volume-weighted average price is unavailable, the market value of
one Share on such Valuation Date, as determined by the
Calculation Agent). Notwithstanding the foregoing, if (i)
any Expiration Date is a Disrupted Day and (ii) the
Calculation Agent determines that such Expiration Date
shall be an Expiration Date for fewer than the Daily
Number of Warrants, as described above, then the
Settlement Price for the relevant Valuation Date shall be
the volume-weighted average price per Share on such
Valuation Date on the Exchange, as determined by the
Calculation Agent based on such sources as it deems
appropriate using a volume-weighted methodology, for
the portion of such Valuation Date for which the
Calculation Agent determines there is no Market
Disruption Event.
	 
	 	 
	Settlement Dates:

	 	As determined pursuant to Section 9.4 of the Equity
Definitions, subject to Section 9(k)(i) hereof.
	 
	 	 
	Other Applicable Provisions:

	 	If Net Share Settlement is applicable, the provisions of
Sections 9.1(c), 9.8, 9.9, 9.11 (as modified below), 9.12
and 10.5 of the Equity Definitions will be applicable as if
Physical Settlement were applicable.
	 
	 	 
	Representation and Agreement:

	 	Notwithstanding Section 9.11 of the Equity Definitions,
the parties acknowledge that any Shares delivered to
Dealer may be, upon delivery, subject to restrictions and
limitations arising from Company’s status as issuer of the
Shares under applicable securities laws.
	3. Additional
Terms applicable to the
Transaction.

	 	
	 
	 	 
	Adjustments applicable to the Transaction:

	 	 
	 
	 	 
	Method of Adjustment:

	 	 Calculation Agent Adjustment. For the avoidance of
doubt, in making any adjustments under the Equity
Definitions, the Calculation Agent may make
adjustments, if any, to any one or more of the Strike Price,
the Number of Warrants, the Daily Number of Warrants
and the Warrant Entitlement. Notwithstanding the
foregoing, any cash dividends or distributions on the

6

 

	 	 	 	 	 

	 

	 	 	 	Shares, whether or not extraordinary, shall be governed
by Section 9(f) of this Confirmation in lieu of Article 10
or Section 11.2(c) of the Equity Definitions.
	 
	 	 	 	 
	 

	 	Extraordinary Events applicable to the Transaction:	 	 
	 
	 	 	 	 
	 

	 	   New Shares:
	 	Section 12.1(i) of the Equity Definitions is hereby
amended (a) by deleting the text in clause (i) thereof in its
entirety (including the word “and” following clause (i))
and replacing it with the phrase “publicly quoted, traded
or listed (or whose related depositary receipts are publicly
quoted, traded or listed) on any of the New York Stock
Exchange, The NASDAQ Global Select Market or The
NASDAQ Global Market (or their respective successors)”
and (b) by inserting immediately prior to the period the
phrase “and (iii) of an entity or person organized under
the laws of the United States, any State thereof or the
District of Columbia that also becomes Company under
the Transaction following such Merger Event or Tender
Offer”.
	 
	 	 	 	 
	 

	 	Consequence of Merger Events:	 	 
	 
	 	 	 	 
	 

	 	   Merger Event:
	 	Applicable; provided that if an event occurs that
constitutes both a Merger Event under Section 12.1(b) of
the Equity Definitions and an Additional Termination
Event under Section 9(h)(ii)(B) of this Confirmation,
Dealer may elect, in its commercially reasonable
judgment, whether the provisions of Section 12.1(b) of
the Equity Definitions or Section 9(h)(ii)(B) will apply.
	 
	 	 	 	 
	 

	 	      Share-for-Share:
	 	Modified Calculation Agent Adjustment
	 
	 	 	 	 
	 

	 	      Share-for-Other:
	 	Cancellation and Payment (Calculation Agent
Determination)
	 
	 	 	 	 
	 

	 	      Share-for-Combined:
	 	Cancellation and Payment (Calculation Agent
Determination); provided that Dealer may elect, in its
commercially reasonable judgment, Component
Adjustment (Calculation Agent Determination).
	 
	 	 	 	 
	 

	 	Consequence of Tender Offers:	 	 
	 
	 	 	 	 
	 

	 	   Tender Offer:
	 	Applicable; provided that if an event occurs that
constitutes both a Tender Offer under Section 12.1(d) of
the Equity Definitions and Additional Termination Event
under Section 9(h)(ii)(A) of this Confirmation, Dealer
may elect, in its commercially reasonable judgment,
whether the provisions of Section 12.3 of the Equity
Definitions or Section 9(h)(ii)(A) will apply.
	 
	 	 	 	 
	 

	 	      Share-for-Share:
	 	Modified Calculation Agent Adjustment
	 
	 	 	 	 
	 

	 	      Share-for-Other:
	 	Modified Calculation Agent Adjustment
	 
	 	 	 	 
	 

	 	      Share-for-Combined:
	 	Modified Calculation Agent Adjustment

7

 

	 	 	 	 	 

	 

	 	Announcement Event:
	 	If an Announcement Date occurs in respect of a Merger
Event or Tender Offer (such occurrence or any
subsequent announcement relating to the same subject
matter, an “Announcement Event”), then on the earliest
of the Expiration Date, Early Termination Date or other
date of cancellation (the “Announcement Event
Adjustment Date”) in respect of each Warrant, the
Calculation Agent will determine the economic effect on
such Warrant of the Announcement Event (regardless of
whether the Announcement Event actually results in a
Merger Event or Tender Offer, and taking into account
such factors as the Calculation Agent may determine,
including, without limitation, changes in volatility,
expected dividends, stock loan rate or liquidity relevant to
the Shares or the Transaction whether prior to or after the
Announcement Event or for any period of time, including,
without limitation, the period from the Announcement
Event to the relevant Announcement Event Adjustment
Date). If the Calculation Agent determines that such
economic effect on any Warrant is material, then on the
Announcement Event Adjustment Date for such Warrant,
the Calculation Agent shall make such adjustment to the
exercise, settlement, payment or any other terms of such
Warrant as the Calculation Agent determines in its
reasonable discretion is appropriate to account for such
economic effect, which adjustment shall be effective
immediately prior to the exercise, termination or
cancellation of such Warrant, as the case may be. For the
avoidance of doubt, if more than one Announcement
Event occurs before the Announcement Event Adjustment
Date, such adjustment shall take into account each such
Announcement Event.
	 
	 	 	 	 
	 

	 	Announcement Date:
	 	The definition of “Announcement Date” in Section 12.1
of the Equity Definitions is hereby amended by (i)
replacing the words “a firm” with the word “any” in the
second and fourth lines thereof, (ii) replacing the word
“leads to the” with the words “, if completed, would lead
to a” in the third and the fifth lines thereof, (iii) replacing
the words “voting shares” with the word “Shares” in the
fifth line thereof, and (iv) inserting the words “by any
entity” after the word “announcement” in the second and
the fourth lines thereof.
	 
	 	 	 	 
	 

	 	Nationalization, Insolvency or Delisting:
	 	Cancellation and Payment (Calculation Agent
Determination); provided that, in addition to the
provisions of Section 12.6(a)(iii) of the Equity
Definitions, it will also constitute a Delisting if the
Exchange is located in the United States and the Shares
are not immediately re-listed, re-traded or re-quoted on
any of the New York Stock Exchange, The NASDAQ
Global Select Market or The NASDAQ Global Market (or
their respective successors); if the Shares are immediately
re-listed, re-traded or re-quoted on any of the New York
Stock Exchange, The NASDAQ Global Select Market or
The NASDAQ Global Market (or their respective

8

 

	 	 	 	 	 

	 

	 	 	 	successors), such exchange or quotation system shall
thereafter be deemed to be the Exchange.
	 
	 	 	 	 
	 

	 	Additional Disruption Events:	 	 
	 
	 	 	 	 
	 

	 	   Change in Law:
	 	Applicable; provided that (i) Section 12.9(a)(ii) of the
Equity Definitions is hereby amended by replacing the
parenthetical beginning after the word “regulation” in the
second line thereof with the words “(including, for the
avoidance of doubt and without limitation, (x) any tax law
or (y) adoption or promulgation of new regulations
authorized or mandated by existing statute)” and (ii)
Section 12.9(a)(ii)(X) of the Equity Definitions is hereby
amended by replacing the word “Shares” with the phrase
“Hedge Positions.”
	 
	 	 	 	 
	 

	 	   Failure to Deliver:
	 	Not Applicable
	 
	 	 	 	 
	 

	 	   Insolvency Filing:
	 	Applicable
	 
	 	 	 	 
	 

	 	   Hedging Disruption:
	 	Applicable; provided that:
	 
	 	 	 	 
	 

	 	 	 	(i)  Section 12.9(a)(v) of the Equity Definitions is
hereby amended by inserting the following two
phrases at the end of such Section;

“For the avoidance of doubt, the term “equity price
risk” shall be deemed to include, but shall not be
limited to, stock price and volatility risk. And, for
the further avoidance of doubt, any such
transactions or assets referred to in phrases (A) or
(B) above must be available on commercially
reasonable pricing terms.”; and

	 
	 	 	 	 
	 

	 	 	 	(ii)  Section 12.9(b)(iii) of the Equity Definitions is
hereby amended by inserting in the third line
thereof, after the words “to terminate the
Transaction”, the words “or a portion of the
Transaction affected by such Hedging Disruption”.

	 
	 	 	 	 
	 

	 	   Increased Cost of Hedging:
	 	Applicable
	 
	 	 	 	 
	 

	 	   Loss of Stock Borrow:
	 	Applicable
	 
	 	 	 	 
	 

	 	      Maximum Stock Loan Rate:
	 	200 basis points
	 
	 	 	 	 
	 

	 	   Increased Cost of Stock Borrow:
	 	Applicable
	 
	 	 	 	 
	 

	 	      Initial Stock Loan Rate:
	 	25 basis points
	 
	 	 	 	 
	 

	 	   Hedging Party:
	 	For all applicable Additional Disruption Events, Dealer.
	 
	 	 	 	 
	 

	 	Determining Party:
	 	For all applicable Extraordinary Events, Dealer.
	 
	 	 	 	 
	 

	 	Non-Reliance:
	 	Applicable
	 
	 	 	 	 
	 

	 	Agreements and Acknowledgments
Regarding Hedging Activities:
	 	Applicable

9

 

	 	 	 	 	 

	 

	 	Additional Acknowledgments:
	 	Applicable
	 
	 	 	 	 
	4.

	 	Calculation Agent.
	 	Dealer, whose judgments, determinations and calculations
shall be made in good faith and in a commercially
reasonable manner. Following any determination or
calculation by the Calculation Agent hereunder, upon a
written request by Company, the Calculation Agent will
provide to Company by e-mail to the e-mail address
provided by Company in such written request a report (in
a commonly used file format for the storage and
manipulation of financial data) displaying in reasonable
detail the basis for such calculation, it being understood
that the Calculation Agent shall not be obligated to
disclose any proprietary models used by it for such
calculation.

	5.	 	Account Details.

	 	(a)	 	Account for payments to Company:
	 
	 	 	 	Bank Name: Wells Fargo Bank 

ABA #: 121000248 

Beneficiary: First Clearing, LLC

Account #: 4122023377

FFC Account Name: Integra LifeSciences Holdings Corp 

FFC Account Number: 8595-0713
	 
	 	 	 	Account for delivery of Shares from Company:
	 
	 	 	 	American Stock Transfer & Trust Co LLC 
Transfer Agent # 2941 
Account # 10249

	 	(b)	 	Account for payments to Dealer:
	 
	 	 	 	Royal Bank of Canada 

JP Morgan Chase NY (CHASUS33)

ABA # 021-000-021 

Royal Bank of Canada (ROYCUS3X) 

A/C # 920-1-033363 

Ref: US Transit A/C 204-1499
	 
	 	 	 	Account for delivery of Shares to Dealer:
	 
	 	 	 	To be provided by Dealer.

	6.	 	Offices.

	 	(a)	 	The Office of Company for the Transaction is: Inapplicable, Company is not a
Multibranch Party.

	 	(b)	 	The Office of Dealer for the Transaction is: New York

	 	 	 	RBC Capital Markets, LLC 

as agent for Royal Bank of Canada 

3 World Financial Center — 8th Floor 

200 Vesey Street

10

 

	 	 	 	New York, New York 10281-8098

Telephone: 212-858-7000

	7.	 	Notices.

	 	(a)	 	Address for notices or communications to Company:

	 	 	 	Integra LifeSciences Holdings
Corporation 
311 Enterprise Drive

Plainsboro, NJ 08536 
Attention:
Treasurer 
Telephone No.: (609) 275-0500

Facsimile No.: (609) 750-4264

	 	(b)	 	Address for notices or communications to Dealer:

	 	 	 	Trade Affirmations and Settlements:

RBC Capital Markets, LLC

Attn: Structured Derivatives Documentation 
Three World Financial
Center 
200 Vesey Street 
New York, NY
10006-1404 USA

Facsimile Number: +1-212-858-7033 
e-Mail
Address: geda@rbccm.com

	 	 	 	Trade Confirmations: 

RBC Capital Markets, LLC

Attn: Structured Derivatives Documentation 

Three World Financial Center 

200 Vesey Street 

New York, NY 10281-1021 USA

Facsimile Number: +1-212-428-3053 

e-Mail Address: SDD@rbccm.com

	8.	 	Representations and Warranties of Company.

	 	 	Each of the representations and warranties of Company set forth in Section 3 of the
Purchase Agreement (the “Purchase Agreement”), dated as of June 9, 2011, between Company
and the representatives of the Initial Purchasers party thereto (the “Representatives”), is
true and correct and is hereby deemed to be repeated to Dealer as if set forth herein;
provided that no such representation or warranty, other than the representations and
warranties set forth in Sections 3(a), (b), (d) and (e) of the Purchase Agreement, may be
the basis of an Event of Default under Section 5(a)(iv) of the Agreement. Company hereby
further represents and warrants to Dealer on the date hereof, on and as of the Premium
Payment Date and, in the case of the representations in Section 8(d), at all times until
termination of the Transaction, that:

	 	(a)	 	Company has all necessary corporate power and authority to execute, deliver and perform
its obligations in respect of the Transaction; such execution, delivery and performance
have been duly authorized by all necessary corporate action on Company’s part; and this
Confirmation has been duly and validly executed and delivered by Company and constitutes
its valid and binding obligation, enforceable against Company in accordance with its terms,
subject to applicable bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium and similar laws
affecting creditors’ rights and remedies generally, and subject, as to enforceability, to
general principles of equity, including principles of commercial reasonableness, good faith
and fair dealing (regardless of whether enforcement is sought in a proceeding at law or in
equity) and except that rights to indemnification and contribution hereunder may be limited
by federal or state securities laws or public policy relating thereto.

11

 

	 	(b)	 	Neither the execution and delivery of this Confirmation nor the incurrence or
performance of obligations of Company hereunder will conflict with or result in a breach of
the certificate of incorporation or by-laws (or any equivalent documents) of Company, or
any applicable law or regulation, or any order, writ, injunction or decree of any court or
governmental authority or agency, or any agreement or instrument to which Company or any of
its subsidiaries is a party or by which Company or any of its subsidiaries is bound or to
which Company or any of its subsidiaries is subject, or constitute a default under, or
result in the creation of any lien under, any such agreement or instrument.

	 	(c)	 	No consent, approval, authorization, or order of, or filing with, any governmental
agency or body or any court is required in connection with the execution, delivery or
performance by Company of this Confirmation, except such as have been obtained or made and
such as may be required under the Securities Act of 1933, as amended (the “Securities Act”)
or state securities laws.

	 	(d)	 	A number of Shares equal to the Maximum Number of Shares (as defined below) (the
“Warrant Shares”) have been reserved for issuance by all required corporate action of
Company. The Warrant Shares have been duly authorized and, when delivered against payment
therefor (which may include Net Share Settlement in lieu of cash) and otherwise as
contemplated by the terms of the Warrants following the exercise of the Warrants in
accordance with the terms and conditions of the Warrants, will be validly issued,
fully-paid and non-assessable, and the issuance of the Warrant Shares will not be subject
to any preemptive or similar rights.

	 	(e)	 	Company is not and will not be required to register as an “investment company” as such
term is defined in the Investment Company Act of 1940, as amended.

	 	(f)	 	Company is an “eligible contract participant” (as such term is defined in Section
1a(12) of the Commodity Exchange Act, as amended, other than a person that is an eligible
contract participant under Section 1a(12)(C) of the Commodity Exchange Act).

	 	(g)	 	Each of Company and its officers and directors is not, on the date hereof, in
possession of any material non-public information with respect to Company or the Shares.

	9.	 	Other Provisions.

	 	(a)	 	Opinions. Company shall deliver to Dealer an opinion of counsel, dated as of the Trade
Date, with respect to the matters set forth in Sections 8(a) through (d) of this
Confirmation. Delivery of such opinion to Dealer shall be a condition precedent for the
purpose of Section 2(a)(iii) of the Agreement with respect to each obligation of Dealer
under Section 2(a)(i) of the Agreement.

	 	(b)	 	Repurchase Notices. Company shall, on any day on which Company effects any repurchase
of Shares, promptly give Dealer a written notice of such repurchase (a “Repurchase
Notice”) on such day if following such repurchase, the number of outstanding Shares
on such day, subject to any adjustments provided herein, is (i) less than
26,253,195 (in the case of the first such notice) or (ii) thereafter more than
1,988,648 less than the number of Shares included in the immediately preceding
Repurchase Notice. Company agrees to indemnify and hold harmless Dealer and its
affiliates and their respective officers, directors, employees, affiliates,
advisors, agents and controlling persons (each, an “Indemnified Person”) from and
against any and all losses (including losses relating to Dealer’s hedging
activities as a consequence of becoming, or of the risk of becoming, a Section 16
“insider”, including without limitation, any forbearance from hedging activities or
cessation of hedging activities and any losses in connection therewith with respect
to the Transaction), claims, damages, judgments, liabilities and expenses
(including reasonable attorney’s fees), joint or several, that an Indemnified
Person actually may become subject to, as a result of Company’s failure to provide
Dealer with a Repurchase Notice on the day and in the manner specified in this
paragraph, and to reimburse, within 30 days, upon written request, each of such
Indemnified Persons for any reasonable legal or other expenses incurred in
connection with investigating, preparing for, providing testimony or other evidence
in connection with or defending any of the foregoing. If any suit, action,
proceeding (including any

12

 

	 	 	 	governmental or regulatory investigation), claim or demand shall be brought or asserted
against the Indemnified Person, such Indemnified Person shall promptly notify Company in
writing, and Company, upon request of the Indemnified Person, shall retain counsel
reasonably satisfactory to the Indemnified Person to represent the Indemnified Person and
any others Company may designate in such proceeding and shall pay the fees and expenses of
such counsel related to such proceeding. Company shall not be liable for any settlement of
any proceeding effected without its written consent, but if settled with such consent or if
there be a final judgment for the plaintiff, Company agrees to indemnify any Indemnified
Person from and against any loss or liability by reason of such settlement or judgment.
Company shall not, without the prior written consent of the Indemnified Person, effect any
settlement of any pending or threatened proceeding in respect of which any Indemnified
Person is or could have been a party and indemnity could have been sought hereunder by such
Indemnified Person, unless such settlement includes an unconditional release of such
Indemnified Person from all liability on claims that are the subject matter of such
proceeding on terms reasonably satisfactory to such Indemnified Person. If the
indemnification provided for in this paragraph is unavailable to an Indemnified Person or
insufficient in respect of any losses, claims, damages or liabilities referred to therein,
then Company under such paragraph, in lieu of indemnifying such Indemnified Person
thereunder, shall contribute to the amount paid or payable by such Indemnified Person as a
result of such losses, claims, damages or liabilities. The remedies provided for in this
paragraph are not exclusive and shall not limit any rights or remedies that may otherwise
be available to any Indemnified Person at law or in equity. The indemnity and contribution
agreements contained in this paragraph shall remain operative and in full force and effect
regardless of the termination of the Transaction.

	 	(c)	 	Regulation M. Company is not on the Trade Date engaged in a distribution, as such term is used
in Regulation M under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), of any
securities of Company, other than a distribution meeting the requirements of the exception set
forth in Rules 101(b)(10) and 102(b)(7) of Regulation M. Company shall not, until the second
Scheduled Trading Day immediately following the Effective Date, engage in any such
distribution.

	 	(d)	 	No Manipulation. Company is not entering into the Transaction to create actual or apparent
trading activity in the Shares (or any security convertible into or exchangeable for the Shares) or
to raise or depress or otherwise manipulate the price of the Shares (or any security convertible
into or exchangeable for the Shares) or otherwise in violation of the Exchange Act.

	 	(e)	 	Transfer or Assignment. Company may not transfer any of its rights or obligations under the
Transaction without the prior written consent of Dealer. Dealer may, without Company’s consent,
transfer or assign all or any part of its rights or obligations under the Transaction to any third
party. If at any time at which (A) the Section 16 Percentage exceeds 7.5%, (B) the Warrant Equity
Percentage exceeds 14.5%, or (C) the Share Amount exceeds the Applicable Share Limit (if
any applies) (any such condition described in clauses (A), (B) or (C), an “Excess Ownership
Position”), Dealer is unable after using its commercially reasonable efforts to effect a
transfer or assignment of Warrants to a third party on pricing terms reasonably acceptable
to Dealer and within a time period reasonably acceptable to Dealer such that no Excess
Ownership Position exists, then Dealer may designate any Exchange Business Day as an Early
Termination Date with respect to a portion of the Transaction (the “Terminated Portion”),
such that following such partial termination no Excess Ownership Position exists. In the
event that Dealer so designates an Early Termination Date with respect to a Terminated
Portion, a payment shall be made pursuant to Section 6 of the Agreement as if (1) an Early
Termination Date had been designated in respect of a Transaction having terms identical to
the Transaction and a Number of Warrants equal to the number of Warrants underlying the
Terminated Portion, (2) Company were the sole Affected Party with respect to such partial
termination and (3) the Terminated Portion were the sole Affected Transaction (and, for the
avoidance of doubt, the provisions of Section 9(j) shall apply to any amount that is
payable by Company to Dealer pursuant to this sentence as if Company was not the Affected
Party). The “Section 16 Percentage” as of any day is the fraction, expressed as a
percentage, (A) the numerator of which is the number of Shares that Dealer and each person

13

 

	 	 	 	subject to aggregation of Shares with Dealer under Section 13 or Section 16 of the Exchange
Act and rules promulgated thereunder directly or indirectly beneficially own (as defined
under Section 13 or Section 16 of the Exchange Act and rules promulgated thereunder) and
(B) the denominator of which is the number of Shares outstanding. The “Warrant Equity
Percentage” as of any day is the fraction, expressed as a percentage, (A) the numerator of
which is the sum of (1) the product of the Number of Warrants and the Warrant Entitlement
and (2) the aggregate number of Shares underlying any other warrants purchased by Dealer
from Company, and (B) the denominator of which is the number of Shares outstanding. The
“Share Amount” as of any day is the number of Shares that Dealer and any person whose
ownership position would be aggregated with that of Dealer (Dealer or any such person, a
“Dealer Person”) under any law, rule, regulation, regulatory order or organizational
documents or contracts of Company that are, in each case, applicable to ownership of Shares
(“Applicable Restrictions”), owns, beneficially owns, constructively owns, controls, holds
the power to vote or otherwise meets a relevant definition of ownership under any
Applicable Restriction, as determined by Dealer in its reasonable discretion. The
“Applicable Share Limit” means a number of Shares equal to (A) the minimum number of Shares
that could give rise to reporting or registration obligations (except for any filings of
Schedule 13D or Schedule 13G under the Exchange Act or any other filing obligations
applicable as of the date hereof) or other requirements (including obtaining prior approval
from any person or entity) of a Dealer Person, or could result in an adverse effect on a
Dealer Person, under any Applicable Restriction, as determined by Dealer in its reasonable
discretion, minus (B) 1% of the number of Shares outstanding. Notwithstanding any other
provision in this Confirmation to the contrary requiring or allowing Dealer to purchase,
sell, receive or deliver any Shares or other securities, or make or receive any payment in
cash, to or from Company, Dealer may designate any of its affiliates to purchase, sell,
receive or deliver such Shares or other securities, or make or receive such payment in
cash, and otherwise to perform Dealer’s obligations in respect of the Transaction and any
such designee may assume such obligations. Dealer shall be discharged of its obligations to
Company to the extent of any such performance.

	 	(f)	 	Dividends. If at any time during the period from and including the Effective Date, to and
including the last Expiration Date, an ex-dividend date for a cash dividend occurs with respect to
the Shares (an “Ex-Dividend Date”), then the Calculation Agent will adjust any of the Strike Price,
Number of Warrants and/or Daily Number of Warrants to preserve the fair value of the Warrants to
Dealer after taking into account such dividend.

	 	(g)	 	Disclosure of Agency Relationship. Dealer has appointed, as its agent, its indirect
wholly-owned subsidiary, RBC Capital Markets, LLC (“RBCCM”), for purposes of conducting, on
Dealer’s behalf, a business in privately negotiated transactions in options and other derivatives.
Company hereby is advised that Dealer, the principal and stated counterparty in such transactions,
duly has authorized RBCCM to market, structure, negotiate, document, price, execute and hedge
transactions in over-the-counter derivative products.

	 	(h)	 	Additional Provisions.

	 	(i)	 	Amendments to the Equity Definitions:

	 	(A)	 	Section 11.2(a) of the Equity Definitions is hereby amended by deleting the
words “a diluting or concentrative” and replacing them with the words “an”; and
adding the phrase “or Warrants” at the end of the sentence.

	 	(B)	 	Section 11.2(c) of the Equity Definitions is hereby amended by (x) replacing
the words “a diluting or concentrative” with “an”, (y) adding the phrase “or
Warrants” after the words “the relevant Shares” in the same sentence and (z)
deleting the phrase “(provided that no adjustments will be made to account solely
for changes in volatility, expected dividends, stock loan rate or liquidity
relative to the relevant Shares)” and replacing it with the phrase “(and, for the
avoidance of doubt, adjustments may be made to account solely for changes in

14

 

	 	 	 	volatility, expected dividends, stock loan rate or liquidity relative to
the relevant Shares).”

	 	(C)	 	Section 11.2(e)(vii) of the Equity Definitions is hereby amended by deleting
the words “a diluting or concentrative” and replacing them with the word “a
material”; and adding the phrase “or Warrants” at the end of the sentence.

	 	(D)	 	Section 12.6(a)(ii) of the Equity Definitions is hereby amended by (1) deleting
from the fourth line thereof the word “or” after the word “official” and inserting
a comma therefor, and (2) deleting the semi-colon at the end of subsection (B)
thereof and inserting the following words therefor “or (C) at Dealer’s option, the
occurrence of any of the events specified in Section 5(a)(vii) (1) through (9) of
the ISDA Master Agreement with respect to that Issuer.”

	 	(E)	 	Section 12.9(b)(iv) of the Equity Definitions is hereby amended by:

	 	(x)	 	deleting (1) subsection (A) in its entirety, (2) the phrase “or (B)”
following subsection (A) and (3) the phrase “in each case” in subsection
(B); and

	 	(y)	 	deleting the phrase “neither the Non-Hedging Party nor the Lending
Party lends Shares in the amount of the Hedging Shares or” in the
penultimate sentence.

	 	(F)	 	Section 12.9(b)(v) of the Equity Definitions is hereby amended by:

	 	(x)	 	adding the word “or” immediately before subsection “(B)” and deleting
the comma at the end of subsection (A); and

	 	(y)	 	(1) deleting subsection (C) in its entirety, (2) deleting the word “or”
immediately preceding subsection (C) and (3) deleting the penultimate
sentence in its entirety and replacing it with the sentence “The Hedging
Party will determine the Cancellation Amount payable by one party to the
other.”

	 	(ii)	 	Notwithstanding anything to the contrary in this Confirmation, upon the occurrence of
one of the following events, with respect to the Transaction, (1) Dealer shall have the
right to designate such event an Additional Termination Event and designate an Early
Termination Date pursuant to Section 6(b) of the Agreement, (2) Company shall be deemed the
sole Affected Party with respect to such Additional Termination Event and (3) the
Transaction shall be deemed the sole Affected Transaction:

	 	(A)	 	A “person” or “group” within the meaning of Section 13(d) of the Exchange Act,
other than Company, its subsidiaries and its and their employee benefit plans,
files a Schedule TO or any schedule, form or report under the Exchange Act
disclosing that such person or group has become the “beneficial owner,” as defined
in Rule 13d-3 under the Exchange Act, of the common equity of Company representing
more than 50% of the voting power of such common equity.

	 	(B)	 	The consummation of (I) any recapitalization, reclassification or change of the
Shares (other than changes resulting from a subdivision or combination) as a result
of which the Shares would be converted into, or exchanged for, stock, other
securities, other property or assets, (II) any share exchange, consolidation or
merger of Company pursuant to which the Shares will be converted into cash,
securities or other property, other than a merger of Company solely for the purpose
of changing Company’s jurisdiction of incorporation, that results in a

15

 

	 	 	 	reclassification, conversion or exchange of then outstanding Shares solely
into shares of common stock of the surviving entity, or (III) any sale,
lease or other transfer in one transaction or a series of transactions of
all or substantially all of the consolidated assets of Company and its
subsidiaries, taken as a whole, to any person other than one of Company’s
subsidiaries; provided, however, that a transaction described in clause
(II) pursuant to which one or more holders of Company’s common equity
entitled to vote generally in elections of directors immediately prior to
such transaction have the entitlement to exercise, directly or indirectly,
50% or more of the total voting power of all classes of Company’s common
equity entitled to vote generally in elections of directors of the
continuing or surviving person immediately after giving effect to such
transaction shall not constitute an Additional Termination Event pursuant
to this clause (B).

	 	(C)	 	Default by Company or any subsidiary of Company in the payment when due, after
the expiration of any applicable grace period, of principal of, or premium, if any,
or interest on, recourse indebtedness for money borrowed in the aggregate principal
amount then outstanding of $25.0 million or more, or acceleration of Company’s or
any subsidiary of Company’s recourse indebtedness for money borrowed in the
aggregate principal amount of $25.0 million or more so that it becomes due and
payable before the date on which it would otherwise have become due and payable, if
such default is not cured or waived, or such acceleration is not rescinded, as the
case may be.

	 	(D)	 	A final judgment for the payment of $25.0 million or more (excluding any
amounts covered by insurance) rendered against Company or any of its subsidiaries,
which judgment is not discharged or stayed within 60 days after (I) the date on
which the right to appeal thereof has expired if no such appeal has commenced, or
(II) the date on which all rights to appeal have been extinguished.

	 	(E)	 	Dealer, despite using commercially reasonable efforts, is unable or reasonably
determines that it is impractical or illegal, to hedge its exposure with respect to
the Transaction in the public market without registration under the Securities Act
or as a result of any legal, regulatory or self-regulatory requirements or related
policies and procedures (whether or not such requirements, policies or procedures
are imposed by law or have been voluntarily adopted by Dealer).

	 	 	 	Notwithstanding the foregoing, a transaction or transactions described in clauses
(A) or (B) above shall not constitute an Additional Termination Event if at least
90% of the consideration received or to be received by the holders of the Shares,
excluding cash payments for fractional shares and cash payments made in respect of
dissenters’ appraisal rights, in connection with such transaction or transactions
consists of shares of common stock, ordinary shares, American depositary receipts
or American depositary shares that are listed or quoted on any of The New York
Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market (or any
of their respective successors) or will be so listed or quoted when issued or
exchanged in connection with such transaction or transactions

	 	(i)	 	No Collateral or Set-off. Notwithstanding any provision of the Agreement or any other agreement
between the parties to the contrary, the obligations of Company hereunder are not secured by any
collateral. Each party waives any and all rights it may have to set off obligations arising under
the Agreement and the Transaction against other obligations between the parties, whether
arising under any other agreement, applicable law or otherwise.

16

 

	 	(j)	 	Alternative Calculations and Payment on Early Termination and on Certain Extraordinary Events.
If, in respect of the Transaction, an amount is payable by Company to Dealer, (A) pursuant to
Section 12.7 or Section 12.9 of the Equity Definitions or (B) pursuant to Section 6(d)(ii) of the
Agreement (any such amount, a “Payment Obligation”), Company shall have the right, in its sole
discretion, to satisfy the Payment Obligation by the Share Termination Alternative (as defined
below) (except that Company shall not have the right to make such an election in the event of (I) a
Nationalization, Insolvency, Merger Event or Tender Offer in which the consideration to be paid to
holders of Shares consists solely of cash, (II) a Merger Event or Tender Offer that is within
Company’s control, or (III) an Event of Default in which Company is the Defaulting Party or a
Termination Event in which Company is the Affected Party, other than an Event of Default of the
type described in Section 5(a)(iii), (v), (vi), (vii) or (viii) of the Agreement or a Termination
Event of the type described in Section 5(b) of the Agreement, in each case that resulted from an
event or events outside Company’s control) and shall give irrevocable telephonic notice to Dealer,
confirmed in writing within one Scheduled Trading Day, no later than 5:00 p.m.
(New York City time) on the Merger Date, Tender Offer Date, Announcement Date (in the case
of a Nationalization, Insolvency or Delisting), Early Termination Date or date of
cancellation, as applicable; provided that if Company does not validly elect to satisfy the
Payment Obligation by the Share Termination Alternative, Dealer shall have the right to
require Company to satisfy its Payment Obligation by the Share Termination Alternative.

	 	 	 	 	 

	 

	 	Share Termination Alternative:
	 	If applicable, Company shall deliver to Dealer the Share
Termination Delivery Property on the date (the “Share
Termination Payment Date”) on which the Payment
Obligation would otherwise be due pursuant to Section 12.7 or
Section 12.9 of the Equity Definitions or Section 6(d)(ii) of the
Agreement, as applicable, subject to Section 9(k)(i) below, in
satisfaction, subject to Section 9(k)(ii) below, of the relevant
Payment Obligation, in the manner reasonably requested by
Dealer free of payment.
	 
	 	 	 	 
	 

	 	Share Termination Delivery

Property:
	 	A number of Share Termination Delivery Units, as calculated
by the Calculation Agent, equal to the relevant Payment
Obligation divided by the Share Termination Unit Price. The
Calculation Agent shall adjust the amount of Share
Termination Delivery Property by replacing any fractional
portion of a security therein with an amount of cash equal to
the value of such fractional security based on the values used
to calculate the Share Termination Unit Price (without giving
effect to any discount pursuant to Section 9(k)(i)).
	 
	 	 	 	 
	 

	 	Share Termination Unit Price:
	 	The value to Dealer of property contained in one Share
Termination Delivery Unit on the date such Share Termination
Delivery Units are to be delivered as Share Termination
Delivery Property, as determined by the Calculation Agent in
its discretion by commercially reasonable means. In the case
of a Private Placement of Share Termination Delivery Units
that are Restricted Shares (as defined below), as set forth in
Section 9(k)(i) below, the Share Termination Unit Price shall
be determined by the discounted price applicable to such Share
Termination Delivery Units. In the case of a Registration
Settlement of Share Termination Delivery Units that are
Restricted Shares (as defined below) as set forth in Section
9(k)(ii) below, the Share Termination Unit Price shall be the
Settlement Price on the Merger Date, Tender Offer Date,
Announcement Date (in the case of a Nationalization,

17

 

	 	 	 	 	 

	 

	 	 	 	Insolvency or Delisting), Early Termination Date or date of
cancellation, as applicable. The Calculation Agent shall notify
Company of the Share Termination Unit Price at the time of
notification of such Payment Obligation to Company or, if
applicable, at the time the discounted price applicable to the
relevant Share Termination Units is determined pursuant to
Section 9(k)(i).
	 
	 	 	 	 
	 

	 	Share Termination Delivery Unit:
	 	In the case of a Termination Event, Event of Default
Additional Disruption Event or Delisting, one Share or, in the
case of Nationalization, Insolvency, Tender Offer or Merger
Event, a unit consisting of the number or amount of each type
of property received by a holder of one Share (without
consideration of any requirement to pay cash or other
consideration in lieu of fractional amounts of any securities) in
such Nationalization, Insolvency, Tender Offer or Merger
Event. If such Nationalization, Insolvency, Tender Offer or
Merger Event involves a choice of consideration to be received
by holders, such holder shall be deemed to have elected to
receive the maximum possible amount of cash.
	 
	 	 	 	 
	 

	 	Failure to Deliver:
	 	Inapplicable
	 
	 	 	 	 
	 

	 	Other applicable provisions:
	 	If Share Alternative Termination is applicable, the provisions
of Sections 9.1(c), 9.8, 9.9, 9.11 (as modified below), 9.12 and
10.5 of the Equity Definitions will be applicable as if Physical
Settlement were applicable.

	 	(k)	 	Registration/Private Placement Procedures. If, in the reasonable judgment of Dealer based on
the advice of counsel, following any delivery of Shares or Share Termination Delivery Property to
Dealer hereunder, such Shares or Share Termination Delivery Property would be in the hands of
Dealer subject to any applicable restrictions with respect to any registration or qualification
requirement or prospectus delivery requirement for such Shares or Share Termination Delivery
Property pursuant to any applicable federal or state securities law (including, without limitation,
any such requirement arising under Section 5 of the Securities Act as a result of such Shares or
Share Termination Delivery Property being “restricted securities”, as such term is defined in Rule
144 under the Securities Act, or as a result of the sale of such Shares or Share Termination
Delivery Property being subject to paragraph (c) of Rule 145 under the Securities Act) (such Shares
or Share Termination Delivery Property, “Restricted Shares”), then delivery of such Restricted
Shares shall be effected pursuant to either clause (i) or (ii) below at the election of Company,
unless Dealer waives the need for registration/private placement procedures set forth in (i) and
(ii) below. Notwithstanding the foregoing, solely in respect of any Daily Number of Warrants
exercised or deemed exercised on any Expiration Date, Company shall elect, prior to the first
Settlement Date for the First Expiration Date, a Private Placement Settlement or Registration
Settlement for all deliveries of Restricted Shares for all such Expiration Dates which election
shall be applicable to all Settlement Dates for such Warrants and the procedures in clause (i) or
clause (ii) below shall apply for all such delivered Restricted Shares on an aggregate basis
commencing after the final Settlement Date for such Warrants. The Calculation Agent shall make
reasonable adjustments to settlement terms and provisions under this Confirmation to reflect a
single Private Placement or Registration Settlement for such aggregate Restricted Shares delivered
hereunder.

	 	(i)	 	If Company elects to settle the Transaction pursuant to this clause (i) (a “Private
Placement Settlement”), then delivery of Restricted Shares by Company shall be effected in
accordance with customary private placement procedures for placements of equity securities
of substantially similar size reasonably acceptable to Dealer; provided that Company may
not elect a Private Placement Settlement if, on the date of its election,

18

 

	 	 	 	it has taken, or caused to be taken, any action that would make unavailable
either the exemption pursuant to Section 4(2) of the Securities Act for the sale by
Company to Dealer (or any affiliate designated by Dealer) of the Restricted Shares
or the exemption pursuant to Section 4(1) or Section 4(3) of the Securities Act for
resales of the Restricted Shares by Dealer (or any such affiliate of Dealer). The
Private Placement Settlement of such Restricted Shares shall include customary
representations, covenants, blue sky and other governmental filings and/or
registrations, indemnities to Dealer, due diligence rights (for Dealer or any
designated buyer of the Restricted Shares by Dealer), opinions and certificates,
and such other documentation as is customary for private placements of equity
securities of substantially similar size, all reasonably acceptable to Dealer. In
the case of a Private Placement Settlement, Dealer shall determine the appropriate
discount to the Share Termination Unit Price (in the case of settlement of Share
Termination Delivery Units pursuant to Section 9(j) above) or any Settlement Price
(in the case of settlement of Shares pursuant to Section 2 above) applicable to
such Restricted Shares in a commercially reasonable manner and appropriately adjust
the number of such Restricted Shares to be delivered to Dealer hereunder.
Notwithstanding the Agreement or this Confirmation, the date of delivery of such
Restricted Shares shall be the Exchange Business Day following notice by Dealer to
Company, of such applicable discount and the number of Restricted Shares to be
delivered pursuant to this clause (i). For the avoidance of doubt, delivery of
Restricted Shares shall be due as set forth in the previous sentence and not be due
on the Share Termination Payment Date (in the case of settlement of Share
Termination Delivery Units pursuant to Section 9(j) above) or on the Settlement
Date for such Restricted Shares (in the case of settlement in Shares pursuant to
Section 2 above).
	 
	 	(ii)	 	If Company elects to settle the Transaction pursuant to this clause (ii) (a
“Registration Settlement”), then Company shall promptly (but in any event no later than the
beginning of the Resale Period) file and use its reasonable best efforts to make effective
under the Securities Act a registration statement or supplement or amend an outstanding
registration statement in form and substance reasonably satisfactory to Dealer, to cover
the resale of such Restricted Shares in accordance with customary resale registration
procedures, including covenants, conditions, representations, underwriting discounts (if
applicable), commissions (if applicable), indemnities due diligence rights, opinions and
certificates, and such other documentation as is customary in underwriting agreements for
equity resales of substantially similar size, all reasonably acceptable to Dealer. If
Dealer, in its reasonable discretion, is not satisfied with such procedures and
documentation Private Placement Settlement shall apply. If Dealer is satisfied with such
procedures and documentation, it shall sell the Restricted Shares pursuant to such
registration statement during a period (the “Resale Period”) commencing on the Exchange
Business Day following delivery of such Restricted Shares (which, for the avoidance of
doubt, shall be (x) the Share Termination Payment Date in case of settlement in Share
Termination Delivery Units pursuant to Section 9(j) above or (y) the Settlement Date in
respect of the final Expiration Date for all Daily Number of Warrants) and ending on the
earliest of (i) the Exchange Business Day on which Dealer completes the sale of all
Restricted Shares or, in the case of settlement of Share Termination Delivery Units, a
sufficient number of Restricted Shares so that the realized net proceeds of such sales
equals or exceeds the Payment Obligation (as defined above), (ii) the date upon which all
Restricted Shares have been sold or transferred pursuant to Rule 144 (or similar provisions
then in force) or Rule 145(d)(2) (or any similar provision then in force) under the
Securities Act and (iii) the date upon which all Restricted Shares may be sold or
transferred by a non-affiliate pursuant to Rule 144 (or any similar provision then in
force) or Rule 145(d)(2) (or any similar provision then in force) under the Securities Act.
If the Payment Obligation exceeds the realized net proceeds from such resale, Company
shall transfer to Dealer by the open of the regular trading session on the Exchange on the
Exchange Trading Day immediately following the last day of the Resale Period the amount of
such excess (the “Additional Amount”) in cash or in a number of Shares (“Make-whole
Shares”) in an

19

 

	 	 	 	amount that, based on the Settlement Price on the last day of the Resale Period (as
if such day was the “Valuation Date” for purposes of computing such Settlement
Price), has a dollar value equal to the Additional Amount. The Resale Period shall
continue to enable the sale of the Make-whole Shares. If Company elects to pay the
Additional Amount in Shares, the requirements and provisions for Registration
Settlement shall apply. This provision shall be applied successively until the
Additional Amount is equal to zero. In no event shall Company deliver a number of
Restricted Shares greater than the Maximum Number of Shares.
	 
	 	(iii)	 	Without limiting the generality of the foregoing, Company agrees that any Restricted
Shares delivered to Dealer, as purchaser of such Restricted Shares, (A) may be transferred
by and among Dealer and its affiliates and Company shall effect such transfer without any
further action by Dealer and (B) after the period of 6 months from the Trade Date (or 1
year from the Trade Date if, at such time, informational requirements of Rule 144(c) under
the Securities Act are not satisfied with respect to Company) has elapsed after any
Settlement Date or Share Termination Payment Date, as applicable, for such Restricted
Shares, Company shall promptly remove, or cause the transfer agent for such Restricted
Shares to remove, any legends referring to any such restrictions or requirements from such
Restricted Shares upon request by Dealer (or such affiliate of Dealer) to Company or such
transfer agent, without any requirement for the delivery of any certificate, consent,
agreement, opinion of counsel, notice or any other document, any transfer tax stamps or
payment of any other amount or any other action by Dealer (or such affiliate of Dealer).
	 
	 	(iv)	 	If the Private Placement Settlement or the Registration Settlement shall not be
effected as set forth in clauses (i) or (ii), as applicable, then failure to effect such
Private Placement Settlement or such Registration Settlement shall constitute an Event of
Default with respect to which Company shall be the Defaulting Party.

	 	(l)	 	Limit on Beneficial Ownership. Notwithstanding any other provisions hereof, Dealer may not
exercise any Warrant hereunder or be entitled to take delivery of any Shares deliverable hereunder,
and Automatic Exercise shall not apply with respect to any Warrant hereunder, to the extent (but
only to the extent) that, after such receipt of any Shares upon the exercise of such Warrant or
otherwise hereunder, (i) the Section 16 Percentage would exceed 7.5%, or (ii) the Share Amount
would exceed the Applicable Share Limit. Any purported delivery hereunder shall be void and have no
effect to the extent (but only to the extent) that, after such delivery, (i) the Section 16
Percentage would exceed 7.5%, or (ii) the Share Amount would exceed the Applicable Share Limit. If
any delivery owed to Dealer hereunder is not made, in whole or in part, as a result of this
provision, Company’s obligation to make such delivery shall not be extinguished and Company shall
make such delivery as promptly as practicable after, but in no event later than one Business Day
after, Dealer gives notice to Company that, after such delivery, (i) the Section 16 Percentage
would not exceed 7.5%, and (ii) the Share Amount would not exceed the Applicable Share Limit.
	 
	 	(m)	 	Share Deliveries. Company acknowledges and agrees that, to the extent the holder of this
Warrant is not then an affiliate and has not been an affiliate for 90 days (it being understood
that Dealer will not be considered an affiliate under this paragraph solely by reason of its
receipt of Shares pursuant to the Transaction), and otherwise satisfies all holding period and
other requirements of Rule 144 of the Securities Act applicable to it, any delivery of Shares or
Share Termination Delivery Property hereunder at any time after 6 months from the Trade Date (or 1
year from the Trade Date if, at such time, informational requirements of Rule 144(c) are not
satisfied with respect to Company) shall be eligible for resale under Rule 144 of the Securities
Act and Company agrees to promptly remove, or cause the transfer agent for such Shares or Share
Termination Delivery Property, to remove, any legends referring to any restrictions on resale under
the Securities Act from the Shares or Share Termination Delivery Property. Company further agrees
that any delivery of Shares or Share Termination Delivery Property prior to the date

20

 

	 	 	 	that is 6 months from the Trade Date (or 1 year from the Trade Date if, at such time,
informational requirements of Rule 144(c) are not satisfied with respect to Company), may
be transferred by and among Dealer and its affiliates and Company shall effect such
transfer without any further action by Dealer. Notwithstanding anything to the contrary
herein, Company agrees that any delivery of Shares or Share Termination Delivery Property
shall be effected by book-entry transfer through the facilities of DTC, or any successor
depositary, if at the time of delivery, such class of Shares or class of Share Termination
Delivery Property is in book-entry form at DTC or such successor depositary.
Notwithstanding anything to the contrary herein, to the extent the provisions of Rule 144
of the Securities Act or any successor rule are amended, or the applicable interpretation
thereof by the Securities and Exchange Commission or any court change after the Trade Date,
the agreements of Company herein shall be deemed modified to the extent necessary, in the
opinion of outside counsel of Company, to comply with Rule 144 of the Securities Act, as in
effect at the time of delivery of the relevant Shares or Share Termination Delivery
Property.
	 
	 	(n)	 	Waiver of Jury Trial. Each party waives, to the fullest extent permitted by applicable law, any
right it may have to a trial by jury in respect of any suit, action or proceeding relating to the
Transaction. Each party (i) certifies that no representative, agent or attorney of the other party
has represented, expressly or otherwise, that such other party would not, in the event of such a
suit, action or proceeding, seek to enforce the foregoing waiver and (ii) acknowledges that it and
the other party have been induced to enter into the Transaction, as applicable, by, among other
things, the mutual waivers and certifications provided herein.
	 
	 	(o)	 	Tax Disclosure. Effective from the date of commencement of discussions concerning the
Transaction, Company and each of its employees, representatives, or other agents may
disclose to any and all persons, without limitation of any kind, the tax treatment and tax
structure of the Transaction and all materials of any kind (including opinions or other tax
analyses) that are provided to Company relating to such tax treatment and tax structure.
	 
	 	(p)	 	Maximum Share Delivery.

	 	(i)	 	Notwithstanding any other provision of this Confirmation, the Agreement or the Equity
Definitions, in no event will Company at any time be required to deliver a number of Shares greater
than two times the Number of Shares (the “Maximum Number of Shares”) to Dealer in connection with
the Transaction.
	 
	 	(ii)	 	In the event Company shall not have delivered to Dealer the full number of Shares or
Restricted Shares otherwise deliverable by Company to Dealer pursuant to the terms of the
Transaction because Company has insufficient authorized but unissued Shares (such deficit, the
“Deficit Shares”), Company shall be continually obligated to deliver, from time to time, Shares or
Restricted Shares, as the case may be, to Dealer until the full number of Deficit Shares have been
delivered pursuant to this Section 9(p)(ii), when, and to the extent that, (A) Shares are
repurchased, acquired or otherwise received by Company or any of its subsidiaries after the Trade
Date (whether or not in exchange for cash, fair value or any other consideration), (B) authorized
and unissued Shares reserved for issuance in respect of other transactions prior to such date that
prior to the relevant date become no longer so reserved or (C) Company additionally authorizes any
unissued Shares that are not reserved for other transactions; provided that in no event shall
Company deliver any Shares or Restricted Shares to Dealer pursuant to this Section 9(p)(ii) to the
extent that such delivery would cause the aggregate number of Shares and Restricted Shares
delivered to Dealer to exceed the Maximum Number of Shares. Company shall immediately notify Dealer
of the occurrence of any of the foregoing events (including the number of Shares subject to clause
(A), (B) or (C) and the corresponding number of Shares or Restricted Shares, as the case may be, to
be delivered) and promptly deliver such Shares or Restricted Shares, as the case may be,
thereafter.

21

 

	 	(q)	 	Right to Extend. Dealer may postpone, in whole or in part, any Expiration Date or any other
date of valuation or delivery with respect to some or all of the relevant Warrants (in which event
the Calculation Agent shall make appropriate adjustments to the Daily Number of Warrants with
respect to one or more Expiration Dates) if Dealer determines, in its commercially reasonable
judgment based on the advice of counsel, that such extension is reasonably necessary or advisable
to preserve Dealer’s hedging or hedge unwind activity hereunder in light of existing liquidity
conditions or to enable Dealer to effect purchases of Shares in connection with its hedging, hedge
unwind or settlement activity hereunder in a manner that would, if Dealer were Issuer or an
affiliated purchaser of Issuer, be in compliance with applicable legal, regulatory or
self-regulatory requirements, or with related policies and procedures applicable to Dealer.
	 
	 	(r)	 	Status of Claims in Bankruptcy. Dealer acknowledges and agrees that this Confirmation is not
intended to convey to Dealer rights against Company with respect to the Transaction that are senior
to the claims of common stockholders of Company in any United States bankruptcy proceedings of
Company; provided that nothing herein shall limit or shall be deemed to limit Dealer’s right to
pursue remedies in the event of a breach by Company of its obligations and agreements with respect
to the Transaction; provided, further, that nothing herein shall limit or shall be deemed to limit
Dealer’s rights in respect of any transactions other than the Transaction.
	 
	 	(s)	 	Securities Contract; Swap Agreement. The parties hereto intend for (i) the Transaction to be a
“securities contract” and a “swap agreement” as defined in the Bankruptcy Code (Title 11 of
the United States Code) (the “Bankruptcy Code”), and the parties hereto to be entitled to
the protections afforded by, among other Sections, Sections 362(b)(6), 362(b)(17), 546(e),
546(g), 555 and 560 of the Bankruptcy Code, (ii) a party’s right to liquidate the
Transaction and to exercise any other remedies upon the occurrence of any Event of Default
under the Agreement with respect to the other party to constitute a “contractual right” as
described in the Bankruptcy Code, and (iii) each payment and delivery of cash, securities
or other property hereunder to constitute a “margin payment” or “settlement payment” and a
“transfer” as defined in the Bankruptcy Code.
	 
	 	(t)	 	Wall Street Transparency and Accountability Act. In connection with Section 739 of the Wall
Street Transparency and Accountability Act of 2010 (“WSTAA”), the parties hereby agree that neither
the enactment of WSTAA or any regulation under the WSTAA, nor any requirement under WSTAA or an
amendment made by WSTAA, shall limit or otherwise impair either party’s otherwise applicable rights
to terminate, renegotiate, modify, amend or supplement this Confirmation or the Agreement, as
applicable, arising from a termination event, force majeure, illegality, increased costs,
regulatory change or similar event under this Confirmation, the Equity Definitions incorporated
herein, or the Agreement (including, but not limited to, rights arising from Change in Law, Hedging
Disruption, Increased Cost of Hedging, an Excess Ownership Position, or Illegality (as defined in
the Agreement)).
	 
	 	(u)	 	Early Unwind. In the event the sale of the “Underwritten Securities” (as defined in the
Purchase Agreement) is not consummated with the Representatives for any reason, or Company fails to
deliver to Dealer opinions of counsel as required pursuant to Section 9(a), in each case by 5:00
p.m. (New York City time) on the Premium Payment Date, or such later date as agreed upon by the
parties (the Premium Payment Date or such later date the “Early Unwind Date”), the Transaction
shall automatically terminate (the “Early Unwind”), on the Early Unwind Date and (i) the
Transaction and all of the respective rights and obligations of Dealer and Company under the
Transaction shall be cancelled and terminated and (ii) each party shall be released and discharged
by the other party from and agrees not to make any claim against the other party with respect to
any obligations or liabilities of the other party arising out of and to be performed in connection
with the Transaction either prior to or after the Early Unwind Date; provided that, other than in
cases involving a breach of the Purchase Agreement by Dealer, Company shall purchase from Dealer on
the Early Unwind Date all Shares purchased by Dealer or one or more of its affiliates in connection
with the Transaction at the then prevailing market price. Each of Dealer and Company represents and
acknowledges to the other that, subject to the proviso included in this

22

 

	 	 	 	Section 9(u), upon an Early Unwind, all obligations with respect to the Transaction shall
be deemed fully and finally discharged.
	 
	 	(v)	 	Payment by Dealer. In the event that (i) an Early Termination Date occurs or is designated with
respect to the Transaction as a result of a Termination Event or an Event of Default (other than an
Event of Default arising under Section 5(a)(ii) or 5(a)(iv) of the Agreement) and, as a result,
Dealer owes to Company an amount calculated under Section 6(e) of the Agreement, or (ii) Dealer
owes to Company, pursuant to Section 12.7 or Section 12.9 of the Equity Definitions, an amount
calculated under Section 12.8 of the Equity Definitions, such amount shall be deemed to be zero.

[Remainder of Page Intentionally Blank]

23

 

     Please confirm that the foregoing correctly sets forth the terms of our agreement by
executing this Confirmation and returning it to RBC Capital Markets, LLC, Attn: Structured
Derivatives Documentation, Three World Financial Center, 200 Vesey Street, New York, NY 10281-1021,
or by fax to (212) 428-3053, or by email to SDD@rbccm.com.

	 	 	 	 	 
	 	Very truly yours,

RBC Capital Markets, LLC, as agent for Royal

Bank of Canada

 	 
	 	By:  	/s/
Brian ward
 	 
	 	Authorized Signatory 	 
	 	Name: Brian ward 	 

Accepted and confirmed

as of the Trade Date:

Integra LifeSciences Holdings Corporation

	 	 	 	 	 
	By:  	/s/
Stuart M. Essig, CEO	 	 
	Authorized Signatory 	 	 
	Name: Stuart M. Essig, CEO	 	 

[RBC Warrant Confirmation]

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