Document:

Exhibit 4.22

 

EXECUTION COPY

 

U.S. $635,000,000

 

 

FACILITY AGREEMENT

 

dated  October 29, 2002

 

for

 

CENTERPULSE ORTHOPEDICS INC.

 

arranged by

 

UBS WARBURG LTD.

 

as Arranger

 

with

 

UBS AG, STAMFORD BRANCH

 

acting as

 

Facility Agent

 

and

 

UBS AG, STAMFORD BRANCH

 

acting as

 

Security Agent

 

 

CONTENTS

 

	
  CLAUSE

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  
	
  SECTION 1

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  INTERPRETATION

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  1.  Definitions and Interpretation

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  SECTION 2

  	
   

  	
  24

  
	
   

  	
   

  	
   

  
	
  THE
  FACILITIES

  	
   

  	
  24

  
	
   

  	
   

  	
   

  
	
  2.  The Facilities

  	
   

  	
  24

  
	
   

  	
   

  	
   

  
	
  3.  Purpose

  	
   

  	
  24

  
	
   

  	
   

  	
   

  
	
  4.  Conditions of Utilisation

  	
   

  	
  25

  
	
   

  	
   

  	
   

  
	
  SECTION 3

  	
   

  	
  26

  
	
   

  	
   

  	
   

  
	
  UTILISATION

  	
   

  	
  26

  
	
   

  	
   

  	
   

  
	
  5.  Utilisation

  	
   

  	
  26

  
	
   

  	
   

  	
   

  
	
  SECTION 4

  	
   

  	
  28

  
	
   

  	
   

  	
   

  
	
  REPAYMENT, PREPAYMENT AND
  CANCELLATION

  	
   

  	
  28

  
	
   

  	
   

  	
   

  
	
  6.  Repayment

  	
   

  	
  28

  
	
   

  	
   

  	
   

  
	
  7.  Prepayment and Cancellation

  	
   

  	
  28

  
	
   

  	
   

  	
   

  
	
  SECTION 5

  	
   

  	
  34

  
	
   

  	
   

  	
   

  
	
  COSTS
  OF UTILISATION

  	
   

  	
  34

  
	
   

  	
   

  	
   

  
	
  8.  Interest

  	
   

  	
  34

  
	
   

  	
   

  	
   

  
	
  9.  Interest Periods

  	
   

  	
  35

  
	
   

  	
   

  	
   

  
	
  10.  Changes to the calculation of interest

  	
   

  	
  36

  
	
   

  	
   

  	
   

  
	
  11.  Fees

  	
   

  	
  37

  
	
   

  	
   

  	
   

  
	
  SECTION 6

  	
   

  	
  38

  
	
   

  	
   

  	
   

  
	
  ADDITIONAL PAYMENT
  OBLIGATIONS

  	
   

  	
  38

  
	
   

  	
   

  	
   

  
	
  12.  Tax gross up and indemnities

  	
   

  	
  38

  
	
   

  	
   

  	
   

  
	
  13.  Increased costs

  	
   

  	
  41

  
	
   

  	
   

  	
   

  
	
  14.  Other indemnities

  	
   

  	
  42

  
	
   

  	
   

  	
   

  
	
  15.  Mitigation by the Lenders

  	
   

  	
  44

  
	
   

  	
   

  	
   

  
	
  16.  Costs and expenses

  	
   

  	
  44

  
	
   

  	
   

  	
   

  
	
  SECTION 7

  	
   

  	
  46

  
	
   

  	
   

  	
   

  
	
  GUARANTEE

  	
   

  	
  46

  
	
   

  	
   

  	
   

  
	
  17.  Guarantee and indemnity

  	
   

  	
  46

  
	
   

  	
   

  	
   

  
					

 

 

	
  SECTION 8

  	
  51

  
	
   

  	
   

  
	
  REPRESENTATIONS, UNDERTAKINGS
  AND EVENTS OF DEFAULT

  	
  51

  
	
   

  	
   

  
	
  18.  Representations

  	
  51

  
	
   

  	
   

  
	
  19.  Information undertakings

  	
  58

  
	
   

  	
   

  
	
  20.  Financial covenants

  	
  62

  
	
   

  	
   

  
	
  21.  General undertakings

  	
  68

  
	
   

  	
   

  
	
  22.  Events of Default

  	
  80

  
	
   

  	
   

  
	
  SECTION 9

  	
  85

  
	
   

  	
   

  
	
  CHANGES
  TO PARTIES

  	
  85

  
	
   

  	
   

  
	
  23.  Changes to the Lenders

  	
  85

  
	
   

  	
   

  
	
  24.  Changes to the Obligors

  	
  88

  
	
   

  	
   

  
	
  SECTION 10

  	
  89

  
	
   

  	
   

  
	
  THE
  FINANCE PARTIES

  	
  89

  
	
   

  	
   

  
	
  25.  Role of the Agents and the Arranger

  	
  89

  
	
   

  	
   

  
	
  26.  Conduct of business by the Finance Parties

  	
  94

  
	
   

  	
   

  
	
  27.  Sharing among the Finance Parties

  	
  95

  
	
   

  	
   

  
	
  SECTION 11

  	
  97

  
	
   

  	
   

  
	
  ADMINISTRATION

  	
  97

  
	
   

  	
   

  
	
  28.  Payment mechanics

  	
  97

  
	
   

  	
   

  
	
  29.  Set-off

  	
  99

  
	
   

  	
   

  
	
  30.  Notices

  	
  99

  
	
   

  	
   

  
	
  31.  Calculations and certificates

  	
  101

  
	
   

  	
   

  
	
  32.  Partial invalidity

  	
  101

  
	
   

  	
   

  
	
  33.  Remedies and waivers

  	
  101

  
	
   

  	
   

  
	
  34.  Amendments and waivers

  	
  102

  
	
   

  	
   

  
	
  35.  Replacement of a lender

  	
  102

  
	
   

  	
   

  
	
  36.  Counterparts

  	
  104

  
	
   

  	
   

  
	
  SECTION 12

  	
  105

  
	
   

  	
   

  
	
  GOVERNING LAW AND
  ENFORCEMENT

  	
  105

  
	
   

  	
   

  
	
  37.  Governing law

  	
  105

  
	
   

  	
   

  
	
  38.  Enforcement

  	
  105

  
	
   

  	
   

  
	
  SCHEDULE 1 THE ORIGINAL
  PARTIES

  	
  106

  
	
   

  	
   

  
	
  SCHEDULE 2  CONDITIONS PRECEDENT

  	
  109

  
	
   

  	
   

  
	
  SCHEDULE
  3  REQUESTS

  	
  122

  
	
   

  	
   

  
	
  SCHEDULE 4  MANDATORY COST FORMULA

  	
  125

  
	
   

  	
   

  
	
  SCHEDULE 5  FORM OF TRANSFER CERTIFICATES

  	
  128

  
	
   

  	
   

  
	
  SCHEDULE 6  FORM OF ACCESSION LETTER

  	
  134

  
	
   

  	
   

  
	
  SCHEDULE 7  FORM OF RESIGNATION LETTER

  	
  135

  

 

 

	
  SCHEDULE 8  FORM OF COMPLIANCE CERTIFICATE OF COMPANY

  	
  136

  
	
   

  	
   

  
	
  SCHEDULE 9  EXISTING SECURITY

  	
  138

  
	
   

  	
   

  
	
  SCHEDULE 10  LMA FORM OF CONFIDENTIALITY UNDERTAKING

  	
  142

  
	
   

  	
   

  
	
  SCHEDULE 11  TIMETABLES

  	
  147

  
	
   

  	
   

  
	
  SCHEDULE 12  ENVIRONMENTAL WARRANTIES

  	
  148

  
	
   

  	
   

  
	
  SCHEDULE 13  OWNERSHIP OF PROPERTIES

  	
  149

  
	
   

  	
   

  
	
  SCHEDULE 14  MATERIAL SUBSIDIARIES

  	
  152

  
	
   

  	
   

  
	
  SCHEDULE 15  EXISTING FINANCIAL INDEBTEDNESS

  	
  153

  
	
   

  	
   

  
	
  SCHEDULE 16  CAPITAL STRUCTURE

  	
  160

  
	
   

  	
   

  
	
  SCHEDULE 17  EXISTING INVESTMENTS

  	
  162

  
	
   

  	
   

  
	
  SCHEDULE 18  MORTGAGED PROPERTY

  	
  163

  

 

 

THIS AGREEMENT is dated October 29, 2002 and made between:

 

(1)                            CENTERPULSE
LTD, a company incorporated in Switzerland (the “Company”);

 

(2)                            CENTERPULSE
ORTHOPEDICS INC., a company incorporated in the
State of Delaware (the “Borrower”);

 

(3)                            THE
SUBSIDIARIES of the Company listed in Part I of
Schedule 1 (The
Original Parties) as original guarantors (together with the Company
the “Original
Guarantors”);

 

(4)                            UBS
WARBURG LTD. (the “Arranger”);

 

(5)                            THE
FINANCIAL INSTITUTIONS listed in Part II and Part
III of Schedule 1 (The Original Parties) as lenders (the “Original
Lenders”);

 

(6)                            UBS
AG, STAMFORD BRANCH in its capacity as the Facility
Agent (the “Facility Agent”); and

 

(7)                            UBS
AG, STAMFORD BRANCH in its capacity as the Security
Agent (the “Security Agent”).

 

 

IT IS AGREED as follows:

 

SECTION 1

INTERPRETATION

 

1.                                DEFINITIONS AND INTERPRETATION

 

1.1                          Definitions

In this
Agreement:

 

“Accession
Letter” means a document substantially in the form set out in
Schedule 6 (Form
of Accession Letter).

 

“Additional
Cost Rate” has the meaning given to it in Schedule 4 (Mandatory
Cost Formula).

 

“Additional
Guarantor” means a company which becomes an Additional Guarantor in
accordance with Clause 24 (Changes to the Obligors).

 

“Affiliate”
of any person means any other person which, directly or indirectly, controls,
is controlled by or is under common control with such person (excluding any
trustee under, or any committee with responsibility for administering, any
Plan).  A person shall be deemed to be
“controlled by” any other person if such other person possesses, directly or
indirectly, power:

 

(a)                                       to vote 10% or more if used in reference to any person in the Group
or more than 50% if in reference to any other person of the securities (on a
fully

 

1

 

diluted basis) having ordinary voting power
for the election of directors or managing general partners; or

 

(b)                                      to direct or cause the direction of the management and policies of
such person whether by contract or otherwise.

 

“Agents”
means the Facility Agent and the Security Agent and “Agent” means either of
them.

 

“ALTA”
means the American Land Title Association.

 

“Authorisation”
means an authorisation, consent, approval, resolution, licence, exemption,
filing, notarisation or registration.

 

“Availability
Period” means the period from October 28, 2002 to November 4, 2002
or such earlier date on which the Facilities have been cancelled in full.

 

“Borrower
Business Day” means a day (other than a Saturday or Sunday) on which
banks are open for general business in Zurich, London and New York City.

 

“Break Costs”
means the amount (if any) by which:

 

(a)                                       the interest which a Lender should have received for the period from
the date of receipt of all or any part of its participation in a Loan or Unpaid
Sum to the last day of the current Interest Period in respect of that Loan or
Unpaid Sum, had the principal amount or Unpaid Sum received been paid on the
last day of that Interest Period;

 

exceeds:

 

(b)                                      the amount which that Lender would be able to obtain by placing an
amount equal to the principal amount or Unpaid Sum received by it on deposit
with a leading bank in the Relevant Interbank Market for a period starting on
the Business Day following receipt or recovery and ending on the last day of
the current Interest Period.

 

“Business Day”
means a day (other than a Saturday or Sunday) on which banks are open for
general business in London and New York City and, if a payment is due in euro,
which is a TARGET Day.

 

“Capital
Lease Obligations” means all monetary or financial obligations of
the Company and its Subsidiaries under any leasing or similar arrangement
conveying the right to use real or personal property, or a combination thereof,
which, in accordance with IAS, would or should be classified and accounted for
as capital leases, and the amount of such obligations shall be the capitalized
amount thereof determined in accordance with IAS and the stated maturity
thereof shall be the date of the last payment of rent or any other amount due
under such lease prior to the first date on which such lease may be terminated
by the lessee without payment of a penalty.

 

2

 

“Cash
Collateral Account” means a bank account opened by the Facility
Agent in the name of an Obligor designated by the Facility Agent which is
secured in favour of the Finance Parties by a Security Document and in the case
of a Cash Collateral Account located in the United States of America, maintained
in accordance with the U.S. Security Agreement.

 

“CCI”
means the US$300,000,000 convertible callable instrument referred to in the
Settlement.

 

“CERCLA”
means the Comprehensive Environmental Response, Compensation and Liability Act
of 1980, as amended.

 

“CERCLIS”
means the Comprehensive Environmental Response, Compensation and Liability
Information System List.

 

“Change of
Control” means (a) the acquisition of ownership, directly or
indirectly (including, without limitation, through the issuance, sale or
exchange of Equity Interests, a merger or consolidation or otherwise),
beneficially or of record, by any person or group (within the meaning of the
Exchange Act and the rules of the SEC thereunder as in effect on the Effective
Date) of Equity Interests representing more than 35% of either the aggregate
ordinary voting power or the aggregate equity value represented by the issued
and outstanding Equity Interests in the Company; (b) occupation of a majority
of the seats (other than vacant seats) on the board of directors of the Company
by persons who were neither (i) nominated by the board of directors of the
Company or (ii) appointed by directors so nominated.

 

“Code”
means the U.S. Internal Revenue Code of 1986 and the regulations promulgated
thereunder.

 

“Commitment
Letter” means a commitment letter dated September 13, 2002, between
UBS Warburg Ltd., UBS AG, the Company and the Borrower.

 

“Commitments” means the Tranche A Dollar
Commitments, the Tranche A Euro Commitments, the Tranche B Dollar Commitments
or the Tranche B Euro Commitments and where the context so admits or requires,
includes each of them.

 

“Compliance
Certificate” means a certificate substantially in the form set out
in Schedule 8 (Form of Compliance Certificate).

 

“Confidentiality
Undertaking” means a confidentiality undertaking substantially in a
recommended form of the LMA as set out in Schedule 10 (LMA Form of Confidentiality Undertaking)
or in any other form agreed between the Company and the Facility Agent.

 

“Current
Material Litigation” means the litigation proceedings described in
the letter from the Company delivered to the Facility Agent prior to the date
of this Agreement.

 

“Default”
means an Event of Default or any event or circumstance specified in Clause 22 (Events of
Default) which would (with the expiry of a grace period, the

 

3

 

giving of
notice, the making of any determination or any combination of any of the
foregoing) be an Event of Default.

 

“Disposal”
means a sale, transfer or other disposal (including by way of lease or loan) by
a person of all or part of its assets, whether by one transaction or a series
of transactions and whether at the same time or over a period of time.

 

“Disposal
Proceeds” means, in respect of a Disposal by the Company or a
Subsidiary, the gross proceeds received by the Company or a Subsidiary after
the date of this Agreement for that Disposal less all Taxes, costs and expenses
directly incurred in respect of that Disposal (to the extent such Taxes result
in a cash payment in the year of such Disposal).

 

“Dollar
Facilities” means the Tranche A Dollar Facility and the Tranche B
Dollar Facility.

 

“Environment”
means ambient air, surface water and groundwater (including potable water,
navigable water and wetlands), the land surface or subsurface strata, natural
resources such as flora and fauna.

 

“Environmental
Claim” means any written accusation, allegation, notice of
violation, claim, demand, order, directive, cost recovery action or other cause
of action by, or on behalf of, any Governmental Authority or any other person
for damages, injunctive or equitable relief, personal injury (including
sickness, disease or death), Remedial Action costs, property damage, natural
resource damages, or for fines, penalties or restrictions, resulting from or
based upon: (a) the existence, or the continuation of the existence, of a
Release (including sudden or non-sudden, accidental or non-accidental
Releases); (b) exposure to any Hazardous Material; (c) the presence,
use, handling, transportation, storage, treatment or disposal of any Hazardous
Material; or (d) the violation or alleged violation of any Environmental
Law or Environmental Permit.

 

“Environmental
Laws”  means any and all applicable treaties, laws (including common
law), rules, regulations, codes, ordinances, orders, decrees, judgements,
injunctions or binding agreements issued, promulgated or entered into by any
Governmental Authority, relating in any way to the Environment, preservation or
reclamation of natural resources, the management, Release or threatened Release
of, or exposure to, any Hazardous Material.

 

“Environmental
Liability” means any liability, (including, but not limited to, any
liability for damages, natural resource damage, costs of environmental
remediation, administrative oversight costs, fines, penalties or indemnities),
of any member of the Group directly or indirectly resulting from or based upon
(a) the existence, or the continuation of the existence, of a Release
(including sudden or non-sudden, accidental or non-accidental Releases); (b)
exposure to any Hazardous Material; (c) the presence, use, handling,
transportation, storage, treatment or disposal of any Hazardous Material; or
(d) the violation or alleged violation of any Environmental Law or
Environmental Permit.

 

4

 

“Environmental
Permit” means any permit, approval, authorization, certificate,
license, variance, filing, permission or variance required by or from any
Governmental Authority pursuant to any Environmental Law.

 

“Equity
Interests” means shares of capital stock, partnership interests,
membership interests in a limited liability company, beneficial interests in a
trust or other equity ownership interests in a person.

 

“Equity
Rights” means all securities convertible or exchangeable for Equity
Interests and all warrants, options or other rights to purchase or subscribe
for any Equity Interests, whether or not presently convertible, exchangeable or
exercisable.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974 and the regulations
promulgated thereunder.

 

“ERISA
Affiliate”, at any time, means any trade or business (whether or not
incorporated) that would, at the time, be treated together with any member of
the Group as a single employer under Section 414 of the Code.

 

“ERISA Event”
means (a) any “reportable event” as defined in Section 4043 of ERISA or the
regulations issued thereunder, with respect to a Pension Plan (other than an
event for which the 30-day notice period is waived by regulation); (b) the
existence with respect to any Pension Plan of an “accumulated funding
deficiency” (as defined in Section 412 of the Code or Section 302 of ERISA),
whether or not waived; (b) the failure to make by its due date a required
instalment under Section 412(m) of the Code with respect to any Pension Plan;
(c) the filing pursuant to Section 412(d) of the Code or Section 303(d) of
ERISA of an application for a waiver of the minimum funding standard with
respect to any Pension Plan; (d) the incurrence by any member of the Group or
ERISA Affiliate of any liability (other than premiums to the Pension Benefit
Guarantee Corporation) under Title IV of ERISA with respect to any Pension
Plan; (e) the filing by any member of the Group or any ERISA Affiliate of a
notice of intent to terminate a Pension Plan other than in a standard
termination within the meaning of Section 4041 of ERISA or the treatment of a
Pension Plan amendment as a distress termination under Section 4041 of ERISA;
(f) the receipt by any member of the Group or ERISA Affiliate from the
PBGC or a plan administrator of any notice relating to an intention to
terminate any Pension Plan, to appoint a trustee to administer any Pension
Plan, or to take any other action with respect to a Pension Plan that could
result in liability under Title IV of ERISA to a member of the Group or a
Subsidiary, or the occurrence of any event or condition which could reasonably
be expected to constitute grounds under ERISA for the termination of or the
appointment of a trustee to administer, any Pension Plan; (g) the incurrence by
any member of the Group or ERISA Affiliate of any liability with respect to the
withdrawal or partial withdrawal under Title IV of ERISA from any Pension Plan
or Multiemployer Plan; (h) the receipt by a member of the Group or ERISA
Affiliate of any notice concerning the imposition of Withdrawal Liability or a
determination that a Multiemployer Plan is, or is expected to be, insolvent or
in reorganization, within the meaning of Title IV of ERISA; (i) the making of
any amendment to any Pension Plan which could result in the imposition of a
lien or the posting of a bond or other security; or (j) the occurrence of a

 

5

 

nonexempt
prohibited transaction (within the meaning of Section 4975 of the Code or
Section 406 of ERISA) which could result in liability to a member of the Group.

 

“Euro
Facilities” means the Tranche A Euro Facility and the Tranche B Euro
Facility.

 

“Event of
Default” means any event or circumstance specified as such in
Clause 22 (Events of Default).

 

“Excess Cash
Flow” has the meaning given to it in Clause 20 (Financial Covenants).

 

“Excluded
Proceeds” means the proceeds described as such in the letter referred
to in the definition of Proposed Disposals.

 

“Facilities”
means the Tranche A Dollar Facility, the Tranche A Euro Facility, the Tranche B
Dollar Facility, the Tranche B Euro Facility and, where the context so admits
or requires, includes each of them as described and “Facility” means any of
them.

 

“Facility
Documents” means this Agreement, the Commitment Letter, the Security
Documents, any Fee Letter, any Accession Letter, any Resignation Letter, the
Security Agency Agreement and any other document designated as such by an Agent
and the Company.

 

“Facility
Office” means the office or offices notified by a Lender to the
Facility Agent in writing on or before the date it becomes a Lender (or,
following that date, by not less than five Business Days’ written notice) as
the office or offices through which it will perform its obligations under this
Agreement.

 

“Fee Letter”
means a letter setting out any of the fees referred to in Clause 11 (Fees).

 

“Final
Maturity Date” means the fifth anniversary of the Utilisation Date.

 

“Finance
Documents” means the Facility Documents, any Working Capital
Facility Agreement and any Hedging Agreement.

 

“Finance
Party” means the Agents, the Arranger, a Lender, a Hedge
Counterparty and a Working Capital Provider.

 

“Financial Indebtedness” means, without
duplication, any indebtedness for or in respect of:

 

(a)                                       moneys borrowed;

 

(b)                                      any amount raised by acceptance under any acceptance credit
facility;

 

(c)                                       any amount raised pursuant to any note purchase facility or the
issue of bonds, notes, debentures, loan stock or any similar instrument;

 

6

 

(d)                                      the amount of any liability in respect of any lease or hire purchase
contract which would, in accordance with IAS, be treated as a finance or
capital lease;

 

(e)                                       receivables sold or discounted (other than any receivables to the
extent they are sold on a non-recourse basis);

 

(f)                                         any amount raised under any other transaction (including any forward
sale, or purchase agreement, any supply of goods or services which is more than
30 days past the expiry of the period customarily allowed by the relevant
supplier or any sale and leaseback or repurchase) having the commercial effect
of a borrowing;

 

(g)                                      any derivative transaction entered into in connection with
protection against or benefit from fluctuation in any rate or price (and, when
calculating the value of any derivative transaction, only the marked to market
value shall be taken into account);

 

(h)                                      any counter-indemnity obligation in respect of a guarantee,
indemnity, bond, standby or documentary letter of credit or any other
instrument issued by a bank or financial institution; and

 

(i)                                          the amount of any liability in respect of any guarantee or indemnity
or similar insurance against financial loss for any of the items referred to in
paragraphs (a) to (h) above.

 

“Fiscal Year”
means any period of twelve consecutive calendar months ending on
December 31; references to a Fiscal Year with a number corresponding to
any calendar year (e.g., the “2002 Fiscal Year”) refer to the Fiscal Year
ending on December 31 occurring during such calendar year.

 

“Foreign Plan”
means any employee benefit plan, program, policy, arrangement or agreement
maintained or contributed to by, or entered into with, a member of the Group or
with respect to which such entities may have liability, with respect to
employees employed outside the United States.

 

“GAAP”
means generally accepted accounting principles in the United States of America.

 

“Group”
means the Company and its Subsidiaries for the time being.

 

“Governmental
Authority” means any government, Federal, State, court or
governmental agency, authority, instrumentality or regulatory body of any
country.

 

“Guarantee”
of or by any person (the “guarantor”) means any obligation, contingent
or otherwise, of the guarantor guaranteeing or having the economic effect of
guaranteeing any indebtedness or other obligation of any other person (the “primary
obligor”) in any manner, whether directly or indirectly, and
including any obligation of the guarantor, direct or indirect, (a) to
purchase or pay (or advance or supply funds for the purchase or payment of)
such Indebtedness or other obligation or to purchase (or to advance or supply
funds for the purchase of) any security for the

 

7

 

payment
thereof, (b) to purchase or lease property, securities or services for the
purpose of assuring the owner of such Indebtedness or other obligation of the
payment thereof (including pursuant to a “synthetic lease”), (c) to
maintain working capital, equity capital or any other financial statement
condition or liquidity of the primary obligor so as to enable the primary
obligor to pay such Indebtedness or other obligation or (d) as an account
party in respect of any letter of credit or letter of guaranty issued to
support such Indebtedness or obligation; provided that the term “Guarantee”
shall not include endorsements for collection or deposit in the ordinary course
of business.  The amount of the obligation
under any Guarantee shall be deemed to be the lower of (a) an amount equal
to the stated or determinable amount of the primary obligation in respect of
which such Guarantee is made (including principal, interest and fees) and
(b) the maximum amount for which such guarantor may be liable pursuant to
the terms of the instrument embodying such Guarantee, unless such primary
obligation and the maximum amount for which such guarantor may be liable are
not stated or determinable, in which case the amount of the obligation under
such Guarantee shall be such guarantor’s maximum reasonably anticipated
liability in respect thereof as determined by the guarantor in good faith;
irrespective, in any such case, of any amount thereof that would, in accordance
with IAS, be required to be reflected on a balance sheet of such person.

 

“Guarantor”
means an Original Guarantor or an Additional Guarantor, unless it has ceased to
be a Guarantor in accordance with Clause 24 (Changes to the Obligors).

 

“Hazardous
Materials”  means all materials, substances or wastes
classified, characterised, regulated or subject to liability as hazardous,
toxic, pollutants, contaminants, or words of similar meaning under any
Environmental Law, including without limitation, crude oil, petroleum or
petroleum distillates, asbestos and polychlorinated biphenyls (“PCBs”).

 

“Hedging
Agreements” means any interest or currency hedging agreement on
terms (including any amendments thereto) satisfactory to the Facility Agent
entered into pursuant to Clause 21.11 (Hedging Arrangements) by the Borrower or
the Company.

 

“Hedge
Counterparty” means any Lender or Affiliate of a Lender which is a
party to a Hedging Agreement in that capacity.

 

“Hedging
Policy” means the Group’s policy for dealing with foreign exchange
risk, dated February 10, 1999, as amended from time to time with the consent of
the Facility Agent for the sole purpose of hedging its interest rate or
currency risk exposure and for the avoidance of doubt not for speculative or
proprietary purposes.

 

“IAS”
means International Accounting Standards.

 

“Information
Memorandum” means the document in the form approved by the Company
concerning the Group which, at the Company’s request and on its behalf, was
prepared in relation to this transaction and distributed by the Arranger to
selected financial institutions before the date of this Agreement.

 

8

 

“Insurance
Proceeds” means any insurance proceeds received by a member of the
Group in respect of the loss or destruction of, or damage to, an asset net of
any costs of making such claim.

 

“Intercreditor
Agreement” means an intercreditor agreement dated October 28, 2002
among the Security Agent, the United States of America acting through the Civil
Division of the United States Department of Justice on behalf of the Department
of Health and Human Services and the Borrower.

 

“Interest
Period” means, in relation to a Loan, each period determined in
accordance with Clause 9 (Interest Periods) and, in relation to an
Unpaid Sum, each period determined in accordance with Clause 8.3 (Default
interest).

 

“Italian
Pledge” means the agreement pursuant to which the Company pledges
all the shares of its wholly-owned Italian subsidiary, Sulzer Orthopedics
Italia S.p.A., as security for the obligations and liabilities of the Borrower
under the Finance Documents.

 

“Lender” means:

 

(a)                                       any Original Lender; and

 

(b)                                      any bank, financial institution, trust, fund or other entity which
has become a Party in accordance with Clause 23 (Changes to the Lenders),

 

which in each
case has not ceased to be a Party in accordance with the terms of this
Agreement.

 

“LIBOR” means, in relation to any Loan:

 

(a)                                       the applicable Screen Rate; or

 

(b)                                      (if no Screen Rate is available for dollars or euros as the case may
be for the Interest Period of that Loan) the arithmetic mean of the rates
(rounded upwards to four decimal places) as supplied to the Facility Agent at
its request quoted by the Reference Banks to leading banks in the London
interbank market,

 

as of the
Specified Time on the Quotation Day for the offering of deposits in dollars or
euros as the case may be and for a period comparable to the Interest Period for
that Loan.

 

“Loan”
means a Tranche A Dollar Loan, a Tranche A Euro Loan, a Tranche B Dollar Loan
or a Tranche B Euro Loan and “Loans” means each of them.

 

“LMA”
means the Loan Market Association.

 

“Majority Lenders” means:

 

(a)                                       if there are no Loans then outstanding, a Lender or Lenders whose
Commitments aggregate more than 66 2/3% of the Total Commitments (or, if

 

9

 

the Total Commitments have been reduced to
zero, aggregated more than 66 2/3% of the Total Commitments immediately prior
to the reduction); or

 

(b)                                      at any other time, a Lender or Lenders whose participations in the
Loans then outstanding aggregate more than 66 2/3% of all the Loans then
outstanding.

 

“Mandatory
Cost” means the percentage rate per annum calculated by the Facility
Agent in accordance with Schedule 4 (Mandatory Cost Formula).

 

“Margin”
means:

 

(a)                                       with respect to the Tranche A Loans:

 

(i)                             2.75 per cent. per annum for the period commencing on
the Utilisation Date and ending on the date falling six months thereafter,

 

(ii)                       3.00 per cent. per annum for the period commencing on
the date immediately following the date falling six months after the
Utilisation Date and ending on the date falling 12 months after the Utilisation
Date,

 

(iii)                    3.25 per cent. per annum for the period commencing on
the date immediately following the date falling 12 months after the Utilisation
Date and ending on the date falling 18 months after the Utilisation Date, and

 

(iv)                   3.50
per cent. per annum for the period commencing on the date immediately following
the date falling 18 months after the Utilisation Date and ending on the Tranche
A Maturity Date.

 

(b)                                      with respect to the Tranche B Loans, 3.50 per cent. per annum.

 

“Material
Adverse Effect” means a material adverse effect on:

 

(a)                                       the ability of the Obligors (taken as a whole) to comply with

 

(i)                               their payment obligations under any Finance Document; or

 

(ii)                            any of their obligations under Clause 20 (Financial Covenants);

 

(b)                                      the value or validity or enforceability of the security granted to
the Finance Parties pursuant to the Security Documents; or

 

(c)                                       the business, financial condition, assets or prospects of the
Obligors taken as a whole.

 

“Material
Contracts” means

 

(a)                                       any contract or other agreement, written or oral, entered into by
any member of the Group involving monetary liability of or to any such person
in an amount in excess of $5,000,000 (or the equivalent) per annum if such

 

10

 

contract or other agreement is not
replaceable within less than 30 days notice from one party to the other party
and shall be on reasonable terms; or

 

(b)                                      any other contract or agreement, written or oral, of any member of
the Group, the failure to comply with which could reasonably be expected to
have a Material Adverse Effect.

 

“Material
Subsidiary” means the Borrower and each Subsidiary of the Company:

 

(a)                                       whose EBITDA is equal to or greater than 5% of the EBITDA of the
Company, or

 

(b)                                      whose revenues are equal to or greater than 5% of the revenues of
the Company, or

 

(c)                                       whose total assets have a value equal to or greater than 5% of the
aggregate value of all assets owned by the Group (excluding intra-Group items),

 

and any other
Subsidiary nominated by the Company in writing to the Facility Agent provided
that members of the Group that are not Material Subsidiaries shall not at any
time, have in aggregate, EBITDA, revenues or total assets which exceed 10% of
the EBITDA, revenues or total assets of the Company.

 

For the
purposes of this definition:

 

(a)                                       “EBITDA” means in respect of the Company, Consolidated EBITDA
(except that where a Subsidiary of a member of the Group which is fully
consolidated is less than 100% owned, only that portion of the EBITDA of that
Subsidiary that equals the percentage ownership of that Subsidiary by that
member of the Group will be included) as defined in Clause 20 (Financial
Covenants) and in respect of any Subsidiary, means Consolidated
EBITDA as so defined in that Clause but as if each reference in that definition
to the Company were a reference to that Subsidiary);

 

(b)                                      the EBITDA, revenue or total assets of each member of the Group will
be determined from each of its financial statements (consolidated if it has
Subsidiaries, except that where a Subsidiary of a member of the Group which is
fully consolidated is less than 100% owned, only that portion of the EBITDA,
revenues and total assets of that Subsidiary that equals the percentage
ownership of that Subsidiary by that member of the Group will be included) upon
which the latest audited financial statements of the Group are based;

 

(c)                                       if a Subsidiary of the Company becomes a member of the Group after
the date on which the latest audited financial statements of the Group have
been prepared, the EBITDA, revenue or total assets of that Subsidiary will be
determined from the latest audited financial statements of that Subsidiary; and

 

(d)                                      the EBITDA, revenue and total assets of the Company will be
determined from its latest annual audited financial statements, adjusted to
reflect the

 

11

 

EBITDA, revenue and total assets of any
company or business subsequently acquired or disposed of.

 

If there is a
dispute as to whether a member of the Group is a Material Subsidiary a
certificate of the auditors of the Company will be, in the absence of manifest
error, conclusive.

 

“Medicare
Security Agreement” means the Medicare Security Agreement dated
April 24, 2002 by and among the Borrower and the United States of America.

 

“Medicare
Settlement Agreement” means the Settlement agreement dated April 24,
2002 by and among the Borrower and the United States of America.

 

“Month”
means a period starting on one day in a calendar month and ending on the
numerically corresponding day in the next calendar month, except that:

 

(a)                                       (subject to paragraph (c) below) if the numerically corresponding
day is not a Business Day, that period shall end on the next Business Day in
that calendar month in which that period is to end if there is one, or if there
is not, on the immediately preceding Business Day;

 

(b)                                      if there is no numerically corresponding day in the calendar month
in which that period is to end, that period shall end on the last Business Day
in that calendar month; and

 

(c)                                       if an Interest Period begins on the last Business Day of a calendar
month, that Interest Period shall end on the last Business Day in the calendar
month in which that Interest Period is to end.

 

The above
rules will only apply to the last Month of any period.

 

“Moody’s”
means Moody’s Investors Services Inc.

 

“Mortgage”
means a mortgage, deed of trust, assignment of leases and rents, leasehold
mortgage or other security document granting a Security on any Mortgaged
Property to secure the obligations of the Obligors under the Finance
Documents.  Each Mortgage shall be
reasonably satisfactory in form and substance to the Security Agent.

 

“Mortgaged
Properties” means those properties which are subject to Mortgages
and which are set forth in Schedule 19 (Mortgaged Property) and any other
properties which shall hereafter be subject to Mortgages.

 

“Multiemployer
Plan” means a multiemployer plan within the meaning of Section
4001(a)(3) of ERISA with respect to which any member of the Group or any ERISA
Affiliate could incur liability.

 

“Obligor”
means the Company, the Borrower or a Guarantor.

 

12

 

“Operating Budget” means, in relation to the
Group and in relation to each successive Fiscal Year:

 

(a)                                       a projected balance sheet;

 

(b)                                      a projected profit and loss account;

 

(c)                                       a projected cash flow statement; and

 

(d)                                      projected covenant calculations relating to each financial
undertaking contained in Clause 20 (Financial covenants),

 

relative to
each such period and on a quarterly basis and with management’s commentary
drawing on the previous period’s performance and with a brief statement
concerning market conditions.

 

“Original
Financial Statements” means:

 

(a)                                       in relation to the Company, the audited consolidated financial
statements of the Group for the three financial years ended December 31, 2001;
and

 

(b)                                      in relation to each Original Obligor other than the Company, its
audited financial statements for its financial year ended December 31, 2001 in
the form delivered to the Facility Agent prior to or, in the case of
Centerpulse Ibérica SA, after the date of this Agreement.

 

“Original
Obligor” means the Borrower or an Original Guarantor.

 

“Participating
Member State” means any member state of the European Communities
that adopts or has adopted the euro as its lawful currency in accordance with
legislation of the European Community relating to Economic and Monetary Union.

 

“Party”
means a party to this Agreement.

 

“PBGC”
means the Pension Benefit Guaranty Corporation or any entity succeeding to any
or all of its functions under ERISA.

 

“Pension Plan”
means a “pension plan” as such term is defined in Section 3(2) of ERISA, which
is subject to Section 302 or Title IV of ERISA (other than a Multiemployer
Plan) and to which any member of the Group or any ERISA Affiliate may have
liability, including any liability by reason of having been a substantial
employer within the meaning of Section 4063 of ERISA at any time during the
preceding five years, or by reason of being deemed to be a contributing sponsor
under Section 4069 of ERISA.

 

“Permitted
Financial Indebtedness” means any Financial Indebtedness:

 

(a)                                       under any Finance Document;

 

(b)                                      set out in Schedule 14 (Existing Financial Indebtedness);

 

13

 

(c)                                       which is Subordinated Debt and the net proceeds of which are used to
prepay the Loans;

 

(d)                                      existing at the date of this Agreement between members of the Group;

 

(e)                                       owed by any member of the Group which is not an Unconditional
Obligor to an Unconditional Obligor, provided such Financial Indebtedness is
the subject of Security granted by that Unconditional Obligor in favour of the
Finance Parties;

 

(f)                                         owed by an Unconditional Obligor to another member of the Group
which is not an Unconditional Obligor;

 

(g)                                      under the Settlement and the Medicare Settlement Agreement;

 

(h)                                      consistent with the Hedging Policy in an aggregate amount not
exceeding at any time $5,000,000 or under the Hedging Agreements;

 

(i)                                          owed by an Unconditional Obligor to another Unconditional Obligor;

 

(j)                                          owed between members of the Group which are not Guarantors;

 

(k)                                       owed by members of the Group which are not Unconditional Obligors to
Unconditional Obligors in an aggregate principal amount not exceeding
$10,000,000;

 

(l)                                          owed by a Guarantor which is not an Unconditional Obligor to another
Guarantor which is not an Unconditional Obligor;

 

(m)                                    which is used to repay all amounts outstanding under the Facility
Documents; and

 

(n)                                      in addition to the categories referred to in paragraphs (a) to (m)
above (inclusive) in an aggregate principal amount not exceeding $15,000,000
for the Group taken as a whole.

 

“Permitted
Investments” means:

 

(a)                                       securities with maturities of one year or less from the date of
acquisition issued or fully guaranteed by the United States of America or an
agency thereof or Switzerland or any member state of the European Union from
time to time;

 

(b)                                      certificates of deposit and eurodollar time deposits with maturities
of 365 days or less from the date of acquisition and overnight bank deposits of
any Lender or of any commercial bank having a rating of at least A-1 by S&P
or P-1 by Moody’s;

 

(c)                                       repurchase obligations of any Lender or of any commercial bank satisfying
the requirements of clause (b) of this definition having a term of not more
than 90 days with respect to securities issued or fully guaranteed by the
United States of America or an agency thereof;

 

14

 

(d)                                      commercial paper of a domestic issuer rated at least A-1 by S&P
or P-1 by Moody’s; or

 

(e)                                       shares of money market mutual or similar funds which invest exclusively
in assets satisfying the requirements of clauses (a) through (d) of this
definition;

 

provided that,
in the case of any investment by a Non-U.S. Subsidiary, “Permitted Investments”
shall also include:  (i) direct
obligations of the sovereign nation (or an agency thereof) in which such
Non-U.S. Subsidiary is organized and is conducting business or in obligations
fully and unconditionally guaranteed by such sovereign nation (or an agency
thereof), (ii) investments of the type and maturity described in clauses
(a) through (d) above of foreign obligors, which investments or obligors (or
the parents of such obligors) have ratings described in such clauses or
equivalent ratings from comparable foreign rating agencies, and
(iii) shares of money market mutual or similar funds which invest
exclusively in assets otherwise satisfying the requirements of this definition
(including this proviso).

 

“Permitted
Security” means any Security permitted by paragraph (c) of Clause 21.18
(Negative
pledge).

 

“Plan”  means
any Pension Plan or Welfare Plan.

 

“Prime Rate”
means the rate of interest per annum publicly announced from time to time by
UBS AG, Stamford Branch as its prime rate for Dollars in effect at its
principal office in Stamford, Connecticut. 
The Prime Rate is not intended to be the lowest rate of interest charged
by a Lender in connection with extensions of credit to debtors.

 

“Proposed
Disposals” means the disposals set out in a letter from the Facility
Agent to the Company or on about the date of this Agreement.

 

“Qualified
Survey” means (a) a current title survey, of a Mortgaged Property
certified to the owner of such Mortgaged Property, the title company issuing
the Qualified Title Insurance Policy in respect of that Mortgaged Property and
the Facility Agent and their successors and assigns, or (b) an existing survey
of a Mortgaged Property, accompanied by a survey affidavit if such survey of a
Mortgaged Property and affidavit are sufficient to cause the relevant title
company to provide standard survey coverage, in any event in a form and
substance reasonably satisfactory to the Facility Agent.

 

“Qualified
Title Insurance Policy” means an ALTA (or, with respect to Mortgaged
Properties in the State of Texas, the Texas Land Title Association) extended
coverage mortgagee’s title insurance policy in form and substance reasonably
satisfactory to the Facility Agent.

 

“Quotation
Day” means, in relation to any period for which an interest rate is
to be determined, two Business Days before the first day of that period in
respect of the Dollar Facilities; and in respect of the Euro Facilities two
Business Days before the first day of that period, unless market practice
differs in the Relevant Interbank

 

15

 

Market in
which case the Quotation Day will be determined by the Facility Agent in
accordance with market practice in the Relevant Interbank Market (and if
quotations would normally be given by leading banks in the Relevant Interbank
Market on more than one day, the Quotation Day will be the last of those days).

 

“Reference
Banks” means in relation to LIBOR and Mandatory Cost the principal
London office of UBS AG, HSBC Bank plc and The Royal Bank of Scotland plc or
such other prime international banks as may be appointed by the Facility Agent
in consultation with the Company.

 

“Register”
has the meaning given to it in Clause 5.4 (Lender’s participation).

 

“Release”
means any spilling, leaking, pumping, pouring, emitting, emptying, discharging,
injecting, escaping, leaching, dumping, disposing, depositing, dispersing or
migrating of any Hazardous Material in, into, onto or through the Environment.

 

“Relevant
Interbank Market” means the London or New York interbank market.

 

“Remedial Action”
means (a) “remedial action” as such term is defined in CERCLA, 42 USC Section
9601(24), and (b) all other actions required by any Governmental Authority
or otherwise required by Environmental Law (i) clean up, remove, treat,
abate or otherwise take corrective action to address any Hazardous Material in
the Environment; (ii) prevent the Release or threat of Release, or
minimize the further Release of any Hazardous Material so it does not migrate
or endanger or threaten to endanger public health, welfare or the Environment;
or (iii) perform studies and investigations in connection with, or as a
precondition to, (i) or (ii) above.

 

“Repeating
Representations” means in the case of the repetition of the
representations on the Utilisation Date each of the representations set out in
Clause 18 (Representations)
and thereafter each of the representations set out in Clause 18.1 (Status),
18.9(a) (No
default), 18.12 (Pari passu ranking), 18.21 (Pension and
Welfare Plans), 18.22, (Environmental Warranties), 18.23 (Regulations
U and X) and 18.24 (Investment Company Act).

 

“Resignation
Letter” means a letter substantially in the form set out in Schedule
7 (Form
of Resignation Letter).

 

“Restricted
Payment” means any direct or indirect dividend or other distribution
(whether in cash, securities or other property) with respect to any Equity
Interests or Equity Rights in any member of the Group, or any payment (whether
in cash, securities or other property), including any sinking fund or similar
deposit, on account of the purchase, redemption, retirement, acquisition,
cancellation or termination of any Equity Interests or Equity Rights in any
member of the Group.

 

“Rights Issue”
means the capital increase by way of a rights offering (Kapitalerhöhung mit Bezugsangebot an die
bisherigen Aktionäre) for 1,822,408 newly issued shares of the
Company with a nominal value of CHF 30 each offered by the Company pursuant to
an offering circular dated September 29, 2002.

 

16

 

“S&P”
means Standard & Poor’s Rating Services, a division of The McGraw-Hill
Companies.

 

“Screen Rate” means the British Bankers’
Association Interest Settlement Rate for dollars or euros for the relevant
period the percentage rate per annum determined by the Banking Federation of
the European Union for the relevant period, displayed on page 3750 of the
Telerate Reuters screen (or such other page as may replace such page on such
service for the purpose of displaying the rates at which dollar and/or euro
deposits are offered by leading banks in the London interbank deposit market).

 

“Security”
means a mortgage, charge, pledge, lien or other security interest securing any
obligation of any person or any other agreement or arrangement having a similar
effect.

 

“Security Agency
Agreement” means the Security Agency Agreement dated on or around
the date hereof entered into among the Finance Parties.

 

“Security
Documents” means the documents listed in Part I of Schedule 2 (Conditions
Precedent) under the heading “Security Documents”, and all Uniform
Commercial Code or other financing statements or instruments or agreements
which shall contain such provisions as shall be necessary to conform such
documents to applicable requirements of law, and any guarantee, pledge
agreement, security document or any other instrument utilized to pledge or
grant a lien or security interest executed after the date of this Agreement as
security for the obligations and liabilities of any Obligor under the Finance
Documents.

 

“Selection
Notice” means a notice substantially in the form set out in Part II
of Schedule 3 (Requests) given in accordance with Clause 9 (Interest
Periods).

 

“Settlement”
means the class action settlement agreement dated March 13, 2002.

 

“Specified
Time” means a time determined in accordance with Schedule 11 (Timetables).

 

“Subordinated
Debt”
means unsecured subordinated debt of a member of the Group that is expressly
subordinated to the obligations of the Obligors under the Finance Documents on
terms that are at least as restrictive to the holders thereof as the terms of
the subordination in the Intercreditor Agreement as in effect on the
Utilisation Date; provided that (a) the terms of such debt (i) do not provide
for any scheduled repayment, mandatory redemption (other than as a result of a
cross acceleration) or sinking fund obligation prior to one year after the
Final Maturity Date or prior to the date falling one year after repayment in
full of the Loans and (ii) do not restrict, limit or adversely affect the
ability of the Obligors to perform their obligations under any of the Finance
Documents and (b) the covenants, events of default and payment terms are no
more favourable to the holders of such debt as are customary for similar
offerings by issuers with credit ratings comparable to that of the Company and
are satisfactory to the Facility Agent.

 

“Subsidiary”
means, with respect to any person, (i) any corporation of which more than
50% of the outstanding capital stock having ordinary voting power to elect a

 

17

 

majority of
the board of directors of such corporation (irrespective of whether at the time
capital stock of any other class or classes of such corporation shall or might
have voting power upon the occurrence of any contingency) is at the time
directly or indirectly owned by such person, by such person and one or more
other Subsidiaries of such person, or by one or more other Subsidiaries of such
person; (ii) any partnership of which more than 50% of the outstanding partnership
interests having the power to act as a general partner of such partnership
(irrespective of whether at the time any partnership interests other than
general partnership interests of such partnership shall or might have voting
power upon the occurrence of any contingency) are at the time directly or
indirectly owned by such person, by such person and one or more other
Subsidiaries of such person, or by one or more other Subsidiaries of such
person; or (iii) any other legal entity the accounts of which would or
should be consolidated with those of such person on a consolidated balance
sheet of such person prepared in accordance with IAS.  Unless otherwise indicated, when used in this Agreement, the term
“Subsidiary” shall refer to a Subsidiary of the Company.

 

“TARGET”
means Trans-European Automated Real-time Gross Settlement Express Transfer
payment system.

 

“TARGET Day”
means any day on which TARGET is open for the settlement of payments in euro.

 

“Tax”
means any tax, levy, impost, duty or other charge or withholding of a similar
nature (including any penalty or interest payable in connection with any
failure to pay or any delay in paying any of the same).

 

“Total
Commitments” means the aggregate of the Commitments.

 

“Tranche A
Dollar Commitments” means:

 

(a)                                       in relation to an Original Lender, the amount set opposite its name
under the heading “Tranche A Dollar Commitments” in Part II of Schedule 1 (The
Original Parties) and the amount of any other Tranche A Dollar
Commitments transferred to it under the Agreement; and

 

(b)                                      in relation to any other Lender, the amount of any Tranche A Dollar
Commitments transferred to it under this Agreement;

 

to the extent
not cancelled, reduced or transferred by it under this Agreement.

 

“Tranche A
Dollar Facility” means the $91,352,100 term loan facility made
available under this Agreement as described in Clause 2 (The Facilities).

 

“Tranche A
Dollar Loan” means the principal amount outstanding for the time
being of a loan made under the Tranche A Dollar Facility.

 

“Tranche A
Euro Commitments” means:

 

(a)                                       in relation to an Original Lender, the amount set opposite its name
under the heading “Tranche A Euro Commitments” in Part II of Schedule 1 (The

 

18

 

Original Parties) and the
amount of any other Tranche A Euro Commitments transferred to it under this
Agreement; and

 

(b)                                      in relation to any other Lender, the amount of any Tranche A Euro
Commitments transferred to it under this Agreement,

 

to the extent
not cancelled, reduced or transferred by it under this Agreement.

 

“Tranche A
Euro Facility” means the €163,000,000 term loan facility made
available under this Agreement as described in Clause 2 (The Facilities).

 

“Tranche A
Euro Loan” means the principal amount outstanding for the time being
of a loan made under the Tranche A Euro Facility.

 

“Tranche A
Facilities” means the Tranche A Dollar Facility and the Tranche A
Euro Facility.

 

“Tranche A Loans” means the Tranche A Dollar
Loan and the Tranche A Euro Loan.

 

“Tranche A Maturity Date” means the second
anniversary of the Utilisation Date.

 

“Tranche B
Dollar Commitments” means:

 

(a)                                       in relation to an Original Lender, the amount set opposite its name
under the heading “Tranche B Dollar Commitments” in Part II of Schedule 1 (The Original
Parties) and the amount of any other Tranche B Dollar Commitments
transferred to it under the Agreement; and

 

(b)                                      in relation to any other Lender, the amount of any Tranche B Dollar
Commitments transferred to it under this Agreement;

 

to the extent not cancelled, reduced or
transferred by it under this Agreement.

 

“Tranche B
Dollar Facility” means the $275,990,400 term loan facility made
available under this Agreement as described in Clause 2 (The Facilities).

 

“Tranche B
Dollar Loan” means the principal amount outstanding for the time
being of a loan made under the Tranche B Dollar Facility.

 

“Tranche B Euro Commitments” means:

 

(a)                                       in relation to an Original Lender, the amount set opposite its name
under the heading “Tranche B Euro Commitments” in Part II of Schedule 1 (The Original
Parties) and the amount of any other Tranche B Euro Commitments
transferred to it under this Agreement; and

 

(b)                                      in relation to any other Lender, the amount of any Tranche B Euro
Commitments transferred to it under this Agreement,

 

to the extent
not cancelled, reduced or transferred by it under this Agreement.

 

19

 

“Tranche B
Euro Facility” means €112,000,000 term loan facility made available
under this Agreement as described in Clause 2 (The Facilities).

 

“Tranche B
Euro Loan” means the principal amount outstanding for the time being
of a loan made under the Tranche B Euro Facility.

 

“Tranche B
Loans” means the Tranche B Dollar Loan and the Tranche B Euro Loan.

 

“Tranche B
Facilities” means the Tranche B Dollar Facility and the Tranche B
Euro Facility

 

“Transfer
Certificate” means a certificate substantially in one of the forms
set out in Schedule 5 (Form of Transfer Certificates) or any
other form agreed between the Facility Agent and the Company.

 

“Transfer
Date” means, in relation to a transfer, the later of:

 

(a)                                       the proposed Transfer Date specified in the Transfer Certificate;
and

 

(b)                                      the date on which the Facility Agent executes the Transfer
Certificate.

 

“Unconditional
Obligor” means the Borrower and any Obligor whose obligations
hereunder are not the subject of any material legal limitation or restriction
being on the date hereof Sulzer Carbomedics Inc, Centerpulse Orthopedics Inc.,
Centerpulse Spine-Tech Inc., Centerpulse Dental Inc., Centerpulse USA Holding
Co., Centerpulse USA Inc., Centerpulse Ltd and Centerpulse (UK) Ltd.

 

“Uniform
Commercial Code” shall mean the Uniform Commercial Code as in effect
in the applicable state or jurisdiction of the United States of America.

 

“Unpaid Sum”
means any sum due and payable but unpaid by an Obligor under the Facility
Documents.

 

“Utilisation”
means the utilisation of the Facilities.

 

“Utilisation
Date” means the date of the Utilisation, being the date on which the
Loans are to be made.

 

“Utilisation
Request” means the notice substantially in the form set out in Part
I of Schedule 3 (Requests).

 

 “U.S. Commodity Account Control Agreement”
has the meaning assigned to such term in the U.S. Security Agreement.

 

“U.S. Deposit
Account Control Agreement” has the meaning assigned to such term in
the U.S. Security Agreement.

 

“U.S.
Intellectual Property Agreements” has the meaning given to such term
in the U.S. Security Agreement.

 

20

 

“U.S. Securities Account Control Agreement”
has the meaning assigned to such term in the U.S. Security Agreement.

 

“U.S.
Security Agreement” means the U.S. Security Agreement dated as of
the date hereof entered into among the Company, the Borrower, certain
Subsidiaries specified therein and the Security Agent on behalf of the Secured
Parties (as defined therein).

 

“U.S. Security Documents” means the U.S.
Security Agreement, the U.S. Intellectual Property Agreements, each U.S.
Securities Account Control Agreement, each U.S. Deposit Account Control
Agreement, each U.S. Issuer Control Agreement and all Uniform Commercial Code
or other financing statements or filings or instruments or agreements which
shall contain such provisions as shall be necessary to conform such documents
to applicable requirements of law and U.S. Security Agreement requirements, and
which may be necessary or applicable to establish, perfect, maintain or ensure
the first priority nature of the security interests granted under the U.S. Security
Agreement.

 

“VAT”
means value added tax as provided for in the Value Added Tax Act 1994 and any
other tax of a similar nature.

 

“Welfare Plan”
means a “welfare plan” as such term is defined in Section 3(1) of ERISA, that
is maintained or contributed to by any member of the Group or with respect to
which any member of the Group could incur liability.

 

“Withdrawal
Liability” has the meaning given to such term under Part I of
Subtitle E of Title IV of ERISA.

 

“Working
Capital Facilities” means working capital facilities which:

 

(a)                                       in aggregate do not exceed $58,300,000 (or the equivalent amount in
other currencies), or any increase in such amount arising only as a result of
fluctuations in the value of currencies (other than the Dollar) in which the
relevant facility is denominated after the later of the date of this Agreement
and the date on which that facility was first provided;

 

(b)                                      are made available only to members of the Group which are Obligors
or whose obligations are guaranteed by an Obligor; and

 

(c)                                       accrue interest at a rate no higher than 3.5% plus LIBOR.

 

“Working
Capital Facility Agreement” means any agreement as may be approved
in writing by the Facility Agent relating to the Working Capital Facilities.

 

“Working
Capital Providers” means Bayerische Hypo-und Vereinsbank AG and any
Lenders approved by the Facility Agent which have provided Working Capital
Facilities in their capacity as lenders under such Working Capital Facilities.

 

1.2         Construction

 

(a)                           Unless a contrary indication appears, any reference in this
Agreement to:

 

21

 

(i)                                          an “Agent”, the “Arranger”, any “Finance Party”, any “Lender”,
any “Obligor”
or any “Party”
shall be construed so as to include its successors in title, permitted assigns
and permitted transferees;

 

(ii)                                       “assets” includes present and future properties, revenues and
rights of every description;

 

(iii)                                    “Dollars”, “dollars” or “$” is a reference to the
lawful currency of the United States of America;

 

(iv)                                   “Euros”, “euros” or “€” is a reference to the
single currency of the Participating Member States;

 

(v)                                      a “Finance Document” or any other agreement or instrument is a
reference to that Finance Document or other agreement or instrument as amended
or novated;

 

(vi)                                   “including” means “including without limitation” except when
used in the computation of time periods;

 

(vii)                                “indebtedness” includes any obligation (whether incurred as
principal or as surety) for the payment or repayment of money, whether present
or future, actual or contingent;

 

(viii)                             “litigation” includes a reference to any litigation,
arbitration or administrative proceedings of or before any court, arbitral body
or agency;

 

(ix)                                     a “person” includes any person, firm, company, corporation,
government, state or agency of a state or any association, trust or partnership
(whether or not having separate legal personality) or two or more of the
foregoing;

 

(x)                                        a “regulation” includes any regulation, rule, official directive,
request or guideline (whether or not having the force of law) of any
governmental, intergovernmental or supranational body, agency, department or
regulatory, self-regulatory or other authority or organisation;

 

(xi)                                     a provision of law is a reference to that provision as amended or
re-enacted; and

 

(xii)                                  a time of day is a reference to London time.

 

(b)                          Section, Clause and Schedule headings are for ease of reference
only.

 

(c)                           Unless a contrary indication appears, a term used in any other
Finance Document or in any notice given under or in connection with any Finance
Document has the same meaning in that Finance Document or notice as in this
Agreement.

 

(d)                          A Default is “continuing” if it has not been remedied or
waived.

 

22

 

1.3                          Third party rights

 

(a)                           Unless expressly provided to the contrary in a Finance Document, a
person who is not a Party has no right under the Contracts (Rights of Third
Parties) Act 1999 (the “Third Parties Act”) to enforce or to enjoy
the benefit of any term of this Agreement.

 

(b)                          Notwithstanding any term of any Finance Document, the consent of any
person who is not a Party is not required to rescind or vary this Agreement at
any time.

 

23

 

SECTION 2

 

THE FACILITIES

 

2.                                THE FACILITIES

 

2.1                          Tranche A Dollar Facility

Subject to the
terms of this Agreement, the Lenders having a Tranche A Dollar Commitment agree
to make available to the Borrower a dollar term loan facility in an aggregate
amount equal to the aggregate of the Tranche A Dollar Commitments.

 

2.2                          Tranche A Euro Facility

Subject to the
terms of this Agreement, the Lenders having a Tranche A Euro Commitment agree
to make available to the Borrower, a euro term loan facility in an aggregate
amount equal to the aggregate of the Tranche A Euro Commitments.

 

2.3                          Tranche B Dollar Facility

Subject to the
terms of this Agreement, the Lenders having a Tranche B Dollar Commitment agree
to make available to the Borrower, a dollar term loan facility in an aggregate
amount equal to the aggregate of the Tranche B Dollar Commitments.

 

2.4                          Tranche B Euro Facility

Subject to the
terms of this Agreement, the Lenders having a Tranche B Euro Commitment agree
to make available to the Borrower, a Euro term loan facility in an aggregate
amount equal to the aggregate of the Tranche B Euro Commitments.

 

2.5                          Finance Parties’ rights and obligations

(a)                           The obligations of each Finance Party under the Finance Documents
are several.  Failure by a Finance Party
to perform its obligations under the Finance Documents does not affect the
obligations of any other Party under the Finance Documents.  No Finance Party is responsible for the
obligations of any other Finance Party under the Finance Documents.

 

(b)                          The rights of each Finance Party under or in connection with the
Finance Documents are separate and independent rights and any debt arising
under the Finance Documents to a Finance Party from an Obligor shall be a
separate and independent debt.

 

(c)                           A Finance Party may, except as otherwise stated in the Finance
Documents, separately enforce its rights under the Finance Documents.

 

3.                                PURPOSE

 

3.1                          Purpose

The Borrower
shall apply all amounts borrowed by it under the Facilities towards:

 

(a)                           first the cash portion and the CCI component of the Settlement plus agreed
fees and expenses; and

 

(b)                          secondly, funding other general corporate expenses including,
without limitation, working capital requirements.

 

24

 

3.2                          Monitoring

No Finance
Party is bound to monitor or verify the application of any amount borrowed
pursuant to this Agreement.

 

4.                                CONDITIONS OF UTILISATION

 

4.1                          Initial conditions precedent

The Company
may not deliver the Utilisation Request unless the Facility Agent has received
all of the documents and other evidence listed in Part I of Schedule 2 (Conditions
precedent) in form and substance satisfactory to the Facility
Agent.  The Facility Agent shall notify
the Company and the Lenders promptly upon being so satisfied.

 

4.2                          Further conditions precedent

The Lenders will only be obliged to comply
with Clause 5.4 (Lenders’ participation) if on the date of the Utilisation
Request and on the proposed Utilisation Date:

 

(a)                           no Default is continuing or would result from the proposed Loan; and

 

(b)                          the Repeating Representations to be made by each Obligor are true in
all material respects.

 

4.3                          Maximum number of Loans

 

(a)                           The Borrower may not deliver the Utilisation Request if as a result
of the proposed Utilisation more than four Loans would be outstanding.

 

(b)                          The Borrower may not request that a Loan be divided if, as a result
of the proposed division, more than eight Loans would be outstanding.

 

25

 

SECTION 3

 

UTILISATION

 

5.                                UTILISATION

 

5.1                          Delivery of the Utilisation Request

The Borrower
may utilise the Facilities by delivery to the Facility Agent of the duly
completed Utilisation Request not later than the relevant Specified Time.

 

5.2                          Completion of the Utilisation Request and Drawdown of the
Loan

(a)                           The Utilisation Request is irrevocable and will not be regarded as
having been duly completed unless:

 

(i)                                         the proposed Utilisation Date is a Business Day within the
Availability Period;

 

(ii)                                      the currency and amount of the Utilisation comply with Clause 5.3 (Currency and
amount); and

 

(iii)                                   the proposed Interest Period complies with Clause 9 (Interest
Periods).

 

(b)                          Only one Utilisation Request may be delivered under the Agreement.

 

(i)                                         Any part of the Facilities not borrowed on the Utilisation Date will
be automatically cancelled.

 

(ii)                                      If the Utilisation Date is a date prior to November 4, 2002 the
amounts borrowed on the Utilisation Date will be held in the Cash Collateral
Account pending payment to the Settlement Trust in accordance with the
Settlement and to meet agreed fees and expenses.

 

5.3                          Currency and amount

(a)                           The currency specified in the Utilisation Request must be dollars in
respect of the Dollar Facilities and euros in respect of the Euro Facilities.

 

(b)                          The amount of the proposed Loan must be an amount which is not more
than the Facility to which that Loan relates.

 

5.4                          Lenders’ participation

(a)                           If the conditions set out in this Agreement have been met, each
Lender shall make its participation in each Loan available by the Utilisation
Date through its Facility Office.

 

(b)                          The amount of each Lender’s participation in each Loan will be equal
to the proportion borne by its Commitment to the relevant Facility immediately
prior to making the Loan.

 

(c)                           The Facility Agent shall notify each Lender of the amount of each
Loan and the amount of its participation in that Loan by the relevant Specified
Time.

 

26

 

(d)                          The Facility Agent, as agent of the Borrower, shall maintain (and
make available to the Borrower and the Company on reasonable notice and at
reasonable times during a Business Day) a register for the recording of the
names and addresses of each Lender and the Commitments of, and principal amount
of the Loans owing to, each Lender from time to time, and of the details of any
assignments or transfers to New Lenders (the “Register”).  Failure to make any recordation, or any
error in such recordation, shall not affect the Borrowers obligations in
respect of the Loan.  The entries made
in the Register shall be conclusive of the existence and amounts of the
obligations recorded therein and binding for all purposes, absent manifest
error.  Amounts due and owing to the
Lenders by the Obligors or to the New Lenders will be paid only to those
persons entered into the Register as Lenders or New Lenders in accordance with
Clause 28 (Payment
mechanics).

 

(e)                           The Borrower agrees that, upon the request to the Facility Agent by
any Lender, the Borrower will execute and deliver to such Lender, as
applicable, a promissory note of the Borrower payable to such Lender,
evidencing the Loans made by such Lender to the Borrower (as such promissory
note may be amended, endorsed or otherwise modified from time to time and all
other promissory notes issued from time to time in substitution therefor or
renewal thereof, a (“Note”).  The
Borrower hereby irrevocably authorizes each Lender to make (or cause to be
made) appropriate notations on the grid attached to such Lender’s Notes (or on
any continuation of such grid), which notations, if made, shall evidence, inter
alia, the date of, the outstanding principal amount of, and the interest
rate and Interest Period applicable to the Loans evidenced thereby.  Such notations shall, to the extent not
inconsistent with the notations made by the Facility Agent in the Register, be
conclusive and binding on the Borrower absent manifest error; provided,
however, that the failure of any Lender to make any such notations or any error
in any such notations shall not limit or otherwise affect any obligations of
the Borrower or any other Obligor.  A
Note and the Loan evidenced thereby may be assigned or otherwise transferred in
whole or in part only by registration of such assignment or transfer or such
Note and the Loan evidenced thereby in the Register (and each Note shall
expressly so provide).  Any assignment
or transfer of the entire remaining amount of a Lender’s Commitments and the
Loans made pursuant thereto and evidenced by a Note shall be registered in the
Register only upon surrender for registration of an assignment or transfer of
the Note evidencing such Loan, accompanied by a Transfer Certificate duly
executed by the assignor thereof, and thereupon, if requested by the assignee,
one or more new Notes shall be issued to the designated assignee and the old
Note shall be returned by the Facility Agent to the Borrower marked
“exchanged”.  No assignment or transfer
of a Note and the Loan evidenced thereby shall be effective unless it shall
have been recorded in the Register by the Facility Agent as provided in this
Clause.  Any Lender may at any time
pledge or assign a security interest in all or any of its rights under this
Agreement (i) to secure obligations of such Lender to a Federal Reserve Bank
and (ii) in connection with any securitization of any portfolio loans of such
Lender, in each case without the prior written consent of any person; provided
that no such pledge or assignment of a security interest shall release a Lender
from any of its obligations hereunder or substitute any such pledgee or
assignee for such Lender as a party hereto.

 

27

 

SECTION 4

 

REPAYMENT, PREPAYMENT AND
CANCELLATION

 

6.                                REPAYMENT

 

6.1                          Repayment of Loans

The Borrower
shall repay:

 

(a)                           Each Tranche A Loan on the Tranche A Maturity Date.

 

(b)                          (i) on each three
month anniversary of the Utilisation Date prior to the Final Maturity Date
(other than the last) an amount of each Tranche B Loan equal to  0.25% of the amount of that Tranche B Loan
advanced on the Utilisation Date, (ii) on the last three month anniversary of
the Utilisation Date prior to the Final Maturity Date, 50% of each Tranche B
Loan then outstanding and (iii) on the Final Maturity Date, 100% of each
Tranche B Loan then outstanding.

 

6.2                          Reborrowing

The Borrower
may not reborrow any part of the Facilities which is repaid.

 

7.                                PREPAYMENT AND CANCELLATION

 

7.1                          Illegality

If it becomes unlawful in any applicable
jurisdiction for a Lender to perform any of its obligations as contemplated by
this Agreement or to fund or maintain its participation in any Loan or if the
representation set out in Clause 18.14 (No Adverse Consequences) would not be true
in respect of any Lender on any date after the Utilisation Date:

 

(a)                           that Lender shall promptly notify the Facility Agent upon becoming
aware of that event;

 

(b)                          upon the Facility Agent notifying the Borrower, the Commitments of
that Lender will be immediately cancelled; and

 

(c)                           the Borrower shall repay that Lender’s participation in the Loans
made to the Borrower on the last day of the Interest Period for each Loan
occurring after the Facility Agent has notified the Borrower or, if earlier,
the date specified by the Lender in the notice delivered to the Facility Agent
(provided that the Borrower shall not be required to repay that Lender’s
participation more than three months earlier than the last day of any
applicable grace period permitted by law).

 

7.2                          Change of control

If a Change of
Control occurs:

 

(a)                           the Company shall promptly notify the Facility Agent upon becoming
aware of that event;

 

(b)                          if the Majority Lenders so require, the Facility Agent shall, by not
less than 5 days notice to the Company, cancel the Facilities and declare all
outstanding Loans,

 

28

 

together with accrued interest, and all other
amounts accrued under the Facility Documents immediately due and payable,
whereupon the Facilities will be cancelled and all such outstanding amounts
will become immediately due and payable.

 

7.3                          Disposals

The Company and the Borrower shall procure
that an amount equal to Disposal Proceeds (other than Excluded Proceeds)
received by the Company or a Subsidiary are applied in accordance with Clause
7.9 (Application
of Disposal Proceeds) provided that an amount equal to Disposal
Proceeds shall not be required to be so applied to the extent that (i) such
Disposal Proceeds were received in respect of a Disposal of tangible assets and
are reinvested as soon as practicable (but in any event reinvested within 180
days after receipt or agreed to be reinvested within such period and actually
reinvested after a further 180 day period) in productive assets (ii) pending
such reinvestment, such Disposal Proceeds are to be held in a Cash Collateral
Account and (iii) the aggregate amount of such Disposal Proceeds do not exceed
$10,000,000 or such higher number as the Majority Lenders may agree.  If part of the Disposal Proceeds of any
Disposal is not received in cash, such part shall only be subject to
application in accordance with this Clause 7.3 when all or any portion thereof
is received in or converted into cash, whereupon such cash shall be applied in
accordance with the foregoing provisions of this Clause 7.3.

 

7.4                          Excess Cash Flow

The Company and the Borrower shall procure
that, on or before the date falling five Borrower Business Days after the
delivery of the annual audited financial statements of the Company for each
financial year, an amount equal to 50% of any Excess Cash Flow will be applied
in permanent prepayment, if any Loan is outstanding, or cancellation if no Loan
has been made, in accordance with Clause 7.8 (Application of Prepayment or
Cancellation).

 

7.5                          Insurance Proceeds

The Company and the Borrower shall procure
that an amount equal to any Insurance Proceeds received by the Company or any
Subsidiaries is applied in permanent prepayment, if any Loan is outstanding, or
cancellation if no Loan has been made in accordance with Clause 7.8 (Application
of Prepayment or Cancellation), provided that, Insurance Proceeds
shall not be required to be so applied to the extent that (i) such Insurance
Proceeds are reinvested as soon as practicable (but in any event reinvested
within 180 days after receipt or agreed to be reinvested within such period and
actually reinvested after a further 180 day period) in assets of a similar type
to those in respect of which the Insurance Proceeds were received or in the
restoration or repair of such assets and (ii) pending such reinvestment
restoration or repair, such Insurance Proceeds are to be held in a Cash
Collateral Account.

 

7.6                          Equity

The Company
and the Borrower shall procure that an amount equal to 100%, or to the extent
that the Tranche A Loans have been repaid in full, 50% of the net proceeds of
the issue of any Equity Interests or Equity Rights (other than the Rights
Issue) received by the Company are applied in permanent prepayment, if any Loan
is outstanding, or cancellation if no Loan has been made, in accordance with
Clause 7.8 (Application
of Prepayment or Cancellation).

 

29

 

7.7                          Debt

The Company
and the Borrower shall procure that an amount equal to 100%, or to the extent
that the Tranche A Loans have been repaid in full, 50% of the proceeds of any
capital markets debt instruments or any other form of Financial Indebtedness
received by any member of the Group after the date of this Agreement (other
than the Permitted Financial Indebtedness (other than item (c) in the
definition thereof)) is applied in permanent prepayment, if any Loan is
outstanding, or cancellation if no Loan has been made, in accordance with
Clause 7.8 (Application
of Prepayment or Cancellation).

 

7.8                          Application of Prepayment or Cancellation

Any amount to
be applied in permanent repayment or cancellation pursuant to Clauses 7.4 (Excess Cash
Flow), 7.5 (Insurance Proceeds), 7.6 (Equity)
and 7.7 (Debt)
shall be applied in permanent repayment of the Loans in accordance with Clause
7.10 (Cash
Collateral Account) or if no Loan is outstanding, in cancellation of
the Facilities pro rata as between the Tranche A Loans and the Tranche B Loans
or the Tranche A Facilities and the Tranche B Facilities, as the case may be,
to the extent that Lenders under the Tranche B Facilities have not waived their
right to prepayment or cancellation, in which case any amounts so waived will
be applied to prepay the Tranche A Loans or cancel the Tranche A Facilities,
provided that if the Tranche A Loans have been repaid in full or if the Tranche
A Facilities have been cancelled in full, the Lenders under the Tranche B
Facilities shall have no such right to waive such prepayment or cancellation.

 

7.9                          Application of Disposal Proceeds

Notwithstanding
Clause 7.8 (Application
of Prepayment or Cancellation), an amount equal to all Disposal
Proceeds shall be applied in permanent repayment of the Tranche A Loans or, if
no Tranche A Loans have been made, in cancellation of the Tranche A Facilities,
or, to the extent that the Tranche A Loans have been repaid or cancelled in
full, in permanent repayment of the Tranche B Loans or , if no Tranche B Loans
have been made, in permanent cancellation of the Tranche B Facilities.

 

7.10                    Cash Collateral Account

Subject to
Clause 7.15 (Waiver of Prepayment and Cancellation), an amount equal to
any amount to be applied in prepayment in accordance with this Clause 7 (Prepayment
and Cancellation), unless the Borrower requests the same to be
applied at an earlier date (in which case Break Costs may be payable) must be
applied on the last Business Day of the current Interest Period of the Loan
which is to be prepaid.  Pending any
such prepayment, the relevant amount shall be credited to a Cash Collateral
Account within 3 Borrower Business Days of the receipt of such amount by the
relevant member of the Group or in the case of amounts payable under Clause 7.4
(Excess
Cash Flow) within 3 Borrower Business Days of the date referred to
in that Clause.  The Facility Agent is
hereby authorised to apply amounts standing to the credit of a Cash Collateral
Account in making the relevant prepayment on the last Business Day of the
relevant Interest Period or, in the case of Disposal Proceeds or Insurance
Proceeds referred to in Clause 7.3(i) (Disposals), or Clause 7.5(i) (Insurance
Proceeds) on the last Business Day of the relevant Interest Period
falling after 180 days or, if appropriate in accordance with Clause 7.3 (i) (Disposals)
or Clause 7.5 (i) (Insurance Proceeds) 360 days after receipt if such Disposal
Proceeds

 

30

 

or Insurance
Proceeds have not been reinvested on that date in accordance with Clause 7.3(i)
(Disposals)
or 7.5(i) (Insurance
Proceeds).

 

7.11                    Voluntary prepayment of Loans

(a)                           The Borrower may, if it gives the Facility Agent not less than 3
Business Days (or such shorter period as the Majority Lenders may agree) prior
notice, prepay the whole or any part of any Loan (but, if in part, being an
amount that reduces the amount of a Loan (whether or not denominated in
dollars) by a minimum amount of $5,000,000 and an integral multiple of
$1,000,000 unless made together with a mandatory prepayment under Clauses 7.3
to 7.7) (or the dollar equivalent amounts in euros by reference to the Facility
Agent’s spot rate of exchange on the Business Day preceding the prepayment
date).

 

(b)                          Any prepayment under this Clause 7.11 shall satisfy the obligations
under Clause 6.1 (Repayment of Loans) and shall be applied pro rata as between
the Tranche A Loans and the Tranche B Loans, to the extent Lenders under the
Tranche B Loans have not waived their right to prepayment, in which case any
amounts so waived will be applied to prepay the Tranche A Loans, provided that
if the Tranche A Loans has been repaid in full, the Lenders under the Tranche B
Loans shall have no such right to waive any payment.

 

7.12                    Application between the Dollar Facilities and Euro
Facilities

(a)                           Any amounts prepaid or cancelled in accordance with this Clause 7
shall:

 

(i)                               for prepayments or cancellation of the Tranche A Loans or Tranche A
Facilities, prepay or cancel, as the case may be, the Tranche A Dollar Loan and
the Tranche A Euro Loan or the Tranche A Dollar Facility and the Tranche A Euro
Facility pro rata,

 

(ii)                            for prepayments or cancellation of the Tranche B Loans or the
Tranche B Facilities, prepay or cancel, as the case may be, Tranche B Dollar
Loan and Tranche B Euro Loan or the Tranche B Dollar Facility and the Tranche B
Euro Facility pro rata,

 

and for the purposes of determining any pro
rata prepayment or cancellation in accordance with this Clause 7, any amount to
be repaid or converted which is not denominated in dollars will be converted to
dollars by the Facility Agent at its prevailing spot rate and the Facility
Agent shall determine the dollar equivalent of the Euro Facilities or the Euro
Loans, as the case may be, using its spot rate prevailing on the date of this
Agreement.

 

(b)                          On or promptly after the date of this Agreement, the Facility Agent
shall notify the Company of the amount in Dollars at the spot rate referred to
in sub-Clause 7.12(a)(ii) of the Tranche A Euro Loan and the Tranche B Euro
Loan.

 

(c)                           The Borrower shall make any prepayment of any Loan in the currency
of that Loan and in the amount determined in accordance with Clause 7.12(a).

 

7.13                    Right of repayment and cancellation in relation to a
single Lender

(a)                           If:

 

31

 

(i)                                         any sum payable to any Lender by an Obligor is required to be
increased under paragraph (c) of Clause 12.2 (Tax gross-up); or

 

(ii)                                      any Lender claims indemnification from the Company under Clause 12.3
(Tax
indemnity) or Clause 13.1 (Increased costs); or

 

(iii)                                   any Lender notifies the Facility Agent of its Additional Cost Rate
under paragraph 3 of Schedule 4 (Mandatory Cost Formula),

 

the Company
may, whilst (in the case of paragraphs (i) and (ii) above) the circumstance
giving rise to the requirement or indemnification continues or (in the case of
paragraph (iii) above) that Additional Cost Rate is greater than zero, give the
Facility Agent notice of cancellation of the Commitment of that Lender and its
intention to procure the repayment of that Lender’s participation in the Loans.

 

(b)                          On receipt of a notice referred to in paragraph (a) above, the
Commitment of that Lender shall immediately be reduced to zero.

 

(c)                           On the last day of each Interest Period which ends after the Company
has given notice under paragraph (a) above (or, if earlier, the date specified
by the Company in that notice), the Borrower shall pay or procure the repayment
of that Lender’s participation in any Loan outstanding.

 

7.14                    Restrictions

(a)                           Any notice of cancellation or prepayment given by any Party under
this Clause 7 shall be irrevocable and, unless a contrary indication appears in
this Agreement, shall specify the date or dates upon which the relevant
cancellation or prepayment is to be made and the amount of that cancellation or
prepayment.

 

(b)                          Any prepayment under this Agreement shall be made together with
accrued interest on the amount prepaid and, subject to any Break Costs, without
premium or penalty.

 

(c)                           The Borrower shall not repay or prepay all or any part of the Loans
or cancel all or any part of the Commitments except at the times and in the
manner expressly provided for in this Agreement or otherwise with the consent
of the Facility Agent.

 

(d)                          No amount of the Total Commitments cancelled under this Agreement
may be subsequently reinstated.

 

(e)                           If the Facility Agent receives a notice under this Clause 7 it shall
promptly forward a copy of that notice to either the Company or the affected Lender,
as appropriate.

 

7.15                    Waiver of Prepayment and Cancellation

(a)                           As soon as reasonably practicable after the Company or any of its
Subsidiaries becomes aware that it is or is likely to be required to make a
prepayment or a cancellation under Clause 7.4 (Excess  Cash  Flow), Clause 7.5 (Insurance
Proceeds),
Clause 7.6 (Equity)
or Clause 7.7 (Debt) the Company shall promptly notify the Facility Agent
of the expected prepayment or cancellation and its date and amount.

 

32

 

(b)                          On receipt by the Facility Agent of the notice from the Company
referred to  in (a) above, the Facility
Agent shall promptly notify the Lenders of the contents of that notice.

 

(c)                           If a Lender wishes to exercise its right to waive the prepayment or
cancellation pursuant to Clause 7.8 (Application of Prepayment or Cancellation),
it shall deliver a waiver notice (“Waiver  Notice”) to the Facility Agent within 10
Business Days of delivery to the Lenders of a notice from the Facility Agent
under (b) above.

 

(d)                          If a Waiver Notice is not received by the Facility Agent from a
Lender within 10 Business Days of the delivery to the Lenders of a notice
referred to in (b) above, that Lender will be treated, for the purposes of
Clause 7.8 (Application
of Prepayment or Cancellation) to have not waived its right to waive
prepayment of its Tranche B Loans or cancellation of its Tranche B Loans.

 

(e)                           If any amount would otherwise be required to be applied by the
Facility Agent in prepayment of the Loans pursuant to Clause 7.10 (Cash
Collateral
Account)
prior to the date falling 13 Business Days after the delivery by the Facility
Agent of the notice relating to that payment under (b) above, that amount shall
be retained in the Cash Collateral Account and shall be applied by the Facility
Agent in repayment of the Loans on the last Business Day of the Interest Period
of the Loan which is to be repaid which ends on a date falling more than 13
Business Days after the delivery of that notice (and, if such Loans are less
than the amount to be so applied, the balance of the amount to be so applied
will be retained in the Cash Collateral Account and applied on the last
Business Day of the next succeeding Interest Periods of the Loan which is to be
repaid until the amount to be so applied has been applied in full).

 

33

 

SECTION 5

 

COSTS OF
UTILISATION

 

8.                                INTEREST

 

8.1                          Calculation of interest

The rate of interest on each Loan for each
Interest Period is the percentage rate per annum which is the aggregate of the
applicable:

 

(a)                           Margin;

 

(b)                          LIBOR or, alternatively in the case of Dollar Loans owed to Lenders
with a Facility Office in the United States of America, if the Borrower so
elects, the Prime Rate; and

 

(c)                           Mandatory Cost, if any.

 

The rate of
interest on each Loan shall be net of any Tax that is required to be deducted
or withheld under the laws of Switzerland. 
If any Obligor is required to deduct or withhold any such Tax in respect
of a payment of interest on a Loan, the rate of interest shall be increased,
with the applicable Tax being calculated based on the increased interest rate,
until the net rate payable is the same as would have been the case if no such
deduction or withholding had been required. 
If any such deduction or withholding is required, the relevant Obligor
shall provide any documentation needed for a refund of such Swiss Tax.

 

8.2                          Payment of interest

The Borrower
to which a Loan has been made shall pay accrued interest on that Loan on the
last day of each Interest Period (and, if the Interest Period is longer than
six Months, on the dates falling at six monthly intervals after the first day
of the Interest Period).

 

8.3                          Default interest

(a)                           If an Obligor fails to pay any amount payable by it under a Facility
Document on its due date, interest shall accrue on the overdue amount from the
due date up to the date of actual payment (both before and after judgement) at
a rate which, subject to paragraph (b) below, is two per cent. higher than the
rate which would have been payable if the overdue amount had, during the period
of non-payment, constituted a Loan in the currency of the overdue amount for
successive Interest Periods, each of a duration selected by the Facility Agent
(acting reasonably).  Any interest
accruing under this Clause 8.3 shall be immediately payable by the Obligor on
demand by the Facility Agent.

 

(b)                          If any overdue amount consists of all or part of a Loan which became
due on a day which was not the last day of an Interest Period relating to that
Loan:

 

(i)                                         the first Interest Period for that overdue amount shall have a
duration equal to the unexpired portion of the current Interest Period relating
to that Loan; and

 

34

 

(ii)                                      the rate of interest applying to the overdue amount during that
first Interest Period shall be 2 per cent. higher than the rate which would
have applied if the overdue amount had not become due.

 

(c)                           Default interest (if unpaid) arising on an overdue amount will be
compounded with the overdue amount at the end of each Interest Period
applicable to that overdue amount but will remain immediately due and payable.

 

8.4                          Notification of rates of interest

The Facility
Agent shall promptly notify, or arrange for the notification to, the Lenders
and the relevant Borrower of the determination of a rate of interest under this
Agreement.

 

9.                                INTEREST PERIODS

 

9.1                          Selection of Interest Periods

(a)                           The Borrower (or the Company on behalf of a Borrower) may select an
Interest Period for a Loan in the Utilisation Request for that Loan or (if the
Loan has already been borrowed) in a Selection Notice.

 

(b)                          Each Selection Notice for a Loan is irrevocable and must be
delivered to the Facility Agent by the Borrower (or the Company on behalf of a
Borrower) to which that Loan was made not later than the Specified Time.

 

(c)                           If a Borrower (or the Company) fails to deliver a Selection Notice
to the Facility Agent in accordance with paragraph (b) above, the relevant
Interest Period will be one Month.

 

(d)                          Subject to this Clause 9, the Borrower (or the Company) may select
an Interest Period of 1, 2, 3 or 6 Months or any other period agreed between
the Company and the Facility Agent (acting on the instructions of all the
Lenders) except that Interest Periods for Loans which are subject to interest
calculated by reference to LIBOR shall not be longer than 2 weeks (or any other
period agreed between the Company and Arranger) until the Arranger notifies the
Company and the Lenders (such notification to be given in the circumstances
agreed between the Arranger and the Company).

 

(e)                           An Interest Period for a Loan shall not extend beyond the Tranche A
Maturity Date, in the case of a Tranche A Loan or, in the case of a Tranche B
Loan, the Final Maturity Date.

 

(f)                             Each Interest Period for a Loan shall start on the Utilisation Date
or (if already made) on the last day of its preceding Interest Period.

 

9.2                          Non-Business Days

If an Interest
Period would otherwise end on a day which is not a Business Day, that Interest
Period will instead end on the next Business Day in that calendar month (if
there is one) or the preceding Business Day (if there is not).

 

9.3                          Consolidation and division of Loans

(a)                           Subject to paragraph (b) below, if two or more Interest Periods:

 

35

 

(i)                                         relate to Loans of the same currency and in the same Tranche; and

 

(ii)                                      end on the same date.

 

those Loans
will, unless the Borrower (or the Company on its behalf) specifies to the
contrary in the Selection Notice for the next Interest Period, be consolidated
into, and treated as, a single Loan on the last day of the Interest Period.

 

(b)                          Subject to Clause 4.3 (Maximum number of Loans) and Clause 5.3 (Currency and
amount),
if a Borrower (or the Company on its behalf) requests in a Selection Notice
that a Loan be divided into two or more Loans, that Loan will, on the last day
of its Interest Period, be so divided into the amounts specified in that
Selection Notice, being an aggregate amount equal to the amount of the Loan
immediately before its division.

 

10.                          CHANGES TO THE CALCULATION OF INTEREST

 

10.1                    Absence of quotations

Subject to
Clause 10.2 (Market disruption), if LIBOR is to be determined by
reference to the Reference Banks but a Reference Bank does not supply a
quotation by the Specified Time on the Quotation Day, the applicable LIBOR or
shall be determined on the basis of the quotations of the remaining Reference
Banks.

 

10.2                    Market disruption

(a)                           If a Market Disruption Event occurs in relation to a Loan for any
Interest Period, then the rate of interest on each Lender’s share of that Loan
for the Interest Period shall be the rate per annum which is the sum of:

 

(i)                                         the Margin;

 

(ii)                                      the rate notified to the Facility Agent by that Lender as soon as
practicable and in any event before interest is due to be paid in respect of
that Interest Period, to be that which expresses as a percentage rate per annum
the cost to that Lender of funding its participation in that Loan from whatever
source it may reasonably select; and

 

(iii)                                   the Mandatory Cost, if any, applicable to that Lender’s
participation in the Loan.

 

(b)                          In this Agreement “Market Disruption Event” means:

 

(i)                                         at or about noon on the Quotation Day for the relevant Interest
Period the Screen Rate is not available and none or only one of the Reference
Banks supplies a rate to the Facility Agent to determine LIBOR for dollars or
euros, as the case may be for the relevant Interest Period; or

 

(ii)                                      before close of business in London on the Quotation Day for the
relevant Interest Period, the Facility Agent receives notifications from a
Lender or Lenders (whose participations in a Loan exceed 40 per cent. of that
Loan) that the cost to it or them of obtaining matching deposits in the
Relevant Interbank Market would be in excess of  LIBOR.

 

36

 

10.3                    Alternative basis of interest or funding

(a)                           If a Market Disruption Event occurs and the Facility Agent or the
Company so requires, the Facility Agent and the Company shall enter into
negotiations (for a period of not more than thirty days) with a view to
agreeing a substitute basis for determining the rate of interest.

 

(b)                          Any alternative basis agreed pursuant to paragraph (a) above shall,
with the prior consent of all the Lenders and the Company, be binding on all
Parties.

 

10.4                    Break Costs

(a)                           The Borrower shall, within three Borrower Business Days of demand by
a Finance Party, pay to that Finance Party its Break Costs attributable to all
or any part of a Loan or Unpaid Sum being paid by that Borrower on a day other
than the last day of an Interest Period for that Loan or Unpaid Sum.

 

(b)                          Each Lender shall, as soon as reasonably practicable after a demand
by the Facility Agent, provide a certificate confirming the amount of its Break
Costs for any Interest Period in which they accrue.

 

11.                          FEES

 

11.1                    Commitment Fee

The Company
shall pay on the last day of the Availability Period to the Facility Agent (for
the account of each Lender) a commitment fee computed at the rate of 0.75% per
cent. per annum of the amount of the Commitments of that Lender on an actual
day count basis for the period from the date of this Agreement to the earlier
to occur of the Utilisation Date and the end of the Availability Period.  It is acknowledged that this Clause 11.1
replaces, for the period commencing on the date of this Agreement, the similar
obligations of the Company to pay the ticking fee pursuant to the Commitment
Letter and a Fee Letter entered into with the Arranger on September 13, 2002
referred to in Clause 11.2 (Arranger’s Fees) below.

 

11.2                    Arranger’s fees

The Company
shall pay to the Arranger (for its own account) an arrangement fee and, without
double counting, a ticking fee for the period ending on the date of this Agreement
in the amount and at the times agreed in a Fee Letter entered into with the
Arranger.

 

11.3                    Agency fees

(a)                           The Company shall pay to the Facility Agent (for its own account) a
facility agency fee in the amount and at the times agreed in a Fee Letter entered
into with the Facility Agent.

 

(b)                          The Company shall pay the Security Agent (for its own account) a
security agency fee in the amounts and at the times agreed in a Fee Letter
entered into with the Security Agent.

 

37

 

SECTION 6

ADDITIONAL PAYMENT
OBLIGATIONS

 

12.                          TAX GROSS UP AND INDEMNITIES

 

12.1                    Definitions

(a)                           In this Agreement:

 

“Protected
Party” means a Finance Party or New Lender that is or will be
subject to any liability, or required to make any payment, for or on account of
Tax in relation to a sum received or receivable (or any sum deemed for the
purposes of Tax to be received or receivable) under a Facility Document.

 

“Qualifying Recipient”, with respect to a
payment to be made by an Obligor pursuant to a Facility Document, means a
Recipient of the payment that:

 

(i)              is
the beneficial owner of the payment;

 

(ii)                                       (A) is a corporation incorporated or organised under the laws of the
United States of America or any state thereof (including the District of
Columbia);

 

(B) is entitled, under a double tax treaty,
to a full exemption from tax imposed by the United States of America on such
payment; or

 

(C) is otherwise entitled to receive such
payment without deduction or withholding of any United States federal income
tax; and

 

(iii)                                    has complied with any procedural requirements necessary to receive
such payment without deduction or withholding of any United States federal
income tax, including any necessary certifications with respect to treaty
benefits, and has caused each of its agents (including any Agent) through which
such payment is to be received to comply with any such procedural requirements.

 

“Recipient”
means a Finance Party or New Lender that is entitled to a payment to be made
pursuant to a Facility Document.

 

“Tax Credit”
means a credit against, relief or remission for, or repayment of any Tax.

 

“Tax
Deduction” means a deduction or withholding for or on account of Tax
from a payment to be made by an Obligor pursuant to a Facility Document.

 

“Tax Payment”
means either the increase in a payment made by an Obligor under Clause 12.2 (Tax gross-up)
or a payment under Clause 12.3 (Tax indemnity).

 

(b)                          Unless a contrary indication appears, in this Clause 12 a reference
to “determines” or “determined” means a determination made in the absolute
discretion of the person making the determination.

 

38

 

12.2                    Tax gross-up

(a)                           Each Obligor shall make all payments to be made by it pursuant to
the Facility Documents without any Tax Deduction, unless a Tax Deduction is
required by law.

 

(b)                          The Company shall promptly upon becoming aware that an Obligor must
make a Tax Deduction (or that there is any change in the rate or the basis of a
Tax Deduction) notify the Agent accordingly. 
Similarly, a Recipient shall promptly notify the Agent on becoming so
aware in respect of a payment payable to that Recipient.  If the Agent receives such notification from
a Recipient it shall notify the Company and that Obligor.

 

(c)                           Subject to paragraph (d) below, if a Tax Deduction is required by
law to be made by an Obligor, the amount of the payment due from that Obligor
shall be increased to an amount which (after making any Tax Deduction) leaves
an amount equal to the payment that would have been due if no Tax Deduction had
been required.

 

(d)                          An Obligor is not required to make an increased payment to a
Recipient under paragraph (c) above for a Tax Deduction in respect of U.S.
federal income tax, if on the date on which the payment falls due, the payment
could have been made without the Tax Deduction if the Recipient entitled to the
payment was a Qualifying Recipient, but on that date the Recipient is not a
Qualifying Recipient, unless such Recipient has ceased to be a Qualifying Recipient
as a result of any change, after the date it became entitled to any payment to
be made pursuant to the Facility Documents, in (or in the interpretation,
administration, or application of) any law or treaty, or any published practice
or concession of any relevant taxing authority.

 

(e)                           If an Obligor is required to make a Tax Deduction, that Obligor
shall make that Tax Deduction and any payment required in connection with that
Tax Deduction within the time allowed and in the minimum amount required by
law.

 

(f)                             Within thirty days of making either a Tax Deduction or any payment
required in connection with that Tax Deduction, the Obligor making that Tax
Deduction shall deliver to the Agent for the Recipient entitled to the payment
evidence reasonably satisfactory to the Recipient that the Tax Deduction has
been made or (as applicable) any appropriate payment paid to the relevant
taxing authority.

 

12.3                    Tax indemnity

(a)                           The Company shall (within three Borrower Business Days of demand by
the Agent) pay to a Protected Party an amount equal to the loss, liability, or
cost that the Protected Party determines will be or has been (directly or
indirectly) suffered for or on account of Tax by the Protected Party in respect
of a sum received or receivable (or deemed for the purposes of Tax to be
received or receivable) pursuant to a Facility Document.

 

(b)                          Paragraph (a) above shall not apply:

 

39

 

(i)                                          with respect to any Tax assessed on a Protected Party:

 

(A)                 under
the law of the jurisdiction in which the Protected Party is incorporated or, if
different, the jurisdiction (or jurisdictions) in which the Protected Party is
treated as resident for tax purposes; or

 

(B)                   under the law of the jurisdiction in which the Protected Party’s
Facility Office is located in respect of amounts received or receivable in that
jurisdiction,

 

if the Tax is imposed on or calculated by
reference to net income; or

 

(ii)                                       to the extent the loss, liability or cost:

 

(A)                 is
compensated for by an increased payment under Clause 12.2 (Tax gross-up); or

 

(B)                   would have been compensated for by an increased payment under Clause
12.2 (Tax
gross-up) but was not so compensated solely because  the exclusion in paragraph (d) of Clause
12.2 (Tax
gross-up) applied; or

 

(iii)                                   in the case of Tax imposed with respect to a payment made by an
Obligor pursuant to a Facility Document other than as an increased payment
under Clause 12.2 (Tax gross-up) or as an indemnity under
this Clause 12.3 (Tax  indemnity), to the extent the loss,
liability, or cost would not have arisen if the Protected Party were a
Qualifying Recipient with respect to the payment.

 

(c)                           A Protected Party making, or intending to make a claim under
paragraph (a) above shall promptly notify the Agent of the event which will
give, or has given, rise to the claim, following which the Agent shall notify
the Company.

 

(d)                          A Protected Party shall, on receiving a payment from an Obligor
under this Clause 12.3, notify the Agent.

 

12.4                    Tax Credit

If an Obligor makes a Tax Payment and the
relevant Recipient determines that:

 

(a)                           a Tax Credit is attributable either to an increased payment of which
that Tax Payment forms part, or to that Tax Payment; and

 

(b)                          that Recipient has obtained, utilised and retained that Tax Credit,

 

the Recipient
shall pay an amount to the Obligor that the Recipient determines will leave it
(after that payment) in the same after-Tax position as it would have been in
had the Tax Payment not been required to be made by the Obligor.

 

12.5                    Stamp taxes

The Company
shall pay and, within three Borrower Business Days of demand, indemnify each
Finance Party and New Lender against any cost, loss, or liability that the
Finance Party or New Lender incurs in relation to all stamp duty, registration,
and other similar Taxes payable in respect of any Facility Document.

 

40

 

12.6                    Value added tax

(a)                           All consideration expressed to be payable under a Facility Document
by any Party to a Finance Party or New Lender shall be deemed to be exclusive
of any VAT.  If VAT is properly
chargeable on any supply made by any Finance Party or New Lender to any Party
in connection with a Facility Document, that Party shall pay to the Finance
Party or New Lender (in addition to and at the same time as paying the
consideration) an amount equal to the amount of the VAT.

 

(b)                          Where a Facility Document requires any Party to reimburse a Finance
Party or New Lender for any costs or expenses, that Party shall also at the
same time pay and indemnify the Finance Party or New Lender against all VAT
incurred by the Finance Party or New Lender in respect of the costs or expenses
to the extent that the Finance Party or New Lender reasonably determines that
it is not entitled to credit or repayment of the VAT.

 

13.                          INCREASED COSTS

 

13.1                    Increased costs

(a)                           Subject to Clause 13.3 (Exceptions) the Company shall, within
three Borrower Business Days of a demand by the Agent, pay for the account of a
Finance Party the amount of any Increased Costs incurred by that Finance Party
or any of its Affiliates as a result of (i) the introduction of or any change
in (or in the interpretation, administration or application of) any law or
regulation or (ii) compliance with any law or regulation made after the date of
this Agreement.

 

(b)                          In this Agreement “Increased Costs” means:

 

(i)                                         a reduction in the rate of return from the Facilities or on a
Finance Party’s (or its Affiliate’s) overall capital;

 

(ii)                                      an additional or increased cost; or

 

(iii)                                   a reduction of any amount due and payable under any Facility
Document,

 

which is
incurred or suffered by a Finance Party or any of its Affiliates to the extent
that it is attributable to that Finance Party having entered into its
Commitment or funding or performing its obligations under any Facility
Document.

 

13.2                    Increased cost claims

(a)                           A Finance Party in its capacity as a party to a Facility Document
intending to make a claim pursuant to Clause 13.1 (Increased costs) shall
notify the Agent of the event giving rise to the claim, following which the
Agent shall promptly notify the Company.

 

(b)                          Each Finance Party in its capacity as a party to a Facility Document
shall, as soon as practicable after a demand by the Agent, provide a
certificate confirming the amount of its Increased Costs.

 

13.3                    Exceptions

(a)                           Clause 13.1 (Increased costs) does not apply to the
extent any Increased Cost is:

 

41

 

(i)                                         attributable to a Tax Deduction required by law to be made by an
Obligor;

 

(ii)                                      compensated for by Clause 12.3 (Tax indemnity)  (or would have been
compensated for under Clause 12.3 (Tax indemnity) but was not so compensated
solely because any of the exclusions in paragraph (b) of Clause 12.3 (Tax
indemnity) applied);

 

(iii)                                   compensated for by the payment of the Mandatory Cost; or

 

(iv)                                  attributable to the wilful breach by the relevant Finance Party or
its Affiliates of any law or regulation.

 

(b)                          In this Clause 13.3, a reference to a “Tax Deduction” has the same
meaning given to the term in Clause 12.1 (Definitions).

 

14.                          OTHER INDEMNITIES

 

14.1                    Currency indemnity

(a)                           If any sum due from an Obligor under the Facility Documents (a “Sum”),
or any order, judgement or award given or made in relation to a Sum, has to be
converted from the currency (the “First Currency”) in which that Sum is
payable into another currency (the “Second Currency”) for the purpose of:

 

(i)                                         making or filing a claim or proof against that Obligor;

 

(ii)                                      obtaining or enforcing an order, judgement or award in relation to
any litigation or arbitration proceedings,

 

that Obligor
shall as an independent obligation, within three Business Days of demand,
indemnify each Finance Party to whom that Sum is due against any cost, loss or
liability arising out of or as a result of the conversion including any
discrepancy between (A) the rate of exchange used to convert that Sum from the
First Currency into the Second Currency and (B) the rate or rates of exchange
available to that person at the time of its receipt of that Sum.

 

(b)                          Each Obligor waives any right it may have in any jurisdiction to pay
any amount under the Facility Documents in a currency or currency unit other
than that in which it is expressed to be payable.

 

14.2                    Other indemnities

The Company shall (or shall procure that an
Obligor will), within three Borrower Business Days of demand, indemnify each
Finance Party against any cost, loss or liability incurred by that Finance
Party in its capacity as a party to a Facility Document as a result of:

 

(a)                           the occurrence of any Event of Default;

 

(b)                          a failure by an Obligor to pay any amount due under a Facility
Document on its due date, including without limitation, any cost, loss or
liability arising as a result of Clause 27 (Sharing among the Finance Parties);

 

42

 

(c)                           funding, or making arrangements to fund, its participation in a Loan
requested by a Borrower in the Utilisation Request but not made by reason of
the operation of any one or more of the provisions of this Agreement (other
than by reason of default or negligence by that Finance Party alone); or

 

(d)                          a Loan (or part of a Loan) not being prepaid in accordance with a
notice of prepayment given by a Borrower or the Company.

 

14.3                    Indemnity to the Agent

The Company shall promptly indemnify, or
shall procure the indemnification of, in each case, an Agent against any cost,
loss or liability incurred by that Agent (acting reasonably) as a result of:

 

(a)                           investigating any event which it reasonably believes is a Default;
or

 

(b)                          acting or relying on any notice, request or instruction which it
reasonably believes to be genuine, correct and appropriately authorised.

 

14.4                    Environmental Indemnity

The Company
shall (or shall procure that an Obligor will), within five Borrower Business
Days of demand, indemnify each Finance Party in its capacity as a party to a
Facility Document against any cost, loss or liability actually incurred by that
Finance Party as a result of:

 

(a)                           any breach of an environmental representation and warranty or
environmental covenant in this Agreement;

 

(b)                          any Environmental Claim relating to the Company, any of its
Subsidiaries, or their businesses, activities or properties or to this
Agreement;

 

(c)                           any failure of the Company or a Subsidiary to comply with any
applicable Environmental Law or Environmental Permit;

 

(d)                          any Release or presence of Hazardous Material or any Remedial Action
at any property now or previously owned, leased or operated by the Company or
any of its Subsidiaries; or

 

(e)                           any other Environmental Liability to the extent arising out of the
operations of the Company or its Subsidiaries.

 

provided that
the Company and its Subsidiaries shall have no responsibility hereunder for any
cost, liability or loss incurred by any Finance Party or its successors,
assigns, agents or representatives caused by any of the gross negligence or
wilful misconduct of any such Finance Party or its successors, assigns,
representatives or agents; and provided further, the Company and its
Subsidiaries shall have no liability hereunder for any violations or the
presence or Release of Hazardous Materials that first occur at a Company or its
Subsidiary property after foreclosure, deed-in-lieu of the closure or similar
transfer unless caused by Company or its Subsidiary.

 

43

 

15.                          MITIGATION BY THE LENDERS

 

15.1                    Mitigation

(a)                           Each Finance Party shall, in consultation with the Company, take all
reasonable steps to mitigate any circumstances which arise and which would
result in any amount becoming payable under or pursuant to, or cancelled
pursuant to, any of Clause 7.1 (Illegality), Clause 12 (Tax gross-up
and indemnities), Clause 13 (Increased costs) or paragraph 3 of
Schedule 4 (Mandatory
Cost Formula) including (but not limited to) transferring its rights
and obligations under the Finance Documents to another Affiliate or Facility
Office.

 

(b)                          Paragraph (a) above does not in any way limit the obligations of any
Obligor under the Finance Documents.

 

15.2                    Limitation of liability

(a)                           The Company shall indemnify each Finance Party for all costs and
expenses reasonably incurred by that Finance Party as a result of steps taken
by it under Clause 15.1 (Mitigation).

 

(b)                          A Finance Party is not obliged to take any steps under Clause 15.1 (Mitigation)
if, in the opinion of that Finance Party (acting reasonably), to do so might be
prejudicial to it.

 

16.                          COSTS AND EXPENSES

 

16.1                    Transaction expenses

The Company shall promptly on demand pay the
Facility Agent, the Security Agent and the Arranger the amount of all properly
documented costs and expenses (including legal fees) reasonably incurred and
provided within any caps agreed by any of them in connection with the
negotiation, preparation, printing, execution and syndication of:

 

(a)                           this Agreement and any other documents referred to in this
Agreement;

 

(b)                          any other Finance Documents executed after the date of this
Agreement; and

 

(c)                           provided that the legal fees payable by the Company, in respect of
the Working Capital Facility Agreements and Hedging Agreements be limited to
the review of those agreements.

 

16.2                    Amendment costs

If (a) an
Obligor requests an amendment, waiver or consent or (b) an amendment is
required pursuant to Clause 28.9 (Change of currency), the Company shall,
within three Borrower Business Days of demand, reimburse the Facility Agent for
the amount of all properly documented costs and expenses (including legal fees)
reasonably incurred by the Facility Agent in responding to, evaluating,
negotiating or complying with that request or requirement.

 

16.3                    Enforcement costs

The Company
shall, within three Borrower Business Days of demand, pay to each Finance Party
the amount of all properly documented costs and expenses (including

 

44

 

legal fees)
incurred by that Finance Party in connection with the enforcement of, or the
preservation of any rights under, any Facility Document.

 

16.4                    Mortgage recording taxes

The Company
shall pay or cause to be paid to the relevant authorities all mortgage
recording or other taxes or fees due in connection with, and as set forth in
the Mortgages.

 

45

 

SECTION 7

GUARANTEE

 

17.                          GUARANTEE AND INDEMNITY

 

17.1                    Guarantee and indemnity

Each Guarantor irrevocably and
unconditionally jointly and severally:

           

(a)                           guarantees to each Finance Party punctual performance by each other
Obligor of all that Obligor’s obligations under the Finance Documents;

 

(b)                          undertakes with each Finance Party that whenever any other Obligor
does not pay any amount when due under or in connection with any Finance
Document, that Guarantor shall immediately on demand pay that amount as if it
was the principal obligor; and

 

(c)                           indemnifies each Finance Party immediately on demand against any
cost, loss or liability suffered by the Finance Party if any obligation
guaranteed by it is or becomes unenforceable, invalid or illegal.  The amount of the cost, loss or liability
shall be equal to the amount which that Finance Party would otherwise have been
entitled to recover.

 

17.2                    Continuing guarantee

This guarantee
is a continuing guarantee and will extend to the ultimate balance of sums
payable by any Obligor under the Finance Documents, regardless of any
intermediate payment or discharge in whole or in part.

 

17.3                    Reinstatement

If any payment by an Obligor or any discharge
given by a Finance Party (whether in respect of the obligations of any Obligor
or any security for those obligations or otherwise) is avoided or reduced as a
result of insolvency or any similar event:

 

(a)                           the liability of each Obligor shall continue as if the payment,
discharge, avoidance or reduction had not occurred; and

 

(b)                          each Finance Party shall be entitled to recover the value or amount
of that security or payment from each Obligor, as if the payment, discharge,
avoidance or reduction had not occurred.

 

17.4                    Waiver of defences

The obligations of each Guarantor under this
Clause 17 will not be affected by an act, omission, matter or thing which, but
for this Clause, would reduce, release or prejudice any of its obligations
under this Clause 17 (without limitation and whether or not known to it or any
Finance Party) including:

 

(a)                           any time, waiver or consent granted to, or composition with, any Obligor
or other person;

 

(b)                          the release of any other Obligor or any other person under the terms
of any composition or arrangement with any creditor of any member of the Group;

 

46

 

(c)                           the taking, variation, compromise, exchange, renewal or release of,
or refusal or neglect to perfect, take up or enforce, any rights against, or
security over assets of, any Obligor or other person or any non-presentation or
non-observance of any formality or other requirement in respect of any
instrument or any failure to realise the full value of any security;

 

(d)                          any incapacity or lack of power, authority or legal personality of
or dissolution or change in the members or status of an Obligor or any other
person;

 

(e)                           any amendment (however fundamental) or replacement of a Finance
Document or any other document or security;

 

(f)                             any unenforceability, illegality or invalidity of any obligation of
any person under any Finance Document or any other document or security; or

 

(g)                          any insolvency or similar proceedings.

 

17.5                    Immediate recourse

Each Guarantor
waives any right it may have of first requiring any Finance Party (or any
trustee or agent on its behalf) to proceed against or enforce any other rights
or security or claim payment from any person before claiming from that
Guarantor under this Clause 17.  This
waiver applies irrespective of any law or any provision of a Finance Document
to the contrary.

 

17.6                    Appropriations

Until all amounts which may be or become
payable by the Obligors under or in connection with the Finance Documents have
been irrevocably paid in full, each Finance Party (or any trustee or agent on
its behalf) may, if to do so is reasonable in the circumstances and an Event of
Default is continuing:

 

(a)                           refrain from applying or enforcing any other moneys, security or
rights held or received by that Finance Party (or any trustee or agent on its
behalf) in respect of those amounts, or apply and enforce the same in such
manner and order as it sees fit (whether against those amounts or otherwise)
and no Guarantor shall be entitled to the benefit of the same; and

 

(b)                          hold in an interest-bearing suspense account any moneys received
from any Guarantor or on account of any Guarantor’s liability under this Clause
17.

 

17.7                    Deferral of Guarantors’ rights

Until all amounts which may be or become
payable by the Obligors under or in connection with the Facility Documents have
been irrevocably paid in full and unless the Security Agent otherwise directs,
no Guarantor will exercise any rights which it may have by reason of
performance by it of its obligations under the Facility Documents:

 

(a)                           to be indemnified by an Obligor;

 

(b)                          to claim any contribution from any other guarantor of any Obligor’s
obligations under the Facility Documents; and/or

 

47

 

(c)                           to take the benefit (in whole or in part and whether by way of
subrogation or otherwise) of any rights of the Finance Parties under the
Finance Documents or of any other guarantee or security taken pursuant to, or
in connection with, the Finance Documents by any Finance Party.

 

17.8                    Additional security

This guarantee
is in addition to and is not in any way prejudiced by any other guarantee or
security now or subsequently held by any Finance Party.

 

17.9                    Limitations in relation to Italy

For the
avoidance of doubt, the provisions set forth under Sections 17.1 through 17.8
above do not apply to the Italian Pledge. 
Under Italian law, the Italian Pledge is a third party pledge (pegno a
favore di terzo) pursuant to which the Company secures any and all
the obligations of the Borrower under the Finance Documents.

 

17.10              Limitations of obligations with regard to guarantors
having their corporate seat in Switzerland other than the Company (“Swiss
Guarantors”)

(a)                           The obligations, liabilities or undertakings of each Swiss Guarantor
pursuant to this Agreement and any security interest over the respective Swiss
Guarantor’s obligations, liabilities or undertakings, and accordingly the
amount recoverable under this Agreement or any agreement creating a security
interest with regard to such obligations, liabilities or undertakings, shall be
limited to the maximum amount of the respective Swiss Guarantor’s profits
available for distribution as dividends at the time the respective Swiss
Guarantor’s obligations fall due respectively the collateral provided by the
respective Swiss Guarantor is enforced (being the balance sheet profits and any
reserves available for the purpose in each case in accordance with Article 675
para 2 and Article 671 para 1-3 of the Swiss Code of Obligations);

 

(b)                          If and to the extent, at the time payment from a Swiss Guarantor is
demanded, such payment is subject to the limitations pursuant to paragraph (a)
above then such payment shall be determined on the basis of (i) an interim
balance sheet of the Swiss Guarantor to the extent required by Swiss corporate
law; and (ii) confirmation by the auditors that they have examined this interim
balance sheet and that the requested payment is in conformity with applicable
Swiss corporate laws protecting share capital and legal reserves to the extent
they are not freely available and with the accounting standards applied by the
auditors for the time being of the relevant Swiss Guarantor;

 

(c)                           Subject to the extent required by applicable law in force at the
relevant time any Swiss Guarantor which is required to make a payment under
this Clause 17 (Guarantee and Indemnity) may:

 

(i)                                         deduct Swiss Withholding Tax at the rate of 35 per cent, or such
rate as is in force from time to time, from any payment under Clause 17 (Guarantee
and Indemnity);

 

(ii)                                      pay any such deduction mentioned in paragraph (i) above, to the
Swiss Federal Tax Administration; and

 

48

 

(iii)                                   notify (or procure that the Company or the Borrower notifies) the
Facility Agent that such a deduction has been made and provide the Facility
Agent with the required evidence.

 

To the extent such a deduction is made, any
Swiss Guarantor shall not be obliged to either gross-up or indemnify (or
otherwise hold harmless) the Finance Parties in relation to any such deduction
or payment.

 

(d)                          Any beneficiary of a payment by a Swiss Guarantor under Clause 17 (Guarantee
and Indemnity) shall:

 

(i)                                         as soon as possible request a refund of the Swiss Withholding Tax
paid by the relevant Swiss Guarantor under the applicable Swiss Tax law; and

 

(ii)                                      pay to the Finance Parties upon receipt any amount refunded pursuant
to (i) above.

 

17.11              Limitations in relation to Germany

The
obligations of any Guarantor that is organised in the form of a German limited
liability company (Gesellschaft mit beschränkter Haftung) or
a German limited partnership (Kommanditgesellschaft) shall be subject to
the limitations imposed by Section 30 of the German Act on Limited Liability
Companies (Gesetz
betreffend die Gesellschaften mit beschränkter Haftung) or Section
172a of the German Commercial Code (Handelsgesetzbuch), respectively.  Whenever relevant, any such Guarantor shall promptly
provide corresponding evidence to the Security Agent and fully cooperate with
the Security Agent in enabling it to review, including through the engagement
by the Security Agent of an auditing firm of recognised standing whose
determinations shall absent manifest error be binding upon all parties hereto,
the applicability of such code provisions. 
Whenever the balance sheet ratios of any such Guarantor are such that
these code provisions may become applicable, such Guarantor shall be obligated
to promptly realise, to the extent legally permissible and commercially
justifiable, any and all of its assets that are shown in its balance sheet with
a book value that is significantly lower than the market value of such asset
and that are not required for such Guarantor’s business (betriebsnotwendig).

 

17.12              Limitations in relation to Austria

None of the
obligations of Sulzer Orthopädie GmbH pursuant to this Clause 17 (Guarantee
and Indemnity) shall be construed to create any obligation of Sulzer
Orthopädie GmbH to act in violation of the mandatory Austrian Capital
Maintenance Rules (“Kapitalerhaltungsvorschriften”) pursuant to Austrian
Company Law, in particular sections 82 et seq. of the Austrian Act on Limited
Liability Companies (“Gesetz uber Gesellschaften mit beschränkter Haftung”) and
all obligations of Sulzer Orthopädie GmbH under this Guarantee shall be limited
in accordance with those rules.

 

17.13              Limitations in relation to France

The
obligations and liabilities of each Obligor which is incorporated in France as
Guarantor under this Agreement shall be limited to and are assumed in
consideration of the actual corporate benefit resulting for it as a consequence
of the execution by it of this Agreement, and the transactions contemplated by
this Agreement.

 

49

 

17.14              Limitations in relation to the Netherlands

The
obligations of any Obligor incorporated in the Netherlands (the “Dutch
Guarantor”) under this Clause 17 (Guarantee and Indemnity) (the “Dutch Guarantee)
shall not exceed the maximum amount which the Dutch Guarantor can guarantee
under Dutch law, having regard to its corporate interest (vennootschappelijk belang).  If, in response to a demand under the Dutch
Guarantee, the Dutch Guarantor were to claim that the amounts so claimed could
not be guaranteed under the Dutch Guarantee without its corporate interest
being exceeded, the Finance Parties shall have the right to reduce their claims
under the Dutch Guarantee to such amount which the Dutch Guarantor could
guarantee under the Dutch Guarantee without violating its corporate interest,
and the Dutch Guarantee shall be deemed limited to such amount.

 

17.15              Joint Creditorship

(a)                           Each of the Obligors and each of the Finance Parties agree that the
Security Agent shall be the joint creditor of each and every obligation of any
Obligor towards each of the Finance Parties under the Finance Documents
(together with such Finance Party) and that accordingly the Security Agent will
have its own independent right to demand performance by the relevant Obligor of
those obligations.  However, any
discharge of any such obligation to the Security Agent or the relevant Finance
Party shall, to the same extent, discharge the corresponding obligation owing
to the other.

 

(b)                          Without limiting or affecting the Security Agent’s rights against
any Obligor (whether under this paragraph or under any other provision of the
Finance Documents), the Security Agent agrees with each other Finance Party (on
a several and divided basis) that, subject as set out in the next sentence, it
will not exercise its rights as a joint creditor with a Finance Party except
with the consent of such Finance Party. 
However, for the avoidance of doubt, nothing in the previous sentence
shall in any way limit the Security Agent’s right to act in the protection or
preservation of rights under or to enforce any Security Documents as
contemplated by this Agreement, the other Finance Documents and/or any Security
Document (or to do any act reasonably incidental to any of the foregoing).

 

50

 

SECTION 8

REPRESENTATIONS, UNDERTAKINGS AND EVENTS
OF DEFAULT

 

18.                            REPRESENTATIONS

Each Obligor
makes the representations and warranties set out in this Clause 18 to each Finance
Party in its capacity as a party to the Facility Documents on the date of this
Agreement.

 

18.1                    Status

(a)                           It is a corporation, duly incorporated and validly existing under
the law of its jurisdiction of incorporation.

 

(b)                          It and each of its Subsidiaries has the power to own its assets and
carry on its business as it is being conducted.

 

18.2                    Binding obligations

The
obligations expressed to be assumed by it in each Finance Document are, subject
to any general principles of law limiting its obligations which are
specifically referred to in any legal opinion delivered pursuant to Clause 4 (Conditions
of Utilisation) or Clause 24 (Changes to the Obligors), legal, valid,
binding and enforceable obligations, and each Security Document is effective to
create a legal, valid, binding and enforceable security interest in the
Security intended to be created thereunder, subject to any reservations
specifically referred to in any legal opinions delivered pursuant to Clause 4 (Conditions
of Utilisation) or Clause 24 (Changes to the Obligors).

 

18.3                    Non-conflict with other obligations

The entry into and performance by it of, and
the transactions contemplated by, the Finance Documents do not and will not
conflict with, require consent under or, if applicable, create a default under:

 

(a)                           any law or regulation applicable to it or its Subsidiaries in any
material respect;

 

(b)                          its or any of its Subsidiaries’ constitutional documents such as
could have a Material Adverse Effect; or

 

(c)                           any agreement or instrument binding upon it or any of its
Subsidiaries such as could have a Material Adverse Effect

 

and do not oblige it or any of its
Subsidiaries to create any security or grant any guarantee over its or their
assets (other than pursuant to the Security Documents).

 

18.4                    Power and authority

It has the
power to enter into, perform and deliver, and has taken all necessary action to
authorise its entry into, performance and delivery of, the Finance Documents to
which it is a party and the transactions contemplated by those Finance
Documents.

 

51

 

18.5                    Validity and admissibility in evidence

All Authorisations required or desirable:

 

(a)                           to enable it lawfully to enter into, exercise its rights and comply
with its obligations in the Finance Documents to which it is a party; and

 

(b)                          to make the Facility Documents to which it is a party admissible in
evidence in its jurisdiction of incorporation,

 

have been
obtained or effected and are in full force and effect.

 

18.6                    Governing law and enforcement

(a)                           The choice of law stated as the governing law of any the Facility
Documents to which it is a party will be recognised and enforced in its
jurisdiction of incorporation subject to any general principles of law limiting
its obligations which are specifically referred to in any legal opinion
delivered pursuant to Clause 4 (Conditions of Utilisation).

 

(b)                          Any judgement obtained in England in relation to a Facility Document
will be recognised and enforced in its jurisdiction of incorporation subject to
any general principles of law limiting its obligations which are specifically
referred to in any legal opinion delivered pursuant to Clause 4 (Conditions
of Utilisation).

 

18.7                    Deduction of Tax

Provided that
the Recipient is a Qualifying Recipient, no Obligor is required to make any
deduction for or on account of U.S. federal income tax from any payment it may
make under any Facility Document.

 

18.8                    No filing or stamp taxes

Save as stated
otherwise in legal opinions obtained in the relevant jurisdiction and delivered
to the Facility Agent and the Company on or prior to the date of this
Agreement, under the law of its jurisdiction of incorporation it is not
necessary that the Facility Documents be filed, recorded or enrolled with any
court or other authority in that jurisdiction or that any stamp, registration
or similar tax be paid on or in relation to the Facility Documents or the
transactions contemplated by the Facility Documents.

 

18.9                    No default

(a)                           No Default is continuing or might reasonably be expected to result
from the making of any Utilisation.

 

(b)                          No other event or circumstance is outstanding which constitutes a
default under any other agreement or instrument which is binding on it or any
of its Material Subsidiaries or to which its (or any of its Material
Subsidiaries’) assets are subject which would have or could reasonably be
expected to have a Material Adverse Effect.

 

18.10              No misleading information

(a)                           Any factual information provided by or on behalf of any member of
the Group for the purposes of the Information Memorandum was true and accurate
in all material respects as at the date it was authorised for distribution.

 

52

 

(b)                          The financial projections contained in the Information Memorandum
have been prepared on the basis of recent historical information and on the
basis of assumptions believed to be reasonable at the time made.

 

(c)                           Nothing has occurred and been omitted from the Information
Memorandum or occurred since it was authorised for distribution and no
information has been given or withheld that results in the information
contained in the Information Memorandum being untrue or misleading in any
material respect.

 

18.11              Financial statements

(a)                           Its Original Financial Statements were prepared in accordance with
IAS consistently applied and reconciled to GAAP (in accordance with SEC
reporting requirements).

 

(b)                          Its Original Financial Statements give a true and fair view of its
financial condition and operations (consolidated in the case of the Company)
during the relevant financial years.

 

(c)                           None of the Obligors nor any Material Subsidiary has outstanding any
material liability (contingent or otherwise) which is not disclosed in the
Company’s Original Financial Statements.

 

18.12              Pari passu ranking

Its payment
obligations under the Finance Documents rank at least pari passu with the
claims of all its other unsecured and unsubordinated creditors, except for
obligations mandatorily preferred by law applying to companies generally in the
relevant jurisdiction.

 

18.13              Litigation

(a)                           The letter describing the Current Material Litigation delivered to
the Facility Agent prior to the date of this Agreement sets out and fairly
describes all litigation claims or proceedings brought against or threatened
against the Company or its Subsidiaries or relating to the Mortgaged Properties
which had been fairly described in writing to the Arranger by the Company on or
before September 13, 2002.

 

(b)                          There has been no adverse development in any Current Material
Litigation proceedings which has not been disclosed in the Information
Memorandum or fairly described in writing to the Arranger prior to September
13, 2002 and other than the Current Material Litigation no material litigation
claims or proceedings have been brought or threatened against the Company or
its Subsidiaries (other than, in each case, developments or claims or
proceedings in relation to opt-outs under the Settlement) which could in the
opinion of the Majority Lenders (acting reasonably) if adversely determined or
settled (as so claimed or threatened) have a material adverse effect on the
business, assets, condition (financial or otherwise) or prospects of the
Borrower or the Obligors (taken as a whole) from the date hereof.

 

18.14              No Adverse Consequences

(a)                           It is not necessary under the laws of its jurisdiction of
incorporation nor, in relation to any Facility Document, under the governing
law of that Facility Document:

 

53

 

(i)                                         in order to enable any Finance Party to enforce rights under any
Facility Document; or

 

(ii)                                      by reason of the execution of any Facility Document or the
performance by any Finance Party of its obligations under any Facility
Document,

 

that any
Finance Party should be licensed or qualified to carry on business in that
jurisdiction.

 

18.15              Material Subsidiaries

Schedule 14 (Material
Subsidiaries) lists each Material Subsidiary at the date of this
Agreement.

 

18.16              Existing Security

Schedule 9 (Existing
Security) lists all Security, other than arising under the Security
Documents or by operation of law, existing over the assets of the Company or
its Subsidiaries on the date of this Agreement.

 

18.17              Existing Financial Indebtedness

Schedule 15 (Existing
Financial Indebtedness) sets out all Financial Indebtedness of the
Group outstanding as of the date of this Agreement.

 

18.18              Capital Structure

Schedule 16 (Capital
Structure) accurately and completely sets out the ownership
structure of the Group.

 

18.19              Ownership of Properties

(a)                           Schedule 13 (Ownership of Properties) sets forth the
address of each real property that is owned or leased by the Company or any of
its Subsidiaries having a market value or book value in excess of $1,000,000.

 

(b)                          As of the Utilisation Date, neither the Company nor any of its
Subsidiaries has received written notice of, or has actual knowledge of, any
pending or contemplated condemnation proceeding affecting any Mortgaged
Property or any sale or disposition thereof in lieu of condemnation which could
reasonably be expected to materially and adversely affect or interfere with the
current use or operation of such Mortgaged Property.  Except as set forth on Schedule 13 (Ownership of Properties),
none of the Mortgaged Properties or any interest therein is subject to any
right of first refusal, option or other contractual right to purchase any such
Mortgaged Property or interest therein.

 

(c)                           The Mortgages, when properly recorded in the appropriate records,
together with any Uniform Commercial Code financing statements required to be
filed in connection therewith, will create (i) a valid, perfected first
priority lien on the Mortgaged Properties (including, without limitation, the
fixtures thereon) and the rents therefrom, enforceable as such against creditors
of and purchasers from the Obligors and subject only to Permitted Security, and
(ii) with respect to the financing statements referred above perfected Security
(pursuant to the Uniform Commercial Code of the jurisdictions in which the
property is located) in and to all personalty situated on the Mortgaged
Properties, all in accordance with the terms thereof, in

 

54

 

each case subject only to any applicable
Permitted Security.  The Permitted
Security does not and will not materially and adversely affect or interfere
with the value, or current use or operation, of the Mortgaged Properties, or
the security intended to be provided by the Mortgages or any Obligor’s ability
to repay the Loans in accordance with the terms of this Agreement.  Except as insured by a Qualified Title
Insurance Policy, there are no claims for payment for work, labour or materials
affecting the Mortgaged Properties which are or may become a Security prior to,
or of equal priority with the Security created by the Security Documents.

 

(d)                          The Company or the relevant Subsidiary has obtained all licenses,
permits, variances, and certificates necessary for the present and contemplated
use and operation of the Mortgaged Properties except where the failure to do so
could not reasonably be expected to materially impair the value of any of the
Mortgaged Properties.  The uses being
made of the Mortgaged Properties are in conformity in all material respects
with the certificate of occupancy or permits for the Mortgaged Properties and
any other restrictions, covenants or conditions affecting the Mortgaged
Properties.

 

(e)                           Each of the Company and its Material Subsidiaries has good
marketable (in jurisdictions which recognise the legal concept of marketability)
and insurable title to, or valid leasehold interests in, or easements or other
limited property interests in, or is licensed to use, all its material
properties and assets, including without limitation the Mortgaged Properties,
except for minor defects in title that do not materially interfere with its
ability to conduct its business as currently conducted or to utilize such
properties and assets for their intended purposes.

 

(f)                             Each of the Company and its Material Subsidiaries has complied with
all obligations under all leases to which it is a party, except where the
failure to comply would not have a Material Adverse Effect, and all such leases
are in full force and effect, except leases in respect of which the failure to
be in full force and effect could not reasonably be expected to have a Material
Adverse Effect.  Each of the Company and
its Material Subsidiaries enjoys peaceful and undisturbed possession under all
such leases, other than leases which, individually or in the aggregate, are not
material to the Company and its Material Subsidiaries taken as a whole, and in
respect of which the failure to enjoy peaceful and undisturbed possession could
not reasonably be expected to, individually or in the aggregate, result in a
Material Adverse Effect.

 

(g)                          Each of the Company and its Material Subsidiaries owns, possesses,
is licensed or otherwise has the right to use, or could   obtain ownership or possession of, on terms
not materially adverse to it, all patents, trademarks, service marks, trade
names, copyrights, licenses and rights with respect thereto necessary for the
present conduct of its business, without any known conflict with the rights of
others, except where such conflicts could not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect. Except
where the same could not reasonably be expected to have a Material Adverse
Effect, no claim has been asserted and is pending by any person challenging or
questioning the use of any such intellectual property or the validity or
effectiveness of any such intellectual property, nor does the Company or any of
its Material Subsidiaries know of any valid basis for any such claim.

 

55

 

18.20              Taxes

Each of the
Company and its Subsidiaries has timely filed all federal, foreign and all
other material income tax returns and reports required by law to have been
filed by it and has paid all material taxes and governmental charges due,
except any such taxes or charges which are being diligently contested in good
faith by appropriate proceedings and for which adequate reserves in accordance
with IAS shall have been set aside on its books.

 

18.21              Pension and Welfare Plans

(a)                           No ERISA Event has occurred, is planned or is reasonably expected to
occur which could have a Material Adverse Effect or give rise to a Security
over any assets of the Group.  Each Plan
is maintained and operated in compliance in all material respects with its
terms and the presently applicable provisions of ERISA and the Code except for
non-compliance which could      not
reasonably be expected to have a Material Adverse Effect.  No condition exists or event or transaction
has occurred with respect to any Plan which reasonably might result in an ERISA
Event or in the incurrence by any member of the Group or any ERISA Affiliate of
any liability, fine or penalty which could reasonably be expected to have a
Material Adverse Effect.  Except as
disclosed in the Notes to the Original Financial Statements, no member of the
Group has any contingent liability with respect to post-retirement benefits
coverage provided by any member of the Group under a Welfare Plan, other than
(i) liability for continuation coverage described in Part 6 of Subtitle B
of Title I of ERISA and (ii) liabilities that, individually or in the
aggregate, could not reasonably be expected to have a Material Adverse Effect.

 

(b)                          Except as could not reasonably be expected to have a Material
Adverse Effect,

 

(i)                                         each Foreign Plan has been maintained in compliance with its terms
and with the requirements of any and all applicable laws, statutes, rules,
regulations and orders and has been maintained, where required, in good
standing with applicable regulatory authorities, and

 

(ii)                                      no member of the Group has incurred any obligation in connection
with the termination of or withdrawal from any Foreign Plan.

 

18.22              Environmental Warranties

(a)                           Except as disclosed in Schedule 12 (Environmental Warranties)  and
except for conditions that would not reasonably be expected to result in the
Company incurring material Environmental Liabilities, all facilities and
property owned, leased or operated by the Company or any of its Subsidiaries,
and all operations conducted thereon, have been and to the knowledge of the Company
are in material compliance with all Environmental Laws which compliance
includes the possession, maintenance and compliance with Environmental Permits
required and material to the operations of the Company and its Subsidiaries.

 

(b)                          Except as disclosed in Schedule 12 (Environmental Warranties),
the Company and its Subsidiaries are not subject to any pending or to the
Company’s knowledge material threatened Environmental Claims received by the
Company or any of its Subsidiaries.

 

56

 

(c)                           There has been no Release at, on, under, from or affecting any
property now or, to the knowledge of the Company previously owned, leased or
operated by the Company or any of its Subsidiaries that could reasonably be
expected to require Remedial Action the cost of which would be material.

 

(d)                          No property now or to the knowledge of the Company previously owned,
leased or operated by the Company or any of its Subsidiaries is listed or
formally proposed for listing on the CERCLIS or on any similar state list of
sites requiring investigation or clean-up, or on the National Priorities List
pursuant to CERCLA.

 

(e)                           To the knowledge of the Company, there are no past or present
actions, activities, conditions or occurrences that could reasonably be
expected to prevent the Company or any of its Subsidiaries from complying in
any material respect with, or to result in any material liability under, any
Environmental Law.

 

(f)                             No liens have been recorded pursuant to any Environmental Law with
respect to any property or other assets owned by the Company or any of its
Subsidiaries.

 

(g)                          Except as disclosed in Schedule 12 (Environmental Warranties),
neither the Company nor any of its Subsidiaries is currently conducting any
Remedial Action pursuant to any Environmental Law nor has the Company or any of
its Subsidiaries assumed by contract, agreement or operation of law any
obligation under Environmental Law.

 

(h)                          There are no polychlorinated biphenyls or friable asbestos present
at any property owned, leased or operated by the Company or any Subsidiary the
presence of which could reasonably be expected to result in the Company
incurring material Environmental Liabilities.

 

18.23              Regulations U and X

The Loans, the
use of the proceeds thereof, this Agreement and the transactions contemplated
hereby will not result in a violation of or be inconsistent with any provision
of Regulations U or X.

 

18.24              Investment Company Act

No member of
the Group is an “investment company, or an “affiliated person” of, or
“promoter” or “principal underwriter” for, an “investment company”, as such
terms are defined in the Investment Company Act of 1940 of the USA, and neither
the making of the Utilisation, nor the application of the proceeds or repayment
thereof by any Obligor, nor the consummation of the other transactions
contemplated hereby, will result in any such designation under such Act or a
violation of any provision of such Act or any rule, regulation or order of the
Securities and Exchange Commission thereunder.

 

18.25              Material Agreements

The Company has provided to the Facility
Agent all Material Contracts and to the extent the same could reasonably be
expected to have a Material Adverse Effect no event has occurred or is
continuing which constitutes, or which with the passage of time or giving of
notice or both would constitute, a default or event of default by any member of
the Group under the Material Contract to which any member of the Group is a
party or by which any member of the Group or any of their respective

 

57

 

properties may be bound or which would
require any member of the Group to make any payment thereunder prior to the
scheduled maturity date therefor.

 

18.26              Security Documents

All
representations and warranties contained in the Security Documents are true and
accurate and are not misleading on the date hereof, on the Utilisation Date and
, in relation to the Security Documents relating to assets in the United States
of America, on the date of delivery of an updated Perfection Certificate
pursuant to section 4.01(b) of the U.S. Security Agreement.

 

18.27              Repetition

(a)                           The Repeating Representations are deemed to be made by each Obligor
by reference to the facts and circumstances then existing on:

 

(i)                                         the date of the Utilisation Request, the date of each Compliance
Certificate and the first day of each Interest Period; and

 

(ii)                                      in the case of an Additional Guarantor, the day on which the company
becomes (or it is proposed that the company becomes) an Additional Guarantor.

 

(b)                          The representations set out in Clause 18.11 (Financial statements) shall
be deemed to be made by each Obligor by reference to the facts and
circumstances then existing on the date of the delivery of the most recent
audited financial statements of the relevant Obligor, save that a reference to
“Original Financial Statements” in Clause 18.11 (Financial statements) shall
be deemed to mean the most recent audited financial statements of the relevant
Obligor delivered to the Facility Agent.

 

19.                          INFORMATION UNDERTAKINGS

 

The
undertakings in this Clause 19 remain in force from the date of this Agreement
for so long as any amount is outstanding under the Facility Documents or any
Commitment is in force.

 

19.1                    Financial statements

 

The Company shall supply to the Facility
Agent in sufficient copies for all the Lenders:

 

(a)                           as soon as the same become available, but in any event within 105
days after the end of each of its Fiscal Years commencing with the Fiscal Year
ended December 31, 2002:

 

(i)                                         its audited consolidated financial statements for that Fiscal Year;
and

 

(ii)                                      if requested by the Facility Agent, the audited financial statements
of each Obligor for that Fiscal Year in the form of the Original Financial
Statements of that Obligor, or, if so required by any regulation, in such other
form as may be required to comply with such regulation;

 

(b)                          as soon as the same become available, but in any event within 45
days (or in the case of the financial quarter ended September 30, 2002 60 days)
after the end of each of

 

58

 

its financial quarters commencing with the
quarter ended September 30, 2002, its unaudited consolidated financial
statements for that financial quarter, together with a comparison of the
information contained therein to the Operating Budget for that financial
quarter and an analysis explaining any variations;

 

(c)                           as soon as the same shall become available, but in any event within
30 days or, in the case of January and July, 45 days after the end of each
month, other than March, June, September and December and commencing with
November 2002, its  unaudited
consolidated monthly management accounts; and

 

(d)                          (in a format reasonably acceptable to the Facility Agent, acting on
the reasonable instructions of the Majority Lenders) an Operating Budget for
the next Fiscal Year no later than the start of each such Fiscal Year, together
with a comparison of the information, estimates, forecasts and projections
contained therein with any relevant information, estimates, forecasts and
projections contained in the Information Memorandum including an analysis
explaining any variations therefrom.

 

19.2                    Compliance Certificate

(a)                           The Company shall commencing December 31, 2002 supply to the Facility
Agent, with each set of financial statements delivered pursuant to paragraph
(a) or (b) of Clause 19.1 (Financial statements), a Compliance
Certificate setting out (in reasonable detail) computations as to compliance
with Clause 20 (Financial covenants) as at the date as at which those
financial statements were drawn up and setting out the amount of the Excess
Cash Flow for the financial year to which those financial statements relate.

 

(b)                          Each Compliance Certificate shall be signed by two directors of the
Company and, if required to be delivered with the financial statements
delivered pursuant to paragraph (a)(i) of Clause 19.1 (Financial statements), shall
be reported on by the Company’s auditors in the form set out in Part II of
Schedule 8 (Form
of Compliance Certificate).

 

19.3                    Requirements as to financial statements

(a)                           Each set of financial statements delivered by the Company pursuant
to Clause 19.1 (Financial statements) shall be certified by the chief
financial officer of the relevant company as fairly representing its financial
condition as at the date as at which those financial statements were drawn up.

 

(b)                          The Company shall procure that each set of financial statements
delivered pursuant to Clause 19.1 (Financial statements) is prepared using
IAS and, in the case of each set of financial statements delivered pursuant to
paragraphs (a) and (b) of that Clause, reconciled to GAAP (in accordance with
SEC reporting requirements) (in the form agreed with the Facility Agent prior
to the date hereof).

 

(c)                           The Company shall procure that each set of financial statements of
an Obligor delivered pursuant to Clause 19.1 (Financial statements) is
prepared using IAS, accounting practices and financial reference periods
consistent with those applied in the preparation of the Original Financial
Statements for that Obligor unless, in relation to any set of financial
statements, it notifies the Facility Agent that there has

 

59

 

been a change in IAS, the accounting
practices or reference periods and its auditors (or, if appropriate, the
auditors of the Obligor) deliver to the Facility Agent:

 

(i)                                         a description of any change necessary for those financial statements
to reflect the IAS, accounting practices and reference periods upon which that
Obligor’s Original Financial Statements were prepared; and

 

(ii)                                      sufficient information, in form and substance as may be reasonably
required by the Facility Agent, to enable the Lenders to determine whether
Clause 20 (Financial
covenants) has been complied with and make an accurate comparison
between the financial position indicated in those financial statements and that
Obligor’s Original Financial Statements.

 

Any reference
in this Agreement to those financial statements shall be construed as a
reference to those financial statements as adjusted to reflect the basis upon
which the Original Financial Statements were prepared.

 

19.4                    Information: miscellaneous

The Company shall supply to the Facility
Agent (in sufficient copies for all the Lenders, if the Facility Agent so
requests):

 

(a)                           all documents dispatched by the Company to its shareholders (or any
class of them) or its creditors generally at the same time as they are
dispatched;

 

(b)                          promptly upon becoming aware of them, the details of any litigation
proceedings which are current, threatened or pending against any member of the
Group and which if adversely determined could reasonably be expected to involve
liability to the Group in excess of $1,000,000, and provide updates on any
material developments in any such litigation as soon as possible after such
developments occur and in any event together with any financial statements
delivered pursuant to paragraph (c) of Clause 19.1 (Financial Statements);

 

(c)                           promptly on becoming aware of them, updates on any material
developments relating to any Proposed Disposals;

 

(d)                          immediately upon becoming aware of the taking of any specific
actions by a member of the Group, ERISA Affiliate or any other person to
terminate any Pension Plan (other than a termination pursuant to Section
4041(b) of ERISA which can be completed without a member of the Group or any
ERISA Affiliate having to provide more than $1,000,000 in addition to the
normal contribution required for the plan year in which termination occurs to
make such Pension Plan sufficient), or the occurrence of an ERISA Event which
could result in a Security or in the incurrence by a member of the Group or
ERISA Affiliate of any liability, fine or penalty which could have a Material Adverse
Effect, or any increase in the contingent liability of a member of the Group
with respect to any post-retirement Welfare Plan benefit if the increase in
such contingent liability could have a Material Adverse Effect, notice thereof
and copies of all documentation relating thereto;

 

(e)                           upon request by the Facility Agent, copies of: (i) each Schedule B
(Actuarial Information) to the annual report (Form 5500 Series) filed by any
member of the

 

60

 

Group or ERISA Affiliate with the Internal
Revenue Service with respect to each Pension Plan; (ii) the most recent
actuarial valuation report for each Pension Plan; (iii) all notices received by
any member of the Group or ERISA Affiliate from a Multiemployer Plan sponsor or
any governmental agency concerning an ERISA Event; and (iv) such other
documents or governmental reports or filings relating to any Plan as the
Facility Agent shall reasonably request; and

 

(f)                             promptly, such further information regarding the financial
condition, business and operations or assets of any member of the Group as any
Finance Party (through the Facility Agent) may reasonably request.

 

19.5                     Notification
of default

(a)                           Each Obligor shall notify the Facility Agent of any Default (and the
steps, if any, being taken to remedy it) promptly upon becoming aware of its
occurrence (unless that Obligor is aware that a notification has already been
provided by another Obligor).

 

(b)                          Promptly upon a request by the Facility Agent, the Company shall supply
to the Facility Agent a certificate signed by two of its directors or senior
officers on its behalf certifying that no Default is continuing (or if a
Default is continuing, specifying the Default and the steps, if any, being
taken to remedy it), provided that either:

 

(i)                                         the Facility Agent reasonably believes that a Default is continuing;
or

 

(ii)                                      the Facility Agent has been instructed with a separate instruction
for each request by the Majority Lenders to request such certificate.

 

19.6                     Use
of websites

(a)                           The Company may satisfy its obligation under this Agreement to
deliver any information in relation to those Lenders ( the “Website
Lenders”) who accept this method of communication by posting this
information onto an electronic website designated by the Company and the
Facility Agent (the “Designated Website”) if:

 

(i)                                         the Facility Agent expressly agrees (after consultation with each of
the Lenders) that it will accept communication of the information by this
method;

 

(ii)                                      both the Company and the Facility Agent are aware of the address of
and any relevant password specifications for the Designated Website; and

 

(iii)                                   the information is in a format previously agreed between the Company
and the Facility Agent.

 

If any Lender (a “Paper Form Lender”) does not
agree to the delivery of information electronically then the Facility Agent
shall notify the Company accordingly and the Company shall supply the
information to the Facility Agent (in sufficient copies for each Paper Form
Lender) in paper form.

 

61

 

(b)                          The Facility Agent shall supply each Website Lender with the address
of and any relevant password specifications for the Designated Website
following designation of that website by the Company and the Facility Agent.

 

(c)                           The Company shall promptly upon becoming aware of its occurrence
notify the Facility Agent if:

 

(i)                                         the Designated Website cannot be accessed due to technical failure;

 

(ii)                                      the password specifications for the Designated Website change;

 

(iii)                                   any new information which is required to be provided under this
Agreement is posted onto the Designated Website;

 

(iv)                                  any existing information which has been provided under this
Agreement and posted onto the Designated Website is amended; or

 

(v)                                     the Company becomes aware that the Designated Website or any
information posted onto the Designated Website is or has been infected by any
electronic virus or similar software.

 

If the Company
notifies the Facility Agent under paragraph (c)(i) or paragraph (c)(v) above,
all information to be provided by the Company under this Agreement after the
date of that notice shall be supplied in paper form unless and until the
Facility Agent and each Website Lender is satisfied that the circumstances
giving rise to the notification are no longer continuing.

 

(d)                          Any Website Lender may request, through the Facility Agent, one
paper copy of any information required to be provided under this Agreement
which is posted onto the Designated Website. 
The Company shall comply with any such request within ten Borrower
Business Days.

 

19.7                     Insurance

The Borrower (a) will furnish to the Facility
Agent and the Security Agent prompt written notice of any casualty or other
insured damage to any material portion of any assets of any member of the Group
having a value in excess of $2,000,000 (or the equivalent) or the commencement
of any action or proceeding for the taking of any assets of any member of the
Group having a value in excess of $2,000,000 (or the equivalent) or any part
thereof or interest therein under power of eminent domain or by condemnation or
similar proceeding.

 

19.8                     Lenders’
Meetings

The Company shall during each Fiscal Year
hold a meeting for the Finance Parties in London, New York or Zurich.

 

20.                           FINANCIAL
COVENANTS

 

20.1                     Financial
Definitions

In this Agreement:

 

“Capital
Expenditures” means, for any period (a) any and all expenditures
made by the Company or any of its Subsidiaries in such period for assets added
to or reflected

 

62

 

in its
property, plant and equipment accounts or other similar capital asset accounts
or comparable items or any other capital expenditures that are, or should be,
set forth on a balance sheet statement prepared in accordance with IAS, whether
such asset is purchased for cash or financed as an account payable or by the
incurrence of Financial Indebtedness, accrued as a liability or otherwise and
(b) Capital Lease Obligations of the Company and its Subsidiaries.

 

“Consolidated Current Assets” means, with respect to any person as at any date of determination,
the total assets of such person and its consolidated Subsidiaries which should
properly be classified as current assets on a consolidated balance sheet of
such person and its consolidated Subsidiaries in accordance with IAS.

 

“Consolidated
Current Liabilities” means, with respect to any person as at any
date of determination, the total liabilities of such person and its
consolidated Subsidiaries which should properly be classified as current
liabilities (other than the current portion of any Loans) on a consolidated
balance sheet of such person and its consolidated Subsidiaries in accordance
with IAS.

 

“Consolidated
EBITDA” means, for any period, Consolidated Net Income for such
period:

 

(a)                           plus, without duplication and to the extent deducted in determining
such Consolidated Net Income, the sum of:

 

(i)                                         Consolidated Net Interest Expense for such period;

 

(ii)                                      consolidated income tax expense for such period;

 

(iii)                                   all amounts properly attributable to depreciation and amortization
for such period;

 

(iv)                                  any non-cash deductions from Consolidated Net Income for such period
(other than any deductions which would (or should) require the accrual of a
reserve or the payment of cash charges in any future period);

 

(v)                                     exceptional or extraordinary losses for such period;

 

(vi)                                  any transaction costs incurred in connection with the Facilities for
such period;

 

(vii)                               any losses incurred from participating interests in associated
undertakings to the extent included in Consolidated Net Income; and

 

(viii)                            the aggregate of all corporation and other similar taxes for such
period.

 

(b)                          minus, without duplication and to the extent included in determining
such Consolidated Net Income, the sum of:

 

(i)                                         extraordinary or exceptional gains for such period and any gains
realized in connection with any asset sale during such period;

 

(ii)                                      non-cash additions to Consolidated Net Income during such period;
and

 

63

 

(iii)                                   income from participating interests in associated undertakings to
the extent included in Consolidated Net Income all determined on a consolidated
basis in accordance with IAS.

 

“Consolidated Net Cash Flow” means, with respect to the Company and its Subsidiaries on a
consolidated basis in relation to any period, the aggregate of Consolidated
EBITDA for that period:

 

(a)                           plus any decrease, or minus any increase, in Net Working Capital
during that period;

 

(b)                          plus any increase made in cash or minus any decrease paid in cash in
provisions for liabilities and charges made in respect of that period;

 

(c)                           plus Disposal Proceeds received in cash and used to prepay the Loan
in accordance with Clause 7.3 (Disposals);

 

(d)                          plus to the extent already deducted any exceptional or extraordinary
losses, minus to the extent already included any exceptional or extraordinary
items, in each case, received or made during that period;

 

(e)                           minus any dividends paid in respect of minority interests for that
period.

 

(f)                             plus any dividends received from other fixed assets investments
during that period;

 

(g)                          plus income from participating interests in associated undertakings
to the extent received in cash and minus any payment made to associated
undertakings during that period;

 

(h)                          minus Capital Expenditures in respect of that period paid or
contractually required to be paid during that period;

 

(i)                              plus realised exchange gains and minus realised exchange losses
charged during that period to the extent not already taken account of in
Consolidated EBITDA for that period; and

 

(j)                              minus the aggregate of all corporation or other similar Taxes paid
during that period.

 

“Consolidated
Net Cash Interest Expense” means, for any period, Consolidated Net
Interest Expense for such period, less the sum of, to the extent included in
Consolidated Net Interest Expense, (a) pay-in-kind Consolidated Net Interest
Expense recorded in that period, (b) the amortization of any financing fees
paid by, or on behalf of, the Company or any of its Subsidiaries, and (c) the
amortization of debt discounts, if any.

 

“Consolidated
Net Interest Expense” means, with respect to the Company and its
Subsidiaries on a consolidated basis for any period, the sum of:

 

(a)                           net interest expense for such period, including the amortization of
debt discounts; the amortization of all fees (including fees with respect to
Hedging Agreements) payable in connection with the incurrence of Financial
Indebtedness to the extent included in

 

64

 

interest expense; the portion of any payments
or accruals with respect to Capital Lease Obligations allocable to interest
expense; and

 

(b)                          capitalized interest.

 

For purposes
of the foregoing, (a) net interest expense shall be determined after giving
effect to any net payments made by the Company and its Subsidiaries with
respect to Hedging Agreements and (b) in order to give pro forma effect to
the Loans for the purposes of the financial covenants, in the case of any Test
Period which commences prior to the Utilisation Date, net interest expense
shall be increased by an amount equal to $38,800,000 divided by 365 multiplied
by the actual number of days in the period from the first day of that Test
Period to the Utilisation Date.

 

“Consolidated
Net Income” means, for any period, the net income or loss of the
Company and its Subsidiaries for such period determined on a consolidated basis
in accordance with IAS; provided that there shall be excluded therefrom:

 

(a)                           the income or loss of any person (other than consolidated
Subsidiaries of the Company) in which any other person (other than the Company
or any of its Subsidiaries) has a joint interest, except to the extent of the
amount of dividends or other distributions actually paid to the Company or any
of its Subsidiaries by such person during such period;

 

(b)                          any net after-tax gains or losses on disposal of discontinued
operations;

 

(c)                           the income or loss of any person accrued prior to the date it
becomes a Subsidiary or is merged into or consolidated with the Company or any
of its Subsidiaries or that person’s assets are acquired by the Company or any
of its Subsidiaries; and

 

(d)                          the income of any consolidated Subsidiary to the extent that
declaration of payment of dividends or similar distributions by that Subsidiary
of that income is not at the time permitted by operation of the terms of its
charter or any agreement, instrument, judgment, decree, order, statute, rule or
governmental regulation applicable to that Subsidiary.

 

“Excess Cash
Flow” means, without duplication, for any person for any period for
which such amount is being determined, Consolidated Net Cash Flow minus:

 

(a)                           payments of principal under the Loans, if any, pursuant to Clause 6
(Repayment)
made during such period;

 

(b)                          voluntary or mandatory prepayments of principal under the Loans, if
any, made during such period (excluding payments required to be made by Clause
7.4 (Excess
Cash Flow)); and

 

(c)                           Consolidated Net Cash Interest Expense for that period.

 

“Fixed Charge
Coverage Ratio” means, for any Test Period, the ratio of (a) the
Consolidated Net Cash Flow in such Test Period 
to (b) the sum of Consolidated Net Cash Interest Expense for such Test
Period plus the amount of scheduled mandatory

 

65

 

payments or
prepayments of principal Financial Indebtedness of the Borrower for such Test
Period (excluding payments required to be made by Clause 7.4 (Excess Cash
Flow)).

 

“Interest
Expense Coverage Ratio” means, for any Test Period, the ratio of
(a) Consolidated EBITDA to (b) Consolidated Net Cash Interest
Expense, in each case for such Test Period.

 

“Net Working
Capital” means, the Consolidated Current Assets (excluding all of
cash at bank and cash in hand), less the aggregate of Consolidated Current
Liabilities (excluding all charges and provisions).

 

“Test Period”
means in respect of any date the four consecutive complete fiscal quarters of
the Company then last ended.  Compliance
with such covenants shall be tested, as of the end of each Test Period, on the
date on which the financial statements pursuant to paragraphs (a) and (b) of
Clause 19.1 (Financial Statements) have been, or should have been,
delivered for the applicable fiscal period.

 

“Total
Leverage Ratio” means, for any Test Period, the ratio of (a)
Financial Indebtedness of the Company and its Subsidiaries as of such date to
(b) Consolidated EBITDA for such Test Period.

 

Terms used in
this Clause 20 (Financial Covenants) not otherwise defined have the meanings
given to them by IAS.

 

20.2                     Interest
Expense Coverage Ratio

The Company
will not permit the Interest Expense Coverage Ratio for any Test Period set
forth below to be less than the ratio set forth below opposite such period:

 

	
  Test Period

  	
   

  	
  Ratio

  
	
   

  	
   

  	
   

  
	
  September
  30, 2002

  	
   

  	
  4.50:1

  
	
   

  	
   

  	
   

  
	
  December 31,
  2002

  	
   

  	
  4.50:1

  
	
   

  	
   

  	
   

  
	
  March 31,
  2003

  	
   

  	
  4.75:1

  
	
   

  	
   

  	
   

  
	
  June 30,
  2003

  	
   

  	
  4.75:1

  
	
   

  	
   

  	
   

  
	
  September
  30, 2003

  	
   

  	
  5.25:1

  
	
   

  	
   

  	
   

  
	
  December 31,
  2003

  	
   

  	
  5.50:1

  
	
   

  	
   

  	
   

  
	
  March 31,
  2004 and the last day of each fiscal quarter thereafter

  	
   

  	
  6.00:1

  

 

20.3                     Total
Leverage Ratio

The Company
will not permit the Total Leverage Ratio for any Test Period set forth below to
exceed the ratio set forth opposite such period:

 

66

 

	
  Test Period

  	
   

  	
  Ratio

  
	
   

  	
   

  	
   

  
	
  September
  30, 2002

  	
   

  	
  3.75:1

  
	
   

  	
   

  	
   

  
	
  December 31,
  2002

  	
   

  	
  3.50:1

  
	
   

  	
   

  	
   

  
	
  March 31,
  2003

  	
   

  	
  3.50:1

  
	
   

  	
   

  	
   

  
	
  June 30,
  2003

  	
   

  	
  3.50:1

  
	
   

  	
   

  	
   

  
	
  September
  30, 2003

  	
   

  	
  2.75:1

  
	
   

  	
   

  	
   

  
	
  December 31,
  2003

  	
   

  	
  2.50:1

  
	
   

  	
   

  	
   

  
	
  March 31,
  2004

  	
   

  	
  2.25:1

  
	
   

  	
   

  	
   

  
	
  June 30,
  2004

  	
   

  	
  2.25:1

  
	
   

  	
   

  	
   

  
	
  September
  30, 2004 and the last day of each fiscal quarter thereafter

  	
   

  	
  2.00:1

  

 

20.4                     Fixed
Charge Coverage Ratio

The Company
will not permit the Fixed Charge Coverage Ratio for any Test Period set forth
below to be less than the ratio set forth below opposite such period:

 

	
  Test Period

  	
   

  	
  Ratio

  
	
   

  	
   

  	
   

  
	
  September
  30, 2002

  	
   

  	
  1.10:1

  
	
   

  	
   

  	
   

  
	
  December 31,
  2002

  	
   

  	
  1.10:1

  
	
   

  	
   

  	
   

  
	
  March 31,
  2003

  	
   

  	
  1.10:1

  
	
   

  	
   

  	
   

  
	
  June 30,
  2003

  	
   

  	
  1.10:1

  
	
   

  	
   

  	
   

  
	
  September
  30, 2003

  	
   

  	
  1.10:1

  
	
   

  	
   

  	
   

  
	
  December 31,
  2003

  	
   

  	
  1.10:1

  
	
   

  	
   

  	
   

  
	
  March 31,
  2004

  	
   

  	
  1.25:1

  
	
  June 30,
  2004

  	
   

  	
  1.25:1

  
	
   

  	
   

  	
   

  
	
  September
  30, 2004

  	
   

  	
  1.25:1

  
	
   

  	
   

  	
   

  
	
  December 31,
  2004

  	
   

  	
  1.25:1

  
	
   

  	
   

  	
   

  
	
  March 31,
  2005 and the last day of each fiscal quarter thereafter

  	
   

  	
  1.50:1

  

 

67

 

20.5                     Capital
Expenditures

The Company
will not, and will not permit any of its Subsidiaries to make or commit to make
any Capital Expenditures exceeding the amount set forth below (the “Base Amount”) for each of the Fiscal Years of the Company ended on the dates
set forth below:

 

	
  Fiscal Year ended

  	
   

  	
  Base Amount (CHF)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  December 31, 2002

  	
   

  	
  78,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  December 31, 2003

  	
   

  	
  65,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  December 31, 2004

  	
   

  	
  67,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  December 31, 2005

  	
   

  	
  70,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  December 31, 2006

  	
   

  	
  72,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  December 31, 2007

  	
   

  	
  75,000,000

  	
   

  

 

provided that
for any period set forth above, the Base Amount set forth above may be increased
for any such period by carrying over to any such period any portion of the Base
Amount (without giving effect to any increase as a result of any carry over
from a prior year) not spent in the immediately preceding period, and that
Capital Expenditures in any period shall be deemed first made from the Base
Amount applicable to such period in any given period.

 

21.                          GENERAL
UNDERTAKINGS

The
undertakings in this Clause remain in force from the date of this Agreement for
so long as any amount is outstanding under the Facility Documents or any
Commitment is in force.

 

21.1                    Authorisations

Each Obligor shall promptly:

 

(a)                           obtain, comply with and do all that is necessary to maintain in full
force and effect; and

 

(b)                          supply certified copies to the Facility Agent of,

 

any
Authorisation required under any law or regulation of its jurisdiction of
incorporation to enable it to perform its obligations under the Finance
Documents and to ensure the legality, validity, enforceability or admissibility
in evidence in its jurisdiction of incorporation of any Finance Document or
Security created thereby.

 

68

 

21.2                    Compliance
with laws

Each Obligor
shall comply in all respects with all laws to which it may be subject, if
failure so to comply would materially impair its ability to perform its
obligations under the Finance Documents.

 

21.3                    Maintenance
of Properties

The Company
will, and will cause each of its Subsidiaries to, maintain, preserve, protect
and keep its material properties and assets in good repair, working order and
condition, reasonable wear and tear excepted and make necessary and proper
repairs, renewals and replacements so that its business carried on in
connection therewith may be properly conducted at all times provided that
breach of the obligation shall not be capable of constituting an Event of
Default unless such breach could reasonably be expected to have a Material
Adverse Effect.

 

21.4                    Insurance

(a)                           The Company will, and will cause each of its Subsidiaries to,
maintain or cause to be maintained with reputable insurance companies (a)
insurance with respect to its properties material to the business of the
Company and its Subsidiaries against such casualties and contingencies and of
such types and in such amounts as is customary in the case of similar
businesses operating in the same or similar locations and (b) all insurance
required to be maintained pursuant to the Security Documents, and will, upon
request of the Facility Agent, furnish to each Lender at reasonable intervals a
certificate of an officer of the Company setting forth the nature and extent of
all insurance maintained by the Company and its Subsidiaries in accordance with
this Clause.  The Company shall ensure
that in relation to each insurance policy which is the subject of Security
under a Security Document:

 

(i)                                         it may not be cancelled or otherwise terminated without at least
ninety (90) days prior written notice to the Company and the Company’s
insurance broker (which shall be a reputable insurance broker) (except in case
of a loss, when the notice period is fourteen (14) days) and the Company will
ensure that from the date falling no later than ten Business Days from the date
of this Agreement, the Company’s insurance broker shall undertake to the
Security Agent and the Facility Agent to provide to the Security Agent and
Facility Agent a copy of any such notice within five Business Days of receipt
of such notice

 

(ii)                                      and to the extent any such policy is cancelled, modified or renewed,
the Company shall deliver a copy of the renewal or replacement policy (or other
evidence thereof) to the Facility Agent and the Security Agent, or insurance
certificate with respect thereto, together with evidence satisfactory to the
Facility Agent and Security Agent of the payment of the premium therefor;

 

(iii)                                   the Security Agent is permitted to pay any premium therefor and the
insurer is required to give notice to the Company and the Company’s insurance
broker of any failure to pay any premium and the Company will ensure that from
the date falling no later than ten Business Days from the date of this
Agreement, the Company’s insurance broker shall undertake to the Security Agent
and the Facility Agent to provide to the Security Agent and Facility

 

69

 

Agent a copy of any such notice within five
Business Days of receipt of such notice;

 

(iv)                                  the insurance policy shall be endorsed with an obligation on the
insurer to give notice to the Security Agent of any revocation of any payment
instruction referred to in paragraphs (v) and (vi)(B) by the Company or any of
its Subsidiaries;

 

(v)                                     in respect of real property insurance in respect of real property in
the US, a standing payment instruction is given by the Company to the insurer
to pay all losses in excess of $1,000,000 (other than in respect of third party
claims) to the Security Agent if the Security Agent gives written notice to the
insurer to do so (which notice may only be given when an Event of Default is
continuing);

 

(vi)                                  with respect to liability insurance, (A) the Security Agent shall be
named as an additional insured in respect of real property liability insurance;
and (B) in respect of non-real property liability insurance, a standing payment
instruction shall be given by the Company to the insurer to pay all losses to
the Security Agent if the Security Agent gives written notice to the insurer to
do so (which notice may only be given when an Event of Default is continuing).

 

(b)                          In the event any member of the Group gives the Security Agent
written notice that it does not intend to pay any premium relating to any
insurance policy when due, the Security Agent shall not exercise its right to
pay such premium so long as the Company or such member of the Group delivers to
the Security Agent a replacement insurance policy or insurance certificate
evidencing that such replacement policy or certificate provides the same
insurance coverage required under this Clause 21.4 as the policy being replaced
by such member of the Group with no lapse in such coverage.

 

21.5                    Books
and Records; Access

The Company
will, and will cause each of its Subsidiaries to, keep books and records which
accurately reflect all of its business affairs and material transactions and
permit the Facility Agent and each Lender or any of their respective
representatives, upon reasonable notice, at reasonable times and intervals, to
visit all of its offices, to discuss its financial matters with its officers
and independent public accountant (provided that the Company shall be given
adequate notice of any such meeting and shall be permitted to attend all
meetings between the Facility Agent and/or any Lender and the independent
public accountant of the Company) and, upon the reasonable request of the
Facility Agent or a Lender, to examine (and, at the expense of the Company,
photocopy extracts from) any of its books or other corporate or partnership records.

 

21.6                    Environmental

The Company
will, and will cause each of its Subsidiaries to:

 

(a)                           use and operate all of its facilities and properties and manage all
Hazardous Materials in compliance in all material respects with all
Environmental Laws and keep all

 

70

 

Environmental Permits material to the
operations of the Company or its Subsidiaries in effect and remain in material
compliance therewith.

 

(b)                          promptly notify the Facility Agent and provide copies of all
Environmental Claims alleging that the Company or its Subsidiaries are in non-compliance
with or potentially liable under Environmental Law where such non-compliance or
liability could reasonably be expected to result in the Company incurring
Environmental Liabilities in excess of $2,000,000 and promptly cure or have
dismissed with prejudice or contest in good faith any actions and proceedings
relating thereto;

 

(c)                           in the event of the Release or presence of any Hazardous Material on
any of its properties which is in violation of any Environmental Law, or which
could reasonably be expected to result in Environmental Liability in excess of
$2,000,000, the Company and its Material Subsidiaries, upon discovery thereof,
shall take all necessary steps to initiate and expeditiously complete all
Remedial Action to mitigate and eliminate any such adverse effect in accordance
with and to the extent required by applicable Environmental Laws, and shall
keep the Facility Agent informed of their actions;

 

(d)                          at the written request of the Facility Agent or the Majority
Lenders, which request shall specify in reasonable detail the basis therefor,
the Company will provide, at the Company’s sole cost and expense, an
environmental site assessment report concerning any property now or hereafter
owned or leased by the Company or any of its Subsidiaries, prepared by an
environmental consulting firm reasonably acceptable to the Facility Agent,
indicating the compliance status of the property under Environmental Law, the
presence or absence of Hazardous Materials on, at, under or emanating to or
from such Property and the potential cost of any Remedial Action required by
Environmental Law, and the nature and status of any Environmental Claim and
Environmental Liability, if in each case such request may be made only if
(i) there has occurred and is continuing an Event of Default or (ii) the
Facility Agent or the Majority Lenders reasonably believe that a member of the
Group or any such property is not in material compliance with Environmental Law
or that circumstances exist that could reasonably be expected to form the basis
of an Environmental Claim against a member of the Group or to result in
Environmental Liability, (in such events as are listed in this subparagraph,
the environmental site assessment shall be focused upon the noncompliance or
other circumstances as applicable) provided that the Environmental Liability is
in excess of $2,000,000.  If the Company
fails to provide the same within 90 days after such request was made, the
Facility Agent may upon giving notice thereof to the Company order the same, and
the Company shall procure that the owner of the relevant property will grant to
the Facility Agent and the Majority Lenders and their agents access to such
property and specifically grants the Facility Agent and the Lenders an
irrevocable non-exclusive license, subject to the rights of tenants, to perform
such an assessment, all at the Company’s sole cost and expense; and

 

(e)                           provide such information and certifications which the Facility Agent
may reasonably request from time to time to evidence compliance with this
Clause 21.6, provided such requests are limited to information in the
possession of the Company.

 

71

 

21.7                    Existence;
Conduct of Business

The Company
will, and will cause each of its Subsidiaries to, do or cause to be done all
things necessary to preserve, renew and keep in full force and effect its legal
existence and the rights, licenses, permits, privileges, franchises, patents,
copyrights, trademarks and trade names material to the conduct of its business
provided that failure to do so shall not be an Event of Default unless it could
reasonably be expected to have a Material Adverse Effect.

 

21.8                    Performance
of Obligations

Each Obligor
will and will cause its respective Subsidiaries to perform all of their
respective obligations under the terms of each mortgage, indenture, Security
Document or other security agreement, other debt instrument and material
contract by which they are bound or to which they are a party, except where
such nonperformance could not reasonably be expected to have a Material Adverse
Effect.

 

21.9                    Further
Assurances

The Company
will, and will cause each Material Subsidiary to, execute any and all further
documents, financing statements, agreements and instruments, and take all such
further actions (including, without limitation, the payment of any fees and
taxes required in connection with the execution and delivery of the Security
Documents and the filing and recording of all Uniform Commercial Code and other
financing statements, fixture filings, mortgages, deeds of trust and other
documents), which may be required under any applicable law, or which the
Facility Agent, Security Agent or the Majority Lenders may reasonably request,
to effectuate the transactions contemplated by the Facility Documents or to
grant, preserve, protect or perfect the Security created by the Security
Documents or the validity or priority of any such Security, all at the expense
of the Obligors.  The Company also
agrees to provide to the Facility Agent, from time to time upon request,
evidence reasonably satisfactory to the Facility Agent as to the perfection and
priority of the Security created or intended to be created by the Security
Documents.

 

21.10              Use
of Proceeds

The Borrower
covenants and agrees that the proceeds of the Loans will be used on the
Utilisation Date for the purposes set out in Clause 3 (Purpose) and no other
purpose.

 

21.11              Hedging
Arrangements

The Borrower
or the Company will within 60 days after the Utilisation Date enter into, and
thereafter maintain in effect for a minimum period commencing on the
Utilisation Date and ending on the second anniversary of the Utilisation Date
reasonably satisfactory to the Facility Agent, one or more Hedging Agreements
(which, to the extent entered into with a Finance Party will be secured) fixing
or capping the interest rate on a notional principal amount of indebtedness not
less than or equal to 50% of the sum of the Loans outstanding, having terms and
conditions reasonably acceptable, taking into account current market
conditions, to the Facility Agent.

 

72

 

21.12              Payment
of Taxes

The Company
and its Subsidiaries will pay and discharge all material taxes, assessments and
governmental charges or levies imposed upon it or upon its income or profits,
or upon any properties belonging to it, prior to the date on which material
penalties attach thereto, and all lawful claims which, if unpaid, might become
a Security or charge upon any properties of such member of the Group or cause a
failure or forfeiture of title thereto; provided that neither such Company nor
any of its Subsidiaries shall be required to pay any such tax, assessment,
charge, levy or claim that is being contested in good faith and by proper
proceedings promptly instituted and diligently conducted, which proceedings
have the effect of preventing the forfeiture or sale of the property or asset
that may become subject to such Security, if it has maintained adequate
reserves with respect thereto in accordance with and to the extent required
under IAS.

 

21.13              Settlement

The Company
and the Borrower undertake to ensure that all amounts due under the Settlement
on or prior to November 4, 2002 will be paid on or before November 4, 2002 and
to perform all obligations required to be performed under the Settlement in
accordance with the terms of the Settlement.

 

21.14              Planned Disposals

(a)                           The Obligors undertake to use their reasonable best efforts to agree
and close the Disposal of (i) Sulzer Intra-Therapeutics Inc.; and (ii) the
vascular grafts business of the Group, in accordance with the terms of this
Agreement as soon as reasonably practicable.

 

(b)                          The Obligors undertake to use their commercially reasonable best
efforts to agree and close the Disposal of Sulzer Carbomedics Inc., in
accordance with the terms of this Agreement as soon as reasonably practicable.

 

21.15              Material Subsidiaries

The Company
shall procure that:

 

(a)                           members of the Group that are not Material Subsidiaries shall not at
any time, have in aggregate, EBITDA, revenues or total assets which exceed 10%
of the EBITDA, revenues or total assets of the Group (taken as a whole) in each
case determined as set out in the definition of “Material Subsidiary”; and

 

(b)                          each Material Subsidiary is an Obligor at all times.

 

21.16              Additional
Security

The Company
shall procure that each member of the Group which becomes a Material Subsidiary
from time to time will execute such Security Documents as the Security Agent
may reasonably require as soon as practicable and in no event later than 45
days of the relevant company becoming a Material Subsidiary together with such
documentation in support thereof as the Security Agent may reasonably require,
including legal opinions (in form and content satisfactory to the Security
Agent, acting reasonably) from lawyers reasonably acceptable to the Security
Agent.

 

73

 

21.17              Financial
Indebtedness

No Obligor
shall (and the Company shall ensure that no other member of the Group will)
incur or permit to subsist any Financial Indebtedness other than Permitted
Financial Indebtedness.

 

21.18              Negative
pledge

(a)                           No Obligor shall (and the Company shall ensure that no other member
of the Group will) create or permit to subsist any Security over any of its
assets.

 

(b)                          No Obligor shall (and the Company shall ensure that no other member
of the Group will):

 

(i)                                         sell, transfer or otherwise dispose of any of its assets on terms
whereby they are or may be leased to or re-acquired by an Obligor or any other
member of the Group;

 

(ii)                                      sell, transfer or otherwise dispose of any of its receivables on
recourse terms;

 

(iii)                                   enter into any arrangement under which money or the benefit of a
bank or other account may be applied, set-off or made subject to a combination
of accounts; or

 

(iv)                                  enter into any other preferential arrangement having a similar
effect,

 

in each case
in circumstances where the arrangement or transaction is entered into primarily
as a method of raising Financial Indebtedness or of financing the acquisition
of an asset.

 

(c)                           Paragraphs (a) and (b) above do not apply to:

 

(i)                                         any Security listed in Schedule 9 (Existing Security) except to
the extent the principal amount secured by that Security exceeds the amount stated
in that Schedule;

 

(ii)                                      any netting or set-off arrangement entered into by any member of the
Group in the ordinary course of its banking arrangements for the purpose of
netting debit and credit balances;

 

(iii)                                   any lien arising by operation of law and in the ordinary course of
business;

 

(iv)                                  any Security over or affecting any asset acquired by a member of the
Group after the date of this Agreement if:

 

(A)                 the
Security was not created in contemplation of the acquisition of that asset by a
member of the Group;

 

(B)                   the principal amount secured has not been increased in contemplation
of, or since the acquisition of that asset by a member of the Group; and

 

(C)                   the Security is removed or discharged within three months of the
date of acquisition of such asset;

 

74

 

(v)                                     any Security over or affecting any asset of any company which
becomes a member of the Group after the date of this Agreement, where the
Security is created prior to the date on which that company becomes a member of
the Group, if:

 

(A)                 the
Security was not created in contemplation of the acquisition of that company;

 

(B)                   the principal amount secured has not increased in contemplation of
or since the acquisition of that company; and

 

(C)                   the Security is removed or discharged within three months of that
company becoming a member of the Group;

 

(vi)                                  any Security entered into pursuant to any Security Document;

 

(vii)                               any Security granted pursuant to the Medicare Security Agreement;

 

(viii)                            any retention of title arrangement contained in any contract for the
acquisition of any asset by a member of the Group in the ordinary course of
trade from any person in the ordinary course of its trade and on customary
terms.

 

(ix)                                    deposits securing any bids made or contracts to be entered into by a
member of the Group and any performance bond or letter of credit issued by a
member of the Group in an aggregate principal amount not exceeding $5,000,000
(or the dollar equivalent amount) for all members of the Group at any time;

 

(x)                                       liens of a bank, broker or securities intermediary on whose records
a deposit account or a securities account of the Company or any Subsidiary is
maintained securing the payment of customary fees and commissions to the bank,
broker or securities intermediary or, with respect to a deposit account, items
deposited but returned unpaid and other unexercised bankers liens;

 

(xi)                                    “Permitted Encumbrances” with respect to each of the Mortgaged
Properties as such term is defined in the Mortgages; or

 

(xii)                                 any lien or rights over cash deposits granted in favour of a
landlord for the purposes of securing performance of rent and service charge
obligations incurred properly in connection with its business under licences,
subleases or leases of real property, provided that such lien is discharged
within 45 days after the date such lien should have been discharged under any
arrangement with the beneficiary of such lien of the amount owing in respect
thereof becoming due;

 

(xiii)                              Security arising pursuant to an order of attachment or injunction
restraining disposal of assets or similar legal process arising in connection
with court proceedings which are contested by any member of the Group in good
faith by appropriate proceedings with a reasonable prospect of success provided
that, such Security (i) does not secure assets exceeding a value of

 

75

 

$10,000,000 (or its equivalent amount in
another currency) and (ii) is removed or discharged within one year of the creation
of such Security;

 

(xiv)                             any Security securing indebtedness the principal amount of which,
when aggregated with the principal amount of any other indebtedness which has
the benefit of Security given by any member of the Group other than permitted under
paragraphs (i) to (xiii) above, does not exceed $5,000,000 (or its equivalent
in another currency or currencies);

 

21.19              Disposals

(a)                           No Obligor shall (and the Company shall ensure that no other member
of the Group will), enter into a single transaction or a series of transactions
(whether related or not) and whether voluntary or involuntary to sell, lease,
transfer or otherwise dispose of any Equity Interests or Equity Rights in any
member of the Group, and including any issue of any Equity Interests or Equity
Rights in any member of the Group other than the Company or make any other
Disposal.

 

(b)                          Paragraph (a) above does not apply to any Disposal:

 

(i)                                         made in the ordinary course of trading of the disposing entity;

 

(ii)                                      which is a Proposed Disposal;

 

(iii)                                   where the higher of the market value (as determined in good faith by
the relevant Obligor) or consideration receivable (when aggregated with the
higher of the market value (as determined in good faith by the relevant
Obligor) or consideration receivable for any other Disposal, other than any
permitted under paragraphs (i) and (ii) above) does not exceed $10,000,000 (or
its equivalent in another currency or currencies) or such higher amount as may
be agreed by the Majority Lenders in any financial year;

 

(iv)                                  of a Permitted Investment;

 

(v)                                     for cash of obsolete or worn out assets in the ordinary course of
business of the disposing entity;

 

(vi)                                  which is a transaction permitted by Clause 21.22 (Restricted
Investments);

 

(vii)                               between Unconditional Obligors;

 

(viii)                            which is a licence or a lease of intellectual property entered into
in the ordinary course of business;

 

(ix)                                    by a Guarantor to another member of the Group of any asset with a
market value (as determined in good faith by the relevant Guarantor) or
consideration receivable of less than $10,000,000 in aggregate;

 

(x)                                       by a member of the Group which is not a Guarantor to any other
member of the Group; or

 

76

 

(xi)                                    where the net proceeds of such Disposal to be received in cash are
sufficient to repay in full all amounts outstanding under the Facility
Documents and are applied to repay in full all amounts outstanding under the
Facility Documents immediately on receipt.

 

provided that
any Disposal permitted by paragraphs (ii) and (iii) above (other than as
permitted in the letter referred to in the definition of Proposed Disposals)
shall be made for fair value and on terms that on the completion of such
transaction the relevant member of the Group will receive cash in an amount
equal to at least 90% or, in the case of transactions completing while the
Tranche A Loans have not been fully repaid, 75% of the maximum total
consideration payable in respect of that transaction, and any consideration not
paid in cash on completion will be payable prior to the Final Maturity Date and
provided further that any cash consideration from such transactions shall be
applied in accordance with Clause 7 (Prepayment and Cancellation).

 

21.20              Merger

No Obligor
shall and the Company shall ensure that no other member of the Group will enter
into any amalgamation, demerger, merger or corporate reconstruction except (a)
with another member of the Group provided that the surviving entity in any such
Merger is an Obligor other than where both merging entities are not Obligors
(and if either of the merging Obligors is an Unconditional Obligor such
surviving entity is an Unconditional Obligor) and that such Merger is not
adverse to the interests of the Finance Parties or (b) pursuant to a Proposed
Disposal.

 

21.21              Change
of business

The Company
shall procure that no substantial change is made to the general nature of the
business of the Company or the Group from that carried on at the date of this
Agreement.

 

21.22              Restricted Investments

The Company
will not, and will not permit any of
its Subsidiaries to, directly or indirectly, purchase, hold or acquire
(including pursuant to any merger with any person that was not a wholly owned
Subsidiary prior to such merger) any Equity Interests in or evidences of
Financial Indebtedness or other securities (including any option, warrant or
other right to acquire any of the foregoing) of, make or permit to exist any
loans or advances to, Guarantee any obligations of, or make or permit to exist
any investment or any other interest in, any other person, or purchase or
otherwise acquire (in one transaction or a series of transactions) any assets
of any other person constituting a business unit (each of the foregoing, an “Investment”
and collectively, “Investments”), except:

 

(a)                           Permitted Investments;

 

(b)                          Investments existing on the date hereof (or in respect of which a
binding commitment to make such investment exists on the date hereof) and set
out in Schedule 17 (Existing Investments) or expressly
permitted in the letter referred to the definition of the Proposed Disposals;

 

77

 

(c)                           Investments by an Unconditional Obligor in another Unconditional
Obligor; provided that any such Investment shall be the subject of security in
favour of the Finance Parties pursuant to a Security Document;

 

(d)                          Investments by an Unconditional Obligor in Equity Interests in other
members of the Group in an aggregate amount not to exceed $10,000,000 (or its
equivalent) at any time provided that any such Investment shall be the subject
of security in favour of the Finance Parties pursuant to a Security Document;

 

(e)                           Investments constituting Permitted Financial Indebtedness;

 

(f)                             Investments received in connection with the bankruptcy or
reorganization of, or settlement of delinquent accounts and disputes with,
customers and suppliers, in each case in the ordinary course of business;

 

(g)                          loans and advances to employees of the Company or its Subsidiaries
in the ordinary course of business (including, without limitation, for travel,
entertainment and relocation expenses) not to exceed $2,000,000 in the
aggregate at any time outstanding; 

 

(h)                          amounts of credit allowed by the relevant member of the Group in the
ordinary course of trading with third parties;

 

(i)                              non-cash consideration from permitted disposals in accordance with
Clause 21.19 (Disposals);

 

(j)                              Investments in connection with any employee share plan in an
aggregate principal amount not exceeding $8,000,000 for the Group taken as a
whole;

 

(k)                           Investments in the shares of the Company made with a view to
maintaining liquidity of such shares in the market having an aggregate market
value not exceeding $2,000,000 (or the equivalent amount in other currencies);
and

 

(l)                              other Investments in addition to those permitted by (a) to (k) above
not in excess of $10,000,000 outstanding at any time.

 

21.23               Restricted
Payments

The Company
will not, and will not permit any Subsidiary to, directly or indirectly,
declare or make, or agree to pay or make, directly or indirectly, any Restricted
Payment, or incur any obligation (contingent or otherwise) to do so, except:

 

(a)                           Subsidiaries may declare and pay dividends rateably with respect to
their Equity Interests;

 

(b)                          the Company may pay dividends consisting solely of shares of its
common stock; and

 

(c)                           the Company and any Subsidiary which is not a Material Subsidiary
may purchase, redeem or acquire any of its Equity Interests or Equity Rights
from any of its or its Subsidiaries’ present or former officers or employees
upon the death, disability or termination of employment of such officer or
employee, so long as the aggregate

 

78

 

amount of payments under this clause (c)
shall not exceed $2,000,000 in any financial year and $10,000,000 in the
aggregate since the date of this Agreement.

 

21.24              Transactions
with Affiliates

The Company
will not, and will not permit any Subsidiary to, directly or indirectly, sell,
lease or otherwise transfer any property or assets to, or purchase, lease or
otherwise acquire any property or assets from, or otherwise engage in any other
transactions with, any of its Affiliates, except:

 

(a)                           (i) transactions that are at prices and on terms and conditions not
less favorable to the Company or such Subsidiary than could be obtained on an
arm’s-length basis from unrelated third parties, (ii) in the event that such
transaction involves aggregate payments or transfers of property or services
with a fair market value in excess of $5,000,000, the terms of such transaction
shall be approved by a majority of the Company’s board of directors (including
a majority of the disinterested members thereof), the approval of which is
evidenced by a board resolution stating that the board of directors has
determined that such transaction complies with these provisions, and (iii) in
the event that such transaction involves aggregate payments or transfers of
property or services with a fair market value in excess of $20,000,000, the
Company shall, prior to the consummation thereof, obtain a favorable opinion as
to the fairness of such transaction to the Company and the relevant Subsidiary
(if any) from a financial point of view from an independent financial advisor
and provide the same to the Facility Agent;

 

(b)                          transactions between or among the Unconditional Obligors not
involving any other Affiliate and transactions among Subsidiaries not involving
any Unconditional Obligors;

 

(c)                           any Restricted Payment permitted by Clause 21.23 (Restricted
Payments); and

 

(d)                          any Investments permitted by Clause 21.22 (Restricted Investments).

 

21.25              Restrictive
Agreements

The Company
will not, and will not permit any Subsidiary to, directly or indirectly, enter
into, incur or permit to exist any agreement or other arrangement that
prohibits, restricts or imposes any condition upon:

 

(a)                           the ability of the Company or any Subsidiary to create, incur or
permit to exist any Security upon any of its property or assets, or

 

(b)                          the ability of any Subsidiary to pay dividends or other
distributions with respect to any of its Equity Interests or to make or repay
loans or advances to any member of the Group or to Guarantee Indebtedness of
any member of the Group or to transfer property to any member of the Group;

 

provided that
the foregoing shall not apply to:

 

(i)                                         conditions imposed by law or by any Finance Document;

 

(ii)                                      assets encumbered by Permitted Security as long as such restriction
applies only to the asset encumbered by such Permitted Security; and

 

79

 

(iii)                                   customary restrictions and conditions contained in agreements
relating to the sale of a Subsidiary (or the assets of a Subsidiary) pending
such sale, provided such restrictions and conditions apply only to the
Subsidiary that is to be sold (or whose assets are to be sold) and such sale is
permitted hereunder.

 

Paragraph (a) shall not apply to customary
provisions in leases and other contracts restricting the assignment thereof.

 

21.26              Amendments
or Waivers of Certain Documents; Prepayments of Indebtedness

(a)                           The Company will not, and will not permit any Subsidiary to,
directly or indirectly, amend or otherwise change (or waive) the terms of its
constitutional documents, the Settlement, the Medicare Settlement Agreement,
Material Contracts, or the documents governing any Financial Indebtedness
outstanding as of the date hereof, in each case, in a manner materially adverse
to the Lenders.

 

(b)                          The Borrower will not, and will not permit any Subsidiary to, make
(or give any notice in respect of) any voluntary or optional payment or
prepayment of any amounts scheduled to be paid under any Existing Financial
Indebtedness or the Medicare Settlement Agreement except as permitted by the
Intercreditor Agreement.

 

21.27              Financial
Year

The Company
will not change its financial year end.

 

22.                          EVENTS OF
DEFAULT

Each of the
events or circumstances set out in this Clause is an Event of Default.  For the purposes of Clauses 22.6 (Insolvency)
and 22.7 (Insolvency
Proceedings) only, a reference to Material Subsidiary will only include
a reference to the Borrower and any Material Subsidiary of the Company which
satisfies any of the 5% tests set out in paragraphs (a), (b) and (c) of the
definition of Material Subsidiary or which would satisfy any of those tests if
its EBITDA, revenues or total assets were aggregated with the EBITDA, revenues
or total assets of any other Material Subsidiary in respect of which any of the
events or circumstances set out in Clause 22.6 (Insolvency) or Clause 22.7 (Insolvency
Proceedings) has occurred and is continuing.

 

22.1                    Non-payment

An Obligor does not pay on the due date any
amount payable pursuant to a Facility Document at the place at and in the
currency in which it is expressed to be payable unless:

 

(a)                           its failure to pay is caused by administrative or technical error;
and

 

(b)                          if the payment is not of the principal amount of a Loan, payment is
made within 3 Business Days of its due date.

 

22.2                    Financial covenants

Any
requirement of Clause (Financial covenants) is not satisfied.

 

80

 

22.3                    Other
obligations

(a)                           An Obligor does not comply with any provision of the Facility
Documents (other than those referred to in Clause 22.1 (Non-payment) and Clause 22.2
(Financial
covenants)).

 

(b)                          No Event of Default under paragraph (a) above will occur if the
failure to comply is capable of remedy and is remedied within 30 days of the
Facility Agent giving notice to the Company or the Company becoming aware of
the failure to comply.

 

22.4                    Misrepresentation

Any representation
or statement made or deemed to be made by an Obligor in the Facility Documents
or any other document delivered by or on behalf of any Obligor under or in
connection with any Facility Document is or proves to have been incorrect or
misleading in any material respect when made or deemed to be made unless the
circumstances giving rise to such statement or representation being misleading
or incorrect are capable of being remedied and have been remedied within 30
days of the statement or representation.

 

22.5                    Cross
default

(a)                           Any Financial Indebtedness of any member of the Group is not paid
when due nor within any originally applicable grace period.

 

(b)                          Any Financial Indebtedness of any member of the Group is declared to
be or otherwise becomes due and payable prior to its specified maturity as a
result of an event of default (however described).

 

(c)                           Any commitment for any Financial Indebtedness of any member of the
Group is cancelled or suspended by a creditor of any member of the Group as a
result of an event of default (however described).

 

(d)                          Any creditor of any member of the Group becomes entitled to declare
any Financial Indebtedness of any member of the Group due and payable prior to
its specified maturity as a result of an event of default (however described).

 

(e)                           No Event of Default will occur under this Clause if the aggregate
amount of Financial Indebtedness or commitment for Financial Indebtedness
falling within paragraphs (a) to (d) above is less than $5,000,000 (or its
equivalent in any other currency or currencies).

 

22.6                    Insolvency

(a)                           The Company or any Material Subsidiary is unable or admits inability
to pay its debts as they fall due, suspends making payments on any of its debts
or, by reason of actual or anticipated financial difficulties, commences
negotiations with one or more of its creditors with a view to rescheduling any
of its indebtedness.

 

(b)                          The value of the assets of the Company or any Material Subsidiary is
less than its liabilities (taking into account contingent and prospective
liabilities other than in respect of

 

(i)                                         Centerpulse Dental Inc., provided that the value of its assets would
exceed its liabilities if that part of its liabilities comprising debts due to
other

 

81

 

members of the Group which are the subject of
Security in favour of the Finance Parties were excluded; and

 

(ii)                                      The Borrower.

 

(c)                           A moratorium is declared in respect of any indebtedness of the
Company or any Material Subsidiary.

 

22.7                    Insolvency
proceedings

Any corporate action, legal proceedings or
other procedure or step is taken in relation to:

 

(a)                           the suspension of payments, a moratorium of any indebtedness,
winding-up, dissolution, administration or reorganisation (by way of voluntary
arrangement, scheme of arrangement or otherwise) of the Company or any Material
Subsidiary;

 

(b)                          a composition, assignment or arrangement with any creditor of the
Company or any Material Subsidiary;

 

(c)                           the appointment of a liquidator of the Company or any Material
Subsidiary, receiver, administrator, administrative receiver, compulsory
manager or other similar officer in respect of the Company or any Material
Subsidiary or any of its assets; or

 

(d)                          enforcement of any Security over any assets of the Company or any
Material Subsidiary (save where neither the Company nor the Material Subsidiary
received notice of the enforcement of such Security),

 

or any
analogous procedure or step is taken in any jurisdiction.

 

22.8                    Creditors’
process

Any adverse
judgement expropriation, attachment, sequestration, distress or execution
affects any asset or assets of the Company or any Material Subsidiary having an
aggregate value not paid or covered by insurance of $5,000,000 is not
discharged within 30 days unless the same is being appealed in good faith by
appropriate proceedings.

 

22.9                     Ownership
of the Obligors

An Obligor
(other than the Company) is not or ceases to be a Subsidiary of the Company
other than pursuant to a Proposed Disposal.

 

22.10               Unlawfulness

It is or
becomes unlawful for an Obligor to perform any of its obligations under the
Finance Documents.

 

22.11               Repudiation

An Obligor
repudiates a Finance Document or evidences a clear intention to repudiate a
Finance Document or a Facility Document ceases to be valid and binding and in
full force and effect.

 

22.12               Material
adverse change

The occurrence, in the sole opinion of the
Majority Lenders (acting reasonably), of any material adverse change in the
business, assets, condition (financial or otherwise)

 

82

 

or prospects of the Borrower or the Obligors
(taken as a whole) from the date of this Agreement.

 

22.13               Cessation of Business

The Company or any Material Subsidiary
suspends, ceases or threatens to suspend or cease to carry on all or a
substantial part of its business.

 

22.14               Change of Control

A Change of Control occurs.

 

22.15               Purpose

The proceeds of
the Loans are used by the Borrower for any purpose other than the purposes set
out in Clause 21.10 (Use of Proceeds).

 

22.16               Audit Qualification

Any audit of the
accounts of the Company or any Obligor contains a qualification which has or
could reasonably be expected to have or indicates that there could be
circumstances which have or could reasonably be expected to have, a Material
Adverse Effect.

 

22.17               Litigation

Any material
litigation claim is made or threatened which is determined by the Majority
Lenders to have a reasonable likelihood of resulting in a settlement or adverse
judgement and if so determined or settled as claimed or threatened would have a
material adverse effect on the business, assets, condition (financial or
otherwise) or prospects of the Borrower or the Obligors (taken as a whole) from
the date of this Agreement.

 

22.18               ERISA
Event

An ERISA Event
occurs which could reasonably be expected to result in the incurrence by any
member of the Group or ERISA Affiliate of any liability, obligation, fine or
penalty in excess of $5,000,000.

 

22.19               Insurance

Any member of
the Group, permits the revocation of any policy maintained for the purpose of
complying with Clause 21.4(Insurance) or the revocation of any
payment instruction referred to in paragraphs (v) or (vi)(B) of that Clause.

 

22.20               Acceleration

On and at any time after the occurrence of an
Event of Default which is continuing the Facility Agent may, and shall if so
directed by the Majority Lenders, by notice to the Company:

 

(a)                           cancel the Total Commitments whereupon they shall immediately be
cancelled;

 

(b)                          declare that all or part of the Loans, together with accrued
interest, and all other amounts accrued or outstanding under the Finance
Documents be immediately due and payable, whereupon they shall become
immediately due and payable; and/or

 

83

 

(c)                           declare that all or part of the Loans be payable on demand,
whereupon they shall immediately become payable on demand by the Facility Agent
on the instructions of the Majority Lenders.

 

22.21               Automatic
Acceleration

If any of the
events described in Clauses 22.6 (Insolvency) and 22.7 (Insolvency Proceedings)
shall occur, the Total Commitments (if not already cancelled) shall immediately
be cancelled and the outstanding principal amount of all outstanding Loans
together with accrued interest, and all other amounts accrued or outstanding
under the Finance Documents shall become immediately due and payable, without
notice or demand, both of which are hereby waived by the Borrower.

 

84

 

SECTION 9

CHANGES TO PARTIES

 

23.                           CHANGES
TO THE LENDERS

 

23.1                     Assignments
and transfers by the Lenders

(a)                           Subject to this Clause, a Lender (the “Existing Lender”) may without
the consent of the Obligors, freely:

 

(i)                                         assign any of its rights; or

 

(ii)                                      transfer by novation any of its rights and obligations,

 

to another
bank or financial institution or to a trust, fund or other entity which is
regularly engaged in or established for the purpose of making, purchasing or
investing in loans, securities or other financial assets (the “New Lender”).

 

(b)                          Any assignment of rights or transfers of rights and obligations by
an Existing Lender shall, for purposes of Italian law, be deemed to constitute
a cessione del credito or a cessione del contratto respectively.

 

23.2                     Conditions
of assignment or transfer

(a)                           An assignment will only be effective on receipt by the Facility
Agent of written confirmation from the New Lender (in form and substance
satisfactory to the Facility Agent) that the New Lender will assume the same
obligations to the other Finance Parties as it would have been under if it was
an Original Lender and the recording of such assignment by the Facility Agent
in the Register.

 

(b)                          An assignment or transfer will only be effective if such assignment
or transfer is in respect of a Commitment of at least $1,000,000, in the case
of the Dollar Facilities or €1,000,000, in the case of the Euro Facilities (or,
if less, the entire Commitment of the relevant assignor or transferor).

 

(c)                           A transfer will only be effective if the procedure set out in Clause
23.5 (Procedure
for transfer) is complied with.

 

(d)                          If:

 

(i)                                         a Lender assigns or transfers any of its rights or obligations under
the Facility Documents or changes its Facility Office; and

 

(ii)                                      as a result of circumstances existing at the date the assignment,
transfer or change occurs, an Obligor would be obliged to make a payment to the
New Lender or Lender acting through its new Facility Office under Clause 12 (Tax gross-up
and indemnities) or Clause 13 (Increased Costs),

 

then the New
Lender or Lender acting through its new Facility Office is only entitled to
receive payment under those Clauses to the same extent as the Existing Lender
or Lender acting through its previous Facility Office would have been if the
assignment, transfer or change had not occurred.

 

85

 

23.3                     Assignment
or transfer fee

The New Lender
shall, on the date upon which an assignment or transfer takes effect, pay to
the Facility Agent (for its own account) a fee of $3,500.

 

23.4                     Limitation
of responsibility of Existing Lenders

(a)                           Unless expressly agreed to the contrary, an Existing Lender makes no
representation or warranty and assumes no responsibility to a New Lender for:

 

(i)                                         the legality, validity, effectiveness, adequacy or enforceability of
the Finance Documents or any other documents;

 

(ii)                                      the financial condition of any Obligor;

 

(iii)                                   the performance and observance by any Obligor of its obligations
under the Finance Documents or any other documents; or

 

(iv)                                  the accuracy of any statements (whether written or oral) made in or
in connection with any Finance Document or any other document,

 

and any
representations or warranties implied by law are excluded.

 

(b)                          Each New Lender confirms to the Existing Lender and the other Finance
Parties that it:

 

(i)                                         has made (and shall continue to make) its own independent
investigation and assessment of the financial condition and affairs of each
Obligor and its related entities in connection with its participation in this
Agreement and has not relied exclusively on any information provided to it by
the Existing Lender in connection with any Finance Document; and

 

(ii)                                      will continue to make its own independent appraisal of the
creditworthiness of each Obligor and its related entities whilst any amount is
or may be outstanding under the Finance Documents or any Commitment is in
force.

 

(c)                           Nothing in any Finance Document obliges an Existing Lender to:

 

(i)                                         accept a re-transfer from a New Lender of any of the rights and
obligations assigned or transferred under this Clause; or

 

(ii)                                      support any losses directly or indirectly incurred by the New Lender
by reason of the non-performance by any Obligor of its obligations under the
Finance Documents or otherwise.

 

23.5                     Procedure
for transfer

(a)                           Subject to the conditions set out in Clause 23.2 (Conditions
of assignment or transfer) a transfer is effected in accordance with
paragraph (b) below when the Facility Agent executes an otherwise duly
completed Transfer Certificate delivered to it by the Existing Lender and the
New Lender.  The Facility Agent shall,
as soon as reasonably practicable after receipt by it of a duly completed
Transfer Certificate appearing on its face to comply with the terms of this
Agreement and delivered in accordance with the terms of this Agreement, execute
that Transfer Certificate.

 

86

 

(b)                          On the Transfer Date:

 

(i)                                         to the extent that in the Transfer Certificate the Existing Lender
seeks to transfer by novation its rights and obligations under the Facility
Documents each of the Obligors and the Existing Lender shall be released from
further obligations towards one another under the Facility Documents and their
respective rights against one another under the Facility Documents shall be
cancelled (being the “Discharged Rights and Obligations”);

 

(ii)                                      each of the Obligors and the New Lender shall assume obligations
towards one another and/or acquire rights against one another which differ from
the Discharged Rights and Obligations only insofar as that Obligor and the New
Lender have assumed and/or acquired the same in place of that Obligor and the
Existing Lender;

 

(iii)                                   the Facility Agent, the Security Agent, the Arranger, the New Lender
and other Lenders shall acquire the same rights and assume the same obligations
between themselves as they would have acquired and assumed had the New Lender
been an Original Lender with the rights and/or obligations acquired or assumed
by it as a result of the transfer and to that extent the Facility Agent, the
Security Agent, the Arranger and the Existing Lender shall each be released
from further obligations to each other under the Facility Documents; and

 

(iv)                                  the New Lender shall become a Party as a “Lender”, and the rights of
the Existing Lender under the Security Documents shall inure to the benefit of
the New Lender and the Register shall be amended accordingly.

 

(c)                           Any assignment or transfer under this Clause 23 shall, for the
purposes of Italian law, be deemed to constitute a cessione del contratto.

 

23.6                     Disclosure
of information

Any Lender may disclose to any of its
Affiliates and any other person:

 

(a)                           to (or through) whom that Lender assigns or transfers (or may
potentially assign or transfer) all or any of its rights and obligations under
this Agreement;

 

(b)                          with (or through) whom that Lender enters into (or may potentially
enter into) any sub-participation in relation to, or any other transaction
under which payments are to be made by reference to, this Agreement or any
Obligor; or

 

(c)                           to whom, and to the extent that, information is required to be
disclosed by any applicable law or regulation,

 

any
information about any Obligor, the Group and the Finance Documents as that
Lender shall consider appropriate if, in relation to paragraphs (a) and (b)
above, the person to whom the information is to be given has entered into a
Confidentiality Undertaking.

 

87

 

24.                           CHANGES
TO THE OBLIGORS

 

24.1                     Assignments
and transfer by Obligors

No Obligor may
assign any of its rights or transfer any of its rights or obligations under the
Finance Documents.

 

24.2                     Additional
Guarantors

(a)                           The Company shall provide that each of its Material Subsidiaries
other than the Borrower and the Original Guarantors becomes an Additional
Guarantor within 30 days of becoming a Material Subsidiary.  That Subsidiary shall become an Additional
Guarantor when:

 

(i)                                         the Company delivers to the Facility Agent a duly completed and
executed Accession Letter; and

 

(ii)                                      the Facility Agent has received all of the documents and other
evidence listed in Part II of Schedule 2 (Conditions precedent) in relation to that
Additional Guarantor, each in form and substance satisfactory to the Facility
Agent.

 

(b)                          The Facility Agent shall notify the Company promptly upon being
satisfied that it has received (in form and substance satisfactory to it) all
the documents and other evidence listed in Part II of Schedule 2 (Conditions
precedent).

 

(c)                           Any entity incorporated or established in the Republic of France
that may become a Material Subsidiary under this Agreement in the future, shall
become an Additional Guarantor only to the extent that the obligations and
liabilities of such entity as Additional Guarantor would not or would not
reasonably be expected to constitute a misuse of corporate assets or credit as
defined under article L.242-6 3 ̊ of the French Commercial Code.

 

24.3                     Repetition
of Representations

Delivery of an
Accession Letter constitutes confirmation by the relevant Subsidiary that the
Repeating Representations are true and correct in relation to it as at the date
of delivery as if made by reference to the facts and circumstances then
existing.

 

24.4                     Resignation
of a Guarantor

(a)                           The Company may request that a Guarantor (other than the Company)
ceases to be a Guarantor by delivering to the Facility Agent a Resignation
Letter.

 

(b)                          The Facility Agent shall accept a Resignation Letter and notify the
Company and the Lenders of its acceptance if:

 

(i)                                         no Default is continuing or would result from the acceptance of the
Resignation Letter (and the Company has confirmed this is the case); and

 

(ii)                                      either that Guarantor has ceased to be a member of the Group in
accordance with the terms of this Agreement or the proviso in the definition of
Material Subsidiary shall still be satisfied or the Majority Lenders have
consented to the Company’s request.

 

88

 

SECTION 10

THE FINANCE PARTIES

 

25.                           ROLE
OF THE AGENTS AND THE ARRANGER

 

25.1                     Appointment
of the Agents

(a)                           Each other Finance Party appoints the Facility Agent to act as its
facility agent in connection with the Facilities and this Agreement and
appoints the Security Agent to act as its security agent in connection with the
Facilities and this Agreement.

 

(b)                          Each other Finance Party authorises each Agent to exercise the
rights, powers, authorities and discretions specifically given to each Agent
under or in connection with the Finance Documents together with any other
incidental rights, powers, authorities and discretions.  In particular, each Finance Party expressly
authorises each Agent to act under a conflict of interest (including a
situation in which any such Agent acts simultaneously in the name and/or on
behalf (a) of any Finance Party on the one hand, and (b) of any Obligor, on the
other hand) solely in relation to the Finance Documents.

 

(c)                           With specific reference to the Italian Pledge, each other Finance
Party hereby irrevocably appoints and authorises the Security Agent, with power
to execute, deliver and perform, including by exercise of any of its rights and
remedies thereunder, the Italian Pledge on its name and on its behalf.  Accordingly, each Finance Party confirms to
be bound by all the terms and conditions of the Italian Pledge, and expressly
grants the power to enforce it in any jurisdiction.

 

(d)                          In particular, each other Finance Party authorises the Security
Agent, with power to sub-delegate, to execute on its behalf notarial deeds
containing each of the following German-law governed share pledge agreements,
each to be entered into with the Finance Parties as pledgees, as well as any
amendments thereto, including if required in the context of a syndication or
other change of Lender:

 

(i)                                         share pledge granted by Centerpulse Ltd. in relation to its shares
in Centerpulse Germany Holding GmbH;

 

(ii)                                      share pledge granted by Centerpulse Germany Holding GmbH in relation
to its shares in Sulzer Cardiovascular GmbH;

 

(iii)                                   share pledge granted by Centerpulse Germany Holding GmbH in relation
to its shares in Centerpulse Germany GmbH; and

 

(iv)                                  share pledge granted by Centerpulse Dental Inc. in relation to 65%
of the shares in Centerpulse Dental GmbH.

 

25.2                     Duties
of the Agents

(a)                           Each Agent shall promptly forward to a Party the original or a copy
of any document which is delivered to each Agent for that Party by any other
Party.

 

89

 

(b)                          Except where a Finance Document specifically provides otherwise,
each Agent is not obliged to review or check the adequacy, accuracy or completeness
of any document it forwards to another Party.

 

(c)                           If an Agent receives notice from a Party referring to this
Agreement, describing a Default and stating that the circumstance described is
a Default, it shall promptly notify the Finance Parties.

 

(d)                          If an Agent is aware of the non-payment of any principal, interest,
commitment fee or other fee payable to a Finance Party (other than an Agent or
the Arranger) under this Agreement it shall promptly notify the other Finance
Parties.

 

(e)                           An Agent’s duties under the Finance Documents are solely mechanical
and administrative in nature.

 

25.3                     Role
of the Arranger

Except as
specifically provided in the Finance Documents, the Arranger has no obligations
of any kind to any other Party under or in connection with any Finance
Document.

 

25.4                     No
fiduciary duties

(a)                           Nothing in this Agreement constitutes an Agent or the Arranger as a
trustee or fiduciary of any other person.

 

(b)                          Neither an Agent nor the Arranger shall be bound to account to any
Lender for any sum or the profit element of any sum received by it for its own
account.

 

25.5                     Business
with the Group

Each Agent and
the Arranger may accept deposits from, lend money to and generally engage in
any kind of banking or other business with any member of the Group.

 

25.6                    Rights
and discretions of Agents

(a)                           Each Agent may rely on:

 

(i)                                         any representation, notice or document believed by it to be genuine,
correct and appropriately authorised; and

 

(ii)                                      any statement made by a director, authorised signatory or employee
of any person regarding any matters which may reasonably be assumed to be
within his knowledge or within his power to verify.

 

(b)                          Each Agent may assume (unless it has received notice to the contrary
in its capacity as Agent for the Lenders) that:

 

(i)                                         no Default has occurred (unless it has actual knowledge of a Default
arising under Clause (Non-payment));

 

(ii)                                      any right, power, authority or discretion vested in any Party or the
Majority Lenders has not been exercised; and

 

90

 

(iii)                                   any notice or request made by the Company (other than the
Utilisation Request or Selection Notice) is made on behalf of and with the
consent and knowledge of all the Obligors.

 

(c)                           Each Agent may engage, pay for and rely on the advice or services of
any lawyers, accountants, surveyors or other experts.

 

(d)                          Each Agent may act in relation to the Finance Documents through its
personnel and agents.

 

(e)                           Each Agent may disclose to any other Party any information it
reasonably believes it has received as agent under this Agreement.

 

(f)                             Notwithstanding any other provision of any Finance Document to the
contrary, neither an Agent nor the Arranger is obliged to do or omit to do
anything if it would or might in its reasonable opinion constitute a breach of
any law or regulation or a breach of a fiduciary duty or duty of
confidentiality.

 

25.7                   Majority
Lenders’ instructions

(a)                           Unless a contrary indication appears in a Finance Document, each
Agent shall (i) exercise any right, power, authority or discretion vested in it
as Agent in accordance with any instructions given to it by the Majority
Lenders (or, if so instructed by the Majority Lenders, refrain from exercising
any right, power, authority or discretion vested in it as Agent) and (ii) not
be liable for any act (or omission) if it acts (or refrains from taking any
action) in accordance with an instruction of the Majority Lenders.

 

(b)                          Unless a contrary indication appears in a Finance Document, any
instructions given by the Majority Lenders will be binding on all the Finance
Parties.

 

(c)                           Each Agent may refrain from acting in accordance with the
instructions of the Majority Lenders (or, if appropriate, the Lenders) until it
has received such security as it may require for any cost, loss or liability
(together with any associated VAT) which it may incur in complying with the
instructions.

 

(d)                          In the absence of instructions from the Majority Lenders, (or, if
appropriate, the Lenders) each Facility Agent may act (or refrain from taking
action) as it considers to be in the best interest of the Lenders.

 

(e)                           Each Facility Agent is not authorised to act on behalf of a Lender
(without first obtaining that Lender’s consent) in any legal or arbitration
proceedings relating to any Finance Document.

 

25.8                     Responsibility
for documentation

Neither Agent, nor the Arranger:

 

(a)                           is responsible for the adequacy, accuracy and/or completeness of any
information (whether oral or written) supplied by such Agent, the Arranger, an
Obligor or any other person given in or in connection with any Finance Document
or the Information Memorandum; or

 

91

 

(b)                          is responsible for the legality, validity, effectiveness, adequacy
or enforceability of any Finance Document or any other agreement, arrangement
or document entered into, made or executed in anticipation of or in connection
with any Finance Document.

 

25.9                     Exclusion
of liability

(a)                           Without limiting paragraph (b) below, each Agent will not be liable
for any action taken by it under or in connection with any Finance Document,
unless directly caused by its gross negligence or wilful misconduct.

 

(b)                          No Party (other than an Agent) may take any proceedings against any
officer, employee or agent of an Agent in respect of any claim it might have
against an Agent or in respect of any act or omission of any kind by that
officer, employee or agent in relation to any Finance Document and any officer,
employee or agent of an Agent may rely on this Clause subject to Clause (Third Party
Rights) and the provisions of the Third Parties Act.

 

(c)                           Neither Agent will be liable for any delay (or any related
consequences) in crediting an account with an amount required under the Finance
Documents to be paid by such Agent if such Agent has taken all necessary steps
as soon as reasonably practicable to comply with the regulations or operating
procedures of any recognised clearing or settlement system used by such Agent
for that purpose.

 

25.10               Lenders’
indemnity to the Agents

Each Lender
shall (in proportion to its share of the Total Commitments or, if the Total
Commitments are then zero, to its share of the Total Commitments immediately
prior to their reduction to zero) indemnify each Agent, within three Business
Days of demand, against any cost, loss or liability incurred by such Agent
(otherwise than by reason of such Agent’s gross negligence or wilful
misconduct) in acting as Agent under the Finance Documents (unless such Agent
has been reimbursed by an Obligor pursuant to a Finance Document).

 

25.11             Resignation
of the Agent

(a)                           Each Agent may resign and appoint one of its Affiliates acting
through an office as successor by giving notice to the other Finance Parties
and the Company.

 

(b)                          Alternatively each Agent may resign by giving notice to the other
Finance Parties and the Company, in which case the Majority Lenders (after
consultation with the Company) may appoint a successor Agent.

 

(c)                           If the Majority Lenders have not appointed a successor Agent in
accordance with paragraph (b) above within 30 days after notice of resignation
was given, the Agent (after consultation with the Company) may appoint a
successor Agent.

 

(d)                          The retiring Agent shall, at its own cost, make available to the
successor Agent such documents and records and provide such assistance as the
successor Agent may reasonably request for the purposes of performing its
functions as Agent under the Finance Documents.

 

92

 

(e)                           The Agent’s resignation notice shall only take effect upon the
appointment of a successor.

 

(f)                             Upon the appointment of a successor, the retiring Agent shall be
discharged from any further obligation in respect of the Finance Documents but
shall remain entitled to the benefit of this Clause.  Its successor and each of the other Parties shall have the same
rights and obligations amongst themselves as they would have had if such
successor had been an original Party.

 

(g)                          After consultation with the Company, the Majority Lenders may, by
notice to the Agent, require it to resign in accordance with paragraph (b)
above.  In this event, the Agent shall
resign in accordance with paragraph (b) above.

 

25.12             Confidentiality

(a)                           In acting as Agent for the Finance Parties, each Agent shall be
regarded as acting through its agency division which shall be treated as a
separate entity from any other of its divisions or departments.

 

(b)                          If information is received by another division or department of an
Agent, it may be treated as confidential to that division or department and
such Agent shall not be deemed to have notice of it.

 

25.13             Relationship
with the Lenders

(a)                           Each Agent shall treat each Lender as a Lender recorded in the
Register as such, entitled to payments under this Agreement and acting through
its Facility Office unless it has received not less than five Business Days
prior notice from that Lender to the contrary in accordance with the terms of
this Agreement.

 

(b)                          Each Lender shall supply each Agent with any information required by
an Agent in order to calculate the Mandatory Cost in accordance with Schedule 4
(Mandatory
Cost Formula).

 

25.14              Credit
appraisal by the Lenders

Without
affecting the responsibility of any Obligor for information supplied by it or
on its behalf in connection with any Finance Document, each Lender confirms to
each Agent and the Arranger that it has been, and will continue to be, solely
responsible for making its own independent appraisal and investigation of all
risks arising under or in connection with any Finance Document including but
not limited to:

 

(a)                           the financial condition, status and nature of each member of the
Group;

 

(b)                          the legality, validity, effectiveness, adequacy or enforceability of
any Finance Document and any other agreement, arrangement or document entered
into, made or executed in anticipation of, under or in connection with any
Finance Document;

 

(c)                           whether that Lender has recourse, and the nature and extent of that
recourse, against any Party or any of its respective assets under or in
connection with any Finance Document, the transactions contemplated by the
Finance Documents or any other agreement, arrangement or document entered into,
made or executed in anticipation of, under or in connection with any Finance
Document; and

 

93

 

(d)                          the adequacy, accuracy and/or completeness of the Information
Memorandum and any other information provided by an Agent, any Party or by any
other person under or in connection with any Finance Document, the transactions
contemplated by the Finance Documents or any other agreement, arrangement or
document entered into, made or executed in anticipation of, under or in
connection with any Finance Document.

 

25.15               Reference
Banks

If a Reference
Bank (or, if a Reference Bank is not a Lender, the Lender of which it is an
Affiliate) ceases to be a Lender, each Agent shall (in consultation with the
Company) appoint another Lender or an Affiliate of a Lender to replace that
Reference Bank.

 

25.16               Agent’s
Management Time

Any amount
payable to an Agent under Clause 14.3 (Indemnity to the Agent), sub-Clauses 16.2
to 16.4 of Clause 16 (Costs and expenses) and Clause 25.10 (Lenders’
indemnity to the Agents) shall include the cost of utilising an
Agent’s management time or other resources and will be calculated on the basis
of such reasonable daily or hourly rates as an Agent may notify to the Company
and the Lenders, and is in addition to any fee paid or payable to an Agent
under Clause 11 (Fees).

 

25.17               Deduction
from amounts payable by the Agent

If any Party
owes an amount to an Agent under the Finance Documents such Agent may, after
giving notice to that Party, deduct an amount not exceeding that amount from
any payment to that Party which such Agent would otherwise be obliged to make
under the Finance Documents and apply the amount deducted in or towards
satisfaction of the amount owed.  For
the purposes of the Finance Documents that Party shall be regarded as having
received any amount so deducted.

 

26.                          CONDUCT OF BUSINESS BY THE FINANCE PARTIES

 

No provision of this Agreement will:

 

(a)                           interfere with the right of any Finance Party to arrange its affairs
(tax or otherwise) in whatever manner it thinks fit;

 

(b)                          oblige any Finance Party to investigate or claim any credit, relief,
remission or repayment available to it or the extent, order and manner of any
claim; or

 

(c)                           oblige any Finance Party to disclose any information relating to its
affairs (tax or otherwise) or any computations in respect of Tax.

 

94

 

27.                           SHARING
AMONG THE FINANCE PARTIES

 

27.1                     Payments
to Finance Parties

If a Finance Party (a “Recovering Finance Party”)
receives or recovers any amount from an Obligor other than in accordance with
Clause 28 (Payment
mechanics) or, in the case of a Hedging Agreement or a Working
Capital Facility Agreement, other than in accordance with the payment
provisions of such agreement and applies that amount to a payment due under the
Finance Documents then:

 

(a)                           the Recovering Finance Party shall, within three Business Days,
notify details of the receipt or recovery, to the Facility Agent;

 

(b)                          the Facility Agent shall determine whether the receipt or recovery
is in excess of the amount the Recovering Finance Party would have been paid
had the receipt or recovery been received or made by the Facility Agent and
distributed in accordance with Clause 28 (Payment mechanics), or in the case of a
Hedge Counterparty or a Working Capital Provider, received in accordance with
the Hedging Agreement or Working Capital Facility Agreement to which it is a
party without taking account of any Tax which would be imposed on the Facility
Agent in relation to the receipt, recovery or distribution; and

 

(c)                           the Recovering Finance Party shall, within three Business Days of
demand by the Facility Agent, pay to the Facility Agent an amount (the “Sharing
Payment”) equal to such receipt or recovery less any amount which the Facility
Agent determines may be retained by the Recovering Finance Party as its share
of any payment to be made, in accordance with Clause 28.5 (Partial payments).

 

27.2                     Redistribution
of payments

The Facility
Agent shall treat the Sharing Payment as if it had been paid by the relevant
Obligor and distribute it between the Finance Parties (other than the
Recovering Finance Party) in accordance with Clause 28.5 (Partial payments).

 

27.3                     Recovering
Finance Party’s rights

(a)                           On a distribution by the Facility Agent under Clause 27.2 (Redistribution
of payments), the Recovering Finance Party will be subrogated to the
rights of the Finance Parties which have shared in the redistribution.

 

(b)                          If and to the extent that the Recovering Finance Party is not able
to rely on its rights under paragraph (a) above, the relevant Obligor shall be
liable to the Recovering Finance Party for a debt equal to the Sharing Payment
which is immediately due and payable.

 

27.4                     Reversal
of redistribution

If any part of the Sharing Payment received
or recovered by a Recovering Finance Party becomes repayable and is repaid by
that Recovering Finance Party, then:

 

(a)                           each Finance Party which has received a share of the relevant
Sharing Payment pursuant to Clause 27.2 (Redistribution of payments) shall, upon
request of the Facility Agent, pay to the Facility Agent for account of that
Recovering Finance Party an amount equal to the appropriate part of its share
of the Sharing Payment (together with an amount as is necessary to reimburse
that Recovering Finance Party

 

95

 

for its proportion of any interest on the
Sharing Payment which that Recovering Finance Party is required to pay); and

 

(b)                          that Recovering Finance Party’s rights of subrogation in respect of
any reimbursement shall be cancelled and the relevant Obligor will be liable to
the reimbursing Finance Party for the amount so reimbursed.

 

27.5                     Exceptions

(a)                           This Clause shall not apply to the extent that the Recovering
Finance Party would not, after making any payment pursuant to this Clause, have
a valid and enforceable claim against the relevant Obligor.

 

(b)                          A Recovering Finance Party is not obliged to share with any other
Finance Party any amount which the Recovering Finance Party has received or
recovered as a result of taking legal or arbitration proceedings, if:

 

(i)                                         it notified that other Finance Party of the legal or arbitration
proceedings; and

 

(ii)                                      that other Finance Party had an opportunity to participate in those
legal or arbitration proceedings but did not do so as soon as reasonably
practicable having received notice and did not take separate legal or
arbitration proceedings.

 

96

 

SECTION 11

ADMINISTRATION

 

28.                           PAYMENT
MECHANICS

 

28.1                     Payments
to the Facility Agent

(a)                           On each date on which an Obligor or a Lender is required to make a payment
under a Facility Document, the Obligor or Lender shall make the same available
to the Facility Agent (unless a contrary indication appears in a Facility
Document) for value on the due date at the time and in such funds specified by
the Facility Agent as being customary at the time for settlement of
transactions in dollars or euros, as the case may be, in the place of payment.

 

(b)                          Payment shall, in relation to dollars, be made to such account in
New York or, in relation to euro, in a principal financial centre in a
Participating Member State or London with such bank as the Facility Agent
specifies.

 

28.2                     Distributions
by the Facility Agent

Each payment
received by the Facility Agent under the Finance Documents for another Party
shall, subject to Clause 28.3 (Distributions to an Obligor) and Clause
28.4 (Clawback)
be made available by the Facility Agent as soon as practicable after receipt to
the Party entitled to receive payment in accordance with this Agreement (in the
case of a Lender, for the account of its Facility Office), to such account as
that Party may notify to the Facility Agent by not less than five Business
Days’ notice with a bank in New York in relation to dollars or, in relation to
euro, in the principal financial centre of a Participating Member State or
London.

 

28.3                     Distributions
to an Obligor

The Facility
Agent may (with the consent of the Obligor or in accordance with Clause 29 (Set-off))
apply any amount received by it for that Obligor in or towards payment (on the
date and in the currency and funds of receipt) of any amount due from that
Obligor under the Finance Documents or in or towards purchase of any amount of
any currency to be so applied.

 

28.4                     Clawback

(a)                           Where a sum is to be paid to the Facility Agent under the Finance
Documents for another Party, the Facility Agent is not obliged to pay that sum
to that other Party (or to enter into or perform any related exchange contract)
until it has been able to establish to its satisfaction that it has actually
received that sum.

 

(b)                          If the Facility Agent pays an amount to another Party and it proves
to be the case that the Facility Agent had not actually received that amount,
then the Party to whom that amount (or the proceeds of any related exchange
contract) was paid by the Facility Agent shall on demand refund the same to the
Facility Agent together with interest on that amount from the date of payment
to the date of receipt by the Facility Agent, calculated by the Facility Agent
to reflect its cost of funds.

 

28.5                     Partial
payments

(a)                           If the Facility Agent receives a payment that is insufficient to
discharge all the amounts then due and payable by an Obligor under the Finance
Documents, the

 

97

 

Facility Agent shall apply that payment
towards the obligations of that Obligor under the Finance Documents in the
following order:

 

(i)                                         first, in or towards payment pro rata of any unpaid fees, costs and
expenses of the Facility Agent or the Security Agent under the Finance
Documents;

 

(ii)                                      secondly, in or towards payment pro rata of any accrued interest, fee or
commission due but unpaid under the Finance Documents;

 

(iii)                                   thirdly, in or towards payment pro rata of any principal due but unpaid
under the Finance Documents; and

 

(iv)                                  fourthly, in or towards payment pro rata of any other sum due but unpaid
under the Finance Documents.

 

(b)                          The Facility Agent shall, if so directed by the Majority Lenders,
vary the order set out in paragraphs (a)(ii) to (iv) above.

 

(c)                           Paragraphs (a) and (b) above will override any appropriation made by
an Obligor.

 

28.6                     No
set-off by Obligors

All payments
to be made by an Obligor under the Finance Documents shall be calculated and be
made without (and free and clear of any deduction for) set-off or counterclaim.

 

28.7                     Business
Days

(a)                           Any payment which is due to be made on a day that is not a Business
Day shall be made on the next Business Day in the same calendar month (if there
is one) or the preceding Business Day (if there is not).

 

(b)                          During any extension of the due date for payment of any principal or
Unpaid Sum under this Agreement interest is payable on the principal or Unpaid
Sum at the rate payable on the original due date.

 

28.8                     Currency
of account

(a)                           Subject to paragraphs (b) and (c) below, dollars is the currency of
account and payment for any sum due from an Obligor under any Facility Document
in relation to the Dollar Facilities and euros is the currency of account and
payment for any sum due from an Obligor under any Facility Document in relation
to the Euro Facilities.

 

(b)                          Each payment in respect of costs, expenses or Taxes shall be made in
the currency in which the costs, expenses or Taxes are incurred.

 

(c)                           Any amount expressed to be payable in a currency other than US
dollars or euros shall be paid in that other currency.

 

28.9                     Change
of currency

(a)                           Unless otherwise prohibited by law, if more than one currency or
currency unit are at the same time recognised by the central bank of any
country as the lawful currency of that country, then:

 

98

 

(i)                                         any reference in the Facility Documents to, and any obligations
arising under the Facility Documents in, the currency of that country shall be
translated into, or paid in, the currency or currency unit of that country
designated by the Facility Agent (after consultation with the Company); and

 

(ii)                                      any translation from one currency or currency unit to another shall
be at the official rate of exchange recognised by the central bank for the
conversion of that currency or currency unit into the other, rounded up or down
by the Facility Agent (acting reasonably).

 

(b)                          If a change in any currency of a country occurs, this Agreement
will, to the extent the Facility Agent (acting reasonably and after
consultation with the Company) specifies to be necessary, be amended to comply
with any generally accepted conventions and market practice in the Relevant
Interbank Market and otherwise to reflect the change in currency.

 

29.                           SET-OFF

 

A Finance
Party may set off any matured obligation due from an Obligor under the Finance
Documents (to the extent beneficially owned by that Finance Party) against any
matured obligation owed by that Finance Party to that Obligor, regardless of
the place of payment, booking branch or currency of either obligation.  If the obligations are in different
currencies, the Finance Party may convert either obligation at a market rate of
exchange in its usual course of business for the purpose of the set-off.

 

30.                           NOTICES

 

30.1                     Communications
in writing

Any
communication to be made under or in connection with the Finance Documents
shall be made in writing and, unless otherwise stated, may be made by fax,
letter or telex.

 

30.2                     Addresses

The address, fax number and telex number (and
the department or officer, if any, for whose attention the communication is to
be made) of each Party for any communication or document to be made or
delivered under or in connection with the Finance Documents is:

 

(a)                           in the case of the Company, that identified with its name below;

 

(b)                          in the case of each Lender or any other Original Obligor, that
notified in writing to the Facility Agent prior to the date on which it becomes
a Party;

 

(c)                           in the case of the Facility Agent, that identified with its name
below, and

 

(d)                          in the case of the Security Agent, that identified with its name
below.

 

Or any
substitute address, fax number, telex number or department or officer as the
Party may notify to the Facility Agent (or the Facility Agent may notify to the
other Parties, if a change is made by the Facility Agent) by not less than five
Business Days’ notice.

 

99

 

30.3                     Delivery

(a)                           Any communication or document made or delivered by one person to
another under or in connection with the Finance Documents will only be
effective:

 

(i)                                         if by way of fax, when received in legible form; or

 

(ii)                                      if by way of letter, when it has been left at the relevant address
or five Business Days or if any Obligor five Borrower Business Days after being
deposited in the post postage prepaid in an envelope addressed to it at that
address; or

 

(iii)                                   if by way of telex, when despatched, but only if, at the time of
transmission, the correct answerback appears at the start and at the end of the
sender’s copy of the notice;

 

and, if a
particular department or officer is specified as part of its address details
provided under Clause (Addresses), if addressed to that
department or officer.

 

(b)                          Any communication or document to be made or delivered to the
Facility Agent will be effective only when actually received by the Facility
Agent and then only if it is expressly marked for the attention of the
department or officer identified with the Facility Agent’s signature below (or
any substitute department or officer as the Facility Agent shall specify for
this purpose).

 

(c)                           All notices from or to an Obligor shall be sent through the Facility
Agent.

 

(d)                          Any communication or document made or delivered to the Company in
accordance with this Clause will be deemed to have been made or delivered to
each of the Obligors.

 

30.4                     Notification
of address, fax number and telex number

Promptly upon
receipt of notification of an address, fax number and telex number or change of
address, fax number or telex number pursuant to Clause 30.2 (Addresses)
or changing its own address, fax number or telex number, the Facility Agent
shall notify the other Parties.

 

30.5                     Electronic
communication

(a)                           Any communication to be made between the Facility Agent and a Lender
under or in connection with the Finance Documents may be made by electronic
mail or other electronic means, if the Facility Agent and the relevant Lender:

 

(i)                                         agree that, unless and until notified to the contrary, this is to be
an accepted form of communication;

 

(ii)                                      notify each other in writing of their electronic mail address and/or
any other information required to enable the sending and receipt of information
by that means; and

 

(iii)                                   notify each other of any change to their address or any other such
information supplied by them.

 

100

 

(b)                          Any electronic communication made between the Facility Agent and a
Lender will be effective only when actually received in readable form and in
the case of any electronic communication made by a Lender to the Facility Agent
only if it is addressed in such a manner as the Facility Agent shall specify
for this purpose with confirmation of receipt.

 

30.6                     English
language

(a)                           Any notice given under or in connection with any Facility Document
must be in English.

 

(b)                          All other documents provided under or in connection with any Finance
Document must be:

 

(i)                                         in English; or

 

(ii)                                      if not in English, and if so required by the Facility Agent,
accompanied by a certified English translation and, in this case, the English
translation will prevail unless the document is a constitutional, statutory or
other official document.

 

31.                           CALCULATIONS
AND CERTIFICATES

 

31.1                     Accounts

In any
litigation or arbitration proceedings arising out of or in connection with a
Finance Document, the entries made in the accounts maintained by a Finance
Party are prima
facie evidence of the matters to which they relate.

 

31.2                     Certificates
and Determinations

Any
certification or determination by a Finance Party of a rate or amount under any
Finance Document is, in the absence of manifest error, conclusive evidence of
the matters to which it relates.

 

31.3                     Day
count convention

Any interest,
commission or fee accruing under a Facility Document will accrue from day to
day and is calculated on the basis of the actual number of days elapsed and a
year of 360 days or, in any case where the practice in the Relevant Interbank
Market differs, in accordance with that market practice.

 

32.                           PARTIAL
INVALIDITY

 

If, at any
time, any provision of the Facility Documents is or becomes illegal, invalid or
unenforceable in any respect under any law of any jurisdiction, neither the
legality, validity or enforceability of the remaining provisions nor the
legality, validity or enforceability of such provision under the law of any
other jurisdiction will in any way be affected or impaired.

 

33.                           REMEDIES
AND WAIVERS

 

No failure to
exercise, nor any delay in exercising, on the part of any Finance Party, any
right or remedy under the Facility Documents shall operate as a waiver, nor
shall any single or partial exercise of any right or remedy prevent any further
or other

 

101

 

exercise or
the exercise of any other right or remedy. 
The rights and remedies provided in this Agreement are cumulative and
not exclusive of any rights or remedies provided by law.

 

34.                           AMENDMENTS
AND WAIVERS

 

34.1                     Required
consents

(a)                           Subject to Clause 34.2 (Exceptions) any term of the Finance
Documents (other than the Commitment Letter, the Fee Letters, the Hedging
Agreements and the Working Capital Facility Agreements which may be amended by
their respective parties without the consent of the Lenders) may be amended or
waived only with the consent of the Majority Lenders and the Obligors and any such
amendment or waiver will be binding on all Parties.

 

(b)                          The Facility Agent may effect, on behalf of any Finance Party, any
amendment or waiver permitted by this Clause.

 

34.2                     Exceptions

(a)                           An amendment or waiver that has the effect of changing or which
relates to:

 

(i)                                         the definition of “Majority Lenders” in Clause 1.1 (Definitions);

 

(ii)                                      an extension to the date of any scheduled payment of any amount
under the Finance Documents;

 

(iii)                                   a reduction in the Margin or a reduction in the amount of any scheduled
payment of principal, interest, fees or commission payable;

 

(iv)                                  an increase in or an extension of any Commitment;

 

(v)                                     a change to the Borrower or Guarantors other than in accordance with
Clause 24 (Changes
to the Obligors);

 

(vi)                                  any provision which expressly requires the consent of all the
Lenders; or

 

(vii)                               Clause 25 (Finance Parties’ rights and obligations),
Clause 23 (Changes
to the Lenders) or this Clause 34;

 

(viii)                            release of all or substantially all of the Security granted under
the Security Documents (other than in connection with a Disposal);

 

shall not be
made without the prior consent of all the Lenders.

 

(b)                          An amendment or waiver which relates to the rights or obligations of
an Agent or the Arranger may not be effected without the consent of that Agent
or the Arranger.

 

35.                           REPLACEMENT
OF A LENDER

 

35.1                     Transfer

If at any time
a Lender becomes a “Non-Consenting Lender” an “Increased
Cost Lender” or an “Illegality Lender” (as defined below) then
the Company may, on 5 Business Days prior written notice to the Facility Agent
and such Lender, replace

 

102

 

such Lender by
requiring such Lender to (and such Lender shall) transfer pursuant to Clause 23
(Changes
to the Lenders) all of its rights and obligations under this
Agreement to a Lender or New Lender selected by the Company and which is
reasonably acceptable to the Facility Agent, which confirms its willingness to
assume and does assume all the obligations of the transferring Lender for a
purchase price equal to the outstanding principal amount of such Lender’s
participation in the outstanding Loans and all accrued interest and fees and
other amounts payable hereunder.

 

35.2                     Conditions

The
replacement of a Lender pursuant to this provision shall be subject to the
following conditions:

 

(a)                           the Company shall have no right to replace the Facility Agent;

 

(b)                          neither the Facility Agent nor any Lender shall have any obligation
to the Company to find a replacement New Lender;

 

(c)                           in relation to a Non-Consenting Lender such replacement must take
place no later than 180 days after the date the Non-Consenting Lender notified
the Company and the Facility Agent it did not agree to any requested consent,
waiver or amendment to the Finance Documents; and

 

(d)                          in no event shall the Lender hereby replaced be required to pay or
surrender to such replacement Lender any of the fees received by such Lender
hereby replaced;

 

35.3                     Waiver
and amendment

In the event
that:

 

(a)                           the Company or the Facility Agent has requested the Lender to
consent to a waiver or amendment of any provisions of the Finance Documents;

 

(b)                          the waiver or amendment in question requires the consent of all
Lenders; and

 

(c)                           Majority Lenders have consented to such waiver or amendment;

 

then any
Lender who does not agree to such waiver or amendment shall be deemed a “Non-Consenting
Lender”.

 

In the event
that the Facility Agent served a notice under Clause 7.1(b) that any Lender’s
participation in the Loans must be repaid the relevant Lender shall be deemed
an “Illegality
Lender”.

 

In the event
that any additional payment is required under Clause 12 (Tax gross up and indemnities),
Clause 13 (Increased
costs) or paragraph 3 of Schedule 4 (Mandatory Costs Formula) due
to the participation in the Loans by any Lender, the relevant Lender shall be
deemed an “Increased Cost Lender”.

 

103

 

36.                           COUNTERPARTS

 

Each Finance
Document may be executed in any number of counterparts, and this has the same
effect as if the signatures on the counterparts were on a single copy of the
Finance Document.

 

104

 

SECTION 12

 

GOVERNING LAW AND
ENFORCEMENT

 

37.                           GOVERNING LAW

 

This Agreement
is governed by English law.

 

38.                           ENFORCEMENT

 

38.1                     Jurisdiction

(a)                           The courts of England have exclusive jurisdiction to settle any
dispute arising out of or in connection with this Agreement (including a
dispute regarding the existence, validity or termination of this Agreement) (a
“Dispute”).

 

(b)                          The Parties agree that the courts of England are the most
appropriate  and convenient courts to
settle Disputes and accordingly no Party will argue to the contrary.

 

(c)                           This Clause 38.1 is for the benefit of the Finance Parties
only.  As a result, no Finance Party
shall be prevented from taking proceedings relating to a Dispute in any other
courts with jurisdiction.  To the extent
allowed by law, the Finance Parties may take concurrent proceedings in any number
of jurisdictions.

 

38.2                     Service
of process

Without prejudice to any other mode of
service allowed under any relevant law, each Obligor (other than an Obligor
incorporated in England and Wales):

 

(a)                           irrevocably appoints Centerpulse (UK) Ltd as its agent for service
of process in relation to any proceedings before the English courts in
connection with any Finance Document; and

 

(b)                          agrees that failure by a process Facility Agent to notify the
relevant Obligor of the process will not invalidate the proceedings concerned.

 

This Agreement has been entered
into on the date stated at the beginning of this Agreement.

 

105

 

SCHEDULE
1

THE
ORIGINAL PARTIES

 

Part I

The Original
Obligors

 

Name of Borrower

 

Centerpulse Orthopedics Inc.

 

Name of Original Guarantor

 

Centerpulse
Ltd.

 

Centerpulse
Orthopedics Ltd.

 

Centerpulse
Germany GmbH

 

Centerpulse
France SA

 

Sulzer
Carbomedics Inc.

 

Centerpulse
Orthopedics Inc.

 

Centerpulse
Spine-Tech Inc.

 

Centerpulse
Dental Inc.

 

Centerpulse
USA Holding Co.

 

Centerpulse USA Inc.

 

Centerpulse
Orthopedics (Switzerland) AG

 

Centerpulse
Netherlands BV

 

Sulzer
Orthopädie GmbH

 

Sulzer
Orthopedics Italia S.p.A.

 

Centerpulse
(UK) Ltd.

 

Centerpulse
Ibérica SA

 

106

 

Part II

The Original
Lenders

 

 

TRANCHE A
DOLLAR COMMITMENTS

 

	
  Name of Original Lender

  	
   

  	
  Commitment

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Sun Trust Bank

  	
   

  	
  U.S.$

  	
  15,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ING Capital LLC

  	
   

  	
  U.S.$

  	
  10,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  UBS AG, Stamford Branch

  	
   

  	
  U.S.$

  	
  66,352,100

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  U.S.$

  	
  91,352,100

  	
   

  

 

TRANCHE A EURO
COMMITMENTS

 

	
  Name of Original Lender

  	
   

  	
  Commitment

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  HVB Bank Ireland

  	
   

  	
  €

  	
  14,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ABN AMRO Bank N.V., Paris
  Branch

  	
   

  	
  €

  	
  13,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Credit Suisse

  	
   

  	
  €

  	
  10,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Credit Lyonnais S.A.

  	
   

  	
  €

  	
  7,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Zürcher Kantonalbank

  	
   

  	
  €

  	
  7,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  United Bank of Kuwait plc

  	
   

  	
  €

  	
  3,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  UBS AG, Stamford Branch

  	
   

  	
  €

  	
  109,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  €

  	
  163,000,000

  	
   

  

 

TRANCHE B
DOLLAR COMMITMENTS

 

	
  Name of Original Lender

  	
   

  	
  Commitment

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Sun Trust Bank

  	
   

  	
  U.S.$

  	
  10,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  General Electric Capital Corporation

  	
   

  	
  U.S.$

  	
  15,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ING Capital LLC

  	
   

  	
  U.S.$

  	
  10,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  UBS AG, Stamford Branch

  	
   

  	
  U.S.$

  	
  240,990,400

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  U.S.$

  	
  275,990,400

  	
   

  

 

 

107

 

TRANCHE B EURO
COMMITMENTS

 

	
  Name of Original Lender

  	
   

  	
  Commitment

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Sun Trust Bank

  	
   

  	
  €

  	
  15,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HVB Bank Ireland

  	
   

  	
  €

  	
  8,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ABN AMRO Bank N.V., Paris Branch

  	
   

  	
  €

  	
  9,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Credit Suisse

  	
   

  	
  €

  	
  9,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Credit Lyonnais S.A.

  	
   

  	
  €

  	
  6,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Zürcher Kantonalbank

  	
   

  	
  €

  	
  6,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  United Bank of Kuwait plc

  	
   

  	
  €

  	
  6,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  UBS AG, Stamford Branch

  	
   

  	
  €

  	
  51,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  €

  	
  112,000,000

  	
   

  

 

108

 

SCHEDULE
2

CONDITIONS
PRECEDENT

 

Part I

Conditions
Precedent to Initial Utilisation

 

1.                                 Original
Obligors

 

(a)                           A copy of the constitutional documents of each Original Obligor
(including any amendment required in order to be able to enter into the
Facility Documents to which it is a party).

 

(b)                          A copy of a resolution of the board of directors of each Original
Obligor:

 

(i)                                         approving the terms of, and the transactions contemplated by, the
Finance Documents to which it is a party and resolving that it execute the
Finance Documents to which it is a party;

 

(ii)                                      authorising a specified person or persons to execute the Finance
Documents to which it is a party on its behalf; and

 

(iii)                                   authorising a specified person or persons, on its behalf, to sign
and/or deliver all documents and notices (including, if relevant, the
Utilisation Request and Selection Notice) to be signed and/or delivered by it
under or in connection with the Finance Documents to which it is a party.

 

(c)                                  A specimen of the signature of each person authorised by the
resolution referred to in paragraph (b) above.

 

(d)                                 A copy of a resolution signed by all the holders of the issued
shares in each Original Guarantor other than the Company, approving the terms
of, and the transactions contemplated by, the Finance Documents to which the
Original Guarantor is a party.

 

(e)                                  A certificate of the Obligor (signed by a director or authorised
officer) confirming that borrowing or guaranteeing, as appropriate, the Total
Commitments would not cause any borrowing, guaranteeing or similar limit
binding on it to be exceeded.

 

(f)                                    A certificate of an authorised signatory of the relevant Original
Obligor certifying that each copy document relating to it specified in this
Part I of Schedule 2 is correct, complete and in full force and effect as at a
date no earlier than the date of this Agreement.

 

2.                                Legal
opinions

(a)                           A legal opinion of Cleary, Gottlieb, Steen & Hamilton, legal
advisers to the Arranger and the Agents in England, substantially in the form
distributed to the Original Lenders prior to signing this Agreement.

 

(b)                          If an Original Obligor is incorporated in a jurisdiction other than
England and Wales, either (i) a legal opinion of the legal advisers to the
Arranger and the Agent or (ii) if customary practice in such jurisdictions, a
legal opinion from the legal advisers to

 

109

 

that Original Obligor in the relevant
jurisdiction or a combination of the above (without overlap).

 

(c)                           US Security Interest opinion by US counsel to the Borrower
substantially in the form distributed to the Original Lenders prior to signing
this Agreement.

 

3.                                Other
documents and evidence

(a)                           Evidence that any process agent referred to in Clause 38.2 (Service of
process), if not an Original Obligor, has accepted its appointment.

 

(b)                          A copy of any other Authorisation or other document, opinion or
assurance which the Facility Agent considers to be necessary or desirable (if
it has notified the Company accordingly) in connection with the entry into and
performance of the transactions contemplated by any Finance Document or for the
validity and enforceability of any Finance Document.

 

(c)                           The Original Financial Statements of each Original Obligor.

 

(d)                          Evidence that the fees, costs and expenses then due from the Company
pursuant to Clause 11 (Fees) and Clause 16 (Costs and expenses) have
been paid or will be paid by or on the first Utilisation Date.

 

(e)                           The obligations of the Company and the Borrower under the Commitment
Letter and each Fee Letter shall have been complied with by the Company and the
Borrower and be in full force and effect and the Arranger shall have agreed
that the conditions set out in the Commitment Letter have been satisfied.

 

(f)                             Confirmation satisfactory to the Facility Agent that: (i) the
Company has received net proceeds from the Rights Issue of at least
US$157,500,000 (after payment of up to US$ 7,500,000 in fees and expenses)
taking into account any hedging entered into in relation thereto; (ii) such net
proceeds are held in the Cash Collateral Account in an amount which is (when
added to the Loans) sufficient to pay to the Settlement Trust the amount
referred to in sub paragraph (iii) below, and all fees costs and expenses
agreed by the Facility Agent; and (iii) an irrevocable instruction has been
sent (which instruction shall be given in the Utilisation Request) by the
Company to the Facility Agent instructing it to transfer $722,252,807.08 (as
such amount may be adjusted after the date hereof in accordance with the terms
of the Settlement) comprising amounts credited to the Cash Collateral Account
and the proceeds of the Loans, to the Settlement Trust in accordance with the
terms of the Settlement Agreement.

 

(g)                          Approval satisfactory to the Facility Agent shall have been given by
the United States of America with respect to the Facility Documents pursuant to
the Medicare Security Agreement and the subordination of the claims and
security of the United States of America to the claims and Security of the
Lenders pursuant to the Intercreditor Agreement.

 

(h)                          Execution of the Working Capital Facility Agreements in a form and
substance satisfactory to the Facility Agent (acting reasonably).

 

110

 

(i)                              Confirmation that the CCI has not been issued.

 

(j)                              The Facility Agent having received, reviewed, and been satisfied
with the following information:

 

(i)                                         audited consolidated balance sheets and related statements of
income, stockholders’ equity and cash flows of the Company for each of the
three latest Fiscal Years ended prior to the Utilisation Date and unaudited
consolidated balance sheets and related statements of income (including sales
and EBITDA by business unit as reported by the Company), stockholders’ equity
and cash flows of the Company for the 12 months ended as of June 30, 2002;

 

(ii)                                      unaudited consolidated balance sheets and related statements of
income, stockholders’ equity and cash flows of the Company for each fiscal
quarter since the end of the last Fiscal Year prior to the Utilisation Date and
for the comparable periods of the preceding Fiscal Year;

 

(iii)                                   pro forma consolidated financial statements of the Company for the
last Fiscal Year for which audited financial statements are required pursuant
to clause (i) and each subsequent fiscal quarter prior to the Utilisation Date
and for the comparable periods of the preceding Fiscal Year, after giving
effect to the transactions contemplated hereby, and

 

(iv)                                  financial performance forecasts for the Company and its consolidated
subsidiaries for the period up to and including period ending December 31,
2007.

 

The financial
statements referred to in clauses (i), (ii) and (iii) above shall be prepared
on a basis consistent in all material respects with the projections and
forecasts provided to the Lenders.  All
financial information required under subparagraphs (i) and (iii) of this
paragraph (j) shall be prepared in accordance with IAS reconciled to GAAP (in
accordance with SEC reporting requirements).

 

4.                                Security
Documents

4.1                           U.S.
Security Documents

 

(a)                           Security Agency Agreement

 

(b)                          The Intercreditor Agreement

 

(c)                           The U.S. Security Agreement

 

(d)                          The U.S. Intellectual Property Security Agreements

 

(e)                           Each U.S. Securities Account Control Agreement

 

(f)                             Each U.S. Deposit Account Control Agreement

 

(g)                          Each U.S. Issuer Control Agreement

 

(h)                          Each U.S. Commodity Account Control Agreement, if any

 

111

 

(i)                              Satisfaction of the collateral delivery requirements set forth in
Article 3 of the U.S. Security Agreement.

 

(j)                              The Grantors (as defined in the U.S. Security Agreement) shall have
authorised, executed and/or delivered or caused to be delivered each of the
following to the Security Agent:

 

(i)                                         UCC Financing Statements (Form UCC-1 or UCC-2 or other form, as
appropriate) in appropriate form and substance for filing under the UCC and
such other documents under applicable requirements of law in each jurisdiction
as may be necessary or appropriate to perfect, protect and establish the first
priority nature of the liens created, or purported to be created, by the
Security Documents;

 

(ii)                                      Certified copies of Requests for Information (Form UCC-11), tax
lien, judgment lien, bankruptcy and pending lawsuit searches, and intellectual
property record searches conducted in the United States Patent and Trademark
Office or the United States Copyright Office or equivalent reports or lien
search reports, each of a recent date listing all effective financing
statements, lien notices or comparable documents that name any Obligor as
debtor and that are filed in those state and county jurisdictions in which any
of the property of any such Obligor is located, the state and county
jurisdictions in which any such Obligor’s principal place of business is
located and the state and county jurisdictions in which any such Obligor is
organized and copies of such requests, searches and reports that the Security
Agent may reasonably request, in all such cases, none of which encumber the
Security covered or intended to be covered by the Security Documents other than
those relating to Permitted Security) acceptable to the Security Agent);

 

(iii)                                   Evidence that the forms necessary for all recordings and filings of,
or with respect to, the U.S. Security Agreement and the execution and/or
delivery of such other security and other documents and consents of
counterparties to contracts, and the taking of all actions as may be necessary
or, in the reasonable opinion of the Security Agent, desirable, to perfect,
protect and establish the first priority nature of the liens created, or
purported to be created, by the U.S. Security Agreement, except for any of the
foregoing to be provided after the date hereof have been prepared and been
executed and delivered by all parties thereto, if applicable, in each case in a
form and substance satisfactory to the Security Agent and, if applicable, have
been or will, at the appropriate time be filed or recorded in accordance with
all applicable laws.

 

(iv)                                  Filings with respect to the Material Intellectual Property (as such
term is defined in the U.S. Security Agreement) in appropriate form and
substance for filing with the U.S. Patent and Trademark Office and such other
documents under applicable requirements of law as may be necessary or
appropriate to record the Security granted to the Security Agent, and to
perfect, protect and establish the first priority nature of the liens created
by,

 

112

 

or purported to be created by, the Security
Documents, in such Material Intellectual Property, including the filing of any
U.S. Patent Security Agreement and U.S. Trademark Security Agreement, in each
case together with an appropriately completed recordation form;

 

(v)                                     Payment by the Obligors to the Security Agent of an amount
equivalent to all applicable recording taxes, fees, charges, costs and expenses
required for the recording of the Security Documents; and

 

(vi)                                  The Perfection Certificate referred to in the U.S. Security
Agreement.

 

(k)                           Mortgages

 

(i)                                         Property in Austin, Texas owned by Centerpulse Orthopedics Inc.

 

(ii)                                      Property in Edina, Minnesota owned by Centerpulse Spine-Tech Inc.

 

(l)                              Satisfactory reports of Uniform Commercial Code, tax lien and
judgment searches conducted by a search firm acceptable to the Security Agent
with respect to the Mortgaged Properties, such searches to be conducted in such
locations as the Security Agent shall have requested;

 

(m)                        Certificates of insurance on ACORD Form 27, demonstrating insurance
coverage in respect of the Mortgaged Properties in compliance with the terms,
provisions and conditions set forth in this Agreement.  Such certificates shall indicate that the
Security Agent is named as additional insured on each liability policy, and
that each casualty policy and rental interruption policy contains a loss payee
endorsement in favor of Security Agent;

 

(n)                          A marked, signed commitment to issue or a pro-forma version of a
Qualified Title Insurance Policy, with respect to each of the Mortgaged
Properties, listing only such exceptions as are reasonably satisfactory to the
Security Agent;

 

(o)                          Title affidavits relating to each of the Qualified Title Insurance
Policies in form and substance reasonably satisfactory to Security Agent.

 

4.2                           U.K.
Security Documents

 

(a)           The Mortgage of Shares in respect of:

 

(i)                                         100% of the shares in Centerpulse (UK) Ltd held by Centerpulse Ltd;

 

(ii)                                      100% of the shares in Centerpulse (UK) Holdings Ltd held by
Centerpulse Ltd; and

 

(iii)                                   65% of the shares in Sulzer Carbomedics UK Ltd held by Sulzer
Carbomedics Inc.

 

(b)           The Debenture between Centerpulse
(UK) Ltd and the Security Agent.

 

113

 

4.3                          French
Security Documents

 

(a)                            The share pledge in
respect of 65% of the shares in Sulzer Cardiovascular SA held by Sulzer
Carbomedics Inc. and other associated documents (convention de nantissement de compte
d’instruments financiers, déclaration de nantissement de comptes d’instruments
financiers, attestation de nantissement (Sulzer Cardiovascular SA)).

 

(b)                           The share pledge in
respect of the shares in Centerpulse France SA held by Centerpulse Ltd. and
other associated documents (convention de nantissement de compte d’instruments
financiers, déclaration de nantissement de comptes d’instruments financiers,
attestation de nantissement (Centerpulse France SA)).

 

(c)                            The share pledge in
respect of 65% of the shares in Centerpulse Dental SARL held by Centerpulse
Dental Inc.

 

(d)                          The share pledge in
respect of the shares in Centerpulse Ouest SARL held by Centerpulse France SA.

 

(e)                           The share pledge in
respect of the shares in Centerpulse Sud-Ouest SARL held by Centerpulse France
SA.

 

(f)                             The share pledge in
respect of the shares in Centerpulse Centre SARL held by Centerpulse France SA.

 

(g)                          The share pledge in
respect of the shares in Centerpulse Nord SARL held by Centerpulse France SA.

 

(h)                          The share pledge in
respect of the shares in Centerpulse Industrie SARL held by Centerpulse France
SA.

 

(i)                              The share pledge in
respect of the shares in Centerpulse Industrie SARL held by Centerpulse Ouest
SARL.

 

(j)                              The share pledge in
respect of the shares in Centerpulse Industrie SARL held by Centerpulse
Sud-Ouest SARL.

 

(k)                           The share pledge in
respect of the shares in Centerpulse Industrie SARL held by Centerpulse Centre
SARL.

 

(l)                              Officer certificate of
Centerpulse France SA relating to its corporate interest.

 

(m)                        Certified copies of the
by-laws of Centerpulse Industrie, Centerpulse Nord, Centerpulse Centre,
Centerpulse Sud-Ouest, Centerpulse Ouest, Centerpulse Dental, Sulzer
Cardiovascular, Centerpulse France.

 

(n)                          Certified
copies of (i) the board of directors of Centerpulse France SA authorizing the
guarantee and the granting of pledges, (ii) board of directors resolutions of
Centerpulse France SA and Sulzer Cardiovascular SA approving the banks as
potential new shareholders, (iii) shareholders’ resolutions of Centerpulse
Centre, Centerpulse Ouest, Centerpulse Nord, Centerpulse Industrie, Centerpulse
Dental,

 

114

 

Centerpulse
Sud-Ouest approving the Finance Parties as potential new shareholders, (iv)
shareholders’ resolutions of Centerpulse Centre, Centerpulse Ouest and
Centerpulse Sud Ouest approving their entering into the pledge agreements.

 

4.4                                 German Security Documents

 

(a)                                  The share pledge in
respect of the shares in Centerpulse Germany Holding GmbH (MEDH) held by Centerpulse
Ltd. (MEAG)

 

(b)                                 The share pledge in
respect of the shares in Sulzer Cardiovascular GmbH (CVD) held by Centerpulse
Germany Holding GmbH (MEDH).

 

(c)                                  The share pledge in
respect of the shares of Centerpulse Germany GmbH (SOD) held by Centerpulse
Germany Holding GmbH (MEDH).

 

(d)                                 The share pledge in
respect of 65% of the shares of Centerpulse Dental GmbH (DENDE) held by
Centerpulse Dental Inc. (DENUS).

 

(e)                                  The Centerpulse Germany
GmbH Security Transfer Agreement.

 

(f)                                    The Centerpulse Germany
GmbH Security Assignment Agreement.

 

(g)                                 Copy of by-laws
(Kompetenzordnungen) of SOD dated May 5, 2000 and MEAG dated October 3, 2002.

 

(h)                                 Certified copy of
shareholder’s list of CVD, DENDE, MEDH and SOD.

 

(i)                                     Constitutional documents
of DENUS:  Certified Copy of Articles of
Association with attached Apostille, Certificate of good standing with attached
Apostille, Incumbency certificate with attached Apostille, certified copy of
By-laws with attached Apostille and certificate of incorporation with attached
Apostille.

 

(j)                                     Certified copy of
Articles of Association of BIOVI, CVD, DENDE, MEAG, MEDH, SOAG, SOD.

 

(k)                                  Certified excerpts from
the Commercial Register of the Company BIOVI, CVD, DENDE, MEAG, MEDH, SOAG and
SOD.

 

(l)                                     Certified Powers of
Attorneys issued by DENUS (with attached apostille), BIOVI, MEAG, MEDH and SOD
with regard to granting certain security collateral in BIOVI, CVD, DENDE, MEDH
and SOD.

 

(m)                               Certified Letter of
Consent of SOAG to the granting of securities by SOD.

 

(n)                                 Certified SOD shareholders’
resolution to the granting of securities by SOD (SOD Share Pledge Agreement,
SOD Security Transfer Agreement, SOD Security Assignment Agreement) and
Facility Agreement.

 

(o)                                 Certified Shareholder’s
Resolution approving the pledge of shares in MEDH.

 

(p)                                 Certified consent of MEDH
to the pledge of shares in it by the Company.

 

115

 

(q)                                 Certified Shareholder’s
Resolution of CVD and SOD approving the pledge of shares in CVD and SOD.

 

(r)                                    Certified consents of CVD
and SOD to the pledge of shares in CVD and SOD by MEDH.

 

(s)                                  Written consent of DENDE
to the pledge of shares in it by DENUS.

 

(t)                                    Certified SOAG waiver of
retention of title rights.

 

4.5                                 Swiss Security Documents

 

(a)                                  Minutes of board
resolution by the board of directors of Centerpulse Ltd., approving the
transaction with regard to the shares in (i) Centerpulse Orthopedics
(Switzerland) Ltd.; (ii) Centerpulse Orthopedics Ltd; and (iii) Centerpulse
Management Ltd and the signing of the respective Pledge Agreement.

 

(b)                                 Certified extract from
the register of commerce with regard to Centerpulse Ltd.

 

(c)                                  Certified articles of
association with regard to Centerpulse Ltd.

 

(d)                                 Organizational
Regulations of Centerpulse Ltd.

 

(e)                                  Pledge Agreement made
between Centerpulse Ltd. as Pledgor and the Security Agent/the Secured Parties
in respect of the shares in (i) Centerpulse Orthopedics (Switzerland) Ltd.;
(ii) Centerpulse Orthopedics Ltd; and (iii) Centerpulse Management Ltd..

 

(f)                                    Share certificates in
Centerpulse Orthopedics (Switzerland) Ltd., duly issued and endorsed (100
registered shares with a nominal value of CHF 100 each)

 

(g)                                 Board resolution of Board
of Directors of Centerpulse Orthopedics (Switzerland) Ltd., acknowledging the
pledge and approving any transfer of the shares in connection with the
enforcement of the right of pledge.

 

(h)                                 Certified copy of
articles of incorporation of Centerpulse Orthopedics (Switzerland) Ltd.,
showing changes with respect to transfer restrictions.

 

(i)                                     Share certificates in
Centerpulse Orthopedics Ltd., duly issued and endorsed (120,000 registered
shares with a nominal value of CHF 100 each).

 

(j)                                     Board resolution of Board
of Directors of Centerpulse Orthopedics Ltd., acknowledging the pledge and
approving any transfer of the shares in connection with the enforcement of the
right of pledge.

 

(k)                                  Certified copy of
articles of incorporation of Centerpulse Orthopedics Ltd., showing changes with
respect to transfer restrictions.

 

(l)                                     Share certificates in
Centerpulse Management Ltd., duly issued and endorsed (1,000 registered shares
with a nominal value of CHF 100 each).

 

116

 

(m)                               Board resolution of Board
of Directors of Centerpulse Management Ltd., acknowledging the pledge and approving
any transfer of the shares in connection with the enforcement of the right of
pledge.

 

(n)                                 Certified copy of
articles of incorporation of Centerpulse Management Ltd., showing changes with
respect to transfer restrictions.

 

(o)                                 Minutes of board resolution
by the board of directors of Centerpulse Orthopedics (Switzerland) Ltd.,
approving the Pledge Agreement and the Security Assignment Agreement and
authorizing the signing of such agreements.

 

(p)                                 Certified extract from
the register of commerce with regard to Centerpulse Orthopedics (Switzerland)
Ltd.

 

(q)                                 Certified copy of
articles of incorporation of Centerpulse Orthopedics (Switzerland) Ltd.,
showing group-clause.

 

(r)                                    Minutes of the general
meeting of shareholders of Centerpulse Orthopedics (Switzerland) Ltd. approving
the Pledge Agreement and the Security Assignment Agreement.

 

(s)                                  Pledge Agreement duly
signed by Centerpulse Orthopedics (Switzerland) Ltd.

 

(t)                                    Security Assignment
Agreement duly signed by Centerpulse Orthopedics (Switzerland) Ltd.

 

(u)                                 Copy of insurance
Policies of Centerpulse Orthopedics (Switzerland) Ltd. as contained in Schedule
4 of the Security Assignment Agreement.

 

(v)                                 Notification of
assignment of insurance claims of Centerpulse Orthopedics (Switzerland) Ltd.
pursuant to Schedule 5 of the Security Assignment Agreement.

 

(w)                               List of accounts of
Centerpulse Orthopedics (Switzerland) Ltd. (Schedule 3 of the Security
Assignment Agreement).

 

(x)                                   Minutes of board
resolution by the board of directors of Centerpulse Orthopedics Ltd., approving
the Pledge Agreement and the Security Assignment Agreement and authorizing the
signing of such agreements.

 

(y)                                 Certified extract from
the register of commerce with regard to Centerpulse Orthopedics Ltd.

 

(z)                                   Certified copy of
articles of incorporation of Centerpulse Orthopedics Ltd., showing
group-clause.

 

(aa)                            Minutes of the general
meeting of shareholders of Centerpulse Orthopedics approving the Pledge
Agreement and the Security Assignment Agreement.

 

(bb)                          Pledge Agreement duly
signed by Centerpulse Orthopedics Ltd.

 

(cc)                            Security Assignment
Agreement duly signed by Centerpulse Orthopedics Ltd.

 

117

 

(dd)                          Copy of insurance
Policies of Centerpulse Orthopedics Ltd. as contained in Schedule 4 of the
Security Assignment Agreement.

 

(ee)                            Notification of
assignment of insurance claims of Centerpulse Orthopedics Ltd. pursuant to
Schedule 5 of the Security Assignment Agreement.

 

(ff)                                List of accounts of
Centerpulse Orthopedics Ltd. (Schedule 3 of the Security Assignment Agreement).

 

4.6                                 Italian Security Documents

 

(a)                                  Certified copy of the Italian Pledge duly executed.

 

(b)                                 Evidence satisfactory to the Facility Agent of endorsement, duly
notarized and, if required, apostilled, of the certificate No. 12 representing
14,025 ordinary shares of Sulzer Orthopedics Italia S.p.A.

 

(c)                                  Evidence satisfactory to the Facility Agent of annotation of the
pledge on the shareholders’ ledger of Sulzer Orthopedics Italia S.p.A.

 

(d)                                 Evidence satisfactory to the Facility Agent of (i) delivery to the
Security Agent of the certificate under (b) above duly endorsed and (ii) a
certified copy of the annotation.

 

(e)                                  Certified copy of the minutes of the relevant corporate bodies of
Centerpulse Ltd. authorizing the execution and delivery of the Italian Pledge.

 

(f)                                    Certified copy of the minutes of the resolution of Sulzer
Orthopedics Italia S.p.A.’s Board of Directors authorizing the execution and
delivery of the Italian Pledge.

 

4.7                                 Canadian Security Documents

 

(a)                                  The share pledge in respect of 65% of the shares in Sulzer Medica
Canada Inc.

 

(b)                                 The share pledge in respect of 65% of the shares in Centerpulse
Dental Corp.

 

(c)                                  The share pledge in respect of 65% of the shares in Centerpulse
Orthopedics Canada Inc.

 

(d)                                 The share pledge in respect of 65% of the shares in Sulzer
Carbomedics Canada Ltd.

 

4.8                                 Austrian Security Documents

 

(a)                                  The share pledge in respect of the shares in Sulzer Orthopädie
Austria GmbH held by Centerpulse Ltd.

 

4.9                                 Spanish Security Documents

 

(a)                                  The share pledge in respect of the shares in Centerpulse Ibérica SA
held by Centerpulse Ltd.

 

(b)                                 The Spanish Security Agreement.

 

118

 

4.10                           Netherlands Security Documents

 

(a)                                  The notarial deed of pledge of shares in Centerpulse Netherlands BV
held by Centerpulse Ltd.

 

(b)                                 The notarial deed of pledge of shares in Sulzer Cardiovascular BV
held by Centerpulse Ltd.

 

119

 

Part II

Conditions
Precedent Required to be

Delivered by
an Additional Guarantor

 

1.                                 An Accession Letter, duly executed by the Additional Guarantor and
the Company.

 

2.                                 A copy of the constitutional documents of the Additional Guarantor.

 

3.                                 A copy of a resolution of the board of directors of the Additional
Guarantor:

 

(a)                           approving the terms of, and the transactions contemplated by, the
Accession Letter and the Finance Documents and resolving that it execute the
Accession Letter;

 

(b)                          authorising a specified person or persons to execute the Accession
Letter on its behalf; and

 

(c)                           authorising a specified person or persons, on its behalf, to sign
and/or deliver all other documents and notices to be signed and/or delivered by
it under or in connection with the Finance Documents.

 

4.                                 A specimen of the signature of each person authorised by the
resolution referred to in paragraph 3 above.

 

5.                                 A copy of a resolution signed by all the holders of the issued
shares of the Additional Guarantor, approving the terms of, and the
transactions contemplated by, the Finance Documents to which the Additional
Guarantor is a party.

 

6.                                 A certificate of the Additional Guarantor (signed by a director)
confirming that guaranteeing the Total Commitments would not cause any
guaranteeing or similar limit binding on it to be exceeded.

 

7.                                 A certificate of an authorised signatory of the Additional Guarantor
certifying that each copy document listed in this Part II of Schedule 2 is
correct, complete and in full force and effect as at a date no earlier than the
date of the Accession Letter.

 

8.                                 A copy of any other Authorisation or other document, opinion or
assurance which the Facility Agent considers to be necessary or desirable in
connection with the entry into and performance of the transactions contemplated
by the Accession Letter or for the validity and enforceability of any Finance
Document.

 

9.                                 If available, the latest audited financial statements of the
Additional Guarantor.

 

10.                           If the proposed Additional Guarantor is incorporated in a
jurisdiction other than England and Wales, evidence that the process Facility
Agent specified in Clause 38.2 (Service of process), if not an Obligor,
has accepted its appointment in relation to the proposed Additional Guarantor.

 

11.                           A legal opinion of Cleary, Gottlieb, Steen & Hamilton, legal
advisers to the Arranger.

 

12.                           If the Additional Guarantor is incorporated in a jurisdiction other
than England and Wales, either (i) a legal opinion of the legal advisers to the
Arranger and the Agent or

 

120

 

(ii) if customary practice in such
jurisdictions, a legal opinion from the legal advisers to that Additional
Guarantor in the jurisdiction in which the Additional Guarantor is
incorporated.

 

13.                           US Security Interest Opinion by US counsel for the Additional Guarantor
if it has assets located in the United States of America which are being
secured.

 

14.                           Such Security Documents duly executed by that Additional Guarantor
as the Facility Agent, Security Agent or the Majority Lenders may reasonably
request provided that, if that Additional Guarantor has assets in a
jurisdiction in which similar assets are the subject of Security under the
Security Documents on the date the Additional Guarantor becomes a Party to this
Agreement, the Security Documents so requested in respect of those assets of
the Additional Guarantor shall be substantially in same form as the Security
Documents creating security in respect of such similar assets and otherwise
subject to applicable legal limitations, and taking into account whether or not
the provision of such security would impose an undue administrative burden on,
or material inconvenience to the ordinary course of operations of, the
providers having regard to costs incurred to grant such security and the
benefit obtained by the beneficiary thereof provided further that no
notification to customers of assignment of receivables will be permitted except
during the continuance of an Event of Default under the Senior Credit
Agreement.

 

121

 

SCHEDULE
3

REQUESTS

 

Part I

Utilisation
Request

 

From:      Centerpulse Orthopedics Inc.

 

To:          UBS AG, Stamford Branch, as Facility
Agent

 

To:          UBS AG, Stamford Branch as Security
Agent

 

Dated:

 

Dear Sirs

 

Centerpulse
Orthopedics Inc. – [        ] Facility
Agreement

 

dated
[      ] (the “Agreement”)

 

1.                                 We refer to the Agreement. 
This is the Utilisation Request. 
Terms defined in the Agreement have the same meaning in this Utilisation
Request unless given a different meaning in this Utilisation Request.

 

2.                                 We wish to borrow Loans on the following terms:

 

	
  Proposed
  Utilisation Date:

  	
  [      ] or,
  if that is not a Business Day, the next Business Day, which is a day on or
  prior to November 4, 2002

  
	
  Amount of
  Tranche A Dollar Loan:

  	
  [       ]

  
	
  Amount of
  Tranche A Euro Loan:

  	
  [       ]

  
	
  Amount of
  Tranche B Dollar Loan:

  	
  [       ]

  
	
  Amount of
  Tranche B Euro Loan:

  	
  [       ]

  
	
  Interest
  Period:

  	
  [             ]

  

 

3.                                 We request that in the case of Lenders with Facility Offices in the
United States of America, interest will be calculated by reference to
[LIBOR]/[Prime Rate].

 

4.                                 We confirm that each condition specified in Clause 4.2 (Further
conditions precedent) is satisfied on the date of this Utilisation
Request.

 

5.                                 The proceeds of this Loan should be credited to [account].

 

6.                                 This Utilisation Request is irrevocable.

 

122

 

7.                                 [Instructions regarding payments to Cash Collateral Account].

 

	
   

  	
  Yours
  faithfully

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  authorised signatory for

  	
   

  
	
   

  	
  Centerpulse
  Orthopedics Inc.

  	
   

  

 

123

 

Part II

Selection
Notice

 

From:      Centerpulse Orthopedics Inc.

 

To:          [Facility Agent]

 

Dated:

 

Dear Sirs

 

Centerpulse
Orthopedics Inc. - [      ] Facility Agreement 

dated [    ] (the “Agreement”)

 

1.                                 We refer to the Agreement. 
This is a Selection Notice. 
Terms defined in the Agreement have the same meaning in this Selection
Notice unless given a different meaning in this Selection Notice.

 

2.                                 We refer to the following Loan with an Interest Period ending on
[            ]*.

 

3.                                 We request that in the case of Lenders with Facility Offices in the
United States of America, interest will be calculated by reference to
[LIBOR]/[Prime Rate].

 

4.                                 [We request that the above Loan[s] be divided into
[             ]
Loans  with the following amounts and
Interest Periods:] **

 

or

 

[We request
that the next Interest Period for the above Loan[s] is
[        ]].***

 

5.                                 This Selection Notice is irrevocable.

 

	
   

  	
  Yours
  faithfully

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  authorised signatory for

  	
   

  
	
   

  	
  Centerpulse
  Orthopedics Inc.

  	
   

  

 

*       Insert details of all Loans which have an
Interest Period ending on the same date.

**     Use this option if division of Loans is
requested.

***   Use this option if sub-division is not
required.

 

124

 

SCHEDULE
4

MANDATORY
COST FORMULA

 

1.                                 The Mandatory Cost is an addition to the interest rate to compensate
Lenders for the cost of compliance with (a) the requirements of the Bank of
England and/or the Financial Services Authority (or, in either case, any other
authority which replaces all or any of its functions) or (b) the requirements
of the European Central Bank.

 

2.                                 On the first day of each Interest Period (or as soon as possible
thereafter) the Facility Agent shall calculate, as a percentage rate, a rate
(the “Additional
Cost Rate”) for each Lender, in accordance with the paragraphs set
out below.  The Mandatory Cost will be
calculated by the Facility Agent as a weighted average of the Lenders’
Additional Cost Rates (weighted in proportion to the percentage participation
of each Lender in the relevant Loan) and will be expressed as a percentage rate
per annum.

 

3.                                 The Additional Cost Rate for any Lender lending from a Facility
Office in a Participating Member State will be the percentage notified by that
Lender to the Facility Agent.  This
percentage will be certified by that Lender in its notice to the Facility Agent
to be its reasonable determination of the cost (expressed as a percentage of
that Lender’s participation in all Loans made from that Facility Office) of
complying with the minimum reserve requirements of the European Central Bank in
respect of loans made from that Facility Office.

 

4.                                 The Additional Cost Rate for any Lender lending from a Facility
Office in the United Kingdom will be calculated by the Facility Agent as
follows:

 

(a)                                       in relation to a sterling Loan:

 

 per cent. per annum

 

(b)                                      in relation to a Loan in any currency other than sterling:

 

 per cent. per annum.

 

Where:

 

A                           is the percentage of Eligible Liabilities (assuming these to be in
excess of any stated minimum) which that Lender is from time to time required
to maintain as an interest free cash ratio deposit with the Bank of England to
comply with cash ratio requirements.

 

B                             is the percentage rate of interest (excluding the Margin and the
Mandatory Cost and, if the Loan is an Unpaid Sum, the additional rate of
interest specified in paragraph (a) of Clause 8.3 (Default interest)) payable
for the relevant Interest Period on the Loan.

 

125

 

C                             is the percentage (if any) of Eligible Liabilities which that Lender
is required from time to time to maintain as interest bearing Special Deposits
with the Bank of England.

 

D                            is the percentage rate per annum payable by the Bank of England to
the Agent on interest bearing Special Deposits.

 

E                              is designed to compensate Lenders for amounts payable under the Fees
Rules and is calculated by the Facility Agent as being the average of the most
recent rates of charge supplied by the Reference Banks to the Facility Agent
pursuant to paragraph 7 below and expressed in pounds per £1,000,000.

 

5.                                 For the purposes of this Schedule:

 

(a)                           “Eligible Liabilities” and “Special Deposits” have the
meanings given to them from time to time under or pursuant to the Bank of
England Act 1998 or (as may be appropriate) by the Bank of England;

 

(b)                          “Fees Rules” means the rules on periodic fees contained in the
FSA Supervision Manual or such other law or regulation as may be in force from
time to time in respect of the payment of fees for the acceptance of deposits;

 

(c)                           “Fee Tariffs” means the fee tariffs specified in the Fees Rules
under the activity group A.1 Deposit acceptors (ignoring any minimum fee or
zero rated fee required pursuant to the Fees Rules but taking into account any
applicable discount rate); and

 

(d)                          “Tariff Base” has the meaning given to it in, and will be
calculated in accordance with, the Fees Rules.

 

6.                                 In application of the above formulae, A, B, C and D will be included
in the formulae as percentages (i.e. 5 per cent. will be included in the
formula as 5 and not as 0.05).  A
negative result obtained by subtracting D from B shall be taken as zero.  The resulting figures shall be rounded to
four decimal places.

 

7.                                 If requested by the Facility Agent, each Reference Bank shall, as
soon as practicable after publication by the Financial Services Authority,
supply to the Facility Agent, the rate of charge payable by that Reference Bank
to the Financial Services Authority pursuant to the Fees Rules in respect of
the relevant financial year of the Financial Services Authority (calculated for
this purpose by that Reference Bank as being the average of the Fee Tariffs
applicable to that Reference Bank for that financial year) and expressed in
pounds per £1,000,000 of the Tariff Base of that Reference Bank.

 

8.                                 Each Lender shall supply any information required by the Facility
Agent for the purpose of calculating its Additional Cost Rate.  In particular, but without limitation, each
Lender shall supply the following information on or prior to the date on which
it becomes a Lender:

 

(a)                           the jurisdiction of its Facility Office; and

 

126

 

(b)                          any other information that the Facility Agent may reasonably require
for such purpose.

 

Each Lender
shall promptly notify the Facility Agent of any change to the information
provided by it pursuant to this paragraph.

 

9.                                 The percentages of each Lender for the purpose of A and C above and
the rates of charge of each Reference Bank for the purpose of E above shall be
determined by the Facility Agent based upon the information supplied to it
pursuant to paragraphs 7 and 8 above and on the assumption that, unless a
Lender notifies the Facility Agent to the contrary, each Lender’s obligations
in relation to cash ratio deposits and Special Deposits are the same as those
of a typical bank from its jurisdiction of incorporation with a Facility Office
in the same jurisdiction as its Facility Office.

 

10.                           The Facility Agent shall have no liability to any person if such
determination results in an Additional Cost Rate which over or under
compensates any Lender and shall be entitled to assume that the information
provided by any Lender or Reference Bank pursuant to paragraphs 3, 7 and 8
above is true and correct in all respects.

 

11.                           The Facility Agent shall distribute the additional amounts received
as a result of the Mandatory Cost to the Lenders on the basis of the Additional
Cost Rate for each Lender based on the information provided by each Lender and
each Reference Bank pursuant to paragraphs 3, 7 and 8 above.

 

12.                           Any determination by the Facility Agent pursuant to this Schedule in
relation to a formula, the Mandatory Cost, an Additional Cost Rate or any
amount payable to a Lender shall, in the absence of manifest error, be
conclusive and binding on all Parties.

 

13.                           The Facility Agent may from time to time, after consultation with
the Company and the Lenders, determine and notify to all Parties any amendments
which are required to be made to this Schedule in order to comply with any
change in law, regulation or any requirements from time to time imposed by the
Bank of England, the Financial Services Authority or the European Central Bank
(or, in any case, any other authority which replaces all or any of its
functions) and any such determination shall, in the absence of manifest error,
be conclusive and binding on all Parties.

 

127

 

SCHEDULE
5

FORM OF
TRANSFER CERTIFICATES

 

Part I

 

To:                  [          ]
as Facility Agent

 

From:                          [The Existing Lender] (the “Existing
Lender”) and [The New Lender] (the     “New Lender”)

 

Copy
to:         The Company

 

Dated:

 

Centerpulse
Orthopedics Inc. –
[          ] Facility Agreement

dated
[       ] (the “Agreement”)

 

1.                                 We refer to the Agreement. 
This is a Transfer Certificate. 
Terms defined in the Agreement have the same meaning in this Transfer
Certificate unless given a different meaning in this Transfer Certificate.

 

2.                                 We refer to Clause 23.5 (Procedure for transfer):

 

(a)                           The Existing Lender and the New Lender agree to the Existing Lender
transferring to the New Lender by novation all or part of the Existing Lender’s
Commitment, rights and obligations referred to in the Schedule in accordance
with Clause 23.5 (Procedure for transfer).

 

(b)                          The proposed Transfer Date is
[         ].

 

(c)                           The Facility Office and address, fax number and attention details
for notices of the New Lender for the purposes of Clause 30.2 (Addresses)
are set out in the Schedule.

 

3.                                 The New Lender expressly acknowledges the limitations on the
Existing Lender’s obligations set out in paragraph (c) of Clause 23.4 (Limitation
of responsibility of Existing Lenders).

 

4.                                 The New Lender confirms that it:

 

(a)                           will be the beneficial owner of each payment to which it is entitled
under the Agreement; and

 

(b)                          (i) is a corporation incorporated or organised under the laws of the
United States of America or any state thereof (including the District of
Columbia); (ii) will be entitled, under a double tax treaty, to a full
exemption from tax imposed by the United States of America on any such payment;
or (iii) will otherwise be entitled to receive any such payment without
deduction or withholding of any United States federal income tax; and

 

(c)                           will comply with any procedural requirements necessary to receive
any such payment without deduction or withholding of any United States federal
income tax, including any necessary certifications with respect to treaty benefits,
and will cause

 

128

 

each of its agents through which any such
payment will be received to comply with such procedural requirements; and

 

(d)                          consents hereby to the terms and provisions of the Security Agency
Agreement and is hereby made a party to such Security Agency Agreement.

 

5.                                       With specific reference to the Italian Pledge, the Existing Lender
and the New Lender acknowledge that, as a result of signing this Transfer
Certificate, all or part of the rights and obligations under the Italian Pledge
are transferred to the New Lender.  The
New Lender expressly authorises the Security Agent to request to the directors
of Sulzer Orthopedics Italia S.p.A. the annotation, on the share certificates
and on the shareholders’ ledger of the company, of any future transfer of the
Italian Pledge in favor of any third pledgee. 
For the purposes of Italian law the transfer made under this Transfer
Certificate shall be deemed to constitute a cessione
del contratto.

 

[6/7].               This
Transfer Certificate may be executed in any number of counterparts and this has
the same effect as if the signatures on the counterparts were on a single copy
of this Transfer Certificate.

 

[7/8].               This
Transfer Certificate is governed by English law.

 

THE SCHEDULE

 

Commitment/rights and obligations
to be transferred

 

[insert
relevant details]

[Facility
Office address, fax number and attention details for notices and account
details for payments,]

 

 

	
  [Existing Lender]

  	
  [New Lender]

  
	
   

  	
   

  
	
  By:

  	
  By:

  

 

This Transfer
Certificate is accepted by the Facility Agent and the Transfer Date is
confirmed as
[           ].

 

	
  [Facility Agent]

  
	
   

  
	
  By:

  

 

129

 

Part II

 

LMA TRANSFER
CERTIFICATE (PAR)

 

	
  BANK:

  	
   

  	
  Date:

  	
   

  

 

TRANSFEREE:

 

Copy to:                                                  The Company

 

This Transfer
Certificate is entered into pursuant to (i) the agreement (the “Sale
Agreement”) evidenced by the Confirmation dated
              
between the Bank and the Transferee (acting directly or through their
respective agents) and (ii) the Credit Agreement.

 

On the
Transfer Date, the transfer by way of novation from the Bank to the Transferee
on the terms set out herein and in the Credit Agreement shall become effective
subject to:-

 

(i)                                         the Sale Agreement and the terms and conditions incorporated in the
Sale Agreement;

 

(i)                                         the terms and conditions annexed hereto; and

 

(ii)                                      the schedule annexed hereto,

 

all of which
are incorporated herein by reference.

 

	
  The Bank

  	
  The Transferee

  
	
  [                   ]

  	
  [                 ]

  
	
  By:

  	
  By:

  

 

130

 

The Schedule

 

	
  Credit Agreement Details:

  	
   

  
	
   

  	
   

  
	
  Borrower(s):

  	
   

  
	
  Credit
  Agreement Dated

  	
   

  
	
  Guarantor(s):

  	
   

  
	
  Agent Bank:

  	
   

  
	
  Security:

  	
  o  No             o  Yes
  (specify)

  
	
  Total
  Facility Amount:

  	
   

  
	
  Governing
  Law:

  	
   

  
	
  Additional
  Information:

  	
   

  
	
   

  	
   

  
	
  Transfer Details:

  	
   

  
	
  Name of
  Tranche Facility:

  	
   

  
	
  Nature
  (Term):

  	
   

  
	
  Final
  Maturity:

  	
   

  
	
  Participation Transferred

  	
   

  
	
  Commitment
  transferred(1)

  	
   

  
	
  Drawn Amount (details below):(1)

  	
   

  
	
  Undrawn Amount:(1)

  	
   

  
	
   

  	
   

  
	
  Settlement
  Date:

  	
   

  
	
   

  	
   

  
	
  Details of outstanding
  Credits(1)

  	
   

  
	
   

  	
   

  
	
  Specify in
  respect of each Credit:

  	
   

  
	
  Transferred Portion (amount):

  	
   

  
	
  Tranche/Facility:

  	
   

  
	
  Nature:

  	
  o  Term

  
	
   

  	
   

  
	
  Administration Details

  	
   

  
	
  Bank’s
  Receiving Account:

  	
   

  
	
  Transferee’s
  Receiving Account:

  	
   

  
	
   

  	
   

  
	
  Addresses

  	
   

  
	
  Bank

  	
  Transferee

  
	
  [                ]

  	
  [                ]

  
	
  Address:

  	
  Address:

  
	
  Telephone:

  	
  Telephone:

  
	
  Facsimile:

  	
  Facsimile:

  
	
  Telex:

  	
  Telex:

  
	
  Attn/Ref:

  	
  Attn/Ref:

  
			

 

(1)   As at the date of the Transfer Certificate

 

131

 

TERMS AND
CONDITIONS

 

These are the
Terms and Conditions applicable to the transfer certificate including the
Schedule thereto (the “Transfer Certificate”) to which they are
annexed.

 

1.                                 Interpretation

 

In these Terms
and Conditions words and expressions shall (unless otherwise expressly defined
herein) bear the meaning given to them in the Transfer Certificate, the Credit
Agreement or the Sale Agreement.

 

2.                                 Transfer

 

The Bank
requests the Transferee to accept and procure the transfer by novation of all
or a part (as applicable) of such participation of the Bank under the Credit
Agreement as is set out in the relevant part of the Transfer Certificate under
the heading “Participation Transferred” (the “Purchased Assets”) by
counter-signing and delivering the Transfer Certificate to the Facility Agent
at its address for the service of notice specified in the Credit
Agreement.  On the Transfer Date the
Transferee shall pay to the Bank the Settlement Amount as specified in the
pricing letter between the Bank and the Transferee dated the date of the
Transfer Certificate (adjusted, if applicable, in accordance with the Sale
Agreement) and completion of the transfer will take place.

 

3.                                 Effectiveness
of Transfer

 

The Transferee
hereby requests the Facility Agent to accept the Transfer Certificate as being
delivered to the Facility Agent pursuant to and for the purposes of the Credit
Agreement so as to take effect in accordance with the terms of the Credit
Agreement on the Transfer Date or on such later date as may be determined in
accordance with the terms thereof.

 

4.                                 Transferee’s
Undertaking

 

The Transferee
hereby undertakes with the Facility Agent and the Bank and each of the other
parties to the Credit Documentation that it will perform in accordance with its
terms all those obligations which by the terms thereof will be assumed by it
after delivery of the Transfer Certificate to the Facility Agent and
satisfaction of the conditions (if any) subject to which the Transfer
Certificate is to take effect.

 

5.                                 Payments

 

5.1                           Place

 

All payments
by either party to the other under the Transfer Certificate shall be made to
the Receiving Account of that other party. 
Each party may designate a different account as its Receiving Account
for payment by giving the other not less than five Business Days notice before
the due date for payment.

 

132

 

5.2                           Funds

 

Payments under
the Transfer Certificate shall be made in the currency in which the amount is
denominated for value on the due date at such times and in such funds as are
customary at the time for settlement of transactions in that currency.

 

6.                                 The
Facility Agent

 

The Facility Agent shall not be required to
concern itself with the Sale Agreement and may rely on the Transfer Certificate
without taking account of the provisions of such agreement.

 

7.                                 Assignment
of Rights

 

The Transfer
Certificate shall be binding upon and enure to the benefit of each party and
its successors and permitted assigns provided that neither party may assign or
transfer its rights thereunder without the prior written consent of the other
party.

 

8.                                 Third
Party Rights

 

A person who
is not a party to the Transfer Certificate has no rights under the Contracts
(Rights of Third Parties) Act 1999 to enforce or to enjoy the benefit of any
term of the Transfer Certificate.

 

9.                                 Governing
Law and Jurisdiction

 

The Transfer
Certificate (including, without limitation, these Terms and Conditions) shall
be governed by and construed in accordance with the laws of England, and the
parties submit to the non-exclusive jurisdiction of the English courts.

 

Each party
irrevocably appoints the person described as process agent (if any) specified
in the Sale Agreement to receive on its behalf service of any action, suit or
other proceedings in connection with the Transfer Certificate.  If any person appointed as process agent
ceases to act for any reason the appointing party shall notify the other party
and shall promptly appoint another person incorporated within England and Wales
to act as its process agent.

 

133

 

SCHEDULE 6

 

FORM
OF ACCESSION LETTER

 

To:          [        ]
as Facility Agent

 

From:      [Subsidiary] and [Company]

 

Dated:

 

Dear Sirs

 

[Company] –
[         ] Facility Agreement

dated
[        ] (the “Agreement”)

 

1.                                 We refer to the Agreement. 
This is an Accession Letter. 
Terms defined in the Agreement have the same meaning in this Accession
Letter unless given a different meaning in this Accession Letter.

 

2.                                 [     ]
agrees to become an Additional Guarantor and to be bound by the terms of the
Agreement as an Additional Guarantor pursuant to Clause 24.2 (Additional
Guarantors) of the Agreement. 
[     ]
is a company duly incorporated under the laws of [name of relevant jurisdiction].

 

3.                                 [          ]
administrative details are as follows:

 

Address:

 

Fax No:

 

Attention:

 

4.                                 This Accession Letter is governed by English law.

 

This Guarantor
Accession Letter is entered into by deed.

 

[Company]                                                                                                                                     [Subsidiary]

 

 

134

 

SCHEDULE 7 

 

FORM
OF RESIGNATION LETTER

 

To:          [      ]
as Facility Agent

 

From:      [resigning Obligor] and [Company]

 

Dated:

 

Dear Sirs

[Company] –
[       ] Facility Agreement

dated [       ] (the “Agreement”)

 

1.                                 We refer to the Agreement. 
This is a Resignation Letter. 
Terms defined in the Agreement have the same meaning in this Resignation
Letter unless given a different meaning in this Resignation Letter.

 

2.                                 Pursuant to Clause 24.4 (Resignation of a Guarantor), we request that [resigning
Obligor] be released from its obligations as a Guarantor under the
Agreement.

 

3.                                 We confirm that:

 

(a)                                       no Default is continuing or would result from the acceptance of this
request; and

 

(b)                                      this Resignation Letter will only become effective on the date on
which [insert name of resigning Obligor] ceases to be a member of the Group in
accordance with the terms of this Agreement and the proviso in the definition
of Material Subsidiary shall still be satisfied following such resignation.*

 

4.                                 This Resignation Letter is governed by English law.

 

[Company]                                                                                                                                     [Subsidiary]

 

By:                                                                                                                                                                              By:

 

* Insert any
other conditions required by the Facility Agreement.

 

135

 

SCHEDULE 8

 

FORM
OF COMPLIANCE CERTIFICATE OF COMPANY

 

Part I

 

To:          [      ]
as Facility Agent

 

From:      [Company]

 

Dated:

 

Dear Sirs

 

[Company] –
[         ] Facility Agreement

dated [           ] (the
“Agreement”)

 

1.                                 We refer to the Agreement. 
This is a Compliance Certificate. 
Terms defined in the Agreement have the same meaning in this Compliance
Certificate unless given a different meaning in this Compliance Certificate.

 

2.                                 We confirm that:  [Insert
details of covenants to be certified]

 

3.                                 Excess Cash Flow for [insert year] was
[     ]*

 

4.                                 [We confirm that no Default is continuing.]  **

 

	
  Signed:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Director

  	
  Director

  
	
   

  	
  Of

  	
  Of

  
	
   

  	
  [Company]

  	
  [Company]

  

 

*                 If
the financial statements are delivered in accordance with Clause 19.1(a) (Financial
Statements).

**          If this
statement cannot be made, the certificate should identify any Default that is
continuing and the steps, if any, being taken to remedy it.

 

136

 

PART II

FORM OF COMPLIANCE CERTIFICATE OF COMPANY

 

[TO FOLLOW]

 

To:          [      ]
as Facility Agent

 

	
   

  	
   

  
	
  for and on
  behalf of

  
	
  [name of
  auditors of the Company]***

  

 

***   Only
applicable if the Compliance Certificate accompanies the audited financial
statements and is to be signed by the auditors. To be agreed with the Company’s
auditors prior to signing the Agreement.

 

137

 

SCHEDULE 9

 

EXISTING
SECURITY

 

	
  Name
  of Obligor

  	
   

  	
  Security

  	
   

  	
  Total
  Principal Amount of

  Indebtedness Secured

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

138

 

Schedule 9: Existing Securities

 

	
  Updated
  as per

  	
   

  	
  24.10.2002

  

 

	
  Name of Obligor

  	
   

  	
  Securities

  Intermediary

  	
   

  	
  Address of Securities

  Intermediary

  	
   

  	
  Type of Account

  	
   

  	
  Currency

  	
   

  	
  Amount in ‘000

  	
   

  
	
  Bonds

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SULZER CARBOMEDICS INC.

  	
   

  	
  JP
  Morgan

  	
   

  	
  Houston,
  TX, USA

  	
   

  	
  Bid
  bond

  	
   

  	
  USD

  	
   

  	
  25

  	
   

  
	
  SULZER CARBOMEDICS INC.

  	
   

  	
  JP
  Morgan

  	
   

  	
  Houston,
  TX, USA

  	
   

  	
  Performance
  bond

  	
   

  	
  USD

  	
   

  	
  10

  	
   

  
	
  SULZER CARBOMEDICS INC.

  	
   

  	
  Bank
  of America

  	
   

  	
  Concord,
  CA, USA

  	
   

  	
  Bid
  bond

  	
   

  	
  USD

  	
   

  	
  1

  	
   

  
	
  SULZER CARBOMEDICS INC.

  	
   

  	
  Bank
  of America

  	
   

  	
  Concord,
  CA, USA

  	
   

  	
  Bid
  bond

  	
   

  	
  USD

  	
   

  	
  3

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CENTERPULSE
  KOREA LTD

  	
   

  	
  Woori Bank

  	
   

  	
  Seoul,
  KR

  	
   

  	
  Public
  bond

  	
   

  	
  KRW

  	
   

  	
  8’230

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SULZER ORTHOPEDICS
  INDIA PRIVATE LTD

  	
   

  	
  Deutsche Bank

  	
   

  	
  Chennai, IN

  	
   

  	
  Performance
  Bond

  	
   

  	
  INR

  	
   

  	
  233

  	
   

  
	
  SULZER ORTHOPEDICS
  INDIA PRIVATE LTD

  	
   

  	
  Vysya
  Bank

  	
   

  	
  Chennai,
  IN

  	
   

  	
  Performance
  Bond

  	
   

  	
  INR

  	
   

  	
  105

  	
   

  
	
  SULZER ORTHOPEDICS
  INDIA PRIVATE LTD

  	
   

  	
  Vysya
  Bank

  	
   

  	
  Chennai,
  IN

  	
   

  	
  Bid
  Bond

  	
   

  	
  INR

  	
   

  	
  61

  	
   

  
	
  SULZER ORTHOPEDICS
  INDIA PRIVATE LTD

  	
   

  	
  Vysya
  Bank

  	
   

  	
  Chennai,
  IN

  	
   

  	
  Performance
  Bond

  	
   

  	
  INR

  	
   

  	
  95

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VASCUTEK LTD

  	
   

  	
  Bank
  of Scotland

  	
   

  	
  Renfrewshire,
  GB

  	
   

  	
  Bid
  bond

  	
   

  	
  USD

  	
   

  	
  5

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Guarantees,
  LOC

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CENTERPULSE LTD

  	
   

  	
  Credit
  Suisse

  	
   

  	
  Zurich,
  CH

  	
   

  	
  Letter
  of Guarantee

  	
   

  	
  CHF

  	
   

  	
  180

  	
   

  
	
  CENTERPULSE LTD

  	
   

  	
  Credit
  Suisse

  	
   

  	
  Zurich,
  CH

  	
   

  	
  Cash
  Collateral

  	
   

  	
  CHF

  	
   

  	
  1’000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CENTERPULSE ORTHOPEDICS
  LTD

  	
   

  	
  Credit
  Suisse

  	
   

  	
  Zurich,
  CH

  	
   

  	
  Cash
  Collateral

  	
   

  	
  CHF

  	
   

  	
  311

  	
   

  
	
  CENTERPULSE ORTHOPEDICS
  LTD

  	
   

  	
  China
  Construction Bank

  	
   

  	
  Shanghai,
  VRC

  	
   

  	
  Cash
  Collateral

  	
   

  	
  CHF

  	
   

  	
  15

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CENTERPULSE LTD /  CENTERPULSE AUSTRALIA PTY. LTD

  	
   

  	
  Westpac

  	
   

  	
  Hornsby,
  AU

  	
   

  	
  Letter
  of Guarantee

  	
   

  	
  AUD

  	
   

  	
  45

  	
   

  
	
  CENTERPULSE LTD /  CENTERPULSE AUSTRALIA PTY. LTD

  	
   

  	
  Westpac

  	
   

  	
  Hornsby,
  AU

  	
   

  	
  Letter
  of Guarantee

  	
   

  	
  AUD

  	
   

  	
  64

  	
   

  
	
  CENTERPULSE LTD /  CENTERPULSE AUSTRALIA PTY. LTD

  	
   

  	
  Westpac

  	
   

  	
  Hornsby,
  AU

  	
   

  	
  Letter
  of Guarantee

  	
   

  	
  AUD

  	
   

  	
  5

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SULZER ORTHOPEDICS
  IBÉRICA SA

  	
   

  	
  Deutsche Bank

  	
   

  	
  Madrid,
  ES

  	
   

  	
  Letter
  of Guarantee

  	
   

  	
  EUR

  	
   

  	
  546

  	
   

  
	
  CENTERPULSE LTD /  SULZER ORTHOPEDICS IBÉRICA SA

  	
   

  	
  BBVA
  Bank

  	
   

  	
  Madrid,
  ES

  	
   

  	
  Letter
  of Guarantee

  	
   

  	
  EUR

  	
   

  	
  265

  	
   

  
	
  SULZER ORTHOPEDICS
  IBÉRICA SA

  	
   

  	
  Fundos
  y Obras

  	
  1)

  	
   

  	
   

  	
  Cash
  Collateral

  	
   

  	
  EUR

  	
   

  	
  48

  	
   

  
	
  SULZER ORTHOPEDICS
  IBÉRICA SA

  	
   

  	
  Prior
  Velho Inmobiliaria

  	
  1)

  	
   

  	
   

  	
  Cash
  Collateral

  	
   

  	
  EUR

  	
   

  	
  4

  	
   

  
	
  SULZER ORTHOPEDICS
  IBÉRICA SA

  	
   

  	
  Rentamar

  	
  1)

  	
   

  	
   

  	
  Cash
  Collateral

  	
   

  	
  EUR

  	
   

  	
  4

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CENTERPULSE FRANCE SA

  	
   

  	
  Unipierre

  	
  1)

  	
   

  	
   

  	
  Cash
  Collateral

  	
   

  	
  EUR

  	
   

  	
  11

  	
   

  
	
  CENTERPULSE FRANCE SA
  (CENTERPULSE SUD-OUEST SARL)

  	
   

  	
  Unipierre

  	
  1)

  	
   

  	
   

  	
  Cash
  Collateral

  	
   

  	
  EUR

  	
   

  	
  4

  	
   

  
	
  CENTERPULSE FRANCE SA
  (CENTERPULSE OUEST SARL)

  	
   

  	
  SCI
  Aymeline

  	
  1)

  	
   

  	
   

  	
  Cash
  Collateral

  	
   

  	
  EUR

  	
   

  	
  16

  	
   

  
	
  CENTERPULSE FRANCE SA
  (CENTERPULSE NORD SARL)

  	
   

  	
  SCI
  Vauban, Unipierre

  	
  1)

  	
   

  	
   

  	
  Cash
  Collateral

  	
   

  	
  EUR

  	
   

  	
  19

  	
   

  
	
  CENTERPULSE FRANCE SA
  (CENTERPULSE SUD-OUEST SARL)

  	
   

  	
  Cocci

  	
  1)

  	
   

  	
   

  	
  Cash
  Collateral

  	
   

  	
  EUR

  	
   

  	
  7

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SULZER ORTHOPEDICS
  ITALIA SPA.

  	
   

  	
  Land
  Lord

  	
  1)

  	
   

  	
   

  	
  Guarantee
  Deposit

  	
   

  	
  EUR

  	
   

  	
  27

  	
   

  
	
  SULZER ORTHOPEDICS
  ITALIA SPA

  	
   

  	
  Land
  Lord

  	
  1)

  	
   

  	
   

  	
  Guarantee
  Deposit

  	
   

  	
  EUR

  	
   

  	
  3

  	
   

  
	
  SULZER ORTHOPEDICS
  ITALIA SPA

  	
   

  	
   

  	
  1)

  	
   

  	
   

  	
  Guarantee

  	
   

  	
  EUR

  	
   

  	
  258

  	
   

  
	
  SULZER ORTHOPEDICS
  ITALIA SPA

  	
   

  	
  Government
  (VAT)

  	
  1)

  	
   

  	
   

  	
  Guarantee

  	
   

  	
  EUR

  	
   

  	
  203

  	
   

  
	
  SULZER ORTHOPEDICS
  ITALIA SPA

  	
   

  	
  Public
  Tenders

  	
  1)

  	
   

  	
   

  	
  Guarantee

  	
   

  	
  EUR

  	
   

  	
  1’715

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SULZER
  ORTHOPEDICS SWEDEN AB

  	
   

  	
  Nordea

  	
   

  	
  Tumba,
  SE

  	
   

  	
  Cash
  Collateral

  	
   

  	
  SEK

  	
   

  	
  70

  	
   

  
	
  SULZER
  ORTHOPEDICS SWEDEN AB

  	
   

  	
  Nordea

  	
   

  	
  Tumba,
  SE

  	
   

  	
  Cash
  Collateral

  	
   

  	
  SEK

  	
   

  	
  40

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CENTERPULSE LTD /  CENTERPULSE ORTHOPEDICS INC.

  	
   

  	
  Credit
  Suisse

  	
   

  	
  Zurich,
  CH

  	
   

  	
  Letter
  of Credit

  	
   

  	
  USD

  	
   

  	
  177

  	
   

  
	
  CENTERPULSE LTD /  CENTERPULSE ORTHOPEDICS INC.

  	
   

  	
  Credit
  Suisse

  	
   

  	
  Zurich,
  CH

  	
   

  	
  Letter
  of Credit

  	
   

  	
  USD

  	
   

  	
  350

  	
   

  
	
  CENTERPULSE LTD /  CENTERPULSE ORTHOPEDICS INC.

  	
   

  	
  Credit
  Suisse

  	
   

  	
  Zurich,
  CH

  	
   

  	
  Letter
  of Credit

  	
   

  	
  USD

  	
   

  	
  114

  	
   

  

 

139

 

	
  CENTERPULSE LTD /  CENTERPULSE ORTHOPEDICS INC.

  	
   

  	
  Credit
  Suisse

  	
   

  	
  Zurich,
  CH

  	
   

  	
  Letter
  of Credit

  	
   

  	
  USD

  	
   

  	
  1’660

  	
   

  
	
  CENTERPULSE LTD /  CENTERPULSE ORTHOPEDICS INC.

  	
   

  	
  Credit
  Suisse

  	
   

  	
  Zurich,
  CH

  	
   

  	
  Letter
  of Credit

  	
   

  	
  USD

  	
   

  	
  225

  	
   

  
	
  CENTERPULSE LTD /  CENTERPULSE ORTHOPEDICS INC.

  	
   

  	
  Credit
  Suisse

  	
   

  	
  Zurich,
  CH

  	
   

  	
  Letter
  of Credit

  	
   

  	
  USD

  	
   

  	
  100

  	
   

  
	
  CENTERPULSE ORTHOPEDICS
  INC.

  	
   

  	
  JP
  Morgan

  	
   

  	
  Houston,
  TX, USA

  	
   

  	
  Cash
  Collateral

  	
   

  	
  USD

  	
   

  	
  10’000

  	
   

  
	
  CENTERPULSE ORTHOPEDICS
  INC.

  	
   

  	
  JP
  Morgan

  	
   

  	
  Houston,
  TX, USA

  	
   

  	
  Cash
  Collateral

  	
   

  	
  USD

  	
   

  	
  10’000

  	
   

  
	
  CENTERPULSE ORTHOPEDICS
  INC.

  	
   

  	
  AAOS
  hotel deposits

  	
  1)

  	
   

  	
   

  	
  Cash
  Collateral

  	
   

  	
  USD

  	
   

  	
  18

  	
   

  
	
  CENTERPULSE ORTHOPEDICS
  INC.

  	
   

  	
  AAOS
  booth deposits

  	
  1)

  	
   

  	
   

  	
  Cash
  Collateral

  	
   

  	
  USD

  	
   

  	
  178

  	
   

  
	
  CENTERPULSE ORTHOPEDICS
  INC.

  	
   

  	
  Deer
  Valley Resort

  	
  1)

  	
   

  	
   

  	
  Cash
  Collateral

  	
   

  	
  USD

  	
   

  	
  25

  	
   

  
	
  CENTERPULSE ORTHOPEDICS
  INC.

  	
   

  	
  Four
  Seasons Aviara

  	
  1)

  	
   

  	
   

  	
  Cash
  Collateral

  	
   

  	
  USD

  	
   

  	
  20

  	
   

  
	
  CENTERPULSE ORTHOPEDICS
  INC.

  	
   

  	
  St.
  Regis Monach

  	
  1)

  	
   

  	
   

  	
  Cash
  Collateral

  	
   

  	
  USD

  	
   

  	
  25

  	
   

  
	
  CENTERPULSE ORTHOPEDICS
  INC.

  	
   

  	
  Harvard
  Medical School

  	
  1)

  	
   

  	
   

  	
  Cash
  Collateral

  	
   

  	
  USD

  	
   

  	
  10

  	
   

  
	
  CENTERPULSE ORTHOPEDICS
  INC.

  	
   

  	
  various
  for meeting deposits (< USD 10k)

  	
  1)

  	
   

  	
   

  	
  Cash
  Collateral

  	
   

  	
  USD

  	
   

  	
  35

  	
   

  
	
  CENTERPULSE ORTHOPEDICS
  INC.

  	
   

  	
  misc.
  deposits

  	
  1)

  	
   

  	
   

  	
  Cash
  Collateral

  	
   

  	
  USD

  	
   

  	
  13

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CENTERPULSE LTD /  CENTERPULSE GERMANY GMBH

  	
   

  	
  Hypovereinsbank

  	
   

  	
  Stuttgart,
  DE

  	
   

  	
  Letter
  of Guarantee

  	
   

  	
  EUR

  	
   

  	
  34

  	
   

  
	
  CENTERPULSE LTD /  CENTERPULSE GERMANY GMBH

  	
   

  	
  Hypovereinsbank

  	
   

  	
  Stuttgart,
  DE

  	
   

  	
  Letter
  of Guarantee

  	
   

  	
  EUR

  	
   

  	
  35

  	
   

  
	
  CENTERPULSE GERMANY
  GMBH

  	
   

  	
  Deutsche Bank

  	
   

  	
  Freiburg,
  DE

  	
   

  	
  Letter
  of Guarantee

  	
   

  	
  EUR

  	
   

  	
  21

  	
   

  
	
  CENTERPULSE GERMANY
  GMBH

  	
   

  	
  Deutsche Bank

  	
   

  	
  Freiburg,
  DE

  	
   

  	
  Letter
  of Guarantee

  	
   

  	
  EUR

  	
   

  	
  11

  	
   

  
	
  CENTERPULSE LTD/
  CENTERPULSE GERMANY HOLDING GMBH

  	
   

  	
  Deutsche Bank

  	
   

  	
  Freiburg,
  DE

  	
   

  	
  Cash
  Collateral

  	
   

  	
  EUR

  	
   

  	
  31

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CENTERPULSE BELUX SA/NV

  	
   

  	
  BBL

  	
   

  	
  Brussels,
  BE

  	
   

  	
  Letter
  of Guarantee

  	
   

  	
  EUR

  	
   

  	
  39

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CENTERPULSE NETHERLANDS
  B.V.

  	
   

  	
  ABN-AMRO
  BANK

  	
   

  	
  Utrecht,
  NL

  	
   

  	
  Cash
  Collateral

  	
   

  	
  EUR

  	
   

  	
  74

  	
   

  
	
  CENTERPULSE NETHERLANDS
  B.V.

  	
   

  	
  ABN-AMRO
  BANK

  	
   

  	
  Utrecht,
  NL

  	
   

  	
  Cash
  Collateral

  	
   

  	
  EUR

  	
   

  	
  21

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SULZER ORTHOPEDICS CZ
  SRO

  	
   

  	
  GP
  Beta

  	
  1)

  	
   

  	
   

  	
  Cash
  Collateral

  	
   

  	
  CZK

  	
   

  	
  180

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SULZER CARDIOVASCULAR
  GMBH

  	
   

  	
  Dresdner
  Bank

  	
   

  	
  Hamburg,
  DE

  	
   

  	
  Cash
  Collateral

  	
   

  	
  EUR

  	
   

  	
  33

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SULZER CARDIOVASCULAR
  SA

  	
   

  	
  SCI
  Volta 8

  	
  1)

  	
   

  	
   

  	
  Cash
  Collateral

  	
   

  	
  EUR

  	
   

  	
  10

  	
   

  
	
  SULZER CARDIOVASCULAR
  SA

  	
   

  	
  Avis
  Fleet services

  	
  1)

  	
   

  	
   

  	
  Cash
  Collateral

  	
   

  	
  EUR

  	
   

  	
  3

  	
   

  
	
  SULZER CARDIOVASCULAR
  SA

  	
   

  	
  Total

  	
  1)

  	
   

  	
   

  	
  Cash
  Collateral

  	
   

  	
  EUR

  	
   

  	
  4

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CENTERPULSE KOREA LTD

  	
   

  	
  Building
  owner

  	
  1)

  	
   

  	
   

  	
  Cash
  Collateral

  	
   

  	
  KRW

  	
   

  	
  170’000

  	
   

  
	
  CENTERPULSE
  KOREA LTD

  	
   

  	
  Woori Bank

  	
  1)

  	
   Seoul, KR

  	
   

  	
  Cash
  Collateral

  	
   

  	
  KRW

  	
   

  	
  2’500

  	
   

  
	
  CENTERPULSE KOREA LTD

  	
   

  	
  SK
  Telecom Inc. etc

  	
  1)

  	
   

  	
   

  	
  Cash
  Collateral

  	
   

  	
  KRW

  	
   

  	
  2’236

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SULZER ORTHOPEDICS
  INDIA PRIVATE LTD

  	
   

  	
  CSulzer
  Intra-Therapeutic Inc.bank

  	
   

  	
   

  	
   

  	
  Cash
  Collateral

  	
   

  	
  INR

  	
   

  	
  5

  	
   

  
	
  SULZER ORTHOPEDICS
  INDIA PRIVATE LTD

  	
   

  	
  Vysya
  Bank

  	
   

  	
  Chennai,
  IN

  	
   

  	
  Cash
  Collateral

  	
   

  	
  INR

  	
   

  	
  5

  	
   

  
	
  SULZER ORTHOPEDICS
  INDIA PRIVATE LTD

  	
   

  	
  Mashkur
  Investment Corporation

  	
  1)

  	
   Chennai, IN

  	
   

  	
  Cash
  Collateral

  	
   

  	
  INR

  	
   

  	
  720

  	
   

  
	
  SULZER ORTHOPEDICS
  INDIA PRIVATE LTD

  	
   

  	
  Health
  Care

  	
  1)

  	
   Mumbai, IN

  	
   

  	
  Cash
  Collateral

  	
   

  	
  INR

  	
   

  	
  350

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SULZER ORTHOPEDICS RSA
  (PTY) LTD

  	
   

  	
  104
  Greenway CC

  	
  1)

  	
  1

  	
   

  	
  Cash
  Collateral

  	
   

  	
  ZAR

  	
   

  	
  7

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CENTERPULSE JAPAN KK

  	
   

  	
  Leasing
  Offices’ Owners

  	
  1)

  	
   

  	
   

  	
  Cash
  Collateral

  	
   

  	
  JPY

  	
   

  	
  32’236

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SULZER
  DENTAL SARL

  	
   

  	
  Socomie

  	
  1)

  	
   

  	
   

  	
  Cash
  Collateral

  	
   

  	
  EUR

  	
   

  	
  13

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CENTERPULSE DENTAL INC.

  	
   

  	
  Land
  Lord

  	
  1)

  	
   

  	
   

  	
  Cash
  Collateral

  	
   

  	
  USD

  	
   

  	
  42

  	
   

  
	
  CENTERPULSE DENTAL INC.

  	
   

  	
  Land
  Lord

  	
  1)

  	
   

  	
   

  	
  Cash
  Collateral

  	
   

  	
  USD

  	
   

  	
  5

  	
   

  
	
  CENTERPULSE DENTAL INC.

  	
   

  	
  Land
  Lord

  	
  1)

  	
   

  	
   

  	
  Cash
  Collateral

  	
   

  	
  USD

  	
   

  	
  30

  	
   

  
	
  CENTERPULSE DENTAL INC.

  	
   

  	
  Land
  Lord

  	
  1)

  	
   

  	
   

  	
  Cash
  Collateral

  	
   

  	
  USD

  	
   

  	
  7

  	
   

  
	
  CENTERPULSE DENTAL INC.

  	
   

  	
  Land
  Lord

  	
  1)

  	
   

  	
   

  	
  Cash
  Collateral

  	
   

  	
  USD

  	
   

  	
  0.5

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CENTERPULSE SPINE-TECH
  INC.

  	
   

  	
  Cabot
  Inc.

  	
  1)

  	
   

  	
   

  	
  Cash
  Collateral

  	
   

  	
  USD

  	
   

  	
  17

  	
   

  
	
  CENTERPULSE SPINE-TECH
  INC.

  	
   

  	
  Belz
  Corp.

  	
  1)

  	
   

  	
   

  	
  Cash
  Collateral

  	
   

  	
  USD

  	
   

  	
  13

  	
   

  
	
  CENTERPULSE SPINE-TECH
  INC.

  	
   

  	
  Memphis
  Gas & Light

  	
  1)

  	
   

  	
   

  	
  Cash
  Collateral

  	
   

  	
  USD

  	
   

  	
  18

  	
   

  

 

140

 

	
  CBUS/CPUSH

  	
   

  	
  Credit
  Suisse

  	
   

  	
   

  	
   

  	
  Letter
  of Credit

  	
   

  	
  USD

  	
   

  	
  800

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SULZER
  INTRA-THERAPEUTIC INC.

  	
   

  	
  Land
  Lord

  	
  1)

  	
   

  	
   

  	
  Cash
  Collateral

  	
   

  	
  USD

  	
   

  	
  19

  	
   

  
	
  SULZER
  INTRA-THERAPEUTIC INC.

  	
   

  	
  Land
  Lord

  	
  1)

  	
   

  	
   

  	
  Cash
  Collateral

  	
   

  	
  USD

  	
   

  	
  6

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Mortgage

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CENTERPULSE ORTHOPEDICS
  LTD

  	
   

  	
  Zuercher Kantonalbank

  	
   

  	
  Zurich, CH

  	
   

  	
  Mortgage

  	
   

  	
  CHF

  	
   

  	
  5’150

  	
   

  
	
  SULZER MITROFLOW CORP.

  	
   

  	
  CIBC

  	
   

  	
  Vancouver,
  CA

  	
   

  	
  Mortgage

  	
   

  	
  CAD

  	
   

  	
  276

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Various

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CENTERPULSE USA INC.

  	
   

  	
  EDCP

  	
  1)

  	
   

  	
   

  	
  Cash
  Collateral

  	
   

  	
  USD

  	
   

  	
  1’074

  	
   

  
	
  CENTERPULSE LTD

  	
   

  	
  Zurich
  Insurance

  	
  1)

  	
   

  	
   

  	
  Cash
  Collateral

  	
   

  	
  CHF

  	
   

  	
  13’000

  	
   

  

 

Notes:

1)
means Benficiary of the Security given

 

141

 

SCHEDULE 10

 

LMA
FORM OF CONFIDENTIALITY UNDERTAKING

 

LMA
CONFIDENTIALITY LETTER (SELLER)

 

[Letterhead of Seller/Seller’s agent/broker]

To:

 

[insert
name of Potential Purchaser/Purchaser’s agent/broker]

 

Re:                               The U.S. $635,000,000 Facility Agreement for Centerpulse Orthopedics
Inc. (the “Agreement”)

 

Borrower:

Date:

Amount:

Agent:

 

Dear Sirs

 

We understand
that you are considering [acquiring] /[arranging the acquisition of]  an interest in the Agreement (the
“Acquisition”).  In consideration of us
agreeing to make available to you certain information, by your signature of a
copy of this letter you agree as follows:

 

1.                                 Confidentiality Undertaking You undertake (a) to keep the
Confidential Information confidential and not to disclose it to anyone except
as provided for by paragraph 2 below and to ensure that the Confidential
Information is protected with security measures and a degree of care that would
apply to your own confidential information, (b) to use the Confidential
Information only for the Permitted Purpose, (c) to use all reasonable
endeavours to ensure that any person to whom you pass any Confidential
Information (unless disclosed under paragraph 2[(c)/(d)] below)
acknowledges and complies with the provisions of this letter as if that person
were also a party to it, and (d) not to make enquiries of any member of the
Group or any of their officers, directors, employees or professional advisers
relating directly or indirectly to the Acquisition.

 

2.                                 Permitted Disclosure We agree that you may disclose Confidential
Information:

 

(a)                                  to members of the Purchaser Group and their officers, directors,
employees and professional advisers to the extent necessary for the Permitted
Purpose and to any auditors of members of the Purchaser Group;

 

(b)                                 subject to the requirements of the Agreement, in accordance with the
Permitted Purpose so long as any prospective purchaser has delivered a letter
to you in equivalent form to this letter; subject to the requirements of the
Agreement, to any person to (or through) whom you  assign or transfer (or may potentially assign or transfer) all or
any of the rights, benefits and

 

142

 

obligations which you may acquire under the
Agreement or with (or through) whom you enter into (or may potentially enter
into) any sub-participation in relation to, or any other transaction under
which payments are to be made by reference to, the Agreement or the Borrower or
any member of the Group so long as that person has delivered a letter to you in
equivalent form to this letter; and

 

(c)                                  (i) where requested or required by any court of competent jurisdiction
or any competent judicial, governmental, supervisory or regulatory body, (ii)
where required by the rules of any stock exchange on which the shares or other
securities of any member of the Purchaser Group are listed or (iii) where
required by the laws or regulations of any country with jurisdiction over the
affairs of any member of the Purchaser Group.

 

3.                                 Notification of Required or Unauthorised Disclosure You agree (to
the extent permitted by law) to inform us of the full circumstances of any disclosure
under paragraph 2(d) or upon becoming aware that Confidential Information has
been disclosed in breach of this letter.

 

4.                                 Return of Copies If we so request in writing, you shall return all
Confidential Information supplied to you by us and destroy or permanently erase
all copies of Confidential Information made by you and use all reasonable
endeavours to ensure that anyone to whom you have supplied any Confidential
Information destroys or permanently erases such Confidential Information and
any copies made by them, in each case save to the extent that you or the
recipients are required to retain any such Confidential Information by any
applicable law, rule or regulation or by any competent judicial, governmental,
supervisory or regulatory body or in accordance with internal policy, or where
the Confidential Information has been disclosed under paragraph 2(d) above.

 

5.                                 Continuing Obligations The obligations in this letter are continuing
and, in particular, shall survive the termination of any discussions or
negotiations between you and us. 
Notwithstanding the previous sentence, the obligations in this letter
shall cease (a) if you become a party to or otherwise acquire (by assignment or
sub-participation) an interest, direct or indirect, in the Agreement or (b)
twelve months after you have returned all Confidential Information supplied to
you by us and destroyed or permanently erased all copies of Confidential
Information made by you (other than any such Confidential Information or copies
which have been disclosed under paragraph 2 above (other than sub-paragraph
2(a)) or which, pursuant to paragraph 4 above, are not required to be returned
or destroyed).

 

6.                                 No Representation; Consequences of Breach, etc You acknowledge and
agree that:

 

(a)                            neither we, [nor our principal] nor any member of the Group nor any
of our or their respective officers, employees or advisers (each a “Relevant
Person”) (i) make any representation or warranty, express or
implied, as to, or assume any responsibility for, the accuracy, reliability or
completeness of any of the Confidential Information or any other information
supplied by us or any member of the Group or the assumptions on which it is
based or (ii) shall be

 

143

 

under any obligation to update or correct any
inaccuracy in the Confidential Information or any other information supplied by
us or any member of the Group or be otherwise liable to you or any other person
in respect to the Confidential Information or any such information; and

 

(b)                           we [or our principal] or members of the Group may be irreparably
harmed by the breach of the terms hereof and damages may not be an adequate
remedy; each Relevant Person or member of the Group may be granted an
injunction or specific performance for any threatened or actual breach of the
provisions of this letter by you.

 

7.                                 No Waiver; Amendments, etc This letter sets out the full extent of
your obligations of confidentiality owed to us in relation to the information
the subject of this letter.  No failure
or delay in exercising any right, power or privilege hereunder will operate as
a waiver thereof nor will any single or partial exercise of any right, power or
privilege preclude any further exercise thereof or the exercise of any other
right, power or privileges hereunder. 
The terms of this letter and your obligations hereunder may only be
amended or modified by written agreement between us.

 

8.                                 Inside Information You acknowledge that some or all of the
Confidential Information is or may be price-sensitive information and that the
use of such information may be regulated or prohibited by applicable
legislation relating to insider dealing and you undertake not to use any
Confidential Information for any unlawful purpose.

 

9.                                 Nature of Undertakings  The
undertakings given by you under this letter are given to us and (without
implying any fiduciary obligations on our part) are also given for the benefit
of [our principal,] the Borrower and each other member of the Group.

 

10.                           Third Party Rights

 

(a)                            Subject to this paragraph 10, a person who is not a party to this
letter has no right under the Contracts (Rights of Third Parties) Act 1999 (the
“Third
Parties Act”) to enforce or to enjoy the benefit of any term of this
letter.

 

(b)                           The Relevant Persons may enjoy the benefit of the terms of
paragraphs 1, 3, 5, 6, 7, 8, 9 and 10 subject to and in accordance with this
paragraph 10 and the provisions of the Third Parties Act.

 

(c)                            Notwithstanding any provisions of this letter, the parties to this
letter do not require the consent of any Relevant Persons to rescind or vary
this letter at any time.

 

11.                           Governing Law and Jurisdiction This letter (including the agreement
constituted by your acknowledgement of its terms) shall be governed by and
construed in accordance with the laws of England and the parties submit to the
non-exclusive jurisdiction of the English courts.

 

144

 

12.                           Definitions In this letter (including the acknowledgement set out
below) terms defined in the Agreement shall, unless the context otherwise
requires, have the same meaning and:

 

“Confidential
Information” means any information relating to the Borrower, the
Group, the Agreement and/or the Acquisition including, without limitation, the
information memorandum provided to you by us or any of our affiliates or
advisers, in whatever form, and includes information given orally and any
document, electronic file or any other way of representing or recording
information which contains or is derived or copied from such information but
excludes information that (a) is or becomes public knowledge other than as a
direct or indirect result of any breach of this letter or (b) is known by you
before the date the information is disclosed to you by us or any of our
affiliates or advisers or is lawfully obtained by you thereafter, other than
from a source which is connected with the Group and which, in either case, as
far as you are aware, has not been obtained in violation of, and is not
otherwise subject to, any obligation of confidentiality;

 

“Group”
means the Borrower and each of its holding companies and subsidiaries and each
subsidiary of each of its holding companies (as each such term is defined in
the Companies Act 1985);

 

“Permitted
Purpose” means [subject to the terms of this letter, passing on
information to a prospective purchaser for the purpose of considering and
evaluating whether to enter into the Acquisition; and

 

“Purchaser
Group” means you, each of your holding companies and subsidiaries
and each subsidiary of each of your holding companies (as each such term is
defined in the Companies Act 1985).

 

Please
acknowledge your agreement to the above by signing and returning the enclosed
copy.

 

	
  Yours
  faithfully

  
	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  For and on
  behalf of

  
	
   

  
	
  [Seller/Seller’s
  agent/broker]

  
	
   

  
	
  To:

  	
  [Seller]

  
	
   

  	
   

  
	
   

  	
  [Seller’s
  agent/broker]

  
	
   

  	
   

  
	
   

  	
  The Borrower
  and each other member of the Group

  
	
   

  
	
  We
  acknowledge and agree to the above:

  
	
   

  	
   

  
			

 

145

 

	
  For and on
  behalf of

  
	
   

  
	
  [Potential
  Purchaser/Purchaser’s agent/broker]

  

 

146

 

SCHEDULE 11

 

TIMETABLES

 

	
  Delivery of
  a duly completed Utilisation Request (Clause 5.1 (Delivery of a Utilisation Request)
  or a Selection Notice (Clause 9.1 (Selection of Interest Periods)) 

  	
   

  	
  2:00 p.m.
  New York time on the day that is 4 Business Days before the proposed
  Utilisation Date or the start of an Interest Period

  
	
   

  	
   

  	
   

  
	
  Facility
  Agent notifies the Lenders of the Loan in accordance with Clause 5.4 (Lenders’
  participation)

  	
   

  	
  9:00 a.m.
  New York time on the date that is 3 Business Days before the proposed
  Utilisation Date

  
	
   

  	
   

  	
   

  
	
  LIBOR or
  PRIME RATE is fixed

  	
   

  	
  Quotation
  Day as of 11:00 a.m. London time for LIBOR

  Quotation
  Day as of 11.00 a.m. New York time for Prime Rate

  

 

147

 

SCHEDULE 12

 

ENVIRONMENTAL
WARRANTIES

 

NONE

 

148

 

SCHEDULE 13

 

OWNERSHIP
OF PROPERTIES

 

	
  Schedule 13: Ownership of Properties

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Updated as per 24.10.2002

  

 

	
  Company

  	
   

  	
  Address

  	
   

  	
  Property

  	
   

  	
  Type of Facility

  	
   

  	
  Land, Building

  	
   

  	
  Approx. Sqf

  	
   

  	
  Approx. m2

  	
   

  	
  Leased/Owned

  	
   

  	
  Secured by

  	
   

  
	
  CENTERPULSE
  ORTHOPEDICS LTD

  	
   

  	
  Grabenstr.
  25, 6341 Baar

  	
   

  	
  Baar,
  CH

  	
   

  	
  Offices

  	
   

  	
  Land, Building

  	
   

  	
  37’125/43’056

  	
   

  	
  3’449 / 4’000

  	
   

  	
  Owned

  	
   

  	
  Mortgage

  	
   

  
	
  CENTERPULSE
  ORTHOPEDICS LTD

  	
   

  	
  Erlenauweg 17, 3110 Munsingen-Bern

  	
   

  	
  Münsingen,
  CH

  	
   

  	
  Offices

  	
   

  	
  Land, Building

  	
   

  	
  49’514/113’711

  	
   

  	
  4’600 / 10’564

  	
   

  	
  Owned

  	
   

  	
  No

  	
   

  
	
  CENTERPULSE
  FRANCE SA

  	
   

  	
  Technoland,
  127, Avenue René Jacot, 25461 Etupes Cedex

  	
   

  	
  Etupes,
  FR

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  35’478

  	
   

  	
  3’296

  	
   

  	
  Owned

  	
   

  	
  No

  	
   

  
	
  CENTERPULSE
  FRANCE SA

  	
   

  	
  44,
  Rue du Bois Bourgeois, 25100 Montbéliard

  	
   

  	
  Montbéliard,
  FR

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  5’382

  	
   

  	
  500

  	
   

  	
  Owned

  	
   

  	
  No

  	
   

  
	
  CENTERPULSE
  CENTRE SARL

  	
   

  	
  Route
  de St. Bonnet, 03450 Ebreuil

  	
   

  	
  Ebreuil,
  FR

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  5’425

  	
   

  	
  504

  	
   

  	
  Owned

  	
   

  	
  No

  	
   

  
	
  CENTERPULSE
  INDUSTRIE SARL

  	
   

  	
  Technoland,
  127, Avenue René Jacot, 25461 Etupes Cedex

  	
   

  	
  Etupes,
  FR

  	
   

  	
  Offices,
  Manufacturing

  	
   

  	
  Building

  	
   

  	
  18’891

  	
   

  	
  1’755

  	
   

  	
  Owned

  	
   

  	
  No

  	
   

  
	
  SULZER ORTHOPÄDIE GMBH

  	
   

  	
  Enzersdorferstr. 12a, 2340 Modling b. Wien

  	
   

  	
  Mödling,
  AT

  	
   

  	
  Offices

  	
   

  	
  Land, Building

  	
   

  	
  10’764

  	
   

  	
  1’000

  	
   

  	
  Owned

  	
   

  	
  No

  	
   

  
	
  SULZER
  ORTHOPEDICS ITALIA SPA

  	
   

  	
  Via
  Cesare Pavese 4, 20090 Opera (MI)

  	
   

  	
  Milan,
  IT

  	
   

  	
  Offices,
  Warehouse

  	
   

  	
  Land, Building

  	
   

  	
  18’299

  	
   

  	
  1’700

  	
   

  	
  Owned

  	
   

  	
  No

  	
   

  
	
  SULZER
  ORTHOPEDICS ITALIA SPA

  	
   

  	
  Via
  Archimedes 41/43, Agrate Brianza (MI)

  	
   

  	
  Agrate,
  IT

  	
   

  	
  Offices

  	
   

  	
  Land, Building

  	
   

  	
  9’688

  	
   

  	
  900

  	
   

  	
  Owned

  	
   

  	
  No

  	
   

  
	
  ALLO
  SYSTEM SRL

  	
   

  	
  Via
  F.lli Cervi 22, 31050 Villorba

  	
   

  	
  Villorba,
  IT

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  2’045

  	
   

  	
  190

  	
   

  	
  Owned

  	
   

  	
  No

  	
   

  
	
  CENTERPULSE
  ORTHOPEDICS INC.

  	
   

  	
  9900
  Spectrum Drive, Austin TX 78717

  	
   

  	
  Austin,
  TX

  	
   

  	
  Offices,
  Manufacturing, R&D

  	
   

  	
  Land, Building

  	
   

  	
  210’000

  	
   

  	
  19’509

  	
   

  	
  Owned

  	
   

  	
  No

  	
   

  
	
  CENTERPULSE
  SPINE-TECH INC.

  	
   

  	
  7375
  Bush Lake Rd., Minneapolis MN, 55439-2029

  	
   

  	
  Minneapolis,
  MN

  	
   

  	
  Offices

  	
   

  	
  Land, Building

  	
   

  	
  196’022

  	
   

  	
  18’211

  	
   

  	
  Owned

  	
   

  	
  No

  	
   

  
	
  SULZER
  MITROFLOW CORP.

  	
   

  	
  11220
  Voyager Way, Unit 1, Richmond, BC V6X-3E1

  	
   

  	
  Richmond,
  CA

  	
   

  	
  Offices,
  Manufacturing

  	
   

  	
  Land, Building

  	
   

  	
  19’806

  	
   

  	
  1’840

  	
   

  	
  Owned

  	
   

  	
  Mortgage

  	
   

  
	
  VASCUTEK
  LTD.

  	
   

  	
  Newmains
  Avenue, Inchinnan, Renfrewshire PA4 9RR, Scotland

  	
   

  	
  Inchinnan,
  GB

  	
   

  	
  Offices,
  Manufacturing, R&D

  	
   

  	
  Land, Building

  	
   

  	
  62’510

  	
   

  	
  5’807

  	
   

  	
  Owned

  	
   

  	
  No

  	
   

  
	
  SULZER
  BIOLOGICS INC.

  	
   

  	
  Lot
  2 Block A Jaita Business Park

  	
   

  	
  Cedar
  Park, TX

  	
   

  	
  none

  	
   

  	
  Land

  	
   

  	
  22.8 acres

  	
   

  	
   

  	
   

  	
  Option
  to buy

  	
   

  	
  Letter
  of Credit

  	
   

  
	
  ALLO
  SYSTEM SRL.

  	
   

  	
  Via
  F.lli Cervi 22, 31050 Villorba

  	
   

  	
  Villorba,
  IT

  	
   

  	
  Offices,
  Warehouse

  	
   

  	
  Building

  	
   

  	
  16’146

  	
   

  	
  1’500

  	
   

  	
  Leasing

  	
   

  	
  No

  	
   

  
	
  CENTERPULSE
  LTD

  	
   

  	
  Andreasstr.
  15, 8050 Zurich

  	
   

  	
  Zürich,
  CH

  	
   

  	
  Offices,
  Storage

  	
   

  	
  Building

  	
   

  	
  35’747

  	
   

  	
  3’321

  	
   

  	
  Leased

  	
   

  	
  Cash
  Collateral

  	
   

  
	
  CENTERPULSE
  MANAGEMENT LTD

  	
   

  	
  Andreasstr.
  15, 8050 Zurich

  	
   

  	
  Zürich,
  CH

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  Leased

  	
   

  	
  No

  	
   

  
	
  CENTERPULSE
  ORTHOPEDICS LTD

  	
   

  	
  Sulzer
  Areal Geb. 540, 8404 Winterthur

  	
   

  	
  Winterthur,
  CH

  	
   

  	
  Offices,
  Manufacturing, R&D

  	
   

  	
  Building

  	
   

  	
  259’251

  	
   

  	
  24’085

  	
   

  	
  Leased

  	
   

  	
  Cash
  Collateral

  	
   

  
	
  CENTERPULSE
  ORTHOPEDICS LTD

  	
   

  	
  Altgasse 44, 6341 Baar

  	
   

  	
  Baar, CH

  	
   

  	
  Warehouse

  	
   

  	
  Building

  	
   

  	
  42’141

  	
   

  	
  3’915

  	
   

  	
  Leased

  	
   

  	
  No

  	
   

  
	
  CENTERPULSE
  ORTHOPEDICS LTD

  	
   

  	
  Jerome
  Bucher, Chevalier Place III, 26a, 168 Anfu Rd., 200031 Shanghai

  	
   

  	
  Shanghai,
  VRC

  	
   

  	
  Appartment

  	
   

  	
  Building

  	
   

  	
  3’143

  	
   

  	
  292

  	
   

  	
  Leased

  	
   

  	
  Cash
  Collateral

  	
   

  
	
  CENTERPULSE
  ORTHOPEDICS LTD

  	
   

  	
  23
  Fl. Room 2312, Nanzheng Bldg. 580 Nanjing West Rd., 200041 Shanghai

  	
   

  	
  Shanghai,
  VRC

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  1’324

  	
   

  	
  123

  	
   

  	
  Leased

  	
   

  	
  No

  	
   

  
	
  CENTERPULSE
  FRANCE SA

  	
   

  	
  10/12
  Av. de La Marne, 92120 Montrouge

  	
   

  	
  Montrouge,
  FR

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  2’024

  	
   

  	
  188

  	
   

  	
  Leased

  	
   

  	
  Cash
  Collateral

  	
   

  
	
  CENTERPULSE
  FRANCE SA

  	
   

  	
  Technoland,
  127, Avenue René Jacot, 25461 Etupes Cedex

  	
   

  	
  Etupes,
  FR

  	
   

  	
  Offices,
  Manufacturing

  	
   

  	
  Building

  	
   

  	
  8’073

  	
   

  	
  750

  	
   

  	
  Leased

  	
   

  	
  No

  	
   

  
	
  CENTERPULSE
  OUEST SARL

  	
   

  	
  ZAC
  du Triangle Vert, Montgerval, 35520 LaMézière

  	
   

  	
  La
  Mézière, FR

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  9’042

  	
   

  	
  840

  	
   

  	
  Leased

  	
   

  	
  Cash
  Collateral

  	
   

  
	
  CENTERPULSE
  NORD SARL

  	
   

  	
  201,
  Rue Colbert, Centre Vauban, 59003 Lille

  	
   

  	
  Lille,
  FR

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  5’339

  	
   

  	
  496

  	
   

  	
  Leased

  	
   

  	
  Cash
  Collateral

  	
   

  
	
  CENTERPULSE
  SUD-OUEST SARL

  	
   

  	
  17,
  Av. Raymond Grimaud, 31700 Toulouse Blagnac

  	
   

  	
  Toulouse,
  FR

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  6’943

  	
   

  	
  645

  	
   

  	
  Leased

  	
   

  	
  Cash
  Collateral

  	
   

  
	
  CENTERPULSE
  SUD-OUEST SARL

  	
   

  	
  Centre
  d’Affaires Cap Sud, Bâtiment Le Sirius, 84000 Avignon

  	
   

  	
  Avignon,
  FR

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  1’572

  	
   

  	
  146

  	
   

  	
  Leased

  	
   

  	
  Cash
  Collateral

  	
   

  
	
  SULZER
  ORTHOPEDICS ITALIA SPA

  	
   

  	
  Via
  del Lavoro 3, 20090 Opera (MI)

  	
   

  	
  Milan,
  IT

  	
   

  	
  Offices,
  Warehouse

  	
   

  	
  Building

  	
   

  	
  21’636

  	
   

  	
  2’010

  	
   

  	
  Leased

  	
   

  	
  Guarantee
  Deposit

  	
   

  
	
  SULZER
  ORTHOPEDICS ITALIA SPA

  	
   

  	
  Naples,
  IT

  	
   

  	
  Naples,
  IT

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  1’938

  	
   

  	
  180

  	
   

  	
  Leased

  	
   

  	
  Guarantee
  Deposit

  	
   

  
	
  SULZER
  ORTHOPEDICS ITALIA SPA

  	
   

  	
  Rome,
  IT

  	
   

  	
  Rome,IT

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  2’691

  	
   

  	
  250

  	
   

  	
  Leased

  	
   

  	
  No

  	
   

  

 

149

 

	
  Company

  	
   

  	
  Address

  	
   

  	
  Property

  	
   

  	
  Type of Facility

  	
   

  	
  Land, Building

  	
   

  	
  Approx. Sqf

  	
   

  	
  Approx. m2

  	
   

  	
  Leased/Owned

  	
   

  	
  Secured by

  	
   

  
	
  MIGLIORI
  SRL.

  	
   

  	
  Via
  Umberto, 79, 95029 Viagrande (Catania)

  	
   

  	
  Viagrande,
  IT

  	
   

  	
  Offices,
  Warehouse

  	
   

  	
  Building

  	
   

  	
  8’611

  	
   

  	
  800

  	
   

  	
  Leased

  	
   

  	
  No

  	
   

  
	
  CENTERPULSE
  NETHERLANDS BV

  	
   

  	
  Postbus 3070, Kanaalweg 14i . 352 KL, 3502 GB
  Utrecht

  	
   

  	
  Utrecht,
  NL

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  16’146

  	
   

  	
  1’500

  	
   

  	
  Leased

  	
   

  	
  Cash
  Collateral

  	
   

  
	
  CENTERPULSE
  BELUX SA/NV

  	
   

  	
  Bd. du Souverain 165, 1160 Bruxelles

  	
   

  	
  Brussels,
  BE

  	
   

  	
  Offices,
  Warehouse

  	
   

  	
  Building

  	
   

  	
  6’179

  	
   

  	
  574

  	
   

  	
  Leased

  	
   

  	
  Cash
  Collateral

  	
   

  
	
  CENTERPULSE
  (UK) LTD

  	
   

  	
  Herriard
  House, Mill Lane, Alton, Hampshire GU34 2QJ

  	
   

  	
  Alton,
  GB

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  3’670

  	
   

  	
  341

  	
   

  	
  Leased

  	
   

  	
  No

  	
   

  
	
  SULZER
  ORTHOPEDICS IBERICA SA

  	
   

  	
  Edificio
  Fiteni VI, Ronda de Poniente 19, 28760 Tres Cantos (Madrid)

  	
   

  	
  Madrid,
  ES

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  19’375

  	
   

  	
  1’800

  	
   

  	
  Leased

  	
   

  	
  Cash
  Collateral

  	
   

  
	
  SULZER
  ORTHOPEDICS IBERICA SA

  	
   

  	
  Lisbon,
  PO

  	
   

  	
  Lisbon,
  PO

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  2’691

  	
   

  	
  250

  	
   

  	
  Leased

  	
   

  	
  Cash
  Collateral

  	
   

  
	
  SULZER
  ORTHOPEDICS IBERICA SA

  	
   

  	
  Entenca
  332 – 6°1°, 08015 Barcelona

  	
   

  	
  Barcelona,
  ES

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  1’076

  	
   

  	
  100

  	
   

  	
  Leased

  	
   

  	
  Cash
  Collateral

  	
   

  
	
  SULZER ORTHOPEDICS SWEDEN AB

  	
   

  	
  Ellipsvägen 11A, 14175 Kungens Kurva

  	
   

  	
  Kungens Kurva, SE

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  3’434

  	
   

  	
  319

  	
   

  	
  Leased

  	
   

  	
  Cash
  Collateral

  	
   

  
	
  SULZER
  ORTHOPEDICS CZ SRO

  	
   

  	
  Na
  zertvach 2196/34, 18000 Prague

  	
   

  	
  Prague,
  CZ

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  2’906

  	
   

  	
  270

  	
   

  	
  Leased

  	
   

  	
  Cash
  Collateral

  	
   

  
	
  CENTERPULSE
  ORTHOPEDICS (SWITZERLAND) LTD

  	
   

  	
  Erlenauweg 17, 3110 Munsingen-Bern

  	
   

  	
  Münsingen,
  CH

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  21’528

  	
   

  	
  2’000

  	
   

  	
  Leased

  	
   

  	
  No

  	
   

  
	
  SULZER
  ORTHOPEDICS INDIA PRIVATE LTD

  	
   

  	
  3rd
  Floor, Mashkur Bldg.1, Krishnama Rd., Numgambakkam, Chennai 600 034

  	
   

  	
  Chennai,
  IN

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  3’200

  	
   

  	
  297

  	
   

  	
  Leased

  	
   

  	
  Cash
  Collateral

  	
   

  
	
  SULZER
  ORTHOPEDICS INDIA PRIVATE LTD

  	
   

  	
  Mumbai, IN

  	
   

  	
  Mumbai, IN

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  650

  	
   

  	
  60

  	
   

  	
  Leased

  	
   

  	
  Cash
  Collateral

  	
   

  
	
  CENTERPULSE
  KOREA LTD

  	
   

  	
  Imsung
  Bldg, 5th Floor,788-2 Yoksm-dong, Kangam-ku, Seoul 135-080

  	
   

  	
  Seoul,
  KR

  	
   

  	
  Offices,
  Warehouse

  	
   

  	
  Building

  	
   

  	
  5’404

  	
   

  	
  502

  	
   

  	
  Leased

  	
   

  	
  Cash
  Collateral

  	
   

  
	
  CENTERPULSE
  JAPAN KK

  	
   

  	
  Itopia
  Eitai Bldg. 7F, 1-3-7 Saga, Koto-ku, Tokyo

  	
   

  	
  Tokyo,
  JP

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  5’862

  	
   

  	
  545

  	
   

  	
  Leased

  	
   

  	
  Cash
  Collateral

  	
   

  
	
  CENTERPULSE
  JAPAN KK

  	
   

  	
  Itopia
  Eitai Bldg. 7F, 1-3-7 Saga, Koto-ku, Tokyo

  	
   

  	
  Tokyo,
  JP

  	
   

  	
  Inventory

  	
   

  	
  Building

  	
   

  	
  2’865

  	
   

  	
  266

  	
   

  	
  Leased

  	
   

  	
  Cash
  Collateral

  	
   

  
	
  CENTERPULSE
  JAPAN KK

  	
   

  	
  Sendai,
  JP

  	
   

  	
  Sendai,
  JP

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  290

  	
   

  	
  27

  	
   

  	
  Leased

  	
   

  	
  Cash
  Collateral

  	
   

  
	
  CENTERPULSE
  JAPAN KK

  	
   

  	
  Nagoya,
  JP

  	
   

  	
  Nagoya,
  JP

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  1’107

  	
   

  	
  103

  	
   

  	
  Leased

  	
   

  	
  Cash
  Collateral

  	
   

  
	
  CENTERPULSE
  JAPAN KK

  	
   

  	
  Kanazawa, JP

  	
   

  	
  Kanazawa, JP

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  384

  	
   

  	
  36

  	
   

  	
  Leased

  	
   

  	
  Cash
  Collateral

  	
   

  
	
  CENTERPULSE
  JAPAN KK

  	
   

  	
  Osaka,
  JP

  	
   

  	
  Osaka,
  JP

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  1’145

  	
   

  	
  106

  	
   

  	
  Leased

  	
   

  	
  Cash
  Collateral

  	
   

  
	
  CENTERPULSE
  JAPAN KK

  	
   

  	
  Hiroshima,
  JP

  	
   

  	
  Hiroshima,
  JP

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  567

  	
   

  	
  53

  	
   

  	
  Leased

  	
   

  	
  Cash
  Collateral

  	
   

  
	
  CENTERPULSE
  JAPAN KK

  	
   

  	
  Fukuoka,
  JP

  	
   

  	
  Fukuoka,
  JP

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  968

  	
   

  	
  90

  	
   

  	
  Leased

  	
   

  	
  Cash
  Collateral

  	
   

  
	
  CENTERPULSE
  AUSTRALIA PTY. LTD

  	
   

  	
  Level
  5, 384 Eastern Valley Way, Chatswood NSW 2067

  	
   

  	
  Chatswood,
  AU

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  11’970

  	
   

  	
  1’112

  	
   

  	
  Leased

  	
   

  	
  Cash
  Collateral

  	
   

  
	
  CENTERPULSE
  AUSTRALIA PTY. LTD

  	
   

  	
  22
  Cato Street, P.O. Box 820, East Hawthorne VIC 3123

  	
   

  	
  Melbourne, AU

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  6’458

  	
   

  	
  600

  	
   

  	
  Leased

  	
   

  	
  Cash
  Collateral

  	
   

  
	
  CENTERPULSE
  AUSTRALIA PTY. LTD

  	
   

  	
  Unit 8 / 43 Lang Parade, Milton QLD 4064

  	
   

  	
  Brisbane, AU

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  2’486

  	
   

  	
  231

  	
   

  	
  Leased

  	
   

  	
  No

  	
   

  
	
  CENTERPULSE
  AUSTRALIA PTY. LTD

  	
   

  	
  229
  Greenhill Rd., Dulwich SA 5065

  	
   

  	
  Adelaide,
  AU

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  1’335

  	
   

  	
  124

  	
   

  	
  Leased

  	
   

  	
  Letter
  of Guarantee

  	
   

  
	
  SULZER
  ORTHOPEDICS RSA (PTY.)  LTD

  	
   

  	
  P.O.
  Box 84651, 104 Greenway Rd. Greenside 2193, 2034 Greenside

  	
   

  	
  Greenside,
  ZA

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  1’615

  	
   

  	
  150

  	
   

  	
  Leased

  	
   

  	
  Cash
  Collateral

  	
   

  
	
  CENTERPULSE
  GERMANY GMBH

  	
   

  	
  Merzhauser Str. 112, 79100 Freiburg

  	
   

  	
  Freiburg,
  DE

  	
   

  	
  Offices,
  Warehouse

  	
   

  	
  Building

  	
   

  	
  47’857

  	
   

  	
  4’446

  	
   

  	
  Leased

  	
   

  	
  No

  	
   

  
	
  CENTERPULSE
  GERMANY GMBH

  	
   

  	
  Kreuzberger Ring 64, 65205 Wiesbaden

  	
   

  	
  Wiesbaden, DE

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  4’467

  	
   

  	
  415

  	
   

  	
  Leased

  	
   

  	
  Letter
  of Guarantee

  	
   

  
	
  CENTERPULSE
  GERMANY GMBH

  	
   

  	
  Martin-Kollar-Strasse 15, 81829 Munich

  	
   

  	
  Munich,
  DE

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  3’950

  	
   

  	
  367

  	
   

  	
  Leased

  	
   

  	
  Letter
  of Guarantee

  	
   

  
	
  CENTERPULSE
  GERMANY GMBH

  	
   

  	
  Bürkle-de-la-Camp-Platz 2, 44789 Bochum

  	
   

  	
  Bochum, DE

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  3’875

  	
   

  	
  360

  	
   

  	
  Leased

  	
   

  	
  Letter
  of Guarantee

  	
   

  
	
  CENTERPULSE
  GERMANY GMBH

  	
   

  	
  Komturstraße 18, 12099 Berlin

  	
   

  	
  Berlin, DE

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  3’875

  	
   

  	
  360

  	
   

  	
  Leased

  	
   

  	
  Letter
  of Guarantee

  	
   

  
	
  CENTERPULSE
  GERMANY HOLDING GMBH

  	
   

  	
  Merzhauser Str. 112, 79100 Freiburg

  	
   

  	
  Freiburg, DE

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  Leased

  	
   

  	
  No

  	
   

  
	
  CENTERPULSE
  USA HOLDING CO.

  	
   

  	
  12,
  Greenway Plaza, Suite 1000, Houston TX

  	
   

  	
  Houston,
  TX

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  Leased

  	
   

  	
  No

  	
   

  
	
  CENTERPULSE
  USA INC.

  	
   

  	
  12,
  Greenway Plaza, Suite 1000, Houston TX

  	
   

  	
  Houston,
  TX

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  10’000

  	
   

  	
  929

  	
   

  	
  Leased

  	
   

  	
  No

  	
   

  

 

150

 

	
  Company

  	
   

  	
  Address

  	
   

  	
  Property

  	
   

  	
  Type of Facility

  	
   

  	
  Land, Building

  	
   

  	
  Approx. Sqf

  	
   

  	
  Approx. m(2)

  	
   

  	
  Leased/Owned

  	
   

  	
  Secured by

  	
   

  
	
  CENTERPULSE
  ORTHOPEDICS CANADA INC.

  	
   

  	
  265
  Bartley Drive, Toronto, Ontario M4A 2N7

  	
   

  	
  Toronto,
  CA

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  Leased

  	
   

  	
  No

  	
   

  
	
  CENTERPULSE
  DENTAL INC.

  	
   

  	
  1900
  Aston Avenue, Carlsbad, CA 92008-7308

  	
   

  	
  Carlsbad,
  CA

  	
   

  	
  Offices,
  Manufacturing, R&D

  	
   

  	
  Building

  	
   

  	
  44’757

  	
   

  	
  4’158

  	
   

  	
  Leased

  	
   

  	
  Cash
  Collateral

  	
   

  
	
  CENTERPULSE
  DENTAL INC.

  	
   

  	
  Carlsbad,
  CA

  	
   

  	
  Carlsbad,
  CA

  	
   

  	
  Warehouse

  	
   

  	
  Building

  	
   

  	
  5’848

  	
   

  	
  543

  	
   

  	
  Leased

  	
   

  	
  Cash
  Collateral

  	
   

  
	
  CENTERPULSE
  DENTAL INC.

  	
   

  	
  27030
  Malibu Hills Rd., Calabasas, CA 91301

  	
   

  	
  Calabasas,
  CA

  	
   

  	
  Offices,
  Manufacturing

  	
   

  	
  Building

  	
   

  	
  36’000

  	
   

  	
  3’344

  	
   

  	
  Leased

  	
   

  	
  Cash
  Collateral

  	
   

  
	
  CENTERPULSE
  DENTAL INC.

  	
   

  	
  Encino,
  CA

  	
   

  	
  Encino,
  CA

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  14’361

  	
   

  	
  1’334

  	
   

  	
  Leased

  	
   

  	
  Cash
  Collateral

  	
   

  
	
  CENTERPULSE
  DENTAL INC.

  	
   

  	
  Arlington,
  TX

  	
   

  	
  Arlington,
  TX

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  588

  	
   

  	
  55

  	
   

  	
  Leased

  	
   

  	
  Cash
  Collateral

  	
   

  
	
  CENTERPULSE
  DENTAL CORP.

  	
   

  	
  170
  Attwell Dr., Suite 401, Etobicike, Ontario M9W 5Z5

  	
   

  	
  Etobicoke,
  CA

  	
   

  	
  Offices,
  Warehouse

  	
   

  	
  Building

  	
   

  	
  4’130

  	
   

  	
  384

  	
   

  	
  Leased

  	
   

  	
  No

  	
   

  
	
  CENTERPULSE
  DENTAL LTD

  	
   

  	
  143,
  Bialik Street, Ramat Gan 52523

  	
   

  	
  Ramat-Gan,
  IS

  	
   

  	
  Building

  	
   

  	
  1’604

  	
   

  	
  149

  	
   

  	
  Leased

  	
   

  	
  No

  	
   

  	
   

  	
   

  
	
  SULZER DENTAL GMBH

  	
   

  	
  Merzhauser Str. 112, 79100 Freiburg

  	
   

  	
  Freiburg, DE

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  1’733

  	
   

  	
  161

  	
   

  	
  Leased

  	
   

  	
  No

  	
   

  
	
  CENTERPULSE
  DENTAL AUSTRALIA PTY.

  	
   

  	
  35
  McDougall St., Kensington NSW 2033

  	
   

  	
  Kensington, AU

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  323

  	
   

  	
  30

  	
   

  	
  Leased

  	
   

  	
  No

  	
   

  
	
  SULZER DENTAL SARL

  	
   

  	
  1
  Rue Auguste Perret Silic 237, 94528 Rungis Cedex

  	
   

  	
  Rungis
  Cedex, FR

  	
   

  	
  Offices,
  Warehouse

  	
   

  	
  Building

  	
   

  	
  3’358

  	
   

  	
  312

  	
   

  	
  Leased

  	
   

  	
  Cash
  Collateral

  	
   

  
	
  CENTERPULSE
  SPINE-TECH INC.

  	
   

  	
  7415
  Cahill Rd., Edina MN 55439

  	
   

  	
  Minneapolis,
  MN

  	
   

  	
  Offices,
  Warehouse

  	
   

  	
  Building

  	
   

  	
  16’616

  	
   

  	
  1’544

  	
   

  	
  Leased

  	
   

  	
  Cash
  Collateral

  	
   

  
	
  CENTERPULSE
  SPINE-TECH INC.

  	
   

  	
  5400
  Meltech Drive, Suite 119, Memphis TN 38118

  	
   

  	
  Memphis,
  TN

  	
   

  	
  Offices,
  Warehouse

  	
   

  	
  Building

  	
   

  	
  30’000

  	
   

  	
  2’787

  	
   

  	
  Leased

  	
   

  	
  Cash
  Collateral

  	
   

  
	
  SULZER
  BIOLOGICS INC.

  	
   

  	
  12024
  Vista Park Drive, Austin, TX

  	
   

  	
  Austin,
  TX

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  8’551

  	
   

  	
  794

  	
   

  	
  Leased

  	
   

  	
  No

  	
   

  
	
  SULZER
  CARBOMEDICS INC.

  	
   

  	
  1300
  East Anderson Lane, Austin TX

  	
   

  	
  Austin,
  TX

  	
   

  	
  Offices,
  Lab, Mfg, R&D, Warehouse

  	
   

  	
  Building

  	
   

  	
  194’864

  	
   

  	
  18’103

  	
   

  	
  Leased

  	
   

  	
  Cash
  Collateral

  	
   

  
	
  SULZER
  MITROFLOW CORP.

  	
   

  	
  5005
  N. Fraser Way, Burnaby, BC

  	
   

  	
  Richmond,
  CA

  	
   

  	
  Offices,
  Manufacturing

  	
   

  	
  Building

  	
   

  	
  51’579

  	
   

  	
  4’792

  	
   

  	
  Leased

  	
   

  	
   

  	
   

  
	
  SULZER
  INTRA-THERAPEUTICS INC.

  	
   

  	
  651
  Campus Dr., St. Paul MN 55112

  	
   

  	
  St.
  Paul, MN

  	
   

  	
  Offices,
  Manufacturing, R&D

  	
   

  	
  Building

  	
   

  	
  46’970

  	
   

  	
  4’364

  	
   

  	
  Leased

  	
   

  	
  Cash
  Collateral

  	
   

  
	
  SULZER
  INTRA-THERAPEUTICS INC.

  	
   

  	
  739
  Kasota Avenue SE, Minneapolis, MN 55414

  	
   

  	
  Minneapolis,
  MN

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  8’000

  	
   

  	
  743

  	
   

  	
  Leased

  	
   

  	
  Cash
  Collateral

  	
   

  
	
  VASCUTEK
  LTD.US

  	
   

  	
  1300
  East Anderson Lane, Austin, TX 78752

  	
   

  	
  Austin,
  TX

  	
   

  	
  Offices,
  Warehouse

  	
   

  	
  Building

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  Leased

  	
   

  	
  No

  	
   

  
	
  CENTERPULSE
  (UK) HOLDINGS LTD

  	
   

  	
  Newmains
  Avenue, Inchinnan, Renfrewshire PA4 9RR, Scotland

  	
   

  	
  Inchinnan,
  GB

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  Leased

  	
   

  	
  No

  	
   

  
	
  SULZER
  CARDIOVASCULAR GMBH

  	
   

  	
  Albert-Einstein-Ring 19, 22761 Hamburg

  	
   

  	
  Hamburg,
  DE

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  7’761

  	
   

  	
  721

  	
   

  	
  Leased

  	
   

  	
  Cash
  Collateral

  	
   

  
	
  SULZER
  CARDIOVASCULAR GMBH

  	
   

  	
  Brummerforth 38a, 26160 Bad Zwischenahn

  	
   

  	
  Bad Zwischenahn, DE

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  807

  	
   

  	
  75

  	
   

  	
  Leased

  	
   

  	
  No

  	
   

  
	
  SULZER
  CARDIOVASCULAR BV

  	
   

  	
  Kanaalweg 141, 3526 KL Utrecht

  	
   

  	
  Utrecht,
  NL

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  2’153

  	
   

  	
  200

  	
   

  	
  Leased

  	
   

  	
  No

  	
   

  
	
  SULZER
  CARBOMEDICS UK LTD

  	
   

  	
  14/15
  The Courtyard, East Park, Crawley, West Sussex RH10 6AG

  	
   

  	
  Crawley,
  GB

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  530

  	
   

  	
  49

  	
   

  	
  Leased

  	
   

  	
  No

  	
   

  
	
  SULZER
  CARDIOVASCULAR SA

  	
   

  	
  Immeuble
  Le Volta, 17-19 Rue Jeanne Braconnier, 92366 Meudon-la-Forêt

  	
   

  	
  Meudon-La-Forêt
  Cedex, FR

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  2’368

  	
   

  	
  220

  	
   

  	
  Leased

  	
   

  	
  Cash
  Collateral

  	
   

  
	
  SULZER
  CARDIOVASCULAR LTD

  	
   

  	
  Altgasse 44, 6341 Baar

  	
   

  	
  Baar, CH

  	
   

  	
  Offices

  	
   

  	
  Building

  	
   

  	
  969

  	
   

  	
  90

  	
   

  	
  Leased

  	
   

  	
  No

  	
   

  
	
  CENTERPULSE
  CANADA INC.

  	
   

  	
  265
  Bartley Drive, Toronto, Ontario M4A 2N7

  	
   

  	
  Toronto,
  CA

  	
   

  	
  Offices,
  Warehouse

  	
   

  	
  Building

  	
   

  	
  12’000

  	
   

  	
  1’115

  	
   

  	
  Leased

  	
   

  	
  No

  	
   

  

 

151

 

SCHEDULE 14

 

MATERIAL
SUBSIDIARIES

 

Centerpulse
Ltd.

 

Centerpulse
Orthopedics Ltd.

 

Centerpulse
Germany GmbH

 

Centerpulse
France SA

 

Sulzer
Carbomedics Inc.

 

Centerpulse
Orthopedics Inc.

 

Centerpulse
Spine-Tech Inc.

 

Centerpulse
Dental Inc.

 

Centerpulse
USA Holding Co.

 

Centerpulse USA Inc.

 

Centerpulse
Orthopedics (Switzerland) AG

 

Centerpulse
Netherlands BV

 

Sulzer
Orthopädie GmbH

 

Sulzer
Orthopedics Italia S.p.A.

 

Centerpulse
(UK) Ltd.

 

Centerpulse
Ibérica SA

 

152

 

SCHEDULE 15

 

EXISTING
FINANCIAL INDEBTEDNESS

 

	
  Schedule 15: Existing Financial Indebtedness

  
	
   

  
	
  Updated
  as per

  	
   

  	
  24.10.02

  

 

	
  Borrower

  	
   

  	
  Lender

  	
   

  	
  Currency

  	
   

  	
  Amount in ‘000

  	
   

  
	
  Credit
  Lines with Banks

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Credit Line Amount in
  ‘000

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Credit Suisse

  	
   

  	
  CHF

  	
   

  	
  12’500

  	
   

  
	
  Centerpulse Orthopedics
  Ltd

  	
   

  	
  Credit Suisse

  	
   

  	
  CHF

  	
   

  	
  2’000

  	
   

  
	
  Centerpulse Management
  Ltd

  	
   

  	
  Credit Suisse

  	
   

  	
  CHF

  	
   

  	
  500

  	
   

  
	
  Centerpulse Orthopedics
  (Switzerland) Ltd

  	
   

  	
  Credit Suisse

  	
   

  	
  CHF

  	
   

  	
  500

  	
   

  
	
  Sulzer Orthopedics
  Italia Spa

  	
   

  	
  Hypovereinsbank

  	
   

  	
  EUR

  	
   

  	
  17’500

  	
   

  
	
  Sulzer Orthopedics
  Italia Spa

  	
   

  	
  Banca di Toscana

  	
   

  	
  EUR

  	
   

  	
  258

  	
   

  
	
  Sulzer Orthopedics
  Italia Spa

  	
   

  	
  BNL

  	
   

  	
  EUR

  	
   

  	
  516

  	
   

  
	
  Sulzer Orthopedics
  Italia Spa

  	
   

  	
  Cassa di Risp. Parma e
  Piacenza

  	
   

  	
  EUR

  	
   

  	
  516

  	
   

  
	
  Sulzer Orthopedics
  Italia Spa

  	
   

  	
  Cariplo

  	
   

  	
  EUR

  	
   

  	
  350

  	
   

  
	
  Sulzer Orthopedics
  Italia Spa

  	
   

  	
  Credito Italiano

  	
   

  	
  EUR

  	
   

  	
  207

  	
   

  
	
  Sulzer Orthopedics
  Italia Spa

  	
   

  	
  Banco Ambrosiano Veneto

  	
   

  	
  EUR

  	
   

  	
  200

  	
   

  
	
  Sulzer Orthopedics
  Italia Spa

  	
   

  	
  Monte dei Paschi di Siena

  	
   

  	
  EUR

  	
   

  	
  258

  	
   

  
	
  Allo System Srl

  	
   

  	
  Hypovereinsbank

  	
   

  	
  EUR

  	
   

  	
  1’300

  	
   

  
	
  Allo System Srl

  	
   

  	
  BCI

  	
   

  	
  EUR

  	
   

  	
  26

  	
   

  
	
  Allo System Srl

  	
   

  	
  Cassa di Risp. Udine e
  Pordenone

  	
   

  	
  EUR

  	
   

  	
  258

  	
   

  
	
  Allo System Srl

  	
   

  	
  Cassa Marca

  	
   

  	
  EUR

  	
   

  	
  52

  	
   

  
	
  Migliori Srl

  	
   

  	
  Hypovereinsbank

  	
   

  	
  EUR

  	
   

  	
  2’800

  	
   

  
	
  Migliori Srl

  	
   

  	
  Banca Popolare di
  Novara

  	
   

  	
  EUR

  	
   

  	
  77

  	
   

  
	
  Migliori Srl

  	
   

  	
  Banca Antonveneta

  	
   

  	
  EUR

  	
   

  	
  150

  	
   

  
	
  Migliori Srl

  	
   

  	
  Banca di Roma

  	
   

  	
  EUR

  	
   

  	
  110

  	
   

  
	
  Sulzer Orthoedics
  Ibérica SA

  	
   

  	
  BBVA

  	
   

  	
  EUR

  	
   

  	
  3’005

  	
   

  
	
  Sulzer Orthoedics
  Ibérica SA

  	
   

  	
  Banco Atlántico

  	
   

  	
  EUR

  	
   

  	
  2’000

  	
   

  
	
  Centerpulse BeLux SA/NV

  	
   

  	
  Fortis Bank

  	
   

  	
  EUR

  	
   

  	
  891

  	
   

  
	
  Centerpulse
  Orthopaedics (UK) Ltd

  	
   

  	
  Hypovereinsbank

  	
   

  	
  GBP

  	
   

  	
  2’600

  	
   

  
	
  Centerpulse Japan KK

  	
   

  	
  Hypovereinsbank

  	
   

  	
  JPY

  	
   

  	
  2’000’000

  	
   

  
	
  Centerpulse Japan KK

  	
   

  	
  Sumitomo Mitsui Bank

  	
   

  	
  JPY

  	
   

  	
  100’000

  	
   

  
	
  Centerpulse Japan KK

  	
   

  	
  Hypovereinsbank

  	
   

  	
  JPY

  	
   

  	
  200’000

  	
   

  
	
  Sulzer Orthopedics
  India Private Ltd

  	
   

  	
  Vysya Bank

  	
   

  	
  INR

  	
   

  	
  40’000

  	
   

  
	
  Centerpulse Australia
  Pty Ltd

  	
   

  	
  Westpac

  	
   

  	
  AUD

  	
   

  	
  560

  	
   

  
	
  Centerpulse France SA

  	
   

  	
  Crédit Lyonnais

  	
   

  	
  EUR

  	
   

  	
  3’049

  	
   

  
	
  Centerpulse France SA

  	
   

  	
  Banque Populaire

  	
   

  	
  EUR

  	
   

  	
  457

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  IC
  Loans

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Loan Amount in ‘000

  	
   

  
	
  Centerpulse BeLux SA/NV

  	
   

  	
  Centerpulse Ltd

  	
   

  	
  EUR

  	
   

  	
  930

  	
   

  
	
  Centerpulse Industrie
  Sarl

  	
   

  	
  Centerpulse Ltd

  	
   

  	
  EUR

  	
   

  	
  180

  	
   

  
	
  Centerpulse USA Holding
  Co.

  	
   

  	
  Centerpulse Ltd

  	
   

  	
  USD

  	
   

  	
  150’000

  	
   

  
	
  Centerpulse USA Holding
  Co.

  	
   

  	
  Centerpulse Ltd

  	
   

  	
  USD

  	
   

  	
  150’000

  	
   

  
	
  Centerpulse USA Holding
  Co.

  	
   

  	
  Centerpulse Ltd

  	
   

  	
  USD

  	
   

  	
  150’000

  	
   

  
	
  Centerpulse USA Holding
  Co.

  	
   

  	
  Centerpulse Ltd

  	
   

  	
  USD

  	
   

  	
  165’000

  	
   

  
	
  Centerpulse USA Holding
  Co.

  	
   

  	
  Centerpulse Ltd

  	
   

  	
  USD

  	
   

  	
  110’000

  	
   

  
	
  Centerpulse USA Holding
  Co.

  	
   

  	
  Centerpulse Ltd

  	
   

  	
  USD

  	
   

  	
  103’500

  	
   

  
	
  Centerpulse USA Holding
  Co.

  	
   

  	
  Centerpulse Ltd

  	
   

  	
  USD

  	
   

  	
  13’200

  	
   

  
	
  Centerpulse USA Holding
  Co.

  	
   

  	
  Centerpulse Ltd

  	
   

  	
  USD

  	
   

  	
  12’000

  	
   

  
	
  Centerpulse USA Holding
  Co.

  	
   

  	
  Centerpulse Ltd

  	
   

  	
  USD

  	
   

  	
  12’000

  	
   

  
	
  Centerpulse USA Holding
  Co.

  	
   

  	
  Centerpulse Ltd

  	
   

  	
  USD

  	
   

  	
  12’000

  	
   

  
	
  Centerpulse USA Holding
  Co.

  	
   

  	
  Centerpulse Ltd

  	
   

  	
  USD

  	
   

  	
  9’136

  	
   

  
	
  Centerpulse USA Holding
  Co.

  	
   

  	
  Centerpulse Ltd

  	
   

  	
  USD

  	
   

  	
  8’000

  	
   

  
	
  Centerpulse USA Holding
  Co.

  	
   

  	
  Centerpulse Ltd

  	
   

  	
  USD

  	
   

  	
  1’765

  	
   

  
	
  Centerpulse USA Inc.

  	
   

  	
  Centerpulse Ltd

  	
   

  	
  USD

  	
   

  	
  27’000

  	
   

  
	
  Sulzer Carbomedics UK
  Ltd

  	
   

  	
  Centerpulse Ltd

  	
   

  	
  GBP

  	
   

  	
  750

  	
   

  

 

153

 

	
  Sulzer Medica Finance
  (Curaçao) NV

  	
   

  	
  Centerpulse Ltd

  	
   

  	
  CHF

  	
   

  	
  5’000

  	
   

  
	
  Sulzer Medica Finance
  (Curaçao) NV

  	
   

  	
  Centerpulse Ltd

  	
   

  	
  USD

  	
   

  	
  29’967

  	
   

  
	
  Sulzer Medica Finance
  (Curaçao) NV

  	
   

  	
  Centerpulse Ltd

  	
   

  	
  USD

  	
   

  	
  1’220

  	
   

  
	
  Sulzer Medica Finance
  (Curaçao) NV

  	
   

  	
  Centerpulse Ltd

  	
   

  	
  CHF

  	
   

  	
  150’544

  	
   

  
	
  Sulzer Medica Finance
  (Curaçao) NV

  	
   

  	
  Centerpulse Ltd

  	
   

  	
  CHF

  	
   

  	
  904’050

  	
   

  
	
  Sulzer Medica Finance
  (Curaçao) NV

  	
   

  	
  Centerpulse Ltd

  	
   

  	
  CHF

  	
   

  	
  188’672

  	
   

  
	
  Sulzer Orthopedics CZ
  sro

  	
   

  	
  Centerpulse Ltd

  	
   

  	
  CZK

  	
   

  	
  47’000

  	
   

  
	
  Sulzer Orthopedics
  Ibérica SA

  	
   

  	
  Centerpulse Ltd

  	
   

  	
  EUR

  	
   

  	
  6’500

  	
   

  
	
  Sulzer Orthopedics
  Sweden AB

  	
   

  	
  Centerpulse Ltd

  	
   

  	
  SEK

  	
   

  	
  4’000

  	
   

  
	
  Sulzer Orthopedics
  Sweden AB

  	
   

  	
  Centerpulse Ltd

  	
   

  	
  SEK

  	
   

  	
  2’200

  	
   

  
	
  Sulzer Dental Sarl

  	
   

  	
  Centerpulse Dental Inc.

  	
   

  	
  USD

  	
   

  	
  106

  	
   

  
	
  Centerpulse Orthopedics
  GmbH

  	
   

  	
  Centerpulse Germany
  Holding GmbH

  	
   

  	
  EUR

  	
   

  	
  7’000

  	
   

  
	
  Sulzer Cardiovascular
  GmbH

  	
   

  	
  Centerpulse Germany
  Holding GmbH

  	
   

  	
  EUR

  	
   

  	
  2’199

  	
   

  
	
  Sulzer Orthopedics
  Ibérica S.A.

  	
   

  	
  Centerpulse Germany
  Holding GmbH

  	
   

  	
  EUR

  	
   

  	
  500

  	
   

  
	
  Sulzer Orthopedics
  Italia SpA

  	
   

  	
  Centerpulse Germany
  Holding GmbH

  	
   

  	
  EUR

  	
   

  	
  10’000

  	
   

  
	
  Sulzer Orthopedics
  Korea

  	
   

  	
  Centerpulse Japan KK

  	
   

  	
  JPY

  	
   

  	
  300’000

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Centerpulse Orthopedics
  (Switzerland) Ltd

  	
   

  	
  CHF

  	
   

  	
  3’000

  	
   

  
	
  Centerpulse Dental Inc.

  	
   

  	
  Centerpulse USA Holding
  Inc.

  	
   

  	
  USD

  	
   

  	
  20’661

  	
   

  
	
  Centerpulse Dental Inc.

  	
   

  	
  Centerpulse USA Holding
  Inc.

  	
   

  	
  USD

  	
   

  	
  3’113

  	
   

  
	
  Centerpulse Dental Inc.

  	
   

  	
  Centerpulse USA Holding
  Inc.

  	
   

  	
  USD

  	
   

  	
  70’000

  	
   

  
	
  Centerpulse Orthopedics
  Inc.

  	
   

  	
  Centerpulse USA Holding
  Inc.

  	
   

  	
  USD

  	
   

  	
  123’967

  	
   

  
	
  Centerpulse Orthopedics
  Inc.

  	
   

  	
  Centerpulse USA Holding
  Inc.

  	
   

  	
  USD

  	
   

  	
  19’075

  	
   

  
	
  Centerpulse Orthopedics
  Inc.

  	
   

  	
  Centerpulse USA Holding
  Inc.

  	
   

  	
  USD

  	
   

  	
  8’000

  	
   

  
	
  Sulzer Carbomedics Inc.

  	
   

  	
  Centerpulse USA Holding
  Inc.

  	
   

  	
  USD

  	
   

  	
  29’313

  	
   

  
	
  Sulzer Medica Canada
  Inc.

  	
   

  	
  Centerpulse USA Holding
  Inc.

  	
   

  	
  CAD

  	
   

  	
  2’300

  	
   

  
	
  Centerpulse USA Inc.

  	
   

  	
  Sulzer Carbomedics Canada
  Ltd

  	
   

  	
  USD

  	
   

  	
  2’350

  	
   

  
	
  Sulzer Mitroflow Corp.

  	
   

  	
  Centerpulse USA Inc.

  	
   

  	
  CAD

  	
   

  	
  393

  	
   

  
	
  Sulzer Mitroflow Corp.

  	
   

  	
  Centerpulse USA Inc.

  	
   

  	
  CAD

  	
   

  	
  907

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Sulzer Medica Finance
  (Curaçao) NV

  	
   

  	
  USD

  	
   

  	
  49’200

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Sulzer Medica Finance
  (Curaçao) NV

  	
   

  	
  EUR

  	
   

  	
  5’000

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Sulzer Medica Finance
  (Curaçao) NV

  	
   

  	
  USD

  	
   

  	
  1’770

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Sulzer Medica Finance
  (Curaçao) NV

  	
   

  	
  USD

  	
   

  	
  20’700

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Sulzer Medica Finance
  (Curaçao) NV

  	
   

  	
  USD

  	
   

  	
  103’500

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Sulzer Medica Finance
  (Curaçao) NV

  	
   

  	
  USD

  	
   

  	
  615’000

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Sulzer Medica Finance
  (Curaçao) NV

  	
   

  	
  USD

  	
   

  	
  110’000

  	
   

  
	
  Sulzer Dental Sarl

  	
   

  	
  Sulzer Medica Finance
  (Curaçao) NV

  	
   

  	
  EUR

  	
   

  	
  600

  	
   

  
	
  Centerpulse France SA

  	
   

  	
  Sulzer Medica Finance
  (Curaçao) NV

  	
   

  	
  EUR

  	
   

  	
  5’000

  	
   

  
	
  Centerpulse Germany Holding
  GmbH

  	
   

  	
  Sulzer Medica Finance
  (Curaçao) NV

  	
   

  	
  EUR

  	
   

  	
  20’000

  	
   

  
	
  Centerpulse Germany
  Holding GmbH

  	
   

  	
  Sulzer Medica Finance
  (Curaçao) NV

  	
   

  	
  EUR

  	
   

  	
  10’000

  	
   

  
	
  Centerpulse Orthopedics
  Ltd

  	
   

  	
  Sulzer Medica Finance
  (Curaçao) NV

  	
   

  	
  CHF

  	
   

  	
  92’000

  	
   

  
	
  Sulzer Cardiovascular
  BV

  	
   

  	
  Sulzer Medica Finance
  (Curaçao) NV

  	
   

  	
  EUR

  	
   

  	
  550

  	
   

  
	
  Sulzer Cardiovascular
  SA

  	
   

  	
  Sulzer Medica Finance
  (Curaçao) NV

  	
   

  	
  EUR

  	
   

  	
  1’220

  	
   

  
	
  Sulzer Orthopädie GmbH

  	
   

  	
  Sulzer Medica Finance
  (Curaçao) NV

  	
   

  	
  EUR

  	
   

  	
  1’850

  	
   

  
	
  Sulzer Mitroflow Corp.

  	
   

  	
  Centerpulse Orthopedics
  Canada Inc.

  	
   

  	
  CAD

  	
   

  	
  500

  	
   

  
	
  Sulzer Mitroflow Corp.

  	
   

  	
  Centerpulse Orthopedics
  Canada Inc.

  	
   

  	
  CAD

  	
   

  	
  500

  	
   

  
	
  Sulzer Carbomedics
  International Holding Co.

  	
   

  	
  Centerpulse USA Holding
  Inc.

  	
   

  	
  USD

  	
   

  	
  20’000

  	
   

  
	
  [Centerpulse USA
  Holding Inc.]

  	
   

  	
  [Centerpulse USA Inc.]

  	
   

  	
  [USD]

  	
   

  	
  [20’000]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  IC Current
  Accounts

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Centerpulse Germany
  Holding GmbH

  	
   

  	
  Centerpulse Ltd

  	
   

  	
  EUR

  	
   

  	
  605

  	
   

  
	
  Centerpulse Germany
  Holding GmbH

  	
   

  	
  Sulzer Medica Finance
  (Curaçao) NV

  	
   

  	
  EUR

  	
   

  	
  390

  	
   

  
	
  Centerpulse Germany
  Holding GmbH

  	
   

  	
  Centerpulse Orthopedics
  GmbH

  	
   

  	
  EUR

  	
   

  	
  21’332

  	
   

  
	
  Centerpulse Germany
  Holding GmbH

  	
   

  	
  Sulzer Cardiovascular
  GmbH

  	
   

  	
  EUR

  	
   

  	
  2’071

  	
   

  
	
  Centerpulse Germany
  Holding GmbH

  	
   

  	
  Sulzer Dental GmbH

  	
   

  	
  EUR

  	
   

  	
  339

  	
   

  

 

154

 

	
  Centerpulse USA Holding
  Inc.

  	
   

  	
  Centerpulse USA Inc.

  	
   

  	
  USD

  	
   

  	
  126’099

  	
   

  
	
  Centerpulse Orthopedics
  Inc.

  	
   

  	
  Centerpulse USA Inc.

  	
   

  	
  USD

  	
   

  	
  11’029

  	
   

  
	
  Centerpulse USA Inc.

  	
   

  	
  Centerpulse Spine-Tech
  Inc.

  	
   

  	
  USD

  	
   

  	
  141’554

  	
   

  
	
  Sulzer Biologics Inc.

  	
   

  	
  Centerpulse USA Inc.

  	
   

  	
  USD

  	
   

  	
  50’989

  	
   

  
	
  Centerpulse USA Inc.

  	
   

  	
  Centerpulse Dental Inc.

  	
   

  	
  USD

  	
   

  	
  369

  	
   

  
	
  Centerpulse USA Inc.

  	
   

  	
  Sulzer Carbomedics Inc.

  	
   

  	
  USD

  	
   

  	
  82’890

  	
   

  
	
  Sulzer Vascutek USA
  Inc.

  	
   

  	
  Centerpulse USA Inc.

  	
   

  	
  USD

  	
   

  	
  3’287

  	
   

  
	
  Sulzer Medica
  International FSC Inc.

  	
   

  	
  Centerpulse USA Inc.

  	
   

  	
  USD

  	
   

  	
  141

  	
   

  
	
  Sulzer
  Intratherapeutics Inc.

  	
   

  	
  Centerpulse USA Inc.

  	
   

  	
  USD

  	
   

  	
  13’969

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Finance
  Leasing

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Migliori Srl

  	
   

  	
  Leasing Roma

  	
   

  	
  EUR

  	
   

  	
  2

  	
   

  
	
  Centerpulse Orthopedics
  GmbH

  	
   

  	
  Hofmann Leasing

  	
   

  	
  EUR

  	
   

  	
  5

  	
   

  
	
  Centerpulse Orthopedics
  GmbH

  	
   

  	
  EL Camino

  	
   

  	
  EUR

  	
   

  	
  157

  	
   

  
	
  Sulzer Orthopädie GmbH

  	
   

  	
  Compaq Austria+Div

  	
   

  	
  EUR

  	
   

  	
  22

  	
   

  
	
  Centerpulse Industrie
  Sarl

  	
   

  	
  Batifranc

  	
   

  	
  EUR

  	
   

  	
  279

  	
   

  
	
  Centerpulse Dental Inc.

  	
   

  	
  US Bank Corp

  	
   

  	
  USD

  	
   

  	
  269

  	
   

  
	
  Centerpulse Dental Inc.

  	
   

  	
  US Bank Corp

  	
   

  	
  USD

  	
   

  	
  665

  	
   

  
	
  Sulzer Cardiovascular
  GmbH

  	
   

  	
  Avis Fleet Services

  	
   

  	
  EUR

  	
   

  	
  201

  	
   

  
	
  Sulzer Cardiovascular
  GmbH

  	
   

  	
  DB Leasing

  	
   

  	
  EUR

  	
   

  	
  35

  	
   

  
	
  Sulzer Cardiovascular
  GmbH

  	
   

  	
  DeTeWe

  	
   

  	
  EUR

  	
   

  	
  39

  	
   

  
	
  Centerpulse Dental
  Australia Pty

  	
   

  	
  BMW Australia

  	
   

  	
  AUD

  	
   

  	
  35

  	
   

  
	
  Centerpulse Dental
  Australia Pty

  	
   

  	
  GMAC

  	
   

  	
  AUD

  	
   

  	
  6

  	
   

  
	
  Centerpulse Dental
  Australia Pty

  	
   

  	
  Xerox

  	
   

  	
  AUD

  	
   

  	
  18

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fair
  Values as per 27.09.2002

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Centerpulse Korea Ltd

  	
   

  	
  Hanmi Bank

  	
   

  	
  KRW

  	
   

  	
  -1’722

  	
   

  
	
  Centerpulse Korea Ltd

  	
   

  	
  Hanmi Bank

  	
   

  	
  KRW

  	
   

  	
  26

  	
   

  
	
  Centerpulse Korea Ltd

  	
   

  	
  Hanmi Bank

  	
   

  	
  KRW

  	
   

  	
  -1’251

  	
   

  
	
  Centerpulse Korea Ltd

  	
   

  	
  Hanmi Bank

  	
   

  	
  KRW

  	
   

  	
  -1’481

  	
   

  
	
  Centerpulse Korea Ltd

  	
   

  	
  Hanmi Bank

  	
   

  	
  KRW

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Credit Suisse Group

  	
   

  	
  CHF

  	
   

  	
  -80

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Credit Suisse Group

  	
   

  	
  CHF

  	
   

  	
  -31

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  UBS AG

  	
   

  	
  CHF

  	
   

  	
  -2

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  UBS AG

  	
   

  	
  CHF

  	
   

  	
  78

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  UBS AG

  	
   

  	
  CHF

  	
   

  	
  115

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  UBS AG

  	
   

  	
  CHF

  	
   

  	
  5

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  UBS AG

  	
   

  	
  CHF

  	
   

  	
  0

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  UBS AG

  	
   

  	
  CHF

  	
   

  	
  -6

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -8

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -7

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -64

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  UBS AG

  	
   

  	
  CHF

  	
   

  	
  -33

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  UBS AG

  	
   

  	
  CHF

  	
   

  	
  667

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  UBS AG

  	
   

  	
  CHF

  	
   

  	
  -46

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  626

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  UBS AG

  	
   

  	
  CHF

  	
   

  	
  -6

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -144

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -69

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -50

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -28

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -18

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -17

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -16

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -15

  	
   

  

 

155

 

	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -14

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -14

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -14

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -13

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -12

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -11

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -8

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -7

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -7

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -5

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -5

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -5

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -5

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -5

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -4

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -4

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -4

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -3

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -3

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -3

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -3

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -2

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -2

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -2

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -2

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -2

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -2

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -2

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -2

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -2

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -2

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -2

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -1

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -1

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -1

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -1

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -0

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -0

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -0

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -0

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  -0

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  0

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  0

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  0

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  0

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  1

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  1

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  2

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  UBS AG

  	
   

  	
  CHF

  	
   

  	
  3

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  5

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  9

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  9

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sulzer Medica Finance
  (Curaçao) NV

  	
   

  	
  Credit Suisse Group

  	
   

  	
  USD

  	
   

  	
  61

  	
   

  
	
  Sulzer Medica Finance
  (Curaçao) NV

  	
   

  	
  UBS AG

  	
   

  	
  USD

  	
   

  	
  2

  	
   

  
	
  Sulzer Medica Finance
  (Curaçao) NV

  	
   

  	
  UBS AG

  	
   

  	
  USD

  	
   

  	
  185

  	
   

  

 

156

 

	
  Sulzer Medica Finance
  (Curaçao) NV

  	
   

  	
  UBS AG

  	
   

  	
  USD

  	
   

  	
  12

  	
   

  
	
  Sulzer Medica Finance
  (Curaçao) NV

  	
   

  	
  Zürcher Kantonalbank

  	
   

  	
  USD

  	
   

  	
  -17

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bonds

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sulzer Carbomedics Inc.

  	
   

  	
  JP Morgan

  	
   

  	
  USD

  	
   

  	
  25

  	
   

  
	
  Sulzer Carbomedics Inc.

  	
   

  	
  Bank of America

  	
   

  	
  USD

  	
   

  	
  1

  	
   

  
	
  Sulzer Carbomedics Inc.

  	
   

  	
  Bank of America

  	
   

  	
  USD

  	
   

  	
  3

  	
   

  
	
  Sulzer Carbomedics Inc.

  	
   

  	
  JP Morgan

  	
   

  	
  USD

  	
   

  	
  10

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Centerpulse Korea Ltd

  	
   

  	
  Woori Bank

  	
   

  	
  KRW

  	
   

  	
  8’230

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sulzer Orthopedics
  India Private Ltd

  	
   

  	
  Deutsche Bank

  	
   

  	
  INR

  	
   

  	
  233

  	
   

  
	
  Sulzer Orthopedics
  India Private Ltd

  	
   

  	
  Vysya Bank

  	
   

  	
  INR

  	
   

  	
  105

  	
   

  
	
  Sulzer Orthopedics
  India Private Ltd

  	
   

  	
  Vysya Bank

  	
   

  	
  INR

  	
   

  	
  61

  	
   

  
	
  Sulzer Orthopedics
  India Private Ltd

  	
   

  	
  Vysya Bank

  	
   

  	
  INR

  	
   

  	
  95

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Vascutek Ltd

  	
   

  	
  Bank of Scotland

  	
   

  	
  USD

  	
   

  	
  5

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Guarantees,
  Letter of Credits, Cash Collaterals

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Credit Suisse

  	
   

  	
  CHF

  	
   

  	
  180

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Credit Suisse

  	
   

  	
  CHF

  	
   

  	
  1’000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Centerpulse Orthopedics
  Ltd

  	
   

  	
  Credit Suisse

  	
   

  	
  CHF

  	
   

  	
  311

  	
   

  
	
  Centerpulse Orthopedics
  Ltd

  	
   

  	
  China Construction Bank

  	
   

  	
  CHF

  	
   

  	
  15

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Centerpulse Ltd
  /Centerpulse Australia Pty Ltd

  	
   

  	
  Westpac

  	
   

  	
  AUD

  	
   

  	
  45

  	
   

  
	
  Centerpulse Ltd /
  Centerpulse Australia Pty Ltd

  	
   

  	
  Westpac

  	
   

  	
  AUD

  	
   

  	
  64

  	
   

  
	
  Centerpulse Ltd /
  Centerpulse Australia Pty Ltd

  	
   

  	
  Westpac

  	
   

  	
  AUD

  	
   

  	
  5

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sulzer Orthopedics
  Ibérica SA

  	
   

  	
  Deutsche Bank

  	
   

  	
  EUR

  	
   

  	
  546

  	
   

  
	
  Centerpulse Ltd /
  Sulzer Orthopedics Ibérica SA

  	
   

  	
  BBVA Bank

  	
   

  	
  EUR

  	
   

  	
  265

  	
   

  
	
  Sulzer Orthopedics
  Ibérica SA

  	
   

  	
  Fundos y Obras

  	
   

  	
  EUR

  	
   

  	
  48

  	
   

  
	
  Sulzer Orthopedics
  Ibérica SA

  	
   

  	
  Prior Velho
  Inmobiliaria

  	
   

  	
  EUR

  	
   

  	
  4

  	
   

  
	
  Sulzer Orthopedics
  Ibérica SA

  	
   

  	
  Rentamar

  	
   

  	
  EUR

  	
   

  	
  4

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Centerpulse France SA

  	
   

  	
  Unipierre

  	
   

  	
  EUR

  	
   

  	
  11

  	
   

  
	
  Centerpulse France SA /
  Centerpulse Sud-Ouest Sarl

  	
   

  	
  Unipierre

  	
   

  	
  EUR

  	
   

  	
  4

  	
   

  
	
  Centerpulse France SA /
  Centerpulse Ouest Sarl

  	
   

  	
  SCI Aymeline

  	
   

  	
  EUR

  	
   

  	
  16

  	
   

  
	
  Centerpulse France SA
  Centerpulse Nord Sarl

  	
   

  	
  SCI Vauban, Unipierre

  	
   

  	
  EUR

  	
   

  	
  19

  	
   

  
	
  Centerpulse France SA /
  Centerpulse Sud-Ouest Sarl

  	
   

  	
  Cocci

  	
   

  	
  EUR

  	
   

  	
  7

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sulzer Orthopedics
  Italia Spa

  	
   

  	
  Land Lord

  	
   

  	
  EUR

  	
   

  	
  27

  	
   

  
	
  Sulzer Orthopedics
  Italia Spa

  	
   

  	
  Land Lord

  	
   

  	
  EUR

  	
   

  	
  3

  	
   

  
	
  Sulzer Orthopedics
  Italia Spa

  	
   

  	
   

  	
   

  	
  EUR

  	
   

  	
  258

  	
   

  
	
  Sulzer Orthopedics
  Italia Spa

  	
   

  	
  Government (VAT)

  	
   

  	
  EUR

  	
   

  	
  203

  	
   

  
	
  Sulzer Orthopedics
  Italia Spa

  	
   

  	
   

  	
   

  	
  EUR

  	
   

  	
  1’715

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sulzer Orthopedics
  Sweden AB

  	
   

  	
  Nordea

  	
   

  	
  SEK

  	
   

  	
  70

  	
   

  
	
  Sulzer Orthopedics
  Sweden AB

  	
   

  	
  Nordea

  	
   

  	
  SEK

  	
   

  	
  40

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Centerpulse Ltd
  /Centerpulse Orthopedics Inc.

  	
   

  	
  Credit Suisse

  	
   

  	
  USD

  	
   

  	
  177

  	
   

  
	
  Centerpulse Ltd / Centerpulse
  Orthopedics Inc.

  	
   

  	
  Credit Suisse

  	
   

  	
  USD

  	
   

  	
  350

  	
   

  
	
  Centerpulse Ltd /
  Centerpulse Orthopedics Inc.

  	
   

  	
  Credit Suisse

  	
   

  	
  USD

  	
   

  	
  114

  	
   

  
	
  Centerpulse Ltd /
  Centerpulse Orthopedics Inc.

  	
   

  	
  Credit Suisse

  	
   

  	
  USD

  	
   

  	
  1’660

  	
   

  
	
  Centerpulse Ltd /
  Centerpulse Orthopedics Inc.

  	
   

  	
  Credit Suisse

  	
   

  	
  USD

  	
   

  	
  225

  	
   

  

 

157

 

	
  Centerpulse Ltd /
  Centerpulse Orthopedics Inc.

  	
   

  	
  Credit Suisse

  	
   

  	
  USD

  	
   

  	
  100

  	
   

  
	
  Centerpulse Orthopedics
  Inc.

  	
   

  	
  JP Morgan

  	
   

  	
  USD

  	
   

  	
  10’000

  	
   

  
	
  Centerpulse Orthopedics
  Inc.

  	
   

  	
  JP Morgan

  	
   

  	
  USD

  	
   

  	
  10’000

  	
   

  
	
  Centerpulse Orthopedics
  Inc.

  	
   

  	
  AAOS hotel deposits

  	
   

  	
  USD

  	
   

  	
  18

  	
   

  
	
  Centerpulse Orthopedics
  Inc.

  	
   

  	
  AAOS booth deposits

  	
   

  	
  USD

  	
   

  	
  178

  	
   

  
	
  Centerpulse Orthopedics
  Inc.

  	
   

  	
  Deer Valley Resort

  	
   

  	
  USD

  	
   

  	
  25

  	
   

  
	
  Centerpulse Orthopedics
  Inc.

  	
   

  	
  Four Seasons Aviara

  	
   

  	
  USD

  	
   

  	
  20

  	
   

  
	
  Centerpulse Orthopedics
  Inc.

  	
   

  	
  St. Regis Monach

  	
   

  	
  USD

  	
   

  	
  25

  	
   

  
	
  Centerpulse Orthopedics
  Inc.

  	
   

  	
  Harvard Medical School

  	
   

  	
  USD

  	
   

  	
  10

  	
   

  
	
  Centerpulse Orthopedics
  Inc.

  	
   

  	
  various meeting
  deposits (< USD 10k)

  	
   

  	
  USD

  	
   

  	
  35

  	
   

  
	
  Centerpulse Orthopedics
  Inc.

  	
   

  	
  misc. deposits

  	
   

  	
  USD

  	
   

  	
  13

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Centerpulse Ltd /
  Centerpulse Germany GmbH

  	
   

  	
  Hypovereinsbank

  	
   

  	
  EUR

  	
   

  	
  34

  	
   

  
	
  Centerpulse Ltd /
  Centerpulse Germany GmbH

  	
   

  	
  Hypovereinsbank

  	
   

  	
  EUR

  	
   

  	
  35

  	
   

  
	
  Centerpulse Germany
  GmbH

  	
   

  	
  Deutsche Bank

  	
   

  	
  EUR

  	
   

  	
  21

  	
   

  
	
  Centerpulse Germany
  GmbH

  	
   

  	
  Deutsche Bank

  	
   

  	
  EUR

  	
   

  	
  11

  	
   

  
	
  Centerpulse Ltd
  /Centerpulse Germany Holding GmbH

  	
   

  	
  Deutsche Bank

  	
   

  	
  EUR

  	
   

  	
  31

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Centerpulse BeLux SA/NV

  	
   

  	
  BBL

  	
   

  	
  EUR

  	
   

  	
  39

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Centerpulse Netherlands
  BV

  	
   

  	
  ABN-AMRO BANK

  	
   

  	
  EUR

  	
   

  	
  74

  	
   

  
	
  Centerpulse Netherlands
  BV

  	
   

  	
  ABN-AMRO BANK

  	
   

  	
  EUR

  	
   

  	
  21

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sulzer Orthopedics CZ
  sro

  	
   

  	
  GP Beta

  	
   

  	
  CZK

  	
   

  	
  180

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sulzer Cardiovascular
  GmbH

  	
   

  	
  Dresdner Bank

  	
   

  	
  EUR

  	
   

  	
  33

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sulzer Cardiovascular
  SA

  	
   

  	
  SCI Volta 8

  	
   

  	
  EUR

  	
   

  	
  10

  	
   

  
	
  Sulzer Cardiovascular
  SA

  	
   

  	
  Avis Fleet services

  	
   

  	
  EUR

  	
   

  	
  3

  	
   

  
	
  Sulzer Cardiovascular
  SA

  	
   

  	
  Total

  	
   

  	
  EUR

  	
   

  	
  4

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Centerpulse Korea Ltd

  	
   

  	
  Building owner

  	
   

  	
  KRW

  	
   

  	
  170’000

  	
   

  
	
  Centerpulse Korea Ltd

  	
   

  	
  Woori Bank

  	
   

  	
  KRW

  	
   

  	
  2’500

  	
   

  
	
  Centerpulse Korea Ltd

  	
   

  	
  SK Telecom Inc. etc

  	
   

  	
  KRW

  	
   

  	
  2’236

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sulzer Orthopedics
  India Private Ltd

  	
   

  	
  Citibank

  	
   

  	
  INR

  	
   

  	
  5

  	
   

  
	
  Sulzer Orthopedics
  India Private Ltd

  	
   

  	
  Vysya Bank

  	
   

  	
  INR

  	
   

  	
  5

  	
   

  
	
  Sulzer Orthopedics
  India Private Ltd

  	
   

  	
  Mashkur Investment
  Corporation

  	
   

  	
  INR

  	
   

  	
  720

  	
   

  
	
  Sulzer Orthopedics
  India Private Ltd

  	
   

  	
  Health Care

  	
   

  	
  INR

  	
   

  	
  350

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sulzer Orthopedics RSA
  (Pty) Ltd

  	
   

  	
  104 Greenway CC

  	
   

  	
  ZAR

  	
   

  	
  7

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Centerpulse Japan KK

  	
   

  	
  Leasing Offices’ Owners

  	
   

  	
  JPY

  	
   

  	
  32’236

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sulzer Dental Sarl

  	
   

  	
  Socomie

  	
   

  	
  EUR

  	
   

  	
  13

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Centerpulse Dental Inc.

  	
   

  	
   

  	
   

  	
  USD

  	
   

  	
  42

  	
   

  
	
  Centerpulse Dental Inc.

  	
   

  	
   

  	
   

  	
  USD

  	
   

  	
  5

  	
   

  
	
  Centerpulse Dental Inc.

  	
   

  	
   

  	
   

  	
  USD

  	
   

  	
  30

  	
   

  
	
  Centerpulse Dental Inc.

  	
   

  	
   

  	
   

  	
  USD

  	
   

  	
  7

  	
   

  
	
  Centerpulse Dental Inc.

  	
   

  	
   

  	
   

  	
  USD

  	
   

  	
  0.5

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Centerpulse Spine-Tech
  Inc.

  	
   

  	
  Cabot Inc.

  	
   

  	
  USD

  	
   

  	
  17

  	
   

  
	
  Centerpulse Spine-Tech
  Inc.

  	
   

  	
  Belz Corp.

  	
   

  	
  USD

  	
   

  	
  13

  	
   

  
	
  Centerpulse Spine-Tech
  Inc.

  	
   

  	
  Memphis Gas & Light

  	
   

  	
  USD

  	
   

  	
  18

  	
   

  

 

158

 

	
  Centerpulse Ltd
  /Centerpulse USA Holding Co./Sulzer Biologics Inc.

  	
   

  	
  Credit Suisse

  	
   

  	
  USD

  	
   

  	
  800

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sulzer
  Intratherapeutics Inc.

  	
   

  	
  Land Lord

  	
   

  	
  USD

  	
   

  	
  19

  	
   

  
	
  Sulzer
  Intratherapeutics Inc.

  	
   

  	
  Land Lord

  	
   

  	
  USD

  	
   

  	
  6

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Mortgages

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Centerpulse Orthopedics
  Ltd

  	
   

  	
  Zuercher Kantonalbank

  	
   

  	
  CHF

  	
   

  	
  5’150

  	
   

  
	
  Sulzer Mitroflow Corp.

  	
   

  	
  CIBC

  	
   

  	
  CAD

  	
   

  	
  276

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Various

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Centerpulse Ltd

  	
   

  	
  Zurich Insurance

  	
   

  	
  CHF

  	
   

  	
  13’000

  	
   

  
	
  Sulzer Mitroflow Corp.

  	
   

  	
  previous owners of MIT

  	
   

  	
  CAD

  	
   

  	
  10’203

  	
   

  
	
  Sulzer Mitroflow Corp.

  	
   

  	
  previous owners of MIT,
  if FDA approval given to new site before 2007

  	
   

  	
  CAD

  	
   

  	
  17’000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Factoring

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  n.a.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

159

 

SCHEDULE 16

 

CAPITAL
STRUCTURE

 

160

 

 

161

 

SCHEDULE 17

 

EXISTING
INVESTMENTS

 

Each of the Investments in Equity Interests in the entities shown on
Schedule 16 (Capital Structure)
and each of the Investments listed in Schedule 15 (Existing Financial Indebetedness)

 

162

 

SCHEDULE 18

 

MORTGAGED
PROPERTY

 

	
  Address

  	
   

  	
  County

  	
   

  	
  Type of Mortgage

  	
   

  	
  Owner

  
	
  9900
  Spectrum Drive Austin, Texas

  	
   

  	
  Williamson

  	
   

  	
  Fee

  	
   

  	
  Centerpulse
  Orthopedics, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  73475 Bush
  Lake Road Minneapolis, Minnesota

  	
   

  	
  Hennepin

  	
   

  	
  Fee

  	
   

  	
  Centerpulse
  Spine-Tech Inc.

  

 

163

 

SIGNATURES

 

The Borrower

 

CENTERPULSE
ORTHOPEDICS INC.

 

 

	
  By:

  	
   

  	
  /s/ David S.
  Wise

  
	
   

  	
   

  	
  David S.
  Wise, Secretary

  

 

 

The Company

 

CENTERPULSE
LTD.

 

	
  By:

  	
   

  	
  /s/
  Christian Stambach

  	
   

  	
  /s/ Urs
  Kamber

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  Address:

  	
   

  	
  Andreasetrasse,
  15

  
	
   

  	
   

  	
  CH-8050
  Zurich

  
	
   

  	
   

  	
  Switzerland

  
	
  Tel:

  	
   

  	
  +41 1 308 98
  28

  
	
  Fax:

  	
   

  	
  +41 1 305 98
  21

  
	
  Attention:

  	
   

  	
  Corporate
  Treasurer

  
	
   

  	
   

  	
   

  

 

The Original
Guarantors

 

CENTERPULSE
ORTHOPEDICS LTD.

 

	
  By:

  	
   

  	
  /s/
  Christian Stambach

  	
   

  	
  /s/ Urs
  Kamber

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

CENTERPULSE
GERMANY GmbH

 

	
  By:

  	
   

  	
  /s/ Klaus
  Hug

  	
   

  	
  /s/ Georg
  Stadler

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

CENTERPULSE
FRANCE SA

 

	
  By:

  	
   

  	
  /s/ Marcel
  Bauckhage

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

SULZER
CARBOMEDICS INC.

 

	
  By:

  	
   

  	
  /s/ David S.
  Wise

  	
   

  	
   

  
	
   

  	
   

  	
  David S.
  Wise, Secretary

  	
   

  	
   

  

 

 

CENTERPULSE
ORTHOPEDICS INC.

 

	
  By:

  	
   

  	
  /s/ David S.
  Wise

  	
   

  	
   

  
	
   

  	
   

  	
  David S.
  Wise, Secretary

  	
   

  	
   

  

 

CENTERPULSE
SPINE-TECH INC.

 

	
  By:

  	
   

  	
  /s/ David S.
  Wise

  	
   

  	
   

  
	
   

  	
   

  	
  David S.
  Wise, Secretary

  	
   

  	
   

  

 

CENTERPULSE
DENTAL INC.

 

	
  By:

  	
   

  	
  /s/ David S.
  Wise

  	
   

  	
   

  
	
   

  	
   

  	
  David S.
  Wise, Secretary

  	
   

  	
   

  

 

CENTERPULSE
USA HOLDING CO.

 

	
  By:

  	
   

  	
  /s/ David S.
  Wise

  	
   

  	
   

  
	
   

  	
   

  	
  David S.
  Wise, Secretary

  	
   

  	
   

  

 

CENTERPULSE
USA INC.

 

	
  By:

  	
   

  	
  /s/ David S.
  Wise

  	
   

  	
   

  
	
   

  	
   

  	
  David S.
  Wise, Secretary

  	
   

  	
   

  

 

CENTERPULSE
ORTHOPEDICS (SWITZERLAND AG)

 

	
  By:

  	
   

  	
  /s/ Christian
  Stambach

  	
   

  	
  /s/ Marcel
  Bauckhage

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

CENTERPULSE
NETHERLANDS BV

 

	
  By:

  	
   

  	
  [Illegible]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

SULZER
ORTHOPÄDIE GmbH

 

	
  By:

  	
   

  	
  /s/ Marcel
  Bauckhage

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

SULZER
ORTHOPEDICS ITALIA S.p.A.

 

	
  By:

  	
   

  	
  /s/
  [Illegible]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  Address:

  	
   

  	
  Via Cesare
  Pavese, 4

  
	
   

  	
   

  	
  20090 Opera
  (Milano)

  
	
   

  	
   

  	
  Italy

  
	
   

  	
   

  	
  Tel.
  +G93356542732

  
	
   

  	
   

  	
  Fax 0041 91
  945 15 87

  

 

CENTERPULSE
(UK) LTD.

 

	
  By:

  	
   

  	
  /s/
  [Illegible]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

CENTERPULSE
IBÉRICA SA

 

	
  By:

  	
   

  	
  /s/ Urs
  Kamber

  	
   

  	
  [Illegible]

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

Signature
page to the U.S. $635,000,000 Facility Agreement among Centerpulse Ltd,
Centerpulse Orthopedics Inc, the other Original Guarantors, UBS Warburg Ltd. as
Arranger, the Original Lenders, UBS AG, Stamford Branch as Facility Agent and
UBS AG, Stamford Branch as Security Agent.

 

 

 

UBS
WARBURG LTD.

as
the Arranger

 

	
  By:

  	
   

  	
  /s/ Rachel
  Bew

  	
   

  	
  /s/ Duncan
  Perry

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  Rachel Bew

  	
   

  	
  Duncan Perry

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
  Director

  	
   

  	
  Director

  

 

 

Signature
page to the U.S. $635,000,000 Facility Agreement among Centerpulse Ltd,
Centerpulse Orthopedics Inc, the other Original Guarantors, UBS Warburg Ltd. as
Arranger, the Original Lenders, UBS AG, Stamford Branch as Facility Agent and
UBS AG, Stamford Branch as Security Agent.

 

 

 

ABN
AMRO N.Y., PARIS BRANCH

as
an Original Lender

 

	
  By:

  	
   

  	
  /s/ Rachel
  Bew

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  Rachel Bew

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
  Director

  	
   

  	
   

  

 

 

Signature
page to the U.S. $635,000,000 Facility Agreement among Centerpulse Ltd,
Centerpulse Orthopedics Inc, the other Original Guarantors, UBS Warburg Ltd. as
Arranger, the Original Lenders, UBS AG, Stamford Branch as Facility Agent and
UBS AG, Stamford Branch as Security Agent.

 

 

 

CREDIT
LYONNAIS S.A.

as
an Original Lender

 

	
  By:

  	
   

  	
  /s/ Rachel
  Bew

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  Rachel Bew

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
  Director

  	
   

  	
   

  

 

 

Signature
page to the U.S. $635,000,000 Facility Agreement among Centerpulse Ltd,
Centerpulse Orthopedics Inc, the other Original Guarantors, UBS Warburg Ltd. as
Arranger, the Original Lenders, UBS AG, Stamford Branch as Facility Agent and
UBS AG, Stamford Branch as Security Agent.

 

 

 

CREDIT
SUISSE

as
an Original Lender

 

	
  By:

  	
   

  	
  /s/
  Christophe Muller

  	
   

  	
  By:

  	
   

  	
  /s/ Stefan
  Willi

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  Christophe
  Muller

  	
   

  	
  Name:

  	
   

  	
  Stefan Willi

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
  Vice
  President

  	
   

  	
  Title:

  	
   

  	
  Associate

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Zurich,  October 29, 2002

  	
   

  	
   

  	
   

  	
   

  

 

 

Signature
page to the U.S. $635,000,000 Facility Agreement among Centerpulse Ltd,
Centerpulse Orthopedics Inc, the other Original Guarantors, UBS Warburg Ltd. as
Arranger, the Original Lenders, UBS AG, Stamford Branch as Facility Agent and
UBS AG, Stamford Branch as Security Agent.

 

 

 

GENERAL
ELECTRIC CAPITAL CORPORATION

as
an Original Lender

 

	
  By:

  	
   

  	
  /s/ Don C.
  Lee

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  Don C. Lee

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
  Duly
  Authorized Signatory

  	
   

  	
   

  

 

 

Signature
page to the U.S. $635,000,000 Facility Agreement among Centerpulse Ltd,
Centerpulse Orthopedics Inc, the other Original Guarantors, UBS Warburg Ltd. as
Arranger, the Original Lenders, UBS AG, Stamford Branch as Facility Agent and
UBS AG, Stamford Branch as Security Agent.

 

 

 

HVB
BANK IRELAND

as
an Original Lender

 

	
  By:

  	
   

  	
  /s/ Rachel
  Bew

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  Rachel Bew

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
  Director

  	
   

  	
   

  

 

 

Signature
page to the U.S. $635,000,000 Facility Agreement among Centerpulse Ltd,
Centerpulse Orthopedics Inc, the other Original Guarantors, UBS Warburg Ltd. as
Arranger, the Original Lenders, UBS AG, Stamford Branch as Facility Agent and
UBS AG, Stamford Branch as Security Agent.

 

 

 

ING
CAPITAL LLC

as
an Original Lender

 

	
  By:

  	
   

  	
  /s/ Darren
  Wells

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  Darren Wells

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
  Managing
  Director

  	
   

  	
   

  

 

 

Signature
page to the U.S. $635,000,000 Facility Agreement among Centerpulse Ltd,
Centerpulse Orthopedics Inc, the other Original Guarantors, UBS Warburg Ltd. as
Arranger, the Original Lenders, UBS AG, Stamford Branch as Facility Agent and
UBS AG, Stamford Branch as Security Agent.

 

 

 

SUNTRUST
BANK

as
an Original Lender

 

	
  By:

  	
   

  	
  /s/ W.
  Brooks Hubbard

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  W. Brooks
  Hubbard

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
  Director

  	
   

  	
   

  

 

 

Signature
page to the U.S. $635,000,000 Facility Agreement among Centerpulse Ltd,
Centerpulse Orthopedics Inc, the other Original Guarantors, UBS Warburg Ltd. as
Arranger, the Original Lenders, UBS AG, Stamford Branch as Facility Agent and
UBS AG, Stamford Branch as Security Agent.

 

 

 

THE
UNITED BANK OF KUWAIT PLC

as
an Original Lender

 

	
  By:

  	
   

  	
  /s/ R.J.
  Reynolds

  	
   

  	
  /s/
  [Illegible]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  R.J.
  Reynolds

  	
   

  	
  [Illegible]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
  Head of
  Structured Corporate Finance

  	
   

  	
  [Illegible]

  

 

 

Signature
page to the U.S. $635,000,000 Facility Agreement among Centerpulse Ltd,
Centerpulse Orthopedics Inc, the other Original Guarantors, UBS Warburg Ltd. as
Arranger, the Original Lenders, UBS AG, Stamford Branch as Facility Agent and
UBS AG, Stamford Branch as Security Agent.

 

 

 

UBS
AG, STAMFORD BRANCH

as
an Original Lender

 

	
  By:

  	
   

  	
  /s/ Wilfred
  V. Saint

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  Wilfred V.
  Saint

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
  Associate
  Director

  	
   

  	
   

  
	
   

  	
   

  	
  Banking
  Products

  	
   

  	
   

  
	
   

  	
   

  	
  Services, US

  	
   

  	
   

  

 

	
  By:

  	
   

  	
  /s/ Thomas
  R. Salzano

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  Thomas R.
  Salzano

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
  Director

  	
   

  	
   

  
	
   

  	
   

  	
  Banking
  Products Services, US

  	
   

  	
   

  

 

 

Signature
page to the U.S. $635,000,000 Facility Agreement among Centerpulse Ltd, Centerpulse
Orthopedics Inc, the other Original Guarantors, UBS Warburg Ltd. as Arranger,
the Original Lenders, UBS AG, Stamford Branch as Facility Agent and UBS AG,
Stamford Branch as Security Agent.

 

 

 

ZÜRCHER
KANTONALBANK

as
an Original Lender

 

	
  By:

  	
   

  	
  /s/ Rachel
  Bew

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  Rachel Bew

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
  Director

  	
   

  	
   

  

 

 

Signature
page to the U.S. $635,000,000 Facility Agreement among Centerpulse Ltd,
Centerpulse Orthopedics Inc, the other Original Guarantors, UBS Warburg Ltd. as
Arranger, the Original Lenders, UBS AG, Stamford Branch as Facility Agent and
UBS AG, Stamford Branch as Security Agent.

 

 

 

BAYERISCHE
HYPO-UND VEREINSBANK AG

as
a Working Capital Provider solely for the purposes

of
taking the benefit of Clause 17 of this Agreement

 

	
  By:

  	
   

  	
  /s/ Hofmann

  	
   

  	
  /s/ Rüber

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  Hofmann

  	
   

  	
  Rüber

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
  Senior
  Credit Analyst

  	
   

  	
  Relationship
  Manager

  

 

 

Signature
page to the U.S. $635,000,000 Facility Agreement among Centerpulse Ltd,
Centerpulse Orthopedics Inc, the other Original Guarantors, UBS Warburg Ltd. as
Arranger, the Original Lenders, UBS AG, Stamford Branch as Facility Agent and
UBS AG, Stamford Branch as Security Agent.

 

 

 

UBS
AG, STAMFORD BRANCH

as
the Facility Agent

 

	
  By:

  	
   

  	
  /s/ Wilfred
  V. Saint

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  Wilfred V.
  Saint

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
  Associate
  Director

  	
   

  	
   

  
	
   

  	
   

  	
  Banking
  Products

  	
   

  	
   

  
	
   

  	
   

  	
  Services, US

  	
   

  	
   

  

 

	
  By:

  	
   

  	
  /s/ Thomas
  R. Salzano

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  Thomas R.
  Salzano

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
  Director

  	
   

  	
   

  
	
   

  	
   

  	
  Banking
  Products Services, US

  	
   

  	
   

  

 

 

 

Signature
page to the U.S. $635,000,000 Facility Agreement among Centerpulse Ltd,
Centerpulse Orthopedics Inc, the other Original Guarantors, UBS Warburg Ltd. as
Arranger, the Original Lenders, UBS AG, Stamford Branch as Facility Agent and
UBS AG, Stamford Branch as Security Agent.

 

 

 

UBS
AG, STAMFORD BRANCH

as
the Security Agent

 

	
  By:

  	
   

  	
  /s/ Wilfred
  V. Saint

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  Wilfred V.
  Saint

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
  Associate
  Director

  	
   

  	
   

  
	
   

  	
   

  	
  Banking
  Products

  	
   

  	
   

  
	
   

  	
   

  	
  Services, US

  	
   

  	
   

  

 

	
  By:

  	
   

  	
  /s/ Thomas
  R. Salzano

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  Thomas R.
  Salzano

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
  Director

  	
   

  	
   

  
	
   

  	
   

  	
  Banking
  Products Services, USExhibit 4.23

 

Subscription and Underwriting Agreement

 

 

dated as of

September 27, 2002

 

 

by and between

Centerpulse
Ltd.,

 

Andreasstrasse 15

8050 Zurich, Switzerland

 

(hereinafter the “Company”)

 

and

 

UBS
AG,

 

acting through its business
group UBS Warburg

Europastrasse 1

8152 Opfikon, Switzerland

 

(hereinafter the “Global
Coordinator”)

 

and

 

InCentive
Capital AG

 

Baarerstrasse 8

6300 Zug, Switzerland

 

(hereinafter “InCentive”)

 

(InCentive and the Global
Coordinator together referred to as the “Underwriters”)

 

1

 

WHEREAS, the Company proposes
to conduct a capital increase with a rights offering to its existing
shareholders (Kapitalerhöhung mit Bezugsangebot an die bisherigen Aktionäre)
(the “Offering”)
pursuant to which the holders (the “Existing Shareholders”) of existing shares
of the Company (the “Old Shares”), subject to applicable
securities laws, have the right to subscribe pro rata (the “Preemptive
Rights”) for 1’822’408 newly issued shares with a nominal value of
CHF 30 each (the “Offered Shares” and, together with the Old
Shares, the “Shares”) to be offered by the Company.

 

WHEREAS, InCentive is a major
shareholder of the Company, holding as of September 24, 2002, through its
wholly-owned subsidiary InCentive Investment (Jersey) Ltd. (the “Jersey
Subsidiary”) 1’173’934 shares in the Company (corresponding to 11.73
% of the Company’s registered issued share capital), call options covering
478,000 shares (corresponding to 4.78% of the Company’s registered issued share
capital), and having granted through the Jersey Subsidiary put options covering
111,000 shares (corresponding to 1.11% of the Company’s registered issued share
capital).

 

WHEREAS, InCentive is prepared
(i) to subscribe for such number of Offered Shares as correspond to its
Preemptive Rights with respect to the shares held at the close of business on
the day before the ex-Preemptive Rights Date (as defined below) (the “InCentive
Shares”) in accordance with the terms of the Offering and (ii) to
subscribe for and underwrite that portion of Offered Shares for which
Preemptive Rights are not exercised by existing shareholders or new investors
having acquired the respective Preemptive Rights (the “Remaining Offered Shares”) up
to such number of Remaining Offered Shares as correspond, together with such
number of Offered Shares for which Preemptive Rights have been exercised by
InCentive, to 1’428’571 Offered Shares being approximately 78% of the aggregate
number of Offered Shares and to a maximum aggregate underwriting commitment of
CHF 200 million, respectively.

 

WHEREAS, the Global Coordinator
is prepared (i) to subscribe for and underwrite that portion of Offered Shares
for which Preemptive Rights have been exercised by existing shareholders (except
for InCentive and its subsidiaries) and new investors having acquired
Preemptive Rights, with an undertaking to allocate such Offered Shares to the
existing shareholders (except for InCentive and its subsidiaries) and new
investors having acquired Preemptive Rights, subject to compliance with
applicable securities laws and (ii) if any Remaining Offered Shares have not
been subscribed for following InCentive’s subscription for such shares, to
subscribe for and underwrite such Remaining Offered Shares up to an amount
corresponding to 393’837 Offered Shares being approximately 22% of the
aggregate number of the Offered Shares.

 

WHEREAS, Offered Shares sold in
the United States shall be sold only in the form of restricted American
depositary shares (the “Restricted ADSs”), with each such Offered
Share represented by ten Restricted ADSs. Except as the context may otherwise
require, references herein to the “Offered Shares” shall include the Offered
Shares and Restricted ADSs.

 

WHEREAS, the Restricted ADSs
are to be issued pursuant to a restricted deposit agreement (the “Restricted
Deposit Agreement”), dated on or before the Settlement Date, among
the Company, Citibank N.A., as depositary (the “Depositary”), and the holders
from time to time of the restricted American depositary receipts (the “Restricted
ADRs”) issued by the Depositary and evidencing the Restricted ADSs.

 

WHEREAS, all sales in the
United States by UBS AG, acting through its business group UBS Warburg, will be
made through its U.S. broker-dealer affiliates (the “Selling Agents”),

 

2

 

which shall be registered as
broker-dealers under the Securities and Exchange Act of 1934, as amended (the “Exchange Act”).

 

WHEREAS, application has been
made to list the Offered Shares on the main board of the SWX Swiss Exchange (“SWX”)
and to admit the Preemptive Rights to trading at the SWX.

 

WHEREAS, the Global Coordinator
and the Company have entered into a mandate agreement dated September 13, 2002
(the “Mandate
Agreement”).

 

WHEREAS, the Global Coordinator
and InCentive have entered into an agreement dated September 13, 2002 (the “InCentive
Agreement”) regarding certain undertakings of InCentive with respect
to the Offering.

 

WHEREAS, the Global Coordinator
will act as lead underwriter and will represent InCentive before the Company
and third parties.

 

WHEREAS, the Company has
prepared an offering and listing circular to be dated September 29, 2002 (the “Offering
Circular”) relating to the Offering and the listing of the Offered
Shares on the SWX.

 

NOW, THEREFORE, the parties
agree as follows:

 

1.               Capital Increase,
Subscription and Underwriting of Offered Shares

 

1.1                                 Resolutions
on Authorizing the Capital Increase. The Company confirms that (i)
the ordinary shareholders’ meeting held on May 17, 2002 authorized the board of
directors to issue up to 4,000,000 fully paid in registered shares (the “Authorized
Capital”) and (ii) the board of directors on September 27, 2002
approved an increase in the share capital of the Company under such Authorized
Capital from CHF 300’247’110 by CHF 54’672’240 to CHF 354’919’350 (the “Capital
Increase”) by issuing 1’822’408 Offered Shares with a nominal value
of CHF  30 (Ermächtigungsbeschluss). The
board of directors will implement the Capital Increase pursuant to Section 1.4.

 

1.2                                 Subscription
of Offered Shares. The Company agrees to issue, and each of the Global
Coordinator and InCentive, severally and not jointly, undertakes with the
Company, on the basis of the representations and warranties contained herein,
subject to the conditions stated herein and in view of the board of directors
of the Company having to resolve on the implementation of the Capital Increase
(the “Capital
Increase Resolution”) (Feststellungsbeschluss), to subscribe, on
or by October 9, 2002 (the “Capital Increase Date”), for up to such
number of Offered Shares at their nominal value and in the proportions set
forth below opposite its name, with the exact number of Offered Shares to be
subscribed for by each of the Global Coordinator and InCentive to be determined
by the Global Coordinator on behalf of the Underwriters no later 13:00 (Swiss
time) on the Last Exercise Date (as defined below), with the Global Coordinator
to subscribe for Offered Shares for which Preemptive Rights will have been
exercised by Existing Shareholders (except for InCentive and its subsidiaries)
and new investors having acquired Preemptive Rights in order to allocate such
Offered Shares to the holders of Preemptive Rights who have exercised their
Preemptive Rights and for only those Remaining Offered Shares that have not
been subscribed for following InCentive’s subscription for Remaining Offered
Shares, and to deliver the corresponding subscription forms substantially in
the form of Schedule

 

3

 

1.2 to the notary public notarizing the
Capital Increase Resolution no later than 13:00 (Swiss time) on the Capital
Increase Date.  It is understood and agreed that InCentive’s obligation to
subscribe for Remaining Offered Shares shall be first in priority, i.e., the
Global Coordinator shall be obliged to subscribe for any Remaining Offered
Shares only if and to the extent that the Remaining Offered Shares exceed the
total number of Offered Shares underwritten by InCentive and provided that
InCentive shall have fulfilled its underwriting obligations.  In fulfilling its underwriting obligations
pursuant to this Agreement, InCentive may act through the Jersey Subsidiary.

 

 

	
  Underwriters

  	
   

  	
  Number of
  Offered

  Shares underwritten

  	
   

  	
  Approximately

  Percentage of Offered

  Shares underwritten

  	
   

  
	
  Global
  Coordinator

  	
   

  	
  393’837

  	
   

  	
  22

  	
  %

  
	
  InCentive

  	
   

  	
  1’428’571

  	
   

  	
  78

  	
  %

  
	
  Total

  	
   

  	
  1’822’408

  	
   

  	
  100

  	
  %

  

 

1.3                                Transfer of the Nominal
Amount.

 

(a)           The
Global Coordinator on behalf of the Underwriters undertakes with the Company
subject to the terms and conditions set forth herein:

 

(i)  to deposit or cause to be
deposited same day funds for value on the Capital Increase Date (as defined
below), in the total amount of CHF 54’672’240 (the “Total Nominal Amount”) with
Zürcher Kantonalbank, Postfach, CH-8010 Zurich (“ZKB”) in a blocked account
for the Capital Increase (Kapitaleinzahlungskonto)  in
favor of the Company; and

 

(ii)  to cause ZKB to issue and
deliver a written confirmation of payment of the Total Nominal Amount to the
notary public notarizing the Capital Increase Resolution no later than 13:00
(Swiss time) on the Capital Increase Date.

 

(b)  InCentive shall pay on the
Settlement Date to the Global Coordinator the nominal value of each Offered Share
subscribed for by InCentive. The Global Coordinator shall have the right to
debit InCentive’s account no. 230-P0448910.0 with UBS AG.

 

1.4                                Capital Increase Resolution.
On the Capital Increase Date, the Company’s board of directors shall
immediately upon receipt of the subscription forms:

 

(a)                         pass the Capital Increase
Resolution (Feststellungsbeschluss)
and make all amendments to the Company’s articles of association necessary in
connection with the implementation of the Capital Increase; and

 

(b)                       file the Capital Increase
Resolution along with the relevant attachments thereto with the Commercial
Register of the Canton of Zurich (the “Commercial Register”) immediately after
this meeting of the board of directors.

 

4

 

1.5                                Use of Total Nominal Amount.
The Total Nominal Amount deposited on the blocked account for the Capital
Increase (Kapitaleinzahlungskonto)
shall, immediately following registration of the Capital Increase by the
Commercial Register, be transferred to an interest-free account of the Company
with UBS AG as follows:

 

At UBS AG,
Zurich,

bank clearing
no. 230

for the
account no. 403,736,30D of the

Company

 

The Company agrees that the Total Nominal Amount will remain deposited
and blocked with UBS AG until the earlier of (i) the Settlement Date (as
defined below), on which date such amount shall be released in accordance with
Section 4.3, or (ii) if an Event of Non-Completion (as defined below) occurs,
the date of receipt by the Underwriters of the proceeds of (a) the Capital
Reduction pursuant to Section 14.1(a) or (b) the options pursuant to Sections
14.1(b) and 14.1(c) (each the “Nominal Amount Payment Date”).

 

On the Nominal Amount Payment Date, the Total Nominal Amount deposited
with UBS AG, Zurich, for the account of the Company shall be released in same
day funds in such account as the Company may designate to UBS AG no later than
two business days prior to the Nominal Amount Payment Date.

 

1.6                                Documentation and Issue of Offered
Shares. Promptly after the registration of the Capital Increase by
the Commercial Register, but no later than on the first trading date, 08.00
(Swiss time), the Company shall:

 

(a)                        deliver to each of InCentive,
the Global Coordinator, the SWX, SIS SegaInterSettle AG, the Swiss securities
clearing corporation (“SIS”) and ShareCommServices AG, the
Company’s share register (“ShareComm”), a copy of a certified excerpt
from the Commercial Register along with a copy of the Company’s amended
articles of association evidencing the registration of the Capital Increase;
and

 

(b)                       take all steps necessary to
ensure that the Offered Shares will be (i) issued and delivered immediately
following the registration of the Capital Increase to the Global Coordinator
(ii) duly recorded with SIS and (iii) freely transferable. Accordingly, the
Company shall give the necessary instructions to SIS and ShareComm. The Global
Coordinator shall take reasonable and customary steps to assist in the
foregoing.

 

2.              The
Offering

 

2.1                                Terms of the Offering.  Holders of Preemptive Rights, except holders
of Preemptive Rights located in the United States (or in any other jurisdiction
where the exercise of the Preemptive Rights by such holders would be prohibited
by applicable law or regulation), will be entitled to purchase two (2) Offered
Shares at CHF 140 each (the “Offer Price”) for every 11 Preemptive
Rights held. Preemptive Rights will be traded on the SWX. The Shares will be
first traded ex-Preemptive Rights on October 3, 2002 (the “ex-Preemptive Rights Date”).
The trading period for the Preemptive Rights

 

5

 

will commence
on October 3, 2002 and end on October 8, 2002, at 17:00 (Swiss time). The
exercise period (the “Exercise Period”) for the Preemptive Rights
will commence on October 3, 2002, and end on October 9, 2002 at 12:00 noon
(Swiss time) (the “Last Exercise Date”). To the extent
Preemptive Rights are not exercised prior to or on the Last Exercise Date, the
Preemptive Rights will lapse without compensation.

 

The record date for the determination of Shareholders entitled to
Preemptive Rights is October 1, 2002.

 

2.2                                Delivery and Settlement.
Delivery to and payment of the Offered Shares by the holders having exercised
Preemptive Rights shall occur on October 15, 2002.

 

2.3                                Expired Preemptive Right Claims.  The Company shall assume full liability and
shall indemnify and hold harmless the Underwriters with respect to any claims
made by the owners of expired Preemptive Rights.

 

3.              Listing

 

3.1                                The Company confirms
that it has authorized the Global Coordinator’s filing of the application for
the Offered Shares to be listed on the SWX and application for the Preemptive
Rights to be admitted to trading at the SWX. On the Capital Increase Date the
Company shall have delivered to the SWX and the Global Coordinator a letter in
the form of Schedule 3.1.

 

3.2                                The Company will
deliver to the Global Coordinator two copies of the Offering Circular duly
signed by the Company and to the SWX copies of the Offering Circular as
required by the Listing Rules of the SWX (the “SWX Listing Rules”) and will
take such other steps as may be required for the purpose of obtaining a
listing.

 

4.              Settlement

 

4.1                                Settlement Date. The time
and date of payment of the Offer Price net commission and expenses (the “Settlement”)
shall be on October 15, 2002 (the “Settlement Date”). Any documents to be
delivered at the Settlement Date by or on behalf of the parties pursuant to
Section 12 will be delivered at the offices of Cleary, Gottlieb, Steen &
Hamilton, City Place House, 55 Basinghall St., London, England, EC2V 5EH.

 

4.2                                Settlement Actions. At the
Settlement the following actions shall be taken:

 

(a)               The Global Coordinator shall pay to the
Company the aggregate Offer Price payable for each Offered Share subscribed for
by the Global Coordinator less the nominal amount for each Offered Shares
subscribed for by the Global Coordinator, less any commissions, fees and
expenses payable to the Global Coordinator or InCentive pursuant to Section 10,
less any VAT, turnover or other taxes and stock exchange levies, by crediting
same-day funds in CHF to the Company’s account with UBS AG, Zurich, clearing
no. 230, account no. 40373630D.

 

6

 

(b)              InCentive shall pay to the Company the
aggregate Offer Price payable for each Offered Share subscribed for by
InCentive less the nominal amount for each Offered Share subscribed for by
InCentive, less any VAT, turnover or other taxes and stock exchange levies, by
crediting same-day funds in CHF to the Company’s account with UBS AG, Zurich,
clearing no. 230, account no. 40373630D.

 

(c)               InCentive shall pay to the Global
Coordinator the nominal value of each Offered Share subscribed for by InCentive
in accordance with Section 1.3(b).

 

(d)              The number of Offered Shares to be
subscribed for by each of InCentive and the Global Coordinator hereunder shall
be delivered by or on behalf of the Company to the Global Coordinator through
the facilities of SIS.

 

(e)               Subject to (i) delivery of all of the
Offered Shares to the Global Coordinator by the Company in accordance with
Section 4.2(d) above and (ii) payment of the nominal value of each Offered
Share subscribed for by InCentive to the Global Coordinator by InCentive in
accordance with Section 1.3(b), the Global Coordinator shall deliver such
number of Offered Shares subscribed for by InCentive into InCentive’s share
deposit no. 230-P0448910.1 (at UBS AG, Zurich, bank clearing no. 230).

 

4.3                                Unblocking of Company’s Account with
UBS AG. Upon payment of the amount and delivery of the Offered
Shares referred to in Section 4.2(c) above, the Global Coordinator will unblock
the account of the Company with UBS referred to in Section 1.5 and will
transfer the amounts in such account in accordance with Section 1.5 hereof.

 

5.              Representations
and Warranties of the Company

 

The Company represents and warrants to, and agrees with, each of the
Global Coordinator and InCentive as of the date hereof, the Capital Increase
Date and the Settlement Date that:

 

(a)     Disclosure. The
Offering Circular has been prepared in connection with the Offering. The
Offering Circular contains all material information with respect to the Company
and its subsidiaries (the “Group”) and the Offered Shares (including
all information which, according to the particular nature of the Company and of
the Offered Shares, is in the Company’s view necessary to enable investors to
make an informed assessment of the assets and liabilities, financial position,
profits and losses and prospects of the Company, the Group and of the rights
attaching to the Offered Shares); and the Offering Circular is and any
amendments or supplements thereto will be, as of their respective dates, true
and accurate in all material respects, and do not and will not, as of their
respective dates, contain an untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the
statements made, in light of the circumstances under which they were made, not
misleading; and the Offering Circular contains all material information
concerning any actual transactions or agreements or, to the best of the
Company’s knowledge, potential transactions or agreements, involving the
Company and/or the Group and

 

7

 

any director, shareholder or affiliate of the
Company; provided, however, that with respect to the Global Coordinator and
InCentive the representations and warranties made in this paragraph shall not
apply to any statements or omissions in the Offering Circular relating to the
Global Coordinator or InCentive in its capacity as an underwriter made in
reliance upon and in conformity with information furnished to the Company by or
on behalf of the Global Coordinator (which information is set forth in
(Schedule 5(a).1); and provided, further, however, that with respect to
InCentive the representations and warranties made in this paragraph shall not
apply to any statements or omissions in the Offering Circular relating to made
in reliance upon and in conformity with information furnished to the Company by
or on behalf of InCentive (which information is set forth in Schedule 5(a).2);

 

(b)     Takeovers.
Although the Company is not presently negotiating any transaction with any third
party proposing to launch an offer for all or a substantial part of its Shares
and no substantiated bids have been addressed to the Company in recent weeks,
there have been approaches in the year 2002 by third parties which the Board of
Directors considered insufficient and not in the best interest of shareholders
at the time.

 

(c)    
Requirements
of the SWX. The Offering Circular contains all particulars and
information required by, and complies with, applicable legal requirements and
rules and regulations of the SWX and otherwise complies with the requirements
of Swiss law, in particular, according to Article 652a of the Swiss Code of
Obligations and all other regulations to the extent applicable to the issue of
the Offered Shares;

 

(d)     Corporate
Existence of the Company. The Company has been duly incorporated and
is validly existing as a corporation under the laws of Switzerland, has no
pending bankruptcy, composition or similar proceedings pending against it in
its jurisdiction of incorporation, is not in liquidation or receivership.  The Company has full power and authority to
own or lease and operate its properties and conduct its business as described
in the Offering Circular, and has been duly qualified as a foreign corporation
for the transaction of business under the laws of each other jurisdiction in
which it owns or leases properties or conducts any business that requires such
qualification, or except where such fault would not have a material adverse
effect on the financial condition, business, properties, results of operations
or business prospects of the Company and its subsidiaries taken as a whole (a “Material
Adverse Effect”);

 

(e)     Corporate
Existence of Subsidiaries. Each of the Company’s subsidiaries has
been duly incorporated and is validly existing as a corporation under the laws
of its respective jurisdiction of incorporation, has no pending bankruptcy,
composition or similar proceedings pending against it in its jurisdiction of
incorporation, is not in liquidation or receivership and has full power and
authority to own or lease and operate its properties and conduct its business
as described in the Offering Circular, and has been duly qualified as a foreign
corporation for the transaction of business under the laws of each other
jurisdiction in which it owns or leases properties or conducts any business
that requires such qualification, or is subject to no material liability or
disability by reason of the failure to be so qualified in any such
jurisdiction; except where such fault would not have a Material Adverse Effect;

 

8

 

(f)      Agreement. The
Company has full right, power and authority to enter into this Agreement; this
Agreement has been duly authorized, executed and delivered by the Company and
constitutes valid and legally binding obligations of the Company and is
enforceable in accordance with its terms, subject to the effect of bankruptcy,
insolvency and other similar laws relating to or affecting creditors’ rights
generally and to general equity principles, and subject to mandatory provisions
of Swiss corporate law (Articles 659, 678 and 680 of the Swiss Code of
Obligations);

 

(g)     Share
Capital. As at the date indicated in the Offering Circular, the
Company has the outstanding, authorized and conditional share capital described
therein, and all of the issued share capital of the Company has been duly and
validly authorized and issued in accordance with Swiss law and the Company’s
Articles of Incorporation, and is fully paid and non-assessable and conforms to
the description of the share capital of the Company contained in the Offering
Circular; and all of the issued share capital of each  subsidiary of the Company has been duly and validly authorized
and issued, is fully paid and non-assessable and, except for directors’
qualifying shares, if any, and except as set forth in the Offering Circular or
as provided for by the terms of the commitment from UBS AG to lend the Company
USD 635 million in the form of a credit facility (or as provided for by the
agreement for such facility) (the “Credit Facility”, is owned directly or
indirectly by the Company, free and clear of all liens, encumbrances, equities
or claims except where such fault would not 
have a Material Adverse Effect; all of the shares of the Company,
including the Offered Shares, have been or will be at the date indicated in the
Offering Circular duly listed and admitted for trading on the SWX;  there are no
outstanding securities convertible into or exchangeable for, or warrants, rights
or options to purchase from the Company, or obligations of the Company to issue
any sharesor any other class of share capital of the Company (except as set
forth in the Offering Circular);

 

(h)     The Offered
Shares. The issuance of the Offered Shares will have been duly and
validly authorized on or prior to the date indicated in the Offering Circular,
and, when delivered and paid for in the manner contemplated by this Agreement
and the terms of the Preemptive Rights will have been duly and validly issued
and fully paid and non-assessable and will conform to the description of the
Offered Shares contained in the Offering Circular; there are no restrictions on
transfers of the Offered Shares pursuant to Swiss law or the Company’s articles
of association (Statuten) of the Company or otherwise, other than such as
described in the Offering Circular; the shareholders of the Company have no
further subscription, preemptive or other rights to acquire the Offer Shares
other than those described in the Offering Circular; the shareholders meeting
of May 17, 2002 has validly acted to authorize the Board of Directors of the
Company to issue the Offered Shares and the respective resolution has not been
challenged by a dissenting shareholder in court;

 

(i)      Consents. All
consents, approvals, authorizations, orders, registrations, clearances or
qualifications of or with any court or governmental agency or body or any stock
exchange authorities (the “Governmental Agency”) having jurisdiction
over the Company or any of its subsidiaries or any of their properties (the “Governmental
Authorizations”) required, for the execution and delivery by the
Company of this Agreement, for the issue or offering of the Offered Shares or
the consummation of the

 

9

 

other transactions contemplated by this
Agreement to be duly and validly authorized have been obtained or made and are
in full force and effect;

 

(j)      Dividends.
All dividends and other distributions declared and payable on the share capital
of the Company may under the current laws and regulations of Switzerland be
paid to the shareholders of the Company in Swiss francs that may be converted
into foreign currency that may be freely transferred out of Switzerland, and
except as set forth in the Offering Circular under “Taxation”, all such
dividends and other distributions will not be subject to withholding or other
taxes under the laws and regulations of Switzerland and are otherwise free and
clear of any tax, withholding or deduction in Switzerland and without the
necessity of obtaining any Governmental Authorization in Switzerland;

 

(k)     No
Conflicts—Company. The execution and delivery of this Agreement, the
issue and sale of the Offered Shares and the use of the proceeds of the sale of
the Offered Shares as described in the Offering Circular, the consummation of
the transactions herein and therein contemplated do not, or will not on or
prior to the Capital Increase Date or on the Settlement Date, subject to
mandatory provisions of Swiss corporate law (Articles 659, 678 and 680 of the
Swiss Code of Obligations), conflict with or result in a breach or violation of
any of the terms or provisions of, or constitute a default under, the documents
constituting the Company.  The execution
and delivery of this Agreement, the issue and sale of the Offered Shares and
the use of the proceeds of the sale of the Offered Shares as described in the
Offering Circular, the consummation of the transactions herein and therein
contemplated do not, or will not on or prior to the Capital Increase Date or on
the Settlement Date subject to mandatory provisions of Swiss corporate law
(Articles 659, 678 and 680 of the Swiss Code of Obligations), (i) conflict with
or result in a breach or violation of any of the terms or provisions of, or
constitute a default under any indenture, mortgage, deed of trust, lease, loan
agreement or other agreement or instrument to which the Company is a party or
by which the Company is bound or to which any of the property or assets of the
Company is subject or Swiss law or any statute or any order, rule or regulation
of any Governmental Agency having jurisdiction over the Company, or (ii)
infringe any existing applicable law, rule, regulation, judgment, order or
decree of any government, governmental body or court, domestic or foreign,
having jurisdiction over the Company or any of its properties or assets or
(iii) infringe the rules of any stock exchange on which securities of the
Company are listed, except where such conflict, breach, violation, default or
infringement would not have a Material Adverse Effect;

 

(l)      No
Conflicts—Subsidiaries. The execution and delivery of this
Agreement, the issue and sale of the Offered Shares and the use of the proceeds
of the sale of the Offered Shares as described in the Offering Circular, the
consummation of the transactions herein and therein contemplated do not, or
will not on or prior to the Capital Increase Date or on the Settlement Date,
conflict with or result in a breach or violation of any of the terms or
provisions of, or constitute a default under, (i) the documents constituting
the Company’s subsidiaries, or (ii) any indenture, mortgage, deed of trust,
lease, loan agreement or other agreement or instrument to which any of the
Company’s subsidiaries is a party or by which any of the Company’s subsidiaries
is bound or to which any of the property or assets of the Company’s
subsidiaries is

 

10

 

subject, except where such  breach, violation or default would not have
a Material Adverse Effect, nor will such action result in any violation of the
provisions of the Articles of Incorporation of any of the Company’s
subsidiaries, Swiss law or any statute or any order, rule or regulation of any
Governmental Agency having jurisdiction over any of the Company’s subsidiaries,
or infringe any existing applicable law, rule, regulation, judgment, order or
decree of any government, governmental body or court, domestic or foreign,
having jurisdiction over any of the properties or assets of any of the
Company’s subsidiaries or infringe the rules of any stock exchange on which
securities of any of the Company or its subsidiaries are listed, except any
such conflict, breach or default that would not  have a  Material Adverse
Effect;

 

(m)    General
Compliance. Neither the Company nor any of its subsidiaries is in
violation of its Articles of Association or other constituent documents;
neither the Company nor any of its subsidiaries is in violation, conflict or in
default in the performance or observance of any obligation, agreement, covenant
or condition contained in any indenture, mortgage, deed of trust, loan
agreement, lease or other agreement or instrument to which it is a party or by
which it or any of its properties may be bound, except any such conflict,
breach of default that would not  have
a  Material Adverse Effect;

 

(n)     No
Manipulation. Neither the Company nor any of its subsidiaries has
taken, directly or indirectly, any action which was designed to or which has constituted
or which would reasonably be expected to cause or result in stabilization or
manipulation of the price of any security of the Company to facilitate the sale
or resale of the Offered Shares other than in compliance with applicable law,
including Regulation M under the Exchange Act;

 

(o)     Financial
Statements. The consolidated balance sheets, cash flow statements,
shareholders’ equity statement and income statements of the Company (including
the notes thereto) included in the Offering Circular have been prepared in
accordance with International Accounting Standards (“IAS”), with the applicable
provisions of the Swiss Code of Obligations and  reconciled with generally accepted accounting principles
consistently applied in the United States (“U.S. GAAP”) and (i) present
fairly the financial position of the Company and its subsidiaries, as at the
end of each of the relevant financial periods, and the results of operations
and changes in financial position and cashflows of the Company and its
subsidiaries for each such period; (ii) have been prepared after due and
careful inquiry by the Company and, where applicable, its subsidiaries, and on
a consistent basis with IAS and, where applicable, in the manner applicable
under U.S. GAAP, (ii) comply as to form in all material respects with the
applicable requirements of IAS and, where applicable, in the manner applicable
under U.S. GAAP and (iii) make proper provision, in accordance with IAS and,
where applicable, in the manner applicable under U.S. GAAP, for all
liabilities, whether deferred or contingent. Since December 31, 2001, other
than as disclosed in the Offering Circular, there has been no change (nor any
development  or event involving a
prospective change of which the Company is, or might reasonably be expected to
be, aware) which is or would reasonably be expected to be materially adverse to
the condition (financial or other), prospects, results of operations or general
affairs of the Company or the Group, as the case may be;

 

11

 

(p)     Internal
Accounting Controls. The Company maintains a system of internal
accounting controls sufficient to provide reasonable assurances that (i)
transactions are executed in accordance with management’s general or specific authorization,
and (ii) transactions are recorded as necessary to permit preparation of
financial statements in conformity with IAS and to maintain accountability for
assets;

 

(q)     Ordinary
Course of Business. Neither the Company nor any of its subsidiaries
has sustained, since the date of the latest audited financial statements
included in the Offering Circular, any loss or interference with its business
from fire, explosion, flood or other calamity, whether or not covered by
insurance, or from any labor dispute or court or governmental action, order or
decree, otherwise than as set forth or contemplated in the Offering Circular;
and, since the respective dates as of which information is given in the
Offering Circular, there has not been any change in the share capital  (other
than pursuant to the grant or exercise of preemptive rights described in the
Offering Circular) of the Company or any of its subsidiaries, or any material
adverse change, or any development involving a prospective material adverse
change, in or affecting the general affairs, management, financial position,
shareholders’ equity or prospects or results of operations of the Company and
its subsidiaries taken as a whole, otherwise than as set forth or contemplated
in the Offering Circular; the Company and its subsidiaries are not in breach of
the terms of, or in default under, any instrument, agreement or order to which
it is a party or by which it or its property is bound, except where such loss,
interferance, change or breach would not have a Material Adverse Effect;

 

(r)      Properties. The
Company and its subsidiaries have good and legal title to all real property and
good and legal title to all such other personal property and assets owned by
them, in each case free and clear of all liens, encumbrances and defects except
such as are described in the Offering Circular or such as do not materially
affect the value of such property and do not interfere with the use made and
proposed to be made of such property by the Company and its subsidiaries; and
any real property and buildings held under lease by the Company and its
subsidiaries are held by them under valid, subsisting and enforceable leases
with such exceptions as are not material and do not interfere with the use made
and proposed to be made of such property and buildings by the Company and its
subsidiaries;

 

(s)     Legal
Proceedings. Other than as set forth in the Offering Circular, there
are no legal or governmental proceedings pending to which the Company or any of
its subsidiaries is a party or of which any property of the Company or any of
its subsidiaries is the subject which, if reasonably expected to be determined
adversely to the Company or any of its subsidiaries, would individually or in
the aggregate have a Material Adverse Effect, taken as a whole, and, to the
best of the Company’s knowledge, no such proceedings are threatened or
contemplated by any Governmental Agency or threatened by others; and the
Company and its subsidiaries have no continuing liabilities with respect to the
proceedings described under “Business - Litigation” in the Offering Circular
that have not been provisioned for; and neither it nor its subsidiaries is
involved in or the subject of any current or pending investigation or
proceedings (whether administrative, regulatory or otherwise) whether in
Switzerland or elsewhere, except where such investigation or proceedings would
not have a Material Adverse Effect;

 

12

 

(t)      Insurance
Matters. All material assets and material undertakings of the
Company and each of its subsidiaries of an insurable nature, including product
liability, are and have at all material times been adequately insured and the
Company and each of its subsidiaries are now and have at all material times
been adequately covered against accident, damage, injury, third party loss and
product liability in such amounts as are to the Company’s knowledge prudent and
customary in the business the Company and its subsidiaries are engaged; and
neither the Company nor any of its subsidiaries has any reason to believe that
it will not be able to renew its existing insurance coverage as and when such
coverage expires or to obtain similar coverage from similar insurance as may be
necessary to continue its businesses at a cost that would not have a Material
Adverse Effect;

 

(u)     Intellectual
Property. Other than as specifically described in the Offering
Circular, to the best of the Company’s knowledge, each of the Company and its
subsidiaries owns or possesses or can acquire on reasonable terms adequate
rights to use pursuant to license, sublicense, agreement or permission all
patents, patent applications, trademarks, service marks, trade names, design
rights, copyrights, trade secrets and other know-how rights, proprietary rights
and processes (in each case whether registered or unregistered and including
applications for registration) arising or subsisting anywhere in the world (“Intellectual
Property”) necessary for the operation of the business of the
Company and its subsidiaries as described in the Offering Circular. In respect
of Intellectual Property devised, developed or created by or on behalf of the
Company, which the Company desires to own, or which is used, or which the
Company expects to use, in the Company’s current or future business, or which
is necessary for the operation of the business of the Company and its
subsidiaries as described in the Offering Circular, the Company has taken all
steps necessary to secure assignments of or obtain adequate rights to use such
Intellectual Property from its employees and third party creators of that
Intellectual Property (including employees and contractors of such third party
creators, if any); to the best of the Company’s knowledge, none of the
technology or other Intellectual Property employed by or necessary for the
operation of the Company or any of its subsidiaries has been obtained or is
being used by the Company or any of its subsidiaries in violation of any law or
any contractual or fiduciary obligation binding upon the Company, any of its
subsidiaries or any of their respective directors or executive officers or any
of their respective employees or consultants, except where such violation would
not have a Material Adverse Effect. Except as specifically described in the
Offering Circular, to the best of the Company’s knowledge, neither the Company
nor any of its subsidiaries has interfered with, infringed upon,
misappropriated or violated any Intellectual Property of any third party and
the continued operation of the business of the Company and its subsidiaries as
described in the Offering Circular will not result in the same where any such
event or circumstance would have a Material Adverse Effect.  Except as specifically described in the
Offering Circular, to the best of the Company’s knowledge, the Company and its
subsidiaries have not received and do not expect to receive any charge,
complaint, claim, demand or notice alleging any such interference,
infringement, misappropriation or violation (including any claim that the
Company or any of its subsidiaries must take a license of or refrain from using
any Intellectual Property of any third party) that would have a Material
Adverse Effect, and there are no actions, suits or judicial proceedings pending
relating to Intellectual Property to which the Company or any of its
subsidiaries is subject, and no such actions, suits or judicial

 

13

 

proceedings are threatened by Governmental
Agencies or other third parties, and the Company is unaware of any facts which
would form a reasonable basis for any such claims. Except as specifically
described in the Offering Circular, to the best of the Company’s knowledge,
there is no patent or published patent application to which the Company does
not have rights which contains claims that dominate or may dominate any
Intellectual Property described in the Offering Circular as being owned by or
licensed to the Company or that interferes with the issued or pending claims of
any such Intellectual Property.  Except
as specifically described in the Offering Circular, to the best of the
Company’s knowledge, there is and has been no infringement, interference,
misappropriation or violation by any third parties of any Intellectual Property
owned by the Company or any of its subsidiaries that would have a Material
Advise Effect.  The Company and its
subsidiaries have taken and will maintain reasonable measures to prevent the
unauthorized use dissemination or publication of its trade secrets, proprietary
information and other confidential information;

 

(v)     Employment
Matters. No material labor dispute with the employees of the Company
or any of its subsidiaries exists or, to the knowledge of the Company, is
threatened;

 

(w)    Tax. Except
as otherwise disclosed in the Offering Circular (other than with respect to tax
on income, profits or gains from commissions, discounts or sales proceeds with
respect to the sale of Offered Shares or Restricted ADSs by any Underwriter
that is subject to income or gain tax in the ordinary course of business in
Switzerland), the Company and each of its subsidiaries has been and continues
to be in compliance with all applicable laws and regulations relating to tax,
except where its failure to be in such compliance would not have a Material
Adverse Effect; and the Company has no reason to believe that it or any of its
subsidiaries will incur any additional tax charges in respect of past tax
periods, except as disclosed in the Offering Circular; no stamp or other
issuance or transfer taxes or duties and no capital gains, withholding or other
taxes are payable by or on behalf of the Global Coordinator to Switzerland or
any political subdivision or taxing authority thereof or therein in connection
with (i) the sale and delivery by the Company of the Offered Shares or
Restricted ADSs to or for the account of the Global Coordinator, (ii)
commissions earned with respect to the sale of the Offered Shares or Restricted
ADSs or (iii) the sale and delivery by the Global Coordinator of the Offered
Shares or Restricted ADSs to the initial purchasers thereof, in each case in
accordance with the terms of this Agreement;

 

(x)     Investment
Company Act. The Company is not and, after giving effect to the
offering and sale of the Offered Shares, will not be an “investment company”
within the meaning of the U.S. Investment Company Act of 1940, as amended (the
“Investment
Company Act”);

 

(y)     Permits/Licenses/Authorizations.
Except as disclosed in the Offering Circular, the Company and each of its
subsidiaries have all licenses, franchises, permits, authorizations, approvals
and orders and other concessions of and from all Governmental Agencies that are
necessary to own or lease their properties and conduct their businesses as
described in the Offering Circular, except where such fault would not
reasonably be expected to have a Material Adverse Effect;

 

14

 

(z)     Substantial
U.S. Market Interest. There is no substantial U.S. market interest
(within the meaning of Regulation S under the Securities Act) in the ordinary
shares of the Company, and there is not, as of the date of this Agreement,
substantial U.S. market interest (within the meaning of Regulation S under the
Securities Act) in the Preemptive Rights;

 

(aa)   Foreign
Private Issuer. The Company is a “foreign private issuer” (as such
term is defined in the rules and regulations of the Exchange Act);

 

(bb)  Directed
Selling Efforts.  Neither the Company nor any person acting on its
or their behalf has offered or sold or will offer or sell the Preemptive Rights
or the Offered Shares by means of any directed selling efforts within the
meaning of Rule 903 under the Securities Act, and the Company has complied and
will comply with the offering restriction requirements of such Rule 903; provided,
however, that the Global Coordinator, acting through its Selling
Agents, may offer and deliver Preemptive Rights and may offer and sell Offered
Shares in the United States, provided that such Offered Shares may be sold only
in the form of Restricted ADSs to persons who the Global Coordinator reasonably
believes are “qualified institutional buyers” within the meaning of Rule 144A
under the Securities Act in transactions not subject to the registration
requirements of the Securities Act who provide to it and to the Company a
letter in the form of Exhibit A hereto and that, in connection with each such
sale, the Global Coordinator has taken or will take reasonable steps to ensure
that the purchaser of such Restricted ADSs is aware that such sale is being
made in a transaction not subject to registration under the Securities Act; and

 

(cc)   General
Solicitation and General Advertising. Neither the Company nor any
person acting on its behalf has offered or sold or will offer or sell the
Preemptive Rights or the Offered Shares by any form of general solicitation or
general advertising, including but not limited to the methods described in Rule
502(c) under the Securities Act.

 

6.              Undertakings
of the Company

 

6.1                                Taxes. The Company will pay
any stamp or other issuance or transfer taxes, capital gains, withholding or
other taxes (other than tax on income, profits or gains from commissions,
discounts or sales proceeds with respect to the sale of Offered Shares or
Restricted ADSs by any Underwriter that is subject to income or gain tax in the
ordinary course of business in Switzerland) payable to Switzerland or any
political subdivision or taxing authority thereof or therein in connection with
(i) the sale and delivery by the Company of the Offered Shares or Restricted
ADSs to or for the account of the Global Coordinator, (ii) commissions earned
with respect to the sale of the Offered Shares or Restricted ADSs or (iii) the
sale and delivery by the Global Coordinator of the Offered Shares or Restricted
ADSs to the initial purchasers thereof, in each case in accordance with the
terms of this Agreement.

 

6.2                                Delivery of Offering Circular. The
Company confirms that it has prepared the Offering Circular and authorizes the
Global Coordinator to distribute copies of the Offering Circular in connection
with the Offering and undertakes to deliver to the

 

15

 

Underwriters, without charge, on the Business Day (whereby “Business Day”
shall mean any day (other than a Saturday or Sunday) on which banks are open
for business in Zurich) following the date hereof and hereafter from time to
time as requested, such number of copies of the Offering Circular as the
Underwriters may reasonably request.

 

6.3                                Amendments to the Offering Circular.
If at any time prior to completion of the distribution of the Offered Shares or
the Settlement Date any event shall have occurred as a result of which the
Offering Circular, as then amended or supplemented, would include an untrue statement
of a material fact or omit to state any material fact necessary to make the
statements therein, in the light of the circumstances under which they are made
when such Offering Circular is delivered, not misleading in a material respect
or if for any other reason it shall be necessary to amend or supplement the
Offering Circular, the Company will notify the Underwriters, and, upon request
from the Global Coordinator, will prepare and furnish without charge to the
Underwriters as many copies as the Global Coordinator may from time to time
reasonably request of an amended Offering Circular or a supplement to the
Offering Circular which will correct such statement or omission, and will take
such steps as may be reasonably requested by the Global Coordinator to remedy
and/or publicize such amendment or supplement to the Offering Circular.

 

6.4                                Notification of Material Changes.
The Company will notify the Underwriters promptly of any material change
affecting any of its representations and warranties (including, but not limited
to, any considered, intended or actual Tender Offer it becomes aware of),
agreements and indemnities herein at any time prior to payment being made to
the Company on the Settlement Date.

 

6.5                                Listing on the SWX. In
connection with the application to list the Offered Shares on the SWX and to
admit the Preemptive Rights to trading at the SWX, the Company will furnish
from time to time any and all documents, instruments, information and
undertakings, publish all advertisements or other material that may be
necessary in order to effect such listing and admittance and maintain such
listing and admittance and take all other such actions as may be required by
the Swiss Admission Board in order to comply with the requirements of the SWX
Listing Rules.

 

6.6                                Provisions of Documents to the
Underwriters. For a period of 
two years from the Settlement Date, the Company will furnish to the
Underwriters copies of each document filed on a public basis by the Company
with the SWX including any notices under the ad-hoc publicity rules of the SWX,
and copies of financial statements and other periodic reports that the Company
may furnish generally to its shareholders.

 

6.7                                Coordination of Announcements.
Between the date hereof and the Settlement Date (both dates inclusive), the
Company will, and will cause its subsidiaries and all other parties acting on
its behalf so far as practical, with regard to applicable laws and regulations
and the requirements of the SWX, to notify and consult with the Global Coordinator
prior to issuing any public announcement concerning, or which is likely to be
material in the context of the offering and distribution of the Offered Shares
taken as a whole.

 

16

 

6.8                                Use of Proceeds. The Company
will use the net proceeds of the issue and sale of the Offered Shares to
finance part of its obligations under the Settlement Agreement (as defined in
the Offering Circular) and otherwise in respect of the Implant Litigation (as
defined in the Offering Circular).

 

6.9                                Clear Market. The Company
will not for a period of 180 calendar days after the Settlement Date, (i)
issue, or announce the intent to issue, any shares or securities convertible or
exchangeable into shares or representing rights to subscribe for shares, or
enter into transactions with a similar economic effect, and it will not (ii)
create, or announce the intent to create, any authorized capital or new
conditional capital, except as required under mandatory Swiss law or in
relation to conditional capital for shares to be issued upon exercise of
options granted to employees according to stock option plans described in the
Offering Circular, or in connection with the CCI (as defined in the Offering
Circular), without the prior written consent of the Global Coordinator.

 

6.10                          Issuance of the CCI. If the
Offering is completed and the Company has received funds in the amount of USD
635 million (subject to adjustment pursuant to the terms of a commitment from
UBS AG or pursuant to a credit agreement reflecting such commitment) under a
credit facility then the Company undertakes not to issue the CCI, in whole or
in part.

 

6.11                          Restricted ADS Election.
Prior to the end of the Exercise Period, the Company undertakes to enter into
the Restricted Deposit Agreement, which agreement shall provide that the Global
Coordinator may, from time to time, deposit any or all of its Offered Shares
with the Depositary in exchange for an equivalent amount of Restricted
ADSs.  Such Restricted ADSs will be in
physical, definitive form, and in such authorized denominations and registered
in such names as the Global Coordinator requests.  The Company undertakes to comply with the Restricted Deposit
Agreement so that Restricted ADRs evidencing Restricted ADSs will be executed
(and, if applicable, countersigned) and issued by the Depositary against the
receipt of Offered Shares from time to time by the Depositary.

 

6.12                          Stabilization and Manipulation. The
Company will not ( and will cause its subsidiaries not to) take, directly or
indirectly, any action which is designed to or which has constituted or which
would reasonably be expected to cause or result in stabilization or
manipulation or of the price of any security of the Company to facilitate the
sale or resale of the Offered Shares other than in accordance with applicable
law, including Regulation M under the Exchange Act.

 

7.              Representations,
Warranties and Undertakings of InCentive and the Global Coordinator

 

7.1                                 Each
of InCentive and the Global Coordinator, severally and not jointly,
acknowledges that no action has been or will be taken in any jurisdiction by
the Company that would permit a public offering of the Offered Shares, or
possession or distribution of the Offering Circular or any other offering or
publicity material relating to the Offered Shares, in any country or
jurisdiction where action for that purpose is required (including the United
States, the United Kingdom, Canada, Japan, the Netherlands, Australia and South
Africa) other than Switzerland, and each of

 

17

 

InCentive and
the Global Coordinator will comply with all applicable laws and regulations in
each jurisdiction in which it acquires, offers, sells or delivers Preemptive
Rights or Offered Shares or has in its possession or distributes the Offering
Circular or any such other material.  

 

7.2                                 Each
of InCentive and the Global Coordinator, severally and not jointly, represents
and warrants to, and agrees with, the Company, that it will not offer or sell
the Preemptive Rights or the Offered Shares except in accordance with
Regulation S under the Securities Act and that, in connection therewith, (i) it
will not offer or sell the Preemptive Rights or the Offered Shares by any form
of directed selling efforts within the meaning of Regulation S under the
Securities Act, and (ii) it will not offer or sell the Preemptive Rights or the
Offered Shares by any form of general solicitation or general advertising,
including but not limited to the methods described in Rule 502(c) under the
Securities Act.

 

Nothwithstanding
the foregoing, the Global Coordinator may offer and deliver the Preemptive
Rights, and to the extent it so offers and sells, represents that and agrees
with the Company that, it will only offer and sell the Offered Shares in the
United States so long as such Offered Shares are sold only in the form of
Restricted ADSs to persons who it reasonably believes are “qualified
institutional buyers” within the meaning of Rule 144A under the Securities Act
in transactions not subject to the registration requirements of the Securities
Act who provide to it and to the Company a letter in the form of Exhibit A
hereto and that, in connection with each such sale, it has taken or will take
reasonable steps to ensure that the purchaser of such Restricted ADSs is aware
that such sale is being made in a transaction not subject to registration under
the Securities Act.

 

7.3                                 Each
of InCentive and the Global Coordinator, severally and not jointly, represents
and warrants to, and agrees with, the Company, that it:  (i) it will not offer or sell and, prior to
the expiry of a period of six months from the Settlement Date, will not offer
or sell any Offered Shares to persons in the United Kingdom except to persons
whose ordinary activities involve them in acquiring, holding, managing or
disposing of investments (as principal or agent) for the purposes of their
businesses or otherwise in circumstances which have not resulted and will not
result in an offer to the public in the United Kingdom within the meaning of
the Public Offers of Securities Regulations 1995; (ii) it has only communicated
and caused to be communicated and will only communicate or cause to be
communicated any invitation or inducement to engage in investment activity
(within the meaning of section 21 of the Financial Services and Markets Act
2000 (“FSMA”)) received by it in connection with the issue or sale of any
Preemptive Rights or Offered Shares in circumstances in which section 21(1) of
the FSMA does not apply to the Company; and (iii) it has complied and will
comply with all applicable provisions of the FSMA with respect to anything done
by it in relation to the Preemptive Rights or Offered Shares in, from or
otherwise involving the United Kingdom.  

 

7.4                                 Each
of InCentive and the Global Coordinator, severally and not jointly, represents
and warrants to, and agrees with, the Company, that it will only offer, sell,
deliver or transfer, directly or indirectly, Preemptive Rights or Offered
Shares in the Netherlands to individuals who, or legal entities which, trade or
invest in securities in the conduct of a profession or trade (including banks,
investment banks, securities

 

18

 

firms,
insurance companies, pension funds, other institutional investors, and treasury
deparments and finance companies of large enterprises.

 

7.5                                 Each
of InCentive and the Global Coordinator agrees with the Company that any
stabilization activities engaged in relating to the offer and sale of Offered
Shares shall be performed in accordance with all applicable laws and
regulations.  

 

8.              Undertakings
of InCentive

 

8.1.

 

(a)               Coordination of Announcements. Between the
date hereof and the Settlement Date (both dates inclusive), InCentive will, and
will cause its subsidiaries and all other parties acting on its behalf so far
as practical, with regard to applicable laws and regulations and the
requirements of the SWX, to notify and consult with the Global Coordinator
prior to issuing any public announcement concerning, or which is likely to be
material in the context of, the offering and distribution of the Offered Shares
taken as a whole.

 

(b)              No Trading of Preemptive Rights with respect to
InCentive Shares. InCentive shall not sell its Preemptive Rights
with respect to InCentive Shares during the Exercise Period.

 

9.              Agreement
Among Underwriters

 

9.1                                Lead Underwriter. The Global
Coordinator is hereby authorized on behalf of the Underwriters to conduct the
negotiation of, and to enter into, any agreements related to this Agreement,
and to agree any variation in the terms of performance of this Agreement that,
in its reasonable judgment, will not have a material adverse effect on the
interest of the of the Underwriters.

 

9.2                                Costs. Each Underwriter
shall bear its own costs and expenses incurred in connection with the Offering,
except as provided for in Section 10 below.

 

9.3                                Representations and Warranties.
Each of InCentive and the Global Coordinator hereby gives to each other the
same representations and warranties given by the Underwriters to the Company as
set forth in Section 7.

 

10.        Commission
/ Fees and Expenses

 

10.1                          Commissions of Global Coordinator.
In consideration of the obligations undertaken herein by the Global Coordinator
the Company covenants and agrees with the Global Coordinator to pay, in
addition to its other obligations hereunder, the following commissions (the “Commissions”):

 

19

 

(a)               a base commission of 1.45% on the
aggregate Offer Price for all Offered Shares (number of Offered Shares times
Offer Price) for the managing, structuring and exercising the Offering;

 

(b)              an underwriting commission of 1.25% on
the Global Coordinator’s underwriting commitment of CHF 55’137’120 (= CHF
689’214);

 

(c)               an incentive commission of 0.75% on the
aggregate Offer Price for all Offered Shares (number of Offered Shares times
Offer Price) at the sole discretion of the Company; and

 

(d)              a reimbursement commission of 0.25% on
the aggregate Offer Price for all Offered Shares (number of Offered Shares
times Offer Price) for banking system costs.

 

The Global Coordinator is authorized to set off the total amount of the
Commissions (including those payable to InCentive) established at that time
from the Company’s net proceeds and invoice the remaining amounts to the
Company at a later time.

 

10.2                          Commission of InCentive. In
consideration of the obligations undertaken herein by InCentive the Company
covenants and agrees with InCentive to pay, in addition to its other obligations
hereunder, an  underwriting commission
of 1.25% on InCentive’s underwriting commitment of CHF 200’000’000 (= CHF
2’500’000).

 

10.3                          Fees and Expenses. The
Company covenants and agrees with the Global Coordinator to pay, in addition to
its other obligations hereunder, the following:

 

(a)               all expenses in connection with the
preparation, printing and filing of the Offering Circular, listing publications
and any amendments and supplements thereto and the mailing and delivering of
copies thereof to the Underwriters;

 

(b)              the costs and expenses of the Global
Coordinator in connection with the preparation of materials for “road show”
presentations to be made to existing shareholders and prospective investors
(including, without limitation, costs for one accompanying banker and one sales
representative of the Global Coordinator);

 

(c)               such expenses and listing fees as
required in connection with the listing of the Offered Shares on the SWX and
the admittance of the Preemptive Rights to trading at the SWX;

 

(d)              the documented out-of-pocket expenses
reasonably incurred by the Global Coordinator in connection with the
transaction contemplated by this Agreement;

 

(e)               the fees and disbursements of the
international legal counsel up to USD 700,000 (including advice in
connection with the Credit Facility, but not including advice and fees for
security arrangements in connection with such Credit Facility, which, to the
extent such advice and fees result in USD 700,000 being exceeded, shall be
paid by the Company upon being provided with appropriate documentation thereof)
and Swiss legal counsel up to USD 100,000 of the Global Coordinator in

 

20

 

connection with the Offering, the Credit Facility and the security
arrangements thereunder;

 

(f)                 the fees and expenses of its own
outside legal counsel, including without limitation patent counsel to the
Company, financial and other advisors in connection with the transactions
contemplated herein;

 

(g)              the fees and expenses of the Company’s
independent accountants for services rendered in connection with the
transactions contemplated hereby;

 

(h)              costs and expenses in connection with the
statement and/or recommendation to be obtained by the relevant takeover
authorities; and

 

(i)                  all other costs and expenses incident
to the performance of its obligations hereunder.

 

Such fees and
expenses shall be payable upon request of the Global Coordinator as invoiced in
accordance with the Mandate Agreement. The Global Coordinator is authorized to
set off the total amount of such fees and expenses established at that time
from the Company’s net proceeds (provided that it has agreed in writing with
the Company in advance the amount of such set offs) and the fees payable to
InCentive pursuant to Section 10.4 and invoice the remaining amounts to the
Company at a later time.

 

All payments
by the Company under this Agreement will be made without set-off or
counterclaim, and free and clear of and without deduction or withholding for or
on account of, any present or future taxes, levies, imposts, duties, fees,
assessments or other charges of whatever nature. If any such deduction or
withholding is required by law in any jurisdiction to be made in connection
with any such payment, the Company will increase the amount paid so that the
full amount of such payment is received by the payee as if no such deduction or
withholding had been made.

 

10.4                          Fees and Expenses of InCentive.
The Company covenants and agrees with InCentive to pay, in addition to its other
obligations hereunder, CHF 250,000 for fees and expenses of InCentive incurred
in connection with the transactions contemplated herein.

 

11.                                 Indemnification

 

11.1                          The Company (the “Indemnifying
Party”) undertakes with each of InCentive and  the Global Coordinator (for itself, its
affiliated companies and on behalf of its employees, directors, officers, and
such U.S. persons (if any) who control such Global Coordinator for the purposes
of Section 15 of the Securities Act or Section 20 of the Exchange Act) (each an
“Indemnified
Party”) that it will indemnify and hold harmless each Indemnified
Party from and against any and all 
losses, liabilities, costs, claims, damages, expenses or demands
(including but not limited to, legal costs and expenses) (a “Loss”),
joint or several, which that Indemnified Party may incur or which may be made
against that Indemnified Party arising out of or in relation to or in
connection with any  breach or alleged  breach of the representations and warranties
of the Company set out in this Agreement or any untrue statement or alleged
untrue

 

21

 

statement of a material fact contained in the Offering Circular, or
caused by any omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading and will reimburse each Indemnified Party on demand an amount equal
to such Loss; provided, however, that with respect to both the Global
Coordinator and InCentive this indemnity agreement shall not apply to any loss,
liability, claim, damage or expense to the extent arising out of any untrue
statement or omission or alleged untrue statement or omission made in reliance
upon and in conformity with written information regarding the Global
Coordinator or InCentive in its capacity as Underwriter furnished to the
Company by the Global Coordinator expressly for use in the Offering Circular
(or any amendment thereto); provided, further, however, that with respect to
InCentive this indemnity agreement shall not apply to any loss, liability,
claim, damage or expense to the extent arising out of any untrue statement or
omission or alleged untrue statement or omission made in reliance upon and in
conformity with written information regarding InCentive furnished to the
Company by InCentive expressly for use in the Offering Circular (or any
amendment thereto) . The amount paid or payable to an Indemnified Party as a
result of a Loss shall include any legal or other expenses incurred by such
Indemnified Party in connection with investigating or defending such claim.
This indemnity will be in addition to any liability which the Company may
otherwise have.

 

Notwithstanding the foregoing, each of InCentive and the Global
Coordinator agrees, severally and not jointly, that it will indemnify and hold
harmless the Company, its employees, directors, and officers to the same extent
as the Company will indemnify and hold harmless the Global Coordinator or
InCentive as set out in this Section 11, but only with reference to the
information furnished to the Company by each of  the Global Coordinator or InCentive, respectively, for use in the
Offering Circular.

 

11.2                          If any action, claim or
demand shall be brought or asserted against any Indemnified Party hereunder,
and with respect to which indemnity may be sought hereunder, such Indemnified
Party shall promptly notify the Indemnifying Party in writing and the
Indemnifying Party shall assume the defence thereof, including the employment
of legal advisers reasonably satisfactory to such Indemnified Party and payment
of all  fees and expenses. Any
Indemnified Party shall have the right to employ separate legal advisers in any
such action and participate in the defence thereof, but the fees and expenses
of such legal advisers shall be at the expense of such Indemnified Party unless
(i) the employment of such legal advisers shall have been specifically
authorized in writing by the Indemnifying Party, (ii) the Indemnifying Party
shall have failed to assume the defence and employ legal advisers or (iii) the
named persons to any such action include both such Indemnified Party and the
Indemnifying Party and such Indemnified Party shall have been advised that
there may be one or more legal defences available to it which are different
from or additional to those available to the Indemnifying Party (in which case
the Indemnifying Party shall not have the right to assume the defence on behalf
of such Indemnified Party). It being understood, however, that the Indemnifying
Party shall not, in connection with any one such action or separate but
substantially similar or related actions in the same jurisdiction arising out
of the same general allegations or circumstances, be liable for the fees and
expenses of more than one separate firm of legal advisers

 

22

 

for all
Indemnified Parties (in addition to any local counsel), and that all such  fees 
and expenses shall be reimbursed 
when they are incurred. In the case of any separate firm of legal
advisers for the Indemnified Parties, such firm of legal advisers shall be
designated by such Indemnified Party. The Indemnifying Party shall not be
liable for any settlement of any such action effected without its written
consent but, if settled with the written consent of the Indemnifying Party, the
Indemnifying Party agrees to indemnify and hold harmless the Indemnified Party
from and against any loss or liability by reason of such settlement. No
Indemnifying Party shall, without the prior written consent of the Indemnified
Party, effect any settlement of any pending or threatened proceeding in respect
of which any Indemnified Party is or could have been a party and indemnity
could have been sought hereunder by such Indemnified Party, unless such
settlement included an unconditional release of such Indemnified Party from all
liability on claims that are the subject of such proceeding.

 

12.        Conditions
Precedent

 

The obligation of the Global Coordinator and of InCentive to subscribe,
underwrite and to pay for the Offered Shares is subject to the following
conditions precedent:

 

12.1                          Offering Circular. Upon the
signing of this Agreement two copies of the Offering Circular shall have been
delivered to the Global Coordinator and InCentive, duly signed by the Company.

 

12.2                          Comfort Letter. Immediately
preceding the signing of this Agreement, on the Capital Increase Date and on
the Settlement Date, there shall have been delivered to the Global Coordinator
and InCentive letters, dated the date of this Agreement (or the date of the
Offering Circulars), the Capital Increase Date and the Settlement Date,
respectively, from PricewaterhouseCoopers AG, auditors to the Company,
substantially in the forms set forth in Schedule 12.2.

 

12.3                          Officers’ Certificates. On
and dated the date of this Agreement, the Capital Increase Date and the
Settlement Date, there shall have been delivered to the Global Coordinator and
InCentive an officer’s certificate of the Company in the form of Schedule
12.3, executed by two duly authorized officers of the Company, signed on
behalf of the Company.

 

12.4                          Legal Opinions and Other Documents.
On and dated the date of this Agreement (or the date of the Offering Circular),
the Capital Increase Date and the Settlement Date, there shall have been
delivered to the Global Coordinator and InCentive, each in the agreed form as
attached in the Schedules 12.4 (a-f) hereto (provided that (d) and (e)
are to be delivered only on the Settlement Date):

 

(a)   a disclosure letter and a legal opinion from
Bär & Karrer, Swiss legal counsel to the Company;

 

(b)   a legal opinion from Lenz & Staehelin,
Swiss legal counsel to the Global Coordinator;

 

(c)   a 10b-5 letter from Cleary Gottlieb, U.S.
legal counsel to the Global Coordinator;

 

23

 

(d)         a
legal opinion from Cleary Gottlieb, U.S. legal counsel to the Global
Coordinator, regarding the exemption from registration under the Securities Act
of the Offered Shares;

 

(e)          a
legal opinion from Weil Gotshal & Manges, U.S. legal counsel to the
Company, regarding, among other things, (i) the exemption from registration
under the Securities Act of the Offered Shares, (ii) the statements contained
in the Offering Circular under the caption “Taxation—United States Federal
Income Tax Considerations”, insofar as they purport to describe U.S. federal
statutes, rules and regulations, and subject to the limitations set forth
therein, constitute a fair summary thereof, (iii) the legally valid, binding
and enforceable status of the Restricted Deposit Agreement and (iv)
“Description of Restricted American Depositary Receipts” sections of the
Offering Circular;

 

(f)            a
disclosure letter from Shook, Hardy & Bacon LLP, U.S. legal counsel to the
Company; and

 

(g)         such
other resolutions, consents authorities and documents relating to the offer and
sale of the Offered Shares, as the Global Coordinator, on behalf of the
Underwriters, may reasonably require.

 

12.5                          No Material Adverse Change.
At the Capital Increase Date and the Settlement Date, there shall not have
occurred any change, or any development or event involving a prospective
change, in the business, condition (financial or other), properties, prospects
or results of the operations of the Company and its subsidiaries, taken as a
whole, from that set forth in the Offering Circular, whether or not arising in
the ordinary course of business, which, in the sole discretion of the Global
Coordinator (after consultation, if practicable, with InCentive and the
Company), is material and adverse and which makes it, in the sole discretion of
the Global Coordinator (after consultation, if practicable, with InCentive and
the Company), impracticable to or inadvisable to subscribe for and underwrite
the Offered Shares on the terms and in the manner contemplated in the Offering
Circular.

 

12.6                          SWX Listing. The listing of
the Offered Shares on the SWX and the admittance of the Preemptive Rights to
trading at the SWX shall have been granted.

 

12.7                          Termination of this Agreement.
If any of the conditions set forth in this Section 12 is not satisfied on or
prior to the Settlement Date, then the Global Coordinator shall have the right
to terminate this Agreement in accordance with Section 13 and 14. The Global
Coordinator, on behalf of the Underwriters, may at its discretion, however,
waive compliance with the whole or any part of this Section.

 

13.        Termination

 

13.1                          Notwithstanding anything
contained herein, the Global Coordinator, on behalf of the Underwriters, may,
by notice to the Company, terminate this Agreement at any time on or prior to
the Settlement Date in any of the following circumstances:

 

24

 

(a)               if there shall have come to the notice
of the Underwriters any breach of, or any event rendering untrue or incorrect
in any  respect, any of the warranties
and representations contained in Section 5 or any  failure to perform any of the Company’s undertakings or agreements
in this Agreement;

 

(b)              if any of the conditions precedent
specified in Section 12 has not been satisfied or waived by the Global
Coordinator; or

 

(c)               if, (A) (i) trading generally shall have
been suspended or materially limited on or by the SWX, (ii) the relevant
authorities shall have declared a general moratorium on commercial banking
activities in Switzerland, the United Kingdom or the United Sates, (iii) there
shall have occurred a general crisis in international exchange markets or (iv)
there shall have occurred any  outbreak
or  escalation of hostilities or
any  act of terrorism involving the
United States, the United Kingdom or Switzerland or the declaration by the
United States, the United Kingdom or Switzerland of a national emergency or war
or any change in financial markets or any calamity or crisis or any change or
development involving a prospective change in national or international
financial, political or economic conditions or currency exchange rates or
exchange controls that, in the Global Coordinator’s judgment (after
consultation, if practicable, with InCentive and the Company), is material and
adverse or a material disruption has occurred in commercial banking or
securities settlement or clearance services in the United States, the United
Kingdom or Switzerland and (B) in the case of any of the events specified in
this Section 13.1(c)(A)(i) through (iv) such event, singly or together with any
other such event, makes it, in the Global Coordinator’s sole judgment,
impracticable or inadvisable to subscribe for and underwrite the Offered Shares
on the terms and in the manner contemplated in the Offering Circular.

 

13.2                          Survival. Upon such notice
being given on or prior to the Settlement Date, this Agreement shall terminate
and be of no further effect and no party shall be under any liability to any
other in respect of this Agreement, except for obligations and liabilities
already incurred or accrued, and except that the Company shall remain liable as
provided under Sections 10, 11 and 14(i) provided, however, that the Global
Coordinator shall use its reasonable best efforts to transfer to a bank or
other financial intermediary the administrative functions it is carrying out in
connection with the execution of the transactions contemplated hereby.

 

14.        Effects
of Termination on Offered Shares

 

14.1                          Event of Non-Completion. If
there is a termination of this Agreement prior to the Settlement Date pursuant
to Section 12.7 or 13 or if the delivery of the Offered Shares to the Global
Coordinator is not completed on the Settlement Date or if the Offering
contemplated herein is not consummated for any other reason (each an “Event of
Non-Completion”) and the Capital Increase has occurred and been
registered, then, unless the Company and the Global Coordinator otherwise agree
in writing within ten calendar days after the Event on Non-Completion, the
following shall apply:

 

25

 

(a)               The Company and InCentive shall cause to
be held a shareholders’ meeting of the Company in which the shareholders of the
Company shall resolve on a reduction of the registered issued share capital of
the Company from CHF 354’919’350 to CHF 300’247’110 (the “Capital Reduction”) by
cancellation of the Offered Shares against repayment of the Total Nominal
Amount of the Offered Shares to the Underwriters. Prior to such shareholders’
meeting, the auditors of the Company shall confirm in writing, pursuant to
Article 732 para. 2 of the Swiss Code of Obligations, that the claims of the
Company’s creditors are covered notwithstanding the Capital Reduction. The Capital
Reduction shall be effected in accordance with the provisions of Swiss
statutory law, in particular Articles 732 ff. of the Swiss Code of Obligations
and shall be consummated at the earliest date possible by entry in the
Commercial Register. The proceeds of the Capital Reduction, being CHF
54’672’240 (such amount representing the aggregate par value of the Offered
Shares) shall be in the form of a cash payment to be made to the Underwriters
having subscribed for such Offered Shares as set forth in Section 1.2.

 

(b)              If (i) the Capital Reduction is not
resolved within 40 business days after the Global Coordinator’s request, or
(ii) the auditors of the Company have not provided the confirmation referred to
in Section 14.1(a) prior to such shareholders’ meeting, or (iii) the Capital
Reduction has not been recorded in the Commercial Register within 120 calendar
days after the Global Coordinator having requested the Capital Reduction, or
(iv) the Underwriters have not received the proceeds of the Capital Reduction
within 120 calendar days after having requested the Capital Reduction and
further provided the Company has not exercised its Call Option pursuant to
Section 14.1(c) below and paid to the Underwriters the Total Nominal Amount
plus costs and expenses as set out in Section 14.1(d)(ii), then the Global
Coordinator and InCentive shall have the right, but no obligation, and always
provided that the Capital Reduction has not yet occurred, to sell at their own
discretion all or any number of the Offered Shares subscribed by them to a
third party. If the aggregate proceeds of such sale exceed the Total Nominal
Amount plus costs and expenses as set out in Section 14.1(d)(ii) (the “Surplus”),
the Company shall be entitled to receive the Surplus.

 

(c)               Call Option. Before the occurrence of an
event described in subsection (i) through (iv) of Section 14.1(b) and further
provided that the Capital Reduction has not yet occurred and the Underwriters
have not yet received the proceeds of such Capital Reduction, the Company shall
have the right (the “Call Option”) to request in writing that
the Global Coordinator and InCentive deliver the Offered Shares to an account
specified by the Company against payment of a total of CHF 54’672’240 plus
expenses as set out in Section 14.1(d)(ii).

 

(d)              Costs and Expenses. The Company shall
bear:

 

(i)             all costs incidental to the Capital
Reduction, including but not limited to notarization costs, costs of the
Commercial Register and costs of publication of the Capital Reduction;

 

(ii)          the costs of the Global Coordinator and
InCentive incurred in connection with the Capital Reduction respectively the
Call Option (including, but not

 

26

 

limited, to (I) taxes, (II) default interest at the statutory rate of
5%, calculated on a 30/360 basis from the date of the Event of Non-Completion
until the date of payment of proceeds to the Underwriters, and (III) reasonable
out-of-pocket expenses of the Underwriters and their respective counsels).

 

(e)               If an Event of Non-Completion occurs
after the registration of the Capital Increase and before the Settlement Date,
the Global Coordinator, having paid the Total Nominal Amount of all the Offered
Shares in accordance with Section 1.3(a), shall debit InCentive’s cash account
no. 230-P0448910.0 (at UBS AG, Zurich, bank clearing no. 230) in the amount of
the nominal value of each Offered Share subscribed for by InCentive and deliver
in return the respective number of Offered Shares into InCentive’s share
deposit no. 230-P0448910.0 (at UBS AG, Zurich, bank clearing no. 230).

 

The Company further undertakes to indemnify the Global Coordinator and
InCentive for, and to hold the Global Coordinator and InCentive harmless from,
any costs, expenses, third party claims and liabilities, actual or contingent,
that may be incurred by or made against the Global Coordinator, InCentive or
any third party in connection with the Capital Reduction.

 

14.2                          If an Event of Non-Completion
occurs after the Global Coordinator having deposited the Total Nominal Amount
but before registration of the Capital Increase, the Company shall procure that
the Total Nominal Amount plus accrued interest, if any, on such amount, while
deposited with ZKB is refunded to the Global Coordinator upon first demand as
soon as possible.

 

15.         Notices

 

Any notice or
communication under or in connection with this Agreement shall be in writing
and shall be delivered personally or sent by mail or facsimile transmission:

 

to the Company
at:

 

Centerpulse
Ltd.

Andreasstrasse
15

CH-8050 Zürich

 

Attn.:                Christian
Stambach/Marcel Bauckhage

Facsimile:         +41
1 306 96 97

 

 

to InCentive at:

 

InCentive
Capital AG

c/o InCentive
Asset Management AG

Tödistrasse 36

CH-8002 Zürich

 

27

 

Attn.:                      René
Braginsky / Thomas Wyler

Facsimile:               +41 1 205
93 05

 

to the Global
Coordinator at:

 

UBS Warburg

Europastrasse
1

CH-8152
Ofpikon

 

Attn.:                      CFCM
Legal

Facsimile:               +41 1 239
48 09

 

16.         Changes and Amendments to
This Agreement

 

Changes and
amendments to this Agreement, including this Section 16 will only be valid if
made in writing and signed by each of the Company, InCentive and the Global
Coordinator.

 

17.         Applicable Law and
Jurisdiction

 

17.1                          Applicable Law. This
Agreement shall be governed by and construed in accordance with the laws of
Switzerland.

 

17.2                          Jurisdiction. Each of the
Company, InCentive and the Global Coordinator hereby agrees to the venue of
Zurich 1 and irrevocably submits to the non-exclusive jurisdiction of the
Commercial Court of the Canton of Zurich (Handelsgericht Zürich), with reserve of
appeals to the Swiss Federal Supreme Court (Schweizerisches Bundesgericht) to settle
any disputes which may arise out of or in connection with this Agreement or the
transactions contemplated thereby. Irrespective of the foregoing, the
Underwriters shall have the right to initiate legal proceedings against the
Company before any other court in which any suit, action or other proceedings
of any type whatsoever has been brought against any of the Underwriters.

 

28

 

So Agreed as of September 27,
2002:

 

 

The Company:

 

Centerpulse Ltd.

 

 

	
  By:

  	
   /s/ Marcel Bauckhage

  	
   

  	
  By:

  	
   /s/ Christian Stambach

  	
   

  
	
  Name: Marcel
  Bauckhage

  	
  Name:
  Christian Stambach

  
	
  Title    Head Corporate Treasury

  	
  Title:   VP. Head Legal & Compliance

  

 

 

InCentive:

 

InCentive Capital AG

 

 

	
   

  	
   

  	
   

  	
   

  	
  By Proxy

  	
   

  
	
  By:

  	
   /s/ Thomas Wyler

  	
   

  	
  By:

  	
   /s/ Romeo Cerutti

  	
   

  
	
  Name: Thomas
  Wyler

  	
  Name: Romeo
  Cerutti

  
	
  Title

  	
  Title:

  

 

 

The Global Coordinator:

 

UBS AG acting through
its business group UBS Warburg

 

 

	
  By:

  	
   /s/ [Illegible]

  	
   

  	
  By:

  	
   /s/ David M. [Illegible]

  	
   

  
	
  Name:
  [Illegible]

  	
  Name: David
  M. [Illegible]

  
	
  Title

  	
  Title:

  

 

29

 

EXHIBIT A

 

Form of Investor
Letter

 

[Form of Exercising US QIB Investor Letter]

 

[Letterhead of eligible US Investor]

 

[Date]

 

Centerpulse Ltd.

Andreasstrasse 15

8050 Zurich

Switzerland

 

Attention: Dr. Christian
Stambach

Facsimile No.: +41 / 1 / 306 96
97

 

UBS Warburg LLC, Stamford

 

Attention:  Dennis Kelly

Fax: +1 203 719 8303

 

Please also fax copies:

 

UBS AG

8098 Zurich

Switzerland

 

Attention: Florence Andermatt,
ONJ7/OP8E – Emissionen Schweiz

Facsimile No.: +41 / 1 / 235 23
44

 

To whom it may concern

 

Re:  Purchase
of                  shares,
nominal value of CHF 30 each (“Shares”), of Centerpulse Ltd in the form of
restricted American depositary shares  (“Restricted ADSs”) pursuant to the
exercise
of                  preemptive
rights

 

30

 

 

Dear Sirs,

 

In connection
with our purchase of
            Shares
pursuant to the exercise of
            pre-emptive
rights, we hereby represent, agree and acknowledge as follows:

 

1.             We are the beneficial owner of the
pre-emptive rights that we are exercising and acknowledge that the Shares
issuable upon exercise will be issued in the form of Restricted ADSs and will
remain in the form of restricted ADSs for so long as the securities are
“restricted securities” under Rule 144 of the Securities Act of 1933 as amended
(the “Securities Act”).  Accordingly, we
hereby instruct that such Shares be transferred to Citibank N.A. — Zurich
Branch as custodian for Citibank, N.A., depositary for the Restricted ADS
facility.  The Restricted ADSs to which
we are we entitled should be issued and delivered as follows:

 

Registration
Name:

 

Address:

 

Physical ADSs
to be delivered by Citibank, N.A. to:

 

 

Name of
Custodian Bank:

Address:

Contact Name:

Tel. No.:

Tax ID number:

 

2.             We hereby authorize and therefore
expressly release from Swiss banking secrecy any Depotbank, nominee,
custodian or other financial intermediary through which we hold our Shares to
provide the Company and UBS AG with a copy of this letter and such information
regarding our identity and holding of Shares (including pertinent account
information and details of our identity and contact information) as is
necessary or appropriate to facilitate our exercise of our preemptive rights.

 

3.             We understand that the Restricted
ADSs and the restricted shares represented hereby are not being and will not be
registered under the Securities Act, are being offered and sold to us in a
transaction that is exempt from the registration requirements of the Securities
Act and are “restricted securities” within the meaning of Rule 144(a)(3) under the
Securities Act.

 

4.             We have has not taken up the
Restricted ADSs as a result of any general solicitation or general advertising,
including advertisements, articles, notices, or other communications published
in any newspaper, magazine or similar media or broadcast over radio or
television; or any seminar or meeting whose attendees have been invited by
general solicitation or general advertising.

 

31

 

5.             We have received a copy of the
Offering Circular dated 29 September, 2002 (the “Offering Circular”) relating
to the Restricted ADSs, and we agree that we have held and will hold the
Offering Circular in confidence, it being understood that the Offering Circular
received by us is solely for our use and is not to be redistributed or
duplicated by us; in making any purchase of Restricted ADSs, we are relying
only on the Offering Circular and not on any other information or
representation concerning the Company; we agree that no person responsible for
the Offering Circular or any part of it will have any liability for any such
information.

 

6.             We confirm that we are a qualified
institutional buyer (as defined in Rule 144A under the Securities Act).

 

7.             We have such knowledge and
experience in financial and business matters as to be capable of evaluating the
merits and risks of an investment in the Restricted ADSs, and we are able to
bear the economic risk of investment in the Restricted ADSs.

 

8.             We are acquiring the Restricted
ADSs for our own account and not with a view to any distribution of the
Restricted ADSs, subject, nevertheless, to the understanding that the
disposition of our property shall at all times be and remain within our
control.

 

9.             We understand that the Restricted
ADSs will be delivered to us in certificated form and each certificate will
bear a legend substantially to the following effect:

 

“THE
RESTRICTED ADSs EVIDENCED HEREBY AND THE RESTRICTED SHARES REPRESENTED THEREBY
HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), OR WITH ANY SECURITIES REGULATORY AUTHORITY OF
ANY JURISDICTION.  THE RESTRICTED ADSs
MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED OR DELIVERED EXCEPT
(A) IN AN OFFSHORE TRANSACTION MEETING THE REQUIREMENTS OF RULE 904 OF
REGULATION S UNDER THE SECURITIES ACT, (B) PURSUANT TO AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF
AVAILABLE), OR (C) PURSUANT TO ANOTHER EXEMPTION FROM REGISTRATION UNDER THE
SECURITIES ACT AND, IN EACH CASE, IN ACCORDANCE WITH APPLICABLE SECURITIES LAWS
OF THE STATES OF THE UNITED STATES AND OTHER JURISDICTIONS.”

 

and that such
certificates will be reissued without the foregoing legend only in the event of
a disposition of the Restricted ADSs in accordance with the provisions of
paragraph 10 below (save in the case where the Restricted ADSs remain
“restricted securities” within the meaning of Rule 144(a)(3) under the Securities
Act (“Rule 144(a)(3)”) following the transaction).

 

10.           We agree that in the event that at
some future time we wish to dispose of any of the Restricted ADSs, we will not
do so unless such disposition is made in accordance with any applicable
securities laws of any state of the United States and we certify that either:

 

32

 

(a)           we have transferred,
or will have transferred, the Restricted ADSs evidenced by the Restricted ADR
in a transaction exempt from the registration requirements of the Securities
Act under Rule 144(e) or Rule 144(k) (a “Rule 144 Transaction”) and enclose
therewith an opinion of counsel reasonably satisfactory to the ADS depositary
(the “Depositary”) and the Company which states that the transfer is exempt
from the registration requirements of the Securities Act and that the American
Depositary Shares to be issued upon transfer are freely transferable; or

 

(b)           we have transferred,
or will have transferred, the Restricted ADSs evidenced by the Restricted ADR
in an offshore transaction in accordance with Rule 904 of Regulation S under
the Securities Act (a “Reg S Transaction”); or

 

(c)           we have transferred,
or will have transferred, the Restricted ADSs evidenced by the Restricted ADR
in a transaction exempt from the registration requirements of the Securities
Act other than a Rule 144 Transaction or a Reg S Transaction and enclose
therewith an opinion of counsel reasonably satisfactory to the Depositary and
the Company which states that the transfer is exempt from the registration
requirements of the Securities Act.

 

11.           We understand that, so long as the
Restricted ADSs remain “restricted securities” within the meaning of Rule
144(a)(3), we may request cancellation of Restricted ADSs in exchange for the
Shares only if  we certify to the
Company that either:

 

(a)           we have sold or
otherwise transferred, or agreed to sell or otherwise transfer and at or prior
to the time of withdrawal will have sold or otherwise transferred, the
Restricted ADSs or the Shares represented thereby in an offshore transaction in
accordance with Rule 904 of Regulation S under the Securities Act; or

 

(b)           we have sold or
otherwise transferred, or agreed to sell or otherwise transfer and at or prior
to the time of withdrawal will have sold or otherwise transferred, the
Restricted ADSs or the Shares evidenced thereby in a transaction exempt from
registration pursuant to Rule 144(e) or Rule 144(k) under the Securities Act, provided
that in connection with such transfer, we have delivered or will deliver
an opinion of U.S. counsel reasonably satisfactory to the Depositary and the
Company to the effect that the transfer is exempt from the registration
requirements of the Securities Act.

 

12.           We expect to receive from the Company
a certain number of Restricted ADSs each representing one-tenth (0.1) of one
Share.  For the express benefit of the
Depositary and with the intention that the Depositary rely hereon, we confirm
and agree that:

 

33

 

(a)           we understand that
the Restricted ADSs to be delivered to it will be issued under the terms of the
Restricted Deposit Agreement (as defined in the Offering Circular);

 

(b)           we agree to be bound
by the terms of the Restricted Deposit Agreement and by the terms of the legend
set forth therein; and

 

(c)           we understand and
agree that the Restricted ADSs delivered to us are not identical to or fungible
with the ADSs issued under the terms of the Deposit Agreement and as such, they
may not, so long as such Restricted ADS are issued pursuant to the Restricted
Deposit Agreement, be entitled to all the rights and benefits of holders of
ADRs under the Deposit Agreement (the “Deposit Agreement”) that are not
restricted ADRs.

 

If you have any questions on how to complete this form, please contact
Dennis Kelly at UBS Warburg, Stamford (Tel. No. +1 203 719 7636) or Florence
Andermatt at UBS AG, Zurich (Tel. No. +41 / 1 / 235 23 44).

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  [Name of Investor]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  (Authorized Officer)

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Contact Tel.:

  

 

34

 

Please return this letter to:

 

UBS Warburg

 

Florence Andermatt

Fax: +41 / 1 / 235 23 44

 

The Company

 

Dr. Christian Stambach

Fax: +41 / 1 / 306 96 97

 

AND

 

Citibank, N.A.

ADR Department

111 Wall Street, 20th Floor

New York, NY 10021

Attention: Mark Gherzo

 

35

 

[Form of Exercising US QIB Investor Letter]

 

[Letterhead of eligible US Investor]

 

[Date]

 

Centerpulse Ltd.

Andreasstrasse 15

8050 Zurich

Switzerland

 

Attention: Dr. Christian
Stambach

Facsimile No.: +41 / 1 / 306 96
97

 

UBS Warburg LLC, Stamford

 

Attention:  Dennis Kelly

Fax: +1 203 719 8303

 

Please also fax copies:

 

UBS AG

8098 Zurich

Switzerland

 

Attention: Florence Andermatt,
ONJ7/OP8E – Emissionen Schweiz

Facsimile No.: +41 / 1 / 235 23
44

 

To whom it may concern

 

 

Re:  Purchase
of             shares,
nominal value of CHF 30 each (“Shares”), of Centerpulse Ltd in
the form of restricted American depositary shares  (“Restricted ADSs”)
pursuant to the exercise of
           preemptive
rights

 

IF
THE EXERCISING HOLDER IS EXERCISING RIGHTS IN RESPECT OF CENTREPULSE
UNRESTRICTED ADRS HELD BY IT. NOTICE OF EXERCISE AND PAYMENT AMOUNTS (IN
U.S.DOLLARS) MUST BE SENT TO CITIBANK, N.A. VIA (A) FAX (FAX. NUMBER (212) 825
53 98) BY 3:00 P.M. (NEW YORK TIME), FRIDAY, OCTOBER 4, 2002 AND (B) OVERNIGHT
COURIER, HAND DELIVERY, OR MAIL TO THE ADDRESS AT THE END OF THIS LETTER.  PLEASE CONTACT CITIBANK, N.A. AT MARK
GHERZO, 212 / 657 14 03, TO OBTAIN THE APPROPRIATE ADS EXERCISE FORMS. FAILIURE
TO MEET THIS DEADLINE WILL RESULT IN THE RIGHTS BEING SOLD BY CITIBANK, N.A.
AND THE PROCEEDS, IF ANY, BEING CREDITED TO YOUR ACCOUNT.

 

36

 

Dear Sirs,

 

In connection
with our purchase of
             Shares
pursuant to the exercise of
            
pre-emptive rights, we hereby represent, agree and acknowledge as follows:

 

1.                                                 existing
American Depositary Shares (“ADSs”) representing
                                                
existing Ordinary Shares issued under the Deposit Agreement, dated July 14,
1997, by and among the Company, Citibank, N.A. and the holders from time to
time of ADRs issued thereunder, are held on our behalf by

 

(1)

and the relevant account
details for such beneficial holder and contact details for such holder’s
custodian are as follows:

 

; and       

we wish to take up our
preemptive rights with respect to
                                    
existing Ordinary Shares represented by our ADSs.

 

2.             We are the beneficial owner of the
pre-emptive rights that we are exercising and acknowledge that the Shares
issuable upon exercise will be issued in the form of Restricted ADSs and will
remain in the form of restricted ADSs for so long as the securities are
“restricted securities” under Rule 144 of the Securities Act of 1933 as amended
(the “Securities Act”).  Accordingly, we
hereby instruct that such Shares be transferred to Citibank N.A. – Zurich
Branch as custodian for Citibank, N.A., depositary for the Restricted ADS facility.  The Restricted ADSs to which we are we
entitled should be issued and delivered as follows:

 

Registration
Name:

 

Address:

 

Physical
restricted ADSs to be delivered by Citibank, N.A. to:

Name of
registered holder:

Address:

Contact Name:

Tel. No.:

Fax No.:

Tax ID letter:

 

(1) Insert (i) name of
applicable custodian(s), including name and participant number of DTC
participants through which  you as
benficial holder hold ADSs, (ii) a contact person at the DTC participant and
contact details and (iii) any other information relating to any intervening
custodians between the DTC participant and you necessary to enable Citibank to
identify your ADS holdings, or if relvant, the name of the registered holder.
If registered in more than one name, provide a separate Schedule A, which
identifies for preceding sentence.

 

37

 

3.             We hereby authorize and therefore
expressly release from Swiss banking secrecy any Depotbank, nominee,
custodian or other financial intermediary through which we hold our Shares to
provide the Company and UBS AG with a copy of this letter and such information
regarding our identity and holding of Shares (including pertinent account
information and details of our identity and contact information) as is
necessary or appropriate to facilitate our exercise of our preemptive rights.

 

4.             We understand that the Restricted
ADSs and the restricted shares represented hereby are not being and will not be
registered under the Securities Act, are being offered and sold to us in a
transaction that is exempt from the registration requirements of the Securities
Act and are “restricted securities” within the meaning of Rule 144(a)(3) under
the Securities Act.

 

5.             We have not taken up the Restricted
ADSs as a result of any general solicitation or general advertising, including
advertisements, articles, notices, or other communications published in any
newspaper, magazine or similar media or broadcast over radio or television; or
any seminar or meeting whose attendees have been invited by general
solicitation or general advertising.

 

6.             We have received a copy of the
Offering Circular dated 27 September, 2002 (the “Offering Circular”) relating
to the Restricted ADSs, and we agree that we have held and will hold the Offering
Circular in confidence, it being understood that the Offering Circular received
by us is solely for our use and is not to be redistributed or duplicated by us;
in making any purchase of Restricted ADSs, we are relying only on the Offering
Circular and not on any other information or representation concerning the
Company; we agree that no person responsible for the Offering Circular or any
part of it will have any liability for any such information.

 

7.             We confirm that we are a “qualified
institutional buyer” (as defined in Rule 144A under the Securities Act).

 

8.             We have such knowledge and
experience in financial and business matters as to be capable of evaluating the
merits and risks of an investment in the Restricted ADSs, and we are able to
bear the economic risk of investment in the Restricted ADSs.

 

9.             We are acquiring the Restricted
ADSs for our own account and not with a view to any distribution of the
Restricted ADSs, subject, nevertheless, to the understanding that the
disposition of our property shall at all times be and remain within our
control.

 

10.           We understand that the Restricted
ADSs will be delivered to us in certificated form and each certificate will
bear a legend substantially to the following effect:

 

“THE
RESTRICTED ADSs EVIDENCED HEREBY AND THE RESTRICTED SHARES REPRESENTED THEREBY
HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), OR WITH ANY SECURITIES REGULATORY AUTHORITY OF
ANY JURISDICTION.  THE RESTRICTED ADSs
MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED OR

 

38

 

DELIVERED EXCEPT (A) IN AN
OFFSHORE TRANSACTION MEETING THE REQUIREMENTS OF RULE 904 OF REGULATION S UNDER
THE SECURITIES ACT, (B) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE
SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE), OR (C) PURSUANT
TO ANOTHER EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT AND, IN EACH
CASE, IN ACCORDANCE WITH APPLICABLE SECURITIES LAWS OF THE STATES OF THE UNITED
STATES AND OTHER APPLICABLE JURISDICTIONS.”

 

and that such
certificates will be reissued without the foregoing legend only in the event of
a disposition of the Restricted ADSs in accordance with the provisions of
paragraph 10 below (save in the case where the Restricted ADSs remain
“restricted securities” within the meaning of Rule 144(a)(3) under the Securities
Act (“Rule 144(a)(3)”) following the transaction).

 

11.           We agree that in the event that at
some future time we wish to dispose of any of the Restricted ADSs, we will not
do so unless such disposition is made in accordance with any applicable
securities laws of any state of the United States and we certify that either:

 

(a)           we have transferred,
or will have transferred, the Restricted ADSs evidenced by the Restricted ADR
in a transaction exempt from the registration requirements of the Securities
Act under Rule 144(e) or Rule 144(k) (a “Rule 144 Transaction”) and enclose
therewith an opinion of counsel reasonably satisfactory to the ADS depositary
(the “Depositary”) and the Company which states that the transfer is exempt
from the registration requirements of the Securities Act and that the American
Depositary Shares to be issued upon transfer are freely transferable; or

 

(b)           we have transferred,
or will have transferred, the Restricted ADSs evidenced by the Restricted ADR
in an offshore transaction in accordance with Rule 904 of Regulation S under
the Securities Act (a “Reg S Transaction”); or

 

(c)           we have transferred,
or will have transferred, the Restricted ADSs evidenced by the Restricted ADR
in a transaction exempt from the registration requirements of the Securities
Act other than a Rule 144 Transaction or a Reg S Transaction and enclose
therewith an opinion of counsel reasonably satisfactory to the Depositary and
the Company which states that the transfer is exempt from the registration
requirements of the Securities Act.

 

12.           We understand that, so long as the
Restricted ADSs remain “restricted securities” within the meaning of Rule
144(a)(3), we may request cancellation of Restricted ADSs in exchange for the
Shares only if  we certify to the
Depositary and the Company that either:

 

(a)           we have sold or
otherwise transferred, or agreed to sell or otherwise transfer and at or prior
to the time of withdrawal will have

 

39

 

sold or
otherwise transferred, the Restricted ADSs or the Shares represented thereby in
an offshore transaction in accordance with Rule 904 of Regulation S under the Securities
Act; or

 

(b)           we have sold or
otherwise transferred, or agreed to sell or otherwise transfer and at or prior
to the time of withdrawal will have sold or otherwise transferred, the
Restricted ADSs or the Shares evidenced thereby in a transaction exempt from
registration pursuant to Rule 144(e) or Rule 144(k) under the Securities Act, provided
that in connection with such transfer, we have delivered or will deliver
an opinion of U.S. counsel reasonably satisfactory to the Depositary and the
Company to the effect that the transfer is exempt from the registration
requirements of the Securities Act.

 

13.           We expect to receive from the Company
a certain number of Restricted ADSs each representing one-tenth (0.1) of one
Share.  For the express benefit of the
Depositary and with the intention that the Depositary rely hereon, we confirm
and agree that:

 

(a)           we understand that
the Restricted ADSs to be delivered to it will be issued under the terms of the
Restricted Deposit Agreement (as defined in the Offering Circular);

 

(b)           we agree to be bound
by the terms of the Restricted Deposit Agreement and by the terms of the legend
set forth therein; and

 

(c)           we understand and
agree that the Restricted ADSs delivered to us are not identical to or fungible
with the ADSs issued under the terms of the Deposit Agreement and as such, they
may not, so long as such Restricted ADS are issued pursuant to the Restricted
Deposit Agreement, be entitled to all the rights and benefits of holders of
ADRs under the Deposit Agreement that are not restricted ADRs.

 

If you have
any questions on how to complete this form, please contact Dennis Kelly at UBS
Warburg, Stamford (Tel. No. +1 203 719 7636) or Florence Andermatt at UBS AG,
Zurich (Tel. No. +41 / 1 / 235 23 44).

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  [Name of Investor]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  (Authorized Officer)

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Contact Tel.:

  

 

40

 

Please return this letter to:

 

UBS AG

 

Florence Andermatt

ONJ7/OP8E Emissionen Schweiz

Fax: +41 / 1 / 235 23 44

 

The Company

 

Dr. Christian Stambach

Fax: +41 / 1 / 306 96 97

 

AND

 

Citibank, N.A.

ADR Department

111 Wall Street, 20th Floor

New York, NY 10021

Attention: Mark Gherzo

 

41

 

SCHEDULE 1.2

Form of Subscription
forms

 

ZEICHNUNGSSCHEIN

 

Bezugnehmend auf die uns
bekannten Statuten der Centerpulse AG mit Sitz in Zürich (insbesondere deren
Artikel 3b in der Fassung gemäss Beschluss der ordentlichen Generalversammlung
vom 17. Mai 2002), auf den Beschluss des Verwaltungsrates dieser Gesellschaft
vom 27. September 2002 betreffend eine genehmigte Kapitalerhöhung um CHF [ • ] sowie auf den
Emissionsprospekt (“Offering and Listing Circular”) vom 29. September 2002
zeichnen wir hiermit

 

[
•  ]
Namenaktien zu je CHF 30.– Nennwert

 

zum Gesamtausgabepreis von CHF
[ •
] und verpflichten uns bedingungslos, eine dem Ausgabebetrag entsprechende
Einlage zu leisten.

 

Diese Zeichnung bleibt
verbindlich bis zum [ • ] 2002.

 

 

[Zürich], den [ • ]

 

 

UBS AG [ / InCentive Investment
(Jersey) Ltd ]:

 

 

 

	
   

  	
   

  	
   

  	
   

  

 

42

 

SCHEDULE 3.1

 

Form of Letter to SWX

 

 

(Letterhead
of Centerpulse Ltd.)

 

 

SWX Swiss Exchange

Admission Board

Selnaustrasse 30

P.O. Box

8021 Zurich

 

 

Zurich, October •, 2002

 

 

Declaration addressed to the Admission Board
of the SWX Swiss Exchange

 

 

Ladies and Gentlemen:

 

Centerpulse Ltd., Zurich, as
issuer and applicant for the

 

•
new registered shares Centerpulse Ltd. with nominal value of CHF 30 each,
out of a capital increase in the ratio 1 new for •
old registered shares with nominal value of CHF 30 each

 

(Security no. 654485 / ISIN CH006544859)

 

declares herewith that it has
instructed UBS AG, acting through its business group UBS Warburg, as Global
Co-ordinator for this issue and as its representative, recognized by the SWX
Swiss Exchange (the “SWX”), to apply for the listing (the “Listing”) on the SWX
in accordance with the Listing Rules of the SWX (“Listing Rules”). In this
connection, Centerpulse Ltd. declares that:

 

1.               the
responsible bodies of Centerpulse Ltd. are in agreement with the Listing;

 

2.               the prospectus and the Listing notice
are complete pursuant to the Listing Rules;

 

43

 

3.               there has been no material deterioration
of its assets and liabilities, financial position, profits and losses and
prospects since publication of the prospectus;

 

4.               it is in agreement with the disclosure
obligations pursuant to Chapter IV and the system of sanctions pursuant to
Chapter VII of the Listing Rules and is prepared to subject itself to the
procedures and decisions of the Appeals Court pursuant to Art. 83 of the
Listing Rules;

 

5.               it bears the costs for the Listing
according to the regulations of the SWX.

 

Yours faithfully,

 

 

Centerpulse Ltd.

 

44

 

SCHEDULE 5(a).1

 

 

Copies of this Offering
Circular are available free of charge in Switzerland at the offices of UBS Warburg,
Corporate Finance and Capital Markets Legal Services, at Europastrasse 1, CH-8152
Opfikon, Switzerland (Tel.:  +41 1 239
4703, Fax:  +41 1 239 2111, E-mail:
swiss-prospectus@ubsw.com).

 

45

 

SCHEDULE 5(a).2

 

 

Management

 

Board of Directors

 

René Braginsky                          53             Member                           2002                         2005

 

René Braginsky: René
Braginsky is the chief executive officer and delegate of the board of directors
of InCentive Capital AG, which is the Company’s largest shareholder. He was
Director of the Institutional Investors division of Bank Sal. Oppenheim jr.
& Cie (Schweiz) AG between 1980 and 1999. Before that, he worked for three
years at Bank Vontobel. In 1969, he started his financial career in the
brokerage department of Union Bank of Switzerland, where he spent seven years
and worked in Paris, London, New York and Houston. Mr. Braginsky co-founded
InCentive Investment AG in 1985.

 

Major
Shareholders

 

As of September 24, InCentive
Capital AG (Baarerstrasse 8, 6301 Zug, Switzerland) held, through its
wholly-owned subsidiary InCentive Investment (Jersey) Ltd. (Lister House, The
Parade, St.Helier, Jersey), 1,173,934 registered shares of the Company
(corresponding to 11.73% of the Company’s registered issued share capital). In
addition to this shareholding, InCentive Capital AG, through InCentive
Investment (Jersey) Ltd., held as of that date call options covering 478,000
registered shares of the Company (corresponding to 4.78% of the Company’s
registered issued share capital) and had granted put options covering 111,000
registered shares of the Company (corresponding to 1.11% of the Company’s
registered issued share capital).

 

Mr. René Braginsky, who is a
member of the Company’s Board of Directors (see “Management3⁄4Board
of Directors”), serves as delegate of the board of directors and chief
executive officer of InCentive Capital AG and owns 20% of that company’s share
capital. He also owns 100% of the share capital of InCentive Asset Management
Ltd., which acts as investment manager for InCentive Capital AG and for its
subsidiary InCentive Investment (Jersey) Ltd.

 

46

 

SCHEDULE 12.2

 

Form of Comfort
Letter

 

September 27, 2002

 

 

Centerpulse
Ltd.

Andreasstrasse 15

CH —
8050 Zürich

Switzerland

 

and

 

UBS
AG, acting through its business group UBS Warburg

Europastrasse 1

CH-8152 Opfikon

Switzerland

 

as
representative

of
the several underwriters

 

RE: Offering of shares (the “Shares”) with a nominal value of
CHF 30 of Centerpulse Ltd. inside the United States

 

Ladies
and Gentlemen:

 

We
have audited the consolidated financial statements of Centerpulse Ltd.
(formerly Sulzer Medica Ltd.) (the “Company”) and subsidiaries (the “Group”) as
of December 31, 2001 and 2000 and for each of the three years in the period
ended December 31, 2001, included in the offering circular of 1,822,408 Shares with
a nominal value of CHF 30 of the Company. 
Our report with respect thereto is also included in the offering
circular.  The offering circular dated
September 29, 2002 is herein referred to as the Offering Circular.  We have audited the financial statements
Sulzer Medica Ltd. (Parent Company) as of and for the year ended December 31,
2001, included in the Offering Circular. 
Our report with respect thereto is also included in the Offering
Circular.   We have reviewed the
unaudited condensed consolidated financial statements of the Group as of June
30, 2002 and for the six-month period ended June 30, 2002, included in the
Offering Circular.  Our report with
respect thereto (which contains a going concern explanatory paragraph that
describes the Group’s substantial working capital deficit arising from its
obligations under a settlement agreement for which it had not obtained
unconditional long-term financing, discussed in note 11 to the unaudited
condensed consolidated financial statements) is also included in the Offering
Circular.

 

 

47

 

This
letter is being furnished in reliance upon your representation to us that:

 

(a)  You are knowledgeable  with respect to  the due diligence  review
process  that would be performed if  this placement of securities were being
registered pursuant to the Securities Act of 1933 (the Act).

 

(b)  In connection  with  the offering  of Shares, the  review process you  have
performed is substantially  consistent
with the due  diligence review  process that  you would have  performed
if this placement  of securities  were being registered  pursuant to the Act.

 

In connection with the Offering Circular:

 

1.   We are independent certified public
accountants with respect to the Company under Rule 101 of the Code of
Professional Conduct of the American Institute of Certified Public
Accountants, and its rulings and interpretations, and within the meaning of the
Swiss legislation including the listing rules of the SWX Swiss Exchange.

 

2.   In our opinion, the consolidated financial
statements comply as to form in all material respects with the listing rules of
the SWX Swiss Exchange.

 

3.   We have not audited
any financial statements of the Group as of any date or for any period
subsequent to December 31, 2001; although we have conducted  an audit for the year  ended 
December 31, 2001,  the purpose
(and therefore the scope) of the audit was 
to enable us to express an opinion on the consolidated financial
statements as of   December 31, 2001 and
for the year then ended, but not on the financial statements for any interim
period within that year.   Therefore, we
are unable to and do not express any opinion on the unaudited condensed
consolidated balance sheet as of June 30, 2002 and  the  unaudited  condensed 
consolidated statements  of  income,  
of  shareholders’ equity and
of  cash  flows  for the six-month
periods ended  June 30, 2002 and 2001
included in the Offering Circular,  or
on the financial position, results of operations, or cash flows as of any date
or for any period  subsequent to
December  31, 2001.

 

4.   For purposes of this letter we have read the 2002 minutes of the
meetings of the shareholders, the Board of Directors, the Corporate Governance
Committee, the Finance and Audit Committee and the Management Development and
Compensation Committee of the Group as set forth in the minute books as of
September 27, 2002, officials of the Company having advised us that the minutes
of all such meetings through  that date
were  set forth  therein (except for the  minutes of the  September 27, 2002 Board of Directors meeting which were not
approved in final form, for which drafts were provided to us; officials of the
Company have represented that such drafts include all substantive actions  taken at such  meeting),  and have
carried out other procedures to September 25, 2002 (our work did not
extend  to the period from September 26,
2002  to  September 27, 2002, inclusive), as follows:

 

48

 

With respect to the period
from  July 1, 2002 to  August 31, 2002, we have:

 

(i)  read the unaudited consolidated financial
data  of the  Group for July and August of both 2002 and 2001, furnished us by
the Company, officials  of the Company
having  advised us that no  such financial data as of any date or for
any period subsequent to  August 31, 2002, were available; and

 

(ii)  inquired of 
certain officials of the  Company
who have responsibility for financial and accounting  matters whether the 
unaudited financial  data
referred  to in (i)  is 
stated on a  basis substantially
consistent  with   that  
of  the   audited   consolidated
financial statements included in the Offering Circular.

 

The foregoing procedures do
not constitute an audit conducted in accordance with generally accepted
auditing standards, auditing standards promulgated by the Swiss profession or
with the International Standards on Auditing issued by the International
Federation of Accountants (IFAC).  
Also, they would not necessarily reveal matters of significance with
respect to the comments in the following paragraph.  Accordingly, we make no representations regarding the sufficiency
of the foregoing procedures for your purposes.

 

5.   Nothing came to our attention as a result of the foregoing
procedures, however, that caused us to believe that:

 

(i)
at  August 31, 2002, there  was any 
change in capital stock or increase 
in  long-term  debt of 
the  Group as compared with
amounts shown on the  June 30, 2002
unaudited condensed consolidated balance 
sheet included in  the Offering
Circular,  or (ii) for the period from
July 1, 2002 to  August 31, 2002,  there was any decrease, as compared to the
corresponding  period  in the 
preceding year,  in total
consolidated net sales, except that the unaudited consolidated balance sheet as
of August 31, 2002, which we were furnished by the Company, showed an increase
from June 30, 2002, in capital stock as follows (amounts shown in CHF
thousands):

 

	
   

  	
   

  	
  Capital
  Stock

  	
   

  
	
  June 30, 2002

  	
   

  	
  300,247

  	
   

  
	
  August 31, 2002

  	
   

  	
  300,319

  	
   

  

 

 

6.   As mentioned in 4, Company officials have advised us that no
consolidated financial data as of any date or for any period subsequent to
August 31, 2002, are available; accordingly, the procedures carried out by us
with respect to changes in financial statement items after August 31, 2002,
have, of necessity, been even more limited than those with respect to the
periods referred to in 4.  We have
inquired of certain officials of the Company who have responsibility for
financial and accounting matters whether (i) at September 25, 2002 there was
any change in the capital stock or increase in long-term

 

 

49

 

debt of the Group as
compared with amounts shown on the June 30, 2002 unaudited condensed
consolidated balance sheet included in the Offering Circular or (ii) for the
period from July 1, 2002 to September 25, 2002, there was any decrease, as
compared with the corresponding period in the preceding year, in total
consolidated net sales.   On the basis
of these inquiries and our reading of the minutes as described in 4, nothing
came to our attention that caused us to believe that there was any such change,
except as described in the following sentence. We have been informed by
officials of the Company that there continues to be an increase in capital
stock as follows (amounts shown in CHF thousands):

 

	
   

  	
   

  	
  Capital
  Stock

  	
   

  
	
  June 30, 2002

  	
   

  	
  300,247

  	
   

  
	
  September 25, 2002

  	
   

  	
  300,697

  	
   

  

 

 

7.    For purposes of this
letter, we have also read the items identified by you in Appendix 1, which
includes copies of certain pages of the Offering Circular, and have performed
the following procedures, which were applied as indicated with respect to the
symbols explained below:

(A)     We compared the amount or percentage with a
corresponding amount or percentage included in the Group’s consolidated
financial statements included in the Offering Circular, and found such amounts
or percentages to be in agreement after giving effect to aggregation or
rounding, if applicable.  However, we
make no comment with respect to classification or reasons given for changes
between periods, where applicable.

 

(B)                  We recomputed the amount, percentage or
ratio based on the corresponding amount, percentage or ratio in the Group’s
consolidated financial statements included in the Offering Circular and found
them to be in agreement after giving effect to aggregation or rounding, if
applicable.  However, we make no comment
with respect to classification or reasons given for changes between periods,
where applicable.

 

(C)                  We compared or recomputed the
corresponding amount, percentage or ratio with the corresponding amount,
percentage or ratio included in or derived from the Group’s accounting records
based on such accounting records and found it to be in agreement after giving
effect to aggregation or rounding, if applicable.  However, we make no comment with respect to classification or
reasons given for changes between periods, where applicable.

 

(D)                 We recomputed the amount based on the related
amounts in a schedule prepared by the Group from its accounting records, giving
effect to rounding where applicable.  We
a) compared the amounts on the schedule to corresponding amounts appearing in
the accounting records and found such amounts to be in agreement and b)
determined that the schedule was mathematically accurate. However, we make no
comment with 

 

50

 

                                  respect to classification or reasons given for changes between periods,
where applicable.

 

(E)      With
respect to research and development expenditures, we compared or recomputed the
amount to the corresponding amount in the Group’s audited consolidated
financial statements included in the Offering Circular and found them to be in
agreement after giving effect to aggregation or rounding. However, we make no
comment as to the nature or classification of such expenditures.

 

(F)                   With respect to “EBITDA”, we compared EBITDA to
calculations provided by the Group and found them to be in agreement after giving
effect to aggregation and rounding.  We
compared the calculations to the description of EBITDA included in the
footnotes to the Summary Financial Data and found them to be in agreement.  We compared and agreed the amounts used in
the calculations to the Group’s consolidated financial statements included in
the Offering Circular, or to amounts included in or derived from the Group’s
accounting records, as applicable. 
However, we make no comment as to the appropriateness of the Group’s
definition of EBITDA.

 

(G)      [Tickmark reference not used]

 

(H)      We compared the amount or percentage with
a corresponding amount or percentage included in the Group’s unaudited
condensed consolidated financial statements included in the Offering Circular,
and found such amounts or percentages to be in agreement after giving effect to
aggregation or rounding, if applicable. 
However, we make no comment with respect to classification or reasons
given for changes between periods, where applicable.

 

(I)       We recomputed the amount, percentage or
ratio based on the corresponding amount, percentage or ratio in the Group’s
unaudited condensed consolidated financial statements included in the Offering
Circular and found them to be in agreement after giving effect to aggregation
or rounding, if applicable.  However, we
make no comment with respect to classification or reasons given for changes
between periods, where applicable.

 

(J)       With respect to research and development
expenditures, we compared or recomputed the amount to the corresponding amount
in the Group’s unaudited condensed consolidated financial statements included
in the Offering Circular and found them to be in agreement after giving effect
to aggregation or rounding. However, we make no comment as to the nature or
classification of such expenditures.

 

51

 

(K)      With respect to “EBITDA”, we compared
EBITDA to calculations provided by the Company and found them to be in
agreement after giving effect to aggregation and rounding.  We compared the calculations to the
description of EBITDA included in the footnotes to the Summary Financial Data
and found them to be in agreement.  We
compared and agreed the amounts used in the calculations to the Group’s
unaudited consolidated condensed financial statements included in the Offering
Circular, or to amounts included in or derived from the Group’s accounting
records, as applicable.  However, we
make no comment as to the appropriateness of the Company’s definition of
EBITDA.

 

(L)      For the Capitalization Table we compared
the amounts and numbers of shares listed under the caption “Actual” with the
corresponding amount in the Group’s unaudited consolidated condensed financial
statements included in the Offering Circular and found them to be in agreement
after giving effect to aggregation or rounding, if applicable.  We compared the amounts and numbers of
shares listed under the caption “As Adjusted,” adjusted for the issuance of the
securities to be offered by means of the Offering Circular and for the proposed
use of the proceeds thereof, as described under “Use of Proceeds,” with the
amounts and numbers of shares shown under the caption “As Adjusted” and found
such amounts and numbers of shares to be in agreement. However, we make no
comments regarding the reasonableness of the “Use of Proceeds” or whether such
use will actually take place.

 

8.   The procedures enumerated in paragraph 7 do not constitute an
audit conducted in accordance with generally accepted auditing standards, auditing standards promulgated by the
Swiss profession or with the International Standards on Auditing issued by the
International Federation of Accountants (IFAC). Accordingly, we make no
representations regarding the sufficiency of the foregoing procedures for your
purposes.

 

9.   It should be understood that we make no
representations regarding questions of legal interpretation or regarding the
sufficiency for your purposes of the procedures enumerated in paragraph 7;
also, such procedures would not necessarily reveal any material misstatement of
the amounts or percentages listed above. Further, we have addressed ourselves
solely to the foregoing data as set forth in the Offering Circular and make no
representations regarding the adequacy of disclosure or regarding whether any
material facts have been omitted.

 

10.   This letter is solely for the information
of the addressees and to assist UBS AG, acting through its business group UBS
Warburg, as representative of the several underwriters, in conducting and
documenting its investigation of the affairs of the Company in connection with
the offering of the Shares covered by the Offering Circular, and it is not to
be used, circulated, quoted, or otherwise referred to for any other purpose,
including but not limited to the registration, purchase or sale of securities,
nor is it to be filed with or  referred
to  in 
whole or  in part  in the 
Offering Circular  or any other
document, except that reference may be made to it in the Underwriting Agreement
or  in any list of closing  documents pertaining to the offering of the
securities covered by the Offering Circular.

 

52

 

11.  This letter is intended for use within the United States
in connection with the offering or sale of Shares. It is not to be used in any
other jurisdiction whatsoever.

 

Yours
very truly,

 

 

PricewaterhouseCoopers Ltd.

 

 

 

 

	
   

  	
   

  	
   

  
	
  R. Rausenberger

  	
   

  	
  St. Haag

  

 

 

53

 

Appendix 1

 

Copies of
certain pages of the Offering Circular

 

 

 

 

54

 

SCHEDULE 12.3

 

Form of Officers’
Certificate

 

Officer’s Certificate

[On the Letterhead of Centerpulse Ltd.]

 

UBS AG,
acting through its business group UBS Warburg

Europastrasse 1

CH-8152 Zurich- Opfikon

 

InCentive Capital AG

Baarerstrasse 8

CH-6300 Zug

 

[ • ], 2002

 

Dear Sirs

 

CENTERPULSE LTD.

Offering of •
Registered Shares of Centerpulse Ltd. (the “Offering”)

 

We refer to the underwriting
and subscription agreement entered into between Centerpulse Ltd. (“Centerpulse”),
UBS AG, acting through its business group UBS Warburg (“UBS Warburg”), and InCentive
Capital AG (“InCentive”) (UBS Warburg and InCentive are together referred
to as the “Underwriters”), dated September 27, 2002 (the “Underwriting
Agreement”).

 

Capitalised terms used in this
Certificate shall have the same meaning as set forth in the Underwriting
Agreement.

 

The undersigned, Dr. Max Link
and Urs Kamber, hereby certify that they are the authorized signatories of
Centerpulse, and that as such, they are authorized to execute and deliver this
Certificate on behalf of Centerpulse and, with reference to the Underwriting
Agreement, further certify, represent and warrant on behalf of Centerpulse as
follows:

 

1.                             The representations and
warranties of Centerpulse contained in the Underwriting Agreement, which relate
to Centerpulse and its subsidiaries, continue to be true as of the date of this
Officer’s Certificate.

 

2.                             Centerpulse has not
sustained since the date of the latest audited financial statements included in
the Offering Circular any loss or interference with its business from fire,
explosion, flood or other calamity, whether or not covered by insurance, or
from any labour dispute or court or governmental action, order or decree, otherwise
than as set forth or contemplated in the Offering Circular, and since the
respective dates as of which information is given in the Offering Circular,
there has not been any change in the registered issued share capital of
Centerpulse, or the incurring of any new third-party financial debt outside of
the ordinary course of business, taken as a whole, or any

 

55

 

material
adverse change, or any development or event involving a prospective material
adverse change in or affecting the business, management, consolidated financial
condition, shareholders’ equity, properties, prospects  or results of operations of Centerpulse and
its subsidiaries, taken as a whole, otherwise than as set forth in the Offering
Circular.

 

 

Yours faithfully,

 

Centerpulse Ltd. 

 

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (Dr. Max Link, CEO Centerpulse Ltd.)

  	
  (Urs Kamber, CFO Centerpulse Ltd.)

  

 

56

 

SCHEDULE 12.4(a)

 

Form of Disclosure
Letter and Form of Legal Opinion from Bär & Karrer

 

UBS AG, acting through

its business group UBS Warburg

Europastrasse 1

CH-8152 Opfikon

 

on behalf of the Underwriters

named in the Underwriting

Agreement

 

Zurich, 29 September 2002

32287/166//X1035517

 

Ladies and Gentlemen,

 

We are acting as Swiss legal
counsel to Centerpulse AG, a Swiss company limited by shares (the “Company”),
in connection with an offering by the Company in accordance with the offering
circular dated 29 September 2002 (the “Offering Circular”) relating to a share
capital increase by way of an offering of preemptive rights to subscribe for registered
shares with a nominal value of CHF 30 each (the “Offering”). This letter is furnished
to you pursuant to Section 12.4(a) of the subscription and underwriting agreement
dated 27 September 2002 between the Company, UBS AG and Incentive Capital AG
(the “Underwriting Agreement”). Capitalized terms used herein and not otherwise
defined have the meaning assigned to such terms in the Offering Circular.

 

Because the primary purpose of
our professional engagement was not to establish or confirm factual matters or
financial, accounting or statistical information, and because many
determinations involved in the preparation of the Offering Circular are of a
wholly or partially non-legal character or relate to legal matters outside the
scope of our opinion letter to you of even date herewith, we are not passing
upon and do not assume any responsibility for the accuracy, completeness or
fairness of the statements contained in the Offering 

 

57

 

Circular, and we make no
representation that we have independently verified the accuracy, completeness
or fairness of such statements.

 

In the course of our acting as
counsel to the Company in connection with the Company’s preparation of the
Offering Circular, we participated in conferences and telephone conversations
with directors, officers and other representatives of the Company,
representatives of U.S. counsel to the Company, representatives of the Company’s
independent auditors, representatives of the underwriters and representatives
of Swiss and U.S. counsels to the underwriters, during which conferences and
conversations the contents of the Offering Circular were discussed, and we
reviewed certain corporate records and documents furnished to us by the
Company.

 

Based on our participation in
such conferences and conversations, our review of such records and documents as
described above, a disclosure letter of Weil, Gotshal & Manges as U.S.
counsel to the Company with respect to matters addressed to therein, and
attached as annex hereto, and the experience we have gained in our legal
practice, we advise you that no information has come to our attention which
leads us to believe that the Offering Circular (except the financial statements
and schedules and other financial data as well as matters relating to Implant
Litigation in North America included therein, as to which we express no view)
as of the date thereof or hereof, contained or contains an untrue statement of
a material fact or omitted or omits to state a material fact necessary in order
to make the statements therein, in the light of the circumstances under which
they were made, not misleading.

 

We are furnishing this letter
to you solely for your benefit in connection with the Offering. This letter is
not to be used, circulated, quoted or otherwise referred to for any other
purpose.

 

Yours faithfully,

 

 

BÄR & KARRER

 

58

 

Draft of 

September 27, 2002

 

Form of WGM
Disclosure Letter

(subject to Opinion
Committee Review)

 

September [28], 2002

 

Bär & Karrer

Seefeldstrasse 19

CH-8024 Zurich

Switzerland

 

 

Dear Sirs:

 

We have acted
as special counsel to Centerpulse Ltd. (the “Company”) in connection with the
preparation of the Offering Circular, dated September [28], 2002, (the
“Offering Circular”) relating to the capital increase by way of a rights
offering (the “Offering”) of shares with a nominal value of CHF 30 each of the
Company.

 

In so acting,
we have examined originals or copies (certified or otherwise identified to our
satisfaction) of the Offering Circular and such corporate records, agreements,
documents and other instruments, and such certificates or comparable documents
of public officials and of officers and representatives of the Company, and
have made such inquiries of such officers and representatives, as we have
deemed relevant and necessary as a basis for the opinions hereinafter set
forth.

 

In our
examinations, we have assumed the genuineness of all signatures, the legal
capacity of all natural persons, the authenticity of all documents submitted to
us as originals, the conformity to original documents of all documents
submitted to us as certified, conformed or photostatic copies and the authenticity
of the originals of such latter documents. 
As to all questions of fact material to this letter that have not been
independently established, we have relied upon certificates or comparable
documents of officers and representatives of the Company.

 

This letter is
based upon information that we gained in the course of the services described
herein, considered in the light of our understanding of the Securities Act of
1933, as amended (the “Securities Act”), and the experience we have gained
under the Securities Act through our practice in the field.  In evaluating the laws of Switzerland, we
have relied upon, and subject to the qualifications set forth therein, the
opinion of Bär & Karrer, Swiss counsel to the Company dated today and
delivered to UBS AG (“UBS”) on behalf of the Underwriters named in the
Subscription and Underwriting Agreement (the “Underwriting Agreement”) among
Centerpulse Ltd., UBS, and InCentive Captial AG, dated September 27, 2002 with
respect to a share capital increase by way of an offering of preemptive rights
to subscribe for shares with nominal value of CHF 30 each.  We are providing this letter to you solely
for the purpose of your rendering a disclosure letter to UBS on behalf of the
Underwriters named in the Underwriting Agreement.

 

59

 

We have
participated in conferences with directors, officers and other representatives
of the Company, representatives of Bär & Karrer, representatives of the
Company’s independent auditors, representatives of the underwriters and
representatives of Swiss and US counsel to underwriters at which the Offering
Circular was discussed, and, although we have not independently verified and
are not passing upon and assume no responsibility for the accuracy,
completeness or fairness of the statements contained in the Offering Circular
no facts have come to our attention that have led us to believe that the
Offering Circular, as of the date hereof, contains an untrue statement of
material fact or omits to state a material fact necessary to make the
statements therein, in light of the circumstances under which they are made,
not misleading (it being understood that we express no view with respect to the
financial statements and related notes and the other financial, statistical and
accounting data included in the Offering Circular or excluded therefrom).

 

This letter is
rendered solely for your benefit in connection with the transactions described
herein.  This letter may not be used or
relied upon by any other person, nor may this letter or any copies hereof be
furnished to a third party, filed with a governmental agency, quoted, cited or
otherwise referred to without our prior written consent.

 

 

Very truly
yours,

 

60

 

 

UBS AG, acting through

its business group UBS Warburg

Europastrasse 1

CH-8152 Opfikon

 

on behalf of the Underwriters

named in the Underwriting

Agreement

 

Zurich, 29 September 2002

 

Ladies and Gentlemen,

 

We have acted as Swiss counsel
to Centerpulse AG, a Swiss company limited by shares (the “Company”), in
connection with an offering by the Company pursuant to an offering circular
dated 29 September 2002 (the “Offering Circular”) relating to a share capital
increase by way of an offering of preemptive rights to subscribe for registered
shares with a nominal value of CHF 30 each (the “Offering”). This letter is
furnished to you pursuant to Section 12.4(a) of the subscription and
underwriting agreement dated 27 September 2002 between the Company, UBS AG and
Incentive Capital AG (the “Underwriting Agreement”).

 

Capitalized terms used and not
defined herein are used herein as defined in the Underwriting Agreement.

 

I.              Documents
examined

 

In arriving at
the opinions under Section III below we have examined the following documents:

 

61

 

(a)           Copies of the
following certified extracts from the respective commercial registers:

 

•                  for the Company
dated 26 September 2002;

 

•                  for Centerpulse
Management AG dated 26 September 2002, Sulzer Ortopedics Ltd dated 26 September
2002, Sulzer Orthopedics (Switzerland) Ltd dated 26 September 2002, Sulzer
Cardiovascular AG dated 26 September 2002 (the “Subsidiaries”).

 

(b)                                Copies of the articles
of association of the Company and the Subsidiaries in their latest versions as
confirmed by the respective commerical registers as of 27 September 2002 (in
relation to the Company) and 26 September 2002 (in relation to the
Subsidiaries).

 

(c)                                 Copy of the Company’s
organisational rules as approved by a board resolution as of 28 August 2002,
together with the duly signed minutes of this board meeting.

 

(d)                                Copies of the share
registers of each of the Subsidiaries dated 26 September 2002.

 

(e)                                 Minutes of the
resolutions taken at the shareholders’ meeting of the Company as of 17 May
2002.

 

(f)                                   Copies of the
following resolutions of the board of directors (Verwaltungsrat) of the
Company authorizing, inter alia, the Offering and the signing
of the Agreement:

 

•                 resolutions
of the board of directors of the Company dated 12 September 2002;

 

•                 resolutions
of the board of directors of the Company dated 27 September 2002.

 

(g)                                Copy of the Offering
Circular dated 29 September 2002.

 

(h)                                Copy of the decision of
the SWX Swiss Exchange dated 26 September 2002 on the listing and admission of
the Company’s Offered Shares for trading on the main board (Hauptsegment)
of the SWX Swiss Exchange and the admission for trading of the Preemptive
Rights at the SWX Swiss Exchange (the “Admission Decision”).

 

62

 

(i)                                    Copy of the
following executed agreements (collectively referred to as the “Agreements”):

 

•                  the Underwriting
Agreement;

 

•                  a copy of a
draft marked as PBWT DRAFT – 9/18/02 of the restricted deposit agreement, to be
dated as of 9 October 2002 (the “Restricted Deposit Agreement”) among the
Company, Citibank N.A. as depositary, and the owners and beneficial owners from
time to time of restricted American Depositary Receipts representing Restrited
ADSs.

 

(h)                                 Confirmations in
writing by the Company’s Head Legal and Compliance International and the Head
Treasury dated 27 September 2002 to the effect that the Company’s fiscal year
corresponds to the calendar year and that neither the Company nor the
Subsidiaries have received from the debt collection office a threat of
bankruptcy (“Konkursandrohung”).

 

II.            Assumptions

 

In rendering this Opinion, we have assumed:

 

(a)                        the genuineness of all
signatures, and factual information given in connection with the Agreements
submitted to us;

 

(b)                       the authenticity of any
agreements, certificates, instruments and documents submitted to us as
originals;

 

(c)                        the conformity to the originals
of any agreements, certificates, instruments and documents submitted to us as
copies;

 

(d)                       due execution and delivery of
the Agreements by the parties thereto other than the Company by persons with
the requisite signing authority conferred upon them in accordance with
applicable law, the respective articles of association and any internal
regulations of each such party to such Agreements;

 

(e)                        that all representations made
and warranties given by any parties to the Agreements submitted to us are true
and accurate as to matters of fact;

 

(f)                          that the data contained in
the copies of the extracts of the commercial registers, articles of association
and share registers enumerated under Section I. (a), (b) and (c) above
respectively is still true and correct;

 

(g)                       that the sale and offering of
the Offered Shares will be conducted in the manner as described in the Offering
Circular and the Agreements;

 

63

 

(h)                       that  any conditions under the Admission Decision have been or will be
duly met by the parties concerned;

 

(i)                           the respective parties to
the Agreements other than the Company have the capacity, power and authority to
execute, deliver and perform such agreements;

 

(j)                           that all authorizations,
approvals, consents, licenses, exemptions and other requirements, other than
those required by Swiss law, for the legality, validity and enforceability of
the Agreements have been duly obtained prior to the signing of such agreements
and are and will remain in full force and effect and that any related
conditions to which the parties thereto are subject have been satisfied.

 

III.                                 Opinion

 

Based on the foregoing assumptions and subject to the qualifications
set out under Section IV hereinafter, we are of the opinion that:

 

(a)                                each of the Company and the Subsidiaries has been duly
incorporated and is validly existing as a corporation under the laws of
Switzerland and has the corporate power and authority to own its property, hold
subsidiaries and transact business in Switzerland as described in the Offering
Circular; neither the Company nor any of the Subsidiaries have received a
threat of bankruptcy (“Konkursandrohung”) from the debt
collection office;

 

(b)                               the
issued and outstanding nominal share capital of the Company conforms as to
legal matters to the description thereof contained in the Offering Circular,
and all of the issued shares of capital stock of the Company have been duly and
validly authorised and issued, and are fully paid and non-assessable;

 

(c)                                if and when the Board of Directors of the Company will have
resolved to implement the capital increase relating to the Offering and the
registration of the capital increase will have been made with the commercial
register, the Company’s share capital will be validly increased and the Offered
Shares will be validly issued;

 

(d)                               the
offering and the sale of the Offered Shares and the execution and performance
by the Company of its obligations under the Agreements will not result in any
violation by the Company of (i) Swiss law or (ii) the Company’s articles of
association or organizational rules;

 

64

 

(e)                                each of the Agreements has been duly authorized and insofar
as Swiss law governs the formalities of execution and delivery thereof,
executed and delivered by the Company, and the Underwriting Agreement, which is
governed by Swiss law, constitutes a valid and legally binding agreement of the
Company, enforceable in accordance with its terms;

 

(f)                                  all approvals, authorizations, consents or registrations of
or with any court or governmental agency or self-regulatory body required under
Swiss law for the issue and sale of the Offered Shares and the trading of the
Preemptive Rights have been obtained or made;

 

(g)                               the
Offering Circular contains all information items (headings) required by and is
in accordance with applicable Swiss law and the listing rules of the SWX Swiss
Exchange;

 

(h)                               the
Company’s agreement to the choice of Swiss law as the law governing the
Underwriting Agreement is valid and binding and would be upheld by the Swiss
courts, and the submission of the Company to the non-exclusive jurisdiction of
the Commercial Court of the Canton of Zurich (Handelsgericht Zürich) and
the jurisdiction of any other court in which any suit, action or other
proceedings arising out of or in connection with the Underwriting Agreement has
been brought against any of the Underwriters is valid and legally binding on
the Company and would be upheld by the Swiss courts;

 

(i)                                   under the present laws of Switzerland, cash dividends and
other cash distributions declared and payable in Swiss francs may be converted
into any other convertible currency in Switzerland and except for certain
restrictions with respect to certain jurisdictions subject to international and
national sanctions such as e.g. Iraq may be transferred from Switzerland and,
except as set forth in the Offering Circular, all cash dividends to holders of
Shares and ADSs who are non-residents of Switzerland will not be subject to
Swiss income, withholding or other taxes and are otherwise free and clear of
any other tax, duty, withholding or deduction in Switzerland and may be paid
without the necessity of obtaining any governmental authorization or further
approval of the SWX Swiss Exchange;

 

(j)                                   the statements in the Offering Circular under the captions
“The Company” — Incorporation, Company Name and Registered Office/Past
Corporate Events/Business Purpose”/Fiscal Year/Subsidiaries and Shareholdings”
(“Subsidiaries and Shareholdings” only with respect to the Subsidiaries as

 

65

 

defined herein), “Taxation – Taxation of Investments in Shares in Switzerland”
and “Share Capital and Shares”, in each case insofar as such statements purport
to summarize statutory or regulatory provisions of Swiss law or the Company’s
articles of association or organisational rules or the Subsidiaries’ articles
of association referred to therein, fairly summarize the matters referred to
therein in all material respects and insofar are true and correct in all
material respects and not misleading;

 

(k)                        other than as described in the
Offering Circular (and other than as borne by the Company), no ad valorem
stamp duty, stamp tax, stamp duty reserve tax or issue, documentary,
certification or other similar tax is payable to any government department or
other taxing authority of or in Switzerland in connection with the allocation
of the Preemptive Rights, the sale and delivery by the Company of the Offered
Shares to or for the respective account of the Global Coordinator or the sale
and delivery by the Global Coordinator of the Offered Shares to the initial
purchasers thereof.

 

IV.                                Qualifications

 

The above opinions are subject to the following qualifications:

 

(a)                                We are members of the Zurich Bar and do not hold ourselves to
be experts in any laws other than the laws of Switzerland. Accordingly, our
Opinion is confined to Swiss law and in particular the legal position of the Company
under Swiss law.

 

(b)                       Our Opinion is based on the
Assumptions under Section II hereinbefore and confined to our review of the documents
referred to under Section I above and Swiss  law as existing and interpreted at the
date of this Opinion. We do not opine as to any facts or circumstances
occurring or coming to our attention subsequent to the date hereof.

 

(c)                        Our Opinion is subject to the
fact that the nature and enforcement of obligations may be affected by lapse of
time, failure to take action or laws (including, without limitation, laws
relating to bankruptcy, fraudulent transfer, insolvency, liquidation,
receivership, moratorium, reorganization and reconstruction) and defenses
generally relating to or affecting creditors’ rights and to the general equity
principles including the abuse of rights.

 

66

 

(d)                       Enforceability may be also limited
with respect to the indemnification and contribution undertaking provided by
the Company which might apply if a court considers the act of the indemnified
person as being willful or grossly negligent.

 

(e)                        Our Opinion is further subject
to the qualification that the indemnification and contribution obligations of
the Company under the Underwriting Agreement are subject to (A) Art. 678 and
680 of the Swiss Code of Obligations (“CO”), which provisions prohibit the
repayment to the Company’s shareholders (or to third parties affiliated to a
shareholder) of (a) the capital surplus (agio) and (b) the nominal share
capital of the Company; and (B) public policy considerations in connection with
Art. 20 and Art. 21 CO and Art. 2 para. 2 of the Swiss Civil Code as well as
other general principles of equity. In view of these provisions, a holding
company may not redeem its paid-in share capital and general reserves in the
amount of one fifth of the paid-in share capital. It is controversial, however,
to what extent the prohibitions and limitations expressed above also apply to
indemnities given in connection with an underwriting and it is our best belief
that courts would not apply the above rules to payments under the aforementioned
indemnities that are made out of the Company’s unrestricted capital surplus. If
the courts were, however, to apply these rules, certain undertakings and
indemnities of the Company may not be enforceable against the Company.

 

(f)                          We express no opinion on the
conformity of the Offering, the sale of the Offered Shares and the execution
and performance by the Company of its obligations under the Agreements with the
principle of equal treatment as a matter of Swiss law.

 

(g)                       In this Opinion, Swiss legal
concepts are expressed in English terms and not in their original Swiss terms.
The concepts concerned may not be identical to the concepts described by the
same English terms as they exist under the laws of other jurisdictions. This
Opinion may, therefore, only be relied upon subject to the reservation that any
issues of interpretation or liability arising hereunder will be governed by
Swiss law and be brought before a Swiss court.

 

(h)                       Our Opinion is subject to the
following general qualifications:

 

(a)                        no opinion is expressed as to
the accuracy of the representations and warranties on facts set out in the
documents reviewed or the factual background assumed therein except as
expressly otherwise stated elsewhere in this opinion letter;

 

67

 

(b)                       for enforcement proceedings in
Switzerland a judgment expressed in a currency other than Swiss Francs will
have to be converted into Swiss Francs;

 

(c)                        the transmission of judicial
documents, including service of process, in a manner other than provided by the
Hague Convention on Signification and Notification Abroad of Judicial and
Extrajudicial Acts in Civil or Commercial Matters of November 15, 1965 could be
held invalid by a court in Switzerland despite a Swiss party having consented
to such service and notification; and the enforceability of a foreign judgment
rendered against the Company is subject to the limitations set forth in (a) the
Lugano Convention on Jurisdiction and Enforcement of Judgments in Civil and
Commercial Matters of September 16, 1988, (b) such other treaties to which
Switzerland is bound and (c) the Swiss Federal Act on Private International
law.

 

This Opinion is rendered solely
to the persons to whom it is addressed for the purpose of the transaction
described herein. This letter is not to be used, circulated, quoted or
otherwise referred to for any other purpose and may only be relied upon on
condition that it shall be governed by and construed in accordance with the
laws of Switzerland. It may not be used, circulated, quoted, referred to or
relied upon by any person other than the persons to whom it is addressed nor
for any other purpose without our prior written consent in each instance. 

 

 

Yours faithfully,

 

 

BÄR & KARRER

 

68

 

SCHEDULE 12.4(b)

 

Form of Legal Opinion
from Lenz & Staehelin

 

 

Confidential

UBS
AG acting through its business group UBS Warburg

Europastrasse 1

CH -
8152 Opfikon

Switzerland

 

(the
“Global Coordinator”)

 

on
behalf of the Underwriters

named
in the Underwriting Agreement

 

 

Zurich, September [•], 2002 [October [•], 2002]

 

Centerpulse
Ltd. / Capital Increase with Rights Offering (the “Offering”)

 

Ladies
and Gentlemen:

 

We have acted as Swiss counsel for the Global Coordinator in connection
with the Offering of Centerpulse Ltd. (the “Company”) as described further in
the Subscription and Underwriting Agreement and the Offering Circular (as
defined below). Capitalized terms used and not defined herein are used herein
as defined in the Subscription and Underwriting Agreement (as defined below).

 

1.                                      For the purposes of this opinion below we
have examined and relied on the fol­lowing documents:

 

(i)                                     a
copy of an extract from the commercial register of the Canton of Zurich (the
“Commercial Register”) regarding the Company dated [in the 1st Opinion:
September 26, 2002 [in the 2nd Opinion: October [•], 2002] [in der 3rd Opinion: October
[•], 2002(the
“Register Extract”);

 

(ii)                                  a
copy of the articles of association (Statuten) of the Company dated May 17,
2002 shown on the Register Extract as being the most recent articles of
association filed with the Commercial Register [2nd and 3rd Opinion: a copy
of the articles of association (Statuten) of the Company dated October [•], 2002 shown on the
Register Extract as being the most recent articles of association filed with
the Commercial Register] (the “Articles of Association”), and a copy of the
organizational regulations (Organisationsreglement) of the Company
(the “Organizational Regulations”) along with a copy of the resolution of the
Company’s Board of Directors dated August 22, 2002 approving the Organizational
Regulations;

 

69

 

(iii)                               a
copy of (a) the notarized deed dated May 17, 2002 regarding the resolutions of
the shareholders meeting of the Company with respect to the creation of
authorized share capital (genehmigtes Aktienkapital) (the
“Shareholders Meeting’s Resolution”), (b) the resolutions of the Board of
Directors dated September 27, 2002 regarding the increase of the share capital
from CHF 300’247’110 by CHF [•]
to CHF [•] (the
“Capital Increase”) (Erhöhungsbeschluss) and (c) of the
resolution of the Board dated September 27, 2002 regarding the approval of the
Subscription and Underwriting Agreement (as defined below) and the
authorization for execution, [in the 2nd and 3rd 
Opinion and (d) of the notarized deed dated October [9], 2002
of the Board of Directors of the Company regarding the implementation of the
Capital Increase (Feststellungsbeschluss)  and (e) of the subscription forms signed
by the Global Coordinators and InCentive Capital AG (“InCentive”),
respectively];

 

(iv)                              a
copy of the Offering and Listing Circular dated September [•], 2002 (the “Offering Circular”);

 

(v)                                a
signed copy of the subscription and underwriting agreement dated September 27,
2002( the “Subscription and Underwriting Agreement”);

 

(vi)                             copies
of excerpts from the relevant commercial registers regarding (a) Centerpulse
Management Ltd., Zurich, (b) Sulzer Orthopedics Ltd., Baar, (c) Centerpulse Orthopedics
(Switzerland) Ltd, Münsingen, and (d) Sulzer Cardiovascular Ltd., Baar
(together the “Swiss Subsidiaries”), each dated September 26, 2002, and copies
of the articles of associations of each of the Swiss Subsidiaries shown on the
relevant register extract as being the most recent articles of association
filed with such relevant commercial register;

 

(vii)                          a copy
of the letter by the SWX Admission Board of the SWX Swiss Exchange addressed to
UBS Warburg dated September 26, 2002 in relation to the admission of the
Preemptive Rights to trading and the listing of the Offered Shares on the SWX
Swiss Exchange (the “SWX Letter”)].

 

2.                                      In rendering this
opinion, we have assumed:

 

(i)                                    the genuineness of
all signatures;

 

(ii)                                 the authenticity of
all agreements, certificates, instruments and documents submitted to us as
originals;

 

(iii)                              the completeness of and
conformity to the originals of all agreements, certificates, instruments and
documents submitted to us as copies;

 

(iv)                             the valid existence of
each of the parties to the Subscription and Underwriting Agreement under any
applicable law (other than the Company);

 

(v)                                the Offering to be
conducted in the manner as described in the Offering Circular and the
Subscription and Underwriting Agreement;

 

70

 

(vi)                             the performance of any
obligations under the Subscription and Underwriting Agreement, being required
to be performed in any jurisdiction outside Switzerland, not to be illegal or
unenforceable by virtue of the laws of such jurisdiction;

 

(vii)                          the due authorization of the
Subscription and Underwriting Agreement and any other documents or instruments
by the parties thereto (other than the Company) and the due execution of the
Subscription and Underwriting Agreement and any other documents or instruments
by the parties thereto by persons who were duly authorized by each party to the
Subscription and Underwriting Agreement;

 

(viii                           the conditions under the SWX
Letter having been, or to be duly met by the parties concerned;

 

(ix)                               each of the Swiss
Subsidiaries being a direct or indirect wholly owned subsidiary of the Company;

 

(x)                                  the Shareholders
Meeting’s Resolutions not being challenged by a dissenting shareholder in court
pursuant to Art. 706 et seq. of the Swiss Code of Obligations (CO).

 

We have not investigated any representations
or warranties made by the parties pursuant to the Subscription and Underwriting
Agreement and any statements setting forth in the Offering Circular, except to
the extent that such representations and warranties and statements are
explicitly covered by the opinion expressed below.

 

 

3.                                      Based on the
foregoing and subject to the qualifications set out herein, we are of the
opinion that:

 

(i)                                     The
Company and each of the Swiss Subsidiaries is a stock corporation (Aktiengesellschaft)
validly existing under the laws of Switzerland and has the corporate power and
authority under its articles of association and, with respect to the Company
the Organizational Regulations, to own its properties and to conduct its
business in the manner described in the Offering Circular.

 

(ii)                                  [in the 1st
Legal Opinion: Upon the resolution of the Board of Directors of the
Company regarding the implementation of the Capital Increase and the
registration of the Capital Increase with the Commercial Register, the
Company’s share capital will be validly increased and the Offered Shares
validly issued.]

 

[in
the 2nd and 3rd Legal Opinion: The Offered Shares have been validly
issued and conform to the description of the Offered Shares in the Offering
Circular.]

 

(iii)                               Under
the Articles of Association and the Organization Regulations, the Company has
the corporate power to enter into the Subscription and Underwriting Agreement.

 

71

 

(iv)                              The
Subscription and Underwriting Agreement have been duly authorized by the
Company. Except for the capital reduction to be resolved by a shareholders’
meeting in an Event of Non-Completion (as defined in the Subscription and
Underwriting Agreement), no further authorization by any shareholders’ meeting
of the Company is required in connection with the execution, delivery and
performance of the Agreement.

 

(v)                                 The
obligations of the Company under the Subscription and Underwriting Agreement are
valid and legally binding and are enforceable in accordance with their
respective terms against the Company.

 

(vi)                              The
execution, delivery and performance by the Company of its obligations under the
Subscription and Underwriting Agreement does not violate any provisions of the
Articles of Association and the Organizational Regulations.

 

(vii)                                                  The
statements set forth in the Offering Circular under the captions (a) “The
Company” with respect to “Incorporation, Company Name and Registered Office”,
“Past Corporate Events”, “Business Purpose”, “Fiscal Year”, “Subsidiaries and
shareholdings” with respect to the Swiss Subsidiaries, (b) “Share Capital and
Shares”, with respect to “Share Capital Structure”, “Form of Shares”, Transfer
of Shares”, “Shareholders’ Meetings, “Preemptive Rights”, Borrowing Power”,
“Conflict of Interest”, “Repurchase of Shares” with respect to the first
paragraph, “Notices”, “Duration and Liquidation”, “Mandatory Bid Rules”,
“Notification and Disclosure of Major Share Interests”, and (c) “Taxation” with
respect to “Taxation of Investments in Shares in Switzerland”, to the extent
that such statements relate to matters of Swiss law or the Articles of
Association or of the Organizational Regulations, are true and correct in all
material respects and not misleading.

 

(ix)                                The
Offering Circular contains all the information items (headings) required by and
is in accordance with Art. 652a CO and the listing rules of the SWX Swiss
Exchange in relation to the contents of a offering and listing circular for
shares, and pursuant to the SWX Letter, subject to the conditions (Auflagen)
set forth therein, the Preemptive Rights have been admitted to trading, and the
Offered Shares approved for listing on the SWX Swiss Exchange.

 

(x)                                   The
Company’s agreement to the choice of Swiss law as the law governing the
Subscription and Underwriting Agreement is valid and binding and would be
upheld by the Swiss courts, and the submission of the Company to the
non-exclusive jurisdiction of the Commercial Court of the Canton of Zurich (Handelsgericht
Zürich) and the jurisdiction of any other court in which any suit,
action or other proceedings arising out of or in connection with the
Subscription and Underwriting Agreement has been brought against any of the
Underwriters (as defined in the Subscription and Underwriting Agreement) is
valid and legally binding on the Company in Switzerland and would be upheld by
the Swiss courts.

 

4.                                      The
foregoing opinions are subject to the following qualifications:

 

(i)                                    We
express no opinion with respect to any laws other than the laws of Switzerland
in effect on the date hereof.

 

72

 

(ii)                                 Enforceability
of the Subscription and Underwriting Agreement may be limited by applicable
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or
similar laws affecting the enforcement of creditors’ rights in general.

 

Enforceability may further be limited to the indemnification
undertaking provided by the Company if a court considers that the indemnified
person has acted willfully or by gross negligence (as set out in Art. 100 CO).

 

(iii)                              Specific
performance of the parties’ obligations under the Subscription and Underwriting
Agreement may not be available in all instances but only damages upon proof of
the damage suffered.

 

(iv)                             The
indemnities given by the Company to the Global Coordinator (and InCentive, and
similar obligations of the Company pursuant to the Sub­scription and Underwrit­ing
Agreement, may not be enforce­able due to man­datory provisions of Swiss
company law (Art. 678 and Art. 680 (2) CO) prohib­iting the repayment of the
paid-in share capital to sharehold­ers.

 

(v)                                The
Company’s obligation to conduct a capital reduction in an Event of
Non-Completion (as defined in the Subscription and Un­derwriting Agreement) may
not be valid, binding and enforceable due to man­datory provisions of Swiss
company law as such obligation might be beyond the corporate powers of the
Company given that such capital reduction has to be resolved by a shareholders
meeting.

 

(vi)                             The
Company’s obligation to purchase the Offered Shares from the Global Coordinator
(and InCentive) in an Event of Non-Com­pletion (as defined in the Subscription
and Underwriting Agreement) is subject to Article 659 (1) CO pursuant to which
a company is only al­lowed to pur­chase its own shares to the extent it has
freely disposable eq­uity (frei verwendbares Eigenkapital) in the
amount of the purchase price of such shares and if the total nominal value of
the purchased shares does not ex­ceed 10% of the nominal share capital of the
company acquiring own shares and (ii) Article 680 (2) CO pursuant to which the
sharehold­ers may not reclaim the amount paid in.

 

(vii)                          Following
the prevailing view in Switzerland, preemptive rights (Be­zugsrechte) not exercised
by existing shareholders have to be used by the Company’s Board of Directors in
the interest of the Company and in compliance with the equal treatment rules of
Swiss company law. To the extent that the allocation of Offered Shares for
which Preemptive Rights are not exercised in the Offering to the Global
Coordinator and InCentive is not in the interest of the Company or violates the
equal treatment rules of Swiss company law, the Board of Directors may become
liable for damages.

 

(viii)                       The
non-granting of Preemptive Rights and the subsequent non-alloca­tion of Offered
Shares to shareholders of the Company who are not allo­cated Preemptive Rights
or Offered Shares in the Offering due to appli­cable for­eign se­curities laws
prohibiting such allocation may violate the equal treatment rules and the
provisions regarding preemptive rights of Swiss company law,

 

73

 

and as a consequence thereof, the Board of Director may be­come liable
for the damages caused to such sharehold­ers.

 

(ix)                               The
Company’s obligation regarding the clear market provision set forth in the
Subscription and Underwriting Agreement may not be valid, binding and
enforceable due to man­datory provisions of Swiss company law as such
obligation might be beyond the corporate powers of the Company given that the
issue of new shares and the creation of author­ized and/or conditional share
capital has to be re­solved by a shareholders meeting.

 

(x)                                  While
under the Swiss Federal Withholding Tax Act as interpreted and applied at
present the Company is not required to make any deduction for Swiss With­holding
Tax (Verrechnungssteuer)
on any payments which it is, or may be re­quired to make under the Subscription
and Underwriting Agreement, we cannot exclude the risk, that in view of Section
14 of the Swiss Withholding Tax Act the undertakings of the Company to make all
payments without deduction of Swiss With­holding Tax and to gross-up its
payments accordingly, may be consid­ered unen­forceable in case that at any
time such payments should become subject to any Swiss With­holding Tax
requirement.

 

(xi)                               The
enforceability of a foreign judgement (if any) rendered against the Company is
subject to the limitations set forth in the Lugano Convention on Jurisdiction
and Enforcement of Judgements in Civil and Commercial Matters of September 16,
1988, such other treaties to which Switzerland is bound, and the Swiss Federal
Act on Private International Law (Bun­desgesetz über das internationale Privatrecht).

 

(xii)                            We
express no opinion on the correctness or completeness of the Offer­ing Circular
other than as expressly set forth above.

 

(xiii)                         in the 1st
Legal Opinion: The due and timely registration of the Capital
Increase as provided for in the Subscription and Underwriting Agreement inter alia
depends on the proceedings before the Commercial Register, and no assurance can
be given that the registration of the Capi­tal In­crease will occur on October
[10], 2002 before 8:00 CET as provided for in the Sub­scription and
Underwriting Agreement. Further, it has to be noted that according to the SWX
Letter, the extract from the Commercial Register evidencing the registration of
the Capital Increase has to be delivered to the SWX on October 9, 16.00 at the
latest.

 

This opinion is solely addressed to you and solely in connection with
the transactions contemplated by the Subscription and Underwriting Agreement.
This opinion is not to be used, circulated, quoted, relied on, or otherwise
referred to for any other purpose without our prior written consent.

 

This opinion shall be governed by and construed in accordance with the
laws of Switzerland.

 

 

Yours
sincerely,

 

74

 

Lenz
& Staehelin

 

 

Patrick
Schleiffer

 

75

 

SCHEDULE 12.4(c)

 

Form of 10b-5 Letter
from Cleary, Gottlieb, Steen & Hamilton

 

 

Writer’s Direct Dial:  +44 207
614 2226

 

September 29,
2002

 

UBS AG, acting through

its business group UBS Warburg

As Representative of the
several Underwriters

Europastrasse 1

CH-8152 Opfikon

Zurich, Switzerland

 

Ladies and Gentlemen:

 

We have acted
as U.S. counsel to you in connection with the offering by Centerpulse AG, a
company limited by shares (Aktiengesellschaft), incorporated with
limited liability under the laws of Switzerland (the “Company”), pursuant to an
offering circular dated September 29, 2002 (the “Offering Circular”) of rights
to subscribe for common shares, par value CHF 30 per share (the “Offering”).  This letter is furnished to you pursuant to
Section 12.4(c) of the underwriting agreement dated September 27, 2002  among the Company, UBS Warburg and InCentive
Capital AG.

 

Because the
primary purpose of our professional engagement was not to establish or confirm
factual matters or financial, accounting or statistical information, and
because many determinations involved in the preparation of the Offering
Circular are of a wholly or partially non-legal character or relate to legal
matters outside the scope of our opinion letter to you of even date herewith,
we are not passing upon and do not assume any responsibility for the accuracy,
completeness or fairness of the statements contained in the Offering Circular
and we make no representation that we have independently verified the accuracy,
completeness or fairness of such statements.

 

However, in
the course of our acting as counsel to you in connection with the Company’s
preparation of the Offering Circular, we participated in conferences and telephone
conversations with representatives of the Company, representatives of Swiss
counsel to the Company, representatives of U.S. counsel to the Company,
representatives of independent public accountants for the Company,
representatives of Swiss counsel to you and your representatives, during which
conferences and conversations the contents of the Offering Circular were
discussed, and we reviewed certain corporate records and documents furnished to
us by the Company.

 

Based on our
participation in such conferences and conversations and our review of such
records and documents as described above, our understanding of the U.S. federal
securities laws and the experience we have gained in our practice thereunder,
we advise you that no information has come to our attention that causes us to
believe that the Offering Circular (except the financial statements and
schedules and other financial data included therein, as to which we express no
view), as of the date thereof or hereof, contained or contains an untrue statement
of a material fact or omitted or omits to state a material fact

 

76

 

necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading.

 

We are
furnishing this letter to you, as Representative of the several Underwriters,
solely for the benefit of the Underwriters in connection with the
Offering.  This letter is not to be
used, circulated, quoted or otherwise referred to for any other purpose.

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  
	
   

  	
  CLEARY,
  GOTTLIEB, STEEN & HAMILTON

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Ashar Qureshi, a Partner

  	
   

  

 

77

 

SCHEDULE 12.4(d)

Form of Opinion from
Cleary, Gottlieb, Steen & Hamilton

 

 

Writer’s Direct Dial:  +44 207
614 2226

 

September 29,
2002

 

UBS AG, acting through

its business group UBS Warburg

As Representative of the
several Underwriters

Europastrasse 1

CH-8152 Opfikon

Zurich, Switzerland

 

We have acted
as U.S. counsel to UBS Warburg in connection with the offering by Centerpulse
AG, a company limited by shares (Aktiengesellschaft), incorporated with
limited liability under the laws of Switzerland (the “Company”), pursuant to an
offering circular dated September 29, 2002 (the “Offering Circular”), of rights
to subscribe for common shares, par value CHF 30 per share (such rights, the
“Rights”, such shares, the “Shares”, and such offering, the “Offering”).  This letter is furnished to you pursuant to
Section 12.4(d) of the underwriting agreement dated September 27, 2002 among
the Company, UBS Warburg and InCentive Capital AG (the “Underwriting
Agreement”).

 

It is our
opinion that no registration of the Rights or the Shares under the U.S.
Securities Act of 1933 is required for the issuance of the Rights and the
initial offer and sale of the Shares by UBS Warburg in the manner contemplated
by the Underwriting Agreement.  In
rendering the foregoing opinion, we have assumed the accuracy of the
representations and warranties, and compliance with the agreements, contained
in the Underwriting Agreement.

 

We are
furnishing this letter to you, as Representative of the several Underwriters,
solely for the benefit of the Underwriters in connection with the
Offering.  This letter is not to be
used, circulated, quoted or otherwise referred to for any other purpose.

 

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  
	
   

  	
  CLEARY,
  GOTTLIEB, STEEN & HAMILTON

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Ashar Qureshi, a Partner

  	
   

  

 

Subscription and Underwriting
Agreement re: Centerpulse Ltd. dated as of September 27, 2002

 

78

 

SCHEDULE 12.4(e)

 

Form of Legal Opinion
from Weil, Gotshal & Manges

 

 

Draft of

September 27, 2002

 

Form of WGM legal
opinion

(subject to opinion committee review)

 

September 27, 2002

 

UBS AG,

acting through its business
group UBS Warburg

on behalf of the Underwriters
named

in the Underwriting Agreement
defined below

2 Finsbury Avenue

London

EC2M 2PP

 

Ladies and Gentlemen:

 

We have acted
as special United States counsel to Centerpulse Ltd. (the “Company”) in
connection with its rights offering (the “Rights Offering”) of [registered]
shares of the Company with a nominal value of CHF 30 each (the “Shares”) to be
delivered in the form of Shares or restricted American Depositary Shares
(“Restricted ADSs”), each Restricted ADS representing
        Shares pursuant to the Subscription
and Underwriting Agreement dated September 27, 2002 (the “Underwriting
Agreement”), among the Company, UBS AG and InCentive Capital AG.  The Restricted ADSs are to be issued
pursuant to a restricted deposit agreement, dated as of October 9 (the
“Restricted Deposit Agreement”), among the Company, Citibank N.A. as depositary
(the “Depositary”), and the holders from time to time of restricted American
Depositary Receipts representing Restricted ADSs.

 

In so acting,
we have examined originals or copies (certified or otherwise identified to our
satisfaction) of the Offering Circular (the “Offering Circular”) of the
Company, dated September 27, 2002, the Underwriting Agreement, the Restricted
Deposit Agreement and such corporate records, agreements, documents and other
instruments, and such certificates or comparable documents of public officials
and of officers and representatives of the Company, and have made such
inquiries of such officers and representatives, as we have deemed relevant and
necessary as a basis for the opinions hereinafter set forth.

 

In our
examinations, we have assumed the genuineness of all signatures, the legal
capacity of all natural persons, the authenticity of all documents submitted to
us as originals, the conformity to original documents of all documents
submitted to us as certified, conformed or photostatic copies and the
authenticity of the originals of such latter documents.  As to all questions of fact material to this
opinion that have not been

 

 

Subscription and Underwriting
Agreement re: Centerpulse Ltd. dated as of September 27, 2002

 

79

 

independently established, we
have relied upon certificates or comparable documents of officers and
representatives of the Company.

 

Based on the
foregoing, and subject to the qualifications stated herein, we are of the
opinion that:

 

1.             Assuming (i) compliance with the restrictions and
procedures set forth in written guidelines prepared by Weil, Gotshal &
Manges LLP and addressed to the Company and UBS Warburg in the issuance of
rights and offer and sale of the Shares, (ii) the representations and
warranties of the Company contained in Section • of the Underwriting
Agreement are true, correct and complete, (iii) compliance by the Company with
their respective covenants and agreements set forth in Sections • and • of the Underwriting Agreement,
(iv) the representations and warranties of the Underwriters contained in Section
• of the
Underwriting Agreement are true, correct and complete, (v) the Underwriters
complied with the offering and transfer restrictions set forth in the
Underwriting Agreement and in the Offering Circular, (vi) the accuracy of the
representations and warranties made by purchasers to whom the Underwriters
initially resell the Shares and compliance with the deemed undertakings made in
the section captioned “Transfer Restrictions” by such purchasers in each case
as set forth in the Offering Circular and (vii) that purchasers to whom the
Underwriters initially resell the Shares receive a copy of the Offering
Circular, it is not necessary in connection with the offer and sale of the
Shares and Restricted ADSs to the Underwriters pursuant to the Underwriting
Agreement [and
the initial resale of the Shares and Restricted ADSs] as described in the
Offering Circular, to register the Shares or Restricted ADSs under the
Securities Act of 1933, as amended.

 

2.             The statements in the Offering Circular under the
caption “Taxation—United States Federal Income Tax Considerations” insofar as
they relate to provisions of United States federal tax laws therein described,
and subject to the limitations set forth therein fairly summarize the matters
set forth therein in all material aspects.

 

3.             Assuming the due authorization, execution and delivery
of the Restricted Deposit Agreement by the Company under Swiss law, the
Restricted Deposit Agreement has been duly executed and delivered by the
Company under the laws of New York and, assuming the due authorization,
execution and delivery of the Restricted Deposit Agreement by the Depositary
and further assuming that each of the Depositary and the Company has full
power, authority and legal right to enter into and perform its obligations
thereunder, the Restricted Deposit Agreement constitutes the legal, valid and
binding obligation of the Company, enforceable against the Company in
accordance with its terms, subject to applicable bankruptcy, insolvency,
fraudulent conveyance, reorganization, moratorium or other 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
enforceability is sought in a proceeding at law or in equity).

 

4.             Upon due issuance by the Depositary of the Restricted
ADRs evidencing the Restricted ADSs being delivered as of the date hereof
against the deposit of Shares in respect thereof in accordance with the provisions
of the Restricted Deposit Agreement,

 

80

 

such Restricted ADRs will be
duly and validly issued and persons in whose names such Restricted ADRs are
registered on the books of the Depositary maintained for such purpose will be
entitled to the rights specified in such Restricted ADRs and the Restricted
Deposit Agreement.

 

The opinions
expressed herein are limited to the federal laws of the United Sates, and we
express no opinion as to the effect on matters covered by this letter of the
laws of any other jurisdiction.

 

The opinions
expressed herein are rendered solely for your benefit in connection with the
transactions described herein.  Those
opinions may not be used or relied upon by any other person, nor may this
letter or any copies hereof be furnished to a third party, filed with a
governmental agency, quoted, cited or otherwise referred to without our prior
written consent.

 

Very truly
yours,

 

Weil, Gotshal
& Manges LLP

 

81

 

SCHEDULE 12.4(f)

 

Form of Legal Opinion
from Shook, Hardy & Bacon LLP

 

 

	
   

  	
  

  	
   

  
	
  GENEVA

  HOUSTON

  KANSAS CITY

  LONDON

  MIAMI

  	
  1010 GRAND BOULEVARD, 5TH FLOOR

  POST OFFICE BOX 15607

  KANSAS CITY, MISSOURI 64106-0607

  TELEPHONE (816) 474-6550 z FACSIMILE
  (816) 842-3190

  	
  NEW ORLEANS

  OVERLAND PARK

  SAN FRANCISCO

  TAMPA

  WASHINGTON, D.C.

  

 

 

September 29, 2002

 

 

UBS AG

As Global Coordinator of the
Several Underwriters

 

 

Ladies and Gentlemen:

 

We have acted as National
Litigation Counsel to Sulzer Orthopedics, Inc., a U.S. corporation (“Sulzer
Orthopedics”), a wholly owned subsidiary of Centerpulse LTD., a Swiss
Aktiengesellschaft (“Parent”), in connection with certain litigation in the
United States involving allegedly defective Inter-Opä
hip implants and NKII Tibial Baseplateâ knee implants
manufactured by Sulzer Orthopedics. 
This letter is being delivered to you pursuant to the Underwriting
Agreement, dated September 27, 2002 regarding the purchase of certain
registered shares of the Parent (the “Offered Shares”).

 

We have examined the Offering
and Listing Circular of the Parent dated September 29, 2002 (the “Offering
Circular”).  Capitalized terms not
otherwise defined in this letter shall have the meanings ascribed thereto in
the Offering Circular.  In addition, we
have examined certain records of Sulzer Orthopedics relating to the matters
covered by the opinions set forth in the numbered paragraph below and have made
such other investigations as we have deemed necessary in connection with the
opinion set forth in such numbered paragraph.

 

Based upon such examination and
review, and subject to the other qualifications and limitations set forth
herein, we are of the opinion that:

 

1.             To our knowledge, the statements set forth in the
paragraph headings “Implant and Related Litigation – Litigation in the
United States” under the caption “BUSINESS OF CENTERPULSE – Litigation”
of the Offering Circular and in the paragraph heading “Recent Developments – Implant
Litigation and Settlement Agreement” under the caption “MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS”
(collectively, the “Covered

 

Subscription and Underwriting
Agreement re: Centerpulse Ltd. dated as of September 27, 2002

 

82

 

Sections”), solely to the
extent they pertain to matters involving the Implant Litigation in the United
States to which Sulzer Orthopedics is a party and for which we act as primary
legal counsel of record to Sulzer Orthopedics (the “Litigation”), accurately
describe the matters referred to therein in all material respects.

 

As we have discussed, we are
primary legal counsel to Sulzer Orthopedics with respect to the
Litigation.  We are not corporate,
securities or regulatory counsel to Sulzer Orthopedics or the Parent in
connection with the preparation of the Offering Circular and as such express no
opinion regarding statements made in the Offering Circular concerning insurance
coverage, manufacturing processes or other matters not pertaining solely to the
Litigation.

 

We have not independently
verified the accuracy, completeness or fairness of the statements made or
included in the Offering Circular and take no responsibility therefor, except
as and to the extent set forth in paragraph 1 above, subject to the
qualifications and limitations set forth herein.

 

Subject to the qualifications
and limitations set forth herein, no facts have come to our attention which
would lead us to believe that, as of the date hereof, the descriptions of the
Litigation in the Offering Circular under the Covered Sections contain any
untrue statement of a material fact or omit to state any material fact
necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading.

 

The opinions contained in this
letter merely constitute expressions of our professional judgment regarding the
matters of law addressed herein.  We are
expressing no opinion regarding, nor are we endorsing or adopting as our own
opinion, any particular statement of opinion or belief attributed to Sulzer
Orthopedics or the Parent in the Offering Circular.   We are expressing no opinion regarding, nor are we predicting or
guaranteeing, the outcome of any litigation. 
Further, we are expressing no opinion regarding the effect of the
outcome, whether financial or otherwise, of any litigation on Sulzer
Orthopedics, the Parent or the Offered Shares.

 

We have not considered and
express no opinion as to the laws of any jurisdiction other than the laws of
the United States of America.

 

This opinion letter is rendered
to you in connection with the above described transactions and we specifically
do not render any opinions pertaining to any matter not expressly stated
herein.  This opinion letter may not be
relied upon by you for any other purpose, or relied upon by, or furnished to,
any other person, firm or corporation without our prior written consent.

 

Very truly
yours,

 

 

Shook, Hardy
& Bacon L.L.P.

 

83

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