Document:

exv10w14

Exhibit 10.14

EXECUTION VERSION

RBC Capital Markets, LLC

as agent for Royal Bank of Canada

3 World Financial Center — 8th Floor

200 Vesey Street

New York, NY 10006-1404

Attn:     Andrew Apthorpe

Telephone: 212-858-7000

Facsimile: 212-428-3053

June 14, 2011

			
	To:	 	Integra LifeSciences Holdings Corporation

311 Enterprise Drive

Plainsboro, NJ 08536

Attention: Treasurer

Telephone No.: (609) 275-0500

Facsimile No.: (609) 750-4264

			
	Re:	 	Additional Warrants

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

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

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

1. This Confirmation evidences a complete and binding agreement between Dealer and Company as to
the terms of the Transaction to which this Confirmation relates. This Confirmation shall
supplement, form a part of, and be subject to an agreement in the form of the 2002 ISDA Master
Agreement (the “Agreement”) as if Dealer and Company had executed an agreement in such form (but
without any Schedule except for (i) the election of the laws of the State of New York as the
governing law (without reference to choice of law doctrine); (ii) the election that the “Cross
Default” provisions of Section 5(a)(vi) of the Agreement shall apply to both parties, provided that
(a) the phrase “or becoming capable at such time of being declared” shall be deleted from clause
(1) of such Section 5(a)(vi); (b) the following language shall be added to the end thereof:
“Notwithstanding the foregoing, a default under subsection (2) hereof shall not constitute an Event
of Default if (i) the default was caused solely by error or omission of an administrative or
operational nature; (ii) funds were available to enable the party to make the payment when due; and
(iii) the payment is made within two Local Business Days of such party’s receipt of written notice
of its failure to pay.”; (c) “Specified Indebtedness” will have the meaning specified in Section
14 of the Agreement, except that such term shall not include obligations in respect of deposits
received in the ordinary course of a party’s banking business; and (d) “Threshold Amount” means
in relation to Dealer, three percent (3%) of shareholders’ equity of Dealer and in relation to
Company, USD 25 million.)) on the Trade Date. In the event of any inconsistency between provisions
of that Agreement and this Confirmation, this Confirmation will prevail for the purpose of the
Transaction to which this Confirmation relates. The parties hereby agree that no Transaction other
than the Transaction to which this Confirmation relates shall be governed by the Agreement.

 

 

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

     General Terms.

	 	 	 

	Trade Date:

	 	June 14, 2011
	 
	 	 
	Effective Date:

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

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

	 	European
	 
	 	 
	Seller:

	 	Company
	 
	 	 
	Buyer:

	 	Dealer
	 
	 	 
	Shares:

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

	 	208,910. For the avoidance of doubt, the Number of Warrants shall
be reduced by any Warrants exercised or deemed exercised hereunder. In no event
will the Number of Warrants be less than zero.
	 
	 	 
	Warrant Entitlement:

	 	One Share per Warrant
	 
	 	 
	Strike Price:

	 	USD 70.05.
	 
	 	 
	 

	 	Notwithstanding anything to the contrary in the
Agreement, this Confirmation or the Equity
Definitions, in no event shall the Strike Price
be subject to adjustment to the extent that,
after giving effect to such adjustment, the
Strike Price would be less than USD 46.60, except for any adjustment
pursuant to the terms of this Confirmation and
the Equity Definitions in connection with stock
splits or similar changes to Company’s
capitalization.
	 
	 	 
	Premium:

	 	USD 1,484,400
	 
	 	 
	Premium Payment Date:

	 	June 15, 2011
	 
	 	 
	Exchange:

	 	The NASDAQ Global Select Market
	 
	 	 
	Related Exchange(s):

	 	All Exchanges

     Procedures for Exercise.

2

 

	 	 	 

	Expiration Time:

	 	The Valuation Time
	 
	 	 
	Expiration Dates:

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

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

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

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

3

 

	 	 	 

	 

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

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

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

     Valuation Terms.

	 	 	 

	Valuation Time:

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

	 	Each Exercise Date.

     Settlement Terms.

	 	 	 

	Settlement Method Election:

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

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

	 	(iii) Company’s election of Cash Settlement shall
be deemed to be a representation and warranty by
Company that on the date of such election (A)
Company is not in possession of any material
non-public information regarding Company or the
Shares, (B) Company is electing Cash Settlement
in good faith and not as part of a plan or scheme
to evade compliance with the federal securities
laws, and (C) the assets of Company at their fair
valuation exceed the liabilities of Company
(including contingent liabilities), the capital
of Company is adequate to conduct the business of
Company, and Company has the ability to pay its
debts and obligations as such debts mature and
does not intend to, or does not believe that it
will, incur debt beyond its ability to pay as
such debts mature; (iv) the same election of
settlement method and Cash Percentage shall apply
to all Expiration Dates hereunder ;
(v) if Company elects Cash Settlement and
specifies a Cash Percentage that is less than or
equal to 0%

4

 

	 	 	 

	 

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

	 	Company
	 
	 	 
	Settlement Method Election Date:

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

	 	Net Share Settlement
	 
	 	 
	Cash Percentage:

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

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

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

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

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

	 	If Cash Settlement is applicable, then, on the relevant
Settlement Date, Company shall (i) pay to Dealer an amount of cash in USD equal to
sum of (A) the product of (x) the Cash Percentage and (y) the Net Share Settlement
Amount for such Settlement Date and (B) the Fractional Share

5

 

	 	 	 

	 

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

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

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

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

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

3. Additional Terms applicable to the Transaction.

     Adjustments applicable to the Transaction:

	 	 	 

	Method of Adjustment:

	 	Calculation Agent Adjustment. For the avoidance of doubt, in
making any adjustments under the Equity Definitions, the Calculation Agent may make
adjustments, if any, to any one or more of the Strike Price, the Number of
Warrants, the Daily Number of Warrants and the Warrant Entitlement.
Notwithstanding the foregoing, any cash dividends or distributions on the Shares,
whether or not extraordinary, shall be governed by Section 9(f) of this
Confirmation in lieu of Article 10 or Section 11.2(c) of the Equity Definitions.

6

 

     Extraordinary Events applicable to the Transaction:

	 	 	 

	New Shares:

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

     Consequence of Merger Events:

	 	 	 

	Merger Event:

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

	 	Modified Calculation Agent Adjustment
	 
	 	 
	     Share-for-Other:

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

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

     Consequence of Tender Offers:

	 	 	 

	Tender Offer:

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

	 	Modified Calculation Agent Adjustment
	 
	 	 
	     Share-for-Other:

	 	Modified Calculation Agent Adjustment
	 
	 	 
	     Share-for-Combined:

	 	Modified Calculation Agent Adjustment

	 	 	 

	Announcement Event:

	 	If an Announcement Date occurs in respect of a Merger Event or Tender
Offer (such occurrence or any subsequent announcement relating to the same subject
matter, an “Announcement Event”), then on the earliest of the Expiration Date, Early
Termination Date or other

7

 

	 	 	 

	 

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

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

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

8

 

	 	 	 

	     Change in Law:

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

	 	Not Applicable
	 
	 	 
	     Insolvency Filing:

	 	Applicable
	 
	 	 
	     Hedging Disruption:

	 	Applicable; provided that:

	 	(i)	 	Section 12.9(a)(v) of the Equity
Definitions is hereby amended by inserting
the following two phrases at the end of such
Section;
	 
	 	 	 	“For the avoidance of doubt, the term
“equity price risk” shall be deemed to
include, but shall not be limited to, stock
price and volatility risk. And, for the
further avoidance of doubt, any such
transactions or assets referred to in
phrases (A) or (B) above must be available
on commercially reasonable pricing terms.”;
and
	 
	 	(ii)	 	Section 12.9(b)(iii) of the Equity
Definitions is hereby amended by inserting
in the third line thereof, after the words
“to terminate the Transaction”, the words
“or a portion of the Transaction affected by
such Hedging Disruption”.

	 	 	 

	     Increased Cost of Hedging:

	 	Applicable
	 
	 	 
	     Loss of Stock Borrow:

	 	Applicable
	 
	 	 
	          Maximum Stock Loan Rate:

	 	200 basis points
	 
	 	 
	     Increased Cost of Stock Borrow:

	 	Applicable
	 
	 	 
	          Initial Stock Loan Rate:

	 	25 basis points
	 
	 	 
	     Hedging Party:

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

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

	 	Applicable
	 
	 	 
	Agreements and Acknowledgments Regarding Hedging Activities:

	 	Applicable
	 
	 	 
	Additional Acknowledgments:

	 	Applicable

	 	 	 

	4. Calculation Agent.

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

9

 

5. Account Details.

	 	(a)	 	Account for payments to Company:

Bank Name: Wells Fargo Bank

ABA #: 121000248

Beneficiary: First Clearing, LLC

Account #: 4122023377

FFC Account Name: Integra LifeSciences Holdings Corp

FFC Account Number: 8595-0713

Account for delivery of Shares from Company:

American Stock Transfer & Trust Co LLC

Transfer Agent # 2941

Account # 10249

	 	(b)	 	Account for payments to Dealer:

Royal Bank of Canada

JP Morgan Chase NY (CHASUS33)

ABA # 021-000-021

Royal Bank of Canada (ROYCUS3X)

A/C # 920-1-033363

Ref: US Transit

A/C 204-1499

Account for delivery of Shares to Dealer:

To be provided by Dealer.

6. Offices.

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

RBC Capital Markets, LLC

as agent for Royal Bank of Canada

3 World Financial Center — 8th Floor

200 Vesey Street

New York, New York 10281-8098

Telephone:     212-858-7000

7. Notices.

	 	(a)	 	Address for notices or communications to Company:

10

 

Integra LifeSciences Holdings Corporation

311 Enterprise Drive

Plainsboro, NJ 08536

Attention: Treasurer

Telephone No.: (609) 275-0500

Facsimile No.: (609) 750-4264

	 	(b)	 	Address for notices or communications to Dealer:

Trade Affirmations and Settlements:

RBC Capital Markets, LLC

Attn: Structured Derivatives Documentation

Three World Financial Center

200 Vesey Street

New York, NY 10006-1404 USA

Facsimile Number:     +1-212-858-7033

e-Mail Address:      geda@rbccm.com

Trade Confirmations:

RBC Capital Markets, LLC

Attn: Structured Derivatives Documentation

Three World Financial Center

200 Vesey Street

New York, NY 10281-1021 USA

Facsimile Number:     +1-212-428-3053

e-Mail Address:      SDD@rbccm.com

8. Representations and Warranties of Company.

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

	 	(a)	 	Company has all necessary corporate power and authority to execute, deliver and
perform its obligations in respect of the Transaction; such execution, delivery and
performance have been duly authorized by all necessary corporate action on Company’s
part; and this Confirmation has been duly and validly executed and delivered by Company
and constitutes its valid and binding obligation, enforceable against Company in
accordance with its terms, subject to applicable bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium and similar laws affecting creditors’ rights and
remedies generally, and subject, as to enforceability, to general principles of equity,
including principles of commercial reasonableness, good faith and fair dealing
(regardless of whether enforcement is sought in a proceeding at law or in equity) and
except that rights to indemnification and contribution hereunder may be limited by
federal or state securities laws or public policy relating thereto.
	 
	 	(b)	 	Neither the execution and delivery of this Confirmation nor the incurrence or
performance of obligations of Company hereunder will conflict with or result in a
breach of the certificate of incorporation or by-laws (or any equivalent documents) of
Company, or any applicable law or regulation, or any order, writ, injunction or decree
of any court or governmental authority or agency, or any agreement or instrument to
which Company or any of its subsidiaries is a party or by which Company or any of its
subsidiaries is bound or to which Company or any of its

11

 

	 	 	 	subsidiaries is subject, or constitute a default under, or result in the creation of
any lien under, any such agreement or instrument.

	 	(c)	 	No consent, approval, authorization, or order of, or filing with, any
governmental agency or body or any court is required in connection with the execution,
delivery or performance by Company of this Confirmation, except such as have been
obtained or made and such as may be required under the Securities Act of 1933, as
amended (the “Securities Act”) or state securities laws.
	 
	 	(d)	 	A number of Shares equal to the Maximum Number of Shares (as defined below)
(the “Warrant Shares”) have been reserved for issuance by all required corporate action
of Company. The Warrant Shares have been duly authorized and, when delivered against
payment therefor (which may include Net Share Settlement in lieu of cash) and otherwise
as contemplated by the terms of the Warrants following the exercise of the Warrants in
accordance with the terms and conditions of the Warrants, will be validly issued,
fully-paid and non-assessable, and the issuance of the Warrant Shares will not be
subject to any preemptive or similar rights.
	 
	 	(e)	 	Company is not and will not be required to register as an “investment company”
as such term is defined in the Investment Company Act of 1940, as amended.
	 
	 	(f)	 	Company is an “eligible contract participant” (as such term is defined in
Section 1a(12) of the Commodity Exchange Act, as amended, other than a person that is
an eligible contract participant under Section 1a(12)(C) of the Commodity Exchange
Act).
	 
	 	(g)	 	Each of Company and its officers and directors is not, on the date hereof, in
possession of any material non-public information with respect to Company or the
Shares.

9. Other Provisions.

	 	(a)	 	Opinions. Company shall deliver to Dealer an opinion of counsel, dated
as of the Trade Date, with respect to the matters set forth in Sections 8(a) through
(d) of this Confirmation. Delivery of such opinion to Dealer shall be a condition
precedent for the purpose of Section 2(a)(iii) of the Agreement with respect to each
obligation of Dealer under Section 2(a)(i) of the Agreement.
	 
	 	(b)	 	Repurchase Notices. Company shall, on any day on which Company effects
any repurchase of Shares, promptly give Dealer a written notice of such repurchase (a
“Repurchase Notice”) on such day if following such repurchase, the number of
outstanding Shares on such day, subject to any adjustments provided herein, is (i) less
than 26,253,195 (in the case of the first such notice) or (ii) thereafter more than
1,988,648 less than the number of Shares included in the immediately preceding
Repurchase Notice. Company agrees to indemnify and hold harmless Dealer and its
affiliates and their respective officers, directors, employees, affiliates, advisors,
agents and controlling persons (each, an “Indemnified Person”) from and against any and
all losses (including losses relating to Dealer’s hedging activities as a consequence
of becoming, or of the risk of becoming, a Section 16 “insider”, including without
limitation, any forbearance from hedging activities or cessation of hedging activities
and any losses in connection therewith with respect to the Transaction), claims,
damages, judgments, liabilities and expenses (including reasonable attorney’s fees),
joint or several, that an Indemnified Person actually may become subject to, as a
result of Company’s failure to provide Dealer with a Repurchase Notice on the day and
in the manner specified in this paragraph, and to reimburse, within 30 days, upon
written request, each of such Indemnified Persons for any reasonable legal or other
expenses incurred in connection with investigating, preparing for, providing testimony
or other evidence in connection with or defending any of the foregoing. If any suit,
action, proceeding (including any governmental or regulatory investigation), claim or
demand shall be brought or asserted against the Indemnified Person, such Indemnified
Person shall promptly notify Company in writing, and Company, upon request of the
Indemnified Person, shall retain counsel reasonably satisfactory to the Indemnified
Person to represent the Indemnified Person and any others Company may designate in such
proceeding and shall pay the fees and expenses of such counsel related to such
proceeding. Company shall not be liable for any settlement of any proceeding effected
without its

12

 

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

	 	(c)	 	Regulation M. Company is not on the Trade Date engaged in a
distribution, as such term is used in Regulation M under the Securities Exchange Act of
1934, as amended (the “Exchange Act”), of any securities of Company, other than a
distribution meeting the requirements of the exception set forth in Rules 101(b)(10)
and 102(b)(7) of Regulation M. Company shall not, until the second Scheduled Trading
Day immediately following the Effective Date, engage in any such distribution.
	 
	 	(d)	 	No Manipulation. Company is not entering into the Transaction to
create actual or apparent trading activity in the Shares (or any security convertible
into or exchangeable for the Shares) or to raise or depress or otherwise manipulate the
price of the Shares (or any security convertible into or exchangeable for the Shares)
or otherwise in violation of the Exchange Act.
	 
	 	(e)	 	Transfer or Assignment. Company may not transfer any of its rights or
obligations under the Transaction without the prior written consent of Dealer. Dealer
may, without Company’s consent, transfer or assign all or any part of its rights or
obligations under the Transaction to any third party. If at any time at which (A) the
Section 16 Percentage exceeds 7.5%, (B) the Warrant Equity Percentage exceeds 14.5%, or
(C) the Share Amount exceeds the Applicable Share Limit (if any applies) (any such
condition described in clauses (A), (B) or (C), an “Excess Ownership Position”), Dealer
is unable after using its commercially reasonable efforts to effect a transfer or
assignment of Warrants to a third party on pricing terms reasonably acceptable to
Dealer and within a time period reasonably acceptable to Dealer such that no Excess
Ownership Position exists, then Dealer may designate any Exchange Business Day as an
Early Termination Date with respect to a portion of the Transaction (the “Terminated
Portion”), such that following such partial termination no Excess Ownership Position
exists. In the event that Dealer so designates an Early Termination Date with respect
to a Terminated Portion, a payment shall be made pursuant to Section 6 of the Agreement
as if (1) an Early Termination Date had been designated in respect of a Transaction
having terms identical to the Transaction and a Number of Warrants equal to the number
of Warrants underlying the Terminated Portion, (2) Company were the sole Affected Party
with respect to such partial termination and (3) the Terminated Portion were the sole
Affected Transaction (and, for the avoidance of doubt, the provisions of Section 9(j)
shall apply to any amount that is payable by Company to Dealer pursuant to this
sentence as if Company was not the Affected Party). The “Section 16 Percentage” as of
any day is the fraction, expressed as a percentage, (A) the numerator of which is the
number of Shares that Dealer and each person subject to aggregation of Shares with
Dealer under Section 13 or Section 16 of the Exchange Act and rules promulgated
thereunder directly or indirectly beneficially own (as defined under Section 13 or
Section 16 of the Exchange Act and rules promulgated thereunder) and (B) the
denominator of which is the number of Shares outstanding. The “Warrant Equity
Percentage” as of any day is the fraction, expressed as a percentage, (A) the numerator
of which is the sum of (1) the product of the Number of Warrants and the Warrant
Entitlement and (2) the aggregate number of Shares underlying any other warrants
purchased by Dealer from Company, and (B) the denominator of

13

 

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

	 	(f)	 	Dividends. If at any time during the period from and including the
Effective Date, to and including the last Expiration Date, an ex-dividend date for a
cash dividend occurs with respect to the Shares (an “Ex-Dividend Date”), then the
Calculation Agent will adjust any of the Strike Price, Number of Warrants and/or Daily
Number of Warrants to preserve the fair value of the Warrants to Dealer after taking
into account such dividend.
	 
	 	(g)	 	Disclosure of Agency Relationship. Dealer has appointed, as its agent,
its indirect wholly-owned subsidiary, RBC Capital Markets, LLC (“RBCCM”), for purposes
of conducting, on Dealer’s behalf, a business in privately negotiated transactions in
options and other derivatives. Company hereby is advised that Dealer, the principal
and stated counterparty in such transactions, duly has authorized RBCCM to market,
structure, negotiate, document, price, execute and hedge transactions in
over-the-counter derivative products.
	 
	 	(h)	 	Additional Provisions.

	 	(i)	 	Amendments to the Equity Definitions:

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

14

 

	 	(D)	 	Section 12.6(a)(ii) of the Equity Definitions
is hereby amended by (1) deleting from the fourth line thereof the word
“or” after the word “official” and inserting a comma therefor, and (2)
deleting the semi-colon at the end of subsection (B) thereof and
inserting the following words therefor “or (C) at Dealer’s option, the
occurrence of any of the events specified in Section 5(a)(vii) (1)
through (9) of the ISDA Master Agreement with respect to that Issuer.”
	 
	 	(E)	 	Section 12.9(b)(iv) of the Equity Definitions
is hereby amended by:

	 	(x)	 	deleting (1) subsection (A) in
its entirety, (2) the phrase “or (B)” following subsection (A)
and (3) the phrase “in each case” in subsection (B); and
	 
	 	(y)	 	deleting the phrase “neither the
Non-Hedging Party nor the Lending Party lends Shares in the
amount of the Hedging Shares or” in the penultimate sentence.

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

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

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

	 	(A)	 	A “person” or “group” within the meaning of
Section 13(d) of the Exchange Act, other than Company, its subsidiaries
and its and their employee benefit plans, files a Schedule TO or any
schedule, form or report under the Exchange Act disclosing that such
person or group has become the “beneficial owner,” as defined in Rule
13d-3 under the Exchange Act, of the common equity of Company
representing more than 50% of the voting power of such common equity.
	 
	 	(B)	 	The consummation of (I) any recapitalization,
reclassification or change of the Shares (other than changes resulting
from a subdivision or combination) as a result of which the Shares
would be converted into, or exchanged for, stock, other securities,
other property or assets, (II) any share exchange, consolidation or
merger of Company pursuant to which the Shares will be converted into
cash, securities or other property, other than a merger of Company
solely for the purpose of changing Company’s jurisdiction of
incorporation, that results in a reclassification, conversion or
exchange of then outstanding Shares solely into shares of common stock
of the surviving entity, or (III) any sale, lease or other transfer in
one transaction or a series of transactions of all or substantially all
of the consolidated assets of Company and its subsidiaries, taken as a
whole, to any person other than one of Company’s subsidiaries;
provided, however, that a transaction described in clause (II) pursuant
to which one or more holders of Company’s common equity entitled to
vote generally in elections of directors immediately prior to such
transaction have the entitlement to exercise, directly

15

 

	 	 	 	or indirectly, 50% or more of the total voting power of all classes
of Company’s common equity entitled to vote generally in elections of
directors of the continuing or surviving person immediately after
giving effect to such transaction shall not constitute an Additional
Termination Event pursuant to this clause (B).

	 	(C)	 	Default by Company or any subsidiary of Company
in the payment when due, after the expiration of any applicable grace
period, of principal of, or premium, if any, or interest on, recourse
indebtedness for money borrowed in the aggregate principal amount then
outstanding of $25.0 million or more, or acceleration of Company’s or
any subsidiary of Company’s recourse indebtedness for money borrowed in
the aggregate principal amount of $25.0 million or more so that it
becomes due and payable before the date on which it would otherwise
have become due and payable, if such default is not cured or waived, or
such acceleration is not rescinded, as the case may be.
	 
	 	(D)	 	A final judgment for the payment of $25.0
million or more (excluding any amounts covered by insurance) rendered
against Company or any of its subsidiaries, which judgment is not
discharged or stayed within 60 days after (I) the date on which the
right to appeal thereof has expired if no such appeal has commenced, or
(II) the date on which all rights to appeal have been extinguished.
	 
	 	(E)	 	Dealer, despite using commercially reasonable
efforts, is unable or reasonably determines that it is impractical or
illegal, to hedge its exposure with respect to the Transaction in the
public market without registration under the Securities Act or as a
result of any legal, regulatory or self-regulatory requirements or
related policies and procedures (whether or not such requirements,
policies or procedures are imposed by law or have been voluntarily
adopted by Dealer).

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

	 	(i)	 	No Collateral or Set-off. Notwithstanding any provision of the
Agreement or any other agreement between the parties to the contrary, the obligations
of Company hereunder are not secured by any collateral. Each party waives any and all
rights it may have to set off obligations arising under the Agreement and the
Transaction against other obligations between the parties, whether arising under any
other agreement, applicable law or otherwise.
	 
	 	(j)	 	Alternative Calculations and Payment on Early Termination and on Certain
Extraordinary Events. If, in respect of the Transaction, an amount is payable by
Company to Dealer, (A) pursuant to Section 12.7 or Section 12.9 of the Equity
Definitions or (B) pursuant to Section 6(d)(ii) of the Agreement (any such amount, a
“Payment Obligation”), Company shall have the right, in its sole discretion, to satisfy
the Payment Obligation by the Share Termination Alternative (as defined below) (except
that Company shall not have the right to make such an election in the event of (I) a
Nationalization, Insolvency, Merger Event or Tender Offer in which the consideration to
be paid to holders of Shares consists solely of cash, (II) a Merger Event or Tender
Offer that is within Company’s control, or (III) an Event of Default in which Company
is the Defaulting Party or a Termination Event in which Company is the Affected Party,
other than an

16

 

	Event of Default of the type described in Section 5(a)(iii), (v), (vi), (vii) or
(viii) of the Agreement or a Termination Event of the type described in Section 5(b)
of the Agreement, in each case that resulted from an event or events outside
Company’s control) and shall give irrevocable telephonic notice to Dealer, confirmed
in writing within one Scheduled Trading Day, no later than 5:00 p.m. (New York City
time) on the Merger Date, Tender Offer Date, Announcement Date (in the case of a
Nationalization, Insolvency or Delisting), Early Termination Date or date of
cancellation, as applicable; provided that if Company does not validly elect to
satisfy the Payment Obligation by the Share Termination Alternative, Dealer shall
have the right to require Company to satisfy its Payment Obligation by the Share
Termination Alternative.

	 	 	 

	Share Termination Alternative:

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

Property:

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

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

	 	In the case of a Termination Event,
Event of Default Additional Disruption Event or Delisting, one Share or, in the
case of Nationalization, Insolvency, Tender Offer or Merger

17

 

	 	 	 

	 

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

	 	Inapplicable
	 
	 	 
	Other applicable provisions:

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

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

	 	(i)	 	If Company elects to settle the Transaction pursuant to this
clause (i) (a “Private Placement Settlement”), then delivery of Restricted
Shares by Company shall be effected in accordance with customary private
placement procedures for placements of equity securities of substantially
similar size reasonably acceptable to Dealer; provided that Company may not
elect a Private Placement Settlement if, on the date of its election, it has
taken, or caused to be taken, any action that would make unavailable either the
exemption pursuant to Section 4(2) of the Securities Act for the sale by
Company to Dealer (or any affiliate designated by Dealer) of the Restricted
Shares or the exemption pursuant to Section 4(1) or Section 4(3) of the
Securities Act for resales of the Restricted Shares by Dealer (or any such
affiliate of Dealer). The Private Placement Settlement of such Restricted
Shares shall include customary representations, covenants, blue sky and other
governmental filings and/or registrations, indemnities to Dealer, due diligence
rights (for Dealer or any designated buyer of the Restricted Shares by Dealer),
opinions and certificates, and such other documentation as is customary for
private placements of equity securities of substantially similar size, all
reasonably acceptable to Dealer. In the case of a Private Placement
Settlement, Dealer shall determine the appropriate discount to the Share
Termination Unit Price (in the case of settlement of Share Termination

18

 

	 	 	 	Delivery Units pursuant to Section 9(j) above) or any Settlement Price (in
the case of settlement of Shares pursuant to Section 2 above) applicable to
such Restricted Shares in a commercially reasonable manner and appropriately
adjust the number of such Restricted Shares to be delivered to Dealer
hereunder. Notwithstanding the Agreement or this Confirmation, the date of
delivery of such Restricted Shares shall be the Exchange Business Day
following notice by Dealer to Company, of such applicable discount and the
number of Restricted Shares to be delivered pursuant to this clause (i).
For the avoidance of doubt, delivery of Restricted Shares shall be due as
set forth in the previous sentence and not be due on the Share Termination
Payment Date (in the case of settlement of Share Termination Delivery Units
pursuant to Section 9(j) above) or on the Settlement Date for such
Restricted Shares (in the case of settlement in Shares pursuant to Section 2
above).

	 	(ii)	 	If Company elects to settle the Transaction pursuant to this
clause (ii) (a “Registration Settlement”), then Company shall promptly (but in
any event no later than the beginning of the Resale Period) file and use its
reasonable best efforts to make effective under the Securities Act a
registration statement or supplement or amend an outstanding registration
statement in form and substance reasonably satisfactory to Dealer, to cover the
resale of such Restricted Shares in accordance with customary resale
registration procedures, including covenants, conditions, representations,
underwriting discounts (if applicable), commissions (if applicable),
indemnities due diligence rights, opinions and certificates, and such other
documentation as is customary in underwriting agreements for equity resales of
substantially similar size, all reasonably acceptable to Dealer. If Dealer, in
its reasonable discretion, is not satisfied with such procedures and
documentation Private Placement Settlement shall apply. If Dealer is satisfied
with such procedures and documentation, it shall sell the Restricted Shares
pursuant to such registration statement during a period (the “Resale Period”)
commencing on the Exchange Business Day following delivery of such Restricted
Shares (which, for the avoidance of doubt, shall be (x) the Share Termination
Payment Date in case of settlement in Share Termination Delivery Units pursuant
to Section 9(j) above or (y) the Settlement Date in respect of the final
Expiration Date for all Daily Number of Warrants) and ending on the earliest of
(i) the Exchange Business Day on which Dealer completes the sale of all
Restricted Shares or, in the case of settlement of Share Termination Delivery
Units, a sufficient number of Restricted Shares so that the realized net
proceeds of such sales equals or exceeds the Payment Obligation (as defined
above), (ii) the date upon which all Restricted Shares have been sold or
transferred pursuant to Rule 144 (or similar provisions then in force) or Rule
145(d)(2) (or any similar provision then in force) under the Securities Act and
(iii) the date upon which all Restricted Shares may be sold or transferred by a
non-affiliate pursuant to Rule 144 (or any similar provision then in force) or
Rule 145(d)(2) (or any similar provision then in force) under the Securities
Act. If the Payment Obligation exceeds the realized net proceeds from such
resale, Company shall transfer to Dealer by the open of the regular trading
session on the Exchange on the Exchange Trading Day immediately following the
last day of the Resale Period the amount of such excess (the “Additional
Amount”) in cash or in a number of Shares (“Make-whole Shares”) in an amount
that, based on the Settlement Price on the last day of the Resale Period (as if
such day was the “Valuation Date” for purposes of computing such Settlement
Price), has a dollar value equal to the Additional Amount. The Resale Period
shall continue to enable the sale of the Make-whole Shares. If Company elects
to pay the Additional Amount in Shares, the requirements and provisions for
Registration Settlement shall apply. This provision shall be applied
successively until the Additional Amount is equal to zero. In no event shall
Company deliver a number of Restricted Shares greater than the Maximum Number
of Shares.
	 
	 	(iii)	 	Without limiting the generality of the foregoing, Company
agrees that any Restricted Shares delivered to Dealer, as purchaser of such
Restricted Shares, (A) may be transferred by and among Dealer and its
affiliates and Company shall effect such transfer without any further action by
Dealer and (B) after the period of 6 months from the Trade

19

 

	 	 	 	Date (or 1 year from the Trade Date if, at such time, informational
requirements of Rule 144(c) under the Securities Act are not satisfied with
respect to Company) has elapsed after any Settlement Date or Share
Termination Payment Date, as applicable, for such Restricted Shares, Company
shall promptly remove, or cause the transfer agent for such Restricted
Shares to remove, any legends referring to any such restrictions or
requirements from such Restricted Shares upon request by Dealer (or such
affiliate of Dealer) to Company or such transfer agent, without any
requirement for the delivery of any certificate, consent, agreement, opinion
of counsel, notice or any other document, any transfer tax stamps or payment
of any other amount or any other action by Dealer (or such affiliate of
Dealer).

	 	(iv)	 	If the Private Placement Settlement or the Registration
Settlement shall not be effected as set forth in clauses (i) or (ii), as
applicable, then failure to effect such Private Placement Settlement or such
Registration Settlement shall constitute an Event of Default with respect to
which Company shall be the Defaulting Party.

	 	(l)	 	Limit on Beneficial Ownership. Notwithstanding any other provisions
hereof, Dealer may not exercise any Warrant hereunder or be entitled to take delivery
of any Shares deliverable hereunder, and Automatic Exercise shall not apply with
respect to any Warrant hereunder, to the extent (but only to the extent) that, after
such receipt of any Shares upon the exercise of such Warrant or otherwise hereunder and
after taking into account any Shares deliverable to Dealer under the letter agreement
dated June 9, 2011 between Dealer and Company regarding Base Warrants (the “Base
Warrant Confirmation”), (i) the Section 16 Percentage would exceed 7.5%, or (ii) the
Share Amount would exceed the Applicable Share Limit. Any purported delivery hereunder
shall be void and have no effect to the extent (but only to the extent) that, after
such delivery and after taking into account any Shares deliverable to Dealer under the
Base Warrant Confirmation, (i) the Section 16 Percentage would exceed 7.5%, or (ii) the
Share Amount would exceed the Applicable Share Limit. If any delivery owed to Dealer
hereunder is not made, in whole or in part, as a result of this provision, Company’s
obligation to make such delivery shall not be extinguished and Company shall make such
delivery as promptly as practicable after, but in no event later than one Business Day
after, Dealer gives notice to Company that, after such delivery, (i) the Section 16
Percentage would not exceed 7.5%, and (ii) the Share Amount would not exceed the
Applicable Share Limit.
	 
	 	(m)	 	Share Deliveries. Company acknowledges and agrees that, to the extent
the holder of this Warrant is not then an affiliate and has not been an affiliate for
90 days (it being understood that Dealer will not be considered an affiliate under this
paragraph solely by reason of its receipt of Shares pursuant to the Transaction), and
otherwise satisfies all holding period and other requirements of Rule 144 of the
Securities Act applicable to it, any delivery of Shares or Share Termination Delivery
Property hereunder at any time after 6 months from the Trade Date (or 1 year from the
Trade Date if, at such time, informational requirements of Rule 144(c) are not
satisfied with respect to Company) shall be eligible for resale under Rule 144 of the
Securities Act and Company agrees to promptly remove, or cause the transfer agent for
such Shares or Share Termination Delivery Property, to remove, any legends referring to
any restrictions on resale under the Securities Act from the Shares or Share
Termination Delivery Property. Company further agrees that any delivery of Shares or
Share Termination Delivery Property prior to the date that is 6 months from the Trade
Date (or 1 year from the Trade Date if, at such time, informational requirements of
Rule 144(c) are not satisfied with respect to Company), may be transferred by and among
Dealer and its affiliates and Company shall effect such transfer without any further
action by Dealer. Notwithstanding anything to the contrary herein, Company agrees that
any delivery of Shares or Share Termination Delivery Property shall be effected by
book-entry transfer through the facilities of DTC, or any successor depositary, if at
the time of delivery, such class of Shares or class of Share Termination Delivery
Property is in book-entry form at DTC or such successor depositary. Notwithstanding
anything to the contrary herein, to the extent the provisions of Rule 144 of the
Securities Act or any successor rule are amended, or the applicable interpretation
thereof by the Securities and Exchange Commission or any court change after the Trade
Date, the agreements of Company herein shall be deemed modified to the extent
necessary, in the opinion of

20

 

	 	 	 	outside counsel of Company, to comply with Rule 144 of the Securities Act, as in
effect at the time of delivery of the relevant Shares or Share Termination Delivery
Property.

	 	(n)	 	Waiver of Jury Trial. Each party waives, to the fullest extent
permitted by applicable law, any right it may have to a trial by jury in respect of any
suit, action or proceeding relating to the Transaction. Each party (i) certifies that
no representative, agent or attorney of the other party has represented, expressly or
otherwise, that such other party would not, in the event of such a suit, action or
proceeding, seek to enforce the foregoing waiver and (ii) acknowledges that it and the
other party have been induced to enter into the Transaction, as applicable, by, among
other things, the mutual waivers and certifications provided herein.
	 
	 	(o)	 	Tax Disclosure. Effective from the date of commencement of discussions
concerning the Transaction, Company and each of its employees, representatives, or
other agents may disclose to any and all persons, without limitation of any kind, the
tax treatment and tax structure of the Transaction and all materials of any kind
(including opinions or other tax analyses) that are provided to Company relating to
such tax treatment and tax structure.
	 
	 	(p)	 	Maximum Share Delivery.

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

	 	(q)	 	Right to Extend. Dealer may postpone, in whole or in part, any
Expiration Date or any other date of valuation or delivery with respect to some or all
of the relevant Warrants (in which event the Calculation Agent shall make appropriate
adjustments to the Daily Number of Warrants with respect to one or more Expiration
Dates) if Dealer determines, in its commercially reasonable judgment based on the
advice of counsel, that such extension is reasonably necessary or advisable to preserve
Dealer’s hedging or hedge unwind activity hereunder in light of existing liquidity
conditions or to enable Dealer to effect purchases of Shares in connection with its
hedging, hedge unwind or settlement activity hereunder in a manner that would, if
Dealer were Issuer or an affiliated purchaser of Issuer, be in compliance with
applicable legal, regulatory or self-regulatory requirements, or with related policies
and procedures applicable to Dealer.

21

 

	 	(r)	 	Status of Claims in Bankruptcy. Dealer acknowledges and agrees that
this Confirmation is not intended to convey to Dealer rights against Company with
respect to the Transaction that are senior to the claims of common stockholders of
Company in any United States bankruptcy proceedings of Company; provided that nothing
herein shall limit or shall be deemed to limit Dealer’s right to pursue remedies in the
event of a breach by Company of its obligations and agreements with respect to the
Transaction; provided, further, that nothing herein shall limit or shall be deemed to
limit Dealer’s rights in respect of any transactions other than the Transaction.
	 
	 	(s)	 	Securities Contract; Swap Agreement. The parties hereto intend for (i)
the Transaction to be a “securities contract” and a “swap agreement” as defined in the
Bankruptcy Code (Title 11 of the United States Code) (the “Bankruptcy Code”), and the
parties hereto to be entitled to the protections afforded by, among other Sections,
Sections 362(b)(6), 362(b)(17), 546(e), 546(g), 555 and 560 of the Bankruptcy Code,
(ii) a party’s right to liquidate the Transaction and to exercise any other remedies
upon the occurrence of any Event of Default under the Agreement with respect to the
other party to constitute a “contractual right” as described in the Bankruptcy Code,
and (iii) each payment and delivery of cash, securities or other property hereunder to
constitute a “margin payment” or “settlement payment” and a “transfer” as defined in
the Bankruptcy Code.
	 
	 	(t)	 	Wall Street Transparency and Accountability Act. In connection with
Section 739 of the Wall Street Transparency and Accountability Act of 2010 (“WSTAA”),
the parties hereby agree that neither the enactment of WSTAA or any regulation under
the WSTAA, nor any requirement under WSTAA or an amendment made by WSTAA, shall limit
or otherwise impair either party’s otherwise applicable rights to terminate,
renegotiate, modify, amend or supplement this Confirmation or the Agreement, as
applicable, arising from a termination event, force majeure, illegality, increased
costs, regulatory change or similar event under this Confirmation, the Equity
Definitions incorporated herein, or the Agreement (including, but not limited to,
rights arising from Change in Law, Hedging Disruption, Increased Cost of Hedging, an
Excess Ownership Position, or Illegality (as defined in the Agreement)).
	 
	 	(u)	 	Early Unwind. In the event the sale of the “Option Securities” (as
defined in the Purchase Agreement) is not consummated with the Representatives for any
reason, or Company fails to deliver to Dealer opinions of counsel as required pursuant
to Section 9(a), in each case by 5:00 p.m. (New York City time) on the Premium Payment
Date, or such later date as agreed upon by the parties (the Premium Payment Date or
such later date the “Early Unwind Date”), the Transaction shall automatically terminate
(the “Early Unwind”), on the Early Unwind Date and (i) the Transaction and all of the
respective rights and obligations of Dealer and Company under the Transaction shall be
cancelled and terminated and (ii) each party shall be released and discharged by the
other party from and agrees not to make any claim against the other party with respect
to any obligations or liabilities of the other party arising out of and to be performed
in connection with the Transaction either prior to or after the Early Unwind Date;
provided that, other than in cases involving a breach of the Purchase Agreement by
Dealer, Company shall purchase from Dealer on the Early Unwind Date all Shares
purchased by Dealer or one or more of its affiliates in connection with the Transaction
at the then prevailing market price. Each of Dealer and Company represents and
acknowledges to the other that, subject to the proviso included in this Section 9(u),
upon an Early Unwind, all obligations with respect to the Transaction shall be deemed
fully and finally discharged.
	 
	 	(v)	 	Payment by Dealer. In the event that (i) an Early Termination Date
occurs or is designated with respect to the Transaction as a result of a Termination
Event or an Event of Default (other than an Event of Default arising under Section
5(a)(ii) or 5(a)(iv) of the Agreement) and, as a result, Dealer owes to Company an
amount calculated under Section 6(e) of the Agreement, or (ii) Dealer owes to Company,
pursuant to Section 12.7 or Section 12.9 of the Equity Definitions, an amount
calculated under Section 12.8 of the Equity Definitions, such amount shall be deemed to
be zero.

[Remainder of Page Intentionally Blank]

22

 

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

	 	 	 	 	 	 	 

	 	 	Very truly yours,
	 
	 	 	 	 	 	 
	 	 	 	 	RBC Capital Markets, LLC, as agent for Royal
	 	 	 	 	Bank of Canada
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Brian Ward
	 

	 	 	 	 	 	 
	 	 	 	 	Authorized Signatory
	 	 	 	 	Name: Brian Ward

	 	 	 	 	 

	Accepted and confirmed	 	 
	as of the Trade Date:	 	 
	 
	 	 	 	 
	Integra LifeSciences Holdings Corporation	 	 
	 
	 	 	 	 
	By:

	 	/s/
Nora Brennan	 	 
	 

	 	 	 	 
	Authorized Signatory	 	 
	Name: Nora Brennan	 	 

[RBC Additional Warrant Confirmation]

23exv10w15

Exhibit 10.15

EXECUTION VERSION

The Royal Bank of Scotland plc

c/o RBS Securities Inc.

600 Washington Blvd.

Stamford, CT 06901

June 14, 2011

			
	To:	 	Integra LifeSciences Holdings Corporation

311 Enterprise Drive

Plainsboro, NJ 08536

Attention: Treasurer

Telephone No.: (609) 275-0500

Facsimile No.: (609) 750-4264

Re: Additional Warrants

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

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

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

1. This Confirmation evidences a complete and binding agreement between Dealer and Company as to
the terms of the Transaction to which this Confirmation relates. This Confirmation shall
supplement, form a part of, and be subject to an agreement in the form of the 2002 ISDA Master
Agreement (the “Agreement”) as if Dealer and Company had executed an agreement in such form (but
without any Schedule except for (i) the election of the laws of the State of New York as the
governing law (without reference to choice of law doctrine); (ii) the election that the “Cross
Default” provisions of Section 5(a)(vi) of the Agreement shall apply to both parties, provided that
(a) the phrase “or becoming capable at such time of being declared” shall be deleted from clause
(1) of such Section 5(a)(vi); (b) the following language shall be added to the end thereof:
“Notwithstanding the foregoing, a default under subsection (2) hereof shall not constitute an Event
of Default if (i) the default was caused solely by error or omission of an administrative or
operational nature; (ii) funds were available to enable the party to make the payment when due; and
(iii) the payment is made within two Local Business Days of such party’s receipt of written notice
of its failure to pay.”; (c) “Specified Indebtedness” will have the meaning specified in Section
14 of the Agreement, except that such term shall not include obligations in respect of deposits
received in the ordinary course of a party’s banking business; and (d) “Threshold Amount” means
in relation to Dealer, three percent (3%) of shareholders’ equity of Dealer and in relation to
Company, USD 25 million.)) on the Trade Date. In the event of any inconsistency between provisions
of that Agreement and this Confirmation, this Confirmation will prevail for the purpose of the
Transaction to which this Confirmation relates. The parties hereby agree that no Transaction other
than the Transaction to which this Confirmation relates shall be governed by the Agreement.

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

 

     General Terms.

	 	 	 

	Trade Date:

	 	June 14, 2011
	 
	 	 
	Effective Date:

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

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

	 	European
	 
	 	 
	Seller:

	 	Company
	 
	 	 
	Buyer:

	 	Dealer
	 
	 	 
	Shares:

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

	 	104,455. For the avoidance of doubt, the Number of Warrants shall be reduced
by any Warrants exercised or deemed exercised hereunder. In no event will the
Number of Warrants be less than zero.
	 
	 	 
	Warrant Entitlement:

	 	One Share per Warrant
	 
	 	 
	Strike Price:

	 	USD 70.05.
	 
	 	 
	 

	 	Notwithstanding anything to the contrary in the Agreement, this Confirmation or
the Equity Definitions, in no event shall the Strike Price be subject to
adjustment to the extent that, after giving effect to such adjustment, the
Strike Price would be less than USD 46.60, except for any
adjustment pursuant to the terms of this Confirmation and the Equity
Definitions in connection with stock splits or similar changes to Company’s
capitalization.
	 
	 	 
	Premium:

	 	USD 742,200
	 
	 	 
	Premium Payment Date:

	 	June 15, 2011
	 
	 	 
	Exchange:

	 	The NASDAQ Global Select Market
	 
	 	 
	Related Exchange(s):

	 	All Exchanges

     Procedures for Exercise.

	 	 	 

	Expiration Time:

	 	The Valuation Time
	 
	 	 
	Expiration Dates:

	 	Each Scheduled Trading Day during the period from, and including, the First
Expiration Date to, but excluding, the

2

 

	 	 	 

	 

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

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

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

	 	Applicable; and means that for each Expiration Date, a number of Warrants equal
to the Daily Number of Warrants (as adjusted pursuant to the terms hereof) for
such Expiration Date will be deemed to be automatically exercised at the
Expiration Time on such Expiration Date.
	 
	 	 
	Market Disruption Event:

	 	Section 6.3(a)(ii) of the Equity Definitions is hereby amended by replacing
clauses (ii) and (iii) in their entirety

3

 

	 	 	 

	 

	 	with “(ii) an Exchange Disruption,
(iii) an Early Closure or (iv) a Regulatory Disruption; in each case that the
Calculation Agent determines is material.”
	 
	 	 
	Regulatory Disruption:

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

     Valuation Terms.

	 	 	 

	Valuation Time:

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

	 	Each Exercise Date.

     Settlement Terms.

	 	 	 

	Settlement Method Election:

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

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

	 	(iii) Company’s election of Cash Settlement shall be deemed to be a
representation and warranty by Company that on the date of such election (A)
Company is not in possession of any material non-public information regarding
Company or the Shares, (B) Company is electing Cash Settlement in good faith
and not as part of a plan or scheme to evade compliance with the federal
securities laws, and (C) the assets of Company at their fair valuation exceed
the liabilities of Company (including contingent liabilities), the capital of
Company is adequate to conduct the business of Company, and Company has the
ability to pay its debts and obligations as such debts mature and does not
intend to, or does not believe that it will, incur debt beyond its ability to
pay as such debts mature; (iv) the same election of settlement method and Cash
Percentage shall apply to all Expiration Dates hereunder ; (v) if
Company elects Cash Settlement and specifies a Cash Percentage that is less
than or equal to 0% or greater than 100%, then the notice delivered by Company
will be deemed to be ineffective and the Default Settlement Method will be
deemed applicable to such Transaction and (vi) Company may elect a Cash
Percentage only if no event of default has occurred and is continuing under any

4

 

	 	 	 

	 

	 	indebtedness of Company or its subsidiaries in an aggregate principal amount of
$100 million or more.
	 
	 	 
	Electing Party:

	 	Company
	 
	 	 
	Settlement Method Election Date:

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

	 	Net Share Settlement
	 
	 	 
	Cash Percentage:

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

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

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

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

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

	 	If Cash Settlement is applicable, then, on the relevant Settlement Date,
Company shall (i) pay to Dealer an amount of cash in USD equal to sum of (A)
the product of (x) the Cash Percentage and (y) the Net Share Settlement Amount
for such Settlement Date and (B) the Fractional Share Amount, if any, for such
Settlement Date and (ii) deliver to Dealer a number of Shares equal to the
Share Delivery Quantity for such Settlement Date to the account specified
hereto free of payment through the Clearance System. The provisions opposite
Net Share Settlement above shall apply

5

 

	 	 	 

	 

	 	to any Shares delivered pursuant to
clause (ii) of the immediately preceding sentence.
	 
	 	 
	Settlement Price:

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

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

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

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

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

	 	 	 

	Method of Adjustment:

	 	Calculation Agent Adjustment. For the avoidance of
doubt, in making any adjustments under the Equity
Definitions, the Calculation Agent may make adjustments,
if any, to any one or more of the Strike Price, the
Number of Warrants, the Daily Number of Warrants and the
Warrant Entitlement. Notwithstanding the foregoing, any
cash dividends or distributions on the Shares, whether or
not extraordinary, shall be governed by Section 9(f) of
this Confirmation in lieu of Article 10 or Section
11.2(c) of the Equity Definitions.

	 	 	Extraordinary Events applicable to the
Transaction:

	 	 	 

	New Shares:

	 	Section 12.1(i) of the Equity Definitions is hereby
amended (a) by deleting the text in clause (i) thereof in
its

6

 

	 	 	 

	 

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

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

	 	Modified Calculation Agent Adjustment
	 
	 	 
	          Share-for-Other:

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

	 	Cancellation and Payment (Calculation Agent
Determination); provided that Dealer may elect, in its
commercially reasonable judgment, Component Adjustment
(Calculation Agent Determination).
	 
	 	 
	Consequence of Tender Offers:
	 	 
	 
	 	 
	     Tender Offer:

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

	 	Modified Calculation Agent Adjustment
	 
	 	 
	          Share-for-Other:

	 	Modified Calculation Agent Adjustment
	 
	 	 
	          Share-for-Combined:

	 	Modified Calculation Agent Adjustment
	 
	 	 
	Announcement Event:

	 	If an Announcement Date occurs in respect of a Merger
Event or Tender Offer (such occurrence or any subsequent
announcement relating to the same subject matter, an
“Announcement Event”), then on the earliest of the
Expiration Date, Early Termination Date or other date of
cancellation (the “Announcement Event Adjustment Date”)
in respect of each Warrant, the Calculation Agent will
determine the economic effect on such Warrant of the
Announcement Event (regardless of

7

 

	 	 	 

	 

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

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

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

	 	Applicable; provided that (i) Section 12.9(a)(ii) of the
Equity Definitions is hereby amended by replacing the
parenthetical beginning after the word “regulation” in
the second line thereof with the words “(including, for
the avoidance of doubt and without limitation, (x) any
tax law

8

 

	 	 	 

	 

	 	or (y) adoption or promulgation of new
regulations authorized or mandated by existing statute)”
and (ii) Section 12.9(a)(ii)(X) of the Equity Definitions
is hereby amended by replacing the word “Shares” with the
phrase “Hedge Positions.”
	 
	 	 
	     Failure to Deliver:

	 	Not Applicable
	 
	 	 
	     Insolvency Filing:

	 	Applicable
	 
	 	 
	     Hedging Disruption:

	 	Applicable; provided that:
	 
	 	 
	 

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

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

	 
	 	 
	 

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

	 
	 	 
	     Increased Cost of Hedging:

	 	Applicable
	 
	 	 
	     Loss of Stock Borrow:

	 	Applicable
	 
	 	 
	          Maximum Stock Loan Rate:

	 	200 basis points
	 
	 	 
	     Increased Cost of Stock Borrow:

	 	Applicable
	 
	 	 
	          Initial Stock Loan Rate:

	 	25 basis points
	 
	 	 
	     Hedging Party:

	 	For all applicable Additional Disruption Events, Dealer.

	 	 	 

	Determining Party:

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

	 	Applicable
	 
	 	 
	Agreements and Acknowledgments
Regarding Hedging Activities:

	 	Applicable
	 
	 	 
	Additional Acknowledgments:

	 	Applicable
	 
	 	 
	4. Calculation Agent.

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

9

 

	 	 	 

	 

	 	manipulation of financial data) displaying in
reasonable detail the basis for such calculation,
it being understood that the Calculation Agent
shall not be obligated to disclose any
proprietary models used by it for such
calculation.

	5.	 	Account Details.

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

ABA #: 121000248

Beneficiary: First Clearing, LLC

Account #: 4122023377

FFC Account Name: Integra LifeSciences Holdings Corp

FFC Account Number: 8595-0713

Account for delivery of Shares from Company:

American Stock Transfer & Trust Co LLC

Transfer Agent # 2941

Account # 10249
	 
	 	(b)	 	Account for payments to Dealer:
	 
	 	 	 	Chase Bank, New York

BIC: CHASUS33

ABA # 021000021

A/C Name: RBS Securities Inc.

BIC: GRNWUS33

A/C: 066615674

Account for delivery of Shares to Dealer:

To be provided by Dealer.

	6.	 	Offices.

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

c/o RBS Securities Inc.

600 Washington Blvd.

Stamford, CT 06901

	7.	 	Notices.

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

311 Enterprise Drive

Plainsboro, NJ 08536

Attention: Treasurer

Telephone No.: (609) 275-0500

Facsimile No.: (609) 750-4264

10

 

	 	(b)	 	Address for notices or communications to Dealer:
	 
	 	 	 	The Royal Bank of Scotland plc

c/o RBS Securities Inc.

600 Washington Blvd.

Stamford, CT 06901

Attn: Legal Department (Tam Beattie)

Telephone: (203) 897-6086

Facsimile: (203) 873-4571

Email: Tamerlaine.Beattie@rbs.com
	 
	 	 	 	With a copy to:
	 
	 	 	 	The Royal Bank of Scotland plc

c/o RBS Global Banking & Markets

280 Bishopsgate

London EC2M 4RB

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

	 	(a)	 	Company has all necessary corporate power and authority to execute, deliver and
perform its obligations in respect of the Transaction; such execution, delivery and
performance have been duly authorized by all necessary corporate action on Company’s
part; and this Confirmation has been duly and validly executed and delivered by Company
and constitutes its valid and binding obligation, enforceable against Company in
accordance with its terms, subject to applicable bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium and similar laws affecting creditors’ rights and
remedies generally, and subject, as to enforceability, to general principles of equity,
including principles of commercial reasonableness, good faith and fair dealing
(regardless of whether enforcement is sought in a proceeding at law or in equity) and
except that rights to indemnification and contribution hereunder may be limited by
federal or state securities laws or public policy relating thereto.
	 
	 	(b)	 	Neither the execution and delivery of this Confirmation nor the incurrence or
performance of obligations of Company hereunder will conflict with or result in a
breach of the certificate of incorporation or by-laws (or any equivalent documents) of
Company, or any applicable law or regulation, or any order, writ, injunction or decree
of any court or governmental authority or agency, or any agreement or instrument to
which Company or any of its subsidiaries is a party or by which Company or any of its
subsidiaries is bound or to which Company or any of its subsidiaries is subject, or
constitute a default under, or result in the creation of any lien under, any such
agreement or instrument.
	 
	 	(c)	 	No consent, approval, authorization, or order of, or filing with, any
governmental agency or body or any court is required in connection with the execution,
delivery or performance by Company of this Confirmation, except such as have been
obtained or made and such as may be required under the Securities Act of 1933, as
amended (the “Securities Act”) or state securities laws.
	 
	 	(d)	 	A number of Shares equal to the Maximum Number of Shares (as defined below)
(the “Warrant Shares”) have been reserved for issuance by all required corporate action
of Company. The

11

 

	 	 	 	Warrant Shares have been duly authorized and, when delivered against payment
therefor (which may include Net Share Settlement in lieu of cash) and otherwise as
contemplated by the terms of the Warrants following the exercise of the Warrants in
accordance with the terms and conditions of the Warrants, will be validly issued,
fully-paid and non-assessable, and the issuance of the Warrant Shares will not be
subject to any preemptive or similar rights.
	 
	 	(e)	 	Company is not and will not be required to register as an “investment company”
as such term is defined in the Investment Company Act of 1940, as amended.
	 
	 	(f)	 	Company is an “eligible contract participant” (as such term is defined in
Section 1a(12) of the Commodity Exchange Act, as amended, other than a person that is
an eligible contract participant under Section 1a(12)(C) of the Commodity Exchange
Act).
	 
	 	(g)	 	Each of Company and its officers and directors is not, on the date hereof, in
possession of any material non-public information with respect to Company or the
Shares.

	9.	 	Other Provisions.

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

12

 

	 	 	 	in lieu of indemnifying such Indemnified Person thereunder, shall contribute to the
amount paid or payable by such Indemnified Person as a result of such losses,
claims, damages or liabilities. The remedies provided for in this paragraph are not
exclusive and shall not limit any rights or remedies that may otherwise be available
to any Indemnified Person at law or in equity. The indemnity and contribution
agreements contained in this paragraph shall remain operative and in full force and
effect regardless of the termination of the Transaction.
	 
	 	(c)	 	Regulation M. Company is not on the Trade Date engaged in a
distribution, as such term is used in Regulation M under the Securities Exchange Act of
1934, as amended (the “Exchange Act”), of any securities of Company, other than a
distribution meeting the requirements of the exception set forth in Rules 101(b)(10)
and 102(b)(7) of Regulation M. Company shall not, until the second Scheduled Trading
Day immediately following the Effective Date, engage in any such distribution.
	 
	 	(d)	 	No Manipulation. Company is not entering into the Transaction to
create actual or apparent trading activity in the Shares (or any security convertible
into or exchangeable for the Shares) or to raise or depress or otherwise manipulate the
price of the Shares (or any security convertible into or exchangeable for the Shares)
or otherwise in violation of the Exchange Act.
	 
	 	(e)	 	Transfer or Assignment. Company may not transfer any of its rights or
obligations under the Transaction without the prior written consent of Dealer. Dealer
may, without Company’s consent, transfer or assign all or any part of its rights or
obligations under the Transaction to any third party. If at any time at which (A) the
Section 16 Percentage exceeds 7.5%, (B) the Warrant Equity Percentage exceeds 14.5%, or
(C) the Share Amount exceeds the Applicable Share Limit (if any applies) (any such
condition described in clauses (A), (B) or (C), an “Excess Ownership Position”), Dealer
is unable after using its commercially reasonable efforts to effect a transfer or
assignment of Warrants to a third party on pricing terms reasonably acceptable to
Dealer and within a time period reasonably acceptable to Dealer such that no Excess
Ownership Position exists, then Dealer may designate any Exchange Business Day as an
Early Termination Date with respect to a portion of the Transaction (the “Terminated
Portion”), such that following such partial termination no Excess Ownership Position
exists. In the event that Dealer so designates an Early Termination Date with respect
to a Terminated Portion, a payment shall be made pursuant to Section 6 of the Agreement
as if (1) an Early Termination Date had been designated in respect of a Transaction
having terms identical to the Transaction and a Number of Warrants equal to the number
of Warrants underlying the Terminated Portion, (2) Company were the sole Affected Party
with respect to such partial termination and (3) the Terminated Portion were the sole
Affected Transaction (and, for the avoidance of doubt, the provisions of Section 9(j)
shall apply to any amount that is payable by Company to Dealer pursuant to this
sentence as if Company was not the Affected Party). The “Section 16 Percentage” as of
any day is the fraction, expressed as a percentage, (A) the numerator of which is the
number of Shares that Dealer and each person subject to aggregation of Shares with
Dealer under Section 13 or Section 16 of the Exchange Act and rules promulgated
thereunder directly or indirectly beneficially own (as defined under Section 13 or
Section 16 of the Exchange Act and rules promulgated thereunder) and (B) the
denominator of which is the number of Shares outstanding. The “Warrant Equity
Percentage” as of any day is the fraction, expressed as a percentage, (A) the numerator
of which is the sum of (1) the product of the Number of Warrants and the Warrant
Entitlement and (2) the aggregate number of Shares underlying any other warrants
purchased by Dealer from Company, and (B) the denominator of which is the number of
Shares outstanding. The “Share Amount” as of any day is the number of Shares that
Dealer and any person whose ownership position would be aggregated with that of Dealer
(Dealer or any such person, a “Dealer Person”) under any law, rule, regulation,
regulatory order or organizational documents or contracts of Company that are, in each
case, applicable to ownership of Shares (“Applicable Restrictions”), owns, beneficially
owns, constructively owns, controls, holds the power to vote or otherwise meets a
relevant definition of ownership under any Applicable Restriction, as determined by
Dealer in its reasonable discretion. The “Applicable Share Limit” means a number of
Shares equal to (A) the minimum number of Shares that could give rise to reporting or
registration obligations (except for any filings of Schedule 13D or Schedule 13G under
the Exchange Act or any other filing obligations applicable as of the date

13

 

	 		 	hereof) or other requirements (including obtaining prior approval from any person or
entity) of a Dealer Person, or could result in an adverse effect on a Dealer Person,
under any Applicable Restriction, as determined by Dealer in its reasonable
discretion, minus (B) 1% of the number of Shares outstanding. Notwithstanding any
other provision in this Confirmation to the contrary requiring or allowing Dealer to
purchase, sell, receive or deliver any Shares or other securities, or make or
receive any payment in cash, to or from Company, Dealer may designate any of its
affiliates to purchase, sell, receive or deliver such Shares or other securities, or
make or receive such payment in cash, and otherwise to perform Dealer’s obligations
in respect of the Transaction and any such designee may assume such obligations.
Dealer shall be discharged of its obligations to Company to the extent of any such
performance.
	 
	 	(f)	 	Dividends. If at any time during the period from and including the
Effective Date, to and including the last Expiration Date, an ex-dividend date for a
cash dividend occurs with respect to the Shares (an “Ex-Dividend Date”), then the
Calculation Agent will adjust any of the Strike Price, Number of Warrants and/or Daily
Number of Warrants to preserve the fair value of the Warrants to Dealer after taking
into account such dividend.
	 
	 	(g)	 	Role of Agent. THE ROYAL BANK OF SCOTLAND PLC HAS ENTERED AS PRINCIPAL
TO THE TRANSACTION AND IS COMPANY’S COUNTERPARTY HERETO. THE ROYAL BANK OF SCOTLAND
PLC IS NOT REGISTERED AS A BROKER-DEALER UNDER THE SECURITIES AND EXCHANGE ACT OF 1934,
AS AMENDED. THE PARTIES ACKNOWLEDGE THAT RBS SECURITIES INC. HAS ACTED AS AGENT FOR
THE PARTIES IN CONNECTION WITH THE TRANSACTION. TO THE EXTENT RBS SECURITIES INC. HAS
ACTED AS AGENT IN CONNECTION WITH THE TRANSACTION, ITS OBLIGATIONS ARE STRICTLY LIMITED
TO THE DELIVERY OF ANY CASH AND SECURITIES THAT IT ACTUALLY RECEIVES FROM THE ROYAL
BANK OF SCOTLAND PLC OR COMPANY, AS THE CASE MAY BE, OR DELIVERS TO THE ROYAL BANK OF
SCOTLAND PLC OR COMPANY. RBS SECURITIES INC. HAS NO OBLIGATIONS HEREUNDER, BY GUARANTY,
ENDORSEMENT OR OTHERWISE, WITH RESPECT TO PERFORMANCE OF THE ROYAL BANK OF SCOTLAND
PLC’S OR COMPANY’S OBLIGATIONS HEREUNDER.
	 
	 	(h)	 	Additional Provisions.

	 	(i)	 	Amendments to the Equity Definitions:

	 	(A)	 	Section 11.2(a) of the Equity Definitions is
hereby amended by deleting the words “a diluting or concentrative” and
replacing them with the words “an”; and adding the phrase “or Warrants”
at the end of the sentence.
	 
	 	(B)	 	Section 11.2(c) of the Equity Definitions is
hereby amended by (x) replacing the words “a diluting or concentrative”
with “an”, (y) adding the phrase “or Warrants” after the words “the
relevant Shares” in the same sentence and (z) deleting the phrase
“(provided that no adjustments will be made to account solely for
changes in volatility, expected dividends, stock loan rate or liquidity
relative to the relevant Shares)” and replacing it with the phrase
“(and, for the avoidance of doubt, adjustments may be made to account
solely for changes in volatility, expected dividends, stock loan rate
or liquidity relative to the relevant Shares).”
	 
	 	(C)	 	Section 11.2(e)(vii) of the Equity Definitions
is hereby amended by deleting the words “a diluting or concentrative”
and replacing them with the word “a material”; and adding the phrase
“or Warrants” at the end of the sentence.
	 
	 	(D)	 	Section 12.6(a)(ii) of the Equity Definitions
is hereby amended by (1) deleting from the fourth line thereof the word
“or” after the word “official” and inserting a comma therefor, and (2)
deleting the semi-colon at the end of subsection (B)

14

 

	 	 	 	thereof and inserting the following words therefor “or (C) at
Dealer’s option, the occurrence of any of the events specified in
Section 5(a)(vii) (1) through (9) of the ISDA Master Agreement with
respect to that Issuer.”
	 
	 	(E)	 	Section 12.9(b)(iv) of the Equity Definitions
is hereby amended by:

	 	(x)	 	deleting (1) subsection (A) in
its entirety, (2) the phrase “or (B)” following subsection (A)
and (3) the phrase “in each case” in subsection (B); and
	 
	 	(y)	 	deleting the phrase “neither the
Non-Hedging Party nor the Lending Party lends Shares in the
amount of the Hedging Shares or” in the penultimate sentence.

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

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

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

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

	 	(A)	 	A “person” or “group” within the meaning of
Section 13(d) of the Exchange Act, other than Company, its subsidiaries
and its and their employee benefit plans, files a Schedule TO or any
schedule, form or report under the Exchange Act disclosing that such
person or group has become the “beneficial owner,” as defined in Rule
13d-3 under the Exchange Act, of the common equity of Company
representing more than 50% of the voting power of such common equity.
	 
	 	(B)	 	The consummation of (I) any recapitalization,
reclassification or change of the Shares (other than changes resulting
from a subdivision or combination) as a result of which the Shares
would be converted into, or exchanged for, stock, other securities,
other property or assets, (II) any share exchange, consolidation or
merger of Company pursuant to which the Shares will be converted into
cash, securities or other property, other than a merger of Company
solely for the purpose of changing Company’s jurisdiction of
incorporation, that results in a reclassification, conversion or
exchange of then outstanding Shares solely into shares of common stock
of the surviving entity, or (III) any sale, lease or other transfer in
one transaction or a series of transactions of all or substantially all
of the consolidated assets of Company and its subsidiaries, taken as a
whole, to any person other than one of Company’s subsidiaries;
provided, however, that a transaction described in clause (II) pursuant
to which one or more holders of Company’s common equity entitled to
vote generally in elections of directors immediately prior to such
transaction have the entitlement to exercise, directly or indirectly,
50% or more of the total voting power of all classes of Company’s
common equity entitled to vote generally in elections of directors of
the continuing or surviving person immediately after giving effect to
such

15

 

	 	 	 	transaction shall not constitute an Additional Termination Event
pursuant to this clause (B).
	 
	 	(C)	 	Default by Company or any subsidiary of Company
in the payment when due, after the expiration of any applicable grace
period, of principal of, or premium, if any, or interest on, recourse
indebtedness for money borrowed in the aggregate principal amount then
outstanding of $25.0 million or more, or acceleration of Company’s or
any subsidiary of Company’s recourse indebtedness for money borrowed in
the aggregate principal amount of $25.0 million or more so that it
becomes due and payable before the date on which it would otherwise
have become due and payable, if such default is not cured or waived, or
such acceleration is not rescinded, as the case may be.
	 
	 	(D)	 	A final judgment for the payment of $25.0
million or more (excluding any amounts covered by insurance) rendered
against Company or any of its subsidiaries, which judgment is not
discharged or stayed within 60 days after (I) the date on which the
right to appeal thereof has expired if no such appeal has commenced, or
(II) the date on which all rights to appeal have been extinguished.
	 
	 	(E)	 	Dealer, despite using commercially reasonable
efforts, is unable or reasonably determines that it is impractical or
illegal, to hedge its exposure with respect to the Transaction in the
public market without registration under the Securities Act or as a
result of any legal, regulatory or self-regulatory requirements or
related policies and procedures (whether or not such requirements,
policies or procedures are imposed by law or have been voluntarily
adopted by Dealer).

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

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

	 	(j)	 	Alternative Calculations and Payment on Early Termination and on Certain
Extraordinary Events. If, in respect of the Transaction, an amount is payable by
Company to Dealer, (A) pursuant to Section 12.7 or Section 12.9 of the Equity
Definitions or (B) pursuant to Section 6(d)(ii) of the Agreement (any such amount, a
“Payment Obligation”), Company shall have the right, in its sole discretion, to satisfy
the Payment Obligation by the Share Termination Alternative (as defined below) (except
that Company shall not have the right to make such an election in the event of (I) a
Nationalization, Insolvency, Merger Event or Tender Offer in which the consideration to
be paid to holders of Shares consists solely of cash, (II) a Merger Event or Tender
Offer that is within Company’s control, or (III) an Event of Default in which Company
is the Defaulting Party or a Termination Event in which Company is the Affected Party,
other than an Event of Default of the type described in Section 5(a)(iii), (v), (vi),
(vii) or (viii) of the Agreement or a Termination Event of the type described in
Section 5(b) of the Agreement, in each case that resulted from an event or events
outside Company’s control) and shall give irrevocable telephonic

16

 

	 	 	 	notice to Dealer, confirmed in writing within one Scheduled Trading Day, no later
than 5:00 p.m. (New York City time) on the Merger Date, Tender Offer Date,
Announcement Date (in the case of a Nationalization, Insolvency or Delisting), Early
Termination Date or date of cancellation, as applicable; provided that if Company
does not validly elect to satisfy the Payment Obligation by the Share Termination
Alternative, Dealer shall have the right to require Company to satisfy its Payment
Obligation by the Share Termination Alternative.

	 	 	 

	Share Termination
Alternative:

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

Property:

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

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

	 	In the case of a Termination Event,
Event of Default Additional Disruption Event or Delisting, one Share or, in the
case of Nationalization, Insolvency, Tender Offer or Merger Event, a unit
consisting of the number or amount of each type of property received by a
holder of one Share (without consideration of any requirement to pay cash or
other

17

 

	 	 	 

	 

	 	consideration in lieu of fractional amounts of any
securities) in such Nationalization, Insolvency,
Tender Offer or Merger Event. If such
Nationalization, Insolvency, Tender Offer or Merger
Event involves a choice of consideration to be
received by holders, such holder shall be deemed to
have elected to receive the maximum possible amount of
cash.
	 
	 	 
	Failure to Deliver:

	 	Inapplicable
	 
	 	 
	Other applicable
provisions:

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

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

	 	(i)	 	If Company elects to settle the Transaction pursuant to this
clause (i) (a “Private Placement Settlement”), then delivery of Restricted
Shares by Company shall be effected in accordance with customary private
placement procedures for placements of equity securities of substantially
similar size reasonably acceptable to Dealer; provided that Company may not
elect a Private Placement Settlement if, on the date of its election, it has
taken, or caused to be taken, any action that would make unavailable either the
exemption pursuant to Section 4(2) of the Securities Act for the sale by
Company to Dealer (or any affiliate designated by Dealer) of the Restricted
Shares or the exemption pursuant to Section 4(1) or Section 4(3) of the
Securities Act for resales of the Restricted Shares by Dealer (or any such
affiliate of Dealer). The Private Placement Settlement of such Restricted
Shares shall include customary representations, covenants, blue sky and other
governmental filings and/or registrations, indemnities to Dealer, due diligence
rights (for Dealer or any designated buyer of the Restricted Shares by Dealer),
opinions and certificates, and such other documentation as is customary for
private placements of equity securities of substantially similar size, all
reasonably acceptable to Dealer. In the case of a Private Placement
Settlement, Dealer shall determine the appropriate discount to the Share
Termination Unit Price (in the case of settlement of Share Termination Delivery
Units pursuant to Section 9(j) above) or any Settlement Price (in the case of
settlement of Shares pursuant to Section 2 above) applicable to such Restricted
Shares in a commercially reasonable manner and appropriately adjust the number
of such

18

 

	 	 	 	Restricted Shares to be delivered to Dealer hereunder. Notwithstanding the
Agreement or this Confirmation, the date of delivery of such Restricted
Shares shall be the Exchange Business Day following notice by Dealer to
Company, of such applicable discount and the number of Restricted Shares to
be delivered pursuant to this clause (i). For the avoidance of doubt,
delivery of Restricted Shares shall be due as set forth in the previous
sentence and not be due on the Share Termination Payment Date (in the case
of settlement of Share Termination Delivery Units pursuant to Section 9(j)
above) or on the Settlement Date for such Restricted Shares (in the case of
settlement in Shares pursuant to Section 2 above).
	 
	 	(ii)	 	If Company elects to settle the Transaction pursuant to this
clause (ii) (a “Registration Settlement”), then Company shall promptly (but in
any event no later than the beginning of the Resale Period) file and use its
reasonable best efforts to make effective under the Securities Act a
registration statement or supplement or amend an outstanding registration
statement in form and substance reasonably satisfactory to Dealer, to cover the
resale of such Restricted Shares in accordance with customary resale
registration procedures, including covenants, conditions, representations,
underwriting discounts (if applicable), commissions (if applicable),
indemnities due diligence rights, opinions and certificates, and such other
documentation as is customary in underwriting agreements for equity resales of
substantially similar size, all reasonably acceptable to Dealer. If Dealer, in
its reasonable discretion, is not satisfied with such procedures and
documentation Private Placement Settlement shall apply. If Dealer is satisfied
with such procedures and documentation, it shall sell the Restricted Shares
pursuant to such registration statement during a period (the “Resale Period”)
commencing on the Exchange Business Day following delivery of such Restricted
Shares (which, for the avoidance of doubt, shall be (x) the Share Termination
Payment Date in case of settlement in Share Termination Delivery Units pursuant
to Section 9(j) above or (y) the Settlement Date in respect of the final
Expiration Date for all Daily Number of Warrants) and ending on the earliest of
(i) the Exchange Business Day on which Dealer completes the sale of all
Restricted Shares or, in the case of settlement of Share Termination Delivery
Units, a sufficient number of Restricted Shares so that the realized net
proceeds of such sales equals or exceeds the Payment Obligation (as defined
above), (ii) the date upon which all Restricted Shares have been sold or
transferred pursuant to Rule 144 (or similar provisions then in force) or Rule
145(d)(2) (or any similar provision then in force) under the Securities Act and
(iii) the date upon which all Restricted Shares may be sold or transferred by a
non-affiliate pursuant to Rule 144 (or any similar provision then in force) or
Rule 145(d)(2) (or any similar provision then in force) under the Securities
Act. If the Payment Obligation exceeds the realized net proceeds from such
resale, Company shall transfer to Dealer by the open of the regular trading
session on the Exchange on the Exchange Trading Day immediately following the
last day of the Resale Period the amount of such excess (the “Additional
Amount”) in cash or in a number of Shares (“Make-whole Shares”) in an amount
that, based on the Settlement Price on the last day of the Resale Period (as if
such day was the “Valuation Date” for purposes of computing such Settlement
Price), has a dollar value equal to the Additional Amount. The Resale Period
shall continue to enable the sale of the Make-whole Shares. If Company elects
to pay the Additional Amount in Shares, the requirements and provisions for
Registration Settlement shall apply. This provision shall be applied
successively until the Additional Amount is equal to zero. In no event shall
Company deliver a number of Restricted Shares greater than the Maximum Number
of Shares.
	 
	 	(iii)	 	Without limiting the generality of the foregoing, Company
agrees that any Restricted Shares delivered to Dealer, as purchaser of such
Restricted Shares, (A) may be transferred by and among Dealer and its
affiliates and Company shall effect such transfer without any further action by
Dealer and (B) after the period of 6 months from the Trade Date (or 1 year from
the Trade Date if, at such time, informational requirements of Rule 144(c)
under the Securities Act are not satisfied with respect to Company) has elapsed
after any Settlement Date or Share Termination Payment Date, as applicable, for
such

19

 

	 	 	 	Restricted Shares, Company shall promptly remove, or cause the transfer
agent for such Restricted Shares to remove, any legends referring to any
such restrictions or requirements from such Restricted Shares upon request
by Dealer (or such affiliate of Dealer) to Company or such transfer agent,
without any requirement for the delivery of any certificate, consent,
agreement, opinion of counsel, notice or any other document, any transfer
tax stamps or payment of any other amount or any other action by Dealer (or
such affiliate of Dealer).
	 
	 	(iv)	 	If the Private Placement Settlement or the Registration
Settlement shall not be effected as set forth in clauses (i) or (ii), as
applicable, then failure to effect such Private Placement Settlement or such
Registration Settlement shall constitute an Event of Default with respect to
which Company shall be the Defaulting Party.

	 	(l)	 	Limit on Beneficial Ownership. Notwithstanding any other provisions
hereof, Dealer may not exercise any Warrant hereunder or be entitled to take delivery
of any Shares deliverable hereunder, and Automatic Exercise shall not apply with
respect to any Warrant hereunder, to the extent (but only to the extent) that, after
such receipt of any Shares upon the exercise of such Warrant or otherwise hereunder and
after taking into account any Shares deliverable to Dealer under the letter agreement
dated June 9, 2011 between Dealer and Company regarding Base Warrants (the “Base
Warrant Confirmation”), (i) the Section 16 Percentage would exceed 7.5%, or (ii) the
Share Amount would exceed the Applicable Share Limit. Any purported delivery hereunder
shall be void and have no effect to the extent (but only to the extent) that, after
such delivery and after taking into account any Shares deliverable to Dealer under the
Base Warrant Confirmation, (i) the Section 16 Percentage would exceed 7.5%, or (ii) the
Share Amount would exceed the Applicable Share Limit. If any delivery owed to Dealer
hereunder is not made, in whole or in part, as a result of this provision, Company’s
obligation to make such delivery shall not be extinguished and Company shall make such
delivery as promptly as practicable after, but in no event later than one Business Day
after, Dealer gives notice to Company that, after such delivery, (i) the Section 16
Percentage would not exceed 7.5%, and (ii) the Share Amount would not exceed the
Applicable Share Limit.

	 	(m)	 	Share Deliveries. Company acknowledges and agrees that, to the extent
the holder of this Warrant is not then an affiliate and has not been an affiliate for
90 days (it being understood that Dealer will not be considered an affiliate under this
paragraph solely by reason of its receipt of Shares pursuant to the Transaction), and
otherwise satisfies all holding period and other requirements of Rule 144 of the
Securities Act applicable to it, any delivery of Shares or Share Termination Delivery
Property hereunder at any time after 6 months from the Trade Date (or 1 year from the
Trade Date if, at such time, informational requirements of Rule 144(c) are not
satisfied with respect to Company) shall be eligible for resale under Rule 144 of the
Securities Act and Company agrees to promptly remove, or cause the transfer agent for
such Shares or Share Termination Delivery Property, to remove, any legends referring to
any restrictions on resale under the Securities Act from the Shares or Share
Termination Delivery Property. Company further agrees that any delivery of Shares or
Share Termination Delivery Property prior to the date that is 6 months from the Trade
Date (or 1 year from the Trade Date if, at such time, informational requirements of
Rule 144(c) are not satisfied with respect to Company), may be transferred by and among
Dealer and its affiliates and Company shall effect such transfer without any further
action by Dealer. Notwithstanding anything to the contrary herein, Company agrees that
any delivery of Shares or Share Termination Delivery Property shall be effected by
book-entry transfer through the facilities of DTC, or any successor depositary, if at
the time of delivery, such class of Shares or class of Share Termination Delivery
Property is in book-entry form at DTC or such successor depositary. Notwithstanding
anything to the contrary herein, to the extent the provisions of Rule 144 of the
Securities Act or any successor rule are amended, or the applicable interpretation
thereof by the Securities and Exchange Commission or any court change after the Trade
Date, the agreements of Company herein shall be deemed modified to the extent
necessary, in the opinion of outside counsel of Company, to comply with Rule 144 of the
Securities Act, as in effect at the time of delivery of the relevant Shares or Share
Termination Delivery Property.

20

 

	 	(n)	 	Waiver of Jury Trial. Each party waives, to the fullest extent
permitted by applicable law, any right it may have to a trial by jury in respect of any
suit, action or proceeding relating to the Transaction. Each party (i) certifies that
no representative, agent or attorney of the other party has represented, expressly or
otherwise, that such other party would not, in the event of such a suit, action or
proceeding, seek to enforce the foregoing waiver and (ii) acknowledges that it and the
other party have been induced to enter into the Transaction, as applicable, by, among
other things, the mutual waivers and certifications provided herein.

	 	(o)	 	Tax Disclosure. Effective from the date of commencement of discussions
concerning the Transaction, Company and each of its employees, representatives, or
other agents may disclose to any and all persons, without limitation of any kind, the
tax treatment and tax structure of the Transaction and all materials of any kind
(including opinions or other tax analyses) that are provided to Company relating to
such tax treatment and tax structure.

	 	(p)	 	Maximum Share Delivery.

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

	 	(q)	 	Right to Extend. Dealer may postpone, in whole or in part, any
Expiration Date or any other date of valuation or delivery with respect to some or all
of the relevant Warrants (in which event the Calculation Agent shall make appropriate
adjustments to the Daily Number of Warrants with respect to one or more Expiration
Dates) if Dealer determines, in its commercially reasonable judgment based on the
advice of counsel, that such extension is reasonably necessary or advisable to preserve
Dealer’s hedging or hedge unwind activity hereunder in light of existing liquidity
conditions or to enable Dealer to effect purchases of Shares in connection with its
hedging, hedge unwind or settlement activity hereunder in a manner that would, if
Dealer were Issuer or an affiliated purchaser of Issuer, be in compliance with
applicable legal, regulatory or self-regulatory requirements, or with related policies
and procedures applicable to Dealer.
	 
	 	(r)	 	Status of Claims in Bankruptcy. Dealer acknowledges and agrees that
this Confirmation is not intended to convey to Dealer rights against Company with
respect to the Transaction that are senior to the claims of common stockholders of
Company in any United States bankruptcy

21

 

	 	 	 	proceedings of Company; provided that nothing herein shall limit or shall be deemed
to limit Dealer’s right to pursue remedies in the event of a breach by Company of
its obligations and agreements with respect to the Transaction; provided, further,
that nothing herein shall limit or shall be deemed to limit Dealer’s rights in
respect of any transactions other than the Transaction.

	 	(s)	 	Securities Contract; Swap Agreement. The parties hereto intend for (i)
the Transaction to be a “securities contract” and a “swap agreement” as defined in the
Bankruptcy Code (Title 11 of the United States Code) (the “Bankruptcy Code”), and the
parties hereto to be entitled to the protections afforded by, among other Sections,
Sections 362(b)(6), 362(b)(17), 546(e), 546(g), 555 and 560 of the Bankruptcy Code,
(ii) a party’s right to liquidate the Transaction and to exercise any other remedies
upon the occurrence of any Event of Default under the Agreement with respect to the
other party to constitute a “contractual right” as described in the Bankruptcy Code,
and (iii) each payment and delivery of cash, securities or other property hereunder to
constitute a “margin payment” or “settlement payment” and a “transfer” as defined in
the Bankruptcy Code.
	 
	 	(t)	 	Wall Street Transparency and Accountability Act. In connection with
Section 739 of the Wall Street Transparency and Accountability Act of 2010 (“WSTAA”),
the parties hereby agree that neither the enactment of WSTAA or any regulation under
the WSTAA, nor any requirement under WSTAA or an amendment made by WSTAA, shall limit
or otherwise impair either party’s otherwise applicable rights to terminate,
renegotiate, modify, amend or supplement this Confirmation or the Agreement, as
applicable, arising from a termination event, force majeure, illegality, increased
costs, regulatory change or similar event under this Confirmation, the Equity
Definitions incorporated herein, or the Agreement (including, but not limited to,
rights arising from Change in Law, Hedging Disruption, Increased Cost of Hedging, an
Excess Ownership Position, or Illegality (as defined in the Agreement)).
	 
	 	(u)	 	Early Unwind. In the event the sale of the “Option Securities” (as
defined in the Purchase Agreement) is not consummated with the Representatives for any
reason, or Company fails to deliver to Dealer opinions of counsel as required pursuant
to Section 9(a), in each case by 5:00 p.m. (New York City time) on the Premium Payment
Date, or such later date as agreed upon by the parties (the Premium Payment Date or
such later date the “Early Unwind Date”), the Transaction shall automatically terminate
(the “Early Unwind”), on the Early Unwind Date and (i) the Transaction and all of the
respective rights and obligations of Dealer and Company under the Transaction shall be
cancelled and terminated and (ii) each party shall be released and discharged by the
other party from and agrees not to make any claim against the other party with respect
to any obligations or liabilities of the other party arising out of and to be performed
in connection with the Transaction either prior to or after the Early Unwind Date;
provided that, other than in cases involving a breach of the Purchase Agreement by
Dealer, Company shall purchase from Dealer on the Early Unwind Date all Shares
purchased by Dealer or one or more of its affiliates in connection with the Transaction
at the then prevailing market price. Each of Dealer and Company represents and
acknowledges to the other that, subject to the proviso included in this Section 9(u),
upon an Early Unwind, all obligations with respect to the Transaction shall be deemed
fully and finally discharged.
	 
	 	(v)	 	Payment by Dealer. In the event that (i) an Early Termination Date
occurs or is designated with respect to the Transaction as a result of a Termination
Event or an Event of Default (other than an Event of Default arising under Section
5(a)(ii) or 5(a)(iv) of the Agreement) and, as a result, Dealer owes to Company an
amount calculated under Section 6(e) of the Agreement, or (ii) Dealer owes to Company,
pursuant to Section 12.7 or Section 12.9 of the Equity Definitions, an amount
calculated under Section 12.8 of the Equity Definitions, such amount shall be deemed to
be zero.

[Remainder of Page Intentionally Blank]

22

 

     Please confirm that the foregoing correctly sets forth the terms of our agreement by executing
this Confirmation and returning it to The Royal Bank of Scotland plc, c/o RBS Securities Inc., 600
Washington Blvd.,

Stamford, CT 06901, Attn: Legal Department (Tam Beattie), or by fax to: (203) 873-4571, with copy
to The Royal

Bank of Scotland plc, c/o RBS Global Banking & Markets, 280 Bishopsgate, London EC2M 4RB, Attn:
Swap

Administration, or by fax to: +44 (0) 20 7085 5050.

Very truly yours,

	 	 	 	 	 	 	 

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

	 	By:	 	/s/ Eric Waller	 	 
	 

	 	
Name:
	 	 
Eric Waller
	 	 
	 

	 	Title:	 	Managing Director	 	 

Accepted and confirmed

as of the Trade Date:

Integra LifeSciences Holdings Corporation

	 	 	 	 	 

	By:
	 	/s/ Nora Brennan	 	 
	 

	 	 

	 	 

Authorized Signatory

Name: Nora Brennan

[RBS Additional Warrant Confirmation]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00190-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00190-of-00352.parquet"}]]